89th Legislature

HB 5515

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
HB 5515, authored by Representative Buckley and sponsored in the Senate by Senator King, seeks to strengthen pricing transparency and accountability in the procurement of instructional materials for Texas public schools and open-enrollment charter schools. The bill amends Section 31.151 of the Education Code by adding a new restriction on how freight and shipping costs may be included in the sale price of instructional materials provided by publishers or manufacturers. Specifically, the bill prohibits publishers from including freight and shipping charges that exceed the actual delivery cost, as determined by the standard published rate of the carrier. It also bars publishers from including any handling or similar fees that are not directly tied to the physical shipment of the materials.

These changes are designed to ensure that public schools are not subject to inflated or opaque shipping charges when purchasing required educational materials. By clarifying that only verifiable shipping costs may be passed along and excluding unrelated handling fees, the bill aims to protect schools and taxpayers from unnecessary or hidden expenses. HB 5515 builds on existing statutory requirements that already obligate publishers to offer Texas schools the lowest prices available nationally, deliver timely and accurate materials, and guarantee quality.

The bill does not impose new costs on school districts or publishers beyond the requirement for more accurate cost accounting, and it promotes a more equitable and competitive instructional materials market. If enacted, the law would take effect on September 1, 2025, aligning with the start of a new academic procurement cycle.

The original version and the Committee Substitute of HB 5515 are substantively the same in their policy goals and legislative language. Both versions amend Section 31.151(a) of the Texas Education Code to prohibit publishers and manufacturers of instructional materials from including excessive or unrelated shipping and handling fees in the price charged to Texas public schools and open-enrollment charter schools. Specifically, both versions establish that freight costs must not exceed the standard carrier-published rate and that handling charges not directly related to the physical shipment of materials are not allowed.

The key differences between the two versions are not in content but in formatting and legislative tracking. The Committee Substitute includes additional legislative metadata, such as the Senate sponsor (Senator King), referral history (Committee on Education K-16), and vote counts at the committee level (Yeas 10, Nays 0). These procedural elements reflect the bill’s progression through the legislative process but do not change the operative language or effect of the bill.

In summary, the Committee Substitute maintains the exact same policy language as the original, aiming to improve cost transparency and procurement fairness for instructional materials in Texas schools. The only updates are administrative in nature, confirming the bill’s advancement through the Senate with bipartisan support. No legal or substantive policy alterations were made between the two versions.
Author
Bradley Buckley
Sponsor
Phil King
Co-Sponsor
Royce West
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 5515 is not expected to result in any fiscal impact to the State of Texas. The bill imposes a new restriction on how freight and shipping costs may be calculated and included in the price of instructional materials sold to Texas public schools and open-enrollment charter schools. Specifically, it requires that such charges not exceed the actual standard shipping rate and prohibits unrelated handling fees. However, these changes relate to the pricing structure and procurement requirements placed on private publishers, not on the operational costs of state agencies.

The Texas Education Agency (TEA), which oversees instructional material contracts and compliance with procurement standards, is not expected to incur additional administrative burdens or enforcement costs as a result of this bill. The new requirement fits within TEA's existing oversight functions related to instructional material contracts, so no appropriation or staffing changes are needed.

Similarly, the bill is anticipated to have no fiscal impact on local governments, including school districts and charter schools. While the bill may affect the pricing behavior of instructional material vendors, it does not impose any new financial obligations or compliance costs on local educational entities. If anything, the bill could contribute to cost savings or improved pricing transparency for school districts by ensuring that they are not paying inflated or unrelated fees in the cost of instructional materials.

In summary, HB 5515 is a regulatory clarification aimed at preventing overcharging or hidden costs in educational material procurement, and it achieves this without creating new state expenditures or imposing costs on local school systems.

Vote Recommendation Notes

HB 5515 merits a "Yes" vote as a narrowly tailored, fiscally responsible reform that protects public education funds and promotes fair market practices in the procurement of instructional materials. The bill addresses an unintended consequence of a prior legislative action—HB 396 (86th Legislature)—which inadvertently led to increased shipping costs for school districts after lifting geographic restrictions on freight reimbursement. In response, HB 5515 amends Section 31.151(a) of the Education Code to prohibit publishers and manufacturers from inflating the cost of instructional materials through excessive or unrelated shipping and handling fees.

Specifically, the bill ensures that any freight charges included in the price of instructional materials must reflect only the actual delivery cost as determined by published carrier rates and may not include add-on charges like handling fees unless they are directly tied to the shipment of physical materials. This clarification strengthens fiscal accountability and procurement transparency, enabling school districts and charter schools to better manage taxpayer dollars without undermining their access to high-quality instructional resources.

According to the Legislative Budget Board, the bill has no fiscal impact on the state or local governments, as it regulates vendor pricing rather than imposing new administrative burdens. The Texas Education Agency will continue to oversee compliance within its existing capacity. From a liberty perspective, HB 5515 protects limited government and responsible use of public funds, while preserving free enterprise by setting reasonable boundaries on pricing practices within an open instructional materials market.

In sum, HB 5515 advances good governance and fiscal stewardship by correcting a documented problem in a targeted, enforceable way. It ensures schools are not overcharged through opaque or inflated shipping practices and aligns with Texas’s broader commitment to accountability in public education spending. Texas Policy Research recommends that lawmakers vote YES on HB 5515.

  • Individual Liberty: HB 5515 has a neutral impact on individual liberty. It does not impose restrictions on individuals or personal freedoms, nor does it enhance individual rights in a direct sense. The bill is narrowly focused on commercial practices between educational publishers and public school systems, with no effect on personal choice, expression, or freedom of association.
  • Personal Responsibility: The bill modestly supports the principle of personal responsibility within institutional and commercial contexts. It reinforces the expectation that publishers and vendors must bill schools for actual, verifiable freight costs rather than padded or opaque shipping fees. By doing so, it ensures that public schools and school administrators can better fulfill their duty to be responsible stewards of public funds, knowing that the prices they pay for instructional materials reflect actual costs rather than hidden markups.
  • Free Enterprise: HB 5515 places reasonable, transparency-based constraints on market behavior without interfering with the broader functioning of a competitive instructional materials industry. It does not regulate prices directly or cap what publishers can charge for content, but it does restrict the inclusion of inflated or unrelated shipping charges that are not clearly tied to actual delivery. This preserves fair competition and deters anti-competitive pricing tactics. While some might argue it limits vendor pricing flexibility, it does so in the service of transparency and fair dealing, consistent with free enterprise principles that oppose deceptive or monopolistic practices.
  • Private Property Rights: The bill does not interfere with private ownership or control of property. Publishers retain full rights to their intellectual property and products. The bill simply limits how certain costs can be allocated and disclosed in public-sector transactions, especially where state funds are used. It does not restrict how materials may be sold in private markets or outside of public school contracts.
  • Limited Government: HB 5515 supports the principle of limited government by correcting a specific regulatory gap rather than expanding bureaucratic control. It does not create a new agency, mandate additional state spending, or impose ongoing compliance costs on government. Instead, it refines procurement standards to ensure transparency and cost accountability in the use of public education dollars. The bill relies on clear pricing criteria—actual shipping costs based on standard carrier rates—rather than subjective discretion, further limiting the need for expansive regulatory oversight.
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