BILL ANALYSIS Ó AB 798 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 798 (Bonilla) - As Amended April 6, 2015 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|12 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill establishes, until July 1, 2020, a state grant program to incentivize increased adoption of open source educational resources at campuses of the California Community Colleges (CCC), the California State University (CSU), and the University AB 798 Page 2 of California (UC). Specifically, this bill: 1)Establishes the Open Educational Resources Adoption Incentive Fund to provide incentives and rewards for campus and faculty efforts to accelerate use of open educational resources in order to reduce students' cost and improve access to such materials. 2)Stipulates that moneys in the fund are to support faculty professional development, open educational resource curation activities, and technology support for faculty. 3)Authorizes campuses, upon adoption of a local resolution, to submit the resolution to their respective campus governing board for an initial grant to establish a strategy, as specified, for meeting the above goals. The strategy is to include three campus-determined benchmarks for each of the following three years. 4)Requires the respective segment offices to review, approve, and administer the grants. 5)Stipulates that after receiving the initial grant, the campuses shall receive bonus grants in each of the following three years if they meet the corresponding benchmarks for those years. The maximum amounts of the initial grant and bonus grants are unspecified. 6)Stipulates that the bonus grants are to be administered locally by the academic senate. in collaboration with the campus president, provost, or chief academic officer and the campus student body organization. AB 798 Page 3 7)Requires the Chancellors of the CCC and the CSU and the UC President to report annually whether the grants are increasing the rate of adoption of open source educational resources and decreasing students' textbook costs. FISCAL EFFECT: At least several million dollars would be needed for a viable, multi-year grant program available to the over 150 campuses in three systems. Moreover, depending on the number of campuses in each segment seeking grants, each of the systemwide offices would need a half- or full-time position, at $70,000 to $140,000 (General Fund) annually to establish and oversee the grant program. To the extent the program makes more OER resources available to more students, significant savings in textbook costs could accrue to students. COMMENTS: 1)Purpose. According to the author, in order to reduce costs for students and increase the rate of adoption of OER, faculty need support on their local campus to help learn about new technology available and to find the time to update their courses in order to use OER. The author states, "AB 798 provides the funding and incentive necessary to support professors when they choose to adopt OER. The College Textbook Affordability Act recognizes that this support will be different for every local campus depending on existing programs, makeup of student body and number of professors. Each local campus can create a plan that will specifically address the hurdles to OER on their local campus." 2)Background. According to the College Board, the average AB 798 Page 4 undergraduate student should budget between $1,200 and $1,300 for textbooks and supplies each year-roughly equivalent to annual CCC fees for a full-time student and 25% of tuition costs at CSU. A 2014 study by Public Interest Research Groups (Student PIRGs) found that 65% of students skipped buying or renting a textbook because it was too expensive, and 94% of those students felt that in so doing, there grade would suffer in a course. Additionally, almost half of the students said the cost of textbooks impacted how many course they were able to take. OER 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 2012 policy brief by the Center for American Progress and EDUCAUSE, digital OERs enable faculty to customize learning materials to suit their course objectives and can provide students with a more flexible set of tools that can contribute to a richer learning experience. 3)Prior Legislation. SB 1052 (Steinberg)/Chapter 621, Statutes of 2012, established the California Open Education Resources Council, composed of three faculty members each from UC, CSU, and the CCC, to develop a list of 50 lower division courses across the three segments for which high-quality, affordable digital open source textbooks and related material shall be developed or acquired, to create and administer a review and approval process for open source materials, and to establish a competitive request-for-proposal process in which faculty members, publishers, and other interested parties would apply for funds to produce 50 high-quality, affordable, digital open source textbooks and related materials. An appropriation of $5 million was provided for this effort, to be matched by nonstate funds. To date, only about $1 million has been matched. AB 798 Page 5 In its most recent progress report, the Council reports that it has thus far selected the 50 courses, identified more than 150 appropriate OERs for this courses, developed a standardized peer review and approval process, and recruited faculty to conduct the reviews. As of March 2015, the Council reports that reviews are completed for 10 courses, involving 34 OER textbooks. The review process is being coordinated for 40 additional courses and 120 additional reviews. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081