BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                            John Vasconcellos, Chair
                           2003-2004 Regular Session
                                        

          BILL NO:       AB 2477
          AUTHOR:        Liu
          AMENDED:       June 9, 2004
          FISCAL COMM:   Yes            HEARING DATE:  June 23, 2004
          URGENCY:       No             CONSULTANT:Terri Mosqueda
                                                       Nancy Anton

           SUBJECT   Public higher education: textbook production and  
          pricing
          
           SUMMARY  

          This bill urges textbook publishers to take specified  
          actions to reduce the cost of college textbooks to  
          students, as specified. 

          This bill requires the Trustees of the California State  
          University (CSU) and the California Community Colleges  
          (CCC) and requests the Regents of the University of  
          California (UC) to work with their respective academic  
          senates and to encourage faculty to consider the least  
          costly practices in selecting textbooks. 

           BACKGROUND
           
          According to a study commissioned by the California Public  
          Interest Research Group, the cost of college textbooks has  
          been climbing rapidly in recent years. A study of textbook  
          costs at California and Oregon public colleges and  
          universities found that students will spend an average of  
          $898 per year on textbooks in 2003-04, compared to $642 in  
          1996-1997.

           ANALYSIS  
           
           This bill:  

          1)   Urges textbook publishes to:

               a)        Unbundle instructional materials to give  
                    students the option of buying textbooks,  




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                    workbooks and CD-ROMs separately.

               b)        Disclose the different products they sell,  
                    how the newest edition of the product is  
                    different from previous editions, and how long  
                    they intend to produce the current edition.

               c)        Give preference to paper or online  
                    supplements rather than new editions.

          2)   Requires CSU and CCC, and requests UC to work with  
               their respective academic senates to do all of the  
               following: 

               a)        Encourage faculty to consider the least  
                    costly practices in assigning textbooks, as  
                    specified.

               b)        Encourage faculty to disclose to students  
                    how certain editions of textbooks differ from  
                    previous editions and the cost to students for  
                    textbooks used in each course. 

               c)        Review procedures for faculty to inform  
                    college and university bookstores of textbook  
                    selection.

               d)        Encourage faculty to work with publishes and  
                    bookstores in creating bundles and packages that  
                    are economically sound and cost effective.

          3)   Requires college and university bookstores to disclose  
               textbook costs, on a per course basis, to faculty and  
               make this information publicly available.  

          4)   Encourages campuses to provide as many forums for  
               students to purchase college textbooks as possible, as  
               specified. 

           STAFF COMMENTS  
                
          1)    CALPIRG study.   In January 2004, CALPIRG released a  
               study entitled "Ripoff 101: How the Current Practices  
               of the Textbook Industry Drive Up the Cost of College  
               Textbooks."  This study found that students will spend  
               an average of $898 per year on textbooks in 2003-04,  




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               based on a CALPIRG survey of 521 students at seven UC  
               campuses. This represents almost 20% of the average  
               tuition and fees for in-state students at public  
               four-year colleges nationwide.

               Half of all textbooks now come "bundled" or  
               shrink-wrapped with additional materials, such as  
               CD-ROMs and workbooks. 65% of faculty "rarely" or  
               "never" use the bundled materials in their courses.  
               Textbook publishers put new editions on the market  
               frequently, often without content changes, making the  
               less expensive used textbooks obsolete and  
               unavailable. 76% of faculty report that the new  
               editions they use are justified "never" to "half the  
               time." 40% of faculty report that the new editions are  
               "rarely" to "never" justified. A new textbook costs  
               $102.44 on average, 58% more expensive than the price  
               of an average used textbook. 59% of students who  
               searched for a used book for the Fall 2003  
               quarter/semester were unable to find even one used  
               book for their classes. 87% of faculty support  
               presenting new information in a supplement instead of  
               producing a new textbook edition. 

               Attachment "A" is a 256 page paperback book (standard  
               novel length) college history book which costs $47.

          2)    Textbook selection and distribution process.   
               Generally, the college textbook selection and  
               distribution process is as follows: (a) publishers  
               produce materials,  (b) faculty select which to assign  
               from a selection list provided by publishers, (c)  
               institution department chairs approve textbook  
               selections,  (d) lists of assigned textbooks are  
               submitted to bookstores, (e) bookstores order and  
               stock based on faculty estimates and (6) students  
               purchase their books from bookstore, off-campus stores  
               or online.

          3)    Concern with legislative findings.  Opponents have  
               expressed concern over the legislative findings in  
               this bill, which directly quote the Cal-PIRG study.  
               Opponents assert that "many reputable and independent  
               research firms have compiled data that contradicts the  
               CAL-PIRG report."  The author and opponents are  
               working towards drafting language that best reflects  




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               the current reality of the college textbook market. 

          4)    What about Private and Independent Colleges ?  Should  
               the bill be amended so that its provisions apply to  
               private and independent colleges and universities? 

           SUPPORT
           
          California Federation of Teachers
          California Student Public Interest Research Group
          California State Student Association
          City College of San Francisco
          City of Los Angeles
          University of California Student Association

           OPPOSITION

           Pearson Education