1996 State Legislation



Intro 1/19/95
Medicare (Extend Bargaining Period) As an urgency measure, extends to 7/1/99, the current bargaining window for STRS-covered employees to elect Medicare coverage. Repeals the provision on 1/1/2000. Includes urgency provision. Sponsored by CTA 318 (7/29/96), effective immediately; Position: NONE
Intro 2/15/95
Options Benefit Would have allowed any member who retired prior to 1/1/91, under Option 2 or 3 and whose beneficiary has died prior to 1/1/95, and no new option beneficiary has been named by the retired member, to return to the unmodified allowance and provides funding for increased program costs. Sponsored by CRTA Died in Committee (1/31/96); Position: SUPPORT, IF AMENDED
Intro 2/22/95
Federal Compliance (Source Tax Exclusion for Non CA Residents) As an urgency measure, adds provisions to the Revenue and Taxation Code that “qualified retirement income” from sources within CA are excluded from the gross income of a non-resident for state income tax purposes. Nonresidents who earn income other than pensions from work in CA will still remain subject to tax on their CA earnings. 506 (9/14/96), effective 7/1/96; Position: SUPPORT
Intro 2/23/95
Education Code Revision Would have: 1) established a 21 member commission on 1/1/97 to revise the Education Code; 2) repealed effective 1/1/99 most of Title 1 and 2 of the Education Code regarding elementary and secondary education including the TRL contained in Parts 13 and 14 of Title 1; and 3) the commission would be required to submit a recommended revised Education Code to the Legislature by 1/1/98. Sponsored by the Governor’s Office of Child Development and Education Bill died in committee 7/3/96; Position: NEUTRAL, IF AMENDED
Intro 2/23/95
Class Size Reduction (Post-Retirement Earnings Limit Exemption) Provides until 7/1/99 that earnings paid to a member who retired on or before 7/1/96 and is employed in grades K-12 because of the class size reduction program are exempt from the post retirement earnings limitation. Note: Double-joined with a bill that failed passage. STRS will pursue an urgency measure in January `98 to correct the double-joining problem. 948 (9/25/96), never became operative; Position: SUPPORT;
Intro 2/24/95
Rule of 85 Would have allowed a member of STRS who is 50 years of age or older to retire on or after 7/1/96 with full retirement benefits if the member’s age plus years of credited service equals or exceeds 85. These provisions would be repealed on 1/1/99. Sponsored by UTLA Died in committee 1/31/96; Position: SUPPORT, IF AMENDED
Intro 2/16/96
Local Retirement Systems Deletes specific prohibitions in PERS law regarding classified school employee ’s benefits and allow election of optional benefits and termination of contracts. Note: The provisions that would have impacted STRS were deleted from the bill in the 5/14/96 amendments. Sponsored by SSC 1164 (9/30/96); Position: NO POSITION (on final version)
AB-2673 *
Intro 2/22/96
Cash Balance Technical Housekeeping As an urgency measure, amends the Cash Balance Plan statutes as necessary to facilitate employers’ “option” to offer the Plan. Makes other technical and conforming amendments as appropriate. Note: Enabling legislation was introduced in 1995 as a mandate, but was amended late in that legislative session to allow employers the choice of offering the plan. 608 (9/18/96), effective 7/1/96
AB-3032 *
Intro 2/23/96
Continued Eligibility For Students; Revision of TRL Definitions 1) Eliminates the requirement that a dependent child between the ages of 18 or 22 must maintain full-time student status to remain eligible for the child’s portion of a disability or family allowance under Coverage A (Provisions sunset 2002); 2) repeals the definition of “compensation” and “salary” and adds a definition of “creditable compensation,” making clarifying amendments as appropriate; and 3) amends the definition of “class of employees,” as specified. 1165 (9/30/96), 1) effective 1/1/97; 2,3) effective 7/1/96
AB-3221 *
Intro 2/23/96
STRS/PERS Election Process 1) Amends provisions specifying the process and time limit for electing membership in STRS or other public school employment under specified conditions; and 2) adds provisions requiring employers to inform employees within 10 working days from the date of hire of their right to make an election. Once received and accepted by the retirement system, the election shall become effective as of the first day of employment in the position that qualified the member to make an election. 383 (8/17/96), effective 1/1/97
Intro 2/23/96
Establish the PEDCR Plan Would have established the Public Employees’ Defined Contribution Retirement (PEDCR) Plan for state and other local public agency employees whose employers elect to participate in the Plan. Would also specify that the day-to-day administration of the Defined Contribution Plan shall be contracted out to a private third party administrator and funded by employer and employee contributions. Died in Committee 7/1/96; Senator Hughes to pursue interim hearing; Position: OPPOSE
