BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       SB 185
          AUTHOR:        Walters
          AMENDED:       May 2, 2013
          FISCAL COMM:   No             HEARING DATE:  May 8, 2013
          URGENCY:       No             CONSULTANT:Lynn Lorber

           SUBJECT :  Instructional materials.
          
           SUMMARY
           
          This bill authorizes school districts to negotiate the  
          price of instructional materials, requires publishers to  
          offer instructional materials as unbundled elements, and  
          authorizes school districts to create a districtwide online  
          digital database of instructional materials.

           BACKGROUND
           
          School districts are required to provide instructional  
          materials adopted by the State Board of Education (SBE) to  
          pupils in grades K-8, or standards aligned materials that  
          have not been adopted by the SBE (see next paragraph).   
          School districts adopt materials for use in high schools.   
          The SBE is prohibited from adopting instructional materials  
          (other than specified materials related to the common core  
          standards) until the 2015-16 school year (due to budget  
          constraints).  (Education Code � 60200, � 60200.7 and �  
          60400)

          Current law authorizes school districts to use  
          instructional materials that are aligned with the academic  
          content standards (original standards or common core  
          standards), including instructional materials that have not  
          been adopted by the SBE.  A district that chooses to use  
          instructional materials that have not been adopted by the  
          SBE must ensure that a majority of participants of a review  
          process are classroom teachers who are assigned to the  
          subject area or grade level of the materials.  (EC � 60210)

          Current law requires publishers to adhere to several  
          requirements when submitting instructional materials to the  







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          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)

          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.  (EC � 60119)

          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  







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          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  authorizes school districts to negotiate the  
          price of instructional materials, requires publishers to  
          offer instructional materials as unbundled elements, and  
          authorizes school districts to create a districtwide online  
          digital database of instructional materials.  Specifically,  
          this bill:

          1)   Authorizes school districts and county offices of  
               education to negotiate the price of standards-aligned  
               instructional materials and supplemental materials in  
               either a printed or digital format.

          2)   Authorizes school districts to use instructional  
               materials in digital format that were purchased 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.

          3)   Requires publishers to offer instructional materials  
               or supplemental materials as unbundled elements to  
               enable the digital material or printed materials to be  
               purchased separately from other components.

           STAFF COMMENTS
           
           1)   Need for the bill  .  According to the author,  
               "California's current economic situation has resulted  
               in many school districts being unable to afford new  
               hardcopy textbooks for their students.  Additionally,  
               public schools are not able to seize the opportunity  
               presented by these new technologies, which are the  
               future of education, due to California's fiscal  







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               situation and the rigidity of California's  
               instructional materials market model.  Currently, many  
               textbook publishers only offer educational materials  
               in bundled formats.  For example, a textbook, workbook  
               and CD-ROM may come together in one bundle.   
               Therefore, when purchasing needed materials, schools  
               districts must often purchase other materials they  
               never intend to use."

           2)   Price of state-adopted materials  .  The State Board of  
               Education (SBE) adopts K-8 instructional materials  
               while school districts adopt instructional materials  
               for grades 9-12.  Until recently, school districts  
               were required to purchase K-8 instructional materials  
               from the list of materials adopted by the SBE.   
               Beginning January 1, 2013, school districts may choose  
               to purchase instructional materials that are aligned  
               to the academic content standards but not adopted by  
               the SBE.

          Publishers of instructional materials are required to  
               submit initial prices for K-8 instructional materials  
               submitted by the publisher to the State Board of  
               Education (SBE) for consideration for adoption.  The  
               SBE adopts the price of materials at the time of  
               adoption of the instructional materials.  Prices  
               remain in effect for two years, although publishers  
               may reduce the price at any time during the two year  
               cycle.  Publishers may submit revisions to price  
               schedules biennially.  The list of SBE adopted  
               materials, including prices, is available on the  
               California Department of Education's website:   
                http://www3.cde.ca.gov/impricelist/implsearch.aspx  

               Supplemental instructional materials are approved but  
               not adopted by the SBE.  The price of supplemental  
               materials is not set by the SBE; districts negotiate  
               directly with publishers for the purchase of  
               supplemental instructional materials.

