McAllen Chamber shuts the door to local media access

In last week’s Advance story about the McAllen Chamber of Commerce and the recent resignation of CEO/President Steve Ahlenius, who drew a six-figure annual income for most of the 24 years he was there, the question was asked:

“What will prove interesting now is what line the chamber will take with public information requests?”

Public info requests were submitted to the McAllen Chamber last Thursday by this newspaper for items mandated in the chamber’s own bylaws, such as annual audits, annual job evaluations of the CEO, notification if a board member is doing business with the chamber in excess of $500, annual budgets approved by the board, a recording of the October meeting during which Ahlenius resigned, and board minutes.

Reportedly, interim-CEO Blanca Cardenas sent either a text or an email to board members, which said in essence, the McAllen Chamber of Commerce won’t respond to this newspaper’s request for chamber documents because the nonprofit chamber is not considered subject to the Texas Public Information Act (PIA).

As it turns out, since the McAllen Chamber receives more than $1 million each year from the city, a new addition to the Public Information Act made in 2019 may have changed the game.

Now, in the Texas Public Information Act, under Section 3, it reads: “Are there any certain entities that are excluded from the definition of “governmental body” under the Act?”

A “governmental body” are the only entities subject to the Public Information Act, so defining what one is, is important for gaining access to public documents.

In terms of exclusions, the judiciary is included, which would seem normal. Some court papers shouldn’t be made public, one can easily argue.

As part of its exclusion from Open Records, Section 3 of the Texas Public Information Act (revised in 2019) also mentions “an economic development entity whose mission or purpose is to develop and promote the economic growth of a state agency or political subdivision with which the entity (in this case, the city of McAllen) contracts.”

If the PIA ended with that, the McAllen Chamber could argue it’s not subject to public disclosure; but Section 3 then attempts to clarify that indeed, an economic development entity like a chamber can keep its records private unless, unless, it’s taking in a huge chunk of taxpayer cash:

# “The entity does not receive $1 million or more in public funds from a single state agency or political subdivision in the current or preceding state fiscal year.”

Since the McAllen Chamber receives more than $1 million annually from the city of McAllen, Section 3 of the Public Information Act, revised in 2019, would seem to suggest that the McAllen Chamber of Commerce is subject to the Public Information Act.

Secretary of State

In addition, there is another avenue a media outlet might pursue when it comes to gaining access to McAllen Chamber of Commerce reports or reports from any other nonprofit for that matter. Documents such as budgets, audits, job evaluations, conflict-of-interest disclosures by board members, the possible awarding of chamber business to board members without going through a bid process, and/or following its own set of bylaws). That other avenue is via the Office of the Secretary of State.

In its own set of bylaws, the McAllen Chamber has included “LIMITATION OF METHODS.”

Under that title, it reads with seeming solemnity: “The McAllen Chamber of Commerce shall observe all local, state and federal laws which apply to a non-profit organization…”

The problem, though, is that there is no requirement that a nonprofit organization open its books to the public if it’s not incorporated with the state, subjecting it to state law. In this case, thankfully, McAllen Chamber Inc. is incorporated with the state as a domestic nonprofit corporation. (Oct. 23, 2012.)

On the Secretary of State’s website, under the FAQ’s, here is what’ss written when the question arises – Are the books and records of a nonprofit corporation available for inspection?

“... section 22.353 requires certain nonprofit corporations to make all records, books, and annual reports of financial activity available to the general public for inspection and copying. However, section 22.353 does not apply to (1) corporations that solicit funds only from their members; (2) corporations that do not intend to solicit and do not actually receive contributions in excess of $10,000 during a fiscal year from sources other than their members; (3) proprietary schools; (4) religious institutions; (5) trade associations or professional associations whose principal income is from dues and member sales and services; (6) insurers; or (7) alumni associations of public or private institutions of higher education.

Since McAllen Chamber Inc. doesn’t fall into any of those excluded categories, where does it go from here?

Board Members

The current McAllen Chamber Board of Directors, listed in alphabetical order, which voted 9-7-2 Nov. 9 to suspend the Executive Committee, include:

# Elva Cerda, Heritage Museum

# Jim Darling, attorney and former McAllen mayor

# Annette Franz, law office manager

# Joseph Habbouche, Atlas & Hall attorneys

# David Hernandez, Popa-Top owner

# Kay Jancik, owner of Oh-Kay’s

# Francy Jones, Castle Hostility

# Todd Mann, CEO McAllen Medical

# Carlos Melquizo, owner Carats

# Francisco Paez, owner Kumori

# Hershal Patel, owner Embassy Suites

# Omar Quintanilla, McAllen city commissioner

# Tania Ramirez, McAllen city commissioner

# Cris Rivera, CEO Rio Grande Regional

# Kelly Scrivner, VP UT-RGV

# Pablo Tagle, Chiropractice

# Adrian Villarreal, president IBC McAllen

# Stephan Wingert, publisher Monitor