..., .. \: , .

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. te~c~~rReHl'ement System of Texas

1 OOO-R~r.Street Austin.Texas 78701~2698

EXECUTIVE DIRECTOR Ron~le G. Jung

. 8~22~778

(512) 542-6400·

www.bs.state.tx.us

Rebecca Merrill, Assistant General Counsel (512) 542-6840

(512) 542-6529 Fax ;

PARTS OF mrs LEITER THAT REVEAL INFORMATION .F:OR WHICH AN

. . EXCEPTION TO DISCLOSURE IS SOUGHT HAVE BEEN

REDAcTED ~ mE· COpy TO REQUESTOR

September 8, 2010

. Amanda Crawford

Office of the Attorney General . Open Records Division

209 West 14th Street; 6th Floor

HANDDELNERY

·Aus;t:iATX 78701

. Re:: WRITI'EN COMMENTS & SUBMISSION OF RESPONSIVE INFOR}..fA.TIO~ Request for Determination.- OAG File ID # 399116 ..

.. Request for Information from Elena Marks . .

Dear Ms. Crawford:

. Pursuant to Section 552.301(e) of the Texas Public Information Act (the Act), the Teacher Retirement System of Texas (TRS or the system) is submitting to your office, on . the 15th 'business day .after the date of receiving the operative request in the abovereferenced file, responsive information and written comments in support of withholding the 'submitted information,· as labeled. TRS requested a decision from your office

··pursuant to subsections (a) and (d) of Section 552.301 of the Act on the 10th business day . after receiving the operative request.

. .

I. PROCEDURAL BA.CKGROUND

. ~ received the request from Elena Marks (the requestor) via e-mail message

. after the close of business on August 13, 2010. The request -is deemed to have been received by TRS on August 16. TRS observed LBJ's Birthday on Friday, August 27, ., 2010, by only staffing system offices with a skeleton crew. fu addition, TR.S offices were . closed on Monday, September 6, 2010 in observance of. Labor Day. Accordingly, the

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. 10th business . day after-receiving the request was August 13, 2010. The 15th business

, . -.' day-after receiving the r~uest is-today, September 8; 2010. By letter datedAugust 31.,· :

. '.. ,-2010 (see Attachment 1), 1RS provided.the requestor with the written statementthat .

. IRS has asked for a determination from your office and that some of the responsive' . information may be confidential or otherwise excepted from disclosure under theAct, .

.D.' . INFORMATION PREVIOUSLY D.EJ:ERMINED EXC:EPTED AND . . INFO~TION -MADE CONFIDENTIAL BY LAW_

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Ms. Marks has asked for "documents passing between the staff and board" for the responsive period -of December '31;-""2000:to'August'16~ 2010 (S.ee Attachment 2). TR.S 'has identified that' some responsive information has· already been- determined by your office to be excepted .from disclosure- -' Bas'OO on ·-prior rulings in0R2007-04194, 0R2007.;1"6107; 0R2Q08-16953, 0R2008-0605.4, OR-2008-08178 1RS asserts a Type 1

.. previous determination' that allows the . system to continue to withhold the specific -information subject to those ruling in connection with the instant request for the same information. The facts, law, and circumstance under. which those rulings-were.issued

have not changed. . .

:...l-__..;.._..........:. .......... ;.....,.,...:.........;...,._..~-AJddJ;tiOlla1J~:J.:.K~i\!llI.4edac;t.ather...rt~:msi¥e.Jnjt:"orl:natlO1JL;wt~ ilioutsu:bm;tt;ng it

. . "and·

552.117 of the Government C-ode, as amended by Senate Bill '1068· (81 st Legislature, '2009)~ relating to . the confidentiality of ce~ a4~s~es, telephone . numbers, social -security numbers, andpersonal fsmilyinformation of TRS -trustees' and employees;

Section 5.52.136 of the Government. Code, 'relating to the confidentiality of-credit card,

. debit card, charge card, and 'access device .numbers,. pursuant to -the. previous determination. in Open Records Decision No. 684 (2009); Section 5~2.13i of- the Government Code, relating to the' confidentiality of certain email addresses, pursuant to Open Records Decision No. 684; and Section 825.507 of the Government Code, relating

to theconfidentiality of rns participant records. .' .

:' .... ';" . Finally; . some responsive information, including emails; cr~ted before 20~3 may be-present on magnetic-backup tapes maintained only for disaster recovery or business continuity purposes. The backup tapes do not.storethe location of theinformation ina comparable "file allocation' table" (FAT) like that in which it was stored and retrievable on' the: network server. Consequently-the locations ofthefiles have been effectively deleted from the FAT·system. To restore the information, TRS would have to. Ioad the' backup tapes and restore the data contained on each tape. .Accordingly, .some of the pre.2003 information was no longer being "maintained" by TR,S at the time of the Request

" .,....... .' L. L .,. •

I TRs's fil~-stam~ed August 31, 2010 (lO-day) letter to your' office requesting a decision and enclosing A~cpments A and B is included with this letter as Attachment 1. TRS's August 31 letter to you: included 'copies of the writtenpublic information request (as Attachment A), and the 10-day letter to the requestor

(asAttachment B). '. .

OfficeoTth-e-'"Att01'1l~)t§eneral' .' . Open Reco~rdSn1VisiOn

. Page 3·

and Is not public information subjectto .4isci~~ur~pn4e~ th~. Act. 2 Thus, the Act does not ... require TRS to release any information that is stored remotely on backup tapes in .tllls

instance.. . .

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ID. TABLE-OF SUBMITTED INFORMATION AND APPLlCABLE

EXCEPTIONS TO DISCLOSURE . . .

. .• . ;"~'.~'.;::~~';' .':~:.<.~.,., ~.: .. ~:- . ',~ .

'. '. .

. The information 'submitted to your office .:WI.:a ~~ci~~qn.p~ .p:U~liS. disclosure' (the' submitted information) has been electronicaUy'?"Bates~stairiped 'as 'B'net E>drlbit Items A~ N:. All of the submitted information consists. of ce$.iD..~p~PD:tc~9:$?~.;between TRS . Board .of Trustees and TRS' staff .. members, including materials 'sent to the Board of·

. Trustees or committees of the Bo3!(f6f!·rtii5t~s?~.··TRs:~.hibcl~:.~ of the Batesstamped pages to show what specific .information ,TRS seeks to wi~ia .. TRS asserts . . exceptions for all the submitted information. in some instances 0:( extended email chains, . . . TR.8 has included pages that contain no excepted infomiation but 'Provi4e conteXt . for related pages. that do. The following table summarizes the .submitted information and

applicable exc~ptions: . . .' .

Bates-

-.:., ..

D.2

Numberfs)

. . Deseription be Submitted Information

Applicab~e. Exceptions

. : A.I .

Email Dated. September 14~ 2005

.: .privacy

. . .

§ 552.101 and common-law

A.2 .

. B.t

Summary of Litigation Report

• ~:. .:~ ',. "!," _. •• ". ::. ':.~:::., ~':,';';; •• ~, .:~

§ 552.103 and § 552.107

"'\ : :" " .. . :.' .. ,~1 , '. . '. .' '_. <

B.2

B.3

". -.: :. . -r .~ ", ~~.. : •.•. .' .:. ~ .~~..... +

.' ;~; :.' ...... :. :'~e "§".552,.lOJ and·l552.l07

Email Dated May 21;2009

§ 552 .. 103 and § 552.1 11

·c

June '11, 2009 Memorandum Regarding Board

Selection of ActQary' . .

§ 552.104. and § 552.107

D.I

Outline ':

Flowchart

. § 552:107

§ 552.107

2' . ~ . .~:'>,:; .. ':"'_-:.- .;:, ',,- .. :. '.': .. :~ .

See Econ. Opportunities Dev. Corp. V.' Bustamante,"S62 S.W.2d 266 (Tex. Civ. App.-Sap. Antonio 1978,

writ dism'd); Open Records Decision Nos. 605 at 2 (1992),S~5i\~tJ(i990),:452,at 3 (1986), 36i at 2

(1983). : "" .. " ., .. '.. ',. '.'

3 The part of 'th~ Request TRS subnrlts fot:youi:conSidJration,wai' clarified M(I narrowed as follows: all non-routine communications, Whether: in native. paper or electronic fomia~ between.former and current TRSBoard of Trustees and former and current TRS staff members, excluding any duplicates to multiple

recipients and/or duplicate email strings, between December 31,2000 and August 16,2010." .

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,. ···.<:01fice-ofthe AttorneyGenera! . . Open Records Dlvision .

