Title: Public Records

Summary: Creates exemption from public records requirements for proprietary business information submitted to OIR; defines "proprietary business information"; provides exceptions; provides for future legislative review & repeal; provides statement of public necessity; provides contingent effective date.

Full Text:
An act relating to public records; creating s. 624.4212, F.S.; creating an exemption from public records requirements for proprietary business information submitted to the Office of Insurance Regulation; defining the term "proprietary business information"; providing exceptions; providing for future legislative review and repeal; providing a statement of public necessity; providing a contingent effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 624.4212, Florida Statutes, is created to read: 624.4212 Confidentiality of proprietary business information.-Proprietary business information held by the Office of Insurance Regulation in accordance with its statutory duties with respect to insurer solvency is confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution. (1) As used in this section, the term "proprietary business information" means information, regardless of form or characteristics, that is owned or controlled by an insurer, or a person or affiliated person who seeks acquisition of controlling stock in a domestic stock insurer or controlling company, and that: (a) Is intended to be and is treated by the insurer or the person as private in that the disclosure of the information CS/CS/HB 2013 would cause harm to the insurer, the person, or the company's business operations and has not been disclosed unless disclosed pursuant to a statutory requirement, an order of a court or administrative body, or a private agreement that provides that the information will not be released to the public; (b) Is not otherwise readily ascertainable or publicly available by proper means by ot her persons from another source in the same configuration as requested by the office; and (c) Includes, but is not limited to: 1. Trade secrets as defined in s. 688.002 that comply with s. 624.4213. 2. Information relating to competitive interests th edisclosure of which would impair the competitive business of the provider of the information. 3. The source, nature, and amount of the consideration used or to be used in carrying out a merger or other acquisition of control in the ordinary course of business, including the identity of the lender, if the person filing a statement regarding consideration so requests. 4. Information relating to bids or other contractual data the disclosure of which would impair the efforts of the insurer or its affiliat es to contract for goods or services on favorable terms. 5. Internal auditing controls and reports of internal auditors. 6. The actuarial opinion summary required under s. 624.424(1)(b) and the documents, materials, and other information related theret o. CS/CS/HB 2013 7. A notice filed with the office by the person or affiliated person who seeks to divest controlling stock in an insurer pursuant to s. 628.461. 8. The filings required by s. 628.801 and all documents, materials, and other information related theret o. 9. The enterprise risk report required by ss. 628.461(3) and 628.801 and the documents, materials, and other information related to the enterprise risk report. 10. Information provided to or obtained by the office pursuant to participation in a supervisory college established under s. 628.805. 11. Information received from another governmental entity or the National Association of Insurance Commissioners that is confidential or exempt if held by that entity for us eby the office in the performance of its duties. (2) The office may disclose confidential and exempt proprietary business information: (a) If the insurer to which it pertains gives prior written consent; (b) Pursuant to a court order; (c) To the A merican Academy of Actuaries upon a request stating that the information is for the purpose of professional disciplinary proceedings and specifying procedures satisfactory to the office for preserving the confidentiality of the information; (d) To other states, federal and international agencies, the National Association of Insurance Commissioners and its affiliates and subsidiaries, and state, federal, and CS/CS/HB 2013 international law enforcement authorities, including members of a supervisory college described in s. 628.805, if the recipient agrees in writing to maintain the confidential and exempt status of the document, material, or other information and has verified in writing its legal authority to maintain such confidentiality; or (e) For the purpose of aggr egating information on an industrywide basis and disclosing the information to the public only if the specific identities of the insurers, or persons or affiliated persons, are not revealed. (3) This section is subject to the Open Government Sunset Review Act in accordance with s. 119.15 and shall stand repealed on October 2, 2018, unless reviewed and saved from repeal through reenactment by the Legislature. Section 2. The Legislature finds that it is a public necessity that proprietary business infor mation that is provided to the Office of Insurance Regulation by an insurer or acquiring party pursuant to the requirements of the Florida Insurance Code or the Holding Company System Regulatory Act of the National Association of Insurance Commissioners in order for the office to conduct its regulatory duties with respect to insurer solvency be made confidential and exempt from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of the State Constitution. The disclosure of such information could injure an insurer in the marketplace by providing its competitors with detailed insight into the financial status and strategic plans of the insurer, thereby diminishing the advantage that the insurer maintains over competitors that do not possess such CS/CS/HB 2013 informatio n. Without this exemption, an insurer or acquiring party might refrain from providing accurate and unbiased data, thus impairing the office's ability to accurately evaluate the propriety of proposed acquisitions in the state and the financial condition of insurers and their affiliates. Proprietary business information derives actual or potential independent economic value from not being generally known to, and not being readily ascertainable by proper means by, other persons who can derive economic value fr om its disclosure or use. The office, in performing its duties and responsibilities, may need to obtain proprietary business information from insurers and regulated entities. Without an exemption from public records requirements for proprietary business in formation provided to the office, such information becomes a public record when received and must be divulged upon request. Divulgence of proprietary business information under the public records law would destroy the value of that property to the propriet or, causing a financial loss not only to the proprietor but also to the residents of this state due to the loss of reliable financial data necessary for the accurate evaluation of proposed acquisitions. Release of proprietary business information would give business competitors an unfair advantage and weaken the position in the marketplace of the proprietor who owns or controls the business information. The harm to insurers in the marketplace and to the effective administration of acquisitions caused by the public disclosure of such information far outweighs the public benefits derived from its release. Section 3. This act shall take effect October 1, 2013,if CS/CS/HB 2013 HB or similar legislation is adopted in the same legislative session or an extension ther eof and becomes law.