HB 1041CS

CHAMBER ACTION



2The Committee on Commerce recommends the following:
3
4     Committee Substitute
5     Remove the entire bill and insert:
6
A bill to be entitled
7An act relating to public records exemptions; creating s.
8717.1171, F.S.; exempting from public records requirements
9certain financial records held by the Department of
10Financial Services; providing exceptions; providing for
11future legislative review and repeal; creating s.
12717.12401, F.S.; exempting from public records
13requirements certain personal photographic information
14held by the department; providing exceptions; providing
15for future legislative review and repeal; creating s.
16717.12402, F.S.; exempting from public records
17requirements certain databases subscribed to by the
18department under certain circumstances; providing for
19future legislative review and repeal; amending s.
20717.1301, F.S.; exempting a list of holders under
21investigation or examination from public records
22requirements; authorizing the department to provide such
23information to certain agencies or organizations under
24certain circumstances; providing exceptions; providing for
25future legislative review and repeal; deleting an
26exemption from certain public records requirements for
27materials compiled by the department under an
28investigation or examination; providing exceptions;
29creating s. 717.1342, F.S.; providing criminal penalties
30for disclosure of confidential records; providing findings
31of public necessity; providing for future legislative
32review and repeal; repealing s. 717.117(8), F.S., relating
33to an exemption from certain public records requirements
34for financial records held by the Department of Financial
35Services; providing a contingent effective date.
36
37Be It Enacted by the Legislature of the State of Florida:
38
39     Section 1.  Section 717.1171, Florida Statutes, is created
40to read:
41     717.1171  Public records exemption for social security
42numbers, unclaimed property account dollar amounts, the number
43of reported shares of stock, and financial account numbers.--
44     (1)  Social security numbers, unclaimed property account
45dollar amounts, the number of reported shares of stock, and
46financial account numbers held by the department are
47confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
48of the State Constitution. Notwithstanding this exemption, the
49last four digits of social security numbers, unclaimed property
50account dollar amounts, and the number of reported shares of
51stock shall be released to an attorney licensed to practice law
52in this state, a licensed Florida-certified public accountant,
53or a private investigator licensed under chapter 493, and
54registered with the department under this chapter.
55Notwithstanding this exemption, social security numbers,
56unclaimed property account dollar amounts, the number of
57reported shares of stock, and financial account numbers held by
58the department may be provided to another agency in the
59furtherance of that agency's duties and responsibilities, or to
60an employee of such an agency. The receiving person or agency,
61other than the person entitled to the unclaimed property, must
62maintain the confidential and exempt status of such information.
63This exemption applies to social security numbers, unclaimed
64property account dollar amounts, the number of reported shares
65of stock, and financial account numbers held by the department
66before, on, or after October 1, 2004.
67     (2)  If information made confidential and exempt under this
68section is offered as evidence in any administrative, civil, or
69criminal proceeding, or is otherwise subject to such a
70proceeding, the presiding officer, in her or his discretion, may
71prevent the disclosure of information that is confidential and
72exempt pursuant to this section.
73     (3)  An attorney licensed to practice law in this state, a
74licensed Florida-certified public accountant, or a private
75investigator licensed under chapter 493, and registered with the
76department under this chapter, or an employee thereof, may
77disclose in good faith the last four digits of social security
78numbers, unclaimed property account dollar amounts, and the
79number of reported shares of stock to a person who is believed
80by the attorney, accountant, or investigator, or an employee
81thereof, to be entitled to the unclaimed property.
82     (4)  The department, or an employee of the department, may
83disclose in good faith the last four digits of social security
84numbers, unclaimed property account dollar amounts, and the
85number of reported shares of stock to a person who is believed
86by the department, or an employee of the department, to be
87entitled to the unclaimed property.
88     (5)  This section is subject to the Open Government Sunset
89Review Act of 1995 in accordance with s. 119.15 and shall stand
90repealed on October 2, 2009, unless reviewed and saved from
91repeal through reenactment by the Legislature.
92     Section 2.  Section 717.12401, Florida Statutes, is created
93to read:
94     717.12401  Public records exemption for personal
95photographic identification.--
96     (1)  Personal photographic identification held by the
97department pursuant to this chapter is confidential and exempt
98from s. 119.07(1) and s. 24(a), Art. I of the State
99Constitution. This exemption applies to personal photographic
100identification held by the department before, on, or after
101October 1, 2004.
102     (2)  This section does not prohibit the department from
103providing the personal photographic identification to any law
104enforcement or administrative agency or regulatory organization.
