BILL ANALYSIS                                                                                                                                                                                                    �






                            SENATE COMMITTEE ON EDUCATION
                                Alan Lowenthal, Chair
                              2011-2012 Regular Session
                                          

             BILL NO:       SB 1154
             AUTHOR:        Walters
             AMENDED:       April 11, 2012
             FISCAL COMM:   No             HEARING DATE: April 25, 2012
             URGENCY:       No             CONSULTANT:    Lynn Lorber

              SUBJECT  :  K-12 instructional materials: digital format.
             
              SUMMARY
              
             This bill requires publishers to offer instructional 
             materials in both print and an equivalent digital format, 
             offer unbundled instructional materials, and provide to 
             school districts a free digital format for classroom use 
             through a district-based digital library.

              BACKGROUND
              
             School districts are required to provide instructional 
             materials adopted by the State Board of Education (SBE) to 
             pupils in grades K-8.  School districts adopt materials 
             for use in high schools.  The SBE is prohibited from 
             adopting instructional materials until the 2015-16 school 
             year (due to budget constraints).  (Education Code � 
             60200, 60200.7 & 60400)

             The SBE adopted common core standards in English language 
             arts and mathematics on August 2, 2010, but is prohibited 
             from developing frameworks or adopting instructional 
             materials until the 2015-16 school year.  A full adoption 
             of basic instructional materials is time-consuming and 
             costly.  Schools are using instructional materials that 
             were adopted several years ago yet are expected to provide 
             instruction on the new common core standards.  

             SB 140 (Lowenthal, Ch. 623, 2011) required the California 
             Department of Education (CDE), on a one-time basis, to 
             develop a list of supplemental instructional materials 
             that are aligned with California's common core standards 
             to bridge the gap between existing instructional materials 
             and the new common core standards.  (EC � 60605.86)




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             Current law requires publishers to adhere to several 
             requirements when submitting instructional materials to 
             the SBE for consideration, and well as in the provision of 
             those materials to school districts, including:

             1)   Furnish the materials at a price that does not exceed 
                  the lowest price sold in the United States.

             2)   Provide any materials free of charge to the same 
                  extent as received by any state.
             3)   Provide to the state, at no cost, computer files or 
                  other electronic versions of each state-adopted 
                  literary title and the right to transcribe, 
                  reproduce, modify and distribute the material in 
                  Braille, large print, recordings, American Sign 
                  Language videos or other specialized media 
                  exclusively for use by pupils with visual 
                  disabilities.  (EC � 60061 & 60220)

             Current law requires the California Department of 
             Education (CDE) to establish a pilot program of 12 schools 
             to request publishers make instructional materials in 
             electronic multimedia format available for purchase.  
             Participating schools are required to provide to pupils 
             the hardware necessary to use the electronic materials, or 
             print materials to pupils who do not have access to the 
             hardware.  No schools elected to participate in this pilot 
             program.  (EC � 60051)

             Current law authorizes school districts to include 
             relevant technology-based materials when adopting 
             instructional materials if the materials are both 
             available and comparable to other, equivalent 
             instructional materials.  (EC � 60052)

             Current law authorizes school districts to use 
             Instructional Materials Realignment funding to purchase 
             state-adopted instructional materials for pupils in grades 
             K-8, and standards-aligned materials for pupils in grades 
             9-12, in an electronic or hardbound format if it can 
             ensure that each pupil will be provided with a copy of the 
             instructional materials to use at school and at home.  
             This specifically does not require school districts to 
             purchase 2 sets of materials.  The Instructional Materials 
             Realignment funding program sunsets July 1, 2013.  (EC � 




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             60422.1)

             For purposes of the Williams settlement, current law 
             defines "sufficient textbooks or instructional materials" 
             to mean that each pupil, including English learners, has a 
             standards-aligned textbook or instructional materials, or 
             both, to use in class and to take home, but does not 
             require two sets of textbooks or instructional materials 
             to be purchased for each pupil.  

