JUSTICE GUZMAN delivered the opinion of the Court, in which CHIEF JUSTICE HECHT, JUSTICE GREEN, JUSTICE LEHRMANN, JUSTICE DEVINE, and JUSTICE BROWN joined.
The question presented here is whether a private entity operating like a chamber of commerce is a "governmental body" subject to public disclosure of its private business affairs under the Texas Public Information Act. In seeking to promote the public's legitimate interest in transparent government, the Act imposes considerable disclosure obligations on "governmental bod[ies]." Importantly, the statutory definition of "governmental body" extends only to "the part, section, or portion of an organization, corporation, commission, committee, institution, or agency that spends or that is supported in whole or in part by public funds." See TEX. GOV'T CODE § 552.003(1)(A)(xii) (emphasis added). This operates to prevent nominally private entities whose work might otherwise qualify them as de facto public agencies from circumventing the Act's disclosure requirements. This case requires us to decide whether the term "supported" encompasses private entities contracting at arm's length with the government to provide general and specific services or whether the term properly includes only those entities that could not perform similar services without public funds and, are thus, sustained — in whole or part — by such funds.
When a private entity enters into a contract and receives government funds in exchange for its services, the entity's right to conduct its affairs confidentially may be in tension with the public's right to know how government funds are spent. Transparency, openness, and accountability in the government are all of fundamental importance. However, these important policy objectives cannot extinguish the privacy rights properly belonging to private business entities in Texas. By liberally authorizing public access to government records while simultaneously shielding private business from unwarranted interference, the Legislature carefully balanced these
Here, Greater Houston Partnership, a nonprofit corporation providing economic-development services to the City and other clients pursuant to quid pro quo contracts, contests whether it is a "governmental body" in whole or in part. Applying Kneeland, the Attorney General and lower courts held that it is. We hold, however, that Greater Houston Partnership is not a "governmental body" under the Texas Public Information Act because it is not wholly or partially sustained by public funds; we therefore reverse the court of appeals' judgment and render judgment for Greater Houston Partnership.
Greater Houston Partnership (GHP) is a private, nonprofit corporation that promotes regional economic growth and an attractive business climate for a ten-county area centered around Houston, Texas. GHP's stated purpose is to enhance economic prosperity, facilitate business relocation and expansion, encourage international outreach initiatives, and provide strategic planning to advocate for "the improvement of commercial, industrial, agricultural, civic, and cultural affairs" in the Houston region. In furtherance of this objective, GHP provides consulting, event planning, and marketing services (including advertising and market research) to its roughly 2,100 member companies on a contractual basis. GHP also hosts numerous networking and professional development events, including several weekly GHP Council meetings on topics relevant to the regional economy. GHP operates on an annual budget of approximately $11.7 million, and these funds emanate primarily from membership revenue. In short, GHP functions much like thousands of chambers of commerce across the nation that promote municipal and regional economies.
Consistent with its business model, GHP contracted to provide consulting, event planning, and marketing services to the City of Houston, pursuant to an "Agreement for Professional Services." GHP and the City signed similar agreements annually for several years, including 2007 and 2008, the time periods at issue here. The contracts included a "Scope of Services" exhibit that delineated, under general headers, the specific services that GHP would provide to the City. Under these contracts, GHP received quarterly payments in arrears contingent upon the City's approval of performance reports detailing the particular services GHP provided in that quarter. If GHP failed to deliver the contracted-for services to the City's satisfaction, the contracts authorized the City to pay GHP for the portion of services satisfactorily rendered. Notably, however, the two contracts differed in one significant respect: the 2008 contract expressly provided that "[n]othing in this Agreement shall be construed to imply that [GHP] is subject to the Texas Public Information Act."
The instant suit arose from a May 2008 request Houston-area resident Jim Jenkins submitted to GHP in which he sought "a copy of the check register for [GHP] for
GHP objected to Jenkin's request and did not disclose the information. GHP acknowledged it received public funds from the City but disagreed it qualified as a "governmental body" under the TPIA because the public funds were compensation for vendor services provided pursuant to an arm's-length contract with the City. The City's annual payments under the contract amounted to less than 8% of GHP's total annual revenue; member contributions, on the other hand, totaled more than 90% of its revenue. GHP further noted that of the roughly 2,100 companies that comprise its membership, only four could be described as governmental bodies. Refusing to disclose the requested information, GHP referred the matter to the Texas Attorney General as required under the TPIA. See id. §§ 552.301(a), .307.
In an informal letter ruling, the Attorney General's Open Records Division agreed with Jenkins, and concluded that GHP was a "governmental body" subject to the TPIA's disclosure requirements specifically with respect to the 2007 contract with the City.
In response to the Attorney General's informal ruling, GHP filed a declaratory-judgment action against the Attorney General seeking a declaration that: (1) the Attorney General lacked jurisdiction over the dispute and (2) even if jurisdiction was proper, GHP was not a "governmental body" under the TPIA. See TEX. GOV'T CODE §§ 552.3215(e), .321, .325(a). Shortly after GHP filed suit, Jenkins filed an additional request seeking a copy of GHP's 2008 "disbursement registers and/or check registers," including the number, date, payee name, amount, and purpose. Noting that GHP had already filed suit regarding the 2007 check-register request, the Attorney General closed the second request without a finding and directed the trial court to resolve the dispute. Jenkins intervened in the lawsuit shortly thereafter. See id. § 552.325 (authorizing a requestor to intervene in the suit).
After a bench trial, the trial court found GHP was a "governmental body" supported by public funds and ordered disclosure of the 2007 and 2008 check registers.
The court of appeals agreed with the trial court and affirmed its judgment, albeit over a strongly worded dissent. 407 S.W.3d at 786, 787. Finding the phrase "supported in whole or in part by public funds" ambiguous, the lower court relied on an extra-textual analytical construct known as the Kneeland test to conclude GHP qualified as a governmental body under the TPIA.
On appeal to this Court, GHP advances three principal reasons why it is not a "governmental body" under the TPIA. First, GHP contends the phrase "supported... by public funds" unambiguously excludes the City's payments to GHP. Second, even if the language is ambiguous, the Court should reject the Kneeland test because it is unclear and not grounded in the statutory language. Third, GHP argues it is not "supported ... by public funds" even under the Kneeland test. The Attorney General disputes all three points. First, it contends that GHP plainly qualifies as a "governmental body" under the TPIA; limiting the statute's reach to entities that exist solely to carry out government functions would frustrate its purpose of openness, and GHP is "supported" by public funds. Second, the Kneeland test is not only the relevant framework in which to evaluate the TPIA's application to otherwise private entities, the Legislature has effectively endorsed the Kneeland test.
The Legislature enacted the Texas Open Records Act in 1973 to increase government transparency in the wake of public scandals, including a massive stock-fraud imbroglio known as the Sharpstown scandal.
The TPIA defines a "governmental body" as one of twelve different types of entities. See id. § 552.003(1)(A). Most of the entities listed in section 552.003(1)(A) are identified quite precisely; for example, a "school district board of trustees" is statutorily defined as a "governmental body." Id. § 552.003(1)(A)(v). Others are more amorphous, including the section at issue here, which subjects "the part, section, or portion of an organization, corporation, commission, committee, institution, or agency that spends or that is supported in whole or in part by public funds" to the TPIA. Id. § 552.003(1)(A)(xii). The crux of our inquiry in this case is the meaning of "supported in whole or in part by public funds." The proper scope of this phrase is significant because the consequences of being characterized as a governmental body are considerable. The most obvious is that under section 552.221 of the Texas Government Code, a "governmental body" must promptly produce "public information" on request unless an exemption from disclosure applies and is timely asserted.
GHP argues that as a private entity, it is not subject to the TPIA's disclosure requirements because it does not qualify as a "governmental body" under the statute's plain language. GHP therefore contends that it is entitled to seek the privacy protections typically afforded to nongovernmental entities. Determining whether GHP is a "governmental body" whose records are subject to disclosure under the TPIA presents a matter of statutory construction that we review de novo. City of Garland v. Dall. Morning News, 22 S.W.3d 351, 357 (Tex.2000). When interpreting a statute, our primary objective is to ascertain and give effect to the Legislature's intent without unduly restricting or expanding the Act's scope. City of Lorena v. BMTP Holdings, L.P., 409 S.W.3d 634, 641 (Tex.2013). We seek that intent first and foremost in the plain meaning of the text. Id.; see also Tex. Lottery Comm'n v. First State Bank of DeQueen, 325 S.W.3d 628, 635 (Tex.2010). "Undefined terms in a statute are typically given their ordinary meaning, but if a different or more precise definition is apparent from the term's use in the context of the statute, we apply that meaning." TGS-NOPEC Geophysical Co. v. Combs, 340 S.W.3d 432, 439 (Tex.2011). "However, we will not give an undefined term a meaning that is out of harmony or inconsistent with other terms in the statute." State v. $1,760.00 in U.S. Currency, 406 S.W.3d 177, 180 (Tex.2013). Therefore, even if an undefined term has multiple meanings, we recognize and apply only the meanings that are consistent with the statutory scheme as a whole. Id. at 180-81. We only resort to rules of construction or extrinsic aids when a statute's words are ambiguous. Entergy Gulf States, Inc. v. Summers, 282 S.W.3d 433, 437 (Tex.2009). Finally, in construing the TPIA, we are mindful of the legislative mandate that the TPIA be "liberally construed in favor of granting a request for information." TEX. GOV'T CODE § 552.001(b).
