Monday, January 19, 2015

Nebraska Supreme Court Finds Nonprofit's Records are Not Public Records Subject to Disclosure

Falls CityThe Nebraska Supreme Court last week faced the issue of whether records held by Falls City Economic Development and Growth Enterprise, Inc. (EDGE), a Nebraska nonproit corporation, were "public records" within the meaning of Nebraska's disclosure laws because of the relationship EDGE has with the City of Falls City, Nebraska and other governmental entities.  In a unanimous decision, the court concluded EDGE's records were not public records and so were not subject to disclosure, reversing a state trial court.  

Citing an earlier opinion as well as similar tests applied by courts in other states, the Nebraska Supreme court stated that records held by a private party are public records if: "(1) The public body, through a delegation of its authority to perform a government function, contracted with a private party to carry out the government function; (2) the private party prepared the records under the public body’s delegation of authority; (3) the public body was entitled to possess the materials to monitor the private party’s performance; and (4) the records are used to make a decision affecting public interest."  Finding that EDGE was not controlled by government officials, although two city officials served among the 21 voting members of EDGE's board of directors and another official served in a non-voting, ex-officio capacity, that the government funding provided to EDGE was under the control of its board, and that EDGE had separate financial records, separate offices, and separate employees from the governments with which it worked, the court concluded that EDGE was not the functional equivalent of a government agency and so its records were not public records subject to legally required disclosure.  If, as the court suggested, the test it applied represents a growing consensus among state courts regarding how to approach this issue, this decision likely has ramifications beyond the State of Nebraska.

Lloyd Mayer

https://lawprofessors.typepad.com/nonprofit/2015/01/nebraska-supreme-court-finds-nonprofits-records-are-not-public-records-subject-to-disclosure.html

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