HF 466 (LSB 1345YH (1) 91)

HOUSE FILE 466

BY  RINKER

A BILL FOR

An Act relating to contracts between a publisher and a library for electronic literary materials, and providing civil penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  554I.1  Definitions.
   For purposes of this section, unless the context otherwise requires:
   1.  “Aggregator” means a person in the business of licensing access to electronic literary material collections, including from multiple publishers.
   2.  “Borrower” means a person, including another library, to whom a library loans media of any type.
   3.  “Digital audiobook” means a sound recording of a reading of a literary production that has been converted into, or published in, a digital audio file that may be listened to on an electronic device.
   4.  “Electronic book” means a text document converted into, or published in, a digital format that may be read on an electronic device.
   5.  “Electronic literary material” means a digital audiobook or electronic book.
   6.  “Library” means a public library, a public school library, a tribal library, an academic library, a research library, public archives, or the state library.
   7.  “Loan” means the transmission by a library to a borrower of a copy of electronic literary materials and the deletion of the copy of the electronic literary materials by the library at a time determined by the library.
   8.  “Publisher” means a person in the business of manufacturing, promulgating, licensing, or selling books, audiobooks, journals, magazines, newspapers, or other literary productions, including electronic literary materials. “Publisher” includes an aggregator who enters into a contract with a library for the purpose of providing materials for purchase or license from a publisher.
    Sec. 2.  NEW SECTION.  554I.2  Scope.
   This chapter shall apply to a contract or license agreement offered, entered into, or renewed by a publisher for the license of electronic literary materials to a library in the state on or after July 1, 2025.
    Sec. 3.  NEW SECTION.  554I.3  Contract or license requirements.
   1.  A contract or license agreement between a publisher and a library shall not preclude, limit, or restrict the library from performing customary operational or lending functions, and shall not contain a provision that does any of the following:
   a.  Prohibits the library from loaning certain electronic literary materials, including through an interlibrary loan system.
   b.  Restricts the length of time a library may loan certain electronic literary materials, or restricts the number of times the library may loan certain electronic literary materials over the course of the license agreement.
   c.  Limits the number of electronic literary material licenses the library may purchase on the same date the electronic literary material is made available for purchase by the public.
   d.  Prohibits the library from making nonpublic preservation copies of electronic literary materials.
   e.  Restricts the library from disclosing the terms of the contract or license agreement to any other library in the state.
   f.  Restricts the duration of the contract or license agreement unless the publisher has also offered the library a contract or license agreement that is any of the following:
   (1)  Based on a pay-per-use model.
   (2)  Provides for the perpetual public use of the electronic literary material upon commercially reasonable terms in consideration of the library’s mission.
   g.  Requires the library to violate section 22.7.
   2.  A contract or license agreement between a publisher and a library may require any of the following:
   a.  A limitation on the number of borrowers the library may allow to have simultaneous access to certain electronic literary materials.
   b.  The library’s reasonable use of a technological protection measure that prevents a borrower from doing any of the following:
   (1)  Maintaining access to certain electronic literary materials beyond the loan period specified in the license.
   (2)  Providing another person with access to certain electronic literary materials.
    Sec. 4.  NEW SECTION.  554I.4  Enforcement —— penalties.
   If the attorney general has reasonable belief that a publisher is in violation of this chapter, the attorney general has the sole authority to bring civil action to provide for all of the following:
   1.  Enjoinment of further violations by the publisher.
   2.  Enforcement of compliance with this chapter.
   3.  Assessment of civil penalties in an amount not more than one hundred thousand dollars.
   4.  Other remedies permitted under law.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to contracts between a publisher and a library for electronic literary materials.
   The bill prohibits a contract or license agreement between a publisher and a library from precluding, limiting, and restricting the library from performing customary operational or lending functions. The contract or license agreement shall not contain a provision that prohibits the library from loaning electronic literary material (material); restricts the number of times the library may loan material over the course of the license agreement; limits the number of material licenses the library may purchase on the same date the material is made available for purchase by the public; prohibits the library from making nonpublic preservation copies of material; restricts the library from disclosing the terms of the contract or license agreement to another library in the state; restricts the duration of the contract or license agreement unless the publisher has also offered the library a contract or license agreement that is either based on a pay-per-use model or provides for the perpetual public use of the material; and requires the library to violate the provisions of Code section 22.7. “Borrower”, “electronic literary material”, “library”, “loan”, “loan period”, and “publisher” are defined in the bill.
   The bill authorizes a contract or license agreement between a publisher and a library to limit the number of borrowers the library may allow to have simultaneous access to material. The bill also authorizes a contract or license agreement between a publisher and a library to require the library’s reasonable use of a technological protection measure that prevents a borrower from maintaining access to material beyond the loan period specified in the license, or from providing another person with access to material.
   The bill authorizes the attorney general, upon reasonable belief that a publisher is in violation of the bill, to bring civil action to enjoin further violations by the publisher, enforce compliance with the bill, assess a civil penalty not to exceed $100,000 per violation of the bill, and to obtain other remedies permitted under law.