BILL ANALYSIS                                                                                                                                                                                                    Ó






                            SENATE COMMITTEE ON EDUCATION
                                Alan Lowenthal, Chair
                              2011-2012 Regular Session
                                          

          BILL NO:       SB 1539
          AUTHOR:        Corbett
          INTRODUCED:    February 24, 2012
          FISCAL COMM:   No             HEARING DATE: April 25, 2012
          URGENCY:       No             CONSULTANT:   Lynn Lorber

           SUBJECT  :  Postsecondary education: textbook information.
          
           SUMMARY
           
          This bill requires textbook publishers to provide to faculty at 
          the commencement of sales interactions specific information 
          about all products the publisher sells in the subject area.

           BACKGROUND
           
          The federal Higher Education Opportunity Act (HEOA) requires 
          publishers (when providing information to faculty or others who 
          select course materials at an institution of higher education 
          receiving federal financial assistance) to include in writing:

          1)   The price at which the publisher would make the textbook or 
               supplemental material available to the campus bookstore 
               and, if available, the price at which the material is 
               available to the public.

          2)   The copyright dates of the three previous editions.

          3)   A description of the substantial content revisions made 
               between the current edition and the previous edition.

          4)   Whether the textbook or supplemental material is available 
               in any other format, including paperback and unbound.

          The federal HEOA requires each institution of higher education 
          to:

          1)   Disclose in the institution's Internet course schedule, for 
               each course listed, the International Standard Book Number 
               (ISBN) and retail price of required and recommended college 
               textbooks and supplemental materials.







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          2)   Make available to a college bookstore the most accurate 
               information available regarding the course schedule and for 
               each course offered the ISBN, retail price, number of 
               students enrolled in the course, and the maximum student 
               enrollment for the course.  (United States Code, Title 20, 
               Chapter 28, Section 1015(b))



          The College Textbook Transparency Act requires, beginning 
          January 1, 2010: 

          1)   Textbook publishers to print on the cover or within each 
               textbook a summary of the substantive content differences 
               between the new and prior editions, and the copyright date 
               of the previous edition.

          2)   Each campus bookstore at any public college or university 
               to post in its store or on its website a disclosure of its 
               retail pricing policy on new and used textbooks. 

          3)   Each public college or university to encourage personnel 
               responsible for selecting course materials (typically 
               faculty) to place their orders with sufficient lead time to 
               enable the bookstore to confirm the availability of the 
               requested materials.  (Education Code § 66406.7)

          Current law requires:

          1)   The CSU and CCC, and encourages the UC, to work with the 
               academic senates of each segment to encourage faculty to 
               give consideration to the least costly practices in 
               assigning textbooks and to work with publishers and college 
               bookstores.

          2)   College bookstores to work with the academic senates of 
               each campus to review the process and timelines involved in 
               ordering and stocking textbooks and to create bundles and 
               packages of instructional materials that are economically 
               sound.

          3)   Urges textbook publishers to provide specific information 
               to faculty and post that information on the company's 








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               website, give preference to supplements rather than 
               producing a new edition and disclose the length of time the 
               current edition is intended to be in production.  (EC § 
               66406)

          4)   Requires textbook publishers, by January 1, 2020, to make 
               the textbooks available, in whole or in part, for sale in 
               an electronic format.  The electronic version of any 
               textbook must contain the same content as the printed 
               version and may be copy-protected.  (EC § 66410)

           ANALYSIS
           
          This bill requires textbook publishers to provide to faculty at 
          the commencement of sales interactions specific information 
          about all products the publisher sells in the subject area.  
          Specifically, this bill:

          1)   Requires textbook publishers to provide to a prospective 
               purchaser of the textbook with all of the following:

                    a)             A list of all the products offered for 
                    sale by the publisher germane to the prospective 
                    purchaser's subject area of interest.


                    b)             The wholesale or retail price of the 
                    product, and the estimated length of time the 
                    publisher intends to keep the product on the market.

                    c)             For each new edition, a list of the 
                    substantial content differences or changes between the 
                    new edition and the previous edition of the textbook.

          2)   Requires publishers to make the information available to a 
               prospective purchaser at the commencement of a sales 
               interaction, including but not limited to, a sales 
               interaction conducted in person, by telephone or 
               electronically.

          3)   Requires publishers to post the information on their 
               websites.

          4)   Defines the following:








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                    a)             "Product" means each version of a 
                    textbook, or set of textbooks, in a particular subject 
                    area, including supplementals whether or not the 
                    supplementals are sold separately or together with a 
                    textbook.

                    b)             "Publisher" has the same meaning as in 
                    the College Textbook Transparency Act, which is any 
                    publishing house, publishing firm, or publishing 
                    company that publishes textbooks or other course 
                    materials, specifically designed for postsecondary 
                    instruction.

                    c)             "Purchaser" means a faculty member of a 
                    public or private postsecondary education institution 
                    who selects the textbooks assigned to students.

                    d)             "Textbook" has the same meaning as in 
                    the College Textbook Transparency Act, which is any 
                    book that contains printed material and is intended 
                    for use as a source of study material for a class or 
                    group of students, a copy of which is expected to be 
                    available for the use of each of the students in that 
                    class or group.  "Textbook" does not include a novel.

           STAFF COMMENTS
           
           1)   Need for the bill  .  According to the author, "Increases in 
               textbook prices have outpaced median household income.  
               Textbook prices have steadily increased over the last four 
               years, at four times the rate of inflation.  According to a 
               Bureau of State Audits report, on average, publishers 
               release a new or revised edition every three or four years, 
               with each one costing 12% more than the last.  The report 
               also found that faculty often fail to consider the cost of 
               textbooks when making course selection.  By having textbook 
               pricing information automatically available at the start of 
               a transaction, faculty would be able to make an informed 
               decision on what to purchase by comparing product prices 
               and differences in content."