Page 4

Bates:' . Description of Submitted In1orination

shimp

" Numbet(s)

Applicable Exce~tions

D.3 TB.S Legal S~rvices Memo

D.4

§ 552.107

§ 552.107 and § 552.116

§ 552.107 and § 552.116

.§ 552.107

§ 552.107

§ 552.107 and-§ 552.101

D.S

·D.6

D.7

D.S

Memorandum ani attached emails

§ 552.107

EA' TRS Legal Services Memorandum Dated November' §. ~52.1 07 12,2008

. F Email Dated May 1, 2020 § 55.2.107

G EmailDatedNovember17.2008§552.111

D.9

. Letter DatedFebruary 11,2010

§ 552.107 arid Texas Rule of Evidence 503(b)'

§ 552.lil

§ 552.107

§ 552.107

§ 552.107

H.2

Email Dated June 11,2010·

a1 Email Dated i\pril28. 2010 . § 552_111 and § 552_143(b)

§ 552.111 and § 552.i43(b),"

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D.10

Memorandum Dated September 22. 2009

1.1

1.2

L3

§ § 552.116 and 552.107

.§ 552_116 .

§ 2054.077 and§ 552.139

Officeof the Attorney General Open Records Division , PageS

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BatesStamp Number(s)

Description of Submitted Informatidn

Applicable Exceptions

',: ~ :- .•. --_ ...

.....

"

', .. _"".

---~-,,-,.,~

'.' __ "~'-l_'_""_

.1.1

Email Dated December 11.20~7

§ 552.143(b)

•• ~. <'

J.2

. '

. J.2.1

Email' Dated DeCemb~ 19; 20'07 .

. '_ - .. ' .

§ 552.143(b)

J.3

J.4

Letter Dated December t 8, 2007 . ,

J.5

Eniau Dated Novemb~·25, 200S. .'

. § 551,14?(b)' .' :

" ..

'Enlau DatedDecember 8.2008

.~: 552.143(bY. - : ...

Email Dated-January 28. 2009

J.6 Email Dated May 26. 2009 .

K.l December· 14. 2006" ··Al\.CBmeeting 'book: § 552.143(b) '.

Confidential pre-investment .and post~investm~nUd.ue ",'" .

. .diligenceinformation, including deal logs; '~b~ijt'm' ';§ -552:1U" , .;' " .~

investments in private investment funds prepared by '§55~'iM~ .'< .:

TRS's investment staff .. oradvisprs:.for· /IRS1

maintained by TRS; and not ~~bli~lYteleased. r:',~;, >. " .. '. ,;.'"

EDiail Dated June 10; 2010

§ 552.143 (b)

§ 552:143(b}and § 552.110

·§552.~43(b) and'§ 552.110

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Office of the Attomey·C1ei1erat~'-·~

Open Records Division . .

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. Bates- Description ofthe Submitted Information Applicable Excep.~~ons_ ...

Stamped

Numberts)

N.2

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K.2 December 14, 2006 AACB meetfug book: § 552.l43(b)

.Confidential pre-investment due diligenceinformation § 5.52.111 about prospective TRS investments .in' ·private

investment funds prepared by . 'fRs's investment .§ 552.~04 advisors for" TRS; maintained by TRS; and not

publicly released, This exhibit contains duediligence § "552.110

. booklets from the following 1RS investment advisors,

who may. consider them also to involve their proprietary interests:

K.3

§ 552.143(b).

. ~ {.: .. ;~. . '_

,.,

• '+"

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October 30, 2008PMC . meetkfbook:···Confidenti'ai· pre-investment and post-investment due diligen:~,e information about TRS investments in private investment funds prepared by TRS's investment staff or advisors for TRS, maintained by TRS. and not publicly released.

N.1

.;- .....

§ 552.lW·'

M

. .

April 22, 2010 Disclosures and Sup,plemental Information Presented . to !MC: Confidential pre~. investment arid post-investment . due . diligence information, including deal logs, about· TRS .investments in private investment funds: prepared by TRS's investment staff or advisors for TRS, maintained by TRS, and not publicly released. . .

§ 552.143(b) § 552.110 .

Internal Investments Committee MeetingMinutes

§ 552.l43(b)

Internal Investments Transparency Report

§ 552J43(b)

. Office.oft1ieAttome~~efi!l.

Open Records Divisioii .

Page 7---·

··'·.'.;\.tfhe·.i6UoWmg:d.is,biSSiOD>~~ . the· r~pr~sentative:sample submitted for . ·your decision and explains why-it is"l~x~epted.ftcim cllSelpSuteliil,deI the A~t.The· . documents themselves are separated into, Exhibits and the pages within each exhibit are bates stamped.

-IV.- ,.DISCUSSION

:A.E~ail CO~Dl.unications Dated September 14, 2005 andJanuaryB, ~009.

1. Description ' -

. .

EXhibit A, consisting of documents Bates-stamped' documents EXhibit A.I and Exhibit A.2, are representative .samples of emailsfrom TRS' Board members to TRS staff.

The emails . " which personal information regar~g'_ and such. information is excepted from OlSlclmmre .. under .... Government .. 552,101 . 'and, common-law privacy .

• Additl9bally"ExhibitA.2, 'in - whichcertaii; Board members . provide, direction to - the ~ Executive Director-regardingan upcoming Board meeting,' represents -deliberative due

.. 'process and-should- be excepted. from disclosure . under. Government Code Bection

·552.11 . .. .

. ExCeptions Claim~d: . Government Code §§ 552.1i)1 and common-lawprivacy and . 552.111

'·2.

.TRSComments Regarding Exceptions ·~o Disclosure under . Government Code §~52.101 and Common Law Privacy •.

• '. • ~'.' • . , • • + >. :. • • .' • . .. '"

'. .: Government .Code .. Section552J 01 encompasses the doctrine-of common-law privacy, .which protects information - that (1). contains highly intimate' or embarrassing facts the publication.ofwhich would be highly objectionable toareasonableperson and (2) is not-of legitimate concern to the public, Indus. Found. v. Tex. Indus. Accident sa;

. .. ..... 6.85 (Tex~.1976). Exhlbit A.I contains information regarding_

. The typesof information considered intimate and embarrassing. by the Texas Supreme Court in. Industrial Foundation included information relating tosexual . assault, pregnancy, mental .. or .physical abuse in the workplace, illegitimate children,

. psychiatric treatment of mental disorders, attempted suicideand injuries to sexual organs. Id. at 683._ Your office has fOUAd that some kinds of medical information or Information . indicating specific illnesses are excepted from required public disclosure

under common-law. privacy. Open Records Decision 470 (1987). The labeled .

. '-J.n...,.....v .. ·~ A'l is. intimate as containing information about

therefore, the information is of no . disclosure. ras asserts that Exhibit

A2 contains .1ht:should .be: excepted from disclosure

u.i:ide~Section5 . .". .' · .. <In Open.Records . .DeoisionNos. 600

.(1 992).·'· and. 545.'. (i99.0)~· your office~xcepted-''frbrn 4isclQsure·p~rsoha1. financial . information not related to 'the financial transaction between ·an ··inc1.lvidual. and a

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,:'''lji1tcfoI1h~Attomey General " . Open Records Division

Page 8,

'-'o,,~.-.~.::~,~.:.:~'-.

,,, .. ~:":= .. C ••• _'

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The labeled information in Exhibit A.2 is

. If your officedetermiIi.es that the information in Exhibits A.I and A.2 do.not meet, the test established in Indus. Found.;v, Tex: Indus. Acciden: Bd, then, alternatively, IRS, asserts that the privacy interests of the individuals under the circumstancea'in Exhibits AJ atid'A2outw.etghs<.any puBlic: interest in; the matter. .Open Records Decision :455

, (1987). Accordingly, the system must withhold this information under' Government Code Section 552.101 in conjunction with.common-lawprivacy.

