Florida Senate - 2014 SB 1240 By Senator Margolis 35-01326-14 20141240__ 1 A bill to be entitled 2 An act relating to public records; amending s. 3 119.071, F.S.; revising an exemption from public 4 records requirements for a financial statement that a 5 governmental entity or agency requires a person to 6 submit in order to respond to a competitive 7 solicitation or as a term or condition of a contract; 8 providing exceptions; providing for future review and 9 repeal of the exemption under the Open Government 10 Sunset Review Act; providing a statement of public 11 necessity; providing an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Paragraph (c) of subsection (1) of section 16 119.071, Florida Statutes, is amended to read: 17 119.071 General exemptions from inspection or copying of 18 public records.— 19 (1) AGENCY ADMINISTRATION.— 20 (c) 1. AAnyfinancial statement reflecting a person’s 21 financial activities, which may include, but is not limited to, 22 a balance sheet, income statement, or cash flow statement that a 23 governmental entity oranagency requires a personprospective24bidderto submit whenin order to prequalify for bidding or for25 responding to a competitive solicitation or other public 26 procurement, or as a term or condition of a contract,proposal27for a road or any other public works projectis exempt from s. 28 119.07(1) and s. 24(a), Art. I of the State Constitution. This 29 exemption does not apply to a financial statement submitted by a 30 publicly traded corporation or nonprofit organization. 31 2. This paragraph is subject to the Open Government Sunset 32 Review Act in accordance with s. 119.15 and shall stand repealed 33 on October 2, 2019, unless reviewed and saved from repeal 34 through reenactment by the Legislature. 35 Section 2. The Legislature finds that it is a public 36 necessity that a financial statement submitted by a person in 37 order to qualify for or reply to a competitive solicitation, or 38 submitted as a term or condition of a contract, be made exempt 39 from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of 40 the State Constitution. Many solicitations to provide products 41 or services to governmental entities in the state require 42 persons to submit a financial statement in order to qualify for 43 bidding or to enter into a subsequent contract. However, many 44 innovative, qualified, responsible, and privately held companies 45 keep their financial statements confidential and take extensive 46 measures to prevent their disclosure. When a solicitation 47 requires disclosure of a financial statement that is potentially 48 subject to disclosure to the general public, these companies 49 simply choose not to submit a proposal rather than risk 50 disclosure. The result is a limited pool of proposers. The 51 Legislature finds that holding this material exempt serves the 52 following purposes: 53 (1) Preservation of the government’s ability to obtain and 54 examine the financial statement of a person seeking to conduct 55 business with a governmental entity, when relevant, to prove 56 that the person has the capability of delivering products or 57 services as contemplated in the solicitation. 58 (2) Protection for persons required to furnish financial 59 statements to the government by safeguarding them from the 60 competitive disadvantage, or potential for fraudulent credit 61 theft, that could result from disclosure. 62 (3) Assurance that the public receives the benefit of the 63 largest possible pool of qualified, innovative, and responsible 64 persons, including those who hold their financial statements 65 confidential. 66 (4) Alignment of Florida law with federal law and the laws 67 of other states that recognize the need for governmental 68 entities to safeguard financial statements requested of persons 69 responding to competitive solicitations. 70 Section 3. This act shall take effect July 1, 2014.