Bill Text: CA SB1343 | 2021-2022 | Regular Session | Amended
Bill Title: Public employees’ retirement: charter schools.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2022-08-24 - Motion to reconsider made by Assembly Member Reyes. [SB1343 Detail]
Download: California-2021-SB1343-Amended.html
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Amended
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Assembly
August 15, 2022 |
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Amended
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Assembly
June 15, 2022 |
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Amended
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Senate
April 26, 2022 |
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Amended
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Senate
March 22, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 1343
| Introduced by Senator Leyva |
February 18, 2022 |
An act to amend Sections 23001, 26301.5, and 47611 of, and to add Section 47611.1 to, the Education Code, and to amend Sections 20610 and 20617 of the Government Code, relating to retirement, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1343, as amended, Leyva.
Public employees’ retirement: charter schools.
(1) The Teachers’ Retirement Law establishes the State Teachers’ Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law also establishes the Cash Balance Benefit Program for the purpose of providing a retirement plan for specified teachers whose service is less than 50% of the full-time equivalent for the person’s position or who are employed on a temporary basis or as a substitute, as specified. The Cash Balance Benefit Program and STRS are administered by the Teachers’ Retirement Board. The Public Employees’ Retirement Law establishes the Public Employees’ Retirement System (PERS), which provides defined benefits to members of the system
based on final compensation, credited service, and age at retirement, subject to certain variations. PERS is administered by its board of administration. The California Constitution grants plenary authority for the administration of a public pension or retirement system to its retirement board, as specified, and provides that the assets of a retirement system are trust funds, as specified.
Existing law creates the Teachers’ Retirement Fund, which is continuously appropriated, and into which are deposited employer, state, and employee contributions, as well as funds connected with the Cash Balance Benefit Program. Existing law creates the Public Employees’ Retirement Fund, which is also continuously appropriated, and into which, among other assets, employer and employee contributions are deposited.
The Charter Schools Act of 1992 authorizes the establishment and operation of charter schools. Existing law authorizes charter
schools to elect to make STRS, PERS, or both available to qualifying employees.
This bill would require a charter school initially authorized to commence operations on and after January 1, 2023, 2025, to participate in STRS or PERS, or both. The bill would specify that this provision does not apply to a charter school seeking a renewal authorization on or after January 1, 2023, 2025, if the charter school initially received authorization to commence operations before January 1, 2023,
2025, and has continuously operated as a charter school since that initial authorization. The bill would generally require STRS, the Cash Balance Benefit Program, and PERS to apply to a charter school in the same manner as the systems and program apply to other public schools.
The bill would require the chartering authority to provide notice to STRS or PERS, as applicable, of the occurrence of specified events, including approval of a charter school petition, within 30 days of the event’s occurrence, on a form prescribed by the system.
For the purpose of paying contributions on behalf of a charter school, the bill would require a county superintendent, district superintendent, or other employing agency that reports directly to STRS, upon state apportionment to a charter school, to draw requisitions against the funds of the charter school in amounts equal to the estimated contributions
required to be paid by the charter school to STRS, as specified, and pay them to the system. The bill would prohibit these requisitions from exceeding an estimated 3 months of contributions to be paid by the charter school. The bill would also require a county superintendent, district superintendent, or other employing agency that reports directly to the retirement system to use any unencumbered funds, otherwise legally available for this purpose, to pay for any amounts due to the system that remain unpaid. The bill would require the estimated amount to be determined by the county superintendent, district superintendent, or other employing agency. The bill would create similar requirements and prohibitions for purposes of requisitions related to the Cash Balance Benefit Program and PERS. By depositing additional moneys in continuously appropriated funds, this bill would make an appropriation.
(2) Existing law requires a county superintendent,
district superintendent, chancellor of a community college district, or other employing agency that reports directly to the STRS to draw requisitions for contributions required pursuant to specified provisions in favor of the system. Existing law requires employers participating in STRS to contribute monthly a specified percentage of the creditable contribution upon which member contributions are based in connection with funding the liability for benefits related to accumulated and unused sick leave.
This bill would require that the monthly contributions for benefits related to accumulated and unused sick leave be subject to the above-described requisition process.
Digest Key
Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 23001 of the Education Code is amended to read:23001.
