BILL ANALYSIS
AB 525
Page A
Date of Hearing: April 1, 2009
ASSEMBLY COMMITTEE ON EDUCATION
Julia Brownley, Chair
AB 525 (Anderson) - As Introduced: February 25, 2009
SUBJECT : Instructional materials: surplus or undistributed
obsolete
SUMMARY : Authorizes school districts to sell surplus or
obsolete instructional materials to any organization without an
agreement that the materials will be used solely for educational
purposes. Specifically, this bill : Repeals a provision
requiring an organization, agency, or institution that receives
obsolete instructional materials to certify that it agrees to
use the instructional materials for educational purposes and
that it agrees to make no charge of any kind to the persons to
whom the organization gives or lends the instructional
materials.
EXISTING LAW:
1)Establishes the Instructional Materials Fund in the State
Treasury as a means of annually funding the acquisition of
instructional materials as required by the California
Constitution.
2)Requires the State Board of Education (SBE) to adopt basic
instructional materials for use in kindergarten and grades one
to eight, inclusive consistent with the six and eight year
adoption cycles for all subject areas.
3)Authorizes the State Board of Education (SBE) and school
districts to dispose of surplus or undistributed obsolete
instructional materials that are usable for educational
purposes, to specified entities, including by sale to any
organization that agrees to use the materials solely for
educational purposes and to make no charge of any kind to the
persons to whom the organization gives or lends the materials.
FISCAL EFFECT : Unknown
COMMENTS : Current law requires the SBE to adopt Kindergarten to
grade 8, inclusive, (K-8) basic instructional materials in
language arts, mathematics, science, social science, and
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bilingual or bicultural subjects not less than two times every
six years, and not less than two times every eight years in any
other subject for which the SBE determines the adoption of
instructional materials to be necessary or desirable. There has
been at least one adoption of instructional materials every year
since 2005. Current law requires local governing boards to
provide pupils with standards-aligned textbooks or basic
instructional materials no later than 24 months<1> after those
materials have been adopted by the SBE, hence districts
practically have had to purchase materials every year for the
last number of years.
The state spends a considerable amount of resources in providing
instructional materials. The 2008-09 revised budget provides
$353,367 for instructional materials, a slightly lower amount
than what has been allocated in previous years. The resources
coupled with the frequent adoptions and requirements for
districts to purchase new instructional materials, assures that
there is and will continue to be a steady abundance of used,
surplus, and obsolete instructional materials. Nevertheless,
districts have limited options for the disposal of such
materials.
Some school districts dispose of used obsolete instructional
materials by donating them to non-profit entities that, in turn,
pass the books on to others such as individuals, home schooling
groups or overseas organizations. Districts may also donate
them to libraries, children or adults for the purpose of
increasing the general literacy of people or districts may sell
them to an organization that agrees to use the materials solely
for educational purposes and that will not charge for those
materials. This bill does not limit the ability of school
districts to donate their surplus or obsolete materials directly
to any other party or for any other use currently allowed.
Other school districts dispose of the materials as a combination
of solid waste disposal and recycling and others pay for storage
of these materials.
Prior legislative attempts to change the existing restrictions
in the disposal of surplus or obsolete materials have been
unsuccessful. Two bills that sought to allow the sale of
---------------------------
<1> The enactment of SB 4 X3 (Ducheny), Chapter 12, Statutes of
2009, the education budget trailer bill, provides districts some
flexibility on the 24-month purchasing requirement until July 1,
2010.
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materials to organizations that would then sell them for a
profit were held in different Committees along the legislative
process. The opponents of such legislation argued that it would
not be appropriate to allow for profit organizations to benefit
from materials that were purchased with public funds.
Conversely, a bill that sought to emphasize that surplus or
obsolete materials could only be sold to organizations that
agreed to use the materials solely for educational purposes and
that agreed not to resell them for a profit also faced
opposition. The opposition came from Follet Educational
Services arguing, "it would eliminate our ability to do business
with the California schools and districts since we are a 'for
profit' organization. It would also eliminate a much-needed
source of revenue back into our California schools." From these
arguments, one can conclude that despite provisions in the code
prohibiting the sale of surplus materials to organizations that
resell them, that such transactions could be taking place out of
compliance with current law.
