1-1                                   AN ACT
 1-2     relating to circumstances under which a publisher or manufacturer
 1-3     of textbooks must maintain or arrange for a textbook depository in
 1-4     this state.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 31.151(a), Education Code, is amended to
 1-7     read as follows:
 1-8           (a)  A publisher or manufacturer of textbooks:
 1-9                 (1)  shall furnish any textbook the publisher or
1-10     manufacturer offers in this state, at a price that does not exceed
1-11     the lowest price at which the publisher offers that textbook for
1-12     adoption or sale to any state, public school, or school district in
1-13     the United States;
1-14                 (2)  shall automatically reduce the price of a textbook
1-15     sold for use in a school district or open-enrollment charter school
1-16     to the extent that the price is reduced elsewhere in the United
1-17     States;
1-18                 (3)  shall provide any textbook or ancillary item free
1-19     of charge in this state to the same extent that the publisher or
1-20     manufacturer provides the textbook or ancillary item free of charge
1-21     to any state, public school, or school district in the United
1-22     States;
1-23                 (4)  shall guarantee that each copy of a textbook sold
1-24     in this state is at least equal in quality to copies of that
 2-1     textbook sold elsewhere in the United States and is free from
 2-2     factual error;
 2-3                 (5)  may not become associated or connected with,
 2-4     directly or indirectly, any combination in restraint of trade in
 2-5     textbooks or enter into any understanding or combination to control
 2-6     prices or restrict competition in the sale of textbooks for use in
 2-7     this state;
 2-8                 (6)  shall:
 2-9                       (A)  maintain a depository in this state or
2-10     arrange with a depository in this state to receive and fill orders
2-11     for textbooks, other than on-line textbooks or on-line textbook
2-12     components, consistent with State Board of Education rules; or
2-13                       (B)  deliver textbooks to a school district or
2-14     open-enrollment charter school without a delivery charge to the
2-15     school district, open-enrollment charter school, or state, if:
2-16                             (i)  the publisher or manufacturer does not
2-17     maintain or arrange with a depository in this state under
2-18     Subsection (A) and the publisher's or manufacturer's textbooks and
2-19     related products are warehoused or otherwise stored less than 300
2-20     miles from a border of this state; or
2-21                             (ii)  the textbooks are on-line textbooks
2-22     or on-line textbook components;
2-23                 (7)  shall guarantee delivery of textbooks before the
2-24     opening day of school of the year for which the textbooks are
2-25     ordered if the textbooks are ordered by a date specified in the
2-26     sales contract; and
2-27                 (8)  shall submit to the State Board of Education an
 3-1     affidavit certifying any textbook the publisher or manufacturer
 3-2     offers in this state to be free of factual errors at the time the
 3-3     publisher executes the contract required by Section 31.026.
 3-4           SECTION 2.  Section 31.103(b), Education Code, is amended to
 3-5     read as follows:
 3-6           (b)  A requisition for textbooks for the following school
 3-7     year shall be based on the maximum attendance reports under
 3-8     Subsection (a), plus an additional 10 percent, except as otherwise
 3-9     provided.  A school district or open-enrollment charter school
3-10     shall make a requisition for a textbook on the conforming or
3-11     nonconforming list through the commissioner to the state depository
3-12     designated by the [each] publisher or as provided by State Board of
3-13     Education rule, as applicable, not later than June 1 of each year.
3-14     The designated state depository or, if the publisher or
3-15     manufacturer does not have a designated textbook depository in this
3-16     state under Section 31.151(a)(6)(B), the publisher or manufacturer
3-17     [or other storage facility] shall fill a requisition approved by
3-18     the agency at any other time in the case of an emergency.
3-19           SECTION 3.  Section 31.104(b), Education Code, is amended to
3-20     read as follows:
3-21           (b)  A school district or open-enrollment charter school may
3-22     order replacements for textbooks that have been lost or damaged
3-23     directly from:
3-24                 (1)  the textbook depository; or
3-25                 (2)  the textbook publisher or manufacturer if the
3-26     textbook publisher or manufacturer does not have a designated
3-27     textbook depository in this state under Section 31.151(a)(6)(B)
 4-1     [replacements for textbooks that have been lost or damaged].
 4-2           SECTION 4.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 992 was passed by the House on March
         22, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 992 on May 3, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 992 was passed by the Senate, with
         amendments, on May 1, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor