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 limit libraries' 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 defines key terms such as "aggregator," "borrower," and "publisher," and emphasizes that any contract containing these prohibited provisions will be considered unconscionable and unenforceable.

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 require libraries to purchase materials but ensures that any new contracts entered into after the bill's effective date must comply with these regulations. Existing contracts are exempt unless they are renewed, at which point they must adhere to the new stipulations.