The bill introduces a new chapter, CHAPTER 13.4, titled "Library Ebook Contracts," to Title 6 of the General Laws, which focuses on the licensing of electronic literary materials, including ebooks and digital audiobooks, to libraries in Rhode Island. 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 their contracts with publishers and aggregators. It prohibits contract provisions that would preclude, limit, or restrict libraries from performing customary operational functions, including licensing electronic literary materials, employing technological protection measures, making non-public preservation copies, and loaning materials via interlibrary loan systems. It also ensures that libraries can determine their own loan periods and prohibits unfair pricing practices, such as requiring libraries to pay a cost-per-circulation fee that is not substantially lower than the outright purchase price.

Additionally, the bill establishes remedies for unfair and deceptive practices related to licensing agreements, allowing libraries, library officers, or borrowers to seek relief. It states that any contract containing prohibited provisions is 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 for electronic literary products are not affected by this new legislation.