Bill
Bill > S4520
NJ S4520
Prohibits contracts for procurement and licensing of electronic literary materials from including certain provisions.
summary
Introduced
05/29/2025
05/29/2025
In Committee
05/29/2025
05/29/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill prohibits contracts for the procurement and licensing of electronic literary materials between public libraries and publishers, distributors, and any other entity selling or licensing electronic literary material to a public library from including certain provisions. Under the bill, a contract or license between a publisher and the governing body of a public library for the procurement or licensing of electronic literary materials is not to include a provision which: (1) precludes, limits, or restricts the library from performing customary operational functions; (2) precludes, limits, or restricts the library from performing customary lending functions; (3) restricts the public library from disclosing any terms of the contract to other public libraries, the Legislature, or the Attorney General; or (4) requires, coerces, or enables a public library to violate the provision of current law which, except in certain circumstances, prohibits the disclosure of library records which contain the names or other personally identifiable details regarding the users of the libraries. The provisions of the bill are not to apply to existing contracts, except renewal of the contract is subject to the provisions of the bill. The bill stipulates that a violation of the provisions of the bill is to be considered an unfair method of competition and unfair and deceptive acts or practices within the meaning of the New Jersey consumer fraud act. Finally, the bill stipulates that contracts to license electronic literary materials to a public library that include prohibited provisions pursuant to this act are unconscionable and are deemed unenforceable. Any waiver of the provisions of this act is to be deemed unenforceable and void.
AI Summary
This bill establishes new regulations for contracts between public libraries and publishers regarding electronic literary materials (digital audiobooks and electronic books). The bill prohibits contracts from including provisions that restrict libraries' standard operational and lending functions, such as limiting interlibrary loans, imposing unreasonable licensing fees, restricting the number of times an electronic book can be borrowed, or preventing libraries from virtually displaying text and artwork. The law also prevents publishers from including clauses that prohibit libraries from sharing contract terms with other libraries, the Legislature, or the Attorney General, or that would force libraries to violate existing privacy regulations. Any contract containing these prohibited provisions will be considered unconscionable and unenforceable, and violations can be treated as unfair trade practices under the New Jersey consumer fraud act. Importantly, the bill defines key terms like "publisher" and "public library" broadly, ensuring wide coverage, and allows libraries to pursue legal action if contract terms violate the act's provisions. The law will apply to new contracts entered into after its effective date, giving publishers and libraries time to adjust their existing agreements.
Committee Categories
Education
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Education Committee (on 05/29/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4520 |
| BillText | https://pub.njleg.gov/Bills/2024/S5000/4520_I1.HTM |
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