Certain terms in libraries' electronic book and digital audiobook license agreements or contracts prohibited.

HF 3698 prohibits publishers from including certain restrictive terms in license agreements for libraries' electronic books and digital audiobooks. It directly affects Minnesota public libraries, school libraries, and the Minitex network by banning clauses that prevent libraries from lending digital materials - such as restrictions on interlibrary loans or limiting how materials can be shared. The law requires contracts to allow libraries to perform standard lending functions, including loaning materials via digital systems. It becomes effective 60 days after Minnesota’s secretary of state confirms other states with at least 7 million combined population have similar laws.