Bill Text: FL S0834 | 2013 | Regular Session | Comm Sub

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-Comm_Sub.html

---

       Florida Senate - 2013                              CS for SB 834
       
       
       
       By the Committee on Banking and Insurance; and Senator Simmons
       
       
       
       
       597-03447-13                                           2013834c1
    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 as defined in s. 688.002 which comply with
   39  s. 624.4213.
   40         2. Information relating to competitive interests the
   41  disclosure of which would impair the competitive business of the
   42  provider of the information.
   43         3. The source, nature, and amount of the consideration used
   44  or to be used in carrying out a merger or other acquisition of
   45  control in the ordinary course of business, including the
   46  identity of the lender, if the person filing a statement
   47  regarding consideration so requests.
   48         4. Information relating to bids or other contractual data
   49  the disclosure of which would impair the efforts of the insurer
   50  or its affiliates to contract for goods or services on favorable
   51  terms.
   52         5. Internal auditing controls and reports of internal
   53  auditors.
   54         6. The actuarial opinion summary required under s.
   55  624.424(1)(b) and the documents, materials, and other
   56  information related thereto.
   57         7. A notice filed with the office by the person or
   58  affiliated person who seeks to divest controlling stock in an
   59  insurer pursuant to s. 628.461.
   60         8. The filings required under s. 628.801 and all documents,
   61  materials, and other information related thereto.
   62         9. The enterprise risk report required under ss. 628.461(3)
   63  and 628.801 and the documents, materials, and other information
   64  related to the enterprise risk report.
   65         10. Information provided to or obtained by the office
   66  pursuant to participation in a supervisory college established
   67  under s. 628.805.
   68         11. Information received from another governmental entity
   69  or the National Association of Insurance Commissioners which is
   70  confidential or exempt if held by that entity for use by the
   71  office in the office’s performance of its duties.
   72         (2) The office may disclose confidential and exempt
   73  proprietary business information:
   74         (a) If the insurer to which it pertains gives prior written
   75  consent;
   76         (b) Pursuant to a court order;
   77         (c) To the American Academy of Actuaries upon a request
   78  stating that the information is for the purpose of professional
   79  disciplinary proceedings and specifying procedures satisfactory
   80  to the office for preserving the confidentiality of the
   81  information;
   82         (d) To other states, federal and international agencies,
   83  the National Association of Insurance Commissioners and its
   84  affiliates and subsidiaries, and state, federal, and
   85  international law enforcement authorities, including members of
   86  a supervisory college described in s. 628.805 if the recipient
   87  agrees in writing to maintain the confidential and exempt status
   88  of the document, material, or other information, and has
   89  verified in writing its legal authority to maintain such
   90  confidentiality; or
   91         (e) For the purpose of aggregating information on an
   92  industrywide basis and disclosing the information to the public
   93  only if the specific identities of the insurers, or persons or
   94  affiliated persons, are not revealed.
   95         (3) This section is subject to the Open Government Sunset
   96  Review Act in accordance with s. 119.15 and shall stand repealed
   97  on October 2, 2018, unless reviewed and saved from repeal
   98  through reenactment by the Legislature.
   99         Section 2. The Legislature finds that it is a public
  100  necessity that proprietary business information that is provided
  101  to the Office of Insurance Regulation by an insurer or acquiring
  102  party pursuant to the requirements of the Florida Insurance Code
  103  or the Holding Company System Regulatory Act of the National
  104  Association of Insurance Commissioners in order for the office
  105  to conduct its regulatory duties with respect to insurer
  106  solvency, be made confidential and exempt from s. 119.07(1),
  107  Florida Statutes, and s. 24(a), Article I of the State
  108  Constitution. The disclosure of such information could injure an
  109  insurer in the marketplace by providing its competitors with
  110  detailed insight into the financial status and strategic plans
  111  of the insurer, thereby diminishing the advantage that the
  112  insurer maintains over competitors that do not possess such
  113  information. Without this exemption, an insurer or acquiring
  114  party might refrain from providing accurate and unbiased data,
  115  thus impairing the office’s ability to accurately evaluate the
  116  propriety of proposed acquisitions in the state, and the
  117  financial condition of insurers and their affiliates.
  118  Proprietary business information derives actual or potential
  119  independent economic value from not being generally known to,
  120  and not being readily ascertainable by proper means by, other
  121  persons who can derive economic value from its disclosure or
  122  use. The office, in performing its duties and responsibilities,
  123  may need to obtain proprietary business information from
  124  insurers and regulated entities. Without an exemption from
  125  public records requirements for proprietary business information
  126  provided to the office, such information becomes a public record
  127  when received and must be divulged upon request. Divulgence of
  128  proprietary business information under the public records law
  129  would destroy the value of that property to the proprietor,
  130  causing a financial loss not only to the proprietor but also to
  131  the residents of this state due to the loss of reliable
  132  financial data necessary for the accurate evaluation of proposed
  133  acquisitions. Release of proprietary business information would
  134  give business competitors an unfair advantage and weaken the
  135  position in the marketplace of the proprietor who owns or
  136  controls the business information. The harm to insurers in the
  137  marketplace and to the effective administration of acquisitions
  138  caused by the public disclosure of such information far
  139  outweighs the public benefits derived from its release.
  140         Section 3. This act shall take effect October 1, 2013, if
  141  SB 836 or similar legislation is adopted in the same legislative
  142  session or an extension thereof and becomes a law.