As an initial matter, we observe the parties' agreement that GHP is a "governmental body" only if it, or a "part, section, or portion" of it "is supported in whole or in part by public funds." It is likewise undisputed that GHP receives "public funds."
"Supported" is an undefined term with multiple and varied dictionary definitions. However, only two of the definitions are even remotely possible as applied to the TPIA and only one of those definitions is reasonable when the statute is considered as a whole. Reading the definition of "governmental body" in its contextual environment — as we are bound to do — reveals that the TPIA applies only to entities acting as the functional equivalent
Familiar interpretive guides and established canons of construction inform our reading of section 552.003(1)(A)(xii). In determining the meaning of "supported... by public funds," we begin, as we must, with the statute's plain language. Tex. Lottery Comm'n, 325 S.W.3d at 635. Common English words frequently have a number of dictionary definitions, some quite abstruse and esoteric, others more comprehensible and commonplace. See, e.g., $1,760.00 in U.S. Currency, 406 S.W.3d at 180-81 (noting that "novelty" has multiple dictionary definitions). Not surprisingly, "supported," the key term here, is subject to at least six disparate definitions in its verb form alone, with many of those including more nuanced sub-definitions. See WEBSTER'S THIRD NEW INT'L DICTIONARY 2297 (2002). By reading the term in context, however, we can narrow the universe of possible definitions to the most apposite. See TGS-NOPEC Geophysical Co., 340 S.W.3d at 439.
As always, we are cognizant of the "fundamental principle of statutory construction and indeed of language itself that words' meanings cannot be determined in isolation but must be drawn from the context in which they are used." Id. at 441. We must therefore analyze the reasonableness of each definition in light of the statutory context. See Jaster v. Comet II Const., Inc., 438 S.W.3d 556, 562 (Tex. 2014); see also R.R. Comm'n v. Tex. Citizens for a Safe Future & Clean Water, 336 S.W.3d 619, 628 (Tex.2011) ("We generally avoid construing individual provisions of a statute in isolation from the statute as a whole."). The statute's first contextual clue emerges from the words immediately surrounding "supported." To avoid disharmony with the rest of the statute, "supported" must bear reference to "public funds," so it is clear that non-monetary definitions of "supported" make little sense in context. See WEBSTER'S THIRD NEW INT'L DICTIONARY 921 (2002) (defining "funds" as "available pecuniary resources"). Applying this limitation, we winnow the field down to two potential meanings for "supported," both of which are faithful to the statutory context:
See WEBSTER'S THIRD NEW INT'L DICTIONARY 2297 (2002); accord BLACK'S LAW DICTIONARY 1668 (10th ed. 2009) (defining the term "support" to mean "[s]ustenance or maintenance"). In statutory context, "supported" must thus mean sustenance, maintenance, or both.
Another contextual clue derives from the Act's purpose. The statutory context indicates that all section 552.001(a) entities are either the government or its functional equivalent. First, the statute provides the public with "complete information about the affairs of government and the official acts of public officials and employees." TEX. GOV'T CODE § 552.001(a). The stated purpose of permitting access to this information is to allow the public to "retain control over the instruments they have created." Id. A reasonable definition of "supported" must be compatible with this stated purpose. The statute also specially
Defining "supported" to mean "maintenance" is untenable because doing so risks sweeping any private entity that received any public funds within the definition of a "governmental body." See 407 S.W.3d at 781 (citing Tex. Ass'n of Appraisal Dists., Inc. v. Hart, 382 S.W.3d 587, 591-92 (Tex. App.-Austin 2012, no pet.)). To resurrect the example provided by the court of appeals, if we equate "supported" with supplying an entity with a means by which the entity can pay for necessities, then even a paper vendor with hundreds of clients would qualify as a "governmental body" merely by virtue of getting paid for selling office supplies to a single state office. See 407 S.W.3d at 781. Every company must expend funds to stay in business; it would be impossible to conclude that any business compensated for providing goods or services to a governmental entity pursuant to a quid pro quo contract was not using public funds to pay for necessities. Thus, any entity doing business with the government would be a "governmental body."
"Quid pro quo" means "[a]n action or thing that is exchanged for another action or thing of more or less equal value." See BLACK'S LAW DICTIONARY 1443 (10th ed. 2009). As the dissent agrees, the Legislature did not intend for the statute to reach entities involved in quid pro quo transactions with the government, and it is undisputed that a fair reading of the statute cannot countenance such a result. 407 S.W.3d at 789. We reject any reading of "supported" that would injudiciously apply public transparency laws to private businesses merely because they receive public funds under a contract with the government. Accordingly, the "maintenance" definition of "supported" is not textually viable.
In contrast, defining "supported" as "sustenance" ensures that only an entity, or its "part, section or portion," whose existence is predicated on the continued receipt of government funds would qualify as a "governmental body." Among the meanings of "sustain" are "to cause to continue; to keep up; to carry or withstand; to nourish; to prevent from sinking or giving way." See WEBSTER'S THIRD NEW INT'L DICTIONARY 2304 (2002); see also BLACK'S LAW DICTIONARY 1676 (10th ed. 2009) (defining "sustain" to mean "to nourish and encourage"). Applying this construction, the universe of private entities constituting governmental bodies is obviously more circumscribed because only a small segment of private entities could fairly be considered to be sustained by the government. To be "sustained" by public funds suggests the existence of a financially dependent relationship between the governmental body and a private entity or its subdivision redolent of that between a parent and child or principal and agent. Financial dependency need not be absolute, however. Rather, the government could be one of several contributing sources. But sustenance implies that if the government ceased to provide financial support, the entity would be unable to meet its financial obligations. Unquestionably, a
Because only one definition fits the statutory context, we conclude that "supported ... by public funds" must be appropriately defined to only include those entities "sustained" by public funds — thereby ensuring that the statute encompasses only those private entities dependent on the public fisc to operate as a going concern. Although not dispositive, our conclusion is reinforced by the fact that this construction of the term "supported" is consistent with the scope and nature of the eleven other types of entities more clearly described as a "governmental body" in the same provision. See TEX. GOV'T CODE § 552.003(1)(A). The canon of statutory construction known as noscitur a sociis — "it is known by its associates" — holds that the meaning of a word or phrase, especially one in a list, should be known by the words immediately surrounding it. See TGS-NOPEC Geophysical Co., 340 S.W.3d at 441. We rely on this principle to avoid ascribing to one word a meaning so broad that it is incommensurate with the statutory context. Accordingly, in evaluating the breadth of "supported in whole or in part by public funds," we may consider the scope of the enumerated categories preceding it. See Fiess v. State Farm Lloyds, 202 S.W.3d 744, 750-51 (Tex.2006). Of the eleven other examples of a "governmental body" listed in the statutory definition of the term, two stand out as arguably the most analogous to a private nonprofit like GHP. Thus, we briefly consider each in comparison.
First, the statute expressly identifies as a "governmental body" the governing board of a nonprofit water supply or wastewater service corporation that is organized under Chapter 67 of the Texas Water Code and exempt from ad valorem taxation under the Texas Tax Code. See TEX. GOV'T CODE § 552.003(1)(A)(ix). A nonprofit corporation of this type is authorized to engage in several traditional governmental functions, such as the right to build and operate water- and waste-treatment facilities and sell water to political subdivisions, private entities, or individuals. See TEX. WATER CODE § 67.002. Additionally, depending on the size of the county it serves, a nonprofit water or waste-water service provider may even establish and enforce "customer water conservation practices" through the assessment
The second potentially private "governmental body" identified in the statute is a nonprofit corporation eligible to receive federal funding, in the form of block grants, for anti-poverty programs at the state level. TEX. GOV'T CODE § 552.003(1)(A)(xi). Under this federal initiative, a nonprofit may receive funds if it demonstrates "expertise in providing training to individuals and organizations on methods of effectively addressing the needs of low-income families and communities" through a detailed application process.
The foregoing examples describe ostensibly private entities deputized by the government to provide services traditionally considered governmental prerogatives or responsibilities. Thus, although nominally private, each is in fact acting as a quasi-public entity performing a core governmental function. There is a significant difference between an entity of this nature and one like GHP, and our construction of "supported in whole or in part by public funds" reflects as much by capturing only those entities acting as the functional equivalent of the government. See Fiess, 202 S.W.3d at 751.
Our construction of the term "supported" remains faithful to the TPIA's liberal-construction clause. See TEX. GOV'T CODE § 552.001(b) ("This chapter shall be liberally construed in favor of granting a request for information."). We have consistently recognized this clause expresses an important statement of legislative purpose, and we continue to adhere to it today. See, e.g., City of Garland, 22 S.W.3d at 364 ("Unlike the [Freedom of Information Act], our Act contains a strong statement of public policy favoring public access to governmental information and a statutory mandate to construe the Act to implement that policy and to construe it in favor of granting a request for information."). Still, even a liberal construction must remain grounded in the statute's language and cannot overwhelm contextual indicators limiting public intrusion into the private affairs of nongovernmental entities.
