This bill aims to protect public libraries in New Jersey by prohibiting certain restrictive provisions in contracts for the procurement and licensing of electronic literary materials, such as digital audiobooks and e-books. Specifically, it disallows contracts that preclude libraries from performing customary operational and lending functions, restrict their ability to disclose contract terms, or compel them to violate existing laws regarding the confidentiality of library records. The bill also emphasizes that any contracts containing these prohibited provisions are considered unconscionable and unenforceable, and any waivers of these provisions are void.

Additionally, the bill establishes that violations of its provisions will be treated as unfair competition and deceptive practices under the New Jersey consumer fraud act, allowing libraries, borrowers, or the Attorney General to seek relief. It clarifies that the bill does not apply to existing contracts unless they are renewed, ensuring that the new protections will be implemented for future agreements. Overall, the legislation seeks to enhance the operational autonomy of public libraries in their dealings with publishers and distributors of electronic literary materials.