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CalSTRS board sets AB 19 97 effective date for July 1, 2027 and initiates two rulemaking processes
Summary
The CalSTRS board approved July 1, 2027 as the effective date for AB 19 97, and voted to initiate formal rulemaking and schedule public hearings (Sept. board meeting) on regulations for creditable compensation and administrative remedies tied to AB 19 97 and AB 16 67.
The CalSTRS board took three formal actions related to statute implementation and regulations.
1) AB 19 97 effective date: Staff recommended, and the board approved, setting July 1, 2027 as the effective date for AB 19 97 to align statutory changes with the Benefit Connect system implementation and a school‑year basis. Board member Mr. Morris moved the item; the motion passed by roll call.
2) Rulemaking on creditable compensation: The board voted to initiate formal rulemaking to implement AB 19 97 (definitions, documentation requirements and alignment of existing regulations) and to schedule a public hearing at the September board meeting. Staff described a 45‑day written comment period and the process for amending language and returning to the board in November if substantive changes are required.
3) Rulemaking on administrative remedies: The board approved initiating formal rulemaking to update administrative remedy regulations (to align with AB 16 67 regarding overpayments, employer audits, and executive reviews) and scheduled a September public hearing.
Voting notes: The roll calls for the items included several abstentions and 'no' votes in some cases but all three motions carried. For item 11 (AB 19 97 effective date) the board recorded an abstention by Miss Whitaker; other items had a mix of ayes and a small number of abstentions as shown on the record.
Next steps: Staff will publish rulemaking notices, open written comment periods, hold the scheduled September public hearings and return to the board with adoption packages or amended language in November as appropriate.
