BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 232|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 232
Author: Hill (D) & Fletcher (R), et al
Amended: 4/16/09 in Assembly
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 7-0, 6/8/09
AYES: Correa, Ashburn, Benoit, Ducheny, Liu, Padilla,
Wiggins
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 79-0, 5/4/09 - See last page for vote
SUBJECT : Teachers retirement
SOURCE : California Teachers Retirement Board
DIGEST : This bill allows the California State Teachers
Retirement System to (1) prescribe the form of accepting
electronically signed applications and documents, and (2)
not mail a copy of benefit payment information when
payments are made by electronic funds transfer, unless
there is a change in the net amount paid.
ANALYSIS :
Existing California State Teachers' Retirement System
(STRS) law:
1.Requires that, when STRS makes a payment to a benefit
CONTINUED
AB 232
Page
2
recipient using direct deposit, a copy of the payment
information must be mailed to the recipients, unless the
recipient informs STRS that they do not want to receive
the payment information.
2.Does not currently allow electronic signatures on any of
STRS's forms.
This bill:
1.Authorizes to develop and implement a process for
accepting electronic signatures from members, while
maintaining the same level of security as required by
existing STRS law.
2.Allows STRS to discontinue mailing payment information
for direct deposit payments, as specified.
3.Requires STRS to make the payment information available
to members electronically.
4.Requires STRS to mail payment information when there is
an adjustment in the allowance or a change in any amount
deducted from the allowance.
5.Requires STRS to notify the member that they have the
right to request, in writing, that a paper copy of this
information be mailed monthly.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee
analysis, "Administrative savings of about $1 million to
CalSTRS, including: $300,000 savings from the provision
allowing acceptance of electronic signatures, and $700,000
from the provision allowing CalSTRS to no longer mail
copies of benefit payment information to individuals
electing direct deposit."
SUPPORT : (Verified 6/22/09)
California State Teachers' Retirement System Board (source)
California Teachers Association
AB 232
Page
3
ARGUMENTS IN SUPPORT : According to the sponsor,
"Currently, CalSTRS uses technology to provide efficient
member service, but its ability to do so is limited by
current law, Under existing law, CalSTRS may send payments
to retired members, disabled members or other beneficiaries
through direct deposit. However, CalSTRS still sends a
written copy of the payment information to the benefit
recipients, unless those recipients notify CalSTRS that
they do not want to receive the payment information. Also,
CalSTRS uses its Website to allow members to access their
account information. However, if members want to submit
signed forms, they have to print them off the website or
have CalSTRS mail them a copy and then they return the
signed forms by mail."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,
Hernandez, Hill, Huber, Jeffries, Jones, Knight,
Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,
Miller, Monning, Nava, Nestande, Niello, Nielsen, John A.
Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Yamada, Bass
NO VOTE RECORDED: Huffman
DLW:cm 6/30/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****