A Report on the Feasibility of Textbook Rental - IBHE

APPENDIX ELegislationFederal. The U.S. House Committee on Education and the Workforce has requested the U.S.Department of Education’s Advisory Committee on Student Financial Assistance (ACSFA) to conduct aone-year study of college textbook costs, the impact on students, and affordability recommendations. TheCommittee will provide its findings and recommendations to the Committee by May 2007.Florida. House Bill 15 and Senate Bill 1554 would exempt higher education textbooks fromFlorida sales tax. An exemption would be available to “degree-seeking” students. Such students would berequired to supply documentation showing that the textbooks are recommended or required. The RevenueEstimating Conference estimated that a sales tax exemption for textbooks would result in a generalrevenue loss of $39.3 million for fiscal year 2007 and $43.0 million the following year. The estimatedtotal local revenue loss was estimated at $8.9 and $9.6 for fiscal years 2007 and 2008, respectively. Thebills did not make it out of committee.Illinois. In addition to Senate Resolution 692, five other legislative proposals were considered bythe Illinois 94 th General Assembly in the 2006 spring session: House Bills 3725, 3745, and 4867, HouseResolution 1080, and Senate Bill 2989. Only Senate Resolution 692 was enacted.House Bill 3725 would have exempted state sales tax on required textbooks of Illinois communitycolleges and public universities. However, county and municipal sales tax would continue to be collectedat a 1.25 percent rate.House Bill 3745 would have required the Illinois Board of Higher Education to create a textbookrental program for Illinois community colleges and public universities. Institutions choosing toparticipate in a rental program would have received a grant to cover start up costs. This bill would haveprovided students with the option to purchase or rent textbooks. A 20 to 40 percent discount would havebeen available to students wishing to purchase materials. The program would have begun with freshmanand sophomore level classes, and upper division classes would have been added at a later date.House Bill 4867 would have created the Textbook Pricing and Access Act by requiring publishersto disclose bundled materials, supplemental materials, and textbook prices to faculty members of highereducation institutions. The bill also would have required bundled materials to be sold separately.Bundling occurs when supplemental materials, such as online tutorials, are packaged with a textbook.When placing a textbook order, faculty members would be required to provide a written statement withthe required textbook and the earliest edition which may be purchased. In addition, the bookstore wouldbe required to post a listing of all textbooks and supplemental materials, including the InternationalStandard Book Numbers (ISBN), on the institution’s website or at the college bookstore if no websiteexists.House Resolution 1080 would have required the IBHE to conduct a study on the cost andfeasibility of establishing textbook rental programs at Illinois community colleges and public universities.Senate Bill 2989 would have mandated the Illinois Board of Higher Education to establish atextbook rental program for Illinois public universities. The textbook rental program would begin in2008-2009 academic year at all Illinois public universities.-66-