BILL ANALYSIS                                                                                                                                                                                                    

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          (Without Reference to File)


          798 (Bonilla)

          As Amended  September 9, 2015

          Majority vote

          |ASSEMBLY:  | 78-0 | (June 4,      |SENATE: |      | (September 11,  |
          |           |      |2015)          |        |      |2015)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
                                               (vote not available)

          Original Committee Reference:  HIGHER ED.

          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), and the California State University (CSU). 

          The Senate amendments:


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          1)Specify that the California Digital Open Source Library, as  
            specified, shall also be known as the California Open Online  
            Library for Education (COOL4Ed)

          2)Specify that the Open Educational Resources (OER) Adoption  
            Incentive Program is established to carry out the purpose of  
            this measure; and, unless context otherwise requires,  
            "program," as specified, means the OER Adoption Incentive  

          3)Specify monies appropriated, as specified for the program,  
            shall be used by CCC and CSU campuses to further the purposes  
            of the College Textbook Affordability Act, as established by  
            this measure, including any of the following purposes:

             a)   Faculty professional development (PD), which shall  
               include learning about COOL4Ed; and, faculty who  
               participate in this PD shall be reimbursed in accordance  
               with their campus' approved plan, as specified;

             b)   Professional development for staff whose work supports  
               providing students with OER;

             c)   Open educational resource curation activities.  All new  
               OER developed and available that are adopted as course  
               material pursuant to this program shall be added to the  
               established COOL4Ed;

             d)   Curriculum modification and requisite release time for  
               faculty in accordance with a campus' approved plan, as  
               specified, related to the adoption of OER as course  
               materials; and,


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             e)   Technology support for faculty, students, and staff  
               whose work furthers the goals specified in a campus'  
               approved plan.

          4)Specify monies appropriated, as specified for the program,  
            shall not be used for direct compensation for faculty members  
            who adopt OER, except as provided to compensate for PD, as  
            specified, or for purchasing new equipment.

          5)Clarify that a Creative Commons license is a viable example of  
            an OER property license.

          6)Specify that in order to participate in the program, the local  
            academic senate of a campus of the CCC or CSU shall do both of  
            the following:

             a)   Adopt a local campus resolution to increase student  
               access to high-quality OER and reduce the cost of textbooks  
               and supplies for students in course sections for which OER  
               are to be adopted to accomplish cost savings for students;  

             b)   Approve a plan, in collaboration with students and  
               campus administration, that describes evidence of the  
               faculty's commitment and readiness to effectively use grant  
               funds to support faculty adoption of OER.

          7)Specify that the California OER Council may provide a model  
            plan to campuses.

          8)Specify a variety of details the plan shall include; and, that  
            faculty, at their discretion, may choose courses that are to  
            adopt OER under the plan.


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          9)Delete specified benchmarks the plans must outline.

          10)Specify the academic senate of a local campus of the CCC or  
            CSU may submit the resolution and plan developed, as  
            specified, to the California OER Council as its application  
            for an initial grant no later than June 30, 2016.

          11)Specify the California OER Council shall make an initial  
            grant to a campus within 60 days of the Council's receipt of  
            the campus' application if the campus has satisfied the  
            requirements, as specified.

          12)Specify that the California OER Council may award up to 100  
            initial grants.

          13)Clarify that if the total amount requested in applications  
            received is equal to or less than two million dollars, the  
            California OER Council shall make grants for each approved  
            application equal to the amount requested in the application;  
            and, if the total amount requested in applications received  
            exceeds $2 million, the California OER Council shall make  
            grants for the full amount requested in approved applications  
            on a competitive basis based on the strength of evidence  
            provided of faculty commitment to the adoption of OER.

          14)Specify each application approved by the California OER  
            Council shall be submitted by the Council to the CSU  
            Chancellor no later than 30 days after the Council approves  
            the application; and, the Chancellor shall award grants to  
            recipients, as specified.

          15)Specify that administrative support may be provided to the  
            Council by COOL4Ed to help the Council carry out its duties.

          16)Delete the $10,000 cap on an initial grant awards and bonus  


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            grants for up to three years if specified benchmarks are  

          17)Specify that no later than June 30, 2018, a campus may apply  
            for a bonus grant equal to the amount of its initial grant.   
            The application shall include evidence that the campus has met  
            or exceeded total cost savings of greater than 30% for the  
            required number of course sections specified in the approved  
            plan for the campus' initial grant in the 2017-18 academic  

          18)Specify that a campus may also compute the total cost savings  
            for each course section and include that figure in its  
            application for a bonus grant. 

          19)Specify that the total cost savings for each course section  
            shall be the number of students enrolled in a course section  
            multiplied by the per-student decrease in the costs of books  
            and supplies for the course in the term resulting from the  
            adoption of OER.

          20)Specify the bonus grants shall be used to further the goals  
            of the campus' approved plan for its initial grant.

          21)Specify that if the total amount of requests in applications  
            for bonus grants exceeds the total amount of funds available,  
            the California OER Council shall award grants on a competitive  
            basis to approved applications for the full amount of the  
            initial grant based on the overall percentage savings achieved  
            by the initial plan in the courses covered by the plan.

          22)State the Legislature intends for the initial bonus grants to  
            provide the impetus for campuses to adopt, and continue to  
            use, OER as course materials.


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          23)Specify that the COOL4Ed, in consultation with the  
            Intersegmental Committee of Academic Senates, shall report to  
            the Legislature September 1 each year, as specified.

          24)Change the sunset of the program to September 1, 2020.

          25)Reappropriate, effective January 1, 2016, three million  
            dollars of the monies appropriated, as specified, to the CSU  
            Chancellor, without regard to fiscal years, for allocation for  
            the program.

          26)Clarify that monies allocated, as specified, or a portion of  
            monies appropriated, as specified, shall not be encumbered  
            unless at least 100% of that amount encumbered is matched by  
            private funds, and, if not matched by private funds, shall  
            revert to the Golden State Scholarshare Trust, for specified  

          27)Specify that of the unencumbered amount appropriated, as  
            specified, as of June 30, 2015:

             a)   Up to $200,000 may be used for administration of the  
               COOL4Ed to continue developing and updating its services,  
               as specified, until September 1, 2020; and,

             b)   Up to $27,000 may be used for stipends to members of the  
               California OER Council in order for the members to carry  
               out their duties in accordance with the program.

          28)Make minor clarifying and technical changes.

          EXISTING LAW:  


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          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 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  

          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 University of California (UC) in  
            administering the California Digital Open Source Library (EC  
            Section 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  


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            which high-quality, affordable, digital open source textbooks  
            and related materials shall be developed or acquired (EC  
            Section 66409).

          5)Requires, by January 1, 2020, publishers of textbooks used at  
            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 Senate Appropriations  
          Committee, the expansion of the use of previously appropriated  
          funds will allow expenditure of approximately $4 million in  
          unspent funds from the General Fund from the initial  

          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  


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          materials.  According to a 2012 policy brief by the Center for  
          American Progress and 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 (Steinberg), Chapter 621, Statutes 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: 0002383


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