BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 185
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          Date of Hearing:   June 12, 2013

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                     SB 185 (Walters) - As Amended:  May 15, 2013

           SENATE VOTE :   34-0
           
          SUBJECT  :   Instructional materials: digital format

           SUMMARY  :   This bill makes changes to the requirements for the  
          adoption of instructional materials by school districts and  
          county offices of education.  Specifically,  this bill  :   

          1)Permits 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)Requires publishers to offer digital and printed instructional  
            materials in an unbundled format to allow a school district or  
            county office of education to purchase each component of the  
            instructional program separately.


          3)Specifies that a school district may use instructional  
            materials in digital format that were purchased by the school  
            district to create a district-wide online digital database for  
            classroom use consistent with an online security system that  
            is mutually agreed on by the publisher and the school  
            district.


           EXISTING LAW  
          1)Requires, in the California Constitution, the State Board of  
            Education (SBE) to adopt textbooks for use in grades 1-8,  
            inclusive, throughout the state to be furnished without costs  
            and that the instructional materials it adopts meet specified  
            criteria.

          2)Prohibits the SBE from adopting instructional materials, or  
            from following the procedures for the adoption of  
            instructional materials, until July 1, 2015.









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          3)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.

          4)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.

          5)Authorizes school districts to include relevant  
            technology-based materials when adopting instructional  
            materials if the materials are both available and comparable  
            to other instructional materials.

          6)Specifies 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. 

          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.  These 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 a publisher or manufacturer to furnish the  
            instructional materials to all school districts and county  
            offices of education at a price that does not exceed the  
            lowest price at which the publisher offers those instructional  
            materials for adoption or sale to any state or school district  
            in the United States and reduce the price to California school  








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            districts and county offices of education if the price is  
            reduced in another state or school district.

          9)Requires a publisher or manufacturer to furnish those  
            instructional materials free of charge to all county offices  
            of education, district boards, elementary schools, middle  
            schools, or high schools to the same extent as is received  
            free of charge by any other state or school district in the  
            United States. These provisions of code and regulation are  
            commonly referred to as the "most favored nation" clause.

          10)Requires a publisher or manufacturer to provide the state  
            with an electronic version of the instructional material for  
            the purpose of producing instructional materials for pupils  
            that are Deaf, hard of hearing, blind, or visually impaired,  
            if those instructional materials are not already available for  
            these pupils by the publisher or manufacturer.

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

           COMMENTS  :   Pursuant to its constitutional duty, the SBE adopts  
          instructional materials for use in grades K-8 within  
          California's public schools using a statutorily and regulatory  
          dictated process.  School districts and county offices of  
          education are permitted to adopt instructional materials not  
          adopted by the SBE so long as the district or county office  
          reviews the materials to ensure alignment with the SBE adopted  
          academic content standards.  

           Price Negotiation:  This bill permits a school district or county  
          office of education to negotiate the price of standards-aligned  
          instructional materials and supplemental materials in either a  
          printed or digital format.  Even if a school district or county  
          office of education purchases instructional materials adopted by  
          the SBE, districts and county offices purchase these  
          instructional materials directly from the publishers.  The SBE  
          adopts the price of materials at the time of adoption of the  
          instructional materials and maintains an online price list of  
          adopted instructional materials for K-8. Prices are fixed for a  
          two-year period and may be adjusted biennially.  

          Currently, every school district and county office of education  
          pays the same price for K-8 instructional materials that are  
          adopted by the SBE.  This bill would make the price determined  








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          by the SBE the ceiling, and allow districts to negotiate a lower  
          price.  The committee may wish to consider whether this could  
          lead to situations where some districts pay more than others for  
          the same instructional materials, thereby disrupting the  
          currently level playing field.  

          Despite the language in this bill that read "notwithstanding  
          paragraph (1) of subdivision (a) of Section 60061" there remains  
          confusion about how these provisions of law will be reconciled.   
          Therefore, the committee recommends amendments to delete Section  
          1 of this bill and instead amend section 60061 of the Education  
          Code to permit publishers and school districts to negotiate a  
          lower price, so long as no price is higher than that offered in  
          another state in or territory of the United States.  Nothing in  
          the proposed amendments or existing law would prevent multiple  
          districts to join together to negotiate with publishers in order  
          to improve their bargaining power as to be similarly situated to  
          large districts.

           Unbundled components  :   This bill requires 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 California Department of Education  
          (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.    

           Digital database  : This bill permits a school district that has  
          purchased instructional materials in digital format to create a  
          district-wide online digital database for classroom use  
          consistent with an online security system that is mutually  
          agreed on by the publisher and the school district.   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, this provision is not necessary to permit  
          the school district from taking these actions, but is instead  
          aimed at encouraging the publishers and manufacturers to agree  
          to such a system.  The committee may wish to consider whether  
          this language may be construed to allow unlimited use and  








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          reproduction of instructional content, without compensation to  
          the publishers, authors, or third-party contributors.   


           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 was  
          passed out of the Assembly Education Committee by a vote of 7-0  
          and was passed by the Senate Education Committee on June 5 by a  
          vote of 9-0.

          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.   
          This measure is currently pending in this committee.  

          Prior legislation  .  SB 1154 (Walters) of 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) of  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  








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

          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, 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 1548 (Pavley) (Chapter 1717, Statutes of 2006) requires the  
          CDE to establish a pilot program of 12 schools to request  
          publishers make instructional materials in electronic multimedia  
          format available for purchase.  Participating schools would be  
          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.  This program will be repealed on  
          January 1, 2016.

          AB 1010 (Pavley) of 2004, would have required 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.
          
           REGISTERED SUPPORT / OPPOSITION  :








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           Support 
           
          Association of California School Administrators (Sponsor)
          Junior Leagues of California
          Los Angeles County Office of Education
          San Francisco Unified School District
           
          Opposition 
           
          Association of American Publishers, Inc.

           Analysis Prepared by  :    Jill Rice / ED. / (916) 319-2087