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HB2577
HOUSE OF REPRESENTATIVES
H.B. NO.
2577
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to Licensing of electronic Literary Material
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:
"
Chapter
Contract and License Agreements for electronic
books
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� -1
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D
efinitions.
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For purposes of this chapter:
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"Aggregator"
means any person in the business of licensing access to electronic literary
material collections that include electronic literary material from multiple
publishers.
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"Borrower"
means any person or organization, including another library, to whom a library
loans a copy of electronic literary material.
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"Digital
audiobook" means a sound recording of a reading of any literary
production, that has been converted into or published in a digital audio file
that may be listened to on a computer or portable electronic device.
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"Electronic
book" means a text document that has been converted into or published in a
digital format that may be read on a computer or portable electronic device.
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"Electronic
literary material" means any digital audiobook or electronic book.
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"Library"
includes public libraries and public elementary school or secondary school
libraries.
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"Literary
monograph" means a literary work that is published in one volume or a
finite number of volumes.
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"Loan"
means the creation and transmission by a library to a borrower of a copy of any
electronic literary material and the deletion of that copy upon the expiration
of the loan period.
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"Loan
period" means the period of time commencing with the creation and
transmission by a library to a borrower of a copy of any electronic literary
material and concluding with the deletion of that copy.
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"Portable
electronic device" 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, or other similar device.
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"Publisher"
means any person in the business of the manufacturing, promulgation, license,
or sale of books, audiobooks, journals, magazines, newspapers, or other
literary productions, including those in the form of electronic literary
materials.
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"Publisher" includes
any aggregator who enters into a contract with any library for the purpose of
providing materials for purchase or license from any publisher.
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"Technological
protection measure" means any technology that enhances the security of
loaning or circulating electronic literary materials by a library.
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"Virtually"
means transmitted to receiving parties via the Internet in such a way that the
transmission appears in front of the receiving parties on a computer, tablet,
smartphone, or electronic device.
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� -2
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Contracts between publishers and
libraries.
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(a)
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Any contract between a publisher and a
library to license electronic literary materials to the public in the State is
governed by state law.
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(b)
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No contract or license agreement entered into
between any publisher and any library shall:
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(1)
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Preclude, limit, or restrict the library from
performing customary operational functions by including any provision that
precludes, limits, or restricts:
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(A)
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The library from licensing electronic literary
materials from publishers;
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(B)
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The library's ability to employ any technological
protection measures necessary to loan electronic literary materials;
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(C)
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The library's right to make preservation
copies of the electronic literary materials; or
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(D)
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The library's right to loan electronic
literary materials via interlibrary loan systems;
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(2)
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Preclude, limit, or restrict the library from
performing customary lending functions by including any provision that:
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(A)
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Precludes, limits, or restricts the library
from loaning electronic literary materials to borrowers;
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(B)
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Restricts the library's right to determine
loan periods for licensed electronic literary materials;
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(C)
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Requires the library to acquire a license for
any electronic literary material at a price greater than that charged to the
public for the same item;
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(D)
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Restricts the number of licenses for
electronic literary materials that the library may acquire after the same item
is made available to the public;
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(E)
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Requires the library to pay a cost-per-circulation
fee to loan electronic literary materials, unless substantially lower in
aggregate than the cost of purchasing the item outright;
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(F)
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Restricts the number of times the library may
loan any electronic library material over the course of the contract or license
agreement if the contract or agreement also imposes a time-based limitation on
the duration of the library's license to such materials; or
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(G)
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Restricts or limits the library's ability to
virtually recite text and display artwork of any materials to library patrons
such that the materials would not have the same educational utility as when
recited or displayed at a library facility;
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(3)
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Restrict the library from disclosing the terms
of the contract or license agreement to any other library in the State; or
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(4)
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Require, coerce, or enable the library to
violate any law or rule protecting the confidentiality of a patron's library
records.
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Remedies.
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(a)
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An offer to license
electronic literary materials to a library that includes a provision prohibited
under section -2(b) constitutes an unfair and deceptive
practice within the meaning of section 480-2 and shall be deemed void and
unenforceable pursuant to section 480-12.
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Any remedy provided pursuant to sections 480-3.1 and 480-15.1 shall be
available for the enforcement of this chapter.
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Actions for relief pursuant to this chapter may be brought by libraries,
library officers, or borrowers.
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Parties
shall be enjoined from enforcing license agreements that include a provision prohibited
under section -2(b).
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(b)
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A contract to license electronic library
materials to a library that includes provisions prohibited under section ‑2
are unconscionable within the meaning of section 490:2-302 and shall be deemed void
and unenforceable.
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Any waiver of the
provisions of this chapter is contrary to public policy and shall be deemed void
and unenforceable."
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SECTION 2.
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If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the
invalidity does not affect other provisions or applications of the Act that can
be given effect without the invalid provision or application, and to this end
the provisions of this Act are severable.
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SECTION 3.
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This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.
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SECTION 4.
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This Act shall take effect upon its approval;
provided that enforcement of its provisions shall not commence until at least
one other state enacts a law similar in purpose to this Act regulating
contracts for the licensing of electronic literary materials to libraries.
INTRODUCED BY:
_____________________________
Report Title:
Electronic
Literary Materials; Licensing
Description:
Establishes
limits and restrictions on licensing contracts between libraries and publishers
for electronic literary materials and provides options for remedy.
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Suspends enforcement
until at least
one other state enacts a similar law.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.