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

This bill (S 1674) prohibits public libraries in New Jersey from entering contracts with publishers or distributors that include specific restrictive terms for digital books and audiobooks. It blocks provisions that would limit libraries’ ability to: loan materials to patrons, set loan periods, make preservation copies, use digital security tools, or share contract terms with other libraries or the state. Violations are treated as consumer fraud under New Jersey law, and contracts containing banned terms are unenforceable. The law applies only to new contracts signed after its effective date, leaving existing agreements unaffected.