HOUSE AMENDMENT

                                                  Bill No. HB 2333

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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11  Representative(s) Melvin offered the following:

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13         Amendment 

14         On page 4, line 10 through page 5, line 13,

15  remove from the bill:  all of said lines

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17  and insert in lieu thereof:

18         Section 2.  The Legislature finds that it is a public

19  necessity that certain association records be held

20  confidential and exempt.  More particularly, it is a public

21  necessity that certain medical records of association

22  employees and employee assistance program participation

23  records be held confidential and exempt because such records

24  contain personal, sensitive information regarding an

25  employee's medical condition and regarding behavorial,

26  emotional, or medical disorders, the disclosure of which would

27  be harmful to the employee. Likewise it is a public necessity

28  that appraisals, surveys, applications, and other information

29  relating to a property holder's property, and certain policy

30  holder and policy information including information relating

31  to underlying coverage as well as underwriting files, be held

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    File original & 9 copies    04/26/00
    hrp0004                     02:51 pm         02333-0004-513491




                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2333

    Amendment No.     (for drafter's use only)





 1  confidential and exempt because such records and information

 2  contain proprietary confidential business information and

 3  disclosure of such records and information could be harmful to

 4  the policyholder. Additionally, it is a public necessity that

 5  matters reasonably encompassed in privileged attorney-client

 6  communications be held confidential and exempt because the

 7  release of such information could jeopardize ongoing or

 8  pending litigation or other business matters.  It is a public

 9  necessity that open claims files records be held confidential

10  and exempt because if such records were not confidential and

11  exempt, claimants would have unfettered access to information

12  held by the association which could be used as evidence and

13  for purposes of negotiation, claim evaluation, and settlement

14  considerations, which would result in higher awards and

15  settlements paid out by the association and ultimately the

16  consumer. Additionally, it is a public necessity that records

17  held by an internal auditor while an audit is incomplete or

18  while an investigation is pending be held confidential and

19  exempt because otherwise inaccurate information would possibly

20  be released or investigations jeopardized. It is also a public

21  necessity that vendor responses to an association request for

22  proposal to perform specialized professional services be held

23  confidential and exempt because the disclosure of such

24  responses, prior to the selection of the successful vendor,

25  would reveal competitive information, interfere with the

26  association's ability to administer the vendor selection

27  process, and negatively affect the content and quality of the

28  proposals that are submitted.  Finally, it is a public

29  necessity that all proprietary information and trade secrets

30  furnished to the association as part of a response to a

31  request for proposal, or under separate contract, be held

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    File original & 9 copies    04/26/00
    hrp0004                     02:51 pm         02333-0004-513491




                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2333

    Amendment No.     (for drafter's use only)





 1  confidential and exempt when such response or contract

 2  provides for confidentiality.  If proprietary information and

 3  trade secrets were not held confidential and exempt, the type

 4  and quality of information the association receives in a

 5  response would be limited and inadequate for the association

 6  to make an informed decision that is in the public interest.

 7  Likewise, the association's ability to enter into necessary

 8  contracts, that require confidentiality, would be impaired if

 9  proprietary information and trade secrets related to those

10  contracts are not held confidential and exempt from public

11  disclosure.

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    File original & 9 copies    04/26/00
    hrp0004                     02:51 pm         02333-0004-513491