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

A4956

ASSEMBLY, No. 4956

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblywoman� LISA SWAIN

District 38 (Bergen)

Assemblyman� WAYNE P. DEANGELO

District 14 (Mercer and Middlesex)

Assemblywoman� MITCHELLE DRULIS

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Co-Sponsored by:

Assemblyman Onyema

SYNOPSIS

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

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning public library contracts for
electronic literary materials and supplementing chapter 73 of Title 18A of the
New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Aggregator� means one whose
business is the licensing of access to electronic literary material collections
that include electronic literary materials from multiple publishers.

���� �Borrower� means a person or
organization, including another library, to which a public library loans
electronic library materials to.

���� �Digital audiobook� means a
published work that is in the form of a narrated voice recording and is
released as a digital audio file.

���� �Electronic book� means a
published work that is in written form and is released as a digital text file.

���� �Electronic literary material�
means any digital audiobooks or electronic books
.

���� �Governing body� means a board
of trustees, director or other chief administrative officer, a county library
commission, or board of county commissioners of a public library; or a board of
education of a school district; or the governing board of a public institution
of higher education.

���� �Public library� means a
library that serves, free of charge, all residents of an area as established
pursuant to chapter 33 or chapter 54 of Title 40 of the Revised Statutes, and
receives financial support, in whole or in part, from public funds; or a library
established pursuant to N.J.S.15A:1-1 et seq. and receiving public funds
pursuant to R.S.40:54-35; State Library; a school library; and any library
operated by a public institution of higher education.

���� �Publisher� means one whose
business is the manufacture, promulgation, license, or sale of books,
audiobooks, newspapers, or other literary productions, including those in the
form of electronic literary materials. A publisher shall include an aggregator
who enters into contracts with libraries for the purpose of providing materials
for purchase or license from a publisher.

���� �Technological protection
measures� means any technology that ensures the secure loaning or circulation
by a public library of electronic library materials.

���� 2.��� Notwithstanding any
law, rule, or regulation to the contrary, a contract or license between a
publisher, distributor, and any other selling or licensing electronic literary
material to a public library and the governing body of a public library for the
procurement or licensing of electronic literary materials shall not include a
provision which:

���� a.� precludes, limits, or
restricts the library from performing customary operational functions,
including:

���� (1) licensing electronic
literary materials from publishers;

���� (2) employing technological
protection measures necessary to loan electronic literary materials;

���� (3) making non-public
preservation copies of electronic literary materials; and

���� (4) loaning electronic
literary materials using an interlibrary loan system;

���� b.� precludes, limits, or
restricts the library from performing customary lending functions, including:

���� (1) loaning electronic
literary materials to borrowers;

���� (2) restricting the library�s
right to determine loan periods for licensed electronic literary materials;

���� (3) requiring the library to
acquire a license for any electronic literary material at a price greater than
that charged to the public for the same item;

���� (4) restricting the number of
licenses for electronic literary materials that the library may acquire after
the same item is made available to the public;

���� (5) requiring the library to
pay a cost-per-circulation fee to loan electronic literary materials, unless
the cost of which is substantially lower than the cost of purchasing the item
outright;

���� (6) restricting the total
number of times a library may loan any licensed electronic literary material
over the course of any license agreement or restricting the duration of any
license agreement, unless the publisher also offers a license agreement to public
libraries for perpetual public use without such restrictions, at a price which
is considered reasonable and equitable as agreed upon by both parties; and

���� (7) restricting or limiting
the public library�s ability to virtually recite text and display artwork of
any materials to library patrons such that the materials would not have the
same educational utility as when recited or displayed at a public library
facility;

���� c.� restricts the public
library from disclosing any terms of the contract to other public libraries,
the Legislature, or the Attorney General; or

���� d.� requires, coerces, or
enables a public library to violate the provisions of section 2 of P.L.1985,
c.172 (C.18A:73-43.2).

���� 3.��� Nothing in this act
shall be construed to require the governing body of a public library to
purchase, or otherwise acquire, a library material for inclusion in its
collection.

���� 4.��� a.� Any violation of
this act shall be considered an unfair method of competition and unfair and
deceptive acts or practices within the meaning of the New Jersey consumer fraud
act, P.L.1960, c.39 (C.56:8-1 et seq.).

���� b.� An action for relief may
be bought by libraries or borrowers, or the attorney general, pursuant to
section 3 of P.L.1960, c.39 (C.56:8-3).

���� c.� Any remedy provided
pursuant to P.L.1960, c.39 (C.56:8-1 et seq.) shall be available for the
enforcement of this act.

���� 5.��� Contracts to license
electronic literary materials to a public library that include prohibited
provisions pursuant to this act are unconscionable within the meaning of
N.J.S.12A:2-302 and are deemed unenforceable. Any waiver of the provisions of
this act shall be deemed unenforceable and void.

���� 6.��� This act shall take
effect immediately and shall first apply to contracts entered into on or after
the effective date of this act.

STATEMENT

���� 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.