105The agency receiving the personal photographic identification
106that would be confidential and exempt pursuant to this section
107must maintain the confidentiality of the information so long as
108the information would otherwise be confidential.
109     (3)  If personal photographic identification made
110confidential and exempt under this section is offered as
111evidence in any administrative, civil, or criminal proceeding,
112or is otherwise subject to such a proceeding, the presiding
113officer, in her or his discretion, may prevent the disclosure of
114information that is confidential and exempt pursuant to this
115section.
116     (4)  This section is subject to the Open Government Sunset
117Review Act of 1995 in accordance with s. 119.15 and shall stand
118repealed on October 2, 2009, unless reviewed and saved from
119repeal through reenactment by the Legislature.
120     Section 3.  Section 717.12402, Florida Statutes, is created
121to read:
122     717.12402  Public records exemption for database
123subscription required to be confidential by the database
124vendor.-?A database subscribed to by the department and
125information derived from the database is confidential and exempt
126from s. 119.07(1) and s. 24(a), Art. I of the State Constitution
127if the database vendor requires confidentiality. This section is
128subject to the Open Government Sunset Review Act of 1995 in
129accordance with s. 119.15 and shall stand repealed on October 2,
1302009, unless reviewed and saved from repeal through reenactment
131by the Legislature.
132     Section 4.  Subsection (5) of section 717.1301, Florida
133Statutes, is amended to read:
134     717.1301  Investigations; examinations; subpoenas.--
135     (5)(a)  Except as otherwise provided by this section, any
136list of holders under investigation or examination or to be
137investigated or examined is confidential and exempt from s.
138119.07(1) and s. 24(a), Art. I of the State Constitution.
139     (b)  The department may provide such confidential and
140exempt information to a law enforcement agency, administrative
141agency, or regulatory organization in the furtherance of its
142duties and responsibilities. The law enforcement agency,
143administrative agency, or regulatory organization must maintain
144the confidential and exempt status of the information so long as
145it would otherwise be confidential and exempt.
146     (c)  If such confidential and exempt information is offered
147into evidence in any administrative, civil, or criminal
148proceeding, the presiding officer may, in her or his discretion,
149prevent the disclosure of such information.
150     (d)  Such information shall remain confidential and exempt
151from s. 119.07(1) and s. 24(a), Art. I of the State Constitution
152until after the department completes its investigation or
153examination or the investigation or examination ceases to be
154active to the extent disclosure would:
155     1.  Jeopardize the integrity of another active
156investigation;
157     2.  Reveal the name, address, telephone number, social
158security number, or any other identifying information of a
159complainant, customer, or account holder, except as authorized
160by s. 717.1171;
161     3.  Reveal the identity of a confidential source;
162     4.  Reveal investigative techniques or procedures;
163     5.  Reveal a trade secret as defined in s. 688.002; or
164     6.  Reveal proprietary business information obtained by the
165department from any person which is only made available to the
166department on a confidential or similarly restricted basis.
167
168For purposes of this subsection, an investigation or examination
169of a person other than a holder pursuant to s. 17.20(3) shall be
170considered active so long as the department or any law
171enforcement or administrative agency or regulatory organization
172is proceeding with reasonable dispatch and has a reasonable
173good-faith belief that the investigation or examination may lead
174to the filing of an administrative, civil, or criminal
175proceeding or to the denial or conditional grant of a license,
176registration, or permit. This subsection does not prohibit
177disclosure of information that is required by law to be filed
178with the department and, but for the investigation or
179examination, would be subject to s. 119.07(1).
180     (e)  This exemption does not prohibit disclosure of
181information that is required by law to be filed with the
182department or that is otherwise subject to s. 119.07(1) and s.
18324(a), Art. I of the State Constitution.
184     (f)  This subsection is subject to the Open Government
185Sunset Review Act of 1995 in accordance with s. 119.15, and
186shall stand repealed on October 2, 2009, unless reviewed and
187saved from repeal through reenactment by the Legislature. The
188material compiled by the department in an investigation or
189examination under this chapter is confidential until the
190investigation or examination is complete. The material compiled
191by the department in an investigation or examination under this
192chapter remains confidential after the department's
193investigation or examination is complete if the department has
194submitted the material or any part of it to any law enforcement
195agency or other administrative agency for further investigation
196or for the filing of a criminal or civil prosecution and such
197investigation has not been completed or become inactive.
198     Section 5.  Section 717.1342, Florida Statutes, is created
199to read:
200     717.1342  Criminal penalties for disclosure of confidential
201records.--Any person who willfully and knowingly violates s.
