Post

1988 State Legislation

 

AB-59
(Elder)
Intro 12/3/86
Disbursement of Revenue (Elk Hills) Requires any revenues related to the State’s claim to school lands within the Elk Hills Naval Petroleum Reserve to be deposited into the School Land Bank Fund. Interest earnings will go to the TRF for distribution on a pro-rata basis to STRS benefit recipients whose payments are below 75% of purchasing power. Sponsored by CRTA 985 (9/19/88), effective 1/1/89; Position: SUPPORT
AB-147
(Elder)
Intro 12/19/86
Supplemental Social Security Plan (Alternative Retirement Plan) Requires STRS to develop an alternative retirement plan recommendation to provide members an adequate retirement benefit for use if benefits are coupled with Social Security, and to submit the recommendation to the Legislature by March 1, 1989. 743 (9/7/88), effective 1/1/89; Position: NEUTRAL
AB-1982
(O’Connell)
Intro 3/6/87
Credit for Out-of-State Service Would have authorized a member who retires after 1/1/89 to elect to receive additional service credit for out-of-state service, as specified, if the member pays all contributions at the rate for additional service credit at the time of election and precludes such purchased service from being eligible for specified postretirement quarterly supplemental payments. The Governor vetoed a similar bill in 1986 viewing these provisions as a liberal expansion of retirement benefits not available to members who have served their full careers in CA, and that the purchase price would not cover actual costs of the extra retirement allowance resulting in an increase of STRS’ unfunded liability which would be counterproductive to maintaining the retirement plan in a financially sound condition. Sponsored by CFT Governor Veto (9/29/88); Position: NEUTRAL
AB-2874
(Elder)
Intro
Investments (Reporting Requirements) Requires the TRB to submit to the Legislature, by November 1 of each year, a report of the unaudited investment data compiled for the preparation of the annual report required in EC Section 22308. 902 (9/13/88), effective 1/1/89; Position: SUPPORT
AB-2882
(Elder)
Intro 1/28/88
One-year Final Compensation of Classroom Teachers Would have provided that “final compensation” shall mean the highest annual compensation earnable by the member who is a classroom teacher, as defined, during any period of 12 consecutive months during his or her membership in STRS. The Governor was concerned with increasing retirement allowances for certain STRS members without providing a funding source to support the increase ($142.5 million the first year), therefore increasing STRS’ unfunded liability by $250 million per year; putting pressure on PERS to offer comparable benefits; and, creating a distinction in benefits between classroom teachers and other STRS members. Sponsored by CTA and UTLA Governor Veto (9/30/88); Position: OPPOSE
AB-2885
(Elder)
Intro 1/28/88
Service Credit for Leave of Absence Increases the maximum amount of retirement service credit earnable by an active STRS member on an approved leave to serve as an elected member of an employee organization, from a maximum of 8 years to a maximum of 12 years. Sponsored by UTLA 688 (8/28/88), effective 1/1/89; Position: OPPOSE
AB-2890 *
(Elder)
Intro 1/28/88
Modify Member Home Loan Program Authorizes the TRB to add owner-occupied 2-4 family dwellings to the STRS Member Home Loan Program. 408 (8/12/88), effective 1/1/89
AB-3172
(Elder)
Intro 2/10/88
Remittance Notification Requires STRS to send a copy of the benefit payment information to the home address of persons whose payments are transmitted directly to their financial institution for deposit beginning 7/1/89. Sponsored by CRTA 792 (9/9/88), effective 1/1/89; Position: NEUTRAL
AB-3194
(Elder)
Intro 2/10/88
Elected STRS Board Would have required that the 3 STRS members and the retired member of the TRB shall be elected to the Board from their respective constituencies. There is no supporting evidence that STRS would be better serviced by elected Board members in lieu of appointed members, and there are substantial administrative costs and workload associated with the election process. Sponsored by ART Governor Veto (8/19/88); Position: OPPOSE