Waiver request : In 2005, the State Board of Education (SBE)
rejected a request from a school district to waive provisions of
the Education Code (EC) restricting the sale of surplus or
obsolete instructional materials "solely for educational
purposes" and to agencies that do not intend to charge a fee to
the recipient. The district wanted to sell such materials, for a
profit, to an organization that intended to resell them to
educational agencies in other states. The district alleged that
"approval of this waiver would allow it to resell obsolete
instructional materials that it current sells for scrap for
approximately $420/year, to a for-profit textbook reseller."
The district anticipated that it could make between $6-8 million
dollars from these sales. The basis for SBE's denial of the
waiver according to information on the SBE's agenda is the
following:
The fact that the district can be motivated by profit
to make this resale should not be considered an excuse
for not pursuing the current option that the district
has of donating these materials to other needy
students. Approval of this waiver would likely result
in a surge of other districts seeking to dump their
old materials onto the resale market in other states.
The district has stated how much they hope to recover
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from a waiver of these sections, but what is unknown
is the amount of profit that the "national book
vendors" noted in its waiver application would make by
selling materials that California has deemed
"obsolete" to students in other states.
The waiver of EC sections designed to protect the
interests of students in order to facilitate corporate
profits, with the justification that the obsolete
materials are not being sold in California, seems to
run counter to the intent of these statutes.
The author states, "The education code prohibits districts from
selling instructional materials (Including old, used or obsolete
textbooks) to third party book vendors. Districts are permitted
to sell to any organization that agrees to use the materials
solely for educational purposes. AB 525 would allow school
districts to see [sell] textbooks that have been replaced by a
new adoption to third party book sellers at the best available
price. The proceeds from the sale of these obsolete books would
be added to the school districts instructional materials
budgets."
Staff notes that this bill does not specify that the proceeds
from the sale of surplus or obsolete materials should be used
for purposes of acquiring instructional materials.
Related legislation: AB 487 (Brownley) also makes changes to
the existing restrictions placed on the disposal of surplus or
obsolete undistributed instructional materials and establishes a
mechanism by which revenue can be generated for the state and
school districts. AB 487 allows districts to sell surplus and
obsolete materials to any organization but remit 50% of the
proceeds to the state to be deposited in a special fund for the
Legislature to appropriate for purposes of purchasing
supplemental instructional materials, and as proposed to be
amended, technology-based materials. The other 50% would remain
with the school districts.
This bill does not include provisions requiring districts to
remit any of the funds back to the state, nor does it require
assurances that the materials be used solely for educational
purposes and not resold when the materials have been donated.
These materials were purchased with public funds and donating
them to organizations that could in turn resell them and make a
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profit out these materials may raise concerns.
AB 487 (Brownley) is in direct conflict with this bill. Staff
recommends the Committee consider approving one of the two
measures and avoid passing competing measures that are in direct
conflict with one another.
Previous legislation : AB 1342 (Mendoza) of 2007 changes the
restrictions placed on the State Board of Education and school
districts in the disposal of surplus or undistributed obsolete
instructional materials. AB 1342 was held in the Assembly
Education Committee.
AB 2654 (Coto), of 2006 authorizes the sale of usable surplus or
undistributed obsolete instructional materials by school
districts to organizations that would be permitted, with an
assurance the materials will be used for educational purposes,
to sell the materials for a profit. AB 2654 was held in the
Senate Appropriations Committee.
AB 93 (J. Horton) of 2005 Allows school districts to sell
surplus and obsolete instructional materials to any organization
that agrees to use the materials only for educational purposes
and that agrees not to resell the materials for a profit. AB 93
was held in the Assembly Education Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Marisol Avi?a / ED. / (916) 319-2087