By Hochberg                                            H.B. No. 992
         Substitute the following for H.B. No. 992:
         By Dunnam                                          C.S.H.B. No. 992
                                A BILL TO BE ENTITLED
 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 maintain a depository in this state or
 2-9     arrange with a depository in this state to receive and fill orders
2-10     for textbooks, consistent with State Board of Education rules, or
2-11     deliver textbooks without delivery charge to the receiving school;
2-12                 (7)  shall guarantee delivery of textbooks before the
2-13     opening day of school of the year for which the textbooks are
2-14     ordered if the textbooks are ordered by a date specified in the
2-15     sales contract; and
2-16                 (8)  shall submit to the State Board of Education an
2-17     affidavit certifying any textbook the publisher or manufacturer
2-18     offers in this state to be free of factual errors at the time the
2-19     publisher executes the contract required by Section 31.026.
2-20           SECTION 2. Section 31.103(b), Education Code, is amended to
2-21     read as follows:
2-22           (b)  A requisition for textbooks for the following school
2-23     year shall be based on the maximum attendance reports under
2-24     Subsection (a), plus an additional 10 percent, except as otherwise
2-25     provided.  A school district or open-enrollment charter school
2-26     shall make a requisition for a textbook on the conforming or
2-27     nonconforming list through the commissioner to the state depository
 3-1     designated by the [each] publisher or as provided by State Board of
 3-2     Education rule, as applicable, not later than June 1 of each year.
 3-3     The designated state depository or publisher or manufacturer, if
 3-4     the publisher or manufacturer delivers a designated textbook free
 3-5     of delivery charge, [or other storage facility] shall fill a
 3-6     requisition approved by the agency at any other time in the case of
 3-7     an emergency.
 3-8           SECTION 3. Section 31.104(b), Education Code, is amended to
 3-9     read as follows:
3-10           (b)  A school district or open-enrollment charter school may
3-11     order replacements for textbooks that have been lost or damaged
3-12     directly from:
3-13                 (1)  the textbook depository; or
3-14                 (2)  the textbook publisher or manufacturer if the
3-15     textbook publisher or manufacturer does not charge for delivery of
3-16     the textbook [replacements for textbooks that have been lost or
3-17     damaged].
3-18           SECTION 4.  This Act takes effect September 1, 2001.