BILL ANALYSIS                                                                                                                                                                                                    �



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          SENATE THIRD READING
          SB 1154 (Walters)
          As Amended  August 20, 2012
          Majority vote 

           SENATE VOTE  :33-0  
           
           EDUCATION           11-0        APPROPRIATIONS      16-0        
           
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          |Ayes:|Brownley, Norby, Ammiano, |Ayes:|Gatto, Harkey,            |
          |     |Buchanan, Butler, Carter, |     |Blumenfield, Bradford,    |
          |     |Eng, Grove, Halderman,    |     |Charles Calderon, Campos, |
          |     |Wagner, Williams          |     |Davis, Fuentes, Hall,     |
          |     |                          |     |Hill, Cedillo, Mitchell,  |
          |     |                          |     |Nielsen, Norby, Solorio,  |
          |     |                          |     |Wagner                    |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires a publisher or manufacturer that offers 
          equivalent digital formats of printed instructional materials to 
          offer the digital formats at the same cost as or lower cost 
          than, the cost of the purchased printed format.  Specifically, 
           this bill  :   

          1)Requires a publisher or manufacturer of printed supplemental 
            instructional materials to offer the printed supplemental 
            instructional materials in an equivalent digital format, at 
            the same cost as or a lower cost than, the cost of the 
            purchased printed format.

          2)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.

          3)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 
            material to be purchased separately from other components.

          4)Authorizes a school district to use instructional materials 
            that were purchased by the district in digital formats to 
            create a district-wide online digital database for classroom 
            use consistent with an online security system that is mutually 








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            agreed on by the publisher and the school district.

          5)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 $10 million or less over 
            the previous three years.

          6)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. 


          7)Requires this bill to be implemented in accordance with the 
            suspension of the instructional material adoption process 
            pursuant to current law.

          8)States that this bill does not require a publisher or 
            manufacturer that submits an instructional material in digital 
            format only to offer or submit an equivalent print version of 
            the instructional material in digital format.

          9)Makes the provisions of this bill contingent on the enactment 
            of AB 1790 (Hagman) of the 2011-12 Regular Session. 

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, this bill may result in local school district General 
          Fund/Proposition 98 savings if districts choose to take 
          advantage of the "unbundling" provisions in this bill (i.e., 
          only buying certain components of instructional material 
          programs).  It is unclear if there will be savings to districts 
          that choose to predominantly purchase digital instructional 
          materials instead of materials in the printed format. 

           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 the same cost as, or 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.  This bill does not 
          require a school district to purchase materials in a specific 








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          format, instead it seeks to ensure both formats are available 
          for purchase, and leaves the decision to the local school 
          districts.

          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.  

          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 State Board of 
          Education (SBE) adoptions showed that publishers were beginning 
          to make electronic editions of their materials available as an 
          alternate format to their print textbooks.  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 made available in digital formats 
          may give school districts more digital options to select from.

          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 kindergarten and grades 1-8, 
          inclusive (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 








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          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 
          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."

          This bill was previously in conflict with AB 1790 (Hagman).  The 
          author of this bill and the author of AB 1790 agreed to a set of 
          amendments that resolve the conflicts and make the two bills 
          complementary and contingent upon the enactment of each other.  
          This bill as amended in the Assembly Education Committee 
          reflects those amendments.  AB 1790 is pending on the Senate 
          Floor and at the time of this writing has not been amended.  

          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."

          Related legislation:  AB 1790 (Hagman), requires a publisher or 
          manufacturer submitting instructional materials for adoption by 
          the 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 reviewing and 
          adopting instructional materials for use in K-8 and authorizes 
          the adoption of common core standards aligned instructional 
          materials in mathematics by March 30, 2014.  AB 1246 is pending 
          on the Senate Floor.  








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


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