BILL ANALYSIS SENATE COMMITTEE ON EDUCATION Gloria Romero, Chair 2009-2010 Regular Session BILL NO: AB 146 AUTHOR: Mendoza AMENDED: March 25, 2009 FISCAL COMM: No HEARING DATE: June 17, 2009 URGENCY: No CONSULTANT: James Wilson SUBJECT : Instructional Materials SUMMARY This bill provides that a publisher or manufacturer that fails to deliver instructional materials within 60 days of the receipt of a purchase order from a school district is liable for damages in the amount of $500 for each working day that the order is delayed beyond 60 calendar days, unless the district approves the delay or the delay has resulted from a disaster. BACKGROUND Current law requires an instructional materials publisher or manufacturer to guarantee delivery of textbooks and instructional materials prior to the opening of school in the year in which the textbooks and instructional materials are to be used, provided that materials are ordered by the date specified in the contract. Current law does not specify penalties for failure to meet the delivery guarantee. ANALYSIS This bill: 1) Provides that a publisher or manufacturer that fails to deliver instructional materials within 60 days of the receipt of a purchase order from a school district liable for damages in the amount of $500 for each working day that the order is delayed beyond 60 calendar days, except as specified. 2) Provides that a publisher or manufacturer is not AB 146 Page 2 liable for late delivery of instructional materials if a natural disaster, terrorist attack, act of war, or worker strike caused the late delivery. 3) Provides that a publisher or manufacturer is not liable for late delivery if the publisher or manufacturer has received prior written approval from the district for a delay in delivery. 4) Provides that a publisher or manufacturer may not be held liable for an amount greater than $20,000 for any single purchase order. 5) Requires a school district that seeks to recover damages must give the publisher or manufacturer written notification of the actual delivery date of the instructional materials and the date upon which damages began to accrue. STAFF COMMENTS 1) Author's Amendments. The author's office has indicated that the author is agreeable to accepting an amendment to hold publishers harmless for delays caused by the adopting agency (either the State Board for K-8 materials or local boards for grade 9 - 12 materials). Last minute change orders, for example, can force delays that are not within the control of the publishers. Accordingly, staff recommends the following amendment: On page 2, line 30, between the comma and "neither", insert: or if there is a delay in the implementation of governing board requirements, 2) Williams case requirements . In August 2004, the state entered into a settlement in the Williams v. California case that required the state to ensure, among other items, that pupils have access to reasonably current textbooks and instructional materials, in useable condition, in each core subject, to use in class and to take home for homework. One of the bills that implemented the Williams settlement, SB 550 of 2004 (Chapter 900, Vasconcellos) required AB 146 Page 3 that each County Superintendent annually visit schools ranked in deciles 1, 2, or 3 of the Academic Performance Index (API) during the first month of school to insure that all pupils have sufficient textbooks for all core subject classes. In the event at a failure to provide sufficient quality instructional materials is identified by the County Superintendent, or by other means, then the State Superintendent is required to purchase the materials for the schools that lack them and charge the district for the expense. 3) Previous legislation . A similar bill, AB 357 (Mendoza) of 2008, would have made a publisher or manufacturer liable for damages if it failed to deliver instructional materials within 60 days of the receipt of a purchase order from a school district. AB 357 was vetoed by Governor Schwarzenegger with the following veto message: "While I am supportive of efforts to ensure that school districts have instructional materials available for their students on a timely basis, this bill is unnecessary. Districts may enter into contractual agreements with publishers and can negotiate any level of penalty based on a variety of contract terms, even without statutory mandate." 4) Previous regulation. A regulation adopted by the State Board of Education (Section 9530 of Title 5 of the California Code of Regulations) used to impose penalties on publishers that failed to deliver instructional materials within 60 days of the receipt of a purchase order. The Title 5 regulation was repealed for lack of statutory authority. This bill mirrors the repealed regulation. SUPPORT American Federation of State, County and Municipal Employees Association of California School Administrators California Federation of Teachers San Francisco Unified School District AB 146 Page 4 OPPOSITION Secretary of Education