The proposed bill, SB 2525, aims to address issues related to ebook contracts for libraries in Rhode Island by establishing a new chapter, CHAPTER 13.4 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," and "electronic book," and outlines the rights and responsibilities of libraries in relation to these contracts.

Notably, the bill prohibits any contract provisions that would limit libraries' operational functions, including their ability to loan materials, employ technological protection measures, or make preservation copies. It also restricts provisions that would limit libraries' lending functions, such as determining loan periods, acquiring licenses at inflated prices, or imposing cost-per-circulation fees unless they are substantially lower than outright purchase costs.

Additionally, 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, the enforcement of these provisions 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.

The bill also clarifies that it does not affect existing contracts currently in force providing libraries with electronic literary products from vendors and aggregators. Overall, this legislation seeks to protect libraries and ensure equitable access to electronic literary materials as technology evolves.