[Michlib-l] Looking for a Consensus on Nonresident Card Fees

Tue Aug 20 14:24:40 EDT 2024

Hello!:

I read that Amanda indicated that she had information from me 😊, but I wanted to just provide an FYI on certain aspects of this process, as it is one that I have been researching quite a bit lately.

Please note that the prevailing law on this topic states that libraries may only charge non-residency fees that “reasonably relate
to the costs incurred by the library in making borrowing privileges available to such nonresident, and provided that the fees
are not disproportionate to the cost, direct and indirect, of issuing a library card, facilitating the return of loaned books, and
the attendant cost of administration.” MI Atty Gen Op. No.6188 (1983) Opinion #6188 (state.mi.us)<https://www.ag.state.mi.us/opinion/datafiles/1980s/op06188.htm>

To charge larger fees than justified by the cost of providing service, a library risks imposing a “tax,” which libraries are not empowered to do (even districts must send taxes to be voted on). Non-residency cards cannot be priced for profit.

To charge less a library risks alienating its tax paying and contracted communities who are paying a fair – and higher cost- for the same services provided.  Why should a municipality contract with a library if their non-residents can get the service at a lower cost? Library trustees are arguably not acting within their fiduciary duty (to always make decisions in the best interests of the library) if approving non-residency cards that cost substantially less than what it costs the library to provide services (and substantially less than the legal service area pays to support the library).

A reading of the attorney general opinion linked above provides insight that even in the constitutional convention debates on libraries, it was discussed that it is not appropriate for public libraries to be expected to provide services to non-residents for a cost less than what it costs to provide those services.

A start to this process is to take the total of the library budget and divide it by the population(s) served which pay support for the library (including contracted areas). This gives you an idea of a per user cost.
That per user cost can be the basis of a non-residency fee.

Non-residency cards can limit the services provided, but you will want to consider the limitations when pricing the access and consider any unintended consequences such as the appearance of equal protection issues.

If there are other costs which would ballon the per person cost (such as certain Hoopla or Overdrive subscription types), you could consider offering the higher cost service separately from other library services.

Similarly, if a library wanted to have an option for families in need who could not afford the regular non-residency card, they could work with their attorney for a policy and process for a potential patron to apply for discounted or sliding scale access – but this is something to discuss with your attorney because there are many privacy, discrimination, and other pitfalls in a this type of process.

Because this process can vary widely depending on a library’s funding, services, budget and subscription types, it is strongly encourages that a library should consult their attorney and/or their financial professional when determining an appropriate amount for the cost of service.

Thanks!
Clare

Clare D. Membiela, MLS, J.D.
Library Law Consultant
Library of Michigan
MembielaC at michigan.gov<mailto:MembielaC at michigan.gov>
517-335-8132

The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.

“the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge.” Griswold v. Connecticut, 381 U.S. 479, 482 (1965).

Nourishing Michigan’s Future during the summer!  Find a Summer Food Service Program site nearest you and encourage Michigan’s children to Meet Up and Eat Up!    www.michigan.gov/meetupeatup<http://www.michigan.gov/meetupeatup>

[cid:image002.png at 01DAF306.D8185E80]

From: Michlib-l <michlib-l-bounces at mcls.org> On Behalf Of Amanda Hanson via Michlib-l
Sent: Tuesday, August 20, 2024 1:22 PM
To: michlib-l at mcls.org
Subject: [Michlib-l] Looking for a Consensus on Nonresident Card Fees

CAUTION: This is an External email. Please send suspicious emails to abuse at michigan.gov<mailto:abuse at michigan.gov>

Hello Collective Library Brain,

I am reviewing our fee structure for issuing nonresident cards to patrons who are outside of our legal service area. I can tell from the reports issued by LOM that several Michigan libraries offer this type of card and at different rates.

I am looking for “best practices” which are justifiable when setting a fee for this service. Howard Miller Library recently moved into the Class V library size according to the LOM classification system with just over 26,000 patrons in our legal service area and contracted service areas. Our current rate for a nonresident card is $50 and has been set since 2001. We provide limited service with this card, not full access to the LLC collection and materials and no digital access either. I have no idea how the $50 rate was determined (I became director in Sept 2022) and would like to find the best way to calculate a current and fair rate for this nonresident card service.

I have all of Clare’s information that she has given to us about different ways to calculate this fee:

  1.  Total income (local + other local operational income / Total population served (legal service area + contracted service areas
  2.  Total library expenditures (as detailed in the Annual State Aid Report) / Total population served (legal service area + contracted service areas)
  3.  Or use the total number of households in lieu of total individual population counts when doing the above calculations

If your library has a nonresident card, would you be willing to share how you determined the fee you charge for it so that I can see if there is a consensus on how Michigan public libraries calculate these fees? Do you use one of the calculations above or a different one to determine your fee? I am willing to compile any responses and share with the group for everyone’s edification.

Thanks so much for considering a response to this query 😊.

Have a wonderful rest of your day.
Amanda H.

[Logo]<https://www.cityofzeeland.com/>
Amanda Hanson | Director
Howard Miller Library & Community Center

14 S. Church Street | Zeeland, Michigan, 49464
p: 616.748.5901 | c: 616.368.9567
e: ahanson at cityofzeeland.com<mailto:ahanson at cityofzeeland.com> | w:  www.cityofzeeland.com<http://www.cityofzeeland.com/>

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mail3.mcls.org/pipermail/michlib-l/attachments/20240820/3d16971f/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 11849 bytes
Desc: image002.png
URL: <http://mail3.mcls.org/pipermail/michlib-l/attachments/20240820/3d16971f/attachment.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 23881 bytes
Desc: image003.jpg
URL: <http://mail3.mcls.org/pipermail/michlib-l/attachments/20240820/3d16971f/attachment.jpg>