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SB 2525

AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- LIBRARY EBOOK CONTRACTS

2026 Regular Session Introduced by Hanna Gallo and 5 co-sponsors

Rhode Island would govern library eBook licensing terms, prohibit restrictive clauses, and allow enforcement once two other states adopt similar limits affecting 10M+ people.

06/24/2026 Effective without Governor's signature
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Bill Summary · SB 2525

Overview

SB 2525, introduced in Rhode Island for the 2026 session, aims to regulate library contracts for licensing electronic books (eBooks) and digital audiobooks. The measure sets Rhode Island law as governing law for these contracts, restricts certain contractual terms, and provides remedies to ensure libraries can continue to provide open access to materials. The act takes effect upon passage, but enforcement is contingent on a multi-state condition related to other states enacting similar protections.

Main purpose and intent

  • Protect public access to electronic materials through libraries by preventing restrictive licensing terms.
  • Ensure library operations are not hindered by unfavorable contract provisions (e.g., prohibitions on lending practices, interlibrary loans, or use of digital protection measures).
  • Incorporate Rhode Island consumer protection and unconscionability standards to address unfair licensing terms.

Key provisions and changes

  • Title and Chapter: Creates Chapter 13.4 within Rhode Island’s Commercial Law — General Regulatory Provisions, governing Library Ebook Contracts.
  • Definitions (6-13.4-1): Sets precise definitions for terms used in the chapter, including aggregator, borrower, electronic book, electronic literary materials, library, loan, loan period, publisher, reasonable terms, technological protection measures, portable electronic device, and others.
  • Governing law (6-13.4-2(a)): Any contract between a library and a publisher or aggregator for licensing electronic materials shall be governed by Rhode Island law.
  • Prohibited contract terms (6-13.4-2(b)): Contracts may not include provisions that:
    • Restrict libraries from licensing electronic materials, using technological protection measures, creating non-public preservation copies, or loaning via interlibrary loan.
    • Restrict libraries from issuing loans, setting loan periods, require licenses at prices higher than public sale price, limit license quantities, impose cost-per-circulation fees (unless overall cost is not materially higher than outright purchase), cap total loan counts or license duration (unless perpetual, reasonably priced), or limit virtual display/recitation of text and artwork.
    • Fail to allow disclosure of license terms to other libraries.
    • Force libraries to violate patron confidentiality protections.
  • Remedies (6-13.4-3):
    • Unfair practices include prohibited licensing terms and other standards under Rhode Island unfair competition/deceptive practices laws.
    • Libraries, officers, borrowers, and the attorney general may bring enforcement actions; enforcement is paused until the attorney general confirms two other states have enacted comparable limits affecting at least 10 million people combined.
    • Courts may enjoin enforcement of prohibited license provisions.
    • Violating contracts are deemed unconscionable and unenforceable; waivers of these protections are void.
  • Severability (6-13.4-4): Provisions are severable; invalid parts do not void the entire act.
  • Existing contracts (6-13.4-5): The act does not affect contracts already in force for electronic products.
  • Effective date (Section 3): Takes effect upon passage.

Who/what is affected

  • Affected parties: Rhode Island libraries (public libraries, school libraries, library consortia, and other entities serving the public or receiving public funds) and publishers or aggregators that license electronic literary materials (eBooks and digital audiobooks) to those libraries.
  • Indirect beneficiaries: Library patrons and borrowers, who would gain greater access flexibility and protection from restrictive licensing practices.
  • Regulatory/enforcement: Rhode Island Attorney General would have enforcement authority; action is contingent on a multi-state enforcement trigger.

Procedural and timeline aspects

  • Legislative path: Referred to Senate Education upon introduction (Feb 13, 2026). Scheduled for consideration in June 2026.
  • Enforcement trigger: Requires the attorney general to determine and publish that at least two other states have enacted enforceable, similar limitations on library eBook licensing terms, and those states collectively represent at least 10 million people.
  • Effective date: Immediate upon passage; however, actual enforcement begins only after the trigger is met.

Potential impact and considerations

  • Strengthens library bargaining power and protects access to digital materials by restricting onerous or non-public terms.
  • Encourages consistency with consumer protection and unconscionability standards in licensing digital content.
  • Could influence library budgeting by limiting certain cost structures (e.g., prohibiting certain per-circulation fees or license duration constraints) and prioritizing reasonable terms.
  • Implementation depends on the broader national regulatory landscape, given the enforcement trigger tied to other states’ actions.

Compiled from official sources — confirm details with the bill’s official record.

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