BILL ANALYSIS Ó AB 798 Page 1 ASSEMBLY THIRD READING AB 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 | | | | | | | | | | | | AB 798 Page 2 ------------------------------------------------------------------- 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 years. 5)Requires the respective segment offices to review, approve, and administer the grants. AB 798 Page 3 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 unspecified. 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 funds. 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 AB 798 Page 4 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 66406). 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 AB 798 Page 5 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 AB 798 Page 6 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 textbooks. Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0000888 AB 798 Page 7