BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1154
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          Date of Hearing:   June 27, 2012

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                    SB 1154 (Walters) - As Amended:  June 20, 2012

           SENATE VOTE  :   33-0
           
          SUBJECT  :   Instructional materials: digital format

           SUMMARY  :  Requires a publisher or manufacturer of printed basic 
          and supplemental instructional materials to offer equivalent 
          digital formats, at a lower cost than the cost of the purchased 
          printed format.  Specifically,  this bill  :   

          1)Requires a publisher or manufacturer submitting a printed 
            instructional material for adoption by the State Board of 
            Education (SBE) or the governing board of a school district to 
            offer the instructional material in an equivalent digital 
            format, at a lower cost than the cost of the purchased printed 
            format.

          2)Requires a publisher or manufacturer of printed supplemental 
            instructional materials approved by the SBE or the governing 
            board of a school district to offer the printed supplemental 
            instructional materials in an equivalent digital format, at a 
            lower cost than the cost of the purchased printed format.

          3)Provides that if a publisher or manufacturer cannot obtain 
            copyright due to a third-party contract conflict, an 
            equivalent digital format may be substituted with comparable 
            digital material when adopting instructional materials as 
            follows:

             a)   For kindergarten to grade 8, inclusive, the SBE may 
               review and approve substitutions to ensure alignment with 
               the pertinent state subject matter content standards.
             b)   For grades 9 to 12, inclusive, the governing board of a 
               school district may review and approve substitutions to 
               ensure alignment with the pertinent state subject matter 
               content standards.

          4)Requires instructional material or supplemental instructional 
            materials to be offered by a publisher or manufacturer as 
            unbundled elements to enable the digital material or printed 








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            material to be purchased separately from other components.

          5)Stipulates that a publisher or manufacturer that submits 
            printed instructional material for adoption or approval by the 
            SBE or the governing board of a school district shall offer 
            the school district an equivalent digital format of the 
            instructional material that was purchased in print format 
            which may be used by the school district to create a 
            district-wide online digital database for classroom use.

          6)States that a school district shall not be prevented from 
            entering into an agreement to create a district-wide online 
            digital database with the publisher of the instructional 
            materials, or a third party approved by the publisher, for 
            classroom or individual pupil use if the school district 
            implements an online security system that is mutually agreed 
            on by the publisher and the school district.

          7)Stipulates that a purchase agreement entered into for purposes 
            of #6 may include, but is not limited to, a description of 
            reasonable security measures that may include, but are not 
            limited to, the use of a login identification and password to 
            protect and control access to online material and a 
            description of any licensing agreements for access to online 
            material, if applicable.

          8)Requires the instructional material or supplemental 
            instructional material to be available in both printed and 
            digital formats for the duration of the adoption.

          9)Exempts small publishers and small manufacturers of 
            instructional materials from the provisions of this bill and 
            defines "small publisher" and "small manufacturer" as an 
            independently owned or operated publisher or manufacturer 
            that, together with its affiliates, has 100 or fewer employees 
            and average annual gross receipts of ten million dollars 
            ($10,000,000) or less over the previous three years.

          10)Provides 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. 


          11)Requires this bill to be implemented in accordance with the 
            suspension of the instructional material adoption process 








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            pursuant to current law.

          12)States that this bill does not require a publisher or 
            manufacturer that submits an instructional material in digital 
            format only for adoption by the SBE or the governing board of 
            a school district to offer or submit an equivalent print 
            version of the instructional material in digital format.

           EXISTING LAW  :

          1)Requires, in the California Constitution, the SBE to adopt 
            textbooks for use in grades 1-8, inclusive, throughout the 
            state to be furnished without costs.  

          2)Prohibits the SBE from adopting instructional materials or 
            follow the procedures for the adoption of instructional 
            materials until the 2015-16 school year.

          3)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.

          4)Requires the governing board of each school district 
            maintaining one or more high schools to adopt instructional 
            materials for use in the high schools under its control, and 
            specifies that only instructional materials of those 
            publishers who comply with the specified requirements may be 
            adopted by the district board.

          5)Defines "Technology-based materials" as basic or supplemental 
            instructional materials that are designed for use by pupils 
            and teachers as learning resources and that require the 
            availability of electronic equipment in order to be used as a 
            learning resource. Technology-based materials include, but are 
            not limited to, software programs, video disks, compact disks, 
            optical disks, video and audiotapes, lesson plans, and 
            databases.