Intro 2/21/96
Domestic Partners Would have added a new chapter to the TRL extending eligibility for STRS benefits currently available to spouses to domestic partners, but only upon a school districts’ election to be subject to these provisions. Sponsored by CTA Died in Committee 6/10/96; Position: NEUTRAL, IF AMENDED
Intro 2/23/96
Investments (Tobacco Companies) Would have: 1) prohibited new investments of State trust funds in tobacco companies on and after 1/1/97; 2) required phased divestment of one-third of current holdings each year beginning 1/1/98, and continuing until 1/1/2000; and 3) provided for indemnification for TRB members and their agents and employees. Died in Policy Committee 6/10/96; Position: OPPOSE
Intro 1/30/95
Elected STRS Board Would have required that the four “teacher” members of the TRB be elected from their respective constituencies rather than appointed by the Governor. Co-sponsored by ART and CTA Bill withdrawn by author (9/3/97); Position: NONE
Intro 2/17/95
Health Insurance Would have authorized the TRB to contract for health insurance, including vision and dental care to members, beneficiaries, children, and dependent parents. Sponsored by CRTA Position: SUPPORT
Intro 2/23/95
Purchasing Power Protection Would have required the TRB to include in the Annual Erosion of Purchasing Power Report information on the effect of reducing the annual SBMA loan repayment amount and repaying that loan over 5, 10, and 15 year periods. Co-sponsored by ACSA, ART, CRTA, and CTA Bill withdrawn by author (7/3/96); Position: NEUTRAL
Intro 1/10/96
1996-97 Budget Makes appropriations for support of state government for the 1996-97 fiscal year. 162 (7/15/96), effective 7/1/96
Intro 2/13/96
Federal Compliance (Source Tax Exclusion for Non CA Residents) Would have added provisions to the CA Revenue and Taxation Code to specify that, for state income tax purposes, qualified retirement income from a source within CA would be excluded from the gross income of a nonresident, and would bring State statutes into compliance with recently enacted federal law. Note: bill was gutted, no longer impacting STRS. Inactive File (8/31/96); Position: SUPPORT
Intro 2/21/96
Options Benefit Survey Would have required the TRB to conduct a sample survey to determine the number of members and cost for those who retired before 1/1/91 with an Option 2 or 3 to return to the unmodified allowance if the option beneficiary died prior to 1/1/95. At the request of the sponsor, the TRB agreed to conduct the survey without legislation. Note: At the request of the sponsor, the TRB agreed at its July `96 meeting to conduct the survey without legislation during 1997. Sponsored by CRTA. Died in Assembly Fiscal Committee 7/3/96; Position: SUPPORT; Study adopted by the TRB at its October `97 meeting
SB- 1877 *
Intro 2/22/96
Federal Compliance (USERRA) Enacts provisions for STRS/PERS and the 37 Act counties to be in compliance with the federal USERRA. Co-sponsored with PERS and 37 Act Counties. 680 (9/20/96), effective 1/1/97
Intro 2/23/96
Compounded 2% Benefit Improvement Factor Would have provided that beginning 9/1/97, the 2% improvement factor applied to STRS benefit payments shall be compounded. Sponsored by CFT Died in Fiscal Committee (5/19/96); Position: SUPPORT, IF AMENDED
SB-2041 *
Intro 2/23/96
TRL Technical Housekeeping Makes technical and conforming changes made necessary by enactment of the Cash Balance Plan and the new definition of member. 634 (9/19/96), effective 1/1/97
(Johnston, et al)
Intro 2/23/96
SBMA Settlement As an urgency measure appropriates funds, as specified, to the State Board of Control to pay accepted claims. Includes a General Fund appropriation of $540,000 to settle STRS’ claim from 1992 relating to interest payments on the SBMA due to late payment. Sponsored by Board of Control 487 (9/12/96), effective 9/13/96; Position: INFORMATION ONLY
SJR-27 *
Intro 5/26/95
Sale of Elk Hills Memorializes the President and the Congress of the U.S. to sell the Elk Hills Naval Petroleum Reserve Numbered 1 while recognizing the state’s valid claim to two school land sections within the Reserve, and to compensate CA’s retired teachers for their 9% interest in the Reserve upon its sale. Co-sponsored with CRTA and SLC 68 (9/6/96), effective 1/1/97
Intro 2/16/95
Re-establish Commission on Corporate Governance Re-establishes until 1/31/96, the Commission on Corporate Governance, Shareholder Rights, and Securities Transactions to conduct research and make public policy recommendations concerning these subjects. Adopted (2/1/96); Position: INFORMATION ONLY
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, 1996 State Updated: May 11, 2001