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The library's arrangement with Overdrive prevents them from offering out-of-state residents a library card. It is a condition of having a contract with Overdrive. I'm not sure if the publishers put this restriction on Overdrive or not.
I've spoken with several librarians across the country while doing my "list thread" and they all told me about Overdrive's prohibition.
I don't know how Philadelphia Library and a few others get away with it but maybe the stipulation will be included when the next contract renews. Or they don't care.
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