          6)Requires pupils be provided with standards-aligned textbooks 
            or basic instructional materials by the beginning of the first 
            school term that commences no later than 24 months after those 
            materials were adopted by the SBE, however for the 2008-09 to 
            2014-15 fiscal years, school districts are not required to 
            provide pupils with instructional materials by a specified 








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            period of time following adoption of those materials by the 
            State Board of Education (SBE). States that school districts 
            are not relieved of their obligations to provide every pupil 
            with textbooks or instructional materials during this time.  

          7)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.  States that 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.

          8)Requires the CDE to recommend, and the SBE to approve, 
            evaluation criteria to guide the development and review of 
            supplemental instructional materials for English language arts 
            and mathematics to provide a bridge between the California 
            common core academic content standards and the 
            standards-aligned instructional materials currently being used 
            by local educational agencies.  Requires the SBE to approve or 
            reject all, or a portion, of a list of supplemental 
            instructional materials proposed by the CDE and authorizes the 
            SBE to add an item to that list, as specified. 

          9)Allows the governing board of a school district to approve 
            supplemental instructional materials other than those approved 
            by the SBE if the governing board performs specified reviews 
            and determines that other supplemental instructional materials 
            are aligned with the California common core academic content 
            standards and meet the needs of the pupils of the district. 

           FISCAL EFFECT  :   Unknown 

           COMMENTS  :  This bill requires a publisher or manufacturer of 
          adopted instructional materials or supplemental materials to 
          offer the instructional material in an equivalent digital 
          format, at a lower cost than the cost of the purchased printed 
          format and stipulates that the materials may be used by the 
          school district to create a district-wide online digital 
          database for classroom use.  









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          The proliferation of technology in recent years has not 
          translated into increased access to technology in schools.  The 
          limited resources or lack thereof have often limited a 
          district's ability to provide technology-based or electronic 
          versions of instructional materials to its pupils.  School 
          districts and the State have grappled with funding challenges 
          but also challenges of ensuring equal access to technology for 
          all students.  Current law requires all schools to provide each 
          pupil, including English learners with a standards-aligned 
          textbook or instructional materials, or both, to use in class 
          and to take home and allows the materials to be in a digital 
          format as long as pupils in the same class or course have access 
          to the same materials at school and at home.  The intent is to 
          ensure that all pupils have adequate and equal access to 
          instructional materials even if a school or district chooses to 
          adopt digital instructional materials.  

           Publisher requirements  :  Even though current law does not 
          require publishers to submit materials in electronic formats, 
          several publishers have already been doing so.  A 2007 study of 
          previous SBE adoptions showed that publishers were beginning to 
          make electronic editions of their materials available as an 
          alternate format to their print textbooks.  Furthermore, the 
          last couple of adoptions have seen a number of publishers submit 
          programs that have an integrated electronic component, or in 
          some cases, are entirely technology-based.  A review of the SBE 
          adoption lists for the core subject, standards-aligned adoptions 
          since 2005 shows that the number of electronic editions of 
          adopted instructional materials has increased significantly.  
          For example, the 2007 math adoption includes 22 basic programs, 
          10 of which are available in an optical disk (CD or DVD-ROM), 
          two are available as online texts, and one program has an 
          integrated electronic component.  The 2008 reading language arts 
          (RLA) adoption included various electronic components.  

          At this time, it appears that the issue is not the lack of 
          availability of such materials but rather the resources 
          available to ensure all students have access to such materials.  
          However, an argument can be made that requiring all basic and 
          supplemental instructional materials to be available in digital 
          formats may give school districts more options to select 
          materials from.    

           Online database  :  This bill additionally provides that a school 
          district shall not be prevented from entering into an agreement 








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          to create a district-wide online digital database with the 
          publisher of the instructional materials, if the school district 
          implements an online security system that is mutually agreed on 
          by the publisher and the school district.  Additionally, this 
          bill stipulates that a purchase agreement entered into for 
          purposes of an online database may include, but is not limited 
          to, a description of reasonable security measures that may 
          include, but are not limited to, the use of a login 
          identification and password to protect and control access to 
          online material and a description of any licensing agreements 
          for access to online material, if applicable.  Given the 
          permissive nature of the Education Code, and the fact that 
          nothing in current law would prohibit a district from entering 
          into such a contract, all the permissive language in this bill 
          may not be necessary.  

