Beyond Library Law NJ Library Trustee Institute September 13, 2014

1. Michael A. Cerone, Jr., Esq.840 Van Houten AvenueClifton, NJ 07013973-778-1601Email MACJRESQ@VERIZON.NET Beyond Library Law NJ Library Trustee Institute September 13, 2014

2. Establishment of Public Libraries • Municipal Libraries are established by referendum • Joint Libraries are established by referendum after the participating governing bodies enter into a joint library agreement • County library systems are established by referendum with two exceptions • Can only be dissolved by referendum • Association libraries are established according to the Nonprofit Corporation Act and • Once Association Library accepts public funds, it must be open and free to the public at such reasonable hours as are agreeable to the governing body

3. Organization Municipal Libraries • Board consists of 5-7 citizens appointed by Mayor directly or with consent of Council • 4 of these must reside in the town • Must be a United States Citizen • May not be an employee of the town or a council person • Mayor and Superintendent of Schools • Alternates • Five Year Staggered Terms of Office • Must Start at the Same Time of Year e.g. January 1 • Vacancies are filled for the remainder of term

4. ORGANIZATIONJoint Municipal Libraries • Board consists of 3 citizens appointed by Mayor of each participating municipality • 2 of these must reside in the town • Must be a United States Citizen • May not be an employee of any of the towns or a councilperson • Mayors and Superintendents of Schools of each town are members • Alternates • Five Year Staggered Terms • Must start at the same time of year e.g. January 1 • Vacancies are filled for the remainder of the term

5. ORGANIZATIONCounty Libraries • Generally 5 members appointed by freeholders • Five year staggered terms • At least 3 members must be residents of the municipalities supporting the county library

6. Oath of Office • Written Oath • Municipal and Joint Municipal Libraries • Usually done by the Municipal Clerk • May be done by President of the Board • Must be filed with Municipal Clerk • County Libraries • Filed with County Clerk

7. Attendance Municipal and Joint Municipal Libraries • If absent for 8 consecutive weeks or 4 consecutive regular meetings, without excused absence, board can declare office vacant and notify the Mayor • Mayor and Council, by ordinance, can reduce the time frame to 6 weeks or 3 meetings • Board has discretion to excuse absences but must excuse for legitimate illness

8. Officers Municipal and Joint Municipal Libraries • President, Treasurer, Secretary • One year term and until successor is elected • Statute does not spell out duties of each but By-Laws can • Bonding • Statute requires bond for Treasurer • Recommend 2 signature checking account and that all trustees with signing authority be bonded

9. By-Laws • Board should adopt By-Laws • May not override statute • Officers and their responsibilities • Many add VP, but avoid top heavy board • Committee Structure • Building and Grounds • Finance • Personnel • Policy • Parliamentary Authority • – Robert’s Rules of Order Newly Revised Current Edition

10. Powers of Board Municipal and Joint Municipal Libraries • Purchase Books, Papers, Reading Matter • Hire Librarians • Hire other necessary personnel • Fix compensation of employees • Rent rooms or construct buildings for library use • Adopt rules and regulations • Do whatever is necessary to maintain library

11. Powers of Board County Libraries • Elect a Chairperson • Adopt rules and regulations for establishment and maintenance of library • Hire librarians and other necessary personnel • Purchase such supplies and equipment and incur such expenses as it may deem necessary to carry out the provisions of the statute

12. Relationship with Director • Director is your CEO • Establish Job Description/Goals for Director and Evaluate Director annually • Board has hiring authority – but rely on Director to • Identify the need for a position • Interview candidates and recommend hire • Trustees should not talk to staff about Library Operations • Staff communicates with the Director and the Director communicates with you

13. Funding Municipal Libraries • Municipal Library must receive 1/3 mill • Separate line on tax bill • No longer subject to town’s budget cap • Municipality can appropriate more money • But this will be subject to town’s budget cap • Statute requires the money be paid to the Library quarterly • DLGS recommends w/in 20 days of tax due date • Regs allow municipality to hold the money in a library controlled account

14. Funding Joint Municipal Libraries • Library Trustees must certify the amount needed • If a governing body doesn’t agree, a joint meeting of the participating governing bodies is called to adjust differences • Director of Local Government Services resolves any differences • CFO of one of the municipalities is the disbursing officer

15. Funding County Library • Amount set by Freeholders • Must be a minimum of 1/15 mill of equalized valuation • Not a Separate line on tax bill • County Treasurer is the custodian of funds

16. Eligible Costs vs. Ineligible Costs Municipal and Joint Municipal Libraries • Eligible Costs – reasonable and necessary costs incurred in connection with the direct operation of a free public library to provide library services. • Ineligible Costs - • Cannot pay rent to the Town • Cannot pay for debt service • Capital Expenses only if written Capital Plan

