Did Connecticut’s nonprofit Student Loan Foundation have to open its records and meetings under FOIA?

Plain-English summary

In February 1995, Connecticut’s AG advised state auditors that the Connecticut Student Loan Foundation was subject to the Freedom of Information Act’s public-records and open-meeting provisions. The foundation was organized as a nonprofit corporation, but the AG applied the functional-equivalent test rather than relying on its label. It performed a public educational function, was created by statute, received primary government funding and operated under substantial government involvement and regulation.

The opinion compared the foundation with a prior court decision treating a privately managed academy as a public agency for FOIA. Government appropriations and bonds supported the loan foundation, public officials sat on its board, and statutes set its purpose and powers. The AG concluded the four factors together brought it within FOIA.

That status did not make every record public without exception. The foundation could still invoke applicable state or federal exemptions, including rules affecting some student-loan information. The AG expressly limited the public-agency conclusion to FOIA and did not decide the foundation’s status under other laws.

Foundation staff and records requesters at the time

The opinion made FOIA’s records and meeting framework applicable to the foundation, with each request still subject to lawful exemptions.

Auditors at the time

The AG’s conclusion concerned transparency obligations, not a blanket classification of the foundation as a public agency for every statutory purpose.

Currency note

This opinion was issued in 1995. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Q: Did nonprofit incorporation keep the foundation outside FOIA?
A: No. The AG applied the functional-equivalent test and found it met the public-agency criteria.

Q: Were its board meetings covered by open-meeting rules?
A: Yes. The opinion said FOIA’s public records and meetings provisions applied.

Q: Did every student-loan record become disclosable?
A: No. The AG preserved exemptions available under state or federal law.

Q: Did this make the foundation a public agency under every other law?
A: No. The opinion expressly limited its answer to FOIA.

Background and statutory framework

The auditors asked whether the loan foundation met FOIA’s agency definition. The AG compared the records rule in Conn. Gen. Stat. §1-19(a), the meeting rule in §1-21(a), and the foundation’s statutory creation and purpose in §10a-201.

Citations and references

Statutes: Conn. Gen. Stat. §1-19(a); Conn. Gen. Stat. §1-21(a); Conn. Gen. Stat. §10a-201.

Source

• Landing page: https://portal.ct.gov/AG/Opinions
• Opinion page: https://portal.ct.gov/ag/opinions/1995-formal-opinions/mr-johnston-and-mr-jaekle-auditors-of-public-accounts-1995006-formal-opinion-attorney-general-of-con

Original opinion text

Mr. Johnston and Mr. Jaekle, Auditors of Public Accounts, 1995-006 Formal Opinion, Attorney General of Connecticut

Attorney General's Opinion

Attorney General, Richard Blumenthal

February 2, 1995

Kevin P. Johnston

Robert G. Jaekle

Auditors of Public Accounts

State Capitol

210 Capitol Avenue

Hartford, Connecticut 06106-1559

Dear Mr. Johnston and Mr. Jaekle:

You have requested an opinion regarding the applicability of the Freedom of Information Act ["FOIA"], Conn. Gen. Stat. §1-7 et seq., to the Connecticut Student Loan Foundation ["CSLF"]. Specifically, the issue you raised is whether the CSLF is a public agency subject to the public records and meeting requirements of the FOIA.1 Our conclusion, after reviewing the applicable statutory and judicial authority, is that the CSLF is the functional equivalent of a public agency for the purpose of the FOIA and, therefore, subject to its provisions.

The FOIA requires that "[e]xcept as otherwise provided by any federal law or state statute all records maintained or kept on file by any public agency ... shall be public records and every person shall have the right to inspect such records ... or receive a copy of such records...." Conn. Gen. Stat. §1-19(a). The statute further provides that "[t]he meetings of all public agencies, except executive sessions ..., shall be open to the public." Conn. Gen. Stat. §1-21(a).

A public agency subject to the disclosure requirements of the FOIA includes "any department, institution, bureau, board, commission, authority or official of the state ..., including any committee of, or created by, any such office, subdivision, agency, department, institution, bureau, board, commission, authority or official...." Conn. Gen. Stat. §1-18a(a). That definition has been held to encompass an entity that constitutes the functional equivalent of a public agency. Connecticut Humane Society v. Freedom of Information Commission, 218 Conn. 757, 760 (1991), citing Board of Trustees of Woodstock Academy v. Freedom of Information Commission, 181 Conn. 544, 554-55 (1980).

