House Bill 0439

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    Florida House of Representatives - 2000                 HB 439

        By Representative Crow






  1                      A bill to be entitled

  2         An act relating to public records; amending s.

  3         288.99, F.S.; providing exemptions from public

  4         records requirements for information obtained

  5         from a certified capital company during

  6         investigation or review by the Department of

  7         Banking and Finance, certain reports related

  8         thereto, and for personal financial information

  9         relating to a principal of such a company or an

10         applicant for certification; providing for

11         release to certain entities; providing for

12         future review and repeal; providing a finding

13         of public necessity; providing an effective

14         date.

15

16  Be It Enacted by the Legislature of the State of Florida:

17

18         Section 1.  Subsections (15) and (16) are added to

19  section 288.99, Florida Statutes, to read:

20         288.99  Certified Capital Company Act.--

21         (15)  CONFIDENTIALITY OF INVESTIGATION AND REVIEW

22  INFORMATION.--Except as otherwise provided in this section,

23  information submitted by a certified capital company or

24  collected from a certified capital company during an

25  investigation or department review, and any reports prepared

26  by, or for the use of, the department or any other

27  governmental agency as a result of an investigation or

28  department review of a certified capital company, including

29  working papers or portions thereof, are confidential and

30  exempt from s. 119.07(1) and s. 24(a), Art. I of the State

31  Constitution unless such information is released by the

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    Florida House of Representatives - 2000                 HB 439

    568-161-00






  1  certified capital company. Such information or reports may be

  2  released by the department to a principal of the certified

  3  capital company, an administrative agency responsible for

  4  administration of this section, or a law enforcement agency.

  5  Any law enforcement or administrative agency receiving

  6  confidential information shall maintain the confidentiality of

  7  the information. This subsection shall not be construed to

  8  prohibit disclosure of information which is specifically

  9  required by law to be filed with the department and which, but

10  for the investigation or department review, would otherwise be

11  subject to public disclosure. This subsection is subject to

12  the Open Government Sunset Review Act of 1995 in accordance

13  with s. 119.15, and shall stand repealed on October 2, 2005,

14  unless reviewed and saved from repeal through reenactment by

15  the Legislature.

16         (16)  CONFIDENTIALITY OF FINANCIAL

17  INFORMATION.--Information submitted to the department by an

18  applicant for certification, or by a certified capital

19  company, that is related to personal financial matters of a

20  principal of the applicant or certified capital company is

21  confidential and exempt from s. 119.07(1) and s. 24(a), Art. I

22  of the State Constitution unless such information is released

23  by the applicant or certified capital company. Nothing in this

24  subsection shall be construed to prohibit the department from

25  providing such information to a law enforcement agency or

26  administrative agency responsible for administering this

27  section. Any law enforcement or administrative agency

28  receiving such information shall maintain the confidentiality

29  of the information. This subsection is subject to the Open

30  Government Sunset Review Act of 1995 in accordance with s.

31  119.15, and shall stand repealed on October 2, 2005, unless

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    Florida House of Representatives - 2000                 HB 439

    568-161-00






  1  reviewed and saved from repeal through reenactment by the

  2  Legislature.

  3         Section 2.  The Legislature finds that the citizens of

  4  Florida will benefit from the operation of certified capital

  5  companies in this state by virtue of potential job creation, a

  6  potentially expanded tax base, and overall economic

  7  improvement resulting from investment of certified capital in

  8  emerging small businesses in Florida. The Legislature further

  9  finds that it is a public necessity to exempt from public

10  records requirements information obtained during an

11  investigation or annual review of a certified capital company,

12  any report prepared as a result of an investigation or review,

13  and any personal financial information related to the

14  principals of applicants or certified capital companies. These

15  exemptions are essential to protect the integrity of contract

16  negotiations inherent to this industry, which include complex

17  financial transactions and negotiations between certified

18  capital companies and insurance companies which invest capital

19  in the certified capital companies. Additionally, the

20  exemptions protect the privacy of personal financial

21  information of the individual principals of applicants and

22  certified capital companies. If information collected during

23  investigations or reviews of certified capital companies is

24  not protected, critical proprietary information regarding

25  investment contracts and the structuring of investments in

26  certified capital companies will be revealed. Disclosure of

27  this information would place those certified capital companies

28  at a competitive disadvantage in all states in which the

29  companies currently operate or intend to operate.

30  Consequently, companies whose financial records are not

31  otherwise open to public inspection may refrain from seeking

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    Florida House of Representatives - 2000                 HB 439

    568-161-00






  1  certification as certified capital companies in Florida, or

  2  expanding their current presence in Florida. As a result,

  3  Florida would lose a significant source of venture capital for

  4  small early-stage businesses, economic growth resulting from

  5  the establishment of new businesses funded by certified

  6  capital, tax revenue generated by new jobs and businesses, and

  7  employment opportunities for the citizens of this state. In

  8  addition, required disclosure of personal financial

  9  information of principals of applicants and certified capital

10  companies would have a negative impact on growth of the

11  certified capital company industry in Florida by unnecessarily

12  exposing those individuals to an invasive scrutiny of personal

13  information. Accordingly, the harm that would result from

14  requiring public disclosure of proprietary information of the

15  certified capital companies or personal information of the

16  principals of the companies far outweighs any public benefit

17  derived from the release of such information.

18         Section 3.  This act shall take effect October 1, 2000.

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21                          HOUSE SUMMARY

22
      Provides exemptions from public records requirements for
23    information obtained from a certified capital company
      during investigation or review by the Department of
24    Banking and Finance, certain reports related thereto, and
      for personal financial information relating to a
25    principal of such a company or an applicant for
      certification, unless such information is released by the
26    company or applicant. Provides for future review and
      repeal.
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