The bill introduces a new chapter, CHAPTER 13.4, titled "Library Ebook Contracts," to Title 6 of the General Laws, which aims to establish regulations governing contracts between libraries and publishers or aggregators for the licensing of electronic literary materials, including ebooks and digital audiobooks. It defines key terms such as "aggregator," "borrower," "digital audiobook," "electronic book," "electronic literary materials," "libraries," "literary monograph," "loan," "loan period," "portable electronic device," "publisher," "reasonable terms," "technological protection measures," and "virtually."

The bill outlines the rights and responsibilities of libraries in relation to these contracts, specifically prohibiting contract provisions that would preclude, limit, or restrict libraries from performing customary operational functions, such as licensing electronic literary materials, employing technological protection measures, making non-public preservation copies, and loaning materials via interlibrary loan systems. It also prohibits provisions that restrict libraries' ability to loan electronic literary materials to borrowers, determine loan periods, acquire licenses at inflated prices, restrict the number of licenses, impose cost-per-circulation fees, limit the total number of loans, or restrict the ability to virtually recite text and display artwork.

Additionally, the bill provides remedies for unfair and deceptive practices related to licensing agreements, allowing libraries, library officers, or borrowers to seek enforcement. It specifies that contracts containing prohibited provisions are deemed unconscionable and unenforceable under Rhode Island law. The enforcement of this chapter is contingent upon the attorney general's determination that at least four other states have enacted similar laws, representing a combined population of at least ten million people. Existing contracts currently in force providing libraries with electronic literary products from vendors and aggregators are not affected by this new legislation.