BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:  April 12, 2016


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          AB 2214  
          (Harper) - As Amended March 28, 2016


          SUBJECT:  Public postsecondary education:  faculty royalty  
          income disclosure


          SUMMARY:  Amends the College Textbook Transparency Act; and,  
          requires the California State University (CSU) Trustees and the  
          governing board of each California Community College (CCC)  
          district, and requests the University of California (UC) Regents  
          to require its faculty members to annually disclose, on or  
          before April 15, 2017, and on or before April 15 of each year  
          thereafter, all of the income he or she received in the  
          immediately preceding calendar year from a publisher,  
          periodical, or provider of online content for royalties,  
          advances, consulting services, or for any other purpose.   
          Specifically, this bill:  


          1)Specifies that an adopter at an institution of higher  
            education shall not demand or receive anything of value,  
            including the donation of equipment or goods, any payment,  
            loan, advance, or deposit of money, present or promised, for  
            adopting specific course materials required for coursework or  
            instruction, except that an employee may receive royalties or  
            other compensation from sales of course materials that include  
            the instructor's writing or other work; and, specifies that  
            receipt of these royalties or compensation is subject to the  








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            employer's standing policies or collective bargaining  
            agreements relating to employee conflicts of interest and,  
            with respect to faculty members of the CSU and the CCC, as  
            specified.


          2)Requires the CSU Trustees and the governing board of each CCC  
            district, and requests the UC Regents to require its faculty  
            members to annually disclose, on or before April 15, 2017, and  
            on or before April 15 of each year thereafter, on a form and  
            in a manner to be determined by the Trustees, the governing  
            board, or the Regents, as appropriate, all of the income he or  
            she received in the immediately preceding calendar year from a  
            publisher, periodical, or provider of online content for  
            royalties, advances, consulting services, or for any other  
            purpose.


          3)Specifies that a faculty member, as applicable shall file a  
            form even if he or she has no disclosable income in the  
            calendar year; and that a faculty member shall file the form  
            required under penalty of perjury.


          4)Requires the Trustees, community college district governing  
            boards, and Regents to ensure that the information provided by  
            the faculty members, as specified, is available to the public  
            on the Internet Web site of the institution at which the  
            faculty members teach; and specifies that the information  
            provided by an individual faculty member shall remain  
            available on the Internet Web site for as long as that  
            individual is employed as a teacher at that institution.


          5)Stipulates that the Trustees, community college district  
            governing board, and the Regents, as appropriate, may require,  
            with proper notice and an opportunity for a hearing, a faculty  
            member who does not file the information required, as  
            specified, in a timely manner to pay an administrative fine of  








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            up to $50.


          6)Specifies that the proceeds of any administrative fines shall  
            be collected by the Trustees or by a community college  
            district governing board, as appropriate, and shall be  
            deposited in a fund for allocation, as specified.


          7)Requires the Trustees to deposit the proceeds of  
            administrative fines collected into the California State  
            University Faculty Royalty Disclosure Fund (CSUFRDF), as  
            established. 
          8)Specifies that the monies in the CSUFRDF are continuously  
            appropriated to the Trustees for allocation for expenditure  
            for general educational purposes at the campus at which the  
            faculty member who was assessed the fine is employed.


          9)Authorizes the governing board of a community college district  
            to expend the proceeds of any administrative fines collected,  
            as specified, for general educational purposes at the campus  
            at which the faculty member who was assessed the fine is  
            employed.



          10)Requests the Regents to allocate the proceeds of any  
            administrative fines collected, as specified, in a manner  
            similar to that of number five above.
          EXISTING LAW:  Establishes the College Textbook Transparency  
          Act, which, among others, requires publishers and bookstores  
          offering textbooks for sale to public colleges and universities  
          to disclose specified information and requires faculty and other  
          employees of public higher education to follow specified  
          practices in the adoption and purchase of textbooks, including,  
          but not limited to the following: 










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          1)Consider the cost in the adoption of textbooks; 


          2)When adopting, an adopter institution of higher education  
            shall not demand or receive anything of value, including the  
            donation of equipment or goods, any payment, loan, advance, or  
            deposit of money, present or promised, for adopting specific  
            course materials required for coursework or instruction,  
            except that an employee may receive any of the following: 


             a)   Complimentary copies, review course materials, or  
               instructor copies. The adopters shall not sell instructor  
               copies;


             b)   Royalties or other compensation from sales of course  
               materials that include the instructor's writing or other  
               work. Receipt of these royalties or compensation is subject  
               to the employer's standing policies or collective  
               bargaining agreements relating to employee conflicts of  
               interest;


             c)   Honoraria for academic peer review of course materials.  
               Receipt of honoraria is subject to the employer's standing  
               policies relating to employee conflicts of interest; and,


             d)   Training in the use of course materials and course  
               technologies. Payment for travel and lodging and or meals  
               shall be subject to the employer's standing polices  
               relating to employee conflicts of interest and  
               compensation.