While our construction of the TPIA is supported by a plain-meaning reading of the statute, an examination of similar open-records statutes from other jurisdictions is also instructive. In states where open-records acts apply to entities "supported in whole or in part by public funds," our sister courts have unanimously construed the phrase to exclude, as a general matter, private entities receiving public funds pursuant to quid pro quo agreements without regard to whether such an agreement is the entity's only funding source. See, e.g., Indianapolis Convention & Visitors Ass'n, Inc. v. Indianapolis Newspapers, Inc., 577 N.E.2d 208, 214 (Ind.1991) ("In situations involving a quid pro quo, that is, measured goods or services given in exchange for payment based on identifiable quantities of goods or services, a private entity would not be transformed into a public entity because it would not be maintained and supported by public funds."); Weston v. Carolina Research & Dev. Found., 303 S.C. 398, 401 S.E.2d 161, 165 (1991) ("[T]his decision does not mean that the [open-records act] would apply to business enterprises that receive payment from public bodies in return for supplying specific goods or services on an arms length basis."); Adams Cnty. Record v. Greater N.D. Ass'n, 529 N.W.2d 830, 836 (N.D.1995) ("When there is a bargained-for exchange of value, a quid pro quo, the entity is not supported by public funds."). Additionally, even in those states whose open-records acts fail to define "governmental body" or an equivalent term, our sister courts still narrowly construe the statute to include only private entities that have a relationship so intertwined with the government that they are the "functional equivalent of a governmental agency." Memphis Publ'g Co. v. Cherokee Children & Family Servs., Inc., 87 S.W.3d 67, 78-79 (Tenn.2002); see also State ex rel. Oriana House, Inc. v. Montgomery, 110 Ohio St.3d 456, 854 N.E.2d 193, 198-99 (2006).
Recognizing the right of private businesses to conduct their affairs autonomously, at least one court has adopted a
Our plain-meaning construction also comports with federal precedent interpreting the federal analogue — the Freedom of Information Act (FOIA). See Tex. Comptroller of Pub. Accounts, 354 S.W.3d at 342 (noting that because the Legislature modeled the TPIA on the FOIA, federal precedent is persuasive in construing the Act). Under the FOIA, "agency," the federal equivalent of "governmental body," is defined to include:
5 U.S.C. § 552(f)(1) (2012). In interpreting this broad language, the United States Supreme Court held that a private entity receiving federal funding is considered a "government controlled corporation" and subject to FOIA disclosure requirements only if the private entity is also subjected to "extensive, detailed, and virtually day-to-day supervision" by the government. Forsham v. Harris, 445 U.S. 169, 180, 100 S.Ct. 977, 63 L.Ed.2d 293 (1980). The federal supervision must be "substantial... and not just the exercise of regulatory authority necessary to assure compliance with the goals of the federal grant." Id. at 180 n.11, 100 S.Ct. 977. Thus, narrowly defining "supported in whole or in part by public funds" under Texas law is consistent with the approach of other jurisdictions featuring similar acts and the United States Supreme Court's interpretation of the federal act on which the TPIA is based.
We briefly address some of the contentions in the dissenting opinion. Regarding statutory construction, there is little disagreement about the guiding principles and relevant canons involved here, and we agree, of course, that the canon of noscitur a sociis "cannot be used to render express statutory language meaningless." Op. at 83 (Boyd, J., dissenting). We disagree as to the proper implementation of the canon, however. The dissent asserts that the first eleven definitions of "governmental body" in the TPIA should be cabined off from the twelfth definition of that term because the twelfth definition "uses specific language, inherently different than the language of the other definitions." Id. at 82. The dissent, thus, argues that the nature of the first eleven definitions cannot inform the twelfth. We disagree. All twelve are definitions of governmental bodies, and given that the twelfth definition is the most open-ended, blinders would be required to construe it in isolation
More significant, however, is the dissent's suggestion that the statute is ambiguous. The dissent, building on this imprudent reading, would look to Attorney General decisions and the Kneeland test for "further guidance." Id. at 85. In canvassing the landscape of informal Attorney General rulings and divining instruction therefrom, the dissent resurrects Kneeland's questionable methodology, which did the same. And as that court itself noted, even if "[o]ne may have no quarrel with the formulae," "the direction given is a mite uncertain." Kneeland, 850 F.2d at 228. The dissent finds Kneeland "persuasive" but we do not reach that analysis because of our determination that the statutory language unambiguously excludes GHP from qualifying as a "governmental body." Nonetheless, we think it worth brief pause to note Kneeland's questionable foundation, as it — along with the raft of informal Attorney General rulings that bookend the decision — constitute the "forty years of legal interpretations" that we supposedly ignore in today's opinion.
While the dissent purports to rehabilitate Kneeland, its revised test is at best a partial improvement. The revised test makes it virtually impossible for an entity that provides intangible deliverables, such as consulting, advertising, or legal services, to satisfy the "specific and measurable services" prong of the test. The dissent portrays GHP as sharing only broad, amorphous goals with the City. Yet, the "broad" contract language referenced by the dissent actually refers to GHP's more general overarching objectives (essentially, these statements of objectives function as titles under which specific obligations of the contract are delineated). Each broad objective is followed by a list of specific services GHP promised to provide to achieve those objectives. For example, GHP was hired "to identify new business opportunities, secure economic incentives and increase outreach and recruitment activities to the region's targeted key industries to strengthen the City of Houston as a competitive place to do business." In furtherance of that objective, GHP is contractually obligated to develop business relationships with the top twenty-five companies not currently headquartered in the City; create and implement a business-retention program to provide quick responses to companies in the City; and arrange and host ten recruiting trips, or "Signature Events," for Houston-based executives to visit target companies and pitch them on the City's business advantages. These services are specific and measurable and are the sort of quid pro quo exchanges typical of a vendor services contract in that industry.
The dissent's revised test would also require that "the funds be intended to promote a purpose, interest, or mission that the governmental and private entities share and would both pursue even in the absence of their contractual relationship." Id. at 88. The dissent posits that a law firm may share a broad goal with a client, but the firm's interest remains "transaction specific" in a way that GHP's engagement is not. Id. at 89. At the risk of quibbling, we dispute that this metaphorical dividing line is nearly that clear or marked. Many law firms are hired not merely for a specific litigation matter but rather to provide more enduring and wide-ranging counsel. And more importantly, while the dissent takes for granted that GHP and the City's interests are perfectly aligned (and presumably always will be), that assumption is debatable. For instance, although the vast majority of cities presumably welcome financial investment, growth can prove politically divisive — just witness the debates over gentrification that grip many major cities experiencing explosive economic expansion. Regardless, the point is that GHP is hardly the auxiliary and mirror of the City that the dissent portrays it to be, and the proposed revision of the Kneeland test will not significantly clarify this confused area of the law.
The dissent also contends that "the Court writes the words `in part' completely out of the statutory definition." Id. at 79. Nothing so drastic is occurring here. The statute's "in part" language may envision a multi-division entity that does business with the government, but not uniformly and not across all units. For instance, one can conceptualize a subdivision of a large corporation wholly funded by government contracts; nevertheless, because the subdivision is only a small part of the large organization, the government business forms a relatively small portion of the corporation's total revenue. In this scenario, the organization may be said to be supported "in part" by public funds. Moreover, there may be more overlap between "in part" and the neighboring statutory language than the dissent allows. While we generally attempt to avoid treating statutory language as surplusage, "there are times when redundancies are precisely what the Legislature intended." In re Estate of Nash, 220 S.W.3d 914, 917-18 (Tex.2007); see also In re City of Georgetown, 53 S.W.3d 328, 336 (Tex.2001) (noting that statutory redundancies may mean that "the Legislature repeated itself out of an abundance of caution, for emphasis, or both"). Regardless of whether such drafting caution is at work here, the point remains that there are a host of possible explanations addressing the dissent's concerns.
Amidst all the argument attempting to classify GHP as a governmental body, it is worth recalling precisely what GHP is not: GHP is not a government agency, nor is it a quasi-public agency specifically listed under the Texas Government Code as a "governmental body." GHP does not rely on its government contracts to sustain itself as a going concern; as all parties acknowledge, the government funds it receives constitute a relatively minuscule portion of
GHP, like countless chambers of commerce nationwide, provides marketing, consulting, and event-planning services to the City and other clients pursuant to quid pro quo contracts. Like the lobbying shops and law firms that also populate the State payroll, GHP shares many common objectives with the City, but without more, such shared interests can hardly transform a service provider into a government appendage. A private entity engaged in economically delicate work should not be subjected to invasive disclosure requirements merely because it counts the government as one client among many. Transparency is a real concern, to be sure, and the TPIA's liberal-construction mandate reflects the depth of this interest. But liberal construction is not tantamount to boundless reach. Yet, even if not directly subject to disclosure obligations under the TPIA, GHP's transactions with the government are hardly in a black box; the City — which is indisputably a "governmental body" — must disclose information regarding its contractors, including GHP.
Applying the TPIA's plain and unambiguous language, we hold that GHP is not "supported in whole or in part by public funds" and thus is not a "governmental body" under the TPIA. Because the relevant provisions of the TPIA are unambiguous, we do not apply the analysis outlined in Kneeland v. National Collegiate Athletic Ass'n, 850 F.2d 224 (5th Cir. 1988), nor any other extra-textual construct. We therefore reverse the court of appeals' judgment and render judgment for Greater Houston Partnership.
JUSTICE BOYD filed a dissenting opinion, in which JUSTICE JOHNSON and JUSTICE WILLETT joined.
JUSTICE BOYD, joined by JUSTICE JOHNSON and JUSTICE WILLETT, dissenting.
