BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                          AB816  (Correa)
          
          Hearing Date:8/7/2000           Amended:8/7/2000
                                                                       
                    & as proposed to be amended                  
          Consultant: Maureen Brooks          Policy Vote:P. E. & R.   
          5-0                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY:    AB 816 makes numerous changes to the  
          Teachers' Retirement Law including 1) clarifies the  
          full-time standard for adult education for community  
          college instructors, 2) conforms existing law on inactive  
          status of teachers to year-around schools, 3)  requires  
          charter schools to inform applicants of their retirement  
          options,  4) permits an option beneficiary to designate a  
          death beneficiary to receive any accrued allowance, and  
          several code clarifications.

                              Fiscal Impact (in thousands)
           
          Major Provisions            2000-01             2001-02              
           2002-03            Fund  
          
          Charter school notification   --------minor, reimbursable  
          mandate----      General

          Beneficiary notification       $75              STRF
          
          STAFF COMMENTS:  
          
          The State Teachers' Retirement System (STRS) will incur  
          one-time administrative costs of approximately $75,000 to  
          notify existing option beneficiaries that they may  
          designate a death beneficiary.
          
          Existing law allows an employee who changes from a STRS  
          covered service to a PERS covered service or vise versa can  
          retain membership in the original retirement system.  Since  
          not all charter schools offer service under PERS, 
          AB 816 requires charter schools to notify applicants which  
          retirement services are available to them.

          Death benefits are paid to option beneficiaries at the end  










          of each month for the prior month.   However, if the  
          beneficiary dies during the month, an accrued allowance  
          exists and is currently paid to probate.  AB 816 allows the  
          option beneficiary to designate a beneficiary to receive  
          that accrued, partial month benefit. 

          Staff notes that the author will present technical  
          amendments to avoid chaptering out AB 1509 (Machado), and  
          amendments to eliminate the mandate on charter schools.

          AB 816 is the CalSTRS annual technical housekeeping bill.