Bill Text: FL S1320 | 2014 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public Records/Office of Financial Regulation

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Passed) 2014-06-13 - Chapter No. 2014-102, companion bill(s) passed, see CS/SB 1238 (Ch. 2014-97) [S1320 Detail]

Download: Florida-2014-S1320-Comm_Sub.html

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       Florida Senate - 2014                             CS for SB 1320
       
       
        
       By the Committee on Banking and Insurance; and Senator Richter
       
       
       
       
       
       597-03208A-14                                         20141320c1
    1                        A bill to be entitled                      
    2         An act relating to public records; creating s.
    3         662.148, F.S.; providing an exemption from public
    4         records requirements for certain information held by
    5         the Office of Financial Regulation relating to a
    6         family trust company, licensed family trust company,
    7         or foreign licensed family trust company; providing
    8         definitions; providing for the authorized release of
    9         certain information by the office; authorizing the
   10         publication of certain information; providing a
   11         penalty; providing for future legislative review and
   12         repeal of the exemption; amending s. 662.147, F.S.;
   13         providing for additional authorized release of certain
   14         information by the office; providing for production of
   15         certain confidential records pursuant to legislative
   16         subpoenas; amending s. 662.146, F.S.; providing for
   17         production of certain confidential records pursuant to
   18         legislative subpoenas; providing a statement of public
   19         necessity; providing a contingent effective date.
   20          
   21  Be It Enacted by the Legislature of the State of Florida:
   22  
   23         Section 1. Section 662.148, Florida Statutes, is created
   24  and assigned to part IV of chapter 662, Florida Statutes, as
   25  created by SB 1238, 2014 Regular Session, to read:
   26         662.148 Public records exemption; records relating to
   27  family trust companies, licensed family trust companies, and
   28  foreign licensed family trust companies.—
   29         (1) PUBLIC RECORDS EXEMPTION.—The following information
   30  held by the office is confidential and exempt from s. 119.07(1)
   31  and s. 24(a), Art. I of the State Constitution:
   32         (a) Records relating to a registration, an application, or
   33  an annual certification of a family trust company, licensed
   34  family trust company, or foreign licensed family trust company.
   35         (b) Records relating to an examination of a family trust
   36  company, licensed family trust company, or foreign licensed
   37  family trust company.
   38         (c) Reports of examinations, operations, or conditions of a
   39  family trust company, licensed family trust company, or foreign
   40  licensed family trust company, including working papers.
   41         (d) Any portion of a list of names of the shareholders or
   42  members of a family trust company, licensed family trust
   43  company, or foreign licensed family trust company.
   44         (e) Information received by the office from a person from
   45  another state or nation or the Federal Government which is
   46  otherwise confidential or exempt pursuant to the laws of that
   47  state or nation or pursuant to federal law.
   48         (f) An emergency cease and desist order under s. 662.143
   49  until the emergency order is made permanent unless the office
   50  finds that such confidentiality will result in substantial risk
   51  of financial loss to the public.
   52         (2) DEFINITIONS.—As used in this section, the term:
   53         (a) “Reports of examinations, operations, or conditions”
   54  means records submitted to or prepared by the office as part of
   55  the office’s duties performed pursuant to s. 655.012 or s.
   56  655.045(1).
   57         (b) “Working papers” means the records of the procedure
   58  followed, the tests performed, the information obtained, and the
   59  conclusions reached in an examination under s. 655.032 or s.
   60  655.045. The term also includes books and records.
   61         (3) AUTHORIZED RELEASE OF CONFIDENTIAL AND EXEMPT
   62  INFORMATION.—Information made confidential and exempt under
   63  subsection (1) may be disclosed by the office to:
   64         (a) The authorized representative or representatives of the
   65  family trust company, licensed family trust company, or foreign
   66  licensed family trust company under examination. The authorized
   67  representative or representatives shall be identified in a
   68  resolution or by written consent of the board of directors, if
   69  the trust company is a corporation, or of the managers, if the
   70  trust company is a limited liability company.
   71         (b) A fidelity insurance company, upon written consent of
   72  the trust company’s board of directors, if a corporation, or its
   73  managers, if a limited liability company.
   74         (c) An independent auditor, upon written consent of the
   75  trust company’s board of directors, if a corporation, or its
   76  managers, if a limited liability company.
   77         (d) A liquidator, receiver, or conservator for a family
   78  trust company, licensed family trust company, or foreign
   79  licensed family trust company in the event of the appointment of
   80  the liquidator, receiver, or conservator. However, any portion
   81  of the information which discloses the identity of a bondholder,
   82  customer, family member, member, or stockholder must be redacted