17. Excess Funds Statute Municipal and Joint Municipal Libraries • Requires Library to transfer to the municipality any unrestricted funds in excess of 20% of last year's audited operating expenses • For example – If 2013 audited operating expenses were $100,000 and the Library has year end unrestricted surplus of $25,000, it would be required to return $5,000 to the Municipality

18. Excess Funds Statute Municipal and Joint Municipal Libraries Continued • Must be approved by State Librarian • Download the Packet for Proposed Return of Taxpayer Funds at the State Library website http://lss.njstatelib.org/library_law • Funds previously restricted for capital and donations are excluded from the calculation

19. Excess Funds Statute Suggestions • Hire your own auditor • Do not rely on the town’s auditor • Always adopt a capital plan • Adopt a resolution whenever transferring money into a capital account • Separate bank account for donations • Separate bank account for capital funds

20. Autonomous • Library Board runs the Library • Not the Mayor or Council • Not the Freeholders • Attorney General Opinion 1959 No. 10 • Library Statute excludes any interference by the governing body with the exercise of the powers granted to trustees

21. Confidentiality of Library Records • Library records containing names or other personally identifying details re users are CONFIDENTIAL and cannot be disclosed unless: • Necessary for operation of Library • Disclosure is requested by User • Pursuant to court order or court subpoena

22. Sunshine Law • Public Notice of Meeting • At least 48 hours in advance • Notice must give date, time, location and to the extent known the agenda • Must be posted in a prominent location • Mailed, phoned or hand delivered to at least 2 newspapers which have been designated by the board • Filed with municipal/county clerk • In lieu of notice for each regular meeting, board can adopt a meeting schedule at annual meeting and then provide that schedule as above

23. Sunshine Law Continued • Emergency Meetings • When you must meet and cannot provide 48 hour notice • Board must adopt, by affirmative vote of 3/4s of members attending, a resolution stating that the subject of the meeting was so urgent that a delay to provide adequate notice would likely result in substantial harm • Meeting is limited to action on the urgent matter • Must provide notice of the meeting as soon as possible thereafter

24. Sunshine Law Continued • Quorum, i.e. majority of board to conduct business • Law does not apply to meetings of less than an effective majority of the board • Minutes • Must contain the time and place of the meeting, the members present, the subjects considered, the actions taken, the vote of each member • Public session minutes must be made promptly available to the public • Must keep minutes of closed sessions

25. Sunshine Law Continued • Closed Sessions • Requires a resolution to go into closed session • Collective Bargaining • Litigation/Attorney Client Privilege • Personnel Matters • Rice Notice • Beware of Email/Internet Violations of the Law • Penalties • Injunction undoing action of the board • Knowing violations civil penalty of $100/$500

26. Local Government Ethics Law • Financial Disclosure Statement • Must be filed within 30 days of appointment and thereafter annually by April 30th • Conflict of Interest • You and your immediate family cannot engage in any business or activity which is in conflict with your duties as a trustee

27. New Jersey First Act • Employees hired after September 1, 2011 must reside in New Jersey • New hires have 365 days to establish the principal residence in New Jersey • Court can enter an order ousting the employee from the job

28. Civil Service • Civil Service – if your town is a civil service town, your employees are civil service • If title is ‘classified’ must hire from list • Working test period of 3 months after appointment to permanent title • May dismiss for unsatisfactory work performance during the working test period • If employee is dismissed at end of working test period, employee has the right to appeal

29. Civil Service Civil Service employees can only be terminated for cause 1. Incompetency, inefficiency or failure to perform duties; 2. Insubordination; 3. Inability to perform duties; 4. Chronic or excessive absenteeism or lateness; 5. Conviction of a crime; 6. Conduct unbecoming a public employee; 7. Neglect of duty; 8. Misuse of public property, including motor vehicles; 9.Discrimination that affects equal employment opportunity 10. Violation of New Jersey First Act 11. Other sufficient cause.

30. Open Public Records Act • Designed to increase public accessibility to government • Broadly defines a government record • Provides a compliance process via Government Records Council and Superior Court • Provides penalties for anyone who knowingly violates the law • Provides for attorneys fees for a successful requestor • Appoint a Records Custodian

31. Local Public Contracts Law • Local Public Contracts Laws • Bid Threshold $17,500/$36,000 • Quote Threshold $2,625/$5,400 • Library Materials not subject to Bid Threshold • Pay to Play applies to all contracts in excess of $17,500 • Fair and Open Process – sealed bid or sealed RFQ • Non-Fair and Open Process – Contractor must complete forms in advance of contract award and cannot have given more than $300 to any candidate or office holder serving the constituents of the Library

32. Insurance • Directors and Officers Liability Insurance • Employment Practices Liability Insurance • Fidelity Bond • Liability Insurance • Hazard Insurance • Contents and Replacement Cost Coverage • Worker’s Compensation Insurance • Unemployment Insurance