Brief Description: Concerning cost savings on course materials for students at state universities, regional universities, and The Evergreen State College.

Sponsors: Representatives Ormsby, Sells, Kenney, Cox, Buri, Fromhold, Hasegawa, Morrell, McCoy, Upthegrove, Ericks, Darneille, Rodne, Chase, Conway, Kessler, Dunn, Green and Lantz.

Hearing Date: 1/31/06

Staff: Nina Oman (786-7152).

Background:

According to a study conducted by the United States Government Accountability Office (GAO), textbook prices have increased at twice the rate of inflation over the last two decades.

According to the GAO study, publishers produce textbooks and market them to instructors. Instructors choose textbooks for their courses and assign them to students. Bookstores stock new and used books for sale to students. Students pay retail prices for new books, or pay 75 percent of the retail price for a used book, if one is available. Through the bookstore "buyback" process, if the instructor reorders the book for a subsequent term, the student can sell the book to the bookstore for 50 percent of the new retail price. If the instructor does not reorder the book, a wholesaler may buy the used book, in which case the student will receive 5 percent to 35 percent of the new retail price. If a new edition of the book has been released, then the student is likely to receive no money in the bookstore buyback process.

According to the 2005 College Store Industry Financial Report, the average price of a new textbook is $52.36, and the average price of a used textbook is $40.01. In Washington, according to the Financial Aid Association, books and supplies are budgeted at a total of $924 for academic year 2005-06. This represents an increase of 3.1 percent from the previous year, to reflect consumer price index data collected from eight geographic regions of the state. The GAO study found that textbook prices have increased at an average of 6 percent per year in the United States. These price increases are mainly due to the increasing costs of supplemental materials designed to accompany textbooks, such as CD-ROMs. Students object to "bundling" (the practice of combining textbooks with supplemental materials) since it has made books more expensive. Publishers say that they provide these supplemental materials at the request of instructors to enhance student learning. For example, one publisher reported a $1 million investment in a CD-ROM containing three-dimensional images to assist students learning human anatomy.

Another practice that students object to is the frequent revision of textbooks. Publishers report that textbooks are generally revised every three to four years, compared with cycles of four to five years that were standard in the past. Publishers report that frequent revisions are driven by the needs of instructors, who require the most current material reflecting changes in the discipline as well as changes in teaching methods.

Each of the six public baccalaureate institutions in the state is affiliated with a bookstore.

At the University of Washington, the bookstore is incorporated and operated under a Board of Trustees with student and faculty representation. The bookstore at Washington State University is incorporated. In 2004, Barnes & Noble College Booksellers, Inc. was contracted to manage the Students Book Corporation stores at Washington State University.

The bookstores affiliated with Central Washington University, Eastern Washington University, Western Washington University, and The Evergreen State College are owned by their respective institutions and operate as self-supporting auxiliary enterprises.

Summary of Bill:

The Legislature finds that bundling of course materials is unnecessary, and that many faculty and staff select materials uninformed of the retail costs and differences between versions. The Legislature intends to give students more choice in purchasing and to encourage faculty and staff to work closely with bookstores and publishers to implement the least costly option without sacrificing educational content.

The boards of regents or trustees at the public baccalaureate institutions are directed to adopt rules requiring that affiliated bookstores provide students with the option of purchasing unbundled materials, disclose to faculty and staff the costs to students of purchasing the materials, and disclose publicly how new editions vary from previous editions. These rules must also require affiliated bookstores to actively promote and publicize book buyback programs, and disclose retail costs for course materials on a per course basis to faculty and staff, and make this information publicly available.

The rules adopted by the boards must also require faculty and staff members to consider the least costly practices in assigning course materials, such as adopting the least expensive edition when educational content is comparable, and working closely with publishers and bookstores to create packages and bundles if they deliver cost savings to students.

Appropriation: None.

Fiscal Note: Requested on January 23, 2006.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.