BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 2214


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          Date of Hearing:  April 27, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


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


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:


          This bill requires disclosure of royalties received by faculty  
          for books and other published materials. Specifically, this  
          bill: 


          1)Requires the California State University (CSU) Trustees and  
            the governing board of each California Community College (CCC)  








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            district, and requests the University of California (UC)  
            Regents, to require every faculty member to annually disclose,  
            under penalty of perjury, all income he or she received in the  
            prior calendar year from a publisher, periodical, or provider  
            of online content for royalties, advances, consulting  
            services, or for any other purpose.


          2)Requires the information provided per (1) to be made available  
            on each institution's website for as long as each faculty  
            member is employed as a teacher at that institution.


          3)Authorizes the respective government boards to assess a $50  
            fine for noncompliance with (1) by any faculty member, with  
            the funds derived from such fines to be available for general  
            educational purposes at the respective campuses.


          FISCAL EFFECT:


          Significant costs at all three segments. One-time costs, to  
          develop a form and process for obtaining the required  
          information and associated information technology (IT) start-up  
          costs, will be at least a few hundred thousand dollars at each  
          segment. Ongoing costs to manage the disclosure process,  
          including incidents of noncompliance, and provide ongoing IT  
          support would be several hundred thousand dollars at each  
          segment. Due to the potential for perjury, there could be  
          additional costs associated with investigation and litigation. 


          The above cost would be offset to a relatively small extent by  
          fine revenue from noncompliance.


          COMMENTS:









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          1)Purpose. According to the author, "Many professors 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%  
            to 15% of a book's sales; for a book that costs $185, the  
            author would make roughly $25 per copy sold 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.





          2)Comment. Since the information to be obtained by any faculty  
            member is not specific to royalties received from their  
            authored work used solely at the institution where they teach  
            or for courses that they teach at that institution, it is  
            unclear how the information to be collected would provide  
            useful transparency as a means of ensuring, as the author  
            states, "that [textbook] costs are as low as possible."








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          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081