             Instructional materials may be in a digital format as long 
             as each pupil, at a minimum, has and can access the same 
             materials in the class and to take home, as all other 
             pupils in the same class or course in the district and has 
             the ability to use and access them at home.  (EC � 60119)

             Current law requires, by January 1, 2020, publishers of 
             any textbook offered for sale at the University of 
             California, California State University, the California 
             Community Colleges, or a private university in the state, 
             to the extent practicable, make the textbooks available 
             (in whole or part) for sale in an electronic format.  The 
             electronic version must contain the same content as the 
             printed version and may be copyright-protected.  (EC � 
             66410)

              ANALYSIS
              
              This bill  requires publishers to offer instructional 
             materials in both print and an equivalent digital format, 
             offer unbundled instructional material, and provide to 
             school districts a free digital format for classroom use 
             through a district-based digital library.  Specifically, 
             this bill:

             1)   Requires a publisher or manufacturer submitting an 
                  instructional material or supplemental instructional 
                  material for adoption by the State Board of Education 
                  (SBE) or the governing board of a school district to 
                  do all of the following:

                       a)             Offer the instructional material 
                       in both print and an equivalent digital format.

                       b)             Offer the supplemental 
                       instructional material in both print and a 




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                       digital format.

                       c)             Offer the digital material and 
                       supplementals as unbundled elements, to enable 
                       the digital material to be purchased in sections 
                       or components. 

                       d)             Provide to a school district, at 
                       no cost, an equivalent digital format of a 
                       purchased print textbook that may be used to 
                       create a districtwide online digital database 
                       for classroom use, if the school district 
                       implements a system of online security to ensure 
                       the protection of copyright-protected material.

             2)   Exempts small publishers, defined as an independently 
                  owned or operated publisher that, together with its 
                  affiliates, as 100 or fewer employees and average 
                  annual gross receipts of $10 million or less over the 
                  previous 3 years.

             3)   States that this bill does not authorize the use of 
                  instructional materials that would constitute an 
                  infringement of copyright under the federal Copyright 
                  Revision Act of 1976.

              STAFF COMMENTS
              
              1)   Need for the bill  .  According to the author, "Schools 
                  must be empowered to negotiate for the digital 
                  materials they require, and under the current, 
                  antiquated system, the textbook industry offers 
                  little purchasing power to schools to provide 
                  materials in the form that best fits the needs of 
                  each school.  SB 1154 seeks to address both the 
                  technology gap and problems often experienced by 
                  school districts negotiating with textbook companies 
                  by empowering the districts to implement digital 
                  textbooks in the classroom by ensuring that 
                  instructional materials are offered in a digital 
                  format.  SB 1154 also seeks to eliminate the problem 
                  of bundling from continuing in negotiations for 
                  digital instructional materials by allowing schools 
                  to purchase instructional materials separately, and 
                  supplemental material in segments, which would be 
                  made possible with the new digital format."




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              2)   Local negotiations  .  School districts must provide to 
                  pupils in grades K-8 instructional materials that 
                  have been adopted by the State Board of Education 
                  (SBE).  School districts must provide to pupils in 
                  grades 9-12 instructional materials that are aligned 
                  to the standards; SBE does not adopt instructional 
                  materials for grades 9-12.  Publishers of 
                  instructional materials that have been adopted by the 
                  SBE negotiate directly with school districts with 
                  regard to exactly which adopted materials the 
                  district will purchase (print textbooks, materials 
                  for English learners, ancillary materials, and the 
                  format desired).  School districts have some ability 
                  to negotiate the price of materials but publishers 
                  are prohibited from charging a fee that is higher 
                  than charged for the same material in any other 
                  state.  While school districts currently have the 
                  authority to request digital formats and negotiate 
                  with publishers, publishers are not required to 
                  disclose all available options nor are publishers 
                  required to offer materials in any format other than 
                  print versions.

              3)   Both print and digital format  .  This bill requires 
                  textbook publishers to offer both print and an 
                  equivalent digital format of instructional materials. 
                   This bill does not prohibit publishers from charging 
                  a fee for the digital format.

             It is possible that a publisher offers an instructional 
                  item only in digital format.  This bill would in 
                  effect require that publisher to produce a print 
                  version of that material.  Staff recommends an 
                  amendment to instead require publishers to offer a 
                  digital format only if the publisher offers a print 
                  version.

              4)   Current review of instructional materials  .  Current 
                  law prohibits the SBE from adopting instructional 
                  materials until the 2015-16 school year.  
                  Notwithstanding that prohibition, current law 
                  requires the California Department of Education (CDE) 
                  to develop a list of supplemental instructional 
                  materials that are aligned to the common core 
                  standards (in English language arts and mathematics). 




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                   The CDE is currently implementing this process, and 
                  publishers will soon submit supplemental 
                  instructional materials for review and consideration 
                  for inclusion on the list of approved materials. 

              5)   No requirement to purchase  .  This bill does not 
                  require school districts to purchase instructional 
                  materials in any specific format, nor does this bill 
                  reinstate the requirement that school districts 
                  purchase materials within a specific timeframe 
                  subsequent to adoption by the SBE.