Forty-two years ago, the Texas Legislature passed what has become "widely regarded as the strongest and most successful open government law in the country."
To enforce the Legislature's policy choice in this case, we must decide what it
This case presents a single question of statutory construction: what does the Texas Public Information Act mean when it refers to a "part, section, or portion" of an entity that is "supported in whole or in part by public funds"? Id. Purporting to rely on "[f]amiliar interpretive guides and established canons of construction," ante at 59, the Court discards over forty years of legal interpretations and announces a brand new interpretation that, at best, reflects the Court's concerns instead of the Legislature's language. In light of the Court's analysis, and to place the issue in perspective, I begin by highlighting the Act's relevant requirements, the reasons for its enactment, prior constructions of the language at issue, and the evidence here regarding the Partnership and its support.
The Public Information Act requires the "officer for public information of a governmental body"
The Act does not require a governmental body to produce public information that is "considered to be confidential by law, either constitutional, statutory, or by judicial decision." Id. § 552.101. The Act itself provides numerous other exceptions to its disclosure requirement, which include, among other things, certain personnel records, id. § 552.102, litigation records, id. § 552.103, information that "would give advantage to a competitor or bidder," id. § 552.104, attorney-client information, id. § 552.107, trade secrets and commercial financial information, id. § 552.110, personal and family information of governmental employees, id. § 552.117(a), and "information [that] relates to economic development negotiations involving a governmental body and a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body," id. § 552.131(a). The Act does not allow a governmental body to unilaterally decide for itself whether it can withhold requested information. Instead, a governmental body that wishes to withhold information in response to a request must ask the Attorney General to decide whether the information fits within one of the Act's exceptions. Id. § 552.301(a).
It is difficult to overstate the Attorney General's role in this process. The Act assigns to the Attorney General the duty to "maintain uniformity in the application, operation, and interpretation" of the Act and authorizes the Attorney General to "publish any materials, including detailed and comprehensive written decisions and opinions, that relate to or are based on this chapter." Id. § 552.011. Upon receipt of a governmental body's request for a decision, the Attorney General considers comments and arguments from any interested person, id. § 552.304(a), and then must "promptly render a decision" on whether the requested information is within one of the Act's exceptions, id. § 552.306(a); see also id. § 552.306(b) (requiring the Attorney General to issue "a written opinion" and provide a copy to the requestor). Through its Open Records Division, the Attorney General's Office issues thousands of open records letter rulings every year, including more than 23,000 in 2014, and it is on pace to surpass that number this year.
If a governmental body refuses to request an Attorney General decision or refuses to produce public information or information that the Attorney General has determined is public and not excepted from disclosure, the Attorney General or a requestor may file suit for a writ of mandamus compelling the governmental body to make the information available. Id. § 552.321. Conversely, a governmental body may file suit against the Attorney General, seeking declaratory relief from compliance with the Attorney General's decision. Id. § 552.324(a). In that suit, however, a governmental body can only rely on exceptions it asserted when it requested the Attorney General's decision, unless the exception is based on a federal law requirement or involves another person's property or privacy interests. Id. § 552.326(a), (b).
The Act's requirements apply only to a "governmental body," which the Act defines to mean:
Id. § 552.003(1)(A)(i)-(xii). The question here is whether the Greater Houston Partnership is "supported in whole or in part by public funds," and thus a "governmental body" under part (xii). "Public funds" means "funds of the state or of a governmental subdivision of the state." Id. § 552.003(5).
The Public Information Act is unique in its extensive explanation of the policies that led to its enactment. As the Court explains, the Legislature first adopted the Act in response to the "Sharpstown scandal." Ante at 57. The Act begins by expressing the "fundamental philosophy" that "government is the servant and not the master of the people" and "the policy of this state that each person is entitled, unless otherwise expressly provided by law, at all times to complete information about the affairs of government and the official acts of public officials and employees." TEX. GOV'T CODE § 552.001(a). While the people of Texas have delegated governing authority to public employees, they "do not give their public servants the right to decide what is good for the people to know and what is not good for them to know." Id. Because "[t]he people insist on remaining informed so that they may retain control over the instruments they have created," the Act expressly provides that it "shall be liberally construed to implement this policy." Id. Courts must construe the Act's provisions "in favor of disclosure of requested information." Jackson v. State Office of Admin. Hearings, 351 S.W.3d 290, 293 (Tex.2011); see also TEX. GOV'T CODE § 552.001(b) ("This chapter shall be liberally construed in favor of granting a request for information.").
Pursuant to their responsibility to "maintain uniformity in the application, operation, and interpretation" of the Act, TEX. GOV'T CODE § 552.011, Texas Attorneys General have issued numerous opinions addressing whether private entities — including several chambers of commerce and similar organizations — were "supported in whole or in part by public funds." Respecting the Attorney General's unique role, courts have given deference to Attorney General interpretations and applications, most notably the Fifth Circuit in Kneeland v. National Collegiate Athletic Ass'n, 850 F.2d 224, 228 (5th Cir. 1988).
In 1973, shortly after the Act became effective, the Attorney General's very first open records decision addressed the statutory language we address today and concluded that a private bank was not "supported in whole or in part by public funds" merely because it received and held deposits of public funds. Tex. Att'y Gen. ORD-1 (1973). Six years later, the Attorney General concluded that an organization very similar to the Partnership — a private, nonprofit corporation chartered to promote the interests of the Dallas-Fort Worth metropolitan area — was a governmental body under the Act. Tex. Att'y Gen. ORD-228 (1979). Pursuant to a contract, the City of Fort Worth paid the corporation $80,000 to "[c]ontinue its current successful programs and implement such new and innovative programs as will further its corporate objectives and common
Three years later, the Attorney General relied on ORD-228 to find that another chamber-of-commerce-like organization — a private, nonprofit entity created to promote manufacturing and industrial development in the Bryan area — was a governmental body because the City of Bryan's contractual payment of $48,000 was like an "unrestricted" grant, rather than payment for specific measurable services. Tex. Att'y Gen. ORD-302 (1982) (noting that the situation was "virtually identical" to that in ORD-228). That same year, the Attorney General concluded that a private medical service provider for the Amarillo Hospital District was not a governmental body under the Act because the parties' contract prescribed specific measurable services, including ambulance services, for which the provider received a monthly sum "equal to the difference between cash receipts and approved operating expenditures of the ambulance service." Tex. Att'y Gen. ORD-343 (1982).
The following year, the Attorney General determined that a proposed athletic conference consisting of member universities would be a governmental body under the Act because each university would pay an upfront "membership fee" and subsequent annual fees that would be used for the conference's "general support ... rather than being attributable to specific payments for specific measurable services." Tex. Att'y Gen. Op. No. JM-116 (1983) (quoting Tex. Att'y Gen. ORD-228). The conference's constitution stated one of its purposes was to aid members in incorporating intercollegiate athletics within their educational programs and to "place and maintain such athletics under the same administrative and academic control." Id. The constitution did not identify any specific, measurable services that the conference would provide in exchange for the public funds. Id.
The Attorney General later determined that a private high school and a private nonprofit water supply corporation were not governmental bodies because neither of them received any public funds. Tex. Att'y Gen. Op. Nos. JM-154 (1984), JM-596 (1986). Then, in 1987, the Attorney General concluded that a volunteer fire department was a governmental body under the Act because fire protection is "traditionally provided by governmental bodies," volunteer fire departments have "strong affiliations with public agencies," and the contract provided the department with funds "to carry on its duties and responsibilities," which the Attorney General considered to be for its "general support." Tex. Att'y Gen. Op. No. JM-821 (1987). The Attorney General stated that the "test" for whether an entity is a governmental body under the Act "cannot be applied mechanically" and that the "precise
In 1988, the Fifth Circuit was asked whether the National Collegiate Athletic Association (NCAA) and the former Southwest Conference (SWC), which received public funds from several Texas public universities, were "supported in whole or in part by public funds" and thus "governmental bodies" under the Act. Kneeland, 850 F.2d at 228. In addressing this issue, the Court expressly based its analysis on the Attorneys General's prior decisions, noting that "[t]he usual deference paid to formal opinions of state attorneys general is accentuated in this case because the Texas Legislature has formally invited its Attorney General to interpret the Act when asked to do so." Id. at 228-29. Construing the statute's language and extrapolating principles from the Attorneys General's decisions, the Court cobbled together the following criteria — now known as the "Kneeland test" — for determining whether a private entity is "supported ... by public funds" and thus a governmental body under the Act:
Based on these principles and the Attorneys General's decisions from which they were drawn, the Kneeland court held that the NCAA and SWC were not governmental bodies under the Act. Id. at 230-31. With respect to the NCAA, the court concluded that the universities "receive[d] a quid pro quo, in sufficiently identifiable and measurable quantities of services," in exchange for the public funds they paid to the NCAA. Id. at 230. Similarly, the court concluded that the SWC provided "specific and guageable services which negate[d] the general support element required for a governmental body designation." Id. at 231.