          According to the sponsor of this bill, the Association of 
          California School Administrators, the intent with this language 
          is to ensure that any contractual agreement for the use of 
          digital format across schools and classrooms is mutually agreed 
          upon by the school district and the publisher.  In an effort to 
          simplify and clarify this language,  Staff recommends  an 
          amendment to delete lines 21-39, inclusive, on page 3 and 
          instead insert "  Digital instructional materials purchased by a 
          school district may be used by the school district to create a 
          districtwide online digital database for classroom use 
          consistent with an online security system that is mutually 
          agreed on by the publisher and the school district."
           
           Unbundled components  :   This bill requires instructional 
          materials or supplemental instructional materials to be offered 
          as unbundled elements to enable materials to be purchased 
          separately from other components.  School districts have argued 
          that oftentimes the options for K-8 instructional materials come 
          in bundled programs, which in some cases results in very high 
          prices of instructional materials.  Some districts do not always 
          use or need all of the elements in the bundled program, yet they 
          have to purchase the entire package.  According to the CDE, 
          materials are already unbundled as publishers are able to sell 
          any part of their program and do so already.  To the extent, 
          unbundling is already existing practice; this bill codifies that 
          practice and requires materials to be offered as unbundled 
          elements.    
           
           Costs  :  While some may argue that digital/electronic versions of 








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          instructional materials are less costly, others would argue that 
          taking into account the technical support that may be necessary 
          to ensure that the pupil can access that material, and to 
          troubleshoot any technical problems that may arise do not 
          necessarily lead to less costs.  Additionally, an argument has 
          been made by publishers that "the savings of paper and ink are 
          outweighed by the costs of programmers, digital artists, 
          servers, website costs, and major expenses for maintenance of 
          sites and access."

          Requiring digital formats to be offered at a lower cost than the 
          print format, raises the fear that the unintended consequence 
          may be that the price of the print materials may be increased to 
          offset the lower cost requirement for the digital formats.  The 
          author may wish to consider  an amendment  to instead require that 
          the digital materials be offered "at the same or lower cost" 
          than the print format.          

          As a result of the fiscal climate in the state, adoptions of 
          instructional materials have been suspended until the 2015-16 
          fiscal year, thus there are no adoptions taking place at the 
          moment and districts are not required to purchase instructional 
          materials by a specified timeline.  This bill requires that the 
          provisions of this bill be implemented consistent with these 
          timelines.  

           Availability of digital instructional materials  :  The recently 
          revised Title 5 of the California Code of Regulations Section 
          9523 currently stipulates that publishers must "provide the CDE 
          with a URL �uniform resource locator] to those instructional 
          materials intended for student use that are being submitted for 
          adoption, and the CDE shall post on its website direct 
          hyperlinks to the URLs provided by the publishers. The 
          instructional materials posted on each publisher's website shall 
          be identical to the hard copy version of the instructional 
          materials submitted for adoption, except that copyrighted items 
          that do not allow for posting online may be omitted and replaced 
          by a description of the omitted item, and any online features 
          that are absent from the hard copy version shall be identified." 
           This requirement for posting is within the context of public 
          inspection of materials being considered for adoption and not 
          necessarily in the context of purchasing these materials.  This 
          means that there is currently no requirement for publishers to 
          ensure the digital materials are available beyond the submission 
          period and for purchase by districts.  This bill requires the 








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          materials to be available in both print and digital format for 
          the duration of the adoption.  

          It appears that many of the larger publishers are already moving 
          in the direction of including digital versions of instructional 
          materials, and thus this may not create a significant burden on 
          those publishers.  However, it is not clear that the smaller 
          publishers will be able to meet the requirements in this bill. 
          This bill exempts small publishers from these requirements.  

           Supplemental instructional materials  :  This bill requires 
          supplemental instructional materials approved by the SBE or 
          governing board of a school district to be made available in 
          digital format.  Supplemental instructional materials are not 
          typically approved.  Districts have the flexibility to purchase 
          any supplemental instructional materials as long as the 
          materials meet the social content requirements.  The only 
          supplemental instructional materials that the SBE is required to 
          approve are the bridge supplemental materials for purposes of 
          the common core standards transition and this is a one-time 
          activity.   Staff recommends  the bill be amended to strike the 
          following language on page 3, lines 2-3: "approved the state 
          board or governing board of a school district"

           Conflict with a previously-approved bill  :  This Committee passed 
          a similar bill, AB 1790 (Hagman), which requires publishers to 
          ensure that instructional materials are available in both print 
          and digital formats.  AB 1790 deals with basic instructional 
          materials whereas this bill deals with both basic and 
          supplemental instructional materials and other elements.  AB 
          1790 passed the Senate Education Committee, however the 
          Committee asked the author of AB 1790 to work with the author of 
          this bill to address the differences and to avoid having 
          duplicate bills in this area.  In an effort to eliminate 
          conflicts between the two bills, the authors have been working 
          with staff of this Committee and the Senate Education Committee. 
           The authors have agreed, and  staff recommends  , the following 
          amendments to resolve the conflicts between the two bills: 

             1)   Insert contingent enactment language in both bills.  The 
               effect is that both bills have to be passed and signed in 
               order for any of the provisions in these bills to be 
               enacted.  

