When government agencies outsource basic services to third-party non-profit contractors, one consequence is that the public may lose its access to information about the service that the public would have retained, had a government agency carried out the service directly.
A concern that previously public information will become privatized and inaccessible to the public when a government agency moves to contract out services to third-party vendors arises whether the third-party vendor is a non-profit organization or a for-profit organization. However, a number of key court cases in this area have arisen when non-profits have rebuffed requests for information under a state's right-to-know laws.
Key court cases (U.S.A.)
Friends of Piedmont Park v. The Piedmont Park Conservancy
The Piedmont Park Conservancy is a private non-profit that oversees and manages
Piedmont Park. In 2007, when the organization moved forward with a plan to install a controversial parking structure, a group opposed to the plan—Friends of Piedmont Park—filed an open record request unde
Georgia's open records legislationfor records of the Conservancy. The request was declined, and the Friends group sued. On September 12, 2007, a Georgia judge ruled that the records must be made public.
The Times of Trenton v. Lafayette Yard Community Development Corp.
In this case, the
New Jersey Supreme Court
The Supreme Court of New Jersey is the highest court in the U.S. state of New Jersey. In its current form, the Supreme Court of New Jersey is the final judicial authority on all cases in the state court system, including cases challenging t ...
unanimously ruled in 2005 that Lafayette Yard CDC, a private non-profit, was subject to the provisions o
New Jersey's open records (OPRA) legislationbecause it issued city-backed bonds and the majority of its board was appointed by the city council of Trenton. The litigation arose because the board of Lafayette Yard CDC kicked a reporter for the Trenton newspaper out of a meeting on the grounds that, as a private non-profit, they were not subject to open records or open meetings laws.
Gannon and Nichols v. the Board of Regents of the State of Iowa
In this 2005 case, the
Iowa Supreme Court
The Iowa Supreme Court is the highest court in the U.S. state of Iowa. The Court is composed of a Chief Justice and six Associate Justices.
The Court holds its regular sessions in Des Moines in the Iowa Judicial Branch Building located at 1111 ...
overturned a lower court and ruled that outsourcing a public function to a private board does not privatize the records of the private board. The court wrote, "In this appeal, we are asked to decide whether a government body may outsource one of its core functions to a private corporation, making that part of its operation nongovernmental and not subject to public scrutiny. We hold the Iowa State University Foundation, a recipient of such outsourcing, is performing a government function, and therefore its records are subject to disclosure."
Kimberly Kay Allen v. John Day
Fourteen cheerleaders sued Powers Management, a private company that ran a public stadium in
Nashville, Tennessee
Nashville is the capital city of the U.S. state of Tennessee and the seat of Davidson County. With a population of 689,447 at the 2020 U.S. census, Nashville is the most populous city in the state, 21st most-populous city in the U.S., and t ...
, on the grounds that their privacy had been violated by two employees of Powers Management. Powers Management reached an out-of-court settlement with the cheerleaders.
The Tennessean
''The Tennessean'' (known until 1972 as ''The Nashville Tennessean'') is a daily newspaper in Nashville, Tennessee. Its circulation area covers 39 counties in Middle Tennessee and eight counties in southern Kentucky. It is owned by Gannett, ...
asked for a copy of the settlement from Powers, on the grounds that Powers was functionally a government agency. In 2006, a Tennessee appeals court agreed with The Tennessean, ordering Powers to turn over a copy of the settlement to the newspaper.
Current controversies
Downtown Vision in Jacksonville, Florida
Downtown Vision agreed in September 2007 that it falls unde
Florida's open records law Previously, the organization had stated that it was exempt because it is a private not-for-profit corporation.
Charleston Area Alliance
The non-profit
Charleston Area Alliance in West Virginia receives $100,000 annually from the
Kanawha County Commission to provide economic development services to the county. However, the Charleston Area Alliance has refused to provide information about the salaries its officers receive, on the grounds that it is a private organization.
Medicaid service non-profits in Connecticut
In Connecticut, the state Department of Social Services contracted with three for-profit companies and one non-profit company for Medicaid services. Each organization refused to respond t
Connecticut open records requestsfor information about how much they were paying doctors under the plans. The Connecticut Attorney General and Connecticut Freedom of Information Coalition ruled that the documents must be made public.
New Mexico State University Foundation
In New Mexico, the non-profit New Mexico State University Foundation is claiming that because it is private, it doesn't have to release the names of donors, even though the donors are partially funding the salaries of employees at New Mexico State University. Basketball coach
Reggie Theus
Reginald Wayne Theus (born October 13, 1957) is an American basketball coach and former player. He played 13 seasons in the National Basketball Association (NBA), where he was a two-time NBA All-Star. He is currently the head men's basketball he ...
is one recipient of a salary partially funded by undisclosed private donors. Since Theus has spoken at a public governmental hearing in favor of a private real-estate development, questions have arisen about whether he is receiving part of his salary from those real estate developers.
Notes
External links
Private Organizations, Government Dollarsfrom WikiFOIA.
Privatization versus The Public's Right to Knowfrom the Reporters Committee for Freedom of the Press.
Privatization: Its Impact on Public Record Accessfrom the National Freedom of Information Coalition.
{{DEFAULTSORT:Non-Profit Organizations And Access To Public Information
Freedom of information in the United States
Public records
Non-profit organizations