September 10, 2012

Ms. Laurie B. Hobbs

Assistant General Counsel

Office of Consumer Credit Commissioner

2601 North Lamar Boulevard

Austin, Texas 78705

OR2012-14290

Dear Ms. Hobbs:

You ask whether certain information is subject to required public disclosure under the Public Information Act (the "Act"), chapter 552 of the Government Code. Your request was assigned ID# 464838 (OCCC File No. OR-12-249)

The Office of Consumer Credit Commissioner (the "commissioner") received a request for complaints against PLS Loan Store, Inc. ("PLS") for activities in the city of Dallas during a specified time period. Although the commissioner takes no position with respect to the public availability of the responsive information, you state the information at issue may implicate the interests of PLS and one of its third party lenders. Accordingly, you notified PLS and the third party lender at issue of the request for information and of their right to submit arguments stating why their information should not be released. See Gov't Code § 552.305 (permitting interested third party to submit to attorney general reasons why requested information should not be released); Open Records Decision No. 542 (1990) (determining statutory predecessor to section 552.305 permits governmental body to rely on interested third party to raise and explain applicability of exception in certain circumstances). We have reviewed the submitted information and the arguments submitted by PLS. We have also received and considered comments from the requestor. See Gov't Code § 552.304 (providing that interested party may submit comments stating why information should or should not be released).

Initially, you state the requestor narrowed the scope of his request to exclude specified portions of the submitted information. See id. § 552.222(b) (stating that if information requested is unclear to governmental body or if a large amount of information has been requested, governmental body may ask requestor to clarify or narrow request, but may not inquire into purpose for which information will be used). As such, these specified portions, which you have redacted, are not responsive to the request for information. This ruling does not address the public availability of any information that is not responsive to the request, and, as you acknowledge, the commissioner need not release such information in response to this request.

PLS asserts some of the responsive information is excepted under section 552.110(b) of the Government Code. Section 552.110(b) protects "[c]ommercial or financial information for which it is demonstrated based on specific factual evidence that disclosure would cause substantial competitive harm to the person from whom the information was obtained[.]" Id. § 552.110(b). This exception to disclosure requires a specific factual or evidentiary showing, not conclusory or generalized allegations, that substantial competitive injury would likely result from release of the information at issue. Id.; Open Records Decision No. 661 at 5-6 (1999) (to prevent disclosure of commercial or financial information, party must show by specific factual evidence, not conclusory or generalized allegations, that release of requested information would cause that party substantial competitive harm). PLS argues that release of the identity of its third party lender would cause it substantial competitive harm because a competitor could seek the lender's services and "attempt to replicate the relationship between PLS and [the lender] without the hours expended and expenses incurred by PLS in developing [such relationship]." PLS also cites to section 393.622(b) of the Finance Code and asserts, because this statute protects a contract between a credit access business, such as itself, and a third party lender obtained by the commissioner, the Texas Legislature intends such relationships to be protected from competitors. See Fin. Code §§ 393.622(b), .601(1). However, PLS fails to explain how release of the name of the third party lender would allow any competitor to replicate the relationship between PLS and the third party lender or the nature of its relationship with the third party lender. PLS also seeks to withhold the name of one of its employees, stating release of its employee's name would cause it substantial competitive harm by allowing a competitor to make an employment offer to its employee and gain the benefit of PLS's training and expertise. Upon review of PLS's arguments, we find PLS has made only conclusory allegations that release of the information at issue would cause it substantial competitive harm. See Open Records Decision No. 319 at 3 (1982) (information relating to organization and personnel, professional references, market studies, and qualifications are not ordinarily excepted from disclosure under statutory predecessor to section 552.110). Accordingly, the commissioner may not withhold any portion of the responsive information under section 552.110(b) of the Government Code.

We note an interested third party is allowed ten business days after the date of its receipt of the governmental body's notice under section 552.305(d) to submit its reasons, if any, as to why information relating to that party should be withheld from public disclosure. See Gov't Code § 552.305(d)(2)(B). As of the date of this letter, we have not received comments from the third party lender explaining why its name should not be released. Therefore, we have no basis to conclude the third party lender has protected proprietary interests in the information at issue. See id. § 552.110; Open Records Decision Nos. 661 at 5-6, 552 at 5 (1990) (party must establish prima facie case that information is trade secret), 542 at 3. Accordingly, the commissioner may not withhold any portion of the responsive information on the basis of any proprietary interest the third party lender may have in it. As no other exceptions are raised against disclosure of the responsive information, it must be released.

This letter ruling is limited to the particular information at issue in this request and limited to the facts as presented to us; therefore, this ruling must not be relied upon as a previous determination regarding any other information or any other circumstances.

This ruling triggers important deadlines regarding the rights and responsibilities of the governmental body and of the requestor. For more information concerning those rights and responsibilities, please visit our website at http://www.oag.state.tx.us/open/index_orl.php, or call the Office of the Attorney General's Open Government Hotline, toll free, at (877) 673-6839. Questions concerning the allowable charges for providing public information under the Act must be directed to the Cost Rules Administrator of the Office of the Attorney General, toll free, at (888) 672-6787.

Sincerely,

Ana Carolina Vieira

Assistant Attorney General

Open Records Division

ACV/ag

Ref: ID# 464838

Enc. Submitted documents

c: Requestor

(w/o enclosures)

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