BILL ANALYSIS                                                                                                                                                                                                    



                                                                    SB 1694
                                                                    Page  1

          Date of Hearing:   July 5, 2000

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                              Carole Migden, Chairwoman

                 SB 1694 (Ortiz) - As Introduced: February 22, 2000 

          Policy Committee:                               
          P.E.R.&S.S.Vote:6-0

          Urgency:     No                   State Mandated Local  
          Program:NoReimbursable:           

           SUMMARY  :

          This bill, as proposed to be amended, allows members of the  
          California State Teachers' Retirement System (CalSTRS) who  
          become employed by the State Department of Education (SDE) to  
          remain in CalSTRS.  Additionally, this bill allows K-14 school  
          district and SDE members of the California Public Employees'  
          Retirement System (CalPERS) who become employed in service that  
          requires membership in CalSTRS to remain in CalPERS.
           
           FISCAL EFFECT  :

          No net state fiscal impact.

           COMMENTS  :

           1)Background  .  Current law allows CalSTRS members who become  
            employed in a position requiring CalPERS membership by the  
            same or a different school district, community college  
            district or county superintendent of schools to remain in  
            CalSTRS.  However, current law does not allow CalSTRS members  
            who accept employment with a state agency requiring CalPERS  
            membership to remain in CalSTRS.

            Current law also allows CalPERS members employed by the Board  
            of Governors of the California Community Colleges who  
            subsequently accept employment with a community college  
            district that requires CalSTRS membership to remain in  
            CalPERS.  However, current law does not allow other state or  
            school CalPERS members who become employed by school employers  
            requiring CalSTRS membership to remain in CalPERS.









                                                                    SB 1694
                                                                    Page  2

           2)Purpose.   This bill would allow CalSTRS members who become  
            employed by the SDE to remain in CalSTRS, and allow K-14  
            school CalPERS members (classified school employees) and SDE  
            CalPERS members who become employed in service that requires  
            membership in CalSTRS to instead remain in CalPERS.   This  
            bill is intended to address a recruitment problem faced by the  
            SDE when trying to hire experienced teachers to work for the  
            state.  Because many of these teachers are nearing retirement  
            age, they want to maintain their CalSTRS membership in order  
            to maximize their retirement benefits. 
           
          3)Proposed Amendments  .  The proposed amendments, agreed to by  
            the author, SDE, CalSTRS and CalPERS, primiarily limit the  
            scope of the bill to SDE employees, rather than all state  
            employees.  The original version of the bill would allow a  
            CalSTRS member accepting employment in any state agency to  
            retain CalSTRS membership.  The proposed amendments limit this  
            right to CalSTRS members accepting employment with SDE.   
            Similarly, the original version of the bill would allow any  
            state or K-14 school district CalPERS member accepting  
            employment with a school employer requiring CalSTRS membership  
            to instead retain CalPERS membership.  The proposed amendments  
            limit this right to SDE and K-14 school district CalPERS  
            members accepting employment with a school employer requiring  
            CalSTRS membership.
           
           


           Analysis Prepared by  :    Stephen Shea / APPR. / (916) 319-2081