(a) Each county superintendent, district superintendent, chancellor of a community college district, or other employing agency that reports directly to the system shall draw requisitions for contributions required by Sections 22901, 22901.7, 22950, 22950.5, and 22951 in favor of the State Teachers’ Retirement System, and the requisitions, when allowed and signed by the county auditor, shall constitute a warrant against the county treasury. The county superintendent, district superintendent, chancellor of a community college district, or other employing agency thereupon shall forward the warrants to the board in the system’s headquarters office. The amounts received shall be deposited immediately in the State Treasury to the Teachers’ Retirement Fund.(b) (1) (A) For the purpose of paying contributions due to the system on behalf of a charter school, the county superintendent, district superintendent, or other employing agency that reports directly to the system shall, upon state apportionment to the charter school, draw requisitions against the funds of the charter school in amounts equal to the contributions required to be paid pursuant to Sections 22901, 22901.7, 22950, 22950.5, and 22951.
(B) The requisitions drawn pursuant to subparagraph (A) shall not exceed an estimated three months of contributions required to be paid on behalf of the charter school to the system pursuant to Sections 22901, 22901.7, 22950, 22950.5, and 22951. The estimated amount shall be
determined by the county superintendent, district superintendent, or other employing agency that reports directly to the system.
(C) The requisitions drawn pursuant to subparagraph (A) shall be paid to the system by the county superintendent, district superintendent, or other employing agency that reports directly to the system pursuant to this chapter.
(2) (A) For the purpose of paying penalties and interest due to the system on behalf of a charter school, the county superintendent, district superintendent, or other employing agency that reports directly to the system shall, upon state apportionment to the charter school, draw requisitions against the funds of the charter school in amounts equal to the penalties and
interest required to be paid pursuant to Sections 23002, 23003, 23006, and 23008.
(B) The requisitions drawn pursuant to subparagraph (A) shall be paid to the system by the county superintendent, district superintendent, or other employing agency that reports directly to the system pursuant to this chapter.
(3) The county superintendent, district superintendent, or other employing agency that reports directly to the system shall use any unencumbered funds, otherwise legally available for this purpose, to pay for any amounts due to the system that remain unpaid.
SEC. 2.
Section 26301.5 of the Education Code is amended to read:26301.5.
(a) Each employer shall deduct from the salary of participants employed by the employer the participant contributions required by this part and shall remit to the system those contributions plus the employer contributions required by this part and Section 44987.(b) (1) (A) For the purpose of paying contributions due to the system on behalf of a charter school, the employer shall, upon state apportionment to the charter school, draw requisitions against the funds of the charter school in amounts equal to the contributions required to be paid pursuant to this part and Section 44987.
(B) The requisitions drawn pursuant to subparagraph (A) shall not exceed an estimated three months of contributions required to be paid on behalf of the charter school to the system pursuant to this part and Section 44987. The estimated amount shall be determined by the employer.
(C) The requisitions drawn pursuant to subparagraph (A) shall be paid to the system by the employer pursuant to this chapter.
(2) (A) For the purpose of paying penalties and interest due to the system on behalf of a charter school, the employer shall, upon state apportionment to the charter school, draw requisitions against the funds of the charter school in amounts equal to the penalties
and interest required to be paid pursuant to Sections 26301, 26302, and 26303.
(B) The requisitions drawn pursuant to subparagraph (A) shall be paid to the system by the employer pursuant to this chapter.
(3) The employer shall use any unencumbered funds, otherwise legally available for this purpose, to pay for any amounts due to the system that remain unpaid.
(4) As used in this subdivision, “employer” shall only include a school district, community college district, or county office of education that reports directly to the system.
SEC. 3.
Section 47611 of the Education Code is amended to read:47611.
(a) Prior to January 1,(b) (1) If a charter school offers its employees coverage by the State Teachers’ Retirement System or the Public Employees’ Retirement System, or both, the charter school shall inform all applicants for positions within that charter school of the retirement system options for employees of the charter school.
(2) The information shall specifically include whether the charter school makes available to employees coverage under the State Teachers’ Retirement System, the Public Employees’ Retirement System, or both systems, and that accepting employment in the charter school may exclude the
applicant from further coverage in the applicant’s current retirement system, depending on the retirement options offered by the charter of the charter school.
(c) The chartering authority shall provide notice to the State Teachers’ Retirement System or the Public Employees’ Retirement System, as applicable, if any of the following events occur:
(1) A charter school petition is approved.
(2) A charter school renewal petition is granted or denied.
(3) A charter school charter is revoked.
