S.F. 2230 Section 1. NEW SECTION . 554H.1 Definitions. 1 For purposes of this section, unless the context otherwise 2 requires: 3 1. “Aggregator” means a person in the business of licensing 4 access to electronic literary material collections, including 5 from multiple publishers. 6 2. “Borrower” means a person, including another library, to 7 whom a library loans media of any type. 8 3. “Digital audiobook” means a sound recording of a reading 9 of a literary production that has been converted into, or 10 published in, a digital audio file that may be listened to on 11 an electronic device. 12 4. “Electronic book” means a text document converted into, 13 or published in, a digital format that may be read on an 14 electronic device. 15 5. “Electronic literary material” means a digital audiobook 16 or electronic book. 17 6. “Library” means a public library, a public school 18 library, a tribal library, an academic library, a research 19 library, public archives, or the state library. 20 7. “Loan” means the transmission by a library to a borrower 21 of a copy of electronic literary materials and the deletion of 22 the copy of the electronic literary materials by the library at 23 a time determined by the library. 24 8. “Publisher” means a person in the business of 25 manufacturing, promulgating, licensing, or selling books, 26 audiobooks, journals, magazines, newspapers, or other 27 literary productions, including electronic literary materials. 28 “Publisher” includes an aggregator who enters into a contract 29 with a library for the purpose of providing materials for 30 purchase or license from a publisher. 31 Sec. 2. NEW SECTION . 554H.2 Scope. 32 This chapter shall apply to a contract or license agreement 33 offered, entered into, or renewed by a publisher for the 34 license of electronic literary materials to a library in the 35 -1- LSB 5677XS (2) 90 nls/ko 1/ 4

S.F. 2230 state on or after July 1, 2024. 1 Sec. 3. NEW SECTION . 554H.3 Contract or license 2 requirements. 3 1. A contract or license agreement between a publisher and 4 a library shall not preclude, limit, or restrict the library 5 from performing customary operational or lending functions, and 6 shall not contain a provision that does any of the following: 7 a. Prohibits the library from loaning certain electronic 8 literary materials, including through an interlibrary loan 9 system. 10 b. Restricts the length of time a library may loan certain 11 electronic literary materials, or restricts the number of times 12 the library may loan certain electronic literary materials over 13 the course of the license agreement. 14 c. Limits the number of electronic literary material 15 licenses the library may purchase on the same date the 16 electronic literary material is made available for purchase by 17 the public. 18 d. Prohibits the library from making nonpublic preservation 19 copies of electronic literary materials. 20 e. Restricts the library from disclosing the terms of the 21 contract or license agreement to any other library in the 22 state. 23 f. Restricts the duration of the contract or license 24 agreement unless the publisher has also offered the library a 25 contract or license agreement that is any of the following: 26 (1) Based on a pay-per-use model. 27 (2) Provides for the perpetual public use of the electronic 28 literary material upon commercially reasonable terms in 29 consideration of the library’s mission. 30 g. Requires the library to violate section 22.7. 31 2. A contract or license agreement between a publisher and a 32 library may require any of the following: 33 a. A limitation on the number of borrowers the library 34 may allow to have simultaneous access to certain electronic 35 -2- LSB 5677XS (2) 90 nls/ko 2/ 4

S.F. 2230 literary materials. 1 b. The library’s reasonable use of a technological 2 protection measure that prevents a borrower from doing any of 3 the following: 4 (1) Maintaining access to certain electronic literary 5 materials beyond the loan period specified in the license. 6 (2) Providing another person with access to certain 7 electronic literary materials. 8 Sec. 4. NEW SECTION . 554H.4 Enforcement —— penalties. 9 If the attorney general has reasonable belief that a 10 publisher is in violation of this chapter, the attorney general 11 has the sole authority to bring civil action to provide for all 12 of the following: 13 1. Enjoinment of further violations by the publisher. 14 2. Enforcement of compliance with this chapter. 15 3. Assessment of civil penalties in an amount not more than 16 one hundred thousand dollars. 17 4. Other remedies permitted under law. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to contracts between a publisher and a 22 library for electronic literary materials. 23 The bill prohibits a contract or license agreement between 24 a publisher and a library from precluding, limiting, and 25 restricting the library from performing customary operational 26 or lending functions. The contract or license agreement 27 shall not contain a provision that prohibits the library from 28 loaning electronic literary material (material); restricts 29 the number of times the library may loan material over the 30 course of the license agreement; limits the number of material 31 licenses the library may purchase on the same date the material 32 is made available for purchase by the public; prohibits the 33 library from making nonpublic preservation copies of material; 34 restricts the library from disclosing the terms of the contract 35 -3- LSB 5677XS (2) 90 nls/ko 3/ 4

S.F. 2230 or license agreement to another library in the state; restricts 1 the duration of the contract or license agreement unless the 2 publisher has also offered the library a contract or license 3 agreement that is either based on a pay-per-use model or 4 provides for the perpetual public use of the material; and 5 requires the library to violate the provisions of Code section 6 22.7. “Borrower”, “electronic literary material”, “library”, 7 “loan”, “loan period”, and “publisher” are defined in the bill. 8 The bill authorizes a contract or license agreement between 9 a publisher and a library to limit the number of borrowers the 10 library may allow to have simultaneous access to material. The 11 bill also authorizes a contract or license agreement between a 12 publisher and a library to require the library’s reasonable use 13 of a technological protection measure that prevents a borrower 14 from maintaining access to material beyond the loan period 15 specified in the license, or from providing another person with 16 access to material. 17 The bill authorizes the attorney general, upon reasonable 18 belief that a publisher is in violation of the bill, to bring 19 civil action to enjoin further violations by the publisher, 20 enforce compliance with the bill, assess a civil penalty not to 21 exceed $100,000 per violation of the bill, and to obtain other 22 remedies permitted under law. 23 -4- LSB 5677XS (2) 90 nls/ko 4/ 4