BILL NUMBER: AB 1733	AMENDED
	BILL TEXT

	AMENDED IN SENATE   AUGUST 25, 2000
	AMENDED IN ASSEMBLY   MAY 26, 2000
	AMENDED IN ASSEMBLY   MARCH 30, 2000

INTRODUCED BY   Assembly Member Wildman
   (Principal coauthor:  Assembly Member Shelley)
   (Coauthors:  Assembly Members Bock, Keeley, Knox, Leach, Lempert,
Strom-Martin, Washington, Wayne, and Zettel)
   (Coauthors:  Senators Alpert, Peace, Perata, and Solis)

                        JANUARY 6, 2000

   An act to amend  , repeal, and add  Section 24214 of the
Education Code, relating to the State Teachers' Retirement System.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1733, as amended, Wildman.  State Teachers' Retirement System:
postretirement earnings.
   Under the State Teachers' Retirement Law, the service retirement
allowance of a retired member is generally required to be reduced if
the member's postretirement compensation from specified activities
exceeds a certain dollar amount.
   This bill would  until January 1, 2008,  eliminate the
postretirement earnings limitation for retired members who return to
work more than  1   one  year after
retirement; increase that limitation, as specified, for other retired
members; and make related findings and declarations.   On
January 1, 2008, existing law would be restored, except that the
amount of allowable postretirement compensation would be increased.

   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature find and declares:
   (a) As a result of the enactment of the Class-Size Reduction
Program, over 22,000 emergency credentialed teachers are currently
teaching tens of thousands of students across the state.  Because
many of these teachers are minimally qualified and inexperienced, the
quality of instruction for these students has been adversely
affected.
   (b) The average teaching experience of retired teachers in this
state is 27 years.
   (c) Under the State Teachers' Retirement Law, postretirement
earnings of retired teachers are limited, thereby creating a
disincentive for retired teachers to reenter the teaching profession.

   (d) Teachers who retired on or before July 1, 1998, who choose to
reenter the teaching profession under the Class-Size Reduction
Program, and who satisfy other conditions are exempt from those
postretirement earnings limitations.  Since the enactment of this
exemption, over 1,600 retired teachers throughout the state have
returned to teaching, providing approximately 32,000 students with
the benefits of experienced, highly qualified teachers.
   (e) The pool of retired teachers represents a valuable resource.
All California students would benefit if more retired teachers chose
to return to teaching.
  SEC. 2.  Section 24214 of the Education Code is amended to read:
   24214.  (a) A member retired for service under this part may
perform the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
as an employee of an employer, as an employee of a third party, or
as an independent contractor within the California public school
system, but the member shall not make contributions to the retirement
fund or accrue service credit based on compensation earned from that
service.
   (b) The rate of pay for service performed by a member retired for
service under this part as an employee of the employer shall not be
less than the minimum, nor exceed that paid by the employer to other
employees performing comparable duties.
   (c) A member retired for service under this part shall not be
required to reinstate for performing the activities identified in
paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision
(b), of Section 22119.5, as an employee of an employer, as an
employee of a third party, or as an independent contractor within the
California public school system.
   (d) A member retired for service under this part may earn
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in any one school year up to the limitation specified in
subdivision (f) as an employee of an employer, as an employee of a
third party, or an independent contractor, within the California
public school system, without a reduction in his or her retirement
allowance.
   (e) (1) The postretirement compensation limitation provisions set
forth in this section shall not be applicable to compensation earned
by a member retired for service under this part who has first
returned to work more than one year after the date of retirement.
   (2) The postretirement compensation limitation provisions set
forth in this section shall not be applicable to compensation earned
for the performance of the activities described in subdivision (a)
for which the employer is not eligible to receive state apportionment
or to compensation that is not creditable pursuant to Section
22119.2.
   (f) The limitation that shall apply to the compensation for
performance of the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
by a member retired for service under this part either as an
employee of an employer, an employee of a third party, or as an
independent  contractor, shall be thirty-six thousand dollars
($36,000),   contractor, shall be twenty-two thousand
dollars ($22,000)  in any one school year, adjusted annually by
the board each July 1 by the annual amount of increase in the All
Urban California Consumer Price Index using December 1999 as the
base.
   (g) If a member retired for service under this part earns
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in excess of the limitation specified in subdivision (f), as
an employee of an employer, as an employee of a third party, or as
an independent contractor, within the California public school
system, and if that compensation is not exempt from that limitation
under subdivision (e) or any other provisions of law, the member's
retirement allowance shall be reduced by the amount of the excess
compensation.  The amount of the reduction may be equal to the
monthly allowance payable but shall not exceed the amount of the
annual allowance payable under this part for the fiscal year in which
the excess compensation was earned.
   (h) The amendments to this section enacted during the 1995-96
Regular Session shall be deemed to have become operative on July 1,
1996.  
   (i) This section shall be repealed on January 1, 2008, unless
later enacted legislation extends or deletes that date.   
  SEC. 3.  Section 24214 is added to the Education Code, to read:
   24214.  (a) A member retired for service under this part may
perform the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
as an employee of an employer, as an employee of a third party, or
as an independent contractor within the California public school
system, but the member shall not make contributions to the retirement
fund or accrue service credit based on compensation earned from that
service.
   (b) The rate of pay for service performed by a member retired for
service under this part as an employee of the employer shall not be
less than the minimum, nor exceed that paid by the employer to other
employees performing comparable duties.
   (c) A member retired for service under this part shall not be
required to reinstate for performing the activities identified in
paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision
(b), of Section 22119.5, as an employee of an employer, as an
employee of a third party, or as an independent contractor within the
California public school system.
   (d) A member retired for service under this part may earn
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in any one school year up to the limitation specified in
subdivision (f) as an employee of an employer, as an employee of a
third party, or an independent contractor, within the California
public school system, without a reduction in his or her retirement
allowance.
   (e) The postretirement compensation limitation provisions set
forth in this section shall not be applicable to compensation earned
for the performance of the activities described in subdivision (a)
for which the employer is not eligible to receive state apportionment
or to compensation that is not creditable pursuant to Section
22119.2.
   (f) The limitation that shall apply to the compensation for
performance of the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
by a member retired for service under this part either as an
employee of an employer, an employee of a third party, or as an
independent contractor, shall be twenty-two thousand dollars
($22,000), in any one school year, adjusted annually by the board
each July 1 by the annual amount of increase in the All Urban
California Consumer Price Index using December 1989 as the base.
   (g) If a member retired for service under this part earns
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in excess of the limitation specified in subdivision (f), as
an employee of an employer, as an employee of a third party, or as
an independent contractor, within the California public school
system, the member's retirement allowance shall be reduced by the
amount of the excess compensation.  The amount of the reduction may
be equal to the monthly allowance payable but shall not exceed the
amount of the annual allowance payable under this part for the fiscal
year in which the excess compensation was earned.
   (h) The language of this section derived from the amendments to
the section of this number added by Chapter 394 of the Statutes of
1995, enacted during the 1995-96 Regular Session, shall be deemed to
have become operative on July 1, 1996.
   (i)  This section shall become operative on January 1, 2008.