BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                       AB 798

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          798 (Bonilla)

          As Amended  June 2, 2015

          Majority vote

          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |Higher          |12-1  |Medina, Baker,       |Harper               |
          |Education       |      |Bloom, Chávez,       |                     |
          |                |      |Irwin, Jones-Sawyer, |                     |
          |                |      |Levine, Linder, Low, |                     |
          |                |      |Santiago, Weber,     |                     |
          |                |      |Williams             |                     |
          |                |      |                     |                     |
          |Appropriations  |17-0  |Gomez, Bigelow,      |                     |
          |                |      |Bonta, Calderon,     |                     |
          |                |      |Chang, Daly, Eggman, |                     |
          |                |      |Gallagher,           |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Jones, Quirk,        |                     |
          |                |      |Rendon, Wagner,      |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |


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          SUMMARY:  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 of  
          California (UC).  Specifically, this bill:

          1)Establishes the Open Educational Resources (OER) Adoption  
            Incentive Fund to provide incentives and rewards for campus and  
            faculty efforts to accelerate use of OER 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, OER curation activities, and  
            technology support for faculty.

          3)Stipulates that the acceleration initiative (to use more OER)  
            shall use, in addition to any other appropriate resources, those  
            identified, housed, produced, and otherwise found appropriate  
            pursuant to the California OER Council and the California  
            Digital Open Sources Library. 

          4)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  

          5)Requires the respective segment offices to review, approve, and  
            administer the grants.


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          6)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  

          7)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.

          8)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.

          9)Specifies that moneys, or a portion of moneys, appropriated, as  
            specified, shall not be encumbered unless at least 100% of that  
            amount encumbered is matched by private funds; that moneys  
            appropriated, as specified, that are not matched by private  
            funds shall revert to the Golden State Scholarshare Trust for  
            purposes of the Governor's Scholarship Programs; and, moneys  
            appropriated, as specified, shall not require a match by private  

          EXISTING LAW:  

          1)Requires the CSU Trustees and the CCC Board of Governors, and  
            requests the UC Regents to work with the academic senates to  
            encourage faculty to give consideration to the least costly  
            practices in assigning textbooks; to encourage faculty to  
            disclose to students how new editions of textbooks are different  
            from previous editions; and, the cost to students for textbooks  


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            selected, among other things.  Current law also urges textbook  
            publishers to provide information to faculty when they are  
            considering what textbooks to order, and to post information on  
            the publishers' Web sites, including "an explanation of how the  
            newest edition is different from previous editions."  Publishers  
            are also asked to disclose to faculty the length of time they  
            intend to produce the current edition and provide faculty free  
            copies of each textbook selected (Education Code (EC) Section  
          2)Creates the College Textbook Transparency Act, which, among  
            other things, requires faculty members and academic departments  
            at an institution of higher education to consider cost in the  
            adoption of textbooks; and, requires textbook publishers to  
            disclose specified information (EC Section 66406.7).

          3)Establishes the California Digital Open Source Library as  
            administered by the CSU, in coordination with the CCC, for the  
            purpose of housing open source materials while providing an  
            Internet Web-based way for students, faculty, and staff to  
            easily find, adopt, utilize, or modify course materials for  
            little or no cost.  Specifies that the CSU shall also act in  
            coordination with the UC in administering the California Digital  
            Open Source Library (EC 66408).

          4)Establishes the California OER Council, composed of faculty  
            leaders from the three segments of public postsecondary  
            education (CCC, CSU, and UC), and shall be administered by the  
            Intersegmental Committee of the Academic Senates of the three  
            segments of public postsecondary education, or a successor  
            group.  Stipulates that the Council shall be responsible for the  
            development of a list of 50 strategically selected lower  
            division courses in the public postsecondary segments for which  
            high-quality, affordable, digital open source textbooks and  
            related materials shall be developed or acquired (EC 66409).

          5)Requires, by January 1, 2020, publishers of textbooks used at  


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            the UC, CSU, and the CCC, or private postsecondary educational  
            institutions, to the extent practicable, to make textbooks  
            available in whole or in part for sale in an electronic format  
            and requires the electronic format to contain the same content  
            as the printed version (EC Section 66410).    

          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, approximately $4 million in previously appropriated  
          funds that remain available for implementation of SB 1052  
          (Steinberg), Chapter 621, Statutes of 2012 and SB 1053  
          (Steinberg), Chapter 622, Statutes of 2012, would be available for  
          the purposes of this bill, including the OER Council's  
          administrative costs.

          COMMENTS:  Background.  According to the College Board, the  
          average undergraduate student should budget between $1,200 and  
          $1,300 for textbooks and supplies each year.  That figure is as  
          much as 40% of tuition at a two-year community college and 13% at  
          a four-year public institution.  According to the Student Public  
          Interest Research Groups (Student PIRGs), February 2015 report,  
          entitled "Open Textbooks:  The Billion-Dollar Solution," since  
          1978, college textbook costs have increased to 812%, that is to  
          say, it means that textbook prices have increased at 3.2 times the  
          rate of inflation.  A 2014 Student PIRG study 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.

          What are OER?  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  


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          EDUCAUSE, digital OERs offer many advantages over traditional  
          textbooks:  they allow students and faculty to access textbooks  
          and related materials for free online or purchase hardcopies that  
          are more affordable than traditional textbooks; they enable  
          faculty to customize learning materials to suit their course  
          objectives; and, they can provide students with a more flexible  
          set of tools that can contribute to a richer learning experience.

          SB 1052 of 2012, established the California OER Council, 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.

          California OER Council.   The California OER Council reports that  
          it has thus far selected the 50 courses, identified more than 150  
          appropriate OERs for said courses, developed a standardized peer  
          review and approval process, and recruited faculty to conduct the  
          reviews.  As of March 2015, the California OER Council reports  
          that reviews are completed for 10 courses, involving 34 OER  

          Analysis Prepared by:                                               
                          Jeanice Warden / HIGHER ED. / (916) 319-3960  FN:  


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