BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1736|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1736
Author: Ducheny (D)
Amended: 5/1/00 in Assembly
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 5-0, 6/26/00
AYES: Ortiz, Haynes, Karnette, Lewis, Soto
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/7/00
AYES: Alpert, Bowen, Karnette, Kelley, McPherson, Perata,
Vasconcellos
ASSEMBLY FLOOR : 67-0, 5/4/00 - See last page for vote
SUBJECT : State teachers' retirement: postretirement
compensation
SOURCE : Author
DIGEST : This bill permanently eliminates the existing
earnings limitation for teachers who retire on or before
July 1, 2000, and return to the classroom to provide
remedial instruction in grades 2 to 12, inclusive.
ANALYSIS : Existing law allows retired members of the
State Teachers' Retirement System (STRS) to earn up to
$19,050 in 1999-2000 for public school employment. The
earnings limitation is adjusted annually to reflect changes
in the Consumer Price Index. Any creditable earning in
excess of this amount result in a dollar-for-dollar
reduction in the member's retirement allowance.
CONTINUED
AB 1736
Page
2
Existing law also provides an exemption from this limit if
the member retired prior to July 1, 1998, and is employed
by a school district to provide direct classroom
instruction in any statutorily authorized class size
reduction program or to temporarily fill a position vacated
by a teacher who transferred to a classroom in the same
district because of the Class Size Reduction program. This
exemption sunsets on July 1, 2002.
An additional exemptions exists for a STRS member who
retired from service and who is appointed as a trustee or
administrator or who is employed on an emergency basis to
fill an administrative position. This exemption sunsets on
July 1, 2003.
This bill permanently eliminates the existing earnings
limitation for teachers who retire on or before July 1,
2000, and return to the classroom to provide remedial
instruction in grades 2 to 12, inclusive.
STRS points out that the Education Code does not currently
define remedial instruction, although it is generally
understood to mean supplemental instruction intended to
bring students up to grade level achievements. In order to
maintain consistency in how this exemption is applied, STRS
is recommending that the bill be amended to specify what
constitutes remedial instruction.
There are three other bills this year that would impact the
STRS earnings limitation. The first is AB 1733 (Wildman),
which would eliminate the current earnings limitation
entirely. The second bill, AB 141 (Knox), would expand the
current earnings limitation exemption for members filling
administrative positions on an emergency basis. The third
bill, SB 1505 (Alarcon), would exempt STRS members who
retired prior to 2000 and who return to provide direct
classroom instruction to pupils in grades K-12 or to
provide support to new teachers, as specified, from the
current earnings limitation.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
AB 1736
Page
3
According to STRS, this bill would result in no material
costs to the system due to the anticipated small number of
retired teachers that would exceed the earnings limitation
under the provisions of this bill.
SUPPORT : (Verified 8/9/00)
California School Boards Association
California Teachers Association
Delta Kappa Gamma Sorority International
Fresno Unified School District
State Teachers' Retirement System
OPPOSITION : (Verified 8/10/00)
Department of Finance
ARGUMENTS IN SUPPORT : According to the author's office,
this bill will help alleviate the problem of a shortage of
credentialed teachers to teach remedial classes by
expanding the pool of available teachers. The author's
office states, "The demand to teachers in general, and
specifically for remedial education, has increased in
recent years due to many factors, including policies
introduced by the Legislature and approved by the Governor.
For example, class size reduction has increased the demand
for teachers for the early grades and lead to a shortage of
credentialed teachers in a number of low-income and rural
and isolated areas." The author's office also points out
that bills ending the practice of social promotion and
requiring high school exit exams have increased the need
for qualified and experienced teachers to help raise the
academic performance of under-achieving students.
ARGUMENTS IN OPPOSITION : The Department of Finance
believes that this bill "is unnecessary since Chapter 70,
Statutes of 2000 (SB 1666) provides teachers who retired on
or before January 1, 2000, and return to the classroom,
full STRS retirement benefits during the period in which
they are employed."
ASSEMBLY FLOOR :
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn,
Baldwin, Baugh, Bock, Briggs, Cardenas, Cedillo, Corbett,
AB 1736
Page
4
Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Floyd, Gallegos, Granlund, Havice, Honda,
House, Jackson, Kaloogian, Keeley, Knox, Kuehl, Leach,
Lempert, Leonard, Longville, Machado, Maddox, Maldonado,
Margett, Mazzoni, McClintock, Migden, Nakano, Oller,
Robert Pacheco, Rod Pacheco, Papan, Pescetti, Reyes,
Romero, Scott, Shelley, Steinberg, Strickland,
Strom-Martin, Thompson, Thomson, Torlakson, Villaraigosa,
Vincent, Wayne, Wesson, Wiggins, Wildman, Wright, Zettel,
Hertzberg
DLW:cm 8/10/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****