BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1052
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          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 1052 (Steinberg) - As Amended:  August 6, 2012 

          Policy Committee:                              Higher 
          EducationVote:7-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill, subject to future funding, provides for the 
          development of low-cost digital textbooks for the 50 most widely 
          taken lower division courses across the state's public 
          postsecondary education segments. Specifically, this bill:

          1)Establishes a California Open Education Resources Council 
            (COERC), composed of three faculty members each from the 
            University of California (UC), the California State University 
            (CSU), and the California Community Colleges (CCC), to be 
            administered by the Intersegmental Committee of the Academic 
            Senates of the UC, CSU, and CCC.

          2)Requires the COERC to:

             a)   Develop a list of the 50 most widely taken lower 
               division courses across the three segments.

             b)   Create and administer a review and approval process for 
               open source materials.

             c)   Promote strategies for production, access, and use of 
               open source materials.

             d)   Require publishers of textbooks used in the 50 courses, 
               as a condition of purchasing those books by a UC, CSU, or 
               CCC campus bookstore, to provide at least three copies, at 
               no cost, for placement on reserve at the campus library.

             e)   Establish a competitive request for proposal process 
               whereby faculty, publishers, and other interested parties 








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               may apply for funds to produce, in 2013, the 50 open source 
               textbooks and related materials, meeting specified 
               requirements and be submitted to the California Open Source 
               Digital Library.

          3)Requires the Council to submit a progress report on 
            implementing all of the above by July 1, 2014 and a final 
            report by January 1, 2016.

          4)States that all of the above is operative only if sufficient 
            funding is provided in the Budget Act, another statute, and/or 
            through federal or private funds.

          5)Finds that a $25 million state-led investment in OER can 
            provide students with textbooks and related materials for free 
            online or for about $20 per hardcopy.

           FISCAL EFFECT  

          1)Staff will be needed for several years to support the Council 
            in fulfilling its responsibilities. Assuming at least one 
            professional and one support position, plus travel and meeting 
            expenses for Council members, annual costs of about $200,000 
            plus around $250,000 in faculty release time for Council 
            members.

          2)Development costs for the 50 open source textbooks are 
            unknown, but will constitute the majority of the anticipated 
            $25 million cost of implementing this bill.

          3)Costs to process, catalog, and manage the circulation of three 
            copies of the textbooks for the 50 courses at campus libraries 
            would about $200,000 in the first year and $30,000 per year 
            thereafter.

          4)Campus bookstores will incur staff costs to verify publisher's 
            compliance with the reserve book requirement prior to ordering 
            a textbook for one of the 50 most-widely taken courses. 
            Statewide this cost could total several hundred thousand 
            dollars annually.

          5)To the extent that students were previously purchasing 
            textbooks for the 50 courses from sales tax-generating 
            businesses, widespread use of this open source option will 
            significantly reduce this revenue. There will likewise be a 








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            substantial revenue loss to campus bookstores, which often 
            support other campus activities.

          6)To the extent a significant reduction in textbook costs for 
            lower division students makes college more affordable, some 
            students, particularly at the community colleges, might be 
            able to take a greater unit load per semester, thus reducing 
            the time necessary to complete their education, to the benefit 
            of the student, the institution, and the state.

           COMMENTS  

           1)Purpose  . According to the author, the cost of textbooks 
            represents a significant burden to students and families, 
            citing a recent CSU report estimating that CSU students pay 
            approximately $1,000 per year for textbooks. The author also 
            notes a finding by the CCC Academic Senate that the cost of 
            educational materials has become a "visible barrier to college 
            attendance for many students." This bill attempts to address 
            those costs for the 50 most common lower division courses by 
            enabling instructional materials for those courses to be 
            available through Open Education Resources.

           2)Open Education Resources  (OERs) are educational materials such 
            as textbooks, research articles, videos, assessments, or 
            simulations that are either licensed under an open copyright 
            license or are in the public domain. OERs provide no-cost 
            access and no-cost permission to revise, reuse, remix, or 
            redistribute the materials. According to a policy brief by the 
            Center for American Progress and EDUCAUSE, digital OERs offer 
            many advantages over traditional textbooks, by allowing 
            students and faculty to access textbooks and related materials 
            for free online or to purchase hardcopies that are more 
            affordable than traditional textbooks, enabling faculty to 
            customize learning materials to suit their course objectives, 
            and providing students with a more flexible set of tools that 
            can contribute to a richer learning experience.


           3)Related Legislation  . SB 1053 (Steinberg), also on today's 
            committee agenda, establishes the California Digital Open 
            Source Library, for the purpose of housing the open source 
            materials created through SB 1052.  SB 1053 only becomes 
            operative if SB 1052 is enacted.









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           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081