202717.1171 or s. 717.12401 commits a felony of the third degree,
203punishable as provided in s. 775.082 or s. 775.083.
204     Section 6.  (1)  The Legislature finds that it is a public
205necessity that social security numbers and financial account
206numbers of apparent owners of unclaimed property which are in
207the custody of the Department of Financial Services be made
208confidential and exempt in order to prevent identity theft and
209related crimes. The Legislature further finds that this
210exemption is a public necessity in order to prevent the use of
211such information in forged documents demonstrating entitlement
212to unclaimed property and thereby defrauding the rightful
213property owner or the State School Fund. Additionally, the
214social security number is the only nationwide, unique numeric
215form of identification. Release of a person's social security
216number is of concern due to the amount of information about an
217individual which that number can provide. A social security
218number is often the link to an individual's personal records,
219whether such records are financial, educational, medical, or
220familial in nature. Social security numbers furnished to
221registered owner representatives by the Department of Financial
222Services under current law have been released in solicitations
223to prospective unclaimed property clients. Additionally, social
224security numbers furnished to an owner's representative were
225used to manufacture and submit fraudulent documents in order to
226obtain unclaimed property in excess of $350,000 from the
227department. Accordingly, once the social security numbers are
228released, the department has no control over what the recipients
229of the social security number information do with this sensitive
230information. The Legislature further finds that the continued
231release of social security numbers, and this lack of control,
232jeopardizes the financial security of potentially hundreds of
233thousands of individuals whose social security numbers are held
234by the Department of Financial Services on the unclaimed
235property database. Therefore, the harm from disclosure outweighs
236any public benefit obtained from the release of such
237information.
238     (2)  The Legislature finds that it is a public necessity
239that unclaimed property account dollar amounts and the number of
240reported shares of stock which are in the custody of the
241Department of Financial Services be made confidential and exempt
242in order to prevent unclaimed property fraud and related crimes.
243The Legislature further finds that this exemption is a public
244necessity in order to prevent criminal elements from using such
245information to identify which accounts to claim by using forged
246documents demonstrating entitlement to unclaimed property,
247thereby defrauding the rightful property owner or the State
248School Fund. Therefore, the harm from disclosure outweighs any
249public benefit obtained from the release of such information.
250The Legislature further finds that it is necessary, however, to
251provide access to unclaimed property account dollar amounts and
252the number of reported shares of stock to an attorney licensed
253to practice law in this state, a licensed Florida-certified
254public accountant, or a private investigator licensed under
255chapter 493, Florida Statutes, and registered with the
256department because they are the only persons, other than the
257owner or an heir of the original owner, who are authorized to
258file claims on behalf of owners of unclaimed property pursuant
259to chapter 717, Florida Statutes. Providing access to unclaimed
260property account dollar amounts and the number of reported
261shares of stock to an attorney licensed to practice law in this
262state, a licensed Florida-certified public accountant, or a
263private investigator licensed under chapter 493, Florida
264Statutes, and registered with the department will assist them in
265determining which accounts to pursue on behalf of owners.
266     (3)  The Legislature finds that it is a public necessity
267that all personal photographic identifications that are in the
268custody of the Department of Financial Services be made
269confidential and exempt in order to prevent identity theft and
270related crimes. The Legislature further finds that this
271exemption is a public necessity in order to prevent the use of
272such information in forged documents demonstrating entitlement
273to abandoned or unclaimed property and thereby defrauding the
274rightful property owner or the State School Fund. Release of a
275person's personal photographic identification is of concern due
276to the ability to use personal photographic identification to
277obtain access to an individual's personal records, whether such
278records are financial, educational, medical, or familial in
279nature. Concerns by the public over the release of personal
280photographic identifications that are in the custody of the
281Department of Financial Services has created a reluctance by
282some members of the public to claim their unclaimed property.
283Making personal photographic identification exempt from
284disclosure will reduce public fears of identity theft and
285promote the goal of returning unclaimed property to owners.
286Therefore, the harm from disclosure outweighs any public benefit
287obtained from the release of such information.
288     (4)  The Legislature finds that it is a public necessity
289that the Department of Financial Services use the most current
290and efficient database resources in a cost-effective manner to
291notify owners of unclaimed property, to verify whether claimants
292are entitled to unclaimed property, and to prevent unclaimed
293property fraud and related crimes. The Legislature further finds
294that this exemption is a public necessity in order to help
295prevent criminal elements from successfully using forged
296documents or erroneous information demonstrating entitlement to
297abandoned or unclaimed property, thereby defrauding the rightful
298property owner or the State School Fund. Making such databases
299confidential will reduce the concerns of vendors, due to federal
300legislation, about the public release of such information.
