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, restrict the library's ability to disclose contract terms, or compel the library to violate existing laws regarding the confidentiality of library records. The bill aims to protect the rights of public libraries in their dealings with publishers and ensure they can perform their customary functions without undue restrictions.

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