Bill Summary – FastDemocracy

SB 432
                       Department of Legislative Services
                               Maryland General Assembly
                                     2021 Session
                            FISCAL AND POLICY NOTE
                                 Enrolled - Revised
Senate Bill 432               (Senator King)
Education, Health, and Environmental Affairs                                 Ways and Means
            Public Libraries - Electronic Literary Product Licenses - Access
This bill requires a publisher who offers to license an electronic literary product to the
public to also offer to license the electronic literary product to public libraries in the State
on reasonable terms that would enable public libraries to provide library users with access
to the electronic literary product. Violation of the bill’s requirement is an unfair, abusive,
or deceptive trade practice under the Maryland Consumer Protection Act (MCPA), subject
to MCPA’s civil and criminal penalty provisions. The bill takes effect January 1, 2022.
                                     Fiscal Summary
State Effect: The bill’s imposition of existing penalty provisions does not have a material
impact on State finances or operations. The Office of the Attorney General, Consumer
Protection Division can handle the bill’s requirements with existing resources.
Local Effect: Local public libraries may realize cost savings on digital publications,
thereby allowing funds to be used to purchase more digital publications or for other
purposes. Revenues are not affected.
Small Business Effect: Minimal or none.
                                          Analysis
Bill Summary: The terms of a license offered pursuant to the bill’s requirement must
include:
      a limitation on the number of users a public library may simultaneously allow to
       access an electronic literary product;
      a limitation on the number of days a public library may allow a user to access an
       electronic literary product; and
      the use of technological protection measures that would prevent a user from
       (1) maintaining access to an electronic literary product beyond the specified access
       period, and (2) allowing other users to access an electronic literary product.
Furthermore, any license terms may not include a limitation on the number of electronic
literary product licenses a public library may purchase on the same date the electronic
literary product is made available to the public.
Current Law: State law does not regulate electronic literary product licensing for public
libraries.
Maryland Consumer Protection Act
An unfair, abusive, or deceptive trade practice under MCPA includes, among other acts,
any false, falsely disparaging, or misleading oral or written statement, visual description,
or other representation of any kind, which has the capacity, tendency, or effect of deceiving
or misleading consumers. The prohibition against engaging in any unfair, abusive, or
deceptive trade practice encompasses the offer for or actual sale, lease, rental, loan, or
bailment of any consumer goods, consumer realty, or consumer services; the extension of
consumer credit; the collection of consumer debt; or the offer for or actual purchase of
consumer goods or consumer realty from a consumer by a merchant whose business
includes paying off consumer debt in connection with the purchase of any consumer goods
or consumer realty from a consumer.
The Consumer Protection Division is responsible for enforcing MCPA and investigating
the complaints of aggrieved consumers. The division may attempt to conciliate the matter,
issue a cease and desist order, or file a civil action in court. A merchant who violates MCPA
is subject to a fine of up to $10,000 for each violation and up to $25,000 for each repetition
of the same violation. In addition to any civil penalties that may be imposed, any person
who violates MCPA is guilty of a misdemeanor and, on conviction, is subject to a fine of
up to $1,000 and/or imprisonment for up to one year.
Local Expenditures: The Maryland State Library Agency (MSLA) advises that many
popular book titles are not available for public libraries to license at the same time the
electronic books are made available to the public due to restrictions placed on sales by
large publishers such as Amazon.com and Audible. In addition, public libraries are charged
significantly higher amounts to license the same electronic books. By requiring publishers
to license content to public libraries in the State on reasonable terms, MSLA advises the
SB 432/ Page 2
bill may result in cost savings to local public libraries. As a result, local libraries may be
able to redirect funds to other purposes, such as purchasing additional high-demand titles.
                                Additional Information
Prior Introductions: None.
Designated Cross File: HB 518 (Delegate Dumais) - Ways and Means.
Information Source(s): Maryland State Library Agency; Department of Legislative
Services
Fiscal Note History:      First Reader - February 4, 2021
rh/rhh                    Third Reader - March 29, 2021
                          Enrolled - May 7, 2021
                                 Revised - Amendment(s) - May 7, 2021
Analysis by: Eric F. Pierce                             Direct Inquiries to:
                                                        (410) 946-5510
                                                        (301) 970-5510
SB 432/ Page 3
Statutes affected: 
Text - First - Public Libraries - Electronic Book Licenses - Access: 23-701 Education, 23-702 Education
Text - Third - Public Libraries - Electronic Book Licenses - Access: 23-701 Education, 23-702 Education
Text - Enrolled - Public Libraries - Electronic Literary Product Licenses - Access: 23-701 [], 23-702 []