':, 3~ ,rRS'Co'~'en:ts"E.egard~g.E~ceptjQ~:toDisclosure~d~r

!:," ,>".: ",',:",: ' Govemm:~nt C,!,de § 552.lH.,;,. ,:.;, , , ' ',' .. '

, ..... ;:~. . .: . . . ~ . . ~~~ .. ~j;:-~; I.· .. -: ::t~~~~.·:·(:.J.' ~~ ~:;i.~.·~T::~:':~"t~~)~···":·< ",: .~t·· ::'~ ." > ~:' -. ~' .. " ' .Government.Code Section 55Z.111 exceptS jmm public' di$c19sme'''ati'il1teragencytlr

. . . . . }. ." ".'

intraagency . memorandum or Jetter that would not be available by law .to , a P.aw 'in

. Iitigationwith.the agency." Se.cti~n, ~5ijl i encoinp~~~s,' the deliberative process

. privilege. 'See'9pen Records 'p~cisjon: :NO', '6f5:'at 7,(199$):, -rpe' purpose of this ......,....--_......___,.~~!¥N':n'tioo1:s to'Proteet adviee, ,opiniQn;"and.recominendati0R-m~i8iC;lnal process' ~

, Therefore, the informationis of no legitimate public .interest and may be. excepted foomdiseiosure.

o encourage open an. SCUSSlon me, e era ve process. ee

San Antonio; 63'0: S:W.2d·391,' 394 (rek; App.~:ari:'Antonio 1982,,:no: ,Writ)~;':Open

Records Decision No. 538 at 1~2 (1990). '

ill OpenRecords Decision' No," 61'S·CI993),'-YoUr 'Office re-examined the statutory :' predecessor to section - 552. m- iii 'light of the; decision in': Texas Department, of Public Saf¢ty v. Gilbreath, 842 S.W~2d 408 (Tex. App.-Austin 1992, no writ). You determined

. that section ,552.111 . excepts from ·disclosUre 'internal communications. that consist of advice, recommendations, 'attd: opinions that 'reflect -the ·poIicymaking 'processes 'Of the . ·g~vdrr;iDientaJ.b()dY. See Open:;Reeords'Decisioil'Nb(615 at 5 .. ' Although your office has 4~rP1.iD~d that 'a governmental bcdy'spolicymaking functions do not encompassroutine ititefuaf~"ad:miilistrative or personnel' matters,' 'a:, governmental' body's ,polj¢ym~g functionsdo include administrative arid' personnel matters of broad' ;scO:pe':tha{:~%fth.(}, . govemmental 'body's policy-mission. See"Open Records Decision N0. 631' at 3::,(1995);, '

, Further.rsection 552.111 protects factual information that-is so inextricably intertwined with' policytnaking material involving, advice, opinion" or· recommendation so as .to. make severance of the factual data impractical, Set! 'Open Records Decision No. 313 at 3

(1982):" '. ' ,',' , "

.. :

, 'TRSaSserts, that Exhibit A2 constitutes deliberative -¥"''''~<" .. the labeled infOri:n~tion 'is" e'J {cePteClt.,~lttOIn, """"",~,v","I.L' GovernmentCode. In the B'} m1.O:Lt.

- n,.·~7-:::_~·::9ffige·oftheAttomey General

Op.en Records Division .

Page 9

matters of broad scope that fall within the policymaking functions of the rss Board. Under TRs Bylaw 1 ;8, the' Boardis 'responsible for adopting and periodically reviewing policies (or the' operationofthe .. system, 'monitoringand evaluating the' effectiveness of

. the system, and selecting fiduciarycounsel. 'Sections.lBtc), 0), and (r), Bylaws of the Board of- Trustees 'of 11;1e Teacher Retirement System as amended. February 12, 2009. .Moreover, Board Bylaw 2.3.1 provides in part, "The' agenda for each Board meeting shall be set by the chairman of the Board and when appropriate other Board members in consultation with the executive director .: "· Thus, ExhlbitA.2 is a representative sample of email communicetion in whichbroad.issues thatfall within the Bo'ard's polioymaking responsibility are . discussed, andin which IRS Board' members raise policy items they would like' for' inclusion on upcoming Boardagendas.' Given that the matters addressed are broad' in scope, predecisional, and -, : deliberative, TR.S asserts that the labeled inf~rmationi~ excepted from disclosure under GovemmentCode Section 552.111

• c ' •••••

. .

. . B~ Litiga~on SUmmary Report from June '2010 and Emails' Dated May 21, 2009

and ~~e.3, 2009. .

1; ". Descrlption ". .

. Exbibiti·consi~grifBates-Stamped doc~e~ts ~~bit s.i, ·E~bit.B.2,·and .

. . EX1ii6It~B.3are·Board.AAenaa: ma.tellats and elIl.ails ft9Ql ~~_;. .. ·sul.ff> .:.Th~. documents arerepreseatativeof communications regarding anticipatoo or

. '. pending .litigationandare excepted-from disclosure. under GovernmentCode Section

• "'C' 552{1l1;i''':'M~t.¢over, the items are communications from 1RSlegal staffto.TRS.Board

··-.rliem~~}::::@\i~$..:~svci;vai~6:::'S,~e· .. ~.~tepr~~~Q.taJiye.:·~Pl~$·::of.;1ttortieY)ell,Ylli.1?r.iw~g~:d

•• ' :,~.,:;_ •• ;. ,"" ••• ~_., •• ,._ , •• - ••..• '1; , •• :~ •• ' +' .7 •• ,.l "'~"'" ,...:/. ...

communication . that is' ~excyp,tea:;i frp'ri1-.: ':QjS',*o§rire': 'iijidef ~q9v¢inm¢D.t ;.·c~a~:: ~~~».

552.107. . " .. , . . "'.. .. ...... 'w ... _', :: .... '_...... '. ':':"': -: :'.. . ~ . ..: :,.. . ." :".:' '.

. Exceptions'Claimed: 'Government Cod~·§.§ 552.103 and 552.107

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2. TRS Comments Regarding Exc{:ptio'nS to Disclosure under Government Code § 552.103.

section 552.103 of the. Government Code excepts information from disclosure.if the JD;f9rination'relates to pending or reasonably anticipated litigation in which the state is

~~91ye,d. Theex.cep#p;I!:qri4er~.~yti6n5S2.103 provides asfollows: .

. ,<> ",_,i~::- <.: .<~;.::':,.;',,;,;'.'~\~'.:~.;\:~.':::~ ":,:~,,,~.< .. ::. '.i.:·; :'.':'<;:;/'> :: .. : '.' 0', .. < .. :: .. : ': ., .: ..':" .

·'·.;f':~ ·::{a).\Q<tripatiM:.:,ls·;·exe.ePted.:fr9'm.···_tli~:·:reqWiem~ri.tg,:·,of· s..ectlqu::,·552,Q21. ifft 'Is

-; .. ·:,.:::.~:tM;~~~~·~~~a~~ to jl~g~~o~·of:~.dVil o~,~~~; ~tulij~'Wiliqiithe 'state or ..

';a .. p~?tie31.subdiYi~.i?n·$tp.~~ar·~~~·~·:P~;9~:.,tQ·:~hi:9l.(~LOW.f.#t..!.~~"~tx}ph)~ee,of

the state or a, political subdivision, asa cons~uence.~of,t1ie,,:p~rson's 'office ; or

employmentis or maybeaparty. .

(b) For purposes of this sectio~, the stat~ or political s~bdivision is considered to be a' party to litigation. ·of a crimitl'al ;na.tpIe until the applicable statute of limitations has ~xpu.ed or uiitii the defendant has. exhausted all appellate and post

conviction remedies in state and federal court. .

Office of the Attorney General>~ __ :~:_~:_~~ __ .

· Open Records Division ------

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(c) Information !ela~g to.Iitigation ~voh~ing-~g~v~rnm~nW body'or an officer or employee. of a, governmental body is excepted .from disclosure under ", -. _.. .Subsection (a) only if the litigation Ispending or reasonably anticipated on the , date that the requestorapplies to the officer fo~ public information for: access to' or

. _ duplication of the information, ,...

-r~-------~~---------~----~------~~~--~---~~----------~

+--I-------~-......:.f.;w..;~~~truI'~1P-'·i-ni-~tibmitted 'in. ExhibitDJ ··relate~nd.mg~

litigation. The report is a representative sample 'of the Summary of Litigation report, that .ispresented to-.'!ile'·TRS Boardof Trustees at everyboardmeetingand is included in the

- - . .. column -. each deno ~les

. . A -gpye~en~ body has the burden of providing relevant facts . and 'docume~ts'to

show that the section 5.52.1Q3(a) exception i$ applicable in a particular situation. The test

· for. meeting. this burden is -a showing. that - (1) . litigation was 'pending QI' reasonably 'anticipated·on the date that the governmental body received therequest forintonnation, . and (2) the information.at issue is related to that litigation: See '(jniv.·ojTex" I4w Sch; v· Tex ... Lega{Found.:95~ S:W'4~ 479, 481 (Tex. App,-. AuS#n -19~7, no pei.); Hear:4 v. HoustonPost Co., ,684 S.W.2d 210,,212 (Tex. App.-HoustOn [Ist Dist.] 1984. writ ref'd 'il.r.e.);Open Records Decision. No.· 551 atA .. (1990). A governmentalbody must .meet both prongs of this test for informationto be exceptedunder section 552.l03(a): See

· Open Records Decision No. 551. hi that decision, your office determined that the governmental body need only establish the relatedness of the information to the subject . ' matter of the. pending or anticipated litigation. Open Records Decision No. 551. at 5.

rvioreover given that this . individual report is from June 8, 10, 1RS_asserts that all prior and subsequent Summary of Litigation reports for tlre.-responsive.. period that 'contain jpformation' regarding litigation that was pending or reasonably anticipated on the date TRS received .