Attorneys General have had several opportunities to address the issue since Kneeland, and in doing so have adopted
In 1992, the Attorney General concluded that the Dallas Museum of Art was a governmental body under the Act, even though it received 85% of its revenue from private sources. Tex. Att'y Gen. ORD-602 (1992). The city owned some of the artwork at the museum, owned and maintained the premises housing the museum, and paid the museum's utilities, half of the museum employees' salaries, and a pro rata portion of the insurance premiums. Id. The museum admitted that it received public funds but argued that it received the funds in exchange for "known, specific, and measurable services" as opposed to general support. Id. Relying on Kneeland and the prior decisions, the Attorney General disagreed, concluding that while the city received "valuable services in exchange for its obligations" to the museum, those "highly specialized, unique services" could not be "known, specific, or measurable," and the city thus instead provided funds for the museum's general support. Id. The Attorney General nevertheless held that the museum was not required to disclose the requested records because only the part of the museum supported by public funds was a governmental body, and the records related to a collection the museum owned as part of its permanent collection, not to the part of the museum for which the city provided "direct support." Id. (noting the city's ownership of the building in which the collection was housed and its payment of a portion of the overhead expenses was "tangential" and "insufficient to bring documents relating to the collection within the scope of the act").
Again addressing chamber-of-commerce-type entities, the Attorney General conducted a similar analysis in holding that the Arlington Chamber of Commerce and the Arlington Economic Development Foundation were governmental bodies under the Act. See Tex. Att'y Gen. ORD-621 (1993). The foundation admitted that it received public funds but argued that it did so in exchange for specific, measurable services. Id. The Attorney General disagreed, concluding that while the city received "valuable services in exchange for the public funds," the agreement failed "to impose on the foundation a specific and definite obligation to provide a measurable amount of services in exchange for a certain amount of money, as one would expect
Eight years later, the Attorney General reached the same result with respect to the Round Rock Chamber of Commerce, observing that its contract with the City of Round Rock neither restricted the chamber's use of the public funds it received nor imposed any "specific and definite obligation to provide a measurable amount of services in exchange for a certain amount of money, as one would expect to find in a typical arms-length contract." Tex. Att'y Gen. OR2001-4849 (2001).
And a few years after that, the Attorney General held that the Greater Houston Partnership itself was a governmental body under the Act, under a similar analysis. Tex. Att'y Gen. OR2004-4221 (2004). The Partnership specified in its request for an Attorney General's ruling that the requested records related to a project being handled by a specific part of the Partnership, the Economic Development Division. At that time, different contracts governed the Partnership's relationship with the City of Houston. Examining those contracts' provisions — including one that obligated the Partnership to "support the efforts of the University of Houston Small [B]usiness Development Center in the conduct of the Director Business Assistance Program, designed to assist and promote the efforts of local businesses and entrepreneurs to form new business ventures or to expand existing business ventures" — the Attorney General determined that, "[a]lthough... the city is receiving valuable services in exchange for its obligations under this contract, the [Partnership] has not sufficiently demonstrated that the nature of the services it provides are known, specific, or measurable." Id. "Consequently," the Attorney General concluded, "the [Partnership's] records concerning its operations that are directly supported by governmental bodies are subject to the Act as public information." Id. (emphasis added).
In addition to arguing that it was not a governmental body, the Partnership alternatively relied on the Act's exceptions to disclosure for certain economic development information and for certain email addresses. See id.; TEX. GOV'T CODE §§ 552.131 (excepting certain information relating to economic development negotiations), 552.137 (excepting certain email addresses). The Attorney General agreed in part and disagreed in part, instructing the Partnership to release some but not all of the documents submitted to the Attorney General for review. See Tex. Att'y Gen. OR2004-4221.
In 2007, the Attorney General again relied on Kneeland and the distinction between use of public funds for "general support" as opposed to payment for "specific and measurable services" to conclude that a family planning service provider that contracted with the Department of State Health Services was a governmental body under the Act. Tex. Att'y Gen. OR2007-06167 (2007). Similarly, in 2011, the Attorney General decided that channel Austin, a nonprofit corporation that contracted with the City of Austin "to manage the equipment, building, resources, and the three channels for Public Access," received public funds as an "unrestricted grant" for its "general support rather than payment for specific services." Tex. Att'y Gen. OR2011-17967 (2011).
In a 2008 formal opinion, the Attorney General observed, consistent with the Kneeland test, that it is sometimes significant that the private entity has a "common purpose or objective or one that creates an
With the statute's language and these prior decisions in mind, I turn to the facts at issue here. The Greater Houston Partnership is a private nonprofit corporation that functions as a chamber of commerce to promote job creation, increased trade, and capital investment in the greater Houston area. For many years, including 2007 and 2008, the Partnership entered into an annual "Agreement for Professional Services" with the City of Houston, in which the Partnership agreed to perform certain marketing, research, and promotional services designed "to increase investment in, and to improve the economic prosperity of Houston and the Houston Airport System."
The services agreements specified that the Partnership was an independent contractor, but they also gave the City certain rights to participate in and control some of the Partnership's activities. Among other things, the Partnership agreed to coordinate its efforts with the directors of the City's Department of Convention & Entertainment Facilities, Department of Planning and Development, and the Houston Airport System (the Directors); to submit quarterly progress reports "describing in detail services performed"; to provide any other reports the Directors request; to produce any non-confidential records the City Attorney requires to evaluate the Partnership's compliance with the contract; and to inform the City of any claims arising out of the Partnership's failure to pay its employees, subcontractors, or suppliers. The contracts granted the City "full membership and exclusive benefits as a General Partner" of the Partnership,
The 2008 agreement differs from the 2007 agreement in several respects. While the 2007 agreement required the Partnership to "implement a program" to increase investments in the Houston area, the 2008 agreement required the Partnership to provide "specific, measurable services" to increase investments. While the 2007 contract permitted the City to require the Partnership to terminate any employee or subcontractor whose work the Directors deemed unsatisfactory, the 2008 contract only required the Partnership to "consider removing" any such employee or subcontractor. And unlike the 2007 agreement, the 2008 agreement stated that the City's payments were solely for services rendered and were not intended as general support for the Partnership's other activities, and expressly provided that nothing in the agreement shall be construed to imply that the Partnership is subject to the Texas Public Information Act.
In May 2008,
Consistent with its 2004 ruling, the Attorney General's Open Records Division ruled that the Partnership is a governmental body and must comply with the Act's requirements. Tex. Att'y Gen. OR2008-16062 (2008). The Partnership filed suit against the Attorney General to challenge the ruling, and Jenkins intervened. The trial court agreed with the Attorney General and held that the Partnership is a governmental body under the Act. The Partnership appealed, and the court of appeals affirmed, with one justice dissenting. 407 S.W.3d 776. We initially denied the Partnership's petition for review, but we later granted its motion for rehearing and its petition, to address when a private entity may qualify as a governmental body under the Act.
The issue here is whether the Greater Houston Partnership is "supported in whole or in part by public funds" and is thus a "governmental body" under the Act.
The Partnership makes three arguments as to why it is not a "governmental body" under the Public Information Act. First, the Partnership contends the phrase "supported... by public funds" unambiguously does not include the City's contractual payments to the Partnership. Next, the Partnership argues, even if the language is ambiguous, the Court should reject the Kneeland test because it is unclear and not grounded in the statutory language. Third, if the Court does adopt the Kneeland test, the Partnership argues it is not "supported ... by public funds" even under that test. The Court agrees with the Partnership's first argument — that the statute unambiguously does not apply to the Partnership — but also notes its displeasure with the Kneeland test. I disagree. I would hold that the statute is ambiguous, adopt but clarify the Kneeland test, and conclude that under that test the Partnership "is supported in whole or in part by public funds."
The Court begins its analysis by noting that the term "supported" can have several different meanings. Ante at 72-75. Because "supported by" in the clause at issue refers specifically to "public funds," the Court concludes that the Act focuses solely on monetary support. Ante at 72-75. The Court then proceeds to identify two different requirements that must each exist for a private entity to receive monetary "support," which I will refer to as the "sustenance" requirement and the "functional equivalent" requirement. Ante at 58-59 (agreeing with Partnership's contention that definition only includes "entities that were created or exist to carry out government functions and whose existence are maintained in whole or in part with public funds"). Although the Court asserts that it is simply applying a "plain language" approach to construing the statute, ante at 58-59, and is not relying on any "extra-textual analytical construct," ante at 56, neither of the Court's two requirements appears anywhere in the statute's language. I do not agree that the Act's language "unambiguously" supports the judicial insertion of either requirement into its definition of a "governmental body."
Addressing the first requirement, the Court says "supported" can mean (and here must mean) "sustenance, maintenance, or both." Ante at 59. The Court provides this as the "maintenance" definition of "supported": "to pay the costs of: maintain; to supply with the means of maintenance (as lodging, food or clothing) or to earn or furnish funds for maintaining[.]" Ante at 59 (quoting WEBSTER'S THIRD NEW INT'L DICTIONARY 2297 (2002)). The Court then concludes that "supported" cannot mean "maintenance" in this context
In contrast to the "maintenance" definition, the Court gives this "sustenance" definition of "supported": "to provide a basis for the existence or subsistence of: serve as the source of material or immaterial supply, nourishment, provender, fuel, raw material, or sustenance of." Ante at 59 (quoting WEBSTER'S THIRD NEW INT'L DICTIONARY at 2297). The Court thus distinguishes between the "maintenance" meaning of "supported" and the "sustenance" meaning of "supported" and concludes that in the context of the Act, "supported by" can only mean the latter, so the Act applies only to private entities "sustained, at least in part, by public funds, meaning they would not perform the same or similar services without public funds." Ante at 53.
