Florida Senate - 2013 CS for SB 714 By the Committee on Communications, Energy, and Public Utilities; and Senator Simmons 579-01973-13 2013714c1 1 A bill to be entitled 2 An act relating to public records; amending s. 3 119.0713, F.S.; providing an exemption from public 4 records requirements for specified proprietary 5 confidential business information held by an electric 6 utility that is subject to ch. 119, F.S., in 7 conjunction with a due diligence review of an electric 8 project or a project to improve the delivery, cost, or 9 diversification of fuel or renewable energy resources; 10 providing for the retention of such information for a 11 specified time; providing for future review and repeal 12 of the exemption; providing a statement of public 13 necessity; providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Subsection (4) is added to section 119.0713, 18 Florida Statutes, to read: 19 119.0713 Local government agency exemptions from inspection 20 or copying of public records.— 21 (4)(a) Proprietary confidential business information means 22 information, regardless of form or characteristics, which is 23 held by an electric utility that is subject to chapter 119, is 24 intended to be and is treated by the entity that provided the 25 information to the electric utility as private in that the 26 disclosure of the information would cause harm to the providing 27 entity or its business operations, and has not been disclosed 28 unless disclosed pursuant to a statutory provision, an order of 29 a court or administrative body, or private agreement that 30 provides that the information will not be released to the 31 public. Proprietary confidential business information includes, 32 but is not limited to: 33 1. Trade secrets. 34 2. Internal auditing controls and reports of internal 35 auditors. 36 3. Security measures, systems, or procedures. 37 4. Information concerning bids or other contractual data, 38 the disclosure of which would impair the efforts of the electric 39 utility to contract for goods or services on favorable terms. 40 5. Information relating to competitive interests, the 41 disclosure of which would impair the competitive business of the 42 provider of the information. 43 (b) Proprietary confidential business information held by 44 an electric utility that is subject to chapter 119 in 45 conjunction with a due diligence review of an electric project 46 as defined in s. 163.01(3)(d) or a project to improve the 47 delivery, cost, or diversification of fuel or renewable energy 48 resources is confidential and exempt from s. 119.07(1) and s. 49 24(a), Art. I of the State Constitution. 50 (c) All proprietary confidential business information 51 described in paragraph (b) shall be retained for one year after 52 the due diligence review has been completed and the electric 53 utility has decided whether or not to participate in the 54 project. 55 (d) This subsection is subject to the Open Government 56 Sunset Review Act in accordance with s. 119.15, and shall stand 57 repealed on October 2, 2018, unless reviewed and saved from 58 repeal through reenactment by the Legislature. 59 Section 2. (1) The Legislature finds that it is a public 60 necessity that proprietary confidential business information 61 held by an electric utility that is subject to chapter 119, 62 Florida Statutes, in conjunction with a due diligence review of 63 an electric project as defined in s. 163.01(3)(d), Florida 64 Statutes, or a project to improve the delivery, cost, or 65 diversification of fuel or renewable energy resources be made 66 confidential and exempt from public records requirements. The 67 disclosure of such proprietary confidential business 68 information, such as trade secrets, internal auditing controls 69 and reports, security measures, systems, or procedures, or other 70 information relating to competitive interests, could injure the 71 provider in the marketplace by giving its competitors detailed 72 insights into its financial status and strategic plans, thereby 73 putting the provider at a competitive disadvantage. Without this 74 exemption, providers might be unwilling to enter into 75 discussions with the utility regarding the feasibility of future 76 contracting. This could, in turn, limit opportunities the 77 utility might otherwise have for finding cost-effective or 78 strategic solutions for providing electric service or improving 79 the delivery, cost, or diversification of fuel or renewable 80 energy. This would put public providers of electric utility 81 services at a competitive disadvantage by limiting their ability 82 to optimize services to their customers and adversely affecting 83 the customers of those utilities by depriving them of 84 opportunities for rate reductions or other improvements in 85 services. 86 (2) Proprietary confidential business information derives 87 actual or potential independent economic value from not being 88 generally known to, and not being readily ascertainable by 89 proper means by, other persons who can derive economic value 90 from its disclosure or use. A utility, in performing the 91 appropriate due diligence review of electric projects or 92 projects to improve the delivery, cost, or diversification of 93 fuel or renewable energy sources, may need to obtain proprietary 94 confidential business information. Without an exemption from 95 public records requirements for this information, it becomes a 96 public record when received by an electric utility and must be 97 disclosed upon request. Disclosure of any proprietary 98 confidential business information under the public records law 99 would destroy the value of that property and cause economic harm 100 not only to the entity or person providing the information, but 101 to the ratepayers through reduced competition for the provision 102 of vital electric utility services. 103 (3) In finding that the public records exemption created by 104 this act is a public necessity, the Legislature also finds that 105 the public and private harm in disclosing such proprietary 106 confidential business information significantly outweighs any 107 public benefit derived from disclosure of the information and 108 that the exemption created by this act will enhance the ability 109 of electric utilities to optimize their performance, thereby 110 benefiting the ratepayers. 111 Section 3. This act shall take effect July 1, 2013.