A&A: Open Meeting Rules for Chamber of Commerce/ Non-Profits

Open Meeting Rules for Chamber of Commerce/ Non-Profits

Q: Our chamber of commerce receives funding from the city offset costs associated with operating a visitors center in conjunction with the chamber office. Is the chamber subject to the same rules for request for information that the city is required to adhere to? Are there any commonly accepted procedures for holding elections for the chamber board?

A: Typically, chambers of commerce fall in the category of nonprofit organizations.  The California Public Records Act (PRA) explicitly provides that “nonprofit entities that are legislative bodies of a local agency” pursuant to Section 54952 of the Brown Act are “local agencies” subject to the PRA.  Subsection (c) of section 54952 provides:

54952. As used in this chapter, “legislative body” means:

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(c) (1) A board, commission, committee, or other multimember body that governs a private corporation, limited liability company, or other entity that either:

(A) Is created by the elected legislative body in order to exercise authority that may lawfully be delegated by the elected governing body to a private corporation, limited liability company, or other entity.

(B) Receives funds from a local agency and the membership of whose governing body includes a member of the legislative body of the local agency appointed to that governing body as a full voting member by the legislative body of the local agency.

(2) Notwithstanding subparagraph (B) of paragraph (1), no board, commission, committee, or other multimember body that governs a private corporation, limited liability company, or other entity that receives funds from a local agency and, as of February 9, 1996, has a member of the legislative body of the local agency as a full voting member of the governing body of that private corporation, limited liability company, or other entity shall be relieved from the public meeting requirements of this chapter by virtue of a change in status of the full voting member to a nonvoting member.

Thus, a non-profit would be subject to the Brown Act and the PRA if either (1) it was created by another body subject to the Brown Act to exercise authority that may lawfully be delegated by that body to a private entity, or (2) it receives funds from a local agency subject to the Brown Act AND at least one voting member of the non-profit’s governing body is a member of the legislative body of the local agency subject to the Brown Act who was appointed to that position by the legislative body of the local agency.  Assuming the chamber of commerce you reference meets the definition of a “legislative body,” such
organization must comply with the provisions of, both, the PRA and the Brown Act.

With respect to your question on the procedures for holding elections — assuming, of course, that the chamber is subject to the PRA and Brown Act — neither the Brown Act nor the PRA address the organizational issues of legislative bodies, such as the procedures for electing members to its governing body, and I am not aware of any other
California statutes that might apply.  Such organizational issues are typically governed by the internal rules of the governing body itself. You might want to ask the board for a copy of its bylaws to see if they address that specific issue.