SB 1850 First Engrossed 20131850e1 1 A bill to be entitled 2 An act relating to public records; amending s. 3 627.3518, F.S.; providing an exemption from public 4 records requirements for all proprietary business 5 information submitted by an insurer to the Citizens 6 Property Insurance Corporation’s clearinghouse; 7 providing a definition; providing exemption; providing 8 for future review and repeal; providing a statement of 9 public necessity; providing a contingent effective 10 date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Subsection (10) is added to section 627.3518, 15 Florida Statutes, as created by SB 1770 or similar legislation, 16 2013 Regular Session, to read: 17 627.3518 Citizens Property Insurance Corporation 18 clearinghouse.— 19 (10) Proprietary business information provided to the 20 corporation’s clearinghouse by insurers with respect to 21 identifying and selecting risks for an offer of coverage is 22 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I 23 of the State Constitution. 24 (a) As used in this subsection, the term “proprietary 25 business information” means information, regardless of form or 26 characteristics, which is owned or controlled by an insurer and: 27 1. Is identified by the insurer as proprietary business 28 information and is intended to be and is treated by the insurer 29 as private in that the disclosure of the information would cause 30 harm to the insurer, an individual, or the company’s business 31 operations and has not been disclosed unless disclosed pursuant 32 to a statutory requirement, an order of a court or 33 administrative body, or a private agreement that provides that 34 the information will not be released to the public; 35 2. Is not otherwise readily ascertainable or publicly 36 available by proper means by other persons from another source 37 in the same configuration as provided to the clearinghouse; and 38 3. Includes, but is not limited to: 39 a. Trade secrets. 40 b. Information relating to competitive interests, the 41 disclosure of which would impair the competitive business of the 42 provider of the information. 43 44 Proprietary business information may be found in underwriting 45 criteria or instructions which are used to identify and select 46 risks through the program for an offer of coverage and are 47 shared with the clearinghouse to facilitate the shopping of 48 risks with the insurer. 49 (b) The clearinghouse may disclose confidential and exempt 50 proprietary business information: 51 1. If the insurer to which it pertains gives prior written 52 consent; 53 2. Pursuant to a court order; or 54 3. To another state agency in this or another state or to a 55 federal agency if the recipient agrees in writing to maintain 56 the confidential and exempt status of the document, material, or 57 other information and has verified in writing its legal 58 authority to maintain such confidentiality. 59 (c) This subsection is subject to the Open Government 60 Sunset Review Act in accordance with s. 119.15 and shall stand 61 repealed on October 2, 2018, unless reviewed and saved from 62 repeal through reenactment by the Legislature. 63 Section 2. The Legislature finds that it is a public 64 necessity that all proprietary business information provided by 65 an insurer to Citizens Property Insurance Corporation’s 66 clearinghouse which is used to identify and select risks from 67 the clearinghouse be made confidential and exempt from s. 68 119.07(1), Florida Statutes, and s. 24(a), Article I of the 69 State Constitution. The diversion program will facilitate 70 obtaining offers of coverage from authorized insurers for new 71 applicants for insurance coverage with the corporation and for 72 policyholders seeking to renew existing insurance coverage with 73 the corporation. Obtaining offers of coverage from authorized 74 insurers through the clearinghouse will provide more choices for 75 consumers and reduce the corporation’s exposure and potential 76 for imposing assessments on its policyholders and policyholders 77 in the private market. In order for the program to efficiently 78 determine whether there are authorized insurers interested in 79 making an offer of coverage for a particular risk, a substantial 80 amount of detailed data from participating insurers must be 81 provided to the program. Public disclosure of the detailed data 82 could result in a substantial chilling effect on insurer 83 participation in the program and thereby undermine the program’s 84 success. Therefore, the Legislature declares that it is a public 85 necessity that all proprietary business information provided by 86 an insurer to Citizens Property Insurance Corporation’s 87 clearinghouse which is used to identify and select risks from 88 the clearinghouse be made confidential and exempt from public 89 record requirements. 90 Section 3. This act shall take effect on the same date that 91 SB 1770 or similar legislation creating s. 627.3518, Florida 92 Statutes, the Citizen’s Property Insurance Corporation 93 clearinghouse, takes effect, if such legislation is adopted in 94 the same legislative session or an extension thereof and becomes 95 law.