Although the Court reads far more into these two definitions of "support" than I find there, as explained below, I generally agree that the term "support" must refer here to monies paid as general funds to sustain the recipient, rather than funds paid as consideration for specific goods or services. But the Court goes far beyond that principle today, and holds that an entity is "supported in whole or in part by public funds" only if the entity cannot survive without those funds. As a result, the Court writes the words "in part" completely out of the statutory definition. To be sure, the Court creates the appearance that it is actually enforcing the statute as written by referring to the "supported ... in part" language several times in its opinion:
But despite these lip-service payments to the statute's language, the Court repeatedly holds that an entity (or any part, section, or portion of an entity) that receives public funds as sustenance (as opposed to maintenance) is not a governmental body unless it cannot survive and pursue its mission without those funds:
The Court thus holds that a private entity that receives public funds can be a governmental body under the Act only if it cannot "survive" or "exist" or "pursue its mission and objectives" without those public funds, even if those funds are just "one of several contributing sources." I disagree. An entity that is "sustained" (as the Court uses that word) by funds it receives from several different sources is sustained "in part" by the funds from each of those sources, even if it could survive and pursue its mission without the funds from any one source. The Court asserts that "sustenance implies that if the government ceased to provide financial support, the entity would be unable to meet its financial obligations." Ante at 60. But even if that were true,
The Court attempts to justify its "surviv[al]" requirement by suggesting that the statute's "`in part' language may envision a multi-division entity that does business with the government, but not uniformly and not across all units." Ante at 66. "For instance," the Court explains, if a "large corporation" has a "subdivision" that "is wholly funded by government contracts," but the government funds are only "a relatively small portion of the corporation's total revenue," the corporation "may be said to be supported `in part' by public funds." Ante at 66. This illustration confuses the statute's reference to "supported in part" with its reference to the "part, section, or portion" of an entity. The statute provides that the "part, section, or portion" of an entity is a governmental body if it is "supported in whole or in part by public funds." TEX. GOV'T CODE § 552.003(1)(A)(xii). The Court is correct that, if one subdivision of a large corporation is "supported in whole ... by public funds," then the corporation itself is "supported... in part by public funds." But the statute permits the corporation to limit the Act's application to the subdivision by showing that only that subdivision (i.e., that "part, section, or portion" of the corporation)
A relevant illustration is this: even if only 5% of the funds that support the Court's hypothetical corporate subdivision were public funds, the subdivision would still be "supported in part" by those funds, and would thus be a governmental body under the Act's plain language. An entity "supported ... in part by public funds" is a governmental body, regardless of whether it could "survive" or "pursue its mission" without those funds. See id. The Court's construction reads this language out of the Act by requiring the whole of the entity to live or die by the public fisc.
The Court also holds that an entity is not "supported in whole or in part by public funds" unless it is "acting as the functional equivalent of a governmental body," ante at 64, and providing "services traditionally considered governmental prerogatives or responsibilities," ante at 62. As with its first requirement, the Court does not derive this requirement from the statutory definition at issue. Subsection (xii) expressly identifies several types of entities that typically are not public (or governmental) entities, including an "organization," a "committee," an "institution," and — importantly, here — a "corporation." The Act says such private entities are governmental bodies if they are "supported in whole or in part by public funds," not if they are acting as the "functional equivalent" of a governmental body or performing traditional government responsibilities. TEX. GOV'T CODE § 552.003(1)(A)(xii). The Court, however, asserts three bases for imposing this requirement: (1) the Act's "stated purpose"; (2) the statute's omission of "any broad reference to private entities"; and (3) the "scope and nature of the eleven other types of entities more clearly described as a `governmental body' in the same provision," ante at 61. I do not agree that any of these justifies writing the Court's "functional equivalent" requirement into the statute.
First, the Court suggests that requiring a private entity to be the "functional equivalent" of a governmental body is necessary to ensure that our construction of "supported" is "compatible with" the Act's "stated purpose." Ante at 59 This "stated purpose," the Court explains, is to provide the public with "complete information about the affairs of government and the official acts of public officials and employees" to "allow the public to `retain control over the instruments they have created.'" Ante at 59 (quoting TEX. GOV'T CODE § 552.001(a)). Although the Court makes no effort to explain why this purpose necessitates or implies the "functional equivalent" requirement, I presume the Court finds hidden meaning in the purpose statement's reference to the "affairs of government," the "acts of public officials and employees," and the "instruments ... created," as if the words I have emphasized exclude any purpose to require disclosure of information held by a private entity. But to emphasize a different word, the statute's purpose is to provide "complete information" about those affairs, acts, and instruments. The Legislature may have believed that the only way to ensure the public has "complete" information about what their government is doing is to treat some private entities as governmental bodies under the Act. Whatever we may presume about what the Legislature may have "believed," what the Legislature "said" was that "governmental body" includes any entity "supported in whole or in part
As a second reason for requiring a private entity to be the "functional equivalent" of a governmental body, the Court asserts that the definition does not include "any broad reference to private entities." Ante at 60.
For the third (though "not dispositive") reason for requiring a private entity to be the "functional equivalent" of a governmental body, the Court relies on the "canon of statutory construction known as noscitur a sociis." Ante at 61. This canon provides "that a word is known by the company it keeps." Fiess v. State Farm Lloyds, 202 S.W.3d 744, 750 (Tex.2006) (quoting Gustafson v. Alloyd Co., 513 U.S. 561, 575, 115 S.Ct. 1061, 131 L.Ed.2d 1 (1995)). It "directs that similar terms be interpreted in a similar manner," TGS-NOPEC Geophysical Co. v. Combs, 340 S.W.3d 432, 441 (Tex.2011), but there is no similarity between the words in definition (xii) — an "organization" or "corporation" that is "supported in whole or in part by public funds" — and those in the preceding definitions. If definition (xii) provided "general" language, following "specific and particularized enumerations" in the first eleven definitions, then we would "treat the general words as limited and apply them only to the same kind or class of [things] as those expressly mentioned." City of San Antonio v. City of Boerne, 111 S.W.3d 22, 29 (Tex.2003). But definition (xii) uses specific language, inherently different than the language of the other definitions, and thus refers to something specific, not just a catch-all to conclude the preceding definitions. Under noscitur a sociis, we should look to the words "immediately surrounding" the phrase "supported by," which include the words "public
Even if the Court were applying the doctrine of noscitur a sociis correctly here, that doctrine cannot be used to render express statutory language meaningless. "If ... the specific terms exhaust the class of items enumerated in the statute, it must be presumed that any generic term that follows must refer to items transcending the class, since a contrary construction `would contravene the more important rule of construction that all words are to be given effect.'" Shipp v. State, 331 S.W.3d 433, 437 (Tex.Crim.App.2011) (quoting 2A NORMAN J. SINGER & J.D. SHAMBIE SINGER, SUTHERLAND STATUTORY CONSTRUCTION § 47:21 at 390-91 (7th ed.2007)); see also Columbia Med. Ctr. of Las Colinas, Inc. v. Hogue, 271 S.W.3d 238, 256 (Tex.2008) ("The Court must not interpret the statute in a manner that renders any part of the statute meaningless or superfluous."); City of San Antonio, 111 S.W.3d at 29 (rejecting construction that would render some statutory language unnecessary and citing Spence v. Fenchler, 107 Tex. 443, 180 S.W. 597, 601 (1915), for the proposition that "[i]t is an elementary rule of construction that, when possible to do so, effect must be given to every sentence, clause, and word of a statute so that no part thereof be rendered superfluous or inoperative"). We must "read the statute contextually," Office of Att,'y Gen., 422 S.W.3d at 629, considering the relevant language in the context of the statute as a whole, rather than as "isolated provisions," TGS-NOPEC Geophysical, 340 S.W.3d at 439, and endeavoring to "giv[e] effect to every word, clause, and sentence," In re Office of Att'y Gen., 422 S.W.3d 623, 629 (Tex.2013), so that none of the language is rendered superfluous, see Crosstex Energy Servs., L.P. v. Pro Plus, Inc., 430 S.W.3d 384, 390 (Tex.2014). Because the Court's construction renders the phrase "in whole or in part" meaningless, I do not agree that definition (xii) includes "organizations" and "corporations" only if they "function as quasi-public" entities. Ante at 62.
If a statute's words are susceptible to two or more reasonable interpretations, and we "cannot discern legislative intent in the language of the statute itself," the statute is ambiguous, and we may rely on applicable canons of statutory construction. Tex. Lottery Comm'n v. First State Bank of DeQueen, 325 S.W.3d 628, 639 (Tex.2010). I would conclude that the words "supported by" are ambiguous in this context, and would thus grant deference to the Attorneys General's long-standing construction of the Act's definition of a "governmental body." See Combs v. Health Care Servs. Corp., 401 S.W.3d 623, 629-30 (Tex.2013) (stating that we grant deference to construction of agency that is charged with enforcement of statute if statute is ambiguous, agency interpretation results from formal proceedings, and interpretation is reasonable). Though not controlling, I would consider the Attorney General constructions to be persuasive, particularly in light of the responsibility the Legislature has given the Attorney General for "interpreting" and promoting uniformity in the application of the Act. See TEX. GOV'T CODE § 552.011; see also City of Dall v. Abbott, 304 S.W.3d 380, 384 (Tex.2010) (observing that Attorneys General's interpretations of Public Information Act are persuasive but not controlling).
