Prohibits contracts for procurement and licensing of electronic literary materials from including certain provisions.

This bill prohibits public libraries in New Jersey from entering contracts with publishers or aggregators that include restrictive terms related to electronic literary materials (e-books and digital audiobooks). Specifically, it bans clauses that limit libraries' ability to loan materials, set loan periods, make preservation copies, use interlibrary loans, or charge cost-per-circulation fees unless significantly cheaper than outright purchase. The law also prevents restrictions on disclosing contract terms or limiting libraries' access to materials for educational use. Violations would be treated as consumer fraud under New Jersey law. The bill directly affects all public libraries, school libraries, and university libraries that receive public funding and purchase digital materials.