BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 2105|
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THIRD READING
Bill No: SB 2105
Author: Lewis (R)
Amended: 5/1/00
Vote: 21
SENATE EDUCATION COMMITTEE : 13-0, 5/10/00
AYES: Alpert, McPherson, Alarcon, Chesbro, Dunn, Hayden,
Hughes, Knight, Monteith, O'Connell, Ortiz, Sher,
Vasconcellos
NOT VOTING: Haynes
SENATE APPROPRIATIONS COMMITTEE : 12-0, 5/22/00
AYES: Johnston, Alpert, Bowen, Burton, Escutia, Johnson,
Kelley, Leslie, McPherson, Mountjoy, Perata, Vasconcellos
NOT VOTING: Karnette
SUBJECT : Charter schools
SOURCE : Author
DIGEST : This bill requires a local educational agency
that is the chartering authority for a charter school to
submit reports to the State Teachers' Retirement System and
the Public Employees' Retirement System on behalf of the
charter school's employees.
ANALYSIS : Current law provides for the governing board
of a school district or county office of education, or the
State Board of Education, to approve a petition for
operation of a charter school unless the Board determines
that the charter should not be approved for specified
CONTINUED
SB 2105
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reasons.
Current law allows charter school to elect to participate
in the State Teachers' Retirement System (STRS) and, in a
school that elects to participate the law requires that all
employees who perform "creditable" service shall be
entitled to have that service covered under the STRS
Defined Benefit Program or Cash Balance Benefit Program.
School districts are allowed to charge one percent to three
percent of a charter school's revenue for the costs of
supervisorial oversight, but such oversight does not
typically include administrative services. Charter schools
are currently free to contract with the district, or any
other provider, for administrative services such as payroll
processing.
This bill:
1.Requires a local educational agency that is the
chartering authority for a charter school to submit
reports to STRS and the Public Employees' Retirement
System (PERS) on behalf of the charter school's
employees.
2.Allows a local educational agency that submits reports to
the STRS or PERS on behalf of a charter school to charge
the school for the actual costs of reporting, but
prohibits the local educational agency from requiring the
charter school to purchase payroll processing services as
a condition of preparing the reports.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
Unknown increased costs. Potentially offset by fees.
While this bill creates a new mandate on LEAs, it also
establishes authority for the collection of fees to cover
costs.
SUPPORT : (Verified 5/24/00)
California Teachers Association
California Network of Educational Charters
SB 2105
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NC:cm 5/24/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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