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 contracts from including provisions that limit the library's operational and lending functions, such as licensing materials, making preservation copies, and determining loan periods. Additionally, it restricts clauses that would prevent libraries from disclosing contract terms to other libraries or the Attorney General, and it ensures that libraries are not coerced into violating existing laws regarding the confidentiality of library records.

The bill also states that any contracts containing these prohibited provisions will be considered unconscionable and unenforceable. Violations of the bill's provisions will be classified as unfair competition and deceptive practices under New Jersey's consumer fraud act, allowing libraries, borrowers, or the Attorney General to seek relief. The act will take effect immediately and will apply to contracts entered into after its effective date, while existing contracts will be subject to the new regulations upon renewal.