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Bill > S1674
NJ S1674
NJ S1674Prohibits contracts for procurement and licensing of electronic literary materials from including certain provisions.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 prohibits contracts for the procurement and licensing of electronic literary materials, such as e-books and digital audiobooks, between public libraries and entities like publishers or distributors from including certain restrictive provisions. Specifically, these contracts cannot prevent libraries from performing their usual operational and lending functions, such as licensing materials, making preservation copies, or loaning items through interlibrary loan systems. They also cannot restrict libraries from determining loan periods, acquiring licenses at prices higher than the public pays, or imposing excessive cost-per-circulation fees, unless these are substantially lower than outright purchase. Furthermore, contracts cannot limit the number of times an item can be loaned or the duration of a license unless a perpetual license is offered at a reasonable price, nor can they restrict a library's ability to virtually present materials to patrons for educational purposes. Crucially, these contracts cannot prevent libraries from disclosing their terms to other libraries, the Legislature, or the Attorney General, nor can they force libraries to violate laws protecting user privacy. Violations of this bill are considered unfair competition and deceptive practices under the New Jersey consumer fraud act, and contracts containing prohibited provisions are deemed unenforceable and unconscionable, with any waivers of these protections being void. While the bill does not apply to existing contracts, any renewals will be subject to its provisions.
Committee Categories
Education
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Education Committee (on 01/13/2026)
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/2026/S1674 |
| BillText | https://pub.njleg.gov/Bills/2026/S2000/1674_I1.HTM |
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