               This bill authorizes school districts and county  
               offices of education to negotiate the price of  
               standards-aligned instructional materials and  
               supplemental materials in either a printed or digital  
               format.  Currently, every school district and county  
               office of education pays the same price for K-8  







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               instructional materials that are adopted by the SBE.   
               This bill would make the price determined by the SBE  
               the ceiling, and allow districts to negotiate a lower  
               price.  This could lead to situations where some  
               districts pay more than others for the same  
               instructional materials, thereby disrupting the  
               currently level playing field.  However, districts  
               would not pay a higher price than they are currently  
               paying, and some could pay less (some winners but no  
               losers).  

               School districts that choose to use standards-aligned  
               instructional materials that are not adopted by the  
               SBE negotiate price directly with publishers.   
               Allowing districts to negotiate the price of SBE  
               adopted materials is generally consistent.

           3)   Digital database  .  This bill authorizes school  
               districts to use digital materials purchased by the  
               district to create a districtwide online digital  
               database for classroom use, and requires the use of  
               the materials to be consistent with an online security  
               system that is mutually agreed upon by the publisher  
               and the school district.  This bill does not prohibit  
               publishers from charging a fee to districts for access  
               to the material, nor does this bill prohibit a  
               district from charging a fee to schools for access to  
               the materials.  Staff recommends an amendment to  
               specify that use of materials through the districtwide  
               database shall not violate any contract or copyright  
               laws.  
           
           4)   Unbundled materials  .  This bill requires publishers to  
               offer instructional materials as unbundled elements to  
               enable digital materials or printed materials to be  
               purchased separately from other components.  This bill  
               does not require publishers to offer materials at no  
               cost, nor does current law require publishers to offer  
               instructional materials individually (a la carte).   
               Some districts believe that publishers offer  
               instructional materials in bundles (textbook,  
               workbook, CD and other ancillary materials) to ensure  
               districts buy the entire package.  Staff recommends an  
               amendment to include a cross-reference to the  
               requirement that districts provide sufficient  
               instructional materials, pursuant to the Williams  







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               settlement.  

           5)   Related legislation  .  AB 133 (Hagman) requires a  
               publisher submitting printed instructional material  
               for adoption by the SBE or the governing board of a  
               school district to ensure that the printed  
               instructional material is also available in digital  
               format, during the entire term of the adoption.  
                AB 133 is pending in this Committee.

               SB 682 (Lara) authorizes school districts to provide a  
               digital version of instructional materials to students  
               that may be downloaded onto an electronic device, and  
               allows students to keep the digital materials beyond  
               the end of the school year.  SB 682 is scheduled to be  
               heard by this Committee on May 8, 2013.  


          6)   Prior legislation  .  SB 1154 (Walters, 2012) would have  
               required equivalent digital formats to be offered at  
               the same or lower cost than print materials, required  
               publishers to offer unbundled instructional materials,  
               and authorized districts to use digital materials for  
               classroom use through a district-based digital  
               library.  SB 1154 was vetoed by the Governor, whose  
               veto message read:

                    Providing on-line instructional materials and  
                    coursework to pupils in California is an  
                    educational goal that I very much share. 

                    This bill, however, does not accomplish that  
                    goal. Instead, it puts unrealistic requirements  
                    on California's businesses that will lead to  
                    increased costs of instructional materials.

               AB 1790 (Hagman, 2012) would have required publishers  
               to ensure that instructional materials are offered in  
               both print and digital formats.  
               AB 1790 was vetoed by the Governor, whose veto message  
               read:

                    This bill would require textbook publishers to  
                    produce digital "equivalent" versions of printed  
                    instructional materials submitted for adoption by  
                    the State Board of Education or by local school  







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                    districts. 

                    This bill is contingent on the enactment of  
                    Senate Bill 1154, which I vetoed.  As a  
                    consequence, this bill cannot become operative. 

           SUPPORT
           
          Association of California School Administrators
          San Francisco Unified School District

           OPPOSITION

           Association of American Publishers