(4) A charter school has ceased operations for any reason.
(d) The notice described in subdivision (c) shall be transmitted within 30 calendar days of the occurrence of the event, on a form prescribed by the system.
SEC. 4.
Section 47611.1 is added to the Education Code, to read:47611.1.
(a) A charter school initially authorized to commence operations on or after January 1,(b) The chartering authority shall provide notice to the State Teachers’ Retirement System or the Public Employees’ Retirement System, as applicable, if any of the following events occur:
(1) A charter school petition is approved.
(2) A charter school renewal petition is granted or denied.
(3) A charter school charter is revoked.
(4) A charter school has ceased operations for any reason.
(c) The notice described in subdivision (b) shall be transmitted within 30 calendar days of the occurrence of the event, on a form prescribed by the system.
(d) This section shall not apply to the extent it would cause the State Teachers’ Retirement System or the Public Employees’ Retirement System or their members to incur adverse tax consequences under the federal Internal Revenue Code of 1986 (Title 26 of the United States Code).
(e) The requirements of this section shall not be waived by the state board pursuant to Section 33050 or any other law.
(f) This section shall not apply to a charter school seeking a renewal authorization on or after January 1,
2023, 2025, if the charter school initially received authorization to commence operations before January 1, 2023, 2025, and has continuously operated as a charter school since that initial authorization.
SEC. 5.
Section 20610 of the Government Code is amended to read:20610.
(a) Every county superintendent of schools shall enter into a contract with the board for the inclusion in this system of (1) all of the employees of the office of county superintendent whose compensation is paid from the county school service fund other than employees electing pursuant to Section 1313 of the Education Code to continue in membership in a county system; and (2) all of the employees of school districts and community college districts existing on July 1, 1949, or thereafter formed, within their jurisdiction, other than school districts that are contracting agencies or that maintain a district, joint district, or other local retirement system, with respect to service rendered in a status in which they are not eligible for membership in the State Teachers’ Retirement Plan. The effective date of each contract shall not be later than July 1, 1949. For the purposes of this part, those school district employees shall be considered employees of the county superintendent of schools having jurisdiction over the school district by which they are employed and service to the district shall be considered service to the county superintendent of schools.(b) (1) If a charter school participates in the system, all employees of the charter school who qualify for membership in the system shall be covered under the system and all provisions of this part shall apply apply, as
appropriate, to the charter school in the same manner as those provisions apply to other public schools. school.
(2) Notwithstanding any other law, a charter school shall not participate in this system if the board, in its sole discretion, determines that participation would jeopardize the system’s tax-qualified or governmental plan status under federal law. The board may impose any additional requirements, in addition to those in this section, that the board considers necessary to comply with applicable federal law.
SEC. 6.
Section 20617 of the Government Code is amended to read:20617.
(a) (1) The county superintendent of schools at the close of each month shall draw requisitions against the county school service fund and the funds of the respective school districts for amounts equal to the total of the employers’ contributions required to be paid from the county school service fund and from the funds of the districts, and the contributions deducted from the compensation of employees paid from those funds. The amounts shall be deposited in the county treasury to the credit of the contract retirement fund. The employers of persons paid from other funds, at the close of each month, shall pay into the contract retirement fund the amounts required to be paid by those employers together with the contributions deducted from the compensation of those employees.(2) Thereafter the county superintendent of schools shall draw the requisitions against the contract retirement fund and in favor of the board which, when allowed by the county auditor, shall constitute warrants against the fund for the amount of the employees’ contributions transferred to or otherwise paid into the fund during that month and for the amount of employers’ contributions transferred to or otherwise paid into the fund. The county superintendent of schools shall forward the warrants to the board.
(b) (1) For the purpose of paying necessary contributions to the contract retirement fund on behalf of a charter school.
school, the county superintendent, district superintendent, or other employing agency that reports directly to the system shall, upon state apportionment to the charter school, draw requisitions against the funds of the charter schools in amounts equal to the estimated total contributions required to be paid by the charter school to the contract retirement fund.
(2) The requisitions drawn pursuant to paragraph (1) shall not exceed an estimated three months of employer contributions required to be paid by the charter school to the contract retirement fund. The estimated amount shall be determined by the county superintendent of schools.
(3) The requisitions drawn pursuant to paragraph (1) shall be
paid by the county superintendent, district superintendent, or other employing agency to the system.
