OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-1234 AN ACT PROHIBITING LIBRARIES FROM AGREEING TO CERTAIN TERMS IN ELECTRONIC BOOK AND DIGITAL AUDIOBOOK LICENSE AGREEMENTS OR CONTRACTS. Primary Analyst: DD 3/18/25 Contributing Analyst(s): CF, LG Reviewer: JS OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 26 $ FY 27 $ Library, CT State GF - Potential Savings None See Below Constituent Units of Higher Education OF - Potential Savings None See Below Note: GF=General Fund; OF= Other Funds Municipal Impact: Municipalities Effect FY 26 $ FY 27 $ Various Municipalities; Local and Regional School Districts Potential Savings None See Below Explanation The bill results in a potential savings annually beginning in FY 27 to the Connecticut State Library (CSL), municipal libraries, and libraries operated by local and regional school districts and the constituent units of higher education. It does so by prohibiting certain provisions in licensure and contract agreements between libraries and electronic book publishers. To the extent the bill produces e-book lending terms that are more favorable to libraries, the bill may result in a savings beginning in FY 27 to publicly funded entities statewide that provide e-books. As an illustration: In FY 25, it is anticipated that CSL will spend approximately $196,700 on e-book content. Of that amount, it is estimated that $20,600 2025SB-01234-R000132-FN.DOCX Page 2 of 2 is associated with repurchasing content with expired licenses. The bill prohibits e-book contracts from including restrictions on the duration of such licenses unless certain conditions are met. The extent of the potential savings depends on contract terms, the cost differential between e-books and traditional books, and the extent to which interlibrary loan access reduces a library's need to independently purchase content. The Out Years The ongoing fiscal impact identified above would continue into the future subject to inflation and contract terms.