On January 1, 2013, California legislation was enacted which directed the California Community Colleges (CCC), the California State University (CSU), and the University of California (UC) Intersegmental Council of Academic Senates (ICAS) to establish the California Open Education Resource Council through Senate Bill (SB) 1052 and directed the CSU to establish the California Digital Open Source Library (CDOSL) through SB 1053 . The bills were authored by Senator Darryl Steinberg and established the goal of making higher education in California more affordable by providing faculty and students access to free and lower-cost instructional materials. The CSU was also designated as the administrator of the state matching funds in accordance to SB 1028 (in SEC. 5, Section 69999.6) :
(f) (1) Of the funds transferred to the General Fund pursuant to paragraph (1) of subdivision (d), five million dollars ($5,000,000) is hereby appropriated to the Chancellor of the California State University, without regard to fiscal years, to fund the establishment and administration of the California Open Education Resources Council and the California Digital Open Source Library, and the development or acquisition of open education resources, or any combination thereof, pursuant to legislation enacted in the 2011–12 Regular Session of the Legislature, provided that the chancellor may provide reimbursement to the California Community Colleges and the University of California for costs those segments, or their representatives, incur in association with the activities described in this paragraph.
(2) Moneys, or a portion of moneys, appropriated pursuant to paragraph (1) shall not be encumbered unless at least 100 percent of that amount encumbered is matched by private funds. Moneys appropriated pursuant to paragraph (1) that are not matched by private funds shall revert to the Golden State Scholarshare Trust for purposes of the Governor’s Scholarship Programs.
The California State University, Office of the Chancellor submitted and was awarded grants from the William and Flora Hewlett Foundation and the from the Bill and Melinda Gates Foundation which provided the private funds to release the state matching funds for this project.