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  




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               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  




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               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





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           OPPOSITION

           Secretary of Education