HOUSE AMENDMENT
                                                  Bill No. HB 1523
    Amendment No. ___ (for drafter's use only)
                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW
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11  The Committee on State Administration offered the following:
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13         Amendment (with title amendment) 
14  Remove from the bill:  Everything after the enacting clause
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16  and insert in lieu thereof:  
17         Section 1.  Section 569.215, Florida Statutes, is
18  created to read:
19         569.215  Confidential records relating to tobacco
20  settlement agreement.--
21         (1)  Proprietary confidential business information
22  received by the Governor, the Attorney General, or outside
23  counsel representing the State of Florida in negotiations for
24  settlement payments pursuant to the settlement agreement, as
25  amended, in the case of The State of Florida et al. v.
26  American Tobacco Company et al., Case #95-1466AH, in the
27  Circuit Court of the Fifteenth Judicial Circuit, in and for
28  Palm Beach County, or received by the Comptroller or the
29  Auditor General for the purposes of accomplishing their
30  respective responsibilities for settlement payments under s.
31  569.21(2) is confidential and exempt from s. 119.07(1) and s.
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    File original & 9 copies    04/12/01                          
    hsa0005                     04:15 pm         01523-sa  -850487

HOUSE AMENDMENT Bill No. HB 1523 Amendment No. ___ (for drafter's use only) 1 24(a), Art. I of the State Constitution. Any state or federal 2 agency that is authorized to have access to such documents by 3 any provision of law shall be granted such access in 4 furtherance of such agency's statutory duties, notwithstanding 5 the provisions of this section. Proprietary confidential 6 business information received under this section shall not 7 retain its confidential and exempt status if that information 8 is made public, including publicizing such information in a 9 Securities and Exchange Commission filing, an annual financial 10 statement, or other document or means. This section is subject 11 to the Open Government Sunset Review Act of 1995 in accordance 12 with s. 119.15, and shall stand repealed on October 2, 2006, 13 unless reviewed and saved from repeal through reenactment by 14 the Legislature. 15 (2) As used in this section, "proprietary confidential 16 business information" means information, regardless of form or 17 characteristics, which is owned or controlled by a tobacco 18 company that is a signatory to the settlement agreement, as 19 amended, in the case of The State of Florida et al. v. 20 American Tobacco Company et al., Case #95-1466AH, in the 21 Circuit Court of the Fifteenth Judicial Circuit, in and for 22 Palm Beach County, which is intended to be and is treated by a 23 tobacco company as private in that the disclosure of the 24 information would cause harm to the company's business 25 operations, and which has not been disclosed unless disclosed 26 pursuant to a statutory provision, an order of a court or 27 administrative body, or private agreement that provides that 28 the information will not be released to the public. The term 29 includes, but is not limited to: 30 (a) Trade secrets. 31 (b) Information in a Form 10-K that is confidential 2 File original & 9 copies 04/12/01 hsa0005 04:15 pm 01523-sa -850487
HOUSE AMENDMENT Bill No. HB 1523 Amendment No. ___ (for drafter's use only) 1 pursuant to an order of the Division of Corporation Finance of 2 the Securities and Exchange Commission. 3 (c) Internal auditing control policies and procedures 4 and reports of internal auditors. 5 (d) Financial operating and marketing information 6 prepared in the ordinary course of business, the disclosure of 7 which could impair the competitive business of the provider of 8 information. 9 (e) Financial statements, which consist of balance 10 sheets, statements of income and cash flows, and notes related 11 thereto, of any subsidiary that is part of a consolidated 12 group and engaged in the production or sale of tobacco 13 products. 14 (f) Report letters from independent auditors relating 15 to domestic operating company income. 16 (g) Analyses of specific items of revenue and expense 17 included in operating profit and extraordinary items. As used 18 in this paragraph, "extraordinary items" consists of one-time 19 tobacco litigation settlement costs and restructuring charges. 20 (h) Working papers, schedules, analyses, and 21 reconciliations prepared by company personnel for the purpose 22 of clarifying the disclosures of domestic tobacco revenues and 23 operating profit contained in financial statements or other 24 information related to the sale or production of tobacco 25 products. 26 Section 2. The Legislature finds that it is a public 27 necessity that proprietary confidential business information 28 of tobacco companies that are signatories to the settlement 29 agreement, as amended, in the case of The State of Florida et 30 al. v. American Tobacco Company et al., Case #95-1466AH, in 31 the Circuit Court of the Fifteenth Judicial Circuit, in and 3 File original & 9 copies 04/12/01 hsa0005 04:15 pm 01523-sa -850487
HOUSE AMENDMENT Bill No. HB 1523 Amendment No. ___ (for drafter's use only) 1 for Palm Beach County, be exempt and confidential when held by 2 the State of Florida for the purpose of negotiating and 3 verifying the calculation of annual tobacco settlement 4 payments. In order for the state to determine that the annual 5 payments that it receives from tobacco companies are accurate 6 and verifiable, it is necessary for the state to obtain 7 proprietary confidential business information of the tobacco 8 companies that are signatories to the agreement. Disclosure of 9 the proprietary confidential business information of these 10 tobacco companies would harm them in the marketplace by 11 placing them at a competitive disadvantage with companies that 12 do not provide such information to the State of Florida and 13 would adversely affect their business interests. If the 14 participating tobacco companies are harmed in the marketplace, 15 their annual sales of tobacco products will be reduced, which 16 will diminish the annual amounts that they pay to the State of 17 Florida, thereby harming the financial interests of the state 18 and the people of Florida. The public and private harm in 19 disclosing this information significantly outweighs any public 20 benefit derived from disclosure, and the public's ability to 21 scrutinize and monitor government action is not diminished by 22 nondisclosure of this information. Therefore, the Legislature 23 finds that it is a public necessity that this proprietary 24 confidential business information be made confidential and 25 exempt from the requirements of s. 119.07(1) and s. 24(a), 26 Art. I of the State Constitution. 27 Section 3. This act shall take effect upon becoming a 28 law. 29 30 31 4 File original & 9 copies 04/12/01 hsa0005 04:15 pm 01523-sa -850487
HOUSE AMENDMENT Bill No. HB 1523 Amendment No. ___ (for drafter's use only) 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 remove from the title of the bill: the entire title 4 5 and insert in lieu thereof: 6 A bill to be entitled 7 An act relating to public records exemptions; 8 creating s. 569.215, F.S.; providing that 9 proprietary confidential business information 10 used to negotiate or verify annual tobacco 11 settlement payments is exempt from public 12 records requirements; providing for future 13 review and repeal; providing a statement of 14 public necessity; providing an effective date. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5 File original & 9 copies 04/12/01 hsa0005 04:15 pm 01523-sa -850487