This bill aims to regulate the licensing agreements for electronic books and digital audiobooks in public libraries in Minnesota. It introduces a new section in the Minnesota Statutes, specifically section 134.52, which outlines definitions related to electronic literary materials, including terms such as "aggregator," "borrower," "digital audiobook," and "library." The bill establishes that any contract or license agreement entered into or renewed by a library with a publisher must not include provisions that limit the library's operational functions, such as prohibiting loans of electronic materials, restricting the number of loans, or preventing the library from making preservation copies.

Furthermore, the bill sets forth specific requirements for contracts, stating that libraries cannot enter into agreements that impose limitations on their ability to lend materials or disclose contract terms to other libraries. It also mandates that libraries have the option for contracts based on a pay-per-use model or perpetual public use of materials. The provisions of this section will take effect 60 days after the Secretary of State certifies that similar laws have been enacted in other states with a combined population of at least 7 million. The bill emphasizes transparency and operational freedom for libraries in their dealings with publishers.