Bill Text: FL S0834 | 2013 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Public Records/Proprietary Business Information/Office of Insurance Regulation
Spectrum: Bipartisan Bill
Status: (Failed) 2013-05-03 - Died in Messages [S0834 Detail]
Download: Florida-2013-S0834-Introduced.html
Bill Title: Public Records/Proprietary Business Information/Office of Insurance Regulation
Spectrum: Bipartisan Bill
Status: (Failed) 2013-05-03 - Died in Messages [S0834 Detail]
Download: Florida-2013-S0834-Introduced.html
Florida Senate - 2013 SB 834 By Senator Simmons 10-00918-13 2013834__ 1 A bill to be entitled 2 An act relating to public records; creating s. 3 624.4212, F.S.; creating an exemption from public 4 records requirements for proprietary business 5 information submitted to the Office of Insurance 6 Regulation; defining the term “proprietary business 7 information”; providing exceptions; providing for 8 future legislative review and repeal; providing a 9 statement of public necessity; providing a contingent 10 effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Section 624.4212, Florida Statutes, is created 15 to read: 16 624.4212 Confidentiality of proprietary business 17 information.—Proprietary business information held by the Office 18 of Insurance Regulation in accordance with its statutory duties 19 with respect to insurer solvency is confidential and exempt from 20 s. 119.07(1) and s. 24(a), Art. I of the State Constitution. 21 (1) As used in this section, the term “proprietary business 22 information” means information, regardless of form or 23 characteristics, which is owned or controlled by an insurer, or 24 a person or affiliated person who seeks acquisition of 25 controlling stock in a domestic stock insurer or controlling 26 company, and which: 27 (a) Is intended to be and is treated by the insurer or the 28 person as private in that the disclosure of the information 29 would cause harm to the insurer, the person, or the company’s 30 business operations and has not been disclosed unless disclosed 31 pursuant to a statutory requirement, an order of a court or 32 administrative body, or a private agreement that provides that 33 the information will not be released to the public; 34 (b) Is not otherwise readily ascertainable or publicly 35 available by proper means by other persons from another source 36 in the same configuration as requested by the office; and 37 (c) Includes, but is not limited to: 38 1. Trade secrets. 39 2. Information relating to competitive interests, the 40 disclosure of which would impair the competitive business of the 41 provider of the information. 42 3. The source, nature, and amount of the consideration used 43 or to be used in carrying out a merger or other acquisition of 44 control in the ordinary course of business, including the 45 identity of the lender, if the person filing a statement 46 regarding consideration so requests. 47 4. Information relating to bids or other contractual data, 48 the disclosure of which would impair the efforts of the insurer 49 or its affiliates to contract for goods or services on favorable 50 terms. 51 5. Internal auditing controls and reports of internal 52 auditors. 53 (2) Proprietary business information may be found in: 54 1. The actuarial opinion summary required under s. 55 624.424(1)(b); 56 2. Information filed by the person or affiliated person who 57 seeks to divest or acquire controlling stock in an insurer 58 pursuant to s. 628.461; 59 3. The enterprise risk report required under s. 628.801; 60 4. Information obtained by the office pursuant to 61 participation in a supervisory college established under s. 62 628.805; or 63 5. Information received from another governmental entity or 64 the National Association of Insurance Commissioners which is 65 confidential or exempt if held by that entity, for use by the 66 office in the performance of its duties. 67 (3) The office may disclose confidential and exempt 68 proprietary business information: 69 (a) If the insurer to which it pertains gives prior written 70 consent; 71 (b) Pursuant to a court order; 72 (c) To the American Academy of Actuaries upon a request 73 stating that the information is for the purpose of professional 74 disciplinary proceedings and specifying procedures satisfactory 75 to the office for preserving the confidentiality of the 76 information; 77 (d) To other states, federal and international agencies, 78 the National Association of Insurance Commissioners and its 79 affiliates and subsidiaries, and state, federal, and 80 international law enforcement authorities, including members of 81 a supervisory college described in s. 628.805 if the recipient 82 agrees in writing to maintain the confidential and exempt status 83 of the document, material, or other information, and has 84 verified in writing its legal authority to maintain such 85 confidentiality; or 86 (e) For the purpose of aggregating information on an 87 industrywide basis and disclosing the information to the public 88 only if the specific identities of the insurers, or persons or 89 affiliated persons, are not revealed. 90 (4) This section is subject to the Open Government Sunset 91 Review Act of 1995 in accordance with s. 119.15 and shall stand 92 repealed on October 2, 2018, unless reviewed and saved from 93 repeal through reenactment by the Legislature. 94 Section 2. The Legislature finds that it is a public 95 necessity that proprietary business information that is provided 96 to the Office of Insurance Regulation by an insurer or acquiring 97 party pursuant to the requirements of the Florida Insurance Code 98 or the Holding Company System Regulatory Act of the National 99 Association of Insurance Commissioners in order for the office 100 to conduct its regulatory duties with respect to insurer 101 solvency, be made confidential and exempt from s. 119.07(1), 102 Florida Statutes, and s. 24(a), Article I of the State 103 Constitution. The disclosure of such information could injure an 104 insurer in the marketplace by providing its competitors with 105 detailed insight into the financial status and strategic plans 106 of the insurer, thereby diminishing the advantage that the 107 insurer maintains over competitors that do not possess such 108 information. Without this exemption, an insurer or acquiring 109 party might refrain from providing accurate and unbiased data, 110 thus impairing the office’s ability to accurately evaluate the 111 propriety of proposed acquisitions in the state, and the 112 financial condition of insurers and their affiliates. 113 Proprietary business information derives actual or potential 114 independent economic value from not being generally known to, 115 and not being readily ascertainable by proper means by, other 116 persons who can derive economic value from its disclosure or 117 use. The office, in performing its duties and responsibilities, 118 may need to obtain proprietary business information from 119 insurers and regulated entities. Without an exemption from 120 public records requirements for proprietary business information 121 provided to the office, such information becomes a public record 122 when received and must be divulged upon request. Divulgence of 123 proprietary business information under the public records law 124 would destroy the value of that property to the proprietor, 125 causing a financial loss not only to the proprietor but also to 126 the residents of this state due to the loss of reliable 127 financial data necessary for the accurate evaluation of proposed 128 acquisitions. Release of proprietary business information would 129 give business competitors an unfair advantage and weaken the 130 position in the marketplace of the proprietor who owns or 131 controls the business information. The harm to insurers in the 132 marketplace and to the effective administration of acquisitions 133 caused by the public disclosure of such information far 134 outweighs the public benefits derived from its release. 135 Section 3. This act shall take effect October 1, 2013, if 136 SB ______ or similar legislation is adopted in the same 137 legislative session or an extension thereof and becomes a law.