AB-3195
(Elder)
Intro 2/10/88
Military Service Credit Authorizes state employee members and certain retirees of STRS to elect to purchase up to four years of military service credit. Sponsored by CSEA 370 (7/14/88), effective 1/1/89; Position: OPPOSE
AB-3271
(Filante)
Intro 2/11/88
Rule of 85 Would have added an additional, optional, Rule of 85 early retirement incentive provision to STRS which would permit service retirement at or over age 50 without any actuarial reduction in the age 60 retirement factor if the total of the member’s age and credited service is at least 85. Employers would be required to pay the actuarial present value cost of the increased allowance plus related STRS Administrative Costs. The Governor determined that funding this program would divert funds from the classroom; adding early incentives for retirement to experienced educators with many productive years of service remaining in their careers is contrary to predictions of teacher shortages; and, it places retirees in a position to require purchasing power protection earlier than normal. Sponsored by Marin County Superintendents Governor Veto (9/20/88); Position: OPPOSE
AB-3409 *
(Frizzelle)
Intro 2/16/88
Subrogation Program Permits the TRB to initiate a program to recover benefits paid as a result of the death of or injury to a STRS member caused by a third person (other than the employer). 380 (7/15/88), effective 1/1/89
AB-3887 *
(Grisham)
Intro 2/18/88
TRL Technical Housekeeping 1) Deletes a provision requiring STRS to notify retirees of income tax liabilities which were made obsolete by the Federal Tax Reform Act of 1986; 2) renumbers a section of the definitions chapter to be in alphabetical order; 3) clarifies that the TRB may contract with investment managers to monitor and advise the TRB on the voting of shares owned by STRS and advise on responses to other corporate governance matters; 4) clarifies that the original disability allowance date be retained as the base date for determining post retirement benefit increases only when there is a continuous benefit from STRS when a disability allowance is converted to a service retirement allowance; and 5) deletes a reference to a repealed section of the EC. 382 (7/15/88), effective 1/1/89
AB-4095
(Elder)
Intro 2/19/88
STRS/PERS Fiduciary Standards Review Requires the TRB and the Board of Administration of PERS to review their fiduciary standards and report to the Legislature all recommended changes and additions to current statute by 3/1/89. 241 (6/29/88), effective 1/1/89; Position: SUPPORT
SB-451
(Beverly)
Intro 2/18/87
Investments (Corporate Governance Standards) Creates a qualification exemption for companies whose securities are traded on the National Market System of the National Association of Securities Dealers, Inc. Sponsored by National Association of Securities Dealers 716 (8/29/87), effective 1/1/89; Position: OPPOSE
SB-959
(McCorquodale)
Intro 3/4/87
70% Purchasing Power Protection for 1989/90 Would have increased the purchasing power of STRS benefit recipients to 70% of their original purchasing power for fiscal year 1989-90 and 75% in 1990-91 at a cost of $160 million in the first year. The Governor stated that he already provides funds for the maintenance of 68.2% of original purchasing power to offset inflation for retired teachers and suggested that further enhancements should be considered during the normal budget process. Sponsored by ART Governor Veto (9/30/87); Position: OPPOSE
SB-1190
(Lockyer)
Intro 3/5/87
Separate Account for Non-member Spouse Requires STRS, pursuant to a court order, to establish a separate account for service credit and contributions and interest awarded a non-member spouse in a division of community property. The non-member spouse would be eligible to elect a retirement allowance or a refund of contributions and interest. 542 (8/23/87), effective 8/24/88; retroactive to 6/1/88; Position: NEUTRAL
SB-1600
(Garamendi)
Intro 3/6/87
Investments (Voting Records Disclosure) Requires anyone authorized to vote shares of stock owned by others to maintain a record of how the shares are voted and make disclosure of this information. Sponsored by Senate Commission of Corporate Governance, Shareholder Rights, and Securities Transactions 1360 (9/25/87), effective 1/1/90; Position: NEUTRAL