          3)A publisher or campus bookstore shall not solicit faculty for  
            the purpose of the sale of instructor copies or complimentary  
            teachers editions of textbooks that have been provided by a  








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            publisher at no charge to a faculty member or other employee;  
            and,


          4)Any self-published textbook by an instructor for use with that  
            instructor's class shall be exempt, if the instructor  
            discloses the publishing and use of those materials to his or  
            her employer institution (Education Code Section 66406.7).


          5)Requires, as of January 1, 2020, any person, firm or  
            corporation that publishes textbooks offered for sale at the  
            UC, CSU, CCC or a private college or university to make the  
            textbooks available for sale in an electronic format (EC  
            Section 66410).



          FISCAL EFFECT:  Unknown


          COMMENTS:  Background.  Textbook publishers are required to  
          contain the cost of postsecondary instructional materials by  
          doing a number of things including giving students the option of  
          buying books without additional "bundled" materials and  
          providing  specified information to faculty on the books and  
          other materials that they sell, including both bundled and  
          unbundled options, and the net price of each product.  


          Additionally, the CSU Trustees and the CCC Board of Governors  
          are required, and the UC Regents requested, to continue to work  
          with their academic senates to encourage faculty to consider  
          cost when assigning textbooks, disclose cost and related  
          information to students, and work with publishers to deliver  
          cost savings to students.


          Need for the measure.  According to the author, "Many professors  








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          require students to buy the book they author, whether or not it  
          is the more cost efficient or most to-date version."  The author  
          contends that, "Students deserve to have more transparency  
          within the school system to ensure that costs are as low as  
          possible."  


          Additionally, the author argues that, depending on longevity and  
          previous sales numbers, authors usually receive around 11-15  
          percent of a book's sales; for a book that costs $181.50, the  
          author(s) would make roughly $25 per sold copy and for a class  
          of 30 students a professor could potentially earn $750 per class  
          and for a larger class size of 125 students, a professor could  
          make $3,125 per class.  


          This measure requires the CSU and CCC, and requests the UC, to  
          have their faculty members annually disclose all of their income  
          received, in the preceding year, from royalties, advances and  
          consulting services; and, published said information on the  
          institution's Internet Web sites.


          Policy considerations.  As presently drafted, this measure  
          requires the CSU Trustees and community college district  
          governing boards, and requests the UC Regents to ensure that  
          faculty disclosure information shall remain available on the  
          Internet Web site for as long as that faculty member is employed  
          at that institution.


          Many faculty remain within their campus or system for many  
          years; potentially, that could lead to many disclosure forms for  
          each faculty member being added to the Internet Web sites every  
          year.  It is unclear as to whether or not the CSU and CCC or  
          even UC, have the storage capacity to post faculty disclosure  
          forms for the entire span of each faculty members' employment.










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          Moving forward, the author may wish to consider only requiring  
          and requesting, as specified, the posting of faculty disclosure  
          forms to simply cover the most recent past year and current year  
          during the duration of a faculty member's employment; or, simply  
          just posting said information only when a faculty member has  
          something to report.


          As presently drafted, this measure allows the CSU Trustees,  
          community college district governing boards, and UC Regents, to  
          determine what type of form and manner faculty shall use when  
          reporting, all of the income he or she received in the  
          immediately preceding calendar year from a publisher,  
          periodical, or provider of online content for royalties,  
          advances, consulting services, or for any other purpose. 


          According to the CSU, the system currently utilizes a form that  
          may be able to capture what this measure seeks.  However, CSU  
          employees presently are to complete said form more frequently  
          then this measure calls.  To note, if the CSU determines it will  
          need to create a new form, Committee staff understands that it  
          will have to be collectively bargained.


          Moving forward, the author may wish to work directly with the  
          CSU in order to ensure the existing CSU form is feasible in  
          order to implement this measure.


          Related legislation.  AB 1582 (Allen and Harper), which is  
          awaiting a hearing in the Assembly Elections and Redistricting  
          Committee and this Committee, would, among others, require  
          public postsecondary educational institutions to disclose items  
          of value they receive as a result of adopting specific course  
          materials.


          Previous legislation.  AB 1548 (Solorio), Chapter 574, Statutes  








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          of 2007, which created the College Textbook Transparency Act,  
          requires faculty and other textbook adopters to follow specified  
          practices in the adoption and purchase of textbooks.



          SB 386 (Runner) of 2009, which was held on the Senate  
          Appropriations Committee Suspense File, would have required  
          faculty members at community colleges and the CSU, and requested  
          the UC, to prepare a justification for any adoption of a new  
          edition of a textbook within three years after the adoption of a  
          previous edition of that textbook.  The justification would have  
          been required to include a disclosure of any financial interest  
          of the faculty member related to requiring students to purchase  
          the new edition of the textbook.  
          REGISTERED SUPPORT / OPPOSITION:




          Support


          Howard Jarvis Taxpayers Association 




          Opposition


          California Federation of Teachers




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









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