H.B. 1412 Summary

• Creates new chapter regulating contracts and license agreements between publishers and libraries for electronic literary materials (e-books and digital audiobooks).

• Prohibits publishers from restricting libraries' customary operational functions including licensing materials, using technological protections, making preservation copies, and interlibrary loan systems.

• Prohibits publishers from restricting libraries' lending functions including determining loan periods, limiting the number of licenses after public release, charging per-circulation fees, and restricting total loan numbers; requires library pricing not exceed public pricing under federal law.

• Deems contracts with prohibited provisions unfair or deceptive acts under Hawaii law, making them void and unenforceable; allows libraries, library officers, and borrowers to bring enforcement actions.

• Prohibits libraries from printing or preparing physical copies of purchased electronic literary materials; exempts existing contracts from retroactive application.