BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                          AB1736  (Ducheny)
          
          Hearing Date:8/7/2000           Amended:5/1/2000       
          Consultant: Maureen Brooks          Policy Vote:P. E. & R.   
          5-0                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          AB 1736 provides an exemption from the post-retirement  
          earnings limit for members of the State Teachers'  
          Retirement System (STRS) who retired before July 1, 2000,  
          and return to work providing  direct remedial instruction  in  

          grades 2-12.

                              Fiscal Impact (in thousands)
           
          Major Provisions            2000-01             2001-02              
           2002-03            Fund  
          
          Earnings limit      ----------unknown, but not significant--------   
          STRF
          
          STAFF COMMENTS:  
          
          According to STRS, the number of retired teachers who will  
          return to work in remedial instruction and earn  
          compensation in excess of the existing limit of $19,650  
          will be few.   There will, therefore, be little actuarial  
          impact on the system as a result of AB 1736.

          There are other exemptions to the post retirement earnings  
          limit under current law for teachers who retired before  
          July 1, 1998 and returned to teaching under the Class Size  
          Reduction Program, and those members who are employed on an  
          emergency basis to fill an administrative position, as  
          specified.

          AB 1733 (Wildman) also being heard in this committee today  
          eliminates the earnings limit for members who retire for at  
          least one year before returning to work, and increases the  
          overall limit to $36,000 for others.