           2)   Some duplication  .  Current law already requires publishers 
               to give to faculty (at both public and private 








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               universities) information about differences from prior 
               editions, and the price the textbook will be offered to the 
               campus bookstore and to the public.  Publishers are not 
               required to disclose the estimated length of time 
                
                
               the product will be on the market, but publishers are 
               already required to disclose to faculty the copyright dates 
               of the three previous editions.

               This bill essentially restates federal law with respect to 
               publishers providing specific information about textbooks, 
               and adds requirements that publishers provide to faculty a 
               list of the all products and the anticipated length the 
               product will be on the market.  This bill also requires 
               publishers to list information about textbooks on their 
               websites.  

           3)   List of all products  .  This bill requires publishers to 
               disclose to faculty all products offered for sale that are 
               germane to the faculty's subject area of interest.  This 
               bill defines "product" to include each version of a 
               textbook or set of textbooks, including a supplemental item 
               whether or not the supplemental item is sold separately or 
               together with a textbook.  Instructional materials may be 
               offered in formats other than print.  Current law requires 
               publishers to disclose to faculty if textbooks are 
               available in other formats, such as paperback or unbound, 
               but is silent about digital formats.  Staff recommends an 
               amendment to add to the definition of "product" a reference 
               to digital formats, thereby clarifying that publishers must 
               disclose to faculty all types and formats of available 
               products.

           4)   Time on the market  .  This bill requires publishers to 
               provide to faculty the estimated length of time the 
               publisher intends to keep the product on the market.  
               Publishers may not have a planned schedule for prospective 
               editions.  Current law requires publishers to provide to 
               faculty the copyright dates of the three previous editions 
               of textbooks, so it's possible for a publisher or faculty 
               to identify if there is a pattern for the introduction of 
               new editions.









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           5)   Wholesale or retail price  .  This bill requires publishers 
               to provide to faculty the wholesale or retail price of the 
               product.  It is necessary to make the distinction of 
               wholesale or retail (rather than wholesale and retail) due 
               to concerns about putting publishers at a competitive 
               disadvantage when releasing wholesale pricing information.  


           6)   Federal report due in 2013  .  The federal Higher Education 
               Opportunity Act requires the Comptroller General of the 
               United States to report, by July 1, 2013, on the 
               implementation of the requirements imposed upon 
               institutions of higher education, college bookstores and 
               publishers, and particularly examine:

               a)        The availability of college textbook information 
                    on course schedules.

               b)        The provision of pricing information to faculty 
                    by publishers.

               c)        The use of bundled and unbundled material.

               d)        The implementation of the HEOA by institutions of 
                    higher education, including the costs and benefits to 
                    such institutions and to students.

           7)   Related legislation  .  SB 1154 (Walters) is similar to this 
               bill regarding the disclosure of available digital formats. 
                SB 1154 is specific to K-12 instructional materials and is 
               scheduled to be heard by this Committee on April 25, 2012.

          AB 2471 (Lara) requires the Trustees of the California State 
               University and the governing board of the California 
               Community Colleges, and urges the Regents of the University 
               of California and the governing body of each private 
               postsecondary educational institution that offers a 
               baccalaureate degree to adopt policies to prohibit the 
               assignment of an e-textbook unless that e-textbook complies 
               with various provisions.  AB 2471 is pending in the 
               Assembly Appropriations Committee.

          SB 1328 (De Leon) requires a publisher that supplies textbooks 
               or other instructional material to a postsecondary 








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               institution or faculty to provide specific information 
               about that textbook or material using a standard XML or 
               comma-delimited format, or both, and requires publishers to 
               submit the data to the Multimedia Educational Resource for 
               Learning and Online Teaching program.  SB 1328 is pending 
               in the Senate Appropriations Committee.

          SB 1052 (Steinberg) establishes the California Open Education 
               Resources Council for the purpose of reducing textbook 
               costs for the 50 most widely taken lower division courses.  
               SB 1052 is pending in the Senate Appropriations Committee.

          SB 1053 (Steinberg) establishes the California Open Source 
               Digital Library for the purpose of housing open source 
               materials.

           8)   Prior legislation  .  SB 832 (Corbett, 2007) was nearly 
               identical to this bill.  SB 832 was vetoed by the Governor, 
               whose veto message read:

                    I am supportive of efforts to address the cost of 
                    college textbooks and share the concern that these 
                    education costs have an impact on the 
                    affordability of college for many students.  
                    However, this bill focuses strictly on textbook 
                    publisher policies and fails to recognize that the 
                    affordability of textbooks is a shared 
                    responsibility among publishers, college 
                    bookstores, and faculty members.

                    Therefore, instead of this bill, I am signing 
                    Assembly Bill 1548.  Many of the same concepts in 
                    SB 832 are included in AB 1548, but AB 1548 
                    recognizes the shared responsibility and attempts 
                    to address the issue in a more comprehensive 
                    manner.

           SUPPORT
           
          Associated Students of the University of California, Davis
          California Community Colleges Chancellor's Office
          California Faculty Association
          CALPIRG
          Community College League








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          Faculty Association of California Community Colleges
          Kern Community College District
          Los Rios Community College District
          Rio Hondo Community College District
          San Diego Community College District
          University of California
          West Kern Community College District

           OPPOSITION

          Association of American Publishers