. the open records request is excepted frpm disclosure. -.' .. -, . . .

. ". . .,

Additionally, TRS asserts. that the entirety of th~ emails ~ E~W.bits B.2 and B.3 ate representative ofemail communication regarding pending Iitigation that falls within . the· responsive ·period and, waspending on ,the .date. th~. .request was received.

· submitted information relates to . in' the .

the extent . messages at issue contain information relating -. · to . . issues in the pending suit, TRS asserts that-your office may conclude that the information is excepted from disclosure ..

3. TRS Comments RegardingExeeptions to Disclosure and under

. Government Code §-5S2.107. .. .

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-. . . ... - - . subdivision is prohibit&ffrom. diSclosihg-b~·¢ause:'·ola;-dtl.t?:W. th{rclie~.t ~dei.the

-Texas Rules' of Evidence or-the Texas Disciplinary Rules of.lit6fessi6nhl

Conduct; , . . . .

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._.. Whenasserting the attorney-client privilege, a' goverrimental body has the burden "ofprovidingthe necessary facts to demonstrate the elements of the privilege' in order to

withholdtheinformation at issue. Open Records Decision No .. 676 at-6-7 (2Q02) .. Your .. office has interpreted Section 552.107 to protect the same information as .protected under'

· Texas Rule 6f:SVidence 503. 'Id.e: 4 .. First, a governmental body must demonstrate that

· the information constitutes or documents a -communication. Second, .the attorney-client . . privilege requires the communication to: have been made "for the purpose of facilitating

the rendition of professional legal services" to the' client governmental body.' Tex. R.:

Evid. 503(b )(1). Third, the privilege applies only to communications between 0,1" .among .clients..: client-representatives, . lawyers, and - lawyer representatives .. , Tex. R. Evid. . , .-s03(b)(1)(Ak(B), (C),(D),{E)~, 'Lastly, 'the attorney-client-privilege applies only to a

-~"'-""'_"_"'"'---. c:i. ,oo~~tialeemm~tiOn; ~id. 503 (b)(U;..meamng .it \vas I~nqt inte~d.to b,e.dlsclose~

'to .fhffih-persons.· other- ·.thantliose . to Whom -msclQsur~' is made in ftmhei5'lfcm<;:!im'c"l'e'-on1ff-=thfhpot:=======~~~ ·,·tendition of.professional legalservices.to the client or those rcilsonablY·neceSs.~for the _

· _transmission of the communication," Id.'-S03(a)(5). "

TRS asserts' that EXhibitS n.i ·tbrough B.3 . ~eexcepted attorney-client communications, Exhibit B.l meets the first element of the attorney-client privilege test . in that it was included in the TRs Board nle¢tiD.g agenda materialsforthe June 8, 2010, 'meeting.' Thus, it was communicated to the ras Boardvia the'meefug materials, and is . ; -representative of'how TRS staff communicates the Litigation Summary to the TRs. Board .at every' agendameeting; . TRS also asserts . that Exlllbits B.2 and B.3 - both meet the first

- elementofthe attorney-client 'privilege test because, as electronic mail messages, they are, necessarily, communications. Exhibits It 1 through B.3 meet the second element of the test . in ·that the' Litigation . Summary Report and . the email messages' were '

communicated forthe '.. '._ . . . services; .Exhibit ·B.l

.advises . the Board of . Thus,

through the report,

consrsnnz of Exhibits

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Therefore, a.I. through B3 meet-the element ofthe attorney-:

client privilege test. Finally, E~bits B.l through BJ are confidential communications,

··Exhibit B.1, the Summary of Litigation Report, was and is kept confidential. It is only disclosed to client representatives and TRS legal staff as necessary for completion arid transmission of the report. :t;:xhibits,B.2 and:~.3 are also confidential communications, . . They have ·~otbeen disclosed outside of those who are parties to .~~: email and TRS legal

. staff as necessary to render 'professional· legal services. ·'Therefore, Exhibits Bi l. through B.3 meet the elements for-exception as attorney-Client privileged communication.

',. C~'. June, 11; ·2009 Memorandum Regarding Board Selection of Act~~ry.

1. Description

· . Bates-stamped document Exhibit C is a representative sample of 1RS's· internal analysis of outsideproviders of professionel services, such as. actuaries. The analysis is

responsive t6the·mst8n~'reguestmth'at)t:~.presented to me TRS Boar~ af.tlie,;rune

2009 meeting, and it is representative 'of the type of analysis conducted for providers of : 'outside service's .. TRS: asserts that the .analysis is excepted, from disclosure under Government Code Sections 552.104 and 552.1 11.

. '

Exceptions Claime4:'Governine~~ Code § § 552.104 and 552.111

2... ' "rRs Comments.Regarding Exceptions·,to Dis~lo~1ire under

, Gove~ment Code.§ 552~104.· . ., .

Exhibit Cis a,tepresep.tative sample of compe~ti~~.infOniiatioil~compi1ed by TRs when selecting an actuary and pension consulting service. TRS acknowledges that a completed contract for such services may be subject to disclosure under Government .Code Section 552,022, but TRS,has not jdentified any contracts that areresponsive to the instant request. .. Rather, TRS has identifiedcompetitive information, in Exhibit C, that is

, responsj~e:.' to .~e. ~~. r~que~t.., rRS '~J~ ]~x1;Ub~t 's: is.; .~~c~P.ted froin~sclosute

under Government Code. Section 552.104:: Section '552.104 excepts'from disclosure,

· ~~iI;i:foIIP,.~(J:Q.th~t;; J~J~It(~,ed, would 'give· ·adv~~e to a competitor or bidder." Section

· ,$·$.1: W4 pro.tects .. tRS' s. :iiiterests· in,':cbmpeuti,ve' ·pidding.~,~itl$ti9~.. See, Open .Records

· Decisioniq6: 59i· (i"iJ91);' S~ctiOl1 552.10,4· is· ge~~niUy ·,'iliv6~~d to.excep; i#"ormation submitted to a governmental body as pari of'~ bld6f similar 'proposal. 'See, e.g., Open Records Decision No. 463 (1987) .. Government . Code Section 552.104(b) specifically provides that Govemment Code Section 5~2:022 clq.es' not 'apply to any of the submitted materials that could" be construed to fall wi.thln: a c'ht'egory of information under section

:.552.Q2?-. Moreover, your office has indicated thai this exception applies to the ongoing .. : ~tnPetjtiv~ :intereStS ofa· g6verriiiientaf body mvolvedin. coIDiner$i~,'tra;O.sacti;ons. Open . Re·cetdSp~Qis,ion;;~O"5~3 (1991); . In Op~p:"ItecQtdS Pecis19Il NQ'~ 5,9t':tw9.;;:¢teria were

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established. that a governmentalbody m~t meet In 'order to invoke the exception, First, an agency must demonstrate that it has specific marketplace interests. Second, the agencymust demonstrate actual or potential harm to its interests in. a particular competitive situation ..

a. Specific Marketplace Interests.

1RS.hasmarketplace interests withregard to the information at issue because . TRS regularly' seeks to engage the firm best suited.to serve as actuary and pension

. " consultants, TR8:there{orelas.an ongoing.competitiveinterest in maintaining its ability to attractthe best-qualified actuarialfirmsand actuaries and consultants.nationwide. Additionally, 'TRS' has' an-interest in 'being able to' obtain and develop complete and . detailed information about prospectiveactuarial and pension consulting firms. to enhance its analysis of their proposals.

b. Actual or.Potential Harm to 1R.S Interests.

. . . . .

. As .alreadystatedabove, TRShas'a specific marketplace interest in' engaging the

best firms toprovide.outside.services.at them0stcom~titive prices .. .Exhibit Cptovides

·to obtain the best price foritsmembers when retaining outside services.. .

Thus, . based on the foregoing, TRS asserts that the iDformatio~ in Exhibit C is excepted fromdisclosure under Government Code Section 552.104 .

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3. '. TRS Comments Regarding.Exceptions to Disclosureunder '.

Government Code § 552.111. .

TRS asserts', that Exhibit. C . meets test' fOJ:" excepted memorandum and d~liberative .

policymaking as discussed above under Brief Section JV(A)(3). As laid out in Brief • .

