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

This bill prohibits public libraries from entering contracts with publishers or distributors that include certain restrictive terms for electronic books and audiobooks. It directly affects public libraries (including municipal, school, and university libraries funded by public money) by blocking provisions that would limit their ability to lend materials, set loan periods, pay reasonable fees, or share contract terms with other libraries or the government. Key protections include banning fees per circulation unless significantly cheaper than buying outright, preventing restrictions on loan frequency or duration, and ensuring libraries can maintain normal operations like digital preservation. Violations would be treated as consumer fraud under New Jersey law, and any contract containing prohibited terms would be unenforceable. The law applies immediately to new contracts but does not affect existing agreements.