SB 148 — AN ACT MAKING CERTAIN TERMS IN ELECTRONIC BOOK AND DIGITAL AUDIOBOOK LICENSE AGREEMENTS OR CONTRACTS UNENFORCEABLE.

Senate General Assembly SubstituteFile Bill No.

14848 February Session, 2024 ANSubstitute ACTSenate MAKINGBill CERTAINNo. TERMS IN ELECTRONIC BOOK AND DIGITAL AUDIOBOOK LICENSE AGREEMENTS OR CONTRACTS UNENFORCEABLE.

148 Senate, March 19, 2024 The Committee on Planning and Development reported through SEN.

RAHMAN of the 4th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT MAKING CERTAIN TERMS IN ELECTRONIC BOOK AND DIGITAL AUDIOBOOK LICENSE AGREEMENTS OR CONTRACTS UNENFORCEABLE.

(2) "Digital audiobook" means a sound recording of a reading of any literary productionthat hasbeenhasbeenconvertedinto convertedinto or publishedinadigital audio file that may be listened to on a computer or portable electronic device;

(4)sSB148 "Portable/ electronicFile device"No. means any self-contained electronic device for personal use for communicating, reading, viewing, listening, playing video games or computing, including, but not limited to, a mobile telephone, tablet computer, electronic book reader and other similar devices;

(5)48 "Library"1 includessSB148 (A)File any public library, public elementary LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00148-R01 of 5 SB.docx Substitute Bill No.

14848 school(4) library,"Portable secondaryelectronic schooldevice" library,means tribalany library,self-contained academicelectronic library,device researchfor librarypersonal oruse publicfor archivecommunicating, thatreading, isviewing, fundedlistening, (i)playing directlyvideo orgames indirectly, in whole or incomputing, part, during a fiscal year by the state or a political subdivision of the state, including, but not limited to, matchinga expenditures,mobile grants,telephone, loans,tablet bonding,computer, insuranceelectronic orbook guarantees,reader and (ii)other forsimilar thedevices; duration of the fiscal year after the receipt of such funding and the fiscal year next succeeding;

(5) "Library" includes (A) any public library, public elementary school library, secondary school library, tribal library, academic library, research library or public archive that is funded (i) directly or indirectly, in whole or in part, during a fiscal year by the state or a political subdivision of the state, including, but not limited to, matching expenditures, grants, loans, bonding, insurance or guarantees, and (ii) for the duration of the fiscal year after the receipt of such funding and the fiscal year next succeeding;

and (11) "Loan period" means the period of time commencing with the creationsSB148 and/ transmissionFile byNo. a library to a borrower of a copy of any electronic literary material and concluding with the deletion of such copy by the library, as determined by the library.

(b)48 The2 provisionssSB148 ofFile this section shall apply to any contract or license agreement entered into or renewed on and after July 1, 2026, by a library LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00148-2 of 5 R01-SB.docx } Substitute Bill No.

14848 increation theand statetransmission withby a publisherlibrary forto thea licenseborrower of a copy of any electronic literary material.material and concluding with the deletion of such copy by the library, as determined by the library.

(b) The provisions of this section shall apply to any contract or license agreement entered into or renewed on and after July 1, 2026, by a library in the state with a publisher for the license of any electronic literary material.

or (7)sSB148 Requires/ theFile libraryNo. to violate the provisions of section 11-25 of the general statutes.

48 3 sSB148 File No.

48 (7) Requires the library to violate the provisions of section 11-25 of the general statutes.

LCO(1) {\\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00148-A 3limitation on the number of 5borrowers R01-SB.docxthe }library Substitutemay Billallow No.to have simultaneous access to any electronic literary material;

148 (1) A limitation on the number of borrowers the library may allow to have simultaneous access to any electronic literary material;

Section 1 July 1, 2026 New section StatementsSB148 of/ LegislativeFile Commissioners:No.

48 4 sSB148 File No.

48 Statement of Legislative Commissioners:

LCOPD {\\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00148-Joint 4Favorable ofSubst. 5 R01-SB.docx } Substitute Bill No.

148-LCO PDsSB148 Joint/ FavorableFile Subst.No.

-LCO48 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00148- 5 ofsSB148 5File R01-SB.docxNo. }

48 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 25 $ FY 26 $ FY 27 $ Library, CT State GF - Potential None None See Below Savings Higher Education Constituent Various - None None See Below Units Potential Savings Attorney General GF - Potential None None See Below Revenue Gain Note:

GF=General Fund;

Various=Various Municipal Impact:

Municipalities Effect FY 25 $ FY 26 $ FY 27 $ Various Municipalities;

Various Potential None None See Below Local and Regional School Savings Districts Explanation Beginning in FY 27, the bill prohibits certain licensure and contract agreements between libraries and electronic book publishers and makes violations an unfair trade practice.

To the extent the bill produces e-book lending terms that are more favorable to libraries, the bill may result in a savings beginning in FY 27 to publicly funded entitiesstatewidethatprovidee-books,including the Connecticut State Library (CSL), the constituent units, various other state agencies, municipalities, and local and regional boards of education.

Some of the contracts include terms that the bill prohibits, such as restrictions on interlibrary loaning.

The bill's removal of those terms sSB148 / File No.

48 6 sSB148 File No.

48 potentially results in savings associated with less costly e-book acquisition, as well as expanded interlibrary loan access.

The extent of the potential savings depends on contract terms, the cost differential between e-books and traditional books, and the extent to which interlibrary loan access reduces a library's need to independently purchase content.