301Accordingly, the harm from disclosure outweighs any public
302benefit obtained from the release of such information.
303     (5)(a)  The Legislature finds that it is a public necessity
304that information received or created during an investigation or
305examination conducted by the Department of Financial Services
306pursuant to chapter 717, Florida Statutes, including any
307consumer complaint, be confidential and exempt from s.
308119.07(1), Florida Statutes, and s. 24(a), Art. I of the State
309Constitution until the investigation or examination is completed
310or ceases to be active or if the department submits the
311information to any law enforcement or administrative agency or
312regulatory organization for further investigation and that
313agency's or organization's investigation is completed or ceases
314to be active, in order to protect the integrity of such
315investigations or examinations. An investigation or examination
316may lead to filing an administrative, civil, or criminal
317proceeding or to denying or conditionally granting a license,
318registration, or permit. The public necessity exists to the
319extent disclosure might jeopardize the integrity of another
320active investigation or examination; reveal the name, address,
321telephone number, social security number, or any other
322identifying information of any complainant, customer, or account
323holder subject to the provisions of s. 717.1171, Florida
324Statutes; disclose the identity of a confidential source;
325disclose investigative techniques or procedures; reveal a trade
326secret as defined in s. 688.002, Florida Statutes; or reveal
327proprietary business information. The Legislature further finds
328that financial incentives are adequate to ensure the expeditious
329completion examination of holders pursuant to s. 17.20(3),
330Florida Statutes.
331     (b)  The Legislature finds that it is a public necessity
332that examination and investigation lists are confidential to
333ensure that the integrity of the process is not compromised, so
334that the investigation or examination may be conducted as
335efficiently and effectively as possible, and so that persons
336will not be able to target holders subject to examination or
337investigation for the purpose of advising holders on how to
338avoid reporting and remitting unclaimed property. The
339Legislature further finds that the harm from disclosure
340outweighs any public benefit obtained from the release of such
341information.
342     (c)  Examinations and investigations by the department
343frequently involve the gathering of personal, sensitive
344information concerning individuals, such as complainants,
345customers, account holders, or other confidential sources. The
346department may not otherwise have this information in its
347possession but for the examination or investigation. Because of
348the sensitive nature of the information gathered, the
349information should not be made available to the public. If
350disclosed, this information may cause unwarranted damage to such
351persons by facilitating identity theft or jeopardizing the
352safety of such individuals.
353     (d)  Revealing investigative techniques or procedures may
354inhibit the effective and efficient administration of the
355department to conduct investigations. Revelation of such
356techniques or procedures could allow a person to hide or conceal
357violations of law that would have otherwise been discovered
358during an examination or investigation. As such, the
359department's ability to perform an effective investigation or
360examination may be hindered.
361     (e)  Review by the office of proprietary information or
362trade secrets is necessary on occasion as part of an ongoing
363examination or investigation. Disclosure of such information to
364the public may cause injury to the affected entity in the
365marketplace if revealed. Providing confidentiality will provide
366the department with the necessary tool to perform its function
367while maintaining adequate protection for the affected business.
368     Section 7.  Subsection (8) of section 717.117, Florida
369Statutes, is repealed:
370     717.117  Report of unclaimed property.--
371     (8)  Social security numbers and financial account numbers
372contained in reports required under this section, held by the
373department, are confidential and exempt from s. 119.07(1) and s.
37424(a), Art. I of the State Constitution. Notwithstanding this
375exemption, social security numbers shall be released, for the
376limited purpose of locating owners of abandoned or unclaimed
377property, to an attorney, Florida-certified public accountant,
378private investigator who is duly licensed in this state, or a
379private investigative agency licensed under chapter 493 and
380registered with the department under this chapter. This
381exemption applies to social security numbers and financial
382account numbers held by the department before, on, or after the
383effective date of this exemption. This subsection is subject to
384the Open Government Sunset Review Act of 1995 in accordance with
385s. 119.15, and shall stand repealed October 2, 2007, unless
386reviewed and saved from repeal through reenactment by the
387Legislature.
388     Section 8.  This act shall take effect October 1, 2004, if
389HB 1039 or substantially similar legislation is adopted in the
390same legislative session or an extension thereof and becomes a
391law.


CODING: Words stricken are deletions; words underlined are additions.