Fees and Fines

Question

My association library is updating our meeting room policy. I've read Ask the Lawyer's previous advice on meeting rooms, as well as ALA's guidance. I have two questions that I can't find guidance on:

Answer

As the member points out, there have been a few other "Ask the Lawyer" RAQ's on room use, so for those who want to do some background reading, here are the RAQ's the member refers to:


Question

We have become aware that a recent law in New York shortened the statute of limitations to collect consumer debts.  Does this affect our library’s ability to enforce and collect library fines?

Answer

Libraries likely do not have any statute of limitations for collecting overdue or replacement fines because the law does not consider library fines as “debts.” As such, any change to how long a “debt” may be collected does not matter for libraries. T


Question

I am wondering if sending unsealed overdue notices to students in their classrooms is a FERPA violation. The notices might appear face up on their desks or in their hands for other students to see. The prices of overdue materials are listed on our notices.

Answer

What a difference a month makes.  When this question came in, my kids were in school, my staff was at the office…and I am willing to bet at least one person in that group had an overdue library book.


Question

My library has long been in the practice of charging what we often refer to as a "research fee" or "consulting fee." I am familiar with some libraries who have a similar practice, but wonder if it's legal for us to charge an hourly rate for work done by volunteers?

Answer

It is well established that a not-for-profit organization can benefit from volunteer labor.  This is true even when the labor brings the organization tangible benefits, like the money from a bake sale, or as in this case, a research fee. 


Question

We are a school district public library, and a governmental entity, considering crafting a policy relating to debts discharged in bankruptcy, if the library is named as a creditor. 

Are replacement costs for library materials exempt from or subject to discharge of debt? Overdue fines? 

Answer

Before we get to the nitty-gritty on this question (and we will), let’s reflect on why libraries charge fines and replacement costs in the first place:


Question

What laws or limits should libraries consider when storing and collecting patron account debts?

Who is responsible for compliance: the library where a patron is registered (they set their own blocking policies), or the system maintaining the records?

Answer

On the surface, these questions are very simple, since they boil down to: what are the laws impacting the flow of data comprising patron debt records (bills, fines, referral to collections), and who needs to follow those laws?


Question

We have become aware that a recent law in New York shortened the statute of limitations to collect consumer debts.  Does this affect our library’s ability to enforce and collect library fines?

Answer

Libraries likely do not have any statute of limitations for collecting overdue or replacement fines because the law does not consider library fines as “debts.” As such, any change to how long a “debt” may be collected does not matter for libraries. This privilege extends to third parties who collect fines on behalf of libraries. Let’s dive in deeper to help understand why.