BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

                                SB 473  (Ortiz)

Hearing Date:5/24/99            Amended:5/6/99         
Consultant: Maureen Brooks          Policy Vote:P.E. & R.   
4-0                      
____________________________________________________________ 

BILL SUMMARY:   SB 473 authorizes a school district,  
community college district, or county office of education  
to pay all or part of a member's costs for nonqualified  
service credit ("airtime"), as specified.

                         Fiscal Impact (in thousands)
  
Major Provisions             1999-2000       2000-01       2001-02    Fund  

STRS admin costs    ---------------minor------------------STRF

Service credit benefit         ------unknown, but paid at the 
                               OPTION of employers----LOCAL

STAFF COMMENTS:  FOR RECONSIDERTION - VOTE ONLY.  This bill  
failed passage 1-6 on 5/17/99.  

Current law provides for the purchase of service credit due  
to sabbatical leave, family leave and leave approved for  
participation in specified Federal programs.
In addition, SB 2126 of 1998 allows CalSTRS members with at  
least five years of service credit to purchase up to five  
years of nonqualified service credit, otherwise known as  
"airtime".    SB 473 provides that employer payments made  
for airtime service on behalf of an employee must be made  
in a lump sum.

SB 473 provides that employers must establish criteria to  
determine eligibility that is broad enough to apply to at  
least 20 employees who are members of the system, or 3  
percent of the employees who are members of STRS, whichever  
is greater, unless the STRS Board authorizes the  
application of criteria to a lesser number due to unique  
circumstances.   The opportunity to have the cost of  
service credit paid by the employer must be applied equally  
to all employees.











Employers will make airtime payments either to encourage  
employees to remain, or cease employment with the employer  
in order to facilitate a change in workforce requirements.

Staff notes that SB 473 does not require the member to  
retire, therefore, it is different from the traditional  
"golden handshake".