The proposed bill, HB 7606, aims to address issues related to ebook contracts for libraries in Rhode Island by establishing a new chapter, Chapter 13.4, titled "Library Ebook Contracts," within Title 6 of the General Laws. This chapter ensures that all contracts between libraries and publishers or aggregators for licensing electronic literary materials are governed by Rhode Island law. It includes definitions for key terms such as "aggregator," "borrower," "digital audiobook," "electronic book," and "electronic literary materials."

The bill outlines the rights and responsibilities of libraries in relation to these contracts, specifically prohibiting any contract provisions that would preclude, limit, or restrict libraries from performing customary operational functions. This includes the ability to loan materials, employ technological protection measures, make non-public preservation copies, and loan electronic literary materials via interlibrary loan systems. Additionally, it restricts provisions that would limit libraries' ability to determine loan periods, acquire licenses at inflated prices, or impose cost-per-circulation fees unless they are substantially lower than outright purchase costs.

The bill establishes that any contract containing prohibited provisions is considered unconscionable and unenforceable under Rhode Island law. It allows for remedies against unfair and deceptive practices, enabling libraries, library officers, or borrowers to seek enforcement. However, enforcement of this chapter will be contingent upon the attorney general's determination that at least two other states have enacted similar laws that collectively represent a combined population of at least ten million persons, as determined by the most recent United States decennial census.

Existing contracts currently in force providing libraries with electronic literary products from vendors and aggregators will not be affected by this new legislation. The act is set to take effect upon passage.