The Holds Return Policy table (new to us as we just upgraded to 3.8.8 a few weeks ago) has proven to have unexpected ramifications for NExpress libraries. When items with LOCAL HOLD item types are returned at another library, these LOCAL HOLD items are being selected to fill ineligible holds.

EXPLANATION:
NExpress has two kinds of restricted item types defined: LOCAL HOLD, which only allows requests from patrons having the same HOME LIBRARY as the item to trigger holds, and WALK IN, which disallows holds entirely. There are three specific item types for each, depending on the material, which are defined by the owning library in Koha.:

1 LOCAL HOLD BOOK
2 LOCAL HOLD MOVIE
3 LOCAL HOLD OTHER

1 WALKIN BOOK
2 WALKIN MOVIE
3 WALKIN OTHER

SITUATION:
We are seeing the case where LOCAL HOLD items that are returned at a library other than its home library are being selected from the holds queue to fill holds for patrons at the library. In other words, when the hold patron's home library matches the Current Location, a hold is triggered; the correct behavior is that a hold is triggered ONLY when the hold patron's home library matches the Home Library location of an item.

The three LOCAL HOLD item types are not being correctly observed when such an item is checked in at a library other than the item's home library. The LOCAL HOLD restricted-hold item types were not taken into account when formulating the new Return Policy table, which has this explanatory note: "…these policies are based on the patron's home library, not the library where the hold is being placed."

This is the problem. The item's home library, not the patron's home library, is what needs to determine the hold restriction for LOCAL HOLD item type.