Section IV(A)(3), your office determined in Open Records Decision No .. 615. that 'Government Code Section '552.111 excepts from disclosure. internal communications that' consist .of advice, recommendations, and: opinions that reflect the policymaking processes

of the governmental body. It is within the TRS Board's' broad scope of policymaking to' consider and select a system' actuary, and TRS Bylaw L8( 0) specifically charges the Board with evaluating (emphasis' added) and selecting an ·actuary. . Sections 1.8(0), Bylaws of the Board of Trustees of the Teacher Retirement System-as amended February

12, 2009. Therefore, TRS asserts that the type of analysis. found in Exhibit C is representative of the type of predecisional and deliberative evaluation conducted by-the Board for each of the outside services selected by the Board in accordance with Bylaw Section 1.8. Thus, TRS submits that the representative sample in Exhibit C is excepted

from disclosure under Government Code 'Section 552.111.

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D. February 23-25,. 2010 Board Agenda Materials fer-Item 20(b) and Supplemental Letters.

1. ' Description

Exhibit D" which consists of Bates-stamped Exhibits 0.1 through 0.12, contains two distinct parts. Part one, Exhibits D.l through D.IO, was presented as a package to the Board for review and discussion in' closed session as Agenda Item 20(b) on the Board's February :23.;25, 2010 agenda (See Attachment 3). Thus, IRS asserts that ExhibitsD.1 .through Dol 0, as presented to the Board in theBoard agenda meeting books,

-constitute ~orney-client privileged, communication and _ are excepted from disclosure, Moreover,' TRS'asserts that Exhibits D.4 and D.5 are-excepted fromdisclosure under Government Code552.116.,ExhibitD$ is excepted from disclosure under Government Code Section 552.101, and D.IO is excepted from disclosure under Texas Rule of Evidence 503(b). Part two, Bates-stamped Exhibits D.11- and D.12, are supplemental letters that provide background information and context for, the Board agenda materials but were not presented as part of the February 2010' Board meeting. TRS asserts that Exhibit D.H is excepted from disclosureunder Government Code Section 552.101 and Exhibit D .12, is excepted from disclosure under Government Code Section 5 52.1 I 1.

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2. 'TRS Comments Regarding Exceptions to Disclosure under Govern,ment '

Code§ 552.107.

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At ,the, outset, 1RS notes that several documents in BriefExhibit Items D.1 through D.lO are responsive to the operative request only because they were corresponded to the Board, in the meeting agenda materials for the' sole purpose of renderinglegal advice to the Board, Absent their inclusion in the Board materials, many of the documents in Exhibits D.l through 0.10 would not be considered responsive to the

, operative request. Given that the items were communicated to the Board, as, a whole, solely "for the purpose of rendering legal advice, ,TRS asserts the atto~nt communication privilege attaches to the entirety of Exhibits 0.1 through D. ffi. ,

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Brief Exhibit Items D.l through D.1O .meet test for attorney-client privilege laid

. out above under Brief Section IV(B)(3). First, the documents were communicated to the TRS Board of Trustees by way of the board, materials. Board meeting agenda materials are a primary way in which the ras staffcommunicates with the TRS Board regarding matters' for Board consideration, The Items were provided to the TRS Board - in the February 20 10 board agenda book as documents that formed the basis for a discussion in which the board received legal advice from its legal counsel in closed session. Thus, the documents are' a communication, and the first element of the attorney-client privilege has been satisfied.

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As evidenced by Exhibit D .'3, of the' information in . .LJA.l.llULL

D.4· through D.IO were -communicated to.the TRS' Board for ·the 'purpose of facilitatingthe rendition ofprofessionallegal services to TRS. Therefore~ Exhibits D..1 through D.IO were communicated to the Board for the purpose of rendering professional legal services-and the second element of the attorney-client privilege has been satisfied.

Third, Brief Exhibit Items D.l through D:10 were onlycommunicated among TRS legal' staff, retained outside legal counsel, and the TRS Board and staff as client representatives. The privilege applies only to communications between or among clients, 'client representatives, lawyers, and lawyer representatives. Tex. R. .Evid. 503(b)(I)(A), (B), (C), (D), (E) .. Thus, a governmental body must inform your office of the identities and 'capacities of the individuals to whom each communication at issue has been made.

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As described under - the. first element . discussed .' above, the: .• items constitute 'communications between 1R.S Iegal.staffand ''IRS' client-representatives for 1;he purpose

· of tendering legal advice. Therefore, the third. element of the attorney-client privilege has

been satisfied.' . . . . '.

Lastly, Brief Exh:ibit Items D;l through o.ic, as. compiledand presented to the

· Board in the Board agenda materials, are confidential communications only intended to . be 'disclosed to lRS client representatives. The attorney-client privilege applies only to a confidential communication, id .. .503(bXl)~ meaning it was "not intended tobe disclosed

"_to third persons other than those to Whom disclosure is. made- in '. furtherance o( ~e

'. rendition ofprofessional Iegal 'services to the client orthose reasonably necessaryfor the tr~ssion: of.the communication." Id.' 503(a)(5).w'hethet·a communication meets this definition depends 'on the: intent of the: parties involved at the time.$e-i¢'onn~ti9nwas colnn1Unicate{t·O~borne·v. Johnson;954 S.W:2d 180, 184 (Tex. App.-.:W~co 1997, no writ) .. ' As previously mentioned-Brief'Bxhibit D served as the-basis for a discussion in .

. , ~losed·sessiori:on:Boatd· Agenda-Item 20(b) Where the"1RSBo~d,r~iyedlega1 advice

from'Its counsel. "Thus, the items wer(l not .disoussed publicly and' . .. .. . . .' ..

disclosed; ··The·fact·that . Exhibit '. '1 8nd.na· . ,

. ·Waiyed. the;p~vllege and tbat.·1he communications in. 'the J~ubmitted:.:W:f~~~~ have . ~eniained·~~4~A~~·~~·DpfbeeD.: disclosed to an.yOJie .. outside the protection ofSection 2~fJOT~~~!.~~.lif!~;~:ti,f~#±~~(?:03;'JQP#i?>~~P~~:p~~rot.r.;No:."676 at.l0-I}.. (20Q2)~.A:TllbS/'·~:'W.deiiQnstiated the' last elem~tnecess~ toshow that the ·,··,·~~it~~"~~~¢.i::·ili;·\th~::lilM1Zedi;~*41~$ii~'·;;.~~·«~¢ep~~;.:~?¥.~·.d.i~9~~:{~~~.11),~

..;~ttorney-client:1n.1vilege, . . . . '. : : .. ' '.' '.': ", i' ",_',

f~/~;}:~\. ·,:c;;.:. ,,:;. ·',:"·;;;.':7 ~.: . ; '. .'. '. '.:_, .'. . .... '. . .....,. '.' - .'

. '.:" ;.·· .. i<>·~~·:,:·~~.ext~*.:y.()~offj.~findS. that section 552~02~~.9f'·'lhe·'9oy~~?p.:t::!J().de ;

app~i~s ;~:~!1e~ E,~~tt~; lQ~·,~·:fuy~!C¢~t4~ .~ttQ~ey~ ~Ven:~j:;JjVi~~~¢~.iJ;(J~~@l~'P-1.e .. pf ." 'Eviden~e' 503::as::~'Qtlier;lliw'\'l.lri.dersdb.s~ctiOJ,1 (a) : of. section 552.022'·eXpre.sslj";iD.i$i#g .

.•... ~~:·su.~~tte.~:.dg?~~~~~¥,~~?~~;'~~~;{p~ :e~~~pt, frolp ~spIQ_~~i)#~~r. ·se.~ti~p

· -55~·~q~f;·.· T¥e -Te~~~&fprem~c~~)lrt·h3Sheld:·,~at the "Texas Rulesof EVlaence .... are

·.'otlier:1aW·;Withih :tl&~;:ifi~anmg':(jK~~c#(>fi ~:~~p'~;n ·~¢.e:J1J. ·.reqitY:of.G.¢6trgf~OWp'~.:}3 :S.W.3d 328,336 (Tex. '2091) .. Your officehas determinedthat wlien~e·::it~pfi1ey'~lr~nt

. privilege -is claimed for .information that is subject to . release under secnoh':5S2:.022; the proper analysis is 'whether the information .at issue is protected under. Texas Rule. of .