Our Supreme Court has set forth the following criteria to determine whether an entity is the functional equivalent of a public agency: "(1) whether the entity performs a governmental function; (2) the level of governmental funding; (3) the extent of government involvement or regulation; and (4) whether the entity was created by the government." Id. These factors are applied on a case by case basis "to ensure that the general rule of disclosure underlying this state's FOIA is not undermined by nominal appellations which obscure functional realities." Id., citing Woodstock Academy, 181 Conn. at 554-56. "All relevant facts are to be considered cumulatively, with no single factor being essential or conclusive." Id.

In the leading case on this issue, the Supreme Court held that Woodstock Academy was a public agency within the meaning of the FOIA. Woodstock Academy, 181 Conn. at 553-555. The court applied the four-part "functional equivalent" test developed by the federal courts and found that the academy (1) performed a governmental function in operating a school for the inhabitants of the town of Woodstock and the vicinity, (2) received government funds in the form of tuition payments received by the boards of education of the local towns, (3) had its operations regulated by the state board of education and (4) was an entity created by statute to operate the academy. Id. The court so found despite the facts that Woodstock Academy is a private, non-stock corporation; receives contributions from a private endowment fund toward the annual maintenance of the school; and has all academy property and affairs managed and controlled by a privately elected board of trustees. Id. at 548, 549. In reaching its conclusion, the court noted that the FOIA's policy of liberal access to public records would necessarily be thwarted if 'public agencies' were given a narrow construction." Id. at 551.

Like Woodstock Academy, the CSLF meets each of the criteria of a public agency equivalent set forth by the Supreme Court. See id. at 554-56. The general statutes created the CSLF, set forth its governmental purpose, mandate its public funding, and regulate its authority. Accordingly, the CSLF is bound by the provisions of the FOIA. See Id.

The CSLF is "a nonprofit corporation," created by statute and charged with the purpose of "improv[ing] educational opportunity." Conn. Gen. Stat. §10a-201. The CSLF carries out this purpose by guaranteeing and receiving loans, lending funds to persons needing assistance in meeting post secondary education expenses, and providing appropriate administrative services. Conn. Gen. Stat. §10a-201. The CSLF performs a governmental function in carrying out this purpose sufficient to meet the first prong of the functional equivalency test.

Although the CSLF may accept contributions from corporations, associations and/or individuals, Conn. Gen. Stat. §10a-204(b) and §10a-208, its primary funding is governmental. See Conn. Gen. Stat. §§10a-204, 10a-213-215. Its loans are funded through state appropriations, Conn. Gen. Stat. §10a-204(b), and the issuance of state bonds. Conn. Gen. Stat. §§10a-213-10a-215. The state guarantees other payments. Conn. Gen. Stat. §10a-204.

The CSLF also has significant governmental involvement. It is specifically regulated by both state and federal statutes, see generally 20 U.S.C. §§1071-1087-2 and Conn. Gen. Stat. §§10a-201-215; its board of directors must include six members of the executive and legislative branches of government, Conn. Gen. Stat. §10a-203; and the board's powers, rules, and regulations are limited by federal statute. Conn. Gen. Stat. §§10a-204(a), 10a-204(f). Moreover, interest rates and loan terms are set by federal statutes, Conn. Gen. Stat. §§10a-205 and 206, and income limits are set by the state. Conn. Gen. Stat. §10a-204.

In conclusion, because the CSLF performs a government function, receives government funding, is regulated by the federal and state government, and was created by the legislature, it is an entity bound by the requirements of the FOIA, including the provisions controlling public records and meetings. This opinion, of course, should not be construed as subjecting the CSLF to disclosures beyond those required by the FOIA or as precluding the CSLF from claiming exemptions available under the FOIA or otherwise provided by any federal law or state statute. See, e.g., Conn. Gen. Stat. §1-19(b)(exempt records) and 20 U.S.C. §1099 (exemption from state disclosure requirements for loans made, insured, or guaranteed pursuant to Title IV of the Higher Education Act of 1965).

Very truly yours,

Richard Blumenthal

Attorney General

Linsley J. Barbato

Assistant Attorney General

1 This opinion is limited to the issue of whether the CSLF is the functional equivalent of a public agency for the purposes of the FOIA only. It expresses no opinion as to whether the CSLF could be considered a public agency for any other purpose.