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         627.3518Citizens 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.