The Court and the parties agree that not every private entity that contracts with the government and receives payments of public funds is "supported ... by public funds." More specifically, they agree with the Attorneys General's conclusion that an ordinary, arms-length transaction between a private party and a governmental entity does not render the private party a "governmental body" under the Act. They agree that something more is required, but they dispute whether that something is present here. I too agree that something more is required, but I conclude that the statute is ambiguous as to what that something is.
The phrase "supported by" can have multiple common, ordinary meanings, including:
WEBSTER'S II NEW COLLEGE DICTIONARY 1108 (1995).
I agree with the Court that most of these definitions do not apply in this statutory context, which limits "support" to a function that can be performed by money. See TGS-NOPEC Geophysical, 340 S.W.3d at 441 (using statutory context to eliminate inapplicable meanings of a word in the statute). An ordinary reader could construe some of the broader definitions to include financial "support": e.g., public funds could "carry the [financial] weight of" an entity. See WEBSTER'S II NEW COLLEGE DICTIONARY at 1108. In context, the most relatable definition is "[t]o provide for, by supplying with money or necessities." Id. The Partnership relies on this common meaning and argues that, just as a person "pays" an employee but "supports" a family member, the City "paid" rather than "supported" the Partnership. But even this definition of "support" does not resolve the statute's ambiguity because the statute requires only that the entity be supported "in whole or in part" by public funds. TEX. GOV'T CODE § 552.003(1)(A)(xii) (emphasis added).
As the Court notes, in the broadest sense, virtually any income from public funds could reasonably be considered to
Although this Court has not previously construed the Act's "supported by" language, the Fifth Circuit has in Kneeland, and Attorneys General have since consistently relied on the Kneeland test as the governing standard. The Partnership urges us to reject the Kneeland test, asserting that it "has no basis in the statutory text" and leaves too much uncertainty in the law. The Attorney General counters that the Kneeland test "satisfies the legislature's intent[] to shed light on the affairs of government" and "provides a workable framework for determining whether an entity is a governmental body under the [Act] because it treats entities functioning as governmental bodies as such while eliminating vendors providing goods and services through arms-length contracts from the definition."
I would conclude that the Kneeland test and its related precedent offer persuasive, though not controlling, legal authority. See Christus Health Gulf Coast v. Aetna, Inc., 237 S.W.3d 338, 343 & n.8 (Tex.2007) (noting that Fifth Circuit precedent is persuasive but not binding on this Court) (citing Penrod Drilling Corp. v. Williams, 868 S.W.2d 294, 296 (Tex.1993)). The test is founded on deference to the Attorneys General's interpretations of the Act, which are likewise persuasive but not controlling. See City of Dall., 304 S.W.3d at 384. The Court complains that the Kneeland test has a "questionable foundation," noting that even the Kneeland court acknowledged that its explanation of its holding was "a mite uncertain." Ante at 65 (quoting Kneeland, 850 F.2d at 224). But as
First, to be "supported by" public funds, a private entity must at least "receive" public funds, so an entity that does not receive public funds is not a governmental body under this provision. Thus, while the Attorney General was cognizant in JM-821 that the role of a volunteer fire department is one "traditionally provided by governmental bodies," this fact, standing alone, is not enough. See Tex. Att'y Gen. Op. No. JM-821. Arguably, at least, the private high school in JM-154, the water supply corporation in JM-596, and the Fiesta planning commission in ORD-569 also provided services "traditionally provided by governmental bodies." See Tex. Att'y Gen. ORD-569; Tex. Att'y Gen. Op. Nos. JM-154, JM-596. But because they did not receive public funds, they were not governmental bodies under part (xii). See TEX. GOV'T CODE § 552.003(1)(A)(xii). As the Attorney General recognized, "[t]he threshold question is whether the [private entity] receives any funds from the [public fisc]." Tex. Att'y Gen. ORD-569; see also Tex. Att'y Gen. OR2013-09038 (determining that El Paso Zoological Society that received no public funds was not a governmental body).
Everyone agrees, however, that merely "receiving" public funds does not equate to being "supported by" those funds. Governmental entities regularly purchase a wide variety of goods and services from private vendors, including everything from legal pads to legal services, and I agree that such vendors are generally not "supported... by public funds" as a result of such transactions, at least as the Act uses that term. Thus, a private entity that receives public funds in exchange for assuming an "obligation to provide a measurable amount of service in exchange for a certain amount of money as would be expected in a typical arms-length contract for services between a vendor and purchaser" is not "supported by" those public funds, and is not a governmental body under the Act. CareFlite v. Rural Hill Emergency Med. Servs., Inc., 418 S.W.3d 132, 141-42 (Tex.App.-Eastland 2012, no pet.) (holding that medical service provider was not a governmental body); see also Hart, 382 S.W.3d at 595 (holding that association of appraisal districts was not a governmental body).
A second requirement for a private entity to be "supported ... by public funds," then, should be that the private entity must receive public funds not as compensation or consideration paid in exchange for "specific goods" or "specific measurable services," but as a general or unrestricted payment provided to subsidize or underwrite the private entity's activities. See Tex. Att'y Gen. Op. No. GA-666; compare Tex. Att'y Gen. ORD-228 (concluding that commission was governmental body because it received public funds "used for [its] general support"); Tex. Att'y Gen. ORD-302 (concluding that promoter of manufacturing and industrial development was governmental body because it was
This requirement would most easily be met when a governmental entity provides a "grant" to promote the private entity's activities, but it may also be met when the governmental entity "pays" the private entity to provide services to or for the governmental entity or its constituents. The terminology that the parties choose to use should not be determinative. A key factor in the context of a service contract like those at issue here would be whether the relationship between the service provider and the governmental entity is the kind of "quid pro quo" relationship common in the service industry, see Kneeland, 850 F.2d at 230, or whether the relationship is something more akin to a governmental body outsourcing governmental services to a private entity, see Tex. Att'y Gen. ORD-228, ORD-302; see also Hart, 382 S.W.3d at 595 (observing that association of appraisal districts did not perform services traditionally performed by governmental bodies and instead provided services under conditions similar to what would be expected in typical arm's-length transaction).
In this context, I note that the Attorney General's ruling here should have come as no surprise to the Partnership, as Attorneys General have repeatedly concluded that chambers of commerce, see Tex. Att'y Gen. Nos. ORD-621 (Arlington Chamber of Commerce), OR2001-4849 (Round Rock Chamber of Commerce), chambers-of-commerce-like entities, see Tex. Att'y Gen. ORD-228 (entity chartered to promote interest of Dallas-Fort Worth metropolitan area), ORD-302 (entity promoting manufacturing and industrial development around City of Bryan), and even the Partnership itself, see Tex. Att'y Gen. OR2004-4221, are governmental bodies under the Act. But these conclusions are based on a "fact-specific" analysis of the contract and context of each case. See Kneeland, 850 F.2d at 228; see also CareFlite, 418 S.W.3d at 138 ("The answer to the [governmental-body] inquiry depends upon the circumstances of each case."). As the Attorney General has confirmed, a chamber of commerce that is not "supported in whole or in part by public funds" is not a governmental body under the Act. See Tex. Att'y Gen. OR2015-05495 (2015) (finding Central Fort Bend Chamber of Commerce is not governmental body because it only received public funds as membership fees paid for specific measurable services).
With regard to this second requirement, I would not dictate that the public funds equal a particular amount or percentage of the entity's total revenue, nor would I mandate that the entity require those funds for its existence or survival. The Act defines "governmental body" to include "the part, section, or portion" of an entity that is "supported in whole or in part by public funds." TEX. GOV'T CODE § 552.003(1)(A)(xii). Thus, public funds could make up only a small portion of an entity's total revenues and yet provide general support, and even the sole support, for a particular part, section, or portion of the entity, or support "in part" of the entity as a whole. See Tex. Att'y Gen. ORD-602 (holding that city provided general support to museum even though public funds constituted only 15% of total revenue, but only portion of museum that received "direct support" was a governmental
Finally, to ensure that the funds are received as a general or unrestricted payment to subsidize or underwrite the private entity's activities, a third requirement should be that the funds be intended to promote a purpose, interest, or mission that the governmental and private entities share and would both pursue even in the absence of their contractual relationship. The mere existence of an "agency-type relationship" or a "common purpose or objective," or even the fact that the service is one "traditionally provided by governmental bodies," should not be sufficient by itself to meet this third requirement. See Tex. Att'y Gen. Op. No. GA-666; Kneeland, 850 F.2d at 228-29.
Instead, I would hold that a supportive relationship exists when the parties share a true "identity of interests" that each of them has beyond any particular transaction or finite series of transactions between them. See Kneeland, 850 F.2d at 228-29 ("[T]here apparently is some common purpose or objective between the association and the universities, or they would not be drawn to each other, but there is no real identity of interest and neither may be considered the agent of the other."). The volunteer fire department in JM-821 provides an example of this more extensive "identity of interests" relationship. See Tex. Att'y Gen. Op. No. JM-821. There, the private entity and the governmental entity each independently had the purpose of protecting citizens and property from fires and other hazards, and the governmental entity promoted the private entity's pursuit of that purpose by providing "general support." See id.
