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Bill aims to restrict onerous e‑book license terms; AG and state library propose technical amendments

2258231 · February 11, 2025
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Summary

Senate Bill 757 would prohibit certain terms in license agreements between libraries and publishers for digital literary materials and create an enforcement mechanism; the Department of the Attorney General and Hawaii State Public Library System suggested amendments to align the bill with federal law and to avoid impairing existing agreements

Senate Bill 757 would require reasonable terms in license agreements for digital literary materials between libraries and publishers, define prohibited contract terms, and create enforcement remedies if a publisher offers a license containing a prohibited term.

Anne Horiuchi of the Department of the Attorney General recommended clarifying amendments to ensure consistency with federal law that grants libraries certain reproduction rights and to make clear the bill would not restrict a publisher's right to decide whether to distribute to a library. The AG also proposed a non‑impairment savings clause so that the new rules would not unintentionally invalidate existing agreements.

State Librarian Stacy Aldridge told the committee digital books are especially important in Hawaii to increase access across islands where physical collections cannot be stocked at every branch. She said libraries face licensing models that lease access to ebooks under restrictive or costly terms that can limit circulation and make digital acquisitions unaffordable for many libraries.

A number of library advocates testified in support of the bill and urged the committee to adopt the AG's technical amendments. The committee was also told that other states have tried similar legislation to address digital licensing challenges and that ongoing national conversations are under way.

The committee voted to pass SB 757 with amendments that incorporate the AG's technical suggestions and to defer the effective date to July 1, 2050. The committee recorded the recommendation as adopted with four ayes and one excused member present.

If enacted, the bill would add state‑level contractual protections for libraries purchasing or licensing digital literary materials; the AG requested language that preserves publishers's rights and avoids unintended consequences for existing contracts.