. ' Evidence 503. Open' Records Decision No. '676 at 5-6 (2002). Your office has .also determined that-the demonstration of the attorney-client-privilege under Rule '$Olis the same as fhat required under section 552.107(1) of the Government Code; 'Open Records Decision No .. 676, at 4 (~002). Because-the requiredshowing under section 552:.107(1) has already been made' above, TRS incorporates by reference that showing here for purposes. of, asserting and demonstrating that Rule 503 also separately protects the submitted information in Brief Exhibit D.10.

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3. TRS Comments aeganli!1g:Exceptions: to. Dlselosure under

Government Code'§ 5S~.1l6. .

. . .

IRS asserts that Exhibit D.4, and D.5 constitute audit working papers excepted

from disclesureunder section 552.116 ·of the Goveminent . Code. Section 552J16

~S~~i~,~~~ii~~~t~~~~ s~~~iOr ~A~;u;i~h;~ -

.. ' ., .<. ·agency, ~~tuti;o~:\'t€high¢r;edu~ti:6ir as d~tiiled·bY .SeQtion BIJ~g3:~)3d~on

• -.,' ._~. ..~ •• ", ,_ J ' ••• ~"""''';;r ;-.... .,,'_' .+t. .:.. ...1....... +..... .. ,", ".~ .;-'".i, .... I. _

. . -.: ., C<?d..~,\a. c~Uri~'J1.1~~t!iP:~i:tY/~:;gc~~l";distri¢t, ., or.aj()iD.~' J:&~~\&.p.et.atw.g under

.: . ..... Secfibn~to14~{trans:. QHi.tiim· CodtL" .:. Iudiri. . an ·aud16::;"jatD:(·~i6·llie Crlliiliial

.•... , .-. ? .,.",p t,!'<t : .. >' ..• ,~. g.'y . ¥! .R.,

. '. ; : .. ; .. ;hl~9<I!~k#Qi¢:q·{~lj~9.i(~ :1(P:l!lil~k·:~~lio?f'~mp~~f¢~}~.:;:~~Bt~ .. :~~~ ~w.~ . rd9.Wr~!!t~p.~~Q-f·~.~t.t{;~~:~.QZI:-· d£fufq~ti?i_(~ ·$fa.u~ ~OJ:~g l>~¥t·i~: ~C)

.' ~ .. '. ;~~'\fu~';~~tt.!er-~·;ie'6@id;·\ thattoih¢t.···r€eqM;·;·isy:.no( .excepted·: nom the .

.... . :·:·'~~1~~~=r~~a;~E1~:~~~"~;;~.4

·C., .. :.:.:~ ... ,.~~ .:o·.:lh~::UmtedSta~>.tlie~c .. ', ,. : ... : .·.0' ance of a.muni '·811 <1m.

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·.:::·>:; .. :,:t"~;·; .. ,:.:·::~el~~;t~::~~·:~9:rt~jn#'i~W,;~?~y\~a~K,~o.~.,~h~§1<:;1:()~:~tl~~9!\t9:Jpl¢;~1 .. :', ~¢p].6yee~:·:'ot<a ·i~91{tti~ii .:~ JitD;e'fJicttfin;;of.:a' jo~t~~(t:4¢Scrip¢d by

.:. . '. j8ubsec'tion.;{a)~d.. "li1CIud¢'s:'iUf btVe~gIrt1Qn: .,;~~/ ::.> :. :.~ !.~ ... ' .... ,/:..' ... ' .

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(2) "Audit working.p~er" includes all information, -, · d()·c~~p.Wy or

. .. . otherwise, prepared or maintained in conducting an audit or preparing an

<':.><:> . ., ... a~t.tep9rt, including: :... . . . . . . . .

. ~,'t:rc";}.~:;,~,,~:}~~~'~~~~~~~£~J: ,::,:":' .. ;.,

mtormanon ill .. Exhibits DA and D.S as audit working papers and the fact that, to TRS's knowledge, there is not. a completed audit report, TRS·asserts that Exhibits DA and DSare. excepted

from disclosure under Government Code 552.116.· .' .. _

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'4. TRS Comments RegardingExceptions to Disclosure' and Confidentiality under Government Code § 552.101 and common-law

privacy. , '

Exhibit D.n,·

. According to 'TRS~ylaws, "The'Bolird of Trustees .of TRS' is the trustee all plan

, , 'assets, is' respo$ihle fo.~" the g~nerai adtirinis1ration: of tRs and: the transaction' of the . business of the Boardr'Section 1.1, Bylaws of the Board of. Trustees of the Teacher

Retirement as amended " .

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Page 19 .

thus, IRS asserts excepted from disclosure under Government Code .

. '. .~.'" rss ~orqJll~il,t§~~eg~rding Exeeptions ~der.Govt:minentCode §

.' .~.':: ... ' ':·'··:: .. l:>;··;.S"5~~.tll:,· .... ;~ ::'.~':<:;~;".<".>" .,.- .. :.,< .: :.: -: : .. : .' '."->:: ... ' ,'.'

. .;,. TRS' ruiierts ·that·~xbibitb.·i2:·~~·.ex¢epted. ir6~ di~6i~$&~ iliider '6overJrnerit'Code 'Section '. 5S2.1ll ~' .... A$'.dis~U$~e4 .~, Brief Section IV (A)(3), 'the deliberati,V:e' due process ', ..' exceptiOn is'cQntemplatecLWitlllri Go;lernriientCode:Sectlon. 552.111 in~9t4¢t, .to.protect

advice, opinion, andrecommendation in the decisional proc¢'ss' and, to 'ento\trage' '~pen 'B,J;i,dfranlc discussionin.thedeliberative process; See Open Records Decision No. 615 at 2;:(1_~9~);'.~~·~~:~,:Atist:in:,·y'.::¢it.Y ,r;f·~11:;.AizfQ..rJio, .9.3.0.,:,S.)" 4,d, 391, 3~4. {rex. App.~.an ·A#roliio)982"no·Vi.rit);''Op¢h·~ec.6r4ftP¢Ci~idnNO'.:,53;8··~f.l ~2,' (1990);::;A-~ti~~: ~ , meritioiioo~rie:f·SectionIV(A)(3)~·Y()\ir'6ffioe haS" deterinih&i~t~a·gO~ernw..~ii~:~c1YS·

'.' '.' ~llgyrilalciIigfun~ti6pS.:do not'.e~CoInpaSs. routine, internal' :fidI1iini$U.Ei:tiVe ::Q~:~rSt)littel . · .. ~~r~;bUtthey,~Q;.6nco~~~·,~~v~';~,r~~~nri~1)liattersOr~r~(f s.c()~. ~t ··.·.~e~tJh~;goveIJlli?,eh:tal:··;l.i.qqy'spo~c:Y·ini~si9I£::8~e ... q¢.il,R¢._QrdsDe¢isJP~.Ni?/f6?,1:,at 3 . -(1995t ... .. . . .. .: "". :,,' .: ,_': ' ...... : ~~:':<. '.'. '.: .:'. '. ::'/:~::,:/::;; "~'::. ~'.';'~ ,': ... /<'~."':"~.:;:;;;,:.: "":;.:';'::

.' are broad. in: scope, TRS ............ u.vu. 0 .12 is· excepted from disclosure ~d~r Government Code Section

. .

E. Emails and Attached Memoranda Dated November 11-13t 2008.

,. .

1. Description

,Exhibit E, consisting of Bates-stamped Exhibits E.l through E.3, is submitted as a

representative sample . of attorney-client privileged communication . from

'. Exhibit E . contains

Exceptions Claimed: Government Code § 552.107.

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~'" . TRSJ~'9~~w,s;]_{1jgaJ1liJjg:.E:l:~.~~tj9~to~l~,iss}.o~,J1r:~:und~,r:·:1·'~.·: ;"," . Governmen{Cod~§552~io1?'~' "" ... ' -.', ".' -, '~'-'.':""- .. '.' ",' '~."""-'.

'. and, not b·e.en disclcsedtoanyone outside the'prptectlbn of Sec non 5$2; .... ',' r: 503:: .Therefore~ TRS asserts that EXhibitS E. i through E:4 meet' the elements of atlobiey.client

privileged cornmunication and are excepted from disclosure. . .

F. Emails.andAit~ch~~i~e~~randa.D~tedAprlh;o;.ioio ..

i, Description

.. Exhibit F is submitted. ~,.~ r~~resentative samp~e. of a'1 ;tOJ;1Q.ey-clI.ent

. Exceptions Claimed: Government Code § 552.107 ..

