But in a victory for open-records advocates, the Texas Attorney General ruled last week that the contract is a public record.

The San Antonio Express-News published the contract’s details Friday in a story by City Hall reporter Josh Baugh. Readers learned for the first time that the San Antonio Tricentennial Commission, a nonprofit entity set up by the city of San Antonio, paid REO Speedwagon $232,500.

Why, you might ask, was obtaining this contract so difficult? Why did it take months to see the light of day?

After all, the Texas Public Information Act clearly states that contracts with government agencies are public records. No tax dollars went to REO Speedwagon, but the Tricentennial Commission serves as an arm of the city. For years, contracts between companies and government agencies were routinely released to the public.

But a June 19, 2015 ruling by the Texas Supreme Court changed all that.

Boeing vs. the Attorney General

In a San Antonio court case involving Boeing and the Port Authority of San Antonio, Boeing was trying to stymie the release of its rental contract with the port authority to a former Boeing employee.

Boeing argued that it had standing to challenge the release of the contract, and that its public release would provide an advantage to competitors. Over the span of a decade, trial and appellate courts had ruled against Boeing.

But the company appealed to the Texas Supreme Court and the justices agreed with Boeing — opening the door for groups such as REO Speedwagon to try the same strategy to keep government contracts out of the public eye.

“Everything from school bus finances to power plant construction costs to a university’s beer marketing agreement have been kept off limits because of the Boeing ruling,” wrote Kelley Shannon, the executive director of the Freedom of Information Foundation of Texas, in a November 2017 post decrying the court decision.

Read more: Open records quiz: Can officials question your motives when you file an open records request?

Companies and agencies trying to censor records under the Boeing decision have cited the court ruling 1,500 times, Shannon wrote:

The city of Austin recently used the ruling in an effort to keep secret the names of finalists in its city manager search, saying it didn’t want to give competing cities a hiring advantage. After public pressure and a lawsuit by the Austin American-Statesman, the city said it would soon release the finalists’ names. The Statesman has already figured out several candidates’ names and reported them.

In the Rio Grande Valley, the Agua Special Utility District attempted to use the Boeing ruling as a reason to keep secret nearly $500,000 in severance payments it made to two former employees.

The continuing poster child case for the Boeing problem is the city of McAllen’s refusal to say how much taxpayer money it paid to entertainer Enrique Iglesias to perform in a holiday festival.

Clearly, there’s deep erosion occurring in the Texas Public Information Act. Texas needs to re-examine its commitment to the people’s right to know.

So how did REO Speedwagon’s contract end up getting published?

REO Speedwagon’s contract in San Antonio

A company that wants to keep a contract secret still has to make its case with the Attorney General’s office. In this March 19 letter, the Texas Attorney General ruled that REO Speedwagon’s contract was a public document because Creative Artists Agency, the firm that represents the band, hadn’t made a strong argument to keep the contract out of the public realm:

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“We find that CAA has failed to demonstrate the release of its information would result in substantial harm to its competitive position,” the letter states. A business must show “specific factual evidence that substantial competitive injury would result from release” of the sought records.

Until Texas lawmakers pass legislation to undo the damage from the Boeing decision, the REO Speedwagon case demonstrates there’s still a sliver of hope for anyone who hopes to learn how government agencies are spending their money. A company can still fail to sway the Attorney General’s office.

But it can easily go the other way.

Pat Benatar, another 1980s rocker who also performed at the New Year’s Eve gala, signed a contract with the Tricentennial Commission, just like REO Speedwagon. But we still don’t know how much money she received.

Benatar’s people made a more compelling argument to withhold the contract, according to the Attorney General’s letter, and her contract didn’t have to be released.

Total heartbreaker.

The post REO Speedwagon can’t fight you reading this $232,500 contract anymore appeared first on John Tedesco.

Sued by the Texas Attorney General and accused of squandering donations, the Texas Highway Patrol Museum in King William is a step closer to its demise.

Check out our past news coverage of the museum, which is actually a telemarketing operation that spends only a fraction of its revenue on charitable causes.

The post Facing lawsuit, board of Texas Highway Patrol Museum gives up $1.2 million in assets appeared first on John Tedesco.

The Texas attorney general’s office announced yesterday that it has sued the Texas Highway Patrol Museum, a nonprofit telemarketing organization based in San Antonio that raises millions of dollars in the name of helping state troopers.

I had always been curious about the museum, which is housed in a brick building at St. Mary’s and Alamo streets but attracts few visitors. In October, we examined the museum’s tax records and found that only a fraction of the nearly $12 million in revenue raised by the museum’s telemarketers actually went towards the charitable causes it touted. For every dollar raised, less than a penny was spent on Department of Public Safety troopers and their families.

Attorney General Greg Abbott’s lawsuit reveals new details about what, exactly, donors’ money was spent on. State investigators obtained financial information and credit card statements from the museum, and found employees had paid for cigars, liquor, vacations, meals and “exorbitant” vet bills for an “office cat.” The lawsuit describes an organization with few controls over how money was spent, and an absentee board that seldom asked questions.

In our last story, I interviewed Scott Henson at the criminal justice blog Grits for Breakfast, who had received a telemarketing call from the museum in August. Scott wasn’t happy that the caller initially claimed to be with the Texas Highway Patrol — as if the caller were really with the Department of Public Safety. “This group is about as much about helping troopers as buzzards are about helping roadkill,” Scott wrote at the time. He called yesterday’s lawsuit “way past time.”

Related: How to find and analyze tax records of charities: The IRS 990 form explained

The museum’s assets have been frozen and it’s been closed since Friday. Its lawyer, Kim Brown, called the lawsuit “heavy handed” and said the expenses were justified.

What about the cigars?

Prizes for telemarketers, he said.

Liquor?

Drinks for office parties.

The office cat?

The vet bills for the cat were unavoidable.

The lawsuit lays out more expenses for trips, meals and cars that the state describes as wasteful spending. But Brown said the museum is hardly a fly-by-night organization that defrauds people. The small museum has operated in San Antonio for years, he said, and while it has high overhead costs, it does spend money on charitable causes.

The attorney general is seeking to dissolve the nonprofit museum and its related entities. The next step is a hearing for a temporary injunction that has yet to be scheduled.

Here’s a searchable library of all primary documents we’ve obtained about the museum. If you’ve had any experiences with the museum or its telemarketers, feel free to contact us.

The post Attorney General Greg Abbott sues the Texas Highway Patrol Museum in San Antonio appeared first on John Tedesco.