I would thus distinguish between (1) a situation in which a private entity contractually undertakes a governmental entity's objectives because the governmental entity agrees to pay for those services, and (2) a situation in which a private entity and a governmental entity that each independently have the same purpose or interest, and thus an "identity of interest," contractually
In summary, then, I would clarify the Kneeland test and hold that a private entity (or a part, section, or portion thereof) is "supported in whole or in part by public funds," and is thus a governmental body under the Public Information Act, if (1) the private entity receives public funds; (2) it does so not as compensation or consideration made in exchange for "specific goods" or "specific measurable services," but as a general or unrestricted payment provided to subsidize or underwrite the private entity's activities; and (3) the funds provided are intended to promote a purpose, interest, or mission that the governmental and private entities share and would each pursue even in the absence of their contractual relationship.
The Partnership, which undisputedly received public funds, asserts that its agreements with the City were arm's-length, quid pro quo contracts that only obligated it to perform specific and measurable services. The Attorney General disagrees, contending that the Partnership was "paid a certain amount of money on a quarterly basis to accomplish a broad range of goals designed to promote the City." The Court agrees with the Partnership. Under the facts of this record, I would conclude that the Partnership meets all three requirements for being "supported ... by public funds."
The parties do not dispute, and I agree, that some of the provisions in the Partnership's contracts with the City imposed specific and definite obligations on the Partnership to provide a measurable amount of service. The court of appeals also agreed, but found that the Partnership's "major obligations under the contract are not specific, definite, or tied to a measurable amount of service for a certain amount of money." 407 S.W.3d at 784. The court
Id. at 784. In light of these provisions, the court of appeals concluded that it could not "say that overall the contract here imposes specific and definite obligations on [the Partnership] to provide a measurable amount of services to the City of Houston in exchange for a certain amount of money, as would be expected in a typical arms-length contract for services between a vendor and purchaser." Id.
The Partnership contends, and the Court apparently agrees, that its contractually mandated performance reports provide the missing specifics for the broader obligations on which the court of appeals relied. The Partnership also asserts that some of its contractual obligations are necessarily vague because "in the context of intangible deliverables it would be nearly impossible to provide greater details." For example, the contracts require the Partnership to "make its research capabilities available on request to" the City of Houston's convention and entertainment facilities department and its convention and visitor's bureau "to facilitate the creation of professional, sophisticated marketing reports," but the City cannot predict all of the groups that might approach it during the course of a year with an interest in the convention center. The Partnership also takes issue with the court of appeals' observation that the Partnership does not perform its obligations "in exchange for a certain amount of money," as the Partnership is paid a set amount on a quarterly basis "regardless of whether or how much it does in furtherance of the contract's goals." According to the Partnership, "this observation fails to acknowledge or appreciate that all payments under the contracts are made `in arrears and are contingent upon receipt and approval'" of the Partnership's performance reports.
I agree with the court of appeals that while some of the services the Partnership provides under the contracts are specific and measurable, the major obligations are broad and open-ended. Although the performance reports may identify specific services that the Partnership performed in fulfilling those general promises, these after-the-fact reports of services the Partnership decided to provide do not impose a
As the court of appeals pointed out, the contracts at issue do not tie the City's payments to the Partnership to discrete services or measurable amounts of service. Instead, the City paid the Partnership a flat fee of $196,250 per quarter, regardless of whether, or how, or how extensively the Partnership made efforts to "identify new business opportunities, secure economic incentives, and increase outreach and recruitment activities to the region's targeted key industries to strengthen Houston as a competitive place to do business." The absence of an identifiable link between the services provided and the payment due, when considered in conjunction with the lack of specificity and measurability in many of the contract's service requirements, demonstrates that the City paid the Partnership public funds to subsidize, underwrite, and support the Partnership's activities.
It is true that public funds make up only a small "part" of the Partnership's support. But when an entity, or "part, section, or portion" of an entity, receives public funds for its general support, the entity has broad discretion to use those funds as it sees fit to accomplish its goals, and the entity shares those goals with a public entity that would otherwise use the funds to accomplish those goals itself, the entity, or that "part, section, or portion" of the entity, is "supported in whole or in part by public funds." This does not mean that the public has a right to know how the Partnership spends all of its funds, but the Partnership has made a tactical decision here not to provide information about where the public funds go within the Partnership or how the public funds are spent, so that we could limit its duty to produce records under the Act to "records concerning its operations that are directly supported by governmental bodies," as the Attorney General has done for the Partnership in the past. See Tex. Att'y Gen. OR2004-4221 (emphasis added).
Finally, as noted, the 2008 services agreement included language specifying that the City's funds were "solely for services rendered under this Agreement and are not intended to support [the Partnership] in any of its activities not specifically set forth in this Agreement." But the determination of this issue must depend on the actual nature of the services and payment obligations under the contract. The 2008 contract's conclusory statements that the contract does not render the Partnership a governmental body and that the contract payments are not for general support do not make it so. Just as a governmental
I now consider whether the City's funds were intended to promote a purpose, interest, or mission that the City and the Partnership share and would each pursue even in the absence of their contractual relationship. The evidence here readily establishes that this requirement is met. Independent from any contract with the City, the Partnership exists to promote job creation, increased trade, and capital investment in the greater Houston area. As the Court agrees, even without the City's contract, the Partnership "could and would continue to promote the greater Houston economy to advance its own interests and those of its more than 2,000 non-government members." Ante at 61. The City contracted with the Partnership because the City independently shares those same interests. The City did not pay the Partnership to provide services merely to promote the City's individual objectives, but to promote objectives that the City and the Partnership share. In fact, the contracts required that the scope of the Partnership's services "support the goals, visions, and objectives outlined in the Partnership's Strategic Plan." (Emphasis added.) The interest the City and Partnership share does not arise solely out of the parties' contractual relationship — both parties independently share these objectives. The City has an inherent motive to promote its own financial interests, and promotion of the City's economic development was a primary focus of the Partnership's purpose.
Under these circumstances, I would hold that the Partnership was "supported in whole or in part by public funds" so as to fall within the definition of a "governmental body" under the Public Information Act. See TEX. GOV'T CODE § 552.003(1)(A)(xii).
Although the Court acknowledges the Act's instruction that we construe it liberally in favor of a request for information, see id. § 552.001(b), the Court chooses to adopt the most narrow construction of "supported" possible, because a broader construction would permit "public intrusion into the private affairs of non-governmental entities," ante at 62, "pry open the sensitive records of private entities," ante at 62 n.12, and subject the Partnership to "invasive disclosure requirements," ante at 67. Even if we could construe the Act according to our preferred results rather than the text of the statute (which we cannot, or at least, should not), I find the Court's concerns to be not nearly as troubling as the Court suggests.
What the Court fails to acknowledge is that the Act protects the Partnership's "sensitive records," but the Partnership elected not to seek that protection. The Act expressly excepts from disclosure all information that is "confidential by law, either constitutional, statutory, or by judicial decision." TEX. GOV'T CODE § 552.101. Even if the information is not confidential by law, the Act still excepts it from disclosure if, for example, it constitutes the Partnership's commercial or financial information
The Partnership contends that the court of appeals' decision represents a "vast overexpansion of the Public Information Act to reach private business information that the public has no inherent or legitimate right to know." In response, the Attorney General asserts that the Partnership's construction of the statute would permit governmental bodies to evade public scrutiny by contracting with private entities to carry out government business. "If governmental bodies can shield information from public scrutiny by outsourcing their business to private companies," the Attorney General contends, "the purpose of the [Act] is frustrated." In short, each party warns that the other's proposed construction will have dire consequences, either destroying private entities' ability to keep their private information private or undermining the people's right to know what their government is doing. The Partnership asserts, "The stakes are tremendous."
I am not convinced that the effect of our determination would or must be as drastic as either party, or the Court, suggests. Although the Court concludes that the Partnership is not a governmental body, the Act still empowers the public to require the City to disclose all "information that is written, produced, collected, assembled, or maintained" by or for the City "under a law or ordinance or in connection with the transaction of official business." TEX. GOV'T CODE § 552.002(a)(1) (defining "public information"). This extends to not only the City's service agreements with the Partnership and all reports and other information the Partnership provided to the City under those contracts, but also all information the Partnership collects, assembles, or maintains for the City "in connection with the transaction of official business," if the City "owns," "has a right of access to," or "spends or contributes public money for the purpose of writing, producing, collecting, assembling, or maintaining the information." Id. § 552.002(a). Even if the requested information is not in the City's actual possession, the Act still provides broad access to the Partnership's information related to "the transaction of official business." Id.
Conversely, if the Court concluded, as I do, that the Partnership is a governmental body, the Partnership could still protect its confidential and commercially sensitive
In any event, regardless of whether the effects will be as drastic as the Court, the Partnership, or the Attorney General suggest, our job is to interpret and apply the statute as written, not to rewrite it to achieve the policy outcomes they or we may prefer. See In re Tex. Dep't of Family & Protective Servs., 210 S.W.3d 609, 614 (Tex.2006) ("It is not the Court's task to choose between competing policies addressed by legislative drafting. We apply the mandates in the statute as written.") (citation omitted).
I would hold that the Greater Houston Partnership was supported in whole or in part by public funds and would thus agree with the Attorney General, the trial court, and the court of appeals that the Partnership is a governmental body for purposes of Jenkins's public information requests. The Partnership has not argued that only a particular "part, section, or portion" of the Partnership received public funds, or that any of the information at issue falls within one of the Act's exceptions to required disclosure. I would therefore affirm the court of appeals' judgment requiring the Partnership to disclose its 2007 and 2008 check registers pursuant to the Public Information Act.
Jackson v. State Office of Admin. Hearings, 351 S.W.3d 290, 293 (Tex.2011) (citations omitted).