By: Ellis, et al. S.B. No. 145 (In the Senate - Filed November 10, 2008; February 10, 2009, read first time and referred to Committee on Higher Education; April 29, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 4, Nays 0; April 29, 2009, sent to printer.) COMMITTEE SUBSTITUTE FOR S.B. No. 145 By: West A BILL TO BE ENTITLED AN ACT relating to the sale by textbook publishers of bundled instructional material for use by students at public institutions of higher education; providing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.9701 to read as follows: Sec. 51.9701. TEXTBOOK BUNDLES. (a) In this section: (1) "Coordinating board" means the Texas Higher Education Coordinating Board. (2) "Institution of higher education" has the meaning assigned by Section 61.003. (3) "Textbook" means a printed book published primarily for the instruction of postsecondary students. (4) "Textbook bundle" means a textbook offered for sale in combination with other instructional material, such as: (A) additional printed material; (B) a computer disk; (C) website access; or (D) electronically distributed material. (5) "University-affiliated bookstore" means a store that: (A) sells instructional material, regardless of whether the store is located on the campus of an institution of higher education; and (B) is operated by or with the approval of the institution through ownership, a management agreement, a lease or rental agreement, or otherwise. (b) A publisher that offers a textbook bundle for sale directly to students enrolled at an institution of higher education or to a university-affiliated bookstore for resale shall: (1) also offer for sale to the students or bookstore, as applicable, each individual item of instructional material as a separate, unbundled item; and (2) price the individual items in the textbook bundle so that the total cost of purchasing all of the items included in the textbook bundle individually would be the same, or as reasonably close to the same as practicable, as the price of the textbook bundle. (c) An institution of higher education shall: (1) maintain a record of any publisher that violates Subsection (b); and (2) submit the record to the coordinating board, in the time and manner established by coordinating board rule, to use in determining whether to assess an administrative penalty under Subsection (d). (d) The coordinating board shall adopt rules under which the coordinating board may impose a reasonable administrative penalty against a publisher that violates this section. The rules must require the coordinating board to provide for a hearing to determine whether a penalty is to be imposed and the amount of any penalty. The coordinating board shall base the amount of any penalty on: (1) the seriousness of the violation; (2) any history of a previous violation; (3) the amount necessary to deter a future violation; (4) any effort to correct the violation; and (5) any other matter justice requires. (e) The attorney general may bring an action to collect an administrative penalty that is not paid as directed by the coordinating board. (f) Revenue collected from administrative penalties imposed under this section shall be deposited to the credit of the general revenue fund and may be appropriated only to fund the TEXAS grant program administered under Subchapter M, Chapter 56. SECTION 2. The changes in law made by this Act apply only to instructional material offered for sale on or after September 1, 2010. SECTION 3. This Act takes effect January 1, 2010. * * * * *