   83  by the office before the release of such portion to the
   84  liquidator, receiver, or conservator.
   85         (e) Any other state, federal, or foreign agency responsible
   86  for the regulation or supervision of family trust companies,
   87  licensed family trust companies, or foreign licensed family
   88  trust companies.
   89         (f) A law enforcement agency in the furtherance of the
   90  agency’s official duties and responsibilities.
   91         (4) PUBLICATION OF INFORMATION.—This section does not
   92  prevent or restrict the publication of:
   93         (a) A report required by federal law.
   94         (b) The name of the family trust company, licensed family
   95  trust company, or foreign licensed family trust company and the
   96  name and address of the registered agent of that company.
   97         (5) PENALTY.—A person who willfully discloses information
   98  made confidential and exempt by this section commits a felony of
   99  the third degree, punishable as provided in s. 775.082, s.
  100  775.083, or s. 775.084.
  101         (6) OPEN GOVERNMENT SUNSET REVIEW.—This section is subject
  102  to the Open Government Sunset Review Act in accordance with s.
  103  119.15 and shall stand repealed on October 2, 2019, unless
  104  reviewed and saved from repeal through reenactment by the
  105  Legislature.
  106         Section 2. Subsections (1) through (4) of section 662.147,
  107  Florida Statutes, as created by SB 1238, 2014 Regular Session,
  108  are renumbered as subsections (3) through (6), respectively, and
  109  new subsections (1) and (2) are added to that section, to read:
  110         662.147 Records relating to the office examination; limited
  111  restrictions on public access.—
  112         (1) The public records exemptions contained in s. 662.148
  113  do not prevent or restrict the office from:
  114         (a) Furnishing records or information to any other state,
  115  federal, or foreign agency responsible for the regulation or
  116  supervision of family trust companies, licensed family trust
  117  companies, or foreign licensed family trust companies.
  118         (b) Reporting any suspected criminal activity, with
  119  supporting documents and information, to appropriate law
  120  enforcement and prosecutorial agencies.
  121         (2) Confidential records and information furnished pursuant
  122  to a legislative subpoena shall be kept confidential by the
  123  legislative body or committee that received the records or
  124  information, except in a case involving the investigation of
  125  charges against a public official subject to impeachment or
  126  removal, in which case disclosure of the information shall be
  127  only to the extent necessary as determined by the legislative
  128  body or committee.
  129         Section 3. Paragraphs (d), (e), and (f) of subsection (1)
  130  of section 662.146, Florida Statutes, as created by SB 1238,
  131  2014 Regular Session, are redesignated as paragraphs (e), (f),
  132  and (g), respectively, and a new paragraph (d) is added to that
  133  subsection, to read:
  134         662.146 Confidentiality of books and records.—
  135         (1) The books and records of a family trust company,
  136  licensed family trust company, and foreign licensed family trust
  137  company are confidential and shall be made available for
  138  inspection and examination only:
  139         (d) As compelled by legislative subpoena as provided by
  140  law, in which case s. 662.147 applies;
  141         Section 4. The Legislature finds that it is a public
  142  necessity that records held by the Office of Financial
  143  Regulation which pertain to a family trust company, licensed
  144  family trust company, or foreign licensed family trust company
  145  relating to registration or certification; an examination;
  146  reports of examinations, operations, or conditions, including
  147  working papers; any portion of a list of the names of
  148  shareholders or members; information received by the Office of
  149  Financial Regulation from a person from another state or nation
  150  or the Federal Government which is otherwise confidential or
  151  exempt pursuant to the laws of that jurisdiction; or an
  152  emergency cease and desist order be made confidential and exempt
  153  from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of
  154  the State Constitution. This exemption is necessary because:
  155         (1) No public interest is served by granting public access
  156  to family trust company records, and no protection is afforded
  157  to the public or the state by allowing public access to private
  158  financial records. Additionally, a family trust company is
  159  prohibited from serving or marketing its services to the general
  160  public in any way; therefore, no public interests are involved.
  161         (2) Families with a high net worth are frequently the
  162  targets of criminal predators seeking access to their assets. It
  163  is important that the exposure of such families to threats of
  164  extortion, kidnapping, and other crimes not be increased.
  165  Placing family business records and methodologies in the public
  166  domain would increase the security risk that a family could
  167  become the target of criminal activity.
  168         (3) Family trust companies often provide a consolidated
  169  structure for the ownership of an operating business owned by
  170  multiple family members. Placing those private business
  171  operations and methods in the public domain could jeopardize
  172  their business assets, methodologies, and practices.
  173         Section 5. This act shall take effect on the same date that
  174  SB 1238 or similar legislation takes effect, if such legislation
  175  is adopted in the same legislative session or an extension
  176  thereof and becomes law.