IA SF2177

Requires library providers offering digital library services to minors to adopt policies that block access to child pornography, hard-core pornography, obscene material, controlled substance-related content, and visual depictions of minors.

Applies to state agencies, cities with libraries, library districts, public schools, and nonpublic schools that provide digital services including book checkouts, database searches, online portals, and remote learning tools.

Mandates that third-party contractors providing digital library services must comply with the same content blocking requirements as library providers.

Establishes escalating penalties for non-compliant third-party contractors: payment withholding after 30 days of noncompliance, 10% contract reduction for repeat violations, and full contract termination with refund after three or more violations.

Requires library providers to give third parties written notice of violations and 30 days to present evidence of compliance or cure the noncompliance before penalties apply.