"~~oft11e Attortiey General , Open Records Division Page 21

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.. ;. ':TRa.·a:ssc$ ··tt.atEXhlbit:P, iD.eets~the test for e~cepte~:~ttomey~cIieiit'n:l :1V1,lleP"f~U

. ..' 'out in' • Section . .' '. , .. .. : . W"lXlllall

• The email is, in and itself, a OJ' ammumcanon,

of theattoIlley,.client privilege test :is' met: Second, . is '

communicated for the purpose of facilitating the rendition of professional legal services. Third, the communications only occurred between or among .. and

'. IRS staff. ' ki the the

, ~.Exhibit Fwas

.: not: -to be. . TRS states ,retirement system has not

. " waived: the .attomey-client privilege. and that, the .communication in the exhibit has. : -remainedconfideatialand notbeendisclosed to anyone outside the protection 'of Section. , . :552.107 and Rule 503. Therefore, TRS .asserts thatExhibit F: meets the elements of "attorney-client privileged communication and is excepted from disclosure. '

. . . 1. Description

. ~ . . .."

·an attached draft memorandum . that was

staff' asserts that the attached .draftmemorandnm is a representative .

. . or' policy. development' and draft memoranda that are excepted from disclosure

under Government Code Section 552.111. " :.".'. .

Exceptions 'Claimed: Government Code § 552.111. "

2.. ': TRS Comments Regarding Exceptions iQ . Disclosure under . ··G~ver.iJ.meri(Cocle § .5SZ.i.11... . .

.:;: .~ ..... + -. • ~ • ~ .:. :.:'" "." ': •

Exhibit G'meets the requirements for exception "as ~. interagelicyb~ ,fuhaage~~y memorandum or letter that would not be available by law to a 'party in 'litigation with the agency." As discussed in Brief Section IV(A)(3); Government Code Section 552.111 , encompasses .not .011lY.draft memorandum but also the deliberative 'process 'privilege. See 'Op'en'Re'Cdtd~'DeciSion No'. 6l5.at 2 (l99'3} Thepurposeof thisexception is tci.p~otePt advice, opinion, and recommendation in the decisional process 'and::to';-eiIcotitage~dpen: and frank discussion in the deliberative process. See' Austin v. City of San, Antonio, 630 S~ W2d 391, 394 (Tex .. App.e=San' Antonio 1982, no writ); Open Records Decision No.

538'at 1-2 (1.990). The memorandum of Exhibit G is a representative . of

draft memoranda the memorandum

.. ~._~ .. _. '. '-'~-. Office of the Att6mey General

-~~ Open· Records Division .

Page 22

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:'

i ·".:&m~il Striitg ~~d:M~~~randum ~~gard4t~ Ge~eraI 'dro~b Ptri·~~;ti~s.· .: .. ::.' .. :;.,

.: 1. ··Description .

i

I

. : ': .

. . : ';: . 'EXhjlftt H~ whi~hc.o~istS of B~eS-stalnpedEx.hiJ~its-·a.1 and f121. are two 'email strings; one of which inhludes' the teXt· of a' dtJt.'·niemotand~· amoiig':tRs staffand

· TRSBoard members regarding TRS's investment in General Growth ·Properii~s.·.1RS· asserts that the: email is a 'representative sample of p~licy developinent that is excepted

· from disclosure.under Government. Code Secllon 552.11 I. . . . .:" ..

2.141.

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2~ TRS C~Iilments Regarding Exceptions to Disclo.sure und~r'GovemlIlent .:

Code § 552.111.

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. . .

Exhibit H .meets the .requirements for exception as an interagency' ,or .. intraagency'

memorandum or .1ettet-·that· w,ou1d.·-tlot beavaM.$le .1;)y law toa:p~_' iilll,tigat.i9nW1h -ili:~

~.,. • ..•.. +,'- .-~, •.. : ., .. ' ", ,' •.. ~~. - .. ' .,', -,' .' J- ....... ,.(:~I'. ,.. • .....

agency." As discussed in Brief Section N(l\)(3); .. Goyern:meilf C9d{fsectibn·:.~52.1.U

encompasses .not only draft memorandum but also. the deliberative _process privilege.' See Open Records Decision No. 615 at 2 (1993)._ . The' purpose of this exception is to protect advice, opinion, and recommendation in the decisional 'process and to encourage open - and frank discussion in the deliberative process. See Austin v. City of San Antonio, 630.

.' S.W.2d 391, 394 (Tex; App.-San Antonio 1982, no writ); Open Records Decision No. · 538 at 1-2 (199Q). The emails and memorandum in Exhibits n.r and _ H.2 are

'. representative of memoranda. Both H.I

. and B.2 aoaress . 'Given the. Boards mandate- under Section 67(a)(3) of the. Texas

.. tp' administer-the-system-and :to· -invest-the-funds '.Df thesystemin such.;

securities as the board may consider prudent investment, and Government Code Section

· 825.101, which specifically requires the board to administer the' . for the

. sole benefit. of - the members, addressing

.is a matter affecting TRS's broad. policy scope. .

and memorandum contained therein are excepted. from disclosure under Government

Code Section 552-.1 J L -

--~·"9ffice of the Attorney General'-' ~~-~~ __ .. _-:

Open Records Division . . .

Page 23

3 .. TRS Comments Regarding Exceptions to Dlsclosure under Government

Code §552.143~ ,. .

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,

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. ; Exhibit H.I- and H2 are also representative samples of due diligence discussions

regarding private investments that i~ excepted. from. disclosure -under Government Code ... ~ection~52.l43. TRS-EXlri,bi(H, consisting of Bates-stamped Exhibits H'l an~~.2, is a :iep~sen.:tAtiv~~pleof:d1.te:diligefi¢edis·cU$sionS:between TRSinveStri.J_ents:$fi and ···Ce~{:TRstB.o~d -members, which contain . confidentialinf'onnatiQ~. ~gepted: from

public disclosure by section~52, 14 3:· of the Ac~ which-pi-ovIdes, in:P~~:_-··:~:~ __ ·~;. :::.:. . ,

. ,

- .

~

(a) AlI·inforJIlation prepared 'or provided by apriv~te investment fund.and 'held bya governmental body that is notlistedin Section 552.022S(b) is confidential and-excepted from the requirements of Section 552.021. '.

• J ..

(b) Unless the-information has-been publiclyreleased, pre-investment and post-investment due _ diligence information, including reviews and analyses, prepared by or-maintained by agovemmentalbody or a private

: iIivestment ::furid .Is confidential and. excepted. from. the requirementsof Section 552.021, except to theextent it is subject to disclosure under

. .. . .... .,: .~~~~.~~~. ~)' .. ' ..

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" ~ .

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;SebtloIl 5 52. 143 (a) expressly. carves out section 552'.0225(b}. info~tior.i. from its . ;·'·ex~ptioi1 todisclosure.- Previously, your-office has. ruled that section 552.143(b) also

· carves-out ·section:552~()42S(b)niaterialfr()m its exception . to :disclosure. See Open RecordsLetterNo.2005.,06095 (2005).· TRS has argued, and yourofficehas agreed, that section:552.0225(b) applies 'only to thosefunds in-which TRS has actually invested, See "Open Records Letter. No. .2010-10478 :(2010). As 'noted, in Exhibit H.l, TRS's investment in the General Growth Properties.is new public knowledge; yet,·the analysis

· and pre-investment due diligence informatiori is excepted under Section 552.143. Thus,

· TRS 'submits for exception from disclosure information in the representative sample email and memoregarding pre-investment due diligence information that is not subject to

disclosure under 552.0225(b). .

I. Memoranda and Vulnerability Report Dated March 31,2009.

1. Description

Exhibit L'consisting of Bates-stamped Exhibits It through I.3,-is a representative . sample of audit working papers and a technology vulnerability report protected from disclosure under Government Code Sections 552.116,552.139, and 2054 .. 077.

Exceptions-Claimed: Government Code § § 552.116,552.139, and 2054.077.

2. TRS Comments Regarding Exceptions . to Disclosure under Government Code § 552.116.

Office ofthe ~ey,.cleri~ral

· Open Records Division . Page 24

:.,. As discussed in . Brier" Section IY(D)(3), Government Code Section 552.116

specifically provides that audit working papers are excepted from disclosure. 1RS asserts that Exhibits 1.1 and 1.2 are excepted from disclosure under Government ·Code Sections 5~2.116 as audit working papers pursuantto an .~udit performed by IRS Internal Audit under Government Code Sections 2102.003, ~W2.004, ... 7-~02.005/and 210~.007. As

evidenced. in the II '. . . the TRS ...... n· uirl1n

... -.-~

,.~-::.

Both Exhibit .. representative 'samples of interagency communications that .are audit working .papers.

Additionally, . as the items are simply interagency .communicationsand are not . completed

· audits, they-do not fan under 552.022(1). . ; . .

. 3.

, ~.'

