This bill establishes regulations for contracts related to the procurement and licensing of electronic literary materials between public libraries and publishers or distributors. It specifically prohibits such contracts from including provisions that would limit the library's operational and lending functions, such as restricting the library's ability to license materials, make preservation copies, or loan materials through interlibrary systems. Additionally, the bill ensures that libraries can disclose contract terms to other libraries and relevant authorities, and it prevents any contractual requirements that would compel libraries to violate existing laws regarding the confidentiality of library records.

Violations of this act are classified as unfair competition and deceptive practices under New Jersey's consumer fraud act, allowing libraries, borrowers, or the Attorney General to seek relief. Furthermore, any contracts that contain prohibited provisions are deemed unconscionable and unenforceable, with any waivers of these provisions also considered void. The bill takes effect immediately and applies to contracts entered into after its enactment, while existing contracts will be subject to these provisions upon renewal.