             2)   Amendments to this bill (SB 1154):








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                  a.        Replace the code section number from 60064 to 
                    60063.  Both bills will then add the same section 
                    number and the language from both bills will be added 
                    to the same code section. 
                  b.        On page 2: Delete the requirement that 
                    publishers submitting printed instructional materials 
                    for adoption by the SBE or the governing board of a 
                    school district offer equivalent digital formats. 
                    (Subdivision (a))
                  c.        On page 2: Retain the requirement that digital 
                    instructional materials be offered at the same or 
                    lower costs (Part of existing language with suggested 
                    amendment). 
                  d.        On page 4: Delete the provision requiring 
                    instructional materials and supplemental materials to 
                    be available in both print and digital formats for the 
                    duration of the adoption.  (Subdivision (f))

             3)   Amendments to AB 1790 (Hagman): 

                  a.        On page 2, line 7, after "in" insert: "an 
                    equivalent" and delete "a."  This will conform the 
                    language to SB 1154 to ensure the digital versions of 
                    the materials are equivalent. 
                  b.        On page 2, delete subdivisions (b)-(d) 
                    inclusive. 
            
          The above amendments resolve the conflicts and make the bills 
          complementary. 

           Author's statement  , "The digitization of education is sweeping 
          through America, as more school districts are implementing 
          technology and seeing remarkable results.  Florida, Maine, 
          Washington, Utah, and Alabama have all passed measures to make 
          digital textbooks a reality in public schools. Yet, it is a 
          widespread disappointment that Californian schools are not fully 
          grasping the technological opportunities."

           Arguments in support  :  The Association of California School 
          Administrators writes, "Given the dire fiscal crisis schools are 
          facing, SB 1154 takes important steps towards greater local 
          flexibility and negotiating ability and increases access to 
          digital materials so that students have greater access in the 
          classroom, in the library and at home to use their textbooks via 








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          digital format." 

           Arguments in opposition  :  The Association of American Publishers 
          writes, "Generally, SB 1154 would allow unlimited use of and 
          reproduction of all state-adopted instructional content, without 
          compensation to the publishers, authors or third-party 
          contributors and without regard to legal limitations on content 
          licensed from others."

           Related legislation  :  AB 1790 (Hagman) Requires a publisher or 
          manufacturer submitting instructional materials for adoption by 
            the State Board of Education (SBE) or the governing board of a 
          school district to ensure that the instructional materials are 
          available in both print and digital formats, during the entire 
          term of the adoption.  AB 1790 is pending on the Senate Floor. 

          AB 1246 (Brownley) revises the process for adopting 
          instructional materials for use in kindergarten and grades 1-8, 
          inclusive (K-8).  AB 1246 is pending in the Senate Education 
          Committee.  

           Previous legislation  :  AB 1398 (Blumenfield) Chapter 293, 
          Statutes of 2009, changes the definition of "technology-based 
          materials," for purposes of the instructional materials and 
          testing part of the Education Code, to specify that 
          technology-based materials do not include the electronic 
          equipment required to make use of those materials, unless that 
          equipment is to be used by pupils and teachers as a learning 
          resource; and provides that this definition does not relieve a 
          school district of the obligation to provide pupils with 
          sufficient textbooks as specified. 

          AB 2211 (Fuentes) Chapter 254, Statutes of 2010, amends the 
          definition of "sufficient textbooks or instructional materials" 
          to state that 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.

          AB 1010 (Pavley) of 2004 requires 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 upon adoption of instructional 
          materials after January 1, 2005, by the State Board of Education 








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          or by the governing board of a school district that maintains a 
          high school.  Makes these requirements operative January 1, 
          2007, and provides that a school district that purchases 
          instructional materials in an electronic multimedia format 
          pursuant to the bill shall comply with specified law governing 
          instructional materials.  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."

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Association of California School Administrators (sponsor)
          Children Now
          San Francisco Unified School District
           
            Opposition 
           
          Association of American Publishers  

           Analysis Prepared by  :    Marisol Avi�a / ED. / (916) 319-2087