SB-2060
(McCorquodale)
Intro 2/1//88
Investments (Prohibits Greenmail and Hushmail) Would have prohibited target corporations, as defined, from repurchasing more than 3% of its equity securities for more than the post-disclosure market price, as defined, from shareholder or beneficial owner unless approved by the board of directors and shareholders, except as specified. The Governor vetoed a similar bill last year, and although he rejects the practice of “greenmail,” his concern was that the 3% purchasing limit proposed may be overly prescriptive, the definition of “target” corporation may be unconstitutional, and further stated that interstate regulation was the appropriate way to proceed. He also stated that he would welcome federal legislation to address the issue. Sponsored by the Senate Commission on Corporate Governance, Shareholder Rights, and Securities Transactions Governor Veto (9/19/88); Position: SUPPORT
SB-2080 *
(Royce)
Intro 2/12/88
Exemption From Probate Code (Application for Death Benefits) As an urgency measure, expedites death claim payments by authorizing beneficiaries to apply for STRS payment of death benefits under certain conditions without the 40-day waiting period currently required in Section 13101 of the Probate Code. 462 (8/20/88), effective 8/22/88
SB-2082
(Royce)
Intro 2/12/88
Membership Qualifications for Substitutes and Part-time Employees Provides that teachers who have performed 100 or more complete days of substitute service, or 60 hours (10 days) or more of part-time service in a pay period, in one school district or county superintendent’s office shall become members on the first day of the following pay period. Sponsored by Orange County Office of Education 497 (8/22/88), effective 1/1/89; Position: SUPPORT
SB-2552
(Keene)
Intro 2/19/88
Investments (Requirement for Independent Financial Opinion) Requires an independent financial opinion that a proposal for a corporate reorganization, sale of assets or tender offer is fair to the shareholders. If there is more than one proposal received, the first proposal may not be consummated without allowing shareholders a reasonable opportunity to consider the record. Sponsored by Senate Commission of Corporate Governance, Shareholder Rights, and Securities Transactions 265 (7/4/99), effective 7/5/88; Position: SUPPORT
SB-2578
(Robbins, et al)
Intro 2/19/88
Investments (Insider Trading/Securities Practices Makes various additions and amendments to the Corporations Code related to insider trading and other fraudulent securities practices. Sponsored by Senate Commission of Corporate Governance, Shareholder Rights, and Securities Transactions 1339 (9/24/88), effective 1/1/89; Position: SUPPORT
SB-2648
(Kopp)
Intro 2/19/88
Clarifying Statute (Errors and Omissions) Clarifies the statutes pertaining to the correction of errors and omissions. Sponsored by PERS 1089 (9/20/88), effective 1/1/89; Position: SUPPORT
SB-2680
(C. Green)
Intro 2/19/88
Spousal Signature on Disbursements 1) Would have required a spousal signature on forms for applications to withdraw STRS accumulated annuity deposit contributions; and 2) authorizes governing boards of community college districts to adopt workload balancing programs for certificated employees, as specified. No veto message available at this time. Sponsored by FACCC Governor Veto (9/23/88); Position: SUPPORT
SB-2682
(C. Green)
Intro 2/19/88
Statute of Limitations (Adjustments of Errors/Omissions) Sets a statute of limitations of 3 years for adjustments of errors or omissions for purposes of payments into or out of the TRF. Sponsored by CRTA 739 (8/30/88), effective 1/1/89; Position: SUPPORT
 
* STRS SPONSORED LEGISLATION
NOTE: Unless otherwise noted in italicized lettering, or with an asterisk (*) indicating STRS sponsored, legislation was sponsored by the author(s) or committee introducing the bill. Also, refer to the “Legend” for an explanation of abbreviations used.

Decade of Legislation, 1988 State Updated: May 11, 2001


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