              6)   Existing digital format of basic instructional 
                  materials  .  The SBE has adopted some instructional 
                  materials in digital formats, but those materials are 
                  generally associated with a print textbook, and are 
                  only for basic instructional materials (not 
                  supplementals).  

              7)   Existing digital format of supplemental materials  .  
                  The California Learning Resource Network (CLRN) is a 
                  multi-county office of education collaborative that 
                  reviews digital supplemental instructional materials 
                  and makes those materials available online.  CLRN 
                  uses evaluation criteria adopted by the SBE covering 
                  legal compliance, standards alignment and minimum 
                  requirements.  CLRN only reviews and approves digital 
                  supplemental materials; these materials are not 
                  adopted by the SBE.  While school districts may 
                  currently access digital supplemental materials 
                  through CLRN, this bill seeks to expand the pool of 
                  digital materials to include digital formats of basic 
                  instructional materials and provide all print 
                  supplementals available in digital format.

              8)   Free digital format for district digital database  .  
                  This bill requires publishers to provide, at no cost, 
                  a digital format of a purchased print textbook that 
                  may be used to create a districtwide online digital 
                  database for classroom use.  This bill seeks to allow 
                  districts to share instructional resources throughout 
                  schools in the district, as well as with schools that 
                  may be within the boundaries of another district.  
                  While districts would purchase a print version, this 
                  bill requires the publisher to provide a digital 
                  format of the print text at no cost.  This bill 




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                  requires the district to implement a system of online 
                  security to ensure the protection of 
                  copyright-protected material.  This bill does not 
                  prohibit a district from charging a fee to schools 
                  for access to the digital format.  

              9)   Unbundled materials  .  School districts serving pupils 
                  in grades K-8 are required to purchase instructional 
                  materials that have been adopted by the SBE.  Some 
                  districts believe that publishers offer instructional 
                  materials in bundles (textbook, workbook, CD and 
                  other ancillary materials) to ensure districts buy 
                  the entire package; districts are required to 
                  purchase materials based on the SBE's adoption list 
                  (K-8) which may have a very limited selection.  
                  Current law does not require publishers to offer 
                  instructional materials individually (a la carte).  
                  This bill requires publishers to offer digital 
                  materials as separate components, enabling districts 
                  to purchase only the materials that meet their needs.

              10)  Technical amendments needed  .  Supplemental 
                  instructional materials are not adopted by the SBE.  
                  With regard to supplemental materials, amendments 
                  should reflect that supplemental materials may be 
                  approved but not adopted by the SBE.  (Page 2, line 
                  5)

             Ensure all references to digital formats specify that the 
                  digital format is to be equivalent to the print 
                  version.  (Page 2, line 10) 

             Specify that the provisions of this bill shall be enacted 
                  in conformance with existing provisions and timelines 
                  that suspended the adoption of instructional 
                  materials (to clarify that submissions to the SBE are 
                  to be done during the regular submission cycle).

             State that the materials submitted by publishers shall be 
                  available in print and digital formats during the 
                  life of the adoption (not just during the submission 
                  period).

              11)  Related legislation  .  AB 1790 (Hagman) requires 
                  publishers to ensure that instructional materials are 
                  offered in both print and digital formats.  AB 1790 




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                  is pending on the Assembly Floor.

              12)  Prior legislation  .  AB 1010 (Pavley, 2004) would have 
                  required, beginning January 1, 2007, a publisher that 
                  makes basic instructional materials available to a 
                  school district in a hard copy format to also make 
                  instructional materials available in an electronic 
                  multimedia format.  AB 1010 was vetoed by Governor 
                  Schwarzenegger with the following veto message:  

                       While I support the idea of using an 
                       electronic multimedia format, it is crucial 
                       that we remain focused on providing all 
                       pupils with an actual textbook in core 
                       curricula areas. In addition, I am concerned 
                       about the rising costs of textbooks and this 
                       bill could create increased costs to the 
                       State in the form of higher textbook costs 
                       for publishers to comply with the electronic 
                       multimedia format requirement. Higher costs 
                       could make it more difficult for schools to 
                       ensure that pupils have adequate textbooks 
                       which was a cornerstone of the Williams v. 
                       State of California settlement agreement.

              SUPPORT
              
             Association of California School Administrators
             Association of Suburban School Districts
             California School Boards Association
             Children Now
             San Francisco Unified School District

              OPPOSITION

              None on file.