• • . ~ !

...

· TRS Comments RegardingExceptlons to Disclosure under

. Govem~ent- Cod~.:§ ~52.13~ and .§ 2054.077-: .

~ , .

• ... + • • •

. TRS asserts that EXhibit I.~ is excepted from disclosure under. Government Code

· Section 552.1.39 as a~~YUlDerabl]jtyaudit report. Section.55~.139·providesin relevant part, "Except as· provided in this .section, .. a. vulnerability. report and any

vulnerability report is co . enti an is not su ject to sC osure un 'er - h1ipter'"S'52:""=' ==========Exhibit 13 is a 'technology vulnerability audit conducted as part of TRWs audit plan

pursuant "to Govemment.Code Sections·.4102.0Q:J,. ~102.004, 2102.005; and 2102.007.

Under 'both Government Code Sections 2054;077 and. 552.139, TRS asserts that ·the

technology vulnerability report is excepted from disclosure.

J •. EmailsDatedDecember 11,2007 through june 10, 2010.:

· .

...

1. Description .. .

EXhibitJ, cOD;Sisting ofBates-stamped Exhibits" r.i through J.5 is arepresentative sample of due diligent discussions between TRS· investment staff and certain TRS BO,!!d members relating to TRS's consideration of. investment in private funds, IRS asserts that the emails are excepted from disclosure under Government.Code Section 552.143.

Exceptions· Claimed: Government Code·§ 552.143.

2. TRS Comments Regarding Exceptions to Disclosure under

- Government-Cede § 552.143.

TRS asserts that the information in Bates-stamped Exhibits JJ though J.5 includes confidential investment· information that is. excepted from disclosure under section 552.143 of the Government Code and that is not subject to section 552.0225 of

the Government Code, which makes certain investment inforinationpublic.· .

Section 552.143(b) provides;

l

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O:ffic~cof:the:A~orney General Opeti"R:e-cdrdsl)T~slon

Page Zf

Unless the information' ~., been.p~blicly· release~ -pre-investment and postinvestment diligence information, including reviews: and analyses, prepared or maintained by a governmental body or a private investment fund is confidential and excepted from the requirements of Section 55;2.021, except to the extent it is 'subjectto disclosure under Subsection (c) ..

····The labeled: information is excepted from

. The submitted information has' not 'been released, 'and it is not

subject 'to (c) of Sec~on··552.143 ·becaUse·,the information' involves. TRS's purchase, holding, or disposal of restricted securities for. the purpose ofreinvestment. Accordingly, . the' submitted information may be Withheld under Section 552.143(b)" as' pre-investment diligence information prepared by TRs.

, K. M~teria~ Presented to the Alternative Assets. Committee ofthe Board.

1. Description .

E;aubit- K, consistipg··of.Bates-sta.iilpeA dq~.umeIits K 1 through .K 3, rruate to

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TRS'sconsideration of investment . in private funds and are excepted from disclosure

.' .underGovemment Code Section 5~2 . .l4~(Q)",> ". :' .

. Exceptions Claimed: Government Code § § 552.143 'and 552.110.

:2.

. ~ ~ . ,:

TRS. Comments Regarding"Exceptions to Disclosure under " . Government Code.§ 552.143. ,. " ' .

.. ' ,; ....

. TRS Exhibit Kis' a representative sample' of.eom,mitt~ board.h~()ks·preSented to the Alternative Assets Cominittee of .the Board (AACB)~ The AAeB was in existence from December ~OOO to July 200.1.' " Bates-stamped EXhlpitsK.l through K.3· represent

. 'fRs.'s internal pre- and post-due diligence analysis, TRS outside advisor due diligence . analysis, and. presentations by the funds themselves; which may contain proprietary

. information. 'Moreover, TRS'asserts thattheinformation has not been.publicly released; thus, the labeled information that is notlisted in Government Code Section 552,0225(b). is confidential. . .

L. Materials Presented to the Private Markets Committeeof the Board ..

1. Description .

Exhibit L relates to TRS; S consideration of investment in private funds and is excepted from disclosure under Government C~de Section 552.143(b).

Exceptions Claimed: Government Code § S 552.143 and 5~2.l10.

.••...... ~~~:"~_:····Office·offue Attorney ·General· 'Open Records Division

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, : 2. ... ,TRS .. Comments Regarding.Exceptions· to Disclosure ~der.

Government Co·de §SS2~143~ . .

. .··.f'· .

. . ', :TRSExhibit L is a representativesample of committee. board books presented to the Private Markets Committee of the Board ,(FMC). The PMC was in existence from July 200J.to December 2008. Exhibit L is a representations of pre- and post- investment

.'4y~diiigence .~ysis.¥oreQv~r, .IRS, assertsthat theinformation has' not been publicly i~~~;~,!tij~;i1;lj~~~~~¢~#ifot:m.atidn· that is not . listed. in Government ·Code .Section

551Iig25to)'if~nfidetitiat'::' '.'~'.,:;c,·' ' ... , , ... ,::.. , .. ;", .. ;. .. ,' " ,' .. _. :. ,~J~~\' ... :'"

:. .•• ..~ ,: .~... .. ",.:. ,. r'· '" ': .::<";.:>:, ':' .. -:,~: .. :.,,~.'>i::.;'.'.:'_.:' .. :.: , .... '., ::'.';;:::".;;;,:. _<~.>'. ~ ::::'~\.,),::!;~:,;.::fE:( .

. . ' ,·M., MateriaJs-.presenied' to. the Investment Managements Committee<of the· .. ,

, Board.· . ,.,. .

. 1. Description

+ ~

Exhibit Mielates'l9 TRS' s consideration of i:Jive$Iie:ti.t in private funds. and the information it contains is excepted from disclosure under Government Code Section·

552.143 (b). .

.. ' ..

• c ~.

2. TRS Comments Reg~rdingE~ceptiOlis to DiSclosure'·nnder . Government Code § 552.14~.

. . .'. TRS. Exhibit M is a representative sample of a supplemental materials committee board book presented to' the '·:mve~ent};4iuiagement Committee 'of the Board, (IMC).· The IMC was established in the, TRS Bylaws ill :December';2008 to supersede' the PMC .

. Exhibit M represents pre- and post- investment due diligence analysis and may contain . proprietarY -information; Moreover, TRS· asserts that . the information has not been publicly released;' thus, the !labeltXf 'mformation that is' not ·listed in . Government Code Section 552.022S(b) is confidential due, diligence 'information underGovernment Code Section 552.143.·; > ...'. ' . .. . . ". ': . . .. . .

I

N. 'Internal Investments-Committee' Items .. ·

i. Description

Exhibit ,N, .consisting. of Bates-stamped documents 'N: land N.2 relate to TRS's consideration of investment in private funds and are excepted from disclosure under Government Code 'Section 552.143(b).

Exceptions Claimed; Government Code §.§ 552.143 and 552.104.

p~~.

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Office ~f the Attorney .General'",~;:~-·~· Open Records Division .. '. . ... ~" .z.:

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2. TRS Comments Regartiili.~:Exceptions to Disclosure "~nd~r Government Code §.552.143 and § 55i.l04.

" ..

. . TRS Exhibit N.1 is a representative 'sample ofthe Internal Investments Committee

meeting minutes. The minutes represents pre-investment due diligence analysis in that the .committee discusses and evaluates investment opportunities before actually making

. - recommendations to the Board. TRs Exhibit N.2 is a representative .sample of the transparency report "that details upcoming TRS" investment deals that· are being . considered, Exhibit N.2 is not only pre-investment-due diligence but also competitively. sensitive.information for TRS.-As abovein Brief Section N(C)(2), TRS .. asserts that it

'. has a. specific marketplace interest in its. "competitive information' and actual harm will '. conie from the. release of Exhibit N .2 .. " TRS' s specific marketplace interest is that seeks business' opportunities that" provide the best return. on investment for the system's members .. 'Release 'of Exhibit N.2 would chill TRS' s ability to execute investment deals with funds that are listed in the transparency report and deter. other funds from working with TRSin the future, if the proprietary information in Exhibit N.2· is subject to

disclosure. " '.-

Conclusuin'

~¥==~====:'~_;""'~...ffi*!' 'mmfigIy, ·thesu~ttedinfurmation may be withlwld \mdei:theeiceptio:u.ns~. '~tol,!,," =========

disclosure described above. . .

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Thank you for your consideration;

" Sincerely,

M~m~

. " ~eb~ccaMerrill - l. .

Assistant General Counsel

Enclosures

c: Elena Marks'

2100 West Loop South Suite 700

Houston, TX 77027 (w/o enclosures)

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