BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1539
                                                                  Page  1


          SENATE THIRD READING
          SB 1539 (Corbett)
          As Amended  May 2, 2012
          Majority vote 

           SENATE VOTE  :24-10  
           
           HIGHER EDUCATION    8-1                                         
           
           ----------------------------------------------------------------- 
          |Ayes:|Block, Olsen, Achadjian,  |     |                          |
          |     |Brownley, Fong, Galgiani, |     |                          |
          |     |Lara, Portantino          |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Miller                    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
          SUMMARY  :  Requires the publisher of a textbook, or an agent or 
          employee of the publisher, to provide prescribed data about the 
          textbook to prospective purchasers.   Specifically,  this bill  :   


          1)Requires each publisher, agent, or employee of a publisher of 
            college textbooks to provide prospective purchasers at a 
            California college or university with a complete list of 
            products that are germane to the subject area of interest and 
            offered for sale by the publisher and requires the publishers 
            to provide the following for each of these products:

            a)   The wholesale price of the product;

            b)   The estimated length of time the publisher intends to 
          keep the product on the market; and,

            c)   A complete list of all differences or changes made 
          between the current edition and the previous edition of the 
          textbook for each new edition of a product.

          2)Requires the lists be made available to the prospective 
            purchaser at the start of any sales interaction at a college 
            or university whether in person, by telephone, or 
            electronically and requires these lists by made available on 
            the publisher's Web site.








                                                                  SB 1539
                                                                  Page  2



          3)Includes a variety of terms and definitions, as specified.

           FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the 
          Legislative Counsel.

           COMMENTS  :  Several reports throughout the last decade have noted 
          the increasing cost of college textbooks.  In 2004, the 
          California Public Interest Research Group released a study that 
          found the cost of textbooks has been rapidly increasing, from an 
          average of $642 per year in 1996-97 to $898 per year in 2003-04. 
           A report by the California State Auditor's Office in 2008 found 
          that textbook costs represented 60% of the total cost to 
          education for community college students, with an annual 
          textbook cost of $692 dollars for students taking a full-time 
          course load. 

          State and federal laws passed since 2008 have worked to 
          substantially increase the amount of information provided by 
          publishers.  Publishers are required, among other things, to 
          give to faculty information about differences from prior 
          editions, the price the textbook will be offered to the campus 
          bookstore and to the public, and the copyright dates of the 
          three previous editions.  
          Federal law also requires the Comptroller General of the United 
          States to report by July 1, 2013, on the implementation of the 
          requirements imposed upon institutions of higher education, 
          college bookstores and publishers, and particularly to examine:

          1)The availability of college textbook information on course 
            schedules.

          2)The provision of pricing information to faculty by publishers.

          3)The use of bundled and unbundled material.

          4)The implementation of the federal Higher Education Opportunity 
            Act by institutions of higher education, including the costs 
            and benefits to such institutions and to students.

          Need for this bill.  According to the author, "SB 1539 seeks to 
          close the gap of AB 1548 (Solorio), 2007, which among other 
          things requires the differences between the newest edition and 
          the previous edition to be printed on the inside cover of the 








                                                                  SB 1539
                                                                  Page  3


          textbook.  SB 1539 would require that this information be 
          provided at the beginning of this transaction. Often times the 
          textbook itself would not be given to the professor during the 
          negotiation phase, which means the professor would not have the 
          information needed to make a sound decision."

          Effects of the bill:

          1)The provisions of this bill essentially restate existing law 
            except for:  a) the requirements that publishers provide to 
            faculty a list of the all products and the anticipated length 
            the product will be on the market; and, b) the requirement 
            that publishers list information about textbooks on their Web 
            sites.
          
          2)This bill requires publishers to disclose to faculty all 
            products offered for sale that are germane to the faculty's 
            subject area of interest.  This bill defines "product" to 
            include each version of a textbook or set of textbooks, 
            including a supplemental item whether or not the supplemental 
            item is sold separately or together with a textbook.  This 
            bill also defines "product" to include digital formats of 
            textbooks.  Current law requires publishers to disclose to 
            faculty if textbooks are available in other formats, such as 
            paperback or unbound, but is silent about digital formats.


           Analysis Prepared by  :    Kevin J. Powers / HIGHER ED. / (916) 
          319-3960 


                                                                FN: 0004161