1-1     By:  Hochberg (Senate Sponsor - Sibley)                H.B. No. 992
 1-2           (In the Senate - Received from the House March 26, 2001;
 1-3     March 27, 2001, read first time and referred to Committee on
 1-4     Education; April 23, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 8, Nays 0;
 1-6     April 23, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 992                   By:  Sibley
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to circumstances under which a publisher or manufacturer
1-11     of textbooks must maintain or arrange for a textbook depository in
1-12     this state.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Section 31.151(a), Education Code, is amended to
1-15     read as follows:
1-16           (a)  A publisher or manufacturer of textbooks:
1-17                 (1)  shall furnish any textbook the publisher or
1-18     manufacturer offers in this state, at a price that does not exceed
1-19     the lowest price at which the publisher offers that textbook for
1-20     adoption or sale to any state, public school, or school district in
1-21     the United States;
1-22                 (2)  shall automatically reduce the price of a textbook
1-23     sold for use in a school district or open-enrollment charter school
1-24     to the extent that the price is reduced elsewhere in the United
1-25     States;
1-26                 (3)  shall provide any textbook or ancillary item free
1-27     of charge in this state to the same extent that the publisher or
1-28     manufacturer provides the textbook or ancillary item free of charge
1-29     to any state, public school, or school district in the United
1-30     States;
1-31                 (4)  shall guarantee that each copy of a textbook sold
1-32     in this state is at least equal in quality to copies of that
1-33     textbook sold elsewhere in the United States and is free from
1-34     factual error;
1-35                 (5)  may not become associated or connected with,
1-36     directly or indirectly, any combination in restraint of trade in
1-37     textbooks or enter into any understanding or combination to control
1-38     prices or restrict competition in the sale of textbooks for use in
1-39     this state;
1-40                 (6)  shall:
1-41                       (A)  maintain a depository in this state or
1-42     arrange with a depository in this state to receive and fill orders
1-43     for textbooks, other than on-line textbooks or on-line textbook
1-44     components consistent with State Board of Education rules; or
1-45                       (B)  deliver textbooks to a school district or
1-46     open-enrollment charter school without a delivery charge to the
1-47     school district, open-enrollment charter school, or state, if:
1-48                             (i)  the publisher or manufacturer does not
1-49     maintain or arrange with a depository in this state under
1-50     Subsection (A) and the publisher's or manufacturer's textbooks and
1-51     related products are warehoused or otherwise stored less than 300
1-52     miles from a border of this state, or
1-53                             (ii)  the textbooks are on-line textbooks
1-54     or on-line textbook components;
1-55                 (7)  shall guarantee delivery of textbooks before the
1-56     opening day of school of the year for which the textbooks are
1-57     ordered if the textbooks are ordered by a date specified in the
1-58     sales contract; and
1-59                 (8)  shall submit to the State Board of Education an
1-60     affidavit certifying any textbook the publisher or manufacturer
1-61     offers in this state to be free of factual errors at the time the
1-62     publisher executes the contract required by Section 31.026.
1-63           SECTION 2.  Section 31.103(b), Education Code, is amended to
1-64     read as follows:
 2-1           (b)  A requisition for textbooks for the following school
 2-2     year shall be based on the maximum attendance reports under
 2-3     Subsection (a), plus an additional 10 percent, except as otherwise
 2-4     provided.  A school district or open-enrollment charter school
 2-5     shall make a requisition for a textbook on the conforming or
 2-6     nonconforming list through the commissioner to the state depository
 2-7     designated by the [each] publisher or as provided by State Board of
 2-8     Education rule, as applicable, not later than June 1 of each year.
 2-9     The designated state depository or, if the publisher or
2-10     manufacturer does not have a designated textbook depository in this
2-11     state under Section 31.151(a)(6)(B), the publisher or manufacturer
2-12     [or other storage facility] shall fill a requisition approved by
2-13     the agency at any other time in the case of an emergency.
2-14           SECTION 3.  Section 31.104(b), Education Code, is amended to
2-15     read as follows:
2-16           (b)  A school district or open-enrollment charter school may
2-17     order replacements for textbooks that have been lost or damaged
2-18     directly from:
2-19                 (1)  the textbook depository; or
2-20                 (2)  the textbook publisher or manufacturer if the
2-21     textbook publisher or manufacturer does not have a designated
2-22     textbook depository in this state under Section 31.151(a)(6)(B)
2-23     [replacements for textbooks that have been lost or damaged].
2-24           SECTION 4.  This Act takes effect September 1, 2001.
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