LINCOLN -- A bill inspired by the secret settlement of a sexual harassment claim against a former mayor of Papillion was given resounding, first-round support in the Nebraska Legislature on Friday.
On a 35-0 vote, lawmakers advanced from first-round debate a bill that will require cities, counties and other governmental bodies to disclose confidential legal settlements that involve public funds.
Legislative Bill 742, according to its sponsor, Omaha Sen. Beau McCoy, would have required the City of Papillion to place on its City Council agenda the existence of a $200,000 settlement with a former female assistant of then-Mayor James Blinn. The payment resolved her sexual harassment case against Blinn and Papillion.
The settlement included a provision that allowed Papillion to deny its existence.
"This is an important issue about transparency," McCoy said. "Citizens of Nebraska deserve to know how their taxpayer dollars are being spent, and for what reason."
Under LB 742, any insurance company involved in such settlements must send a record of that agreement to a government entity, which will preserve that as a public record.
The bill, under amendments adopted on Friday, would also require a public entity to maintain a record of such agreements.
An investigation by The World-Herald revealed the existence of the out-of-court settlement in Papillion.
In seeking out similar hidden agreements from other entities, the newspaper was told in at least two instances that no copy of the out-of-court settlements could be found.
Another amendment to the law excludes smaller settlements from the agenda requirement. Only settlements of $50,000 or more, or those that represent 1 percent of a public entity's annual budget -- whichever is smaller -- must be disclosed.
Copyright ©2012 Omaha World-Herald®. All rights reserved. This material may not be published, broadcast, rewritten, displayed or redistributed for any purpose without permission from the Omaha World-Herald.
