BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 114
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                      SB 114 (Yee) - As Amended:  June 20, 2012 

          Policy Committee:                             PERSS Vote:6-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill requires community college districts (CCDs) to 
          electronically submit collective bargaining or employment 
          agreements for community college and adult education instructors 
          to the California State Teachers' Retirement System (CalSTRS).  
          The bill also requires these agreements to reflect the full time 
          equivalent for each class of affected employees and be submitted 
          annually beginning July 1, 2013.

           FISCAL EFFECT  

          Minor and absorbable costs for CalSTRS.

           COMMENTS  

           1)Support.   CalSTRS supports SB 114 because it will provide 
            additional information to ensure community colleges are 
            reporting accurate service credit for part-time and adult 
            education instructors.  CalSTRS states SB 114 will allow them 
            to check the information against the data submitted by 
            employers to CalSTRS.  CalSTRS is working with the 
            Chancellor's Office to reach an agreement whereby CalSTRS may 
            utilize the data they receive from community college employers 
            as a means to verify the FTEs reported to CalSTRS.  According 
            to CalSTRS, this information, in conjunction with the 
            collective bargaining or employment agreements will provide 
            CalSTRS with a better understanding of how to help employers 
            report accurate FTEs so that they do not simply report the 
            statutory minimum of 525, as is the current practice for some 
            community colleges.  Also, the additional information may help 
            to ensure that part-time instructors are accruing the correct 
            amount of service credit.








                                                                  SB 114
                                                                  Page  2


           2)Background  .  Existing law allows CCDs to bargain the rates of 
            pay for faculty members.  Full-time and part-time faculty 
            members are typically compensated at different rates. CCDs are 
            responsible for reporting certain faculty payroll information 
            to STRS.  CCD educators employed on a part-time basis may 
            elect to be covered by the CalSTRS Defined Benefit (DB) 
            Program.   Although the DB Program works well for full-time 
            employees, CalSTRS reports a number of issues have arisen over 
            the years about its application to part-time and adult 
            education community college staff.  The most significant issue 
            has been the difficulty in reporting compensation in order to 
            establish the appropriate levels of service credit.

           3)There is no registered opposition to this bill.  

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081