Former leaders of the U.S. Hispanic Chamber of Commerce are calling for the resignation of chairman David C. Lizárraga.
“He has taken control of the USHCC, he has eliminated elections and has a self-appointed board,” said Scott Flores of Denver, a former board member and vice chair of the USHCC board of directors. “They need to bring fresh leadership.”
The complaints come as the USHCC celebrates its 30th anniversary at its annual convention, which opened Wednesday night at the Colorado Convention Center in Denver.
Flores and other former USHCC board members and presidents are upset about a new process that allows for the appointment rather than the election of board members from the USHCC’s six regions.
They question the extension of Lizárraga’s stay in office as well as moves to combine the USHCC with the USHCC Foundation and to make the organization’s counsel part of the board. They are also seeking the resumption of board-member elections.
“It’s a membership organization, and it cannot represent regions when the communities have no voice in the process,” said Val Vargas, a former board member and founder of the Hispanic Chamber of Commerce of Minnesota.
The former USHCC leaders are seeking Lizárraga’s resignation as the chair, a position he assumed in 2004. The board has extended his term until 2010. The chair has traditionally served two one-year terms.
According to the USHCC, only Lizárraga or president Augustine Martinez are authorized to speak to the media, but neither was available. Lizárraga is also chairman of the Los Angeles nonprofit community development agency TELACU Millennium LCC.
Historically, regional representatives were chosen at a local level to run for an elected position to the board during the annual convention. Once elected, they voted for the chair and the vice chair. The system assured that there was a continuity of leadership and fresh leadership coming in, Flores said.
The USHCC’s last board-member elections took place at the annual convention in San Juan, Puerto Rico, in September 2007. Since then, the USHCC board of directors has appointed all new members to the board.
In 2008, members of the 200 chambers that the USHCC represents received a timeline for the process along with new criteria for board appointees.
Under those rules, letters of intent and supporting documentation for the nomination of board candidates have to be sent to USHCC legal counsel Melinda Guzman, whose appointment to the board has inspired criticism. In the past, the USHCC relied on independent counsel.
The counsel sends the documents to the executive committee for review. The committee conducts interviews and confirms recommendations to the board. The USHCC board confirms appointments or holds vacancies open.
Former board members said that by eliminating the annual elections of regional representatives to the USHCC board, the national chamber has created a condition where local chambers have no say in the decisions made by the 24-member board.
“When this administration took over, they emphasized the importance of inclusion, transparency and solidarity,” said former USHCC chair and president J.R. Gonzales. “Since then, the organization model has changed, and there is some concern and question as to why it was necessary to change the model of an election process to one of appointment.”
Vargas and seven other elected members of the board voted against attempts to change the bylaws, she said.
Ex-official fears clash of interests
The unification of the U.S. Hispanic Chamber of Commerce board of directors with that of the USHCC Foundation is an issue that troubles some former chamber board members.
In January 2008, both boards announced that they had approved governance changes to unite the boards. As a result, all USHCC board members now serve on the foundation’s board.
In a news release announcing the move, USHCC board chairman David C. Lizárraga said that the changes would empower both organizations to more effectively meet the needs of growing Hispanic businesses.
A former president and chief executive of the USHCC, George Herrera, said the new system of governance could cause financial conflicts of interest between the organizations. “This opens a Pandora’s box from the corporate governance perspective,” he said.
Earlier board dispute led to start of rival group
This is not the first time that regional chamber members have questioned the procedures of the board of directors as it relates to the election of board members.
In October 2002, the disqualification of two regional candidates for the position of chair, David C. Lizárraga and Ricardo E. Calderon, unleashed protests outside the annual convention in Los Angeles.
The protest of 130 Hispanic regional chambers did not stop the vote, and board members elected J.R. Gonzales as chairman of the USHCC board.
The dissenting chambers became the Coalition of Hispanic Chambers of Commerce for Fairness and Inclusion. Lizárraga emerged as the group’s leader. In an interview with Hispanic Business magazine at the time, he said the USHCC should not “rule from Washington, D.C.,” but needed to “recognize the importance of other regions.”
U.S. Hispanic Chamber of Commerce annual meeting
When: Wednesday through Saturday
Where: Colorado Convention Center
What: 4,000-5,000 attendees are expected for the event, which features speakers, workshops, a business expo with more than 200 exhibitors, and social gatherings.
Some of the speakers: Linda Alvarado, Latina Summit co-chair; Karen Mills, top executive at the U.S. Small Business Administration; Colorado Gov. Bill Ritter; U.S. Commerce Secretary Gary Locke; U.S. Treasurer Rosie Rios
Some of the events: Tribute to Latina Trail Blazers, 5:30 p.m. today at the Hyatt Regency Denver; small-business forum on health-insurance reform, 4:15 p.m. Friday at the Colorado Convention Center
