BILL ANALYSIS Ó SB 1052 Page 1 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 SB 1052 Page 2 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 SB 1052 Page 3 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. SB 1052 Page 4 Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081