SENATE BILL REPORT

SB 5492

BYSenators Bailey and Rasmussen

Making the open public meetings act apply to nonprofit organizations that administer state funds.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 16, 1987; March 4, 1987

Majority Report:  That Substitute Senate Bill No. 5492 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, Talmadge, Zimmerman.

Senate Staff:Barbara Howard (786-7410); Sam Thompson (786-7754)

                  March 5, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 4, 1987

BACKGROUND:

A wide variety of nonprofit organizations administer service programs for which federal, state and local public funds are available. Examples include associate development organizations which manage regional economic development programs, community action agencies which are responsible for several programs to assist low-income individuals, and those food banks which are eligible for funding assistance.  Because most of the organizations are not governmental entities, they are not subject to the Open Public Meetings Act.

SUMMARY:

The Open Public Meetings Act is expanded to cover nonprofit corporations or organizations receiving moneys from the state or political subdivisions.  The provisions of the Act are applied to those meetings of the governing body of the organization when the use of public money is concerned.  For this purpose, the nonprofit corporation is considered a public agency.

Meetings or portions of meetings of such groups which do not involve the expenditure or administration of state or local public funds are exempted from the open meeting requirement.

EFFECT OF PROPOSED SUBSTITUTE:

The Legislature finds that some citizens have been concerned about the quality of service delivery and fiscal integrity of nonprofit corporations and other organizations which receive funds from state and local government agencies.  Such organizations are not considered public agencies and have no obligation to conduct their business in public meetings, with a potential result that citizens can be denied an opportunity to present their concerns.

The Senate Committee on Governmental Operations and the House Committees on Local Government and State Government are directed to conduct a study of providing opportunities for citizens to present their concerns in meetings of nonprofit organizations whenever expenditure of public funds is under consideration.  The study and legislative recommendations are to be completed no later than December 1, 1987.

Fiscal Note:      none requested

Senate Committee - Testified: Paul Conrad, Allied Daily Newspapers; Jeff Mero, State Hospital Association; Gail Gulick