BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1052|
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                                 THIRD READING


          Bill No:  SB 1052
          Author:   Steinberg (D), et al.
          Amended:  5/29/12
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  7-1, 4/11/12
          AYES:  Lowenthal, Alquist, Hancock, Liu, Price, Simitian, 
            Vargas
          NOES:  Blakeslee
          NO VOTE RECORDED:  Runner, Huff, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 5/24/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton


            SUBJECT  :    Postsecondary education:  California Open 
                      Education Resources Council

           SOURCE  :     Author


           DIGEST  :    This bill establishes the nine-member California 
          Open Education Resources Council (COERC), which will be 
          responsible for a variety of tasks geared toward reducing 
          textbook costs for the 50 most widely taken lower division 
          courses.

           ANALYSIS  :    Existing law requires, by January 1, 2020, 
          publishers of textbooks used at the University of 
          California (UC), the California State University (CSU), the 
          California Community Colleges (CCC), or private 
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          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.   

          Existing law, the College Textbook Transparency Act, 
          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.  
           
          Existing law requires the Trustees of the CSU and the Board 
          of Governors of the CCC, 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.  Existing 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.   

          This bill:

          1. Establishes the COERC with the following membership:  

             A.    Three faculty selected by the academic senate of 
                the UC.
             B.    Three faculty selected by the academic senate of 
                the CSU.
             C.    Three faculty selected by the academic senate of 
                the CCC.

          2. Requires the COERC to do all of the following:  

             A.    Develop a list of the 50 most widely taken lower 
                division courses in the public postsecondary 

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                education segments.  

             B.    Create and administer a standardized, rigorous 
                review and approval process for open source materials 
                developed pursuant to this legislation.  

             C.    Promote strategies for the production, access, and 
                use of open source materials.  

             D.    Require publishers of textbooks used in the 50 
                most widely taken lower division courses to, as a 
                condition of the purchase of textbooks, to provide 
                the campus with at least three copies of the textbook 
                at no cost, for placement on reserve at the campus 
                library.  

          3. Requires the COERC to establish a competitive bid 
             process in which faculty members, publishers, and other 
             interested parties may apply for funds to produce 50 
             high-quality affordable, digital open source textbooks 
             and related materials in 2013.  

          4. Requires textbooks and other materials produced to be:

             A.    Placed under a creative commons attribution 
                license that allows others to use, distribute, and 
                create derivative works based upon the digital 
                material while still allowing the authors or creators 
                to receive credit for their efforts.  

             B.    Modular in order to allow easy customization and 
                be encoded in an Extensible Markup Language format or 
                other successor format, so that the materials can be 
                made available on a wide range of platforms.  

             C.    Submitted to and housed within the California Open 
                Source Digital Library when and if that library is 
                established pursuant to statute.

          5. Expresses legislative findings and declarations relating 
             to the cost of college and university textbooks.  

          6. Is operative only if funds are appropriated in the 
             Budget Act, or if federal or private funds are made 

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             available, or any combination thereof.

           Comments
           
          Open Education Resources (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 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.

           Related/Prior Legislation   

          SB 1053 (Steinberg) is a companion bill to this bill.  The 
          bill establishes the California Digital Open Source 
          Library, to be jointly administered by the UC, CSU, and the 
          CCC for the purpose of housing open source materials.  The 
          bill becomes operative only if the bill is enacted and 
          establishes the COERC.

          SB 48 (Alquist), Chapter 161, Statutes of 2009, required 
          any individual firm, partnership, or corporation that 
          offers textbooks for sale at the UC, CSU, the CCC, or a 
          private postsecondary education institution in California, 
          to the extent practicable, make them available for sale in 
          electronic format by January 1, 2020.  The bill was passed 
          by the Senate Education Committee on an 8-0 vote.  

          AB 1548 (Solorio), Chapter 574, Statutes of 2007, 
          established the College Textbook Transparency Act requiring 
          the disclosure of specified information and requiring 
          faculty to follow specified practices in the sale and 
          purchase of textbooks.  The bill was passed by the Senate 
          Education Committee on a 9-0 vote.    


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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

          Substantial one-time costs for COERC activities.  
          Significant on-going costs to maintain and update digital 
          files.

             COERC:  The scope of the COERC costs will depend on the 
             degree to which the workload can be absorbed by existing 
             staff to the Intersegmental Committee of Academic 
             Senates.  At a minimum, there will be significant costs 
             to staff the COERC, to complete the required activities, 
             to create and execute the competitive bid process, to 
             create contracts with the entities that ultimately 
             produce the content, and to establish procedures for 
             segment use of the final products.

             Digital textbooks:  The state will pay for the 
             creation/procurement of 50 high-quality, open source, 
             digital textbooks.  The specific costs will be driven by 
             the market for the 50 courses for which textbooks will 
             be sought.  These digital files will be (as is detailed 
             in companion bill SB 1053) stored and administered on an 
             ongoing basis. 

             Revenue loss:  Upon implementation, there will likely 
             be a significant loss of state sales tax revenues, to 
             the extent that students were previously purchasing 
             textbooks for the 50 courses from sales tax-generating 
             businesses in California.  Additionally, there will 
             likely be a substantial revenue loss to campus 
             bookstores, which are often self-supporting and, in some 
             cases, support other campus activities.

           SUPPORT :   (Verified  5/29/12)

          California Community Colleges Board of Governors
          California State University Academic Senate
          California Teachers Association
          Campaign for College Opportunity
          Coast Community College District
          Community College League of California

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          Student Senate for California Community Colleges

           OPPOSITION  :    (Verified  5/29/12)

          American Publishers Association

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          the cost of textbooks represents a significant burden to 
          students and families.  The author's office sites a recent 
          report by the CSU Chancellor's office that estimates CSU 
          students pay approximately $1,000 per year for textbooks.  
          The author's office also notes a finding by the Academic 
          Senate of the CCC that the cost of educational materials 
          has become a "visible barrier to college attendance for 
          many students."  The author's office maintains that the old 
          model of rigid, printed textbooks and related materials can 
          fall short in providing flexible and dynamic teaching tools 
          necessary to maximize student success.  This bill attempts 
          to address those costs for the 50 most common lower 
          division courses by requiring the availability of textbooks 
          for those courses to be available on reserve at the campus 
          library and by enabling instructional materials for those 
          courses to be available through OER.  

           ARGUMENTS IN OPPOSITION  :    The American Publishers 
          Association is opposed to this bill, they are concerned 
          with the creation of COERC and the cost to fund the 
          development of 50 higher education open source textbooks 
          that, at best, would not be available until 2014-15.  Over 
          the past decade publishers have replaced printed books with 
          state-of-the-art interactive digital course materials that 
          have been proven to improve student success rate and lower 
          costs.  The National Center for Academic Transformation 
          notes such materials are increasing student retention by 
          34% to 40% reducing institutions' cost per pupil for 
          instruction up to 41%.  
           

          PQ:kc  5/29/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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