S.F. 2177 Section 1. NEW SECTION . 73B.1 Definitions. 1 For purposes of this chapter: 2 1. “Child pornography” means the same as defined in 18 3 U.S.C. §2556. 4 2. “Controlled substance” means the same as defined in 5 section 124.101. 6 3. “Digital library service” means a service that provides 7 access to digital content enabling users to find, retrieve, 8 and use library functions including but not limited to book 9 checkouts, online searches of databases, access to online 10 portals, and remote access to learning and research tools. 11 4. “Hard-core pornography” means the same as described in 12 section 728.4. 13 5. “Library provider” means the state, a state agency, a 14 city that has established a library by ordinance, a library 15 district, a public school, or a nonpublic school. 16 6. “Minor” means an individual who is under eighteen years 17 of age, or who is a student enrolled at a public school or a 18 nonpublic school. 19 7. “Nonpublic school” means the same as defined in section 20 280.2. 21 8. “Obscene material” means the same as defined in section 22 728.1. 23 9. “Public school” means the same as defined in section 24 280.2. 25 10. “Service provider” means all of the following: 26 a. An internet service provider. 27 b. An affiliate or subsidiary of an internet service 28 provider. 29 c. A business operating a search engine. 30 d. A business offering cloud computing products or services. 31 11. “Visual depiction of a minor” means the same as defined 32 in section 728.12. 33 Sec. 2. NEW SECTION . 73B.2 Digital library services 34 restrictions. 35 -1- LSB 5431XS (3) 91 dg/jh 1/ 5

S.F. 2177 1. A library provider shall not offer a digital library 1 service to a minor unless the library provider adopts policies 2 and protection measures that block, prohibit, and prevent a 3 minor from sending, receiving, viewing, or downloading child 4 pornography, hard-core pornography, obscene material, materials 5 that relate to the use of a controlled substance, and visual 6 depictions of a minor. 7 2. If a library provider contracts with a third party to 8 offer digital library services, the third party shall adopt 9 policies and measures as if the third party is a library 10 provider, and the library provider contracting with the third 11 party shall ensure the contract contains all of the following: 12 a. A clause that allows the library provider to withhold 13 payments without penalty if the third party fails to comply 14 with this section. 15 b. (1) (a) A clause that states a third party’s failure to 16 comply with this section for thirty consecutive calendar days 17 is a breach of contract. 18 (b) A clause that requires the third party to reduce the 19 amount the library provider owes for the contract by ten 20 percent of the contract’s total value if the third party fails 21 to comply with this section for thirty consecutive calendar 22 days and the third party has previously failed under the 23 contract to comply with this section. If the library provider 24 owes less than ten percent of the contract’s total value, the 25 third party shall waive further payment and return an amount 26 equal to the difference between the waived payments and ten 27 percent of the contract’s total value to the library provider. 28 (c) A clause that requires the contract to terminate and 29 for the third party to refund all paid amounts to the library 30 provider if the third party fails to comply with this section 31 for thirty consecutive calendar days and the third party has 32 previously failed under the contract to comply with this 33 section two or more times. 34 (2) Prior to withholding any payment under subparagraph 35 -2- LSB 5431XS (3) 91 dg/jh 2/ 5

S.F. 2177 (1), a library provider shall provide all of the following to 1 the third party: 2 (a) Written notice of the violation, including the nature 3 of the noncompliance; identification of the child pornography, 4 hard-core pornography, obscene material, materials that relate 5 to the use of a controlled substance, or visual depiction of a 6 minor; and how the child pornography, hard-core pornography, 7 obscene material, materials that relate to the use of a 8 controlled substance, or visual depiction of a minor was 9 accessed. 10 (b) Thirty consecutive calendar days from the date the 11 library provider provided written notice of the third party’s 12 noncompliance for the third party to present evidence that the 13 third party is compliant or to cure the noncompliance. 14 (c) After thirty consecutive calendar days from the date the 15 library provider provided written notice of the third party’s 16 noncompliance, the opportunity for the third party to seek 17 judicial determination of the third party’s contractual rights 18 in a court of competent jurisdiction. 19 3. A library provider shall report a third party’s failure 20 to comply with this section to the attorney general no later 21 than thirty consecutive calendar days from the date the library 22 provider learned of the third party’s noncompliance. A report 23 made under this subsection shall be a public record. 24 4. The attorney general shall investigate and enforce 25 compliance of this section. 26 Sec. 3. NEW SECTION . 73B.3 Limitations on liability. 27 This chapter shall not apply in any of the following 28 circumstances: 29 1. To a service provider unless the service provider was 30 directly providing a digital library service. 31 2. To digital library services used by a student enrolled in 32 an institution of higher education governed by the state board 33 of regents or a community college as defined in section 260C.2, 34 including dual-enrolled students. 35 -3- LSB 5431XS (3) 91 dg/jh 3/ 5

S.F. 2177 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to policies and protection measures a 4 library provider (provider) or third party contracting with 5 a provider must take if the provider or third party offers 6 digital library services. 7 The bill defines “digital library service” as a service that 8 provides access to digital content enabling users to find, 9 retrieve, and use library functions including but not limited 10 to book checkouts, online searches of databases, access to 11 online portals, and remote access to learning and research 12 tools. 13 The bill defines “library provider” as the state, a state 14 agency, a city that has established a library by ordinance, a 15 library district, a public school, or a nonpublic school. 16 The bill also defines “child pornography”, “controlled 17 substance”, “hard-core pornography”, “minor”, “nonpublic 18 school”, “obscene material”, “public school”, “service 19 provider”, and “visual depiction of a minor”. 20 The bill prohibits a provider from offering a digital 21 library service to a minor unless the provider adopts policies 22 and protection measures that block, prohibit, and prevent a 23 minor from sending, receiving, viewing, or downloading child 24 pornography, hard-core pornography, obscene material, materials 25 that relate to the use of a controlled substance, and visual 26 depictions of a minor. If a provider contracts with a third 27 party to offer digital library services, the third party 28 must adopt policies and measures as if the third party is a 29 provider. 30 The bill requires a provider contracting with a third party 31 for a digital library service to ensure the contract contains 32 certain clauses related to the consequences of the third 33 party’s failure to adopt the required policies and protection 34 measures, the amount of time the third party has to fix a 35 -4- LSB 5431XS (3) 91 dg/jh 4/ 5

S.F. 2177 failure or prove an act was not a failure, the notice the 1 provider must provide to the third party relating to the third 2 party’s failure, and the third party’s right to seek judicial 3 determination. 4 The bill requires a provider to report a third party’s 5 failure to comply with the bill to the attorney general no 6 later than 30 consecutive calendar days from the date the 7 provider learned of the third party’s noncompliance. A report 8 made in this way shall be a public record. 9 The bill requires the attorney general to investigate and 10 enforce compliance with the bill’s provisions. 11 The bill does not apply to a service provider, unless the 12 service provider was directly providing a digital library 13 service, and the bill does not apply to digital library 14 services used by a student enrolled in an institution of higher 15 education governed by the state board of regents or a community 16 college, including dual-enrolled students. 17 -5- LSB 5431XS (3) 91 dg/jh 5/ 5