BILL ANALYSIS                                                                                                                                                                                                    



          Subject matter was not heard in Assembly policy committee this  
          legislative
          Session, should be noted in the last paragraph of the background  
          section of the 
          CSA analysis.  Language will vary depending on the circumstance.
           AB 141
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 141 (Knox)
          As Amended April 4, 2000
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(June 2, 1999)  |SENATE: |38-0 |(May 8, 2000)  |
           ----------------------------------------------------------------- 
                                        (vote not relevant)

          Original Committee Reference:   HEALTH  

           SUMMARY  :  Extends for an additional half-year the existing State  
          Teachers' Retirement System (CalSTRS) half-year earnings  
          limitation exemption for retired school administrators who  
          returned to service to fill a vacancy.

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Provide that retired administrators are permitted to serve for  
            a second half-year and continue to be exempted from the  
            CalSTRS earnings limitation.

          2)Specify that the provision authorizing the additional  
            half-year exemption will be operative from July 1, 1999  
            through December 31, 2000.

          3)Declare that this is an urgency statute to take effect  
            immediately.

           EXISTING LAW  :

          1)Allows retired members of CalSTRS to earn up to $19,500 in  
            1999-2000 for public school employment.  The earnings  
            limitation is adjusted annually to reflect changes in the  
            Consumer Price Index.  Any creditable earnings in excess of  
            this amount result in a dollar-for-dollar reduction in the  
            retirement allowance.









          Subject matter was not heard in Assembly policy committee this  
          legislative
          Session, should be noted in the last paragraph of the background  
          section of the 
          CSA analysis.  Language will vary depending on the circumstance.
           AB 141
                                                                  Page  2

          2)Provides for one half-year exemption from this earnings limit  
            if retired administrators return to service during the process  
            of permanently filling a vacant administrative position.  This  
            provision sunsets July 1, 2003.

           AS PASSED BY THE ASSEMBLY  , this bill required the Board of  
          Pharmacy to conduct a study of the incidence of medication  
          errors in pharmacies and to issue a report of its findings from  
          the study to the Legislature by December 1, 2002.

           FISCAL EFFECT  :  According to CalSTRS, this bill would have no  
          actuarial impact on the system.

           COMMENTS  :  According to the Association of California School  
          Administrators, "Under current law retired CalSTRS members are  
          limited on the amount of additional compensation they may earn  
          each year in addition to their retirement allowance.  A school  
          district may request a six month emergency waiver from this  
          provision if CalSTRS determines that the district has been  
          unsuccessful in permanently filling an administrator position  
          despite several months of recruitment, and the vacancy exists  
          beyond the control of the district.

          "With a shrinking pool of qualified candidates and an increasing  
          number of retirements, school districts are seeking emergency  
          waivers for principals, interim superintendents and other  
          positions requiring specialized skills.  Despite recruitment  
          efforts in state and out of state, the pool of top principal and  
          superintendent candidates is shrinking.

          "AB 141 would amend current law to allow a one-time emergency  
          waiver extension for filling an administrator position, which  
          would sunset on January 1, 2001, if the school district  
          continues to meet the emergency criteria as outlined in current  
          law.  This extension would allow a school or district to avoid a  
          revolving door of top administrators until a position is  
          permanently filled."

          This bill was substantially amended in the Senate.  While the  
          exact subject matter of this bill has not been heard in an  








          Subject matter was not heard in Assembly policy committee this  
          legislative
          Session, should be noted in the last paragraph of the background  
          section of the 
          CSA analysis.  Language will vary depending on the circumstance.
           AB 141
                                                                  Page  3

          Assembly policy committee this legislative session, similar  
          bills dealing with the CalSTRS earnings limitation have been  
          heard in policy committee this year and supported by committee  
          members.


           Analysis prepared by  :  Karon Green / P.E.,R. & S.S. / (916)  
          319-2957


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