HB 1939

1	A bill to be entitled
2	An act relating to public records and public meetings;
3	creating s. 627.06292, F.S.; creating an exemption from
4	public records requirements for reports of hurricane loss
5	data and associated exposure data that are specific to a
6	particular insurance company; providing for review and
7	repeal; providing a statement of public necessity;
8	amending s. 627.0628, F.S.; creating an exemption from
9	public records requirements for trade secrets used in
10	designing and constructing hurricane loss models; creating
11	an exemption from public meetings requirements for that
12	portion of a meeting of the Florida Commission on
13	Hurricane Loss Projection Methodology or of a rate
14	proceeding wherein confidential and exempt trade secrets
15	are discussed; providing for review and repeal; providing
16	a statement of public necessity; providing a contingent
17	effective date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1.  Section 627.06292, Florida Statutes, is created
22	to read:
23	627.06292  Reports of hurricane loss data and associated
24	exposure data; public records exemption.--
25	(1)  Reports of hurricane loss data and associated exposure
26	data that are specific to a particular insurance company, as
27	reported by an insurer or a licensed rating organization to the
28	office or to a type I center at a state university pursuant to
29	s. 627.06281, are exempt from s. 119.07(1) and s. 24(a), Art. I
30	of the State Constitution.
31	(2)  This section is subject to the Open Government Sunset
32	Review Act of 1995 in accordance with s. 119.15, and shall stand
33	repealed on October 2, 2010, unless reviewed and saved from
34	repeal through reenactment by the Legislature.
35	Section 2.  The Legislature finds that it is a public
36	necessity that reports of hurricane loss data and associated
37	exposure data that are specific to a particular insurance
38	company be made exempt from public records requirements. The
39	Legislature finds that revealing such information could
40	substantially harm insurers in the insurance market and give
41	competitor insurers an unfair economic advantage. Hurricane loss
42	data and associated exposure data of an insurer include the type
43	and location of properties insured by an insurer, the amount of
44	damage incurred by an insured, the amount a property is insured
45	for, and the reserves an insurer has for future losses. This
46	information is of value to an insurer and would provide a
47	competitive advantage if disclosed to another insurer.
48	Information concerning the hurricane losses that are paid by an
49	insurer for specific types and locations of homes is proprietary
50	in nature. Such information could be used by a competitor to
51	solicit business by offering lower prices based on the
52	information gathered. As such, the Legislature finds that the
53	exemption for reports of hurricane loss data and associated
54	exposure data is a public necessity.
55	Section 3.  Paragraph (e) is added to subsection (3) of
56	section 627.0628, Florida Statutes, to read:
57	627.0628  Florida Commission on Hurricane Loss Projection
58	Methodology; public records exemption; public meetings
59	exemption.--
60	(3)  ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.--
61	(e)1.  A trade secret, as defined in s. 812.081, that is
62	used in designing and constructing a hurricane loss model and
63	that is provided pursuant to this section, by a private company,
64	to the commission, office, or consumer advocate appointed
65	pursuant to s. 627.0613, is confidential and exempt from s.
66	119.07(1) and s. 24(a), Art. I of the State Constitution.
67	2.  That portion of a meeting of the commission or of a
68	rate proceeding on an insurer's rate filing at which a trade
69	secret made confidential and exempt by this paragraph is
70	discussed is exempt from s. 286.011 and s. 24(b), Art. I of the
71	State Constitution.
72	3.  This paragraph is subject to the Open Government Sunset
73	Review Act of 1995 in accordance with s. 119.15, and shall stand
74	repealed on October 2, 2010, unless reviewed and saved from
75	repeal through reenactment by the Legislature.
76	Section 4.  The Legislature finds that it is a public
77	necessity that a trade secret, as defined in s. 812.081, Florida
78	Statutes, that is used in designing and constructing a hurricane
79	loss model and that is provided pursuant to law, by a private
80	company, to the Florida Commission on Hurricane Loss Projection
81	Methodology, the Office of Insurance Regulation, or an appointed
82	consumer advocate be made confidential and exempt from public
83	records requirements and be made exempt from public meetings
84	requirements. Disclosing trade secrets would negatively impact
85	the business interests of a private company that has invested
86	substantial economic resources in developing the model, and
87	competitor companies would gain an unfair competitive advantage
88	if provided access to such information. Reliable projections of
89	hurricane losses are necessary in order to ensure that rates for
90	residential property insurance meet the statutory requirement
91	that rates be neither excessive nor inadequate. This goal is
92	served by enabling the Florida Commission on Hurricane Loss
93	Projection Methodology, the Office of Insurance Regulation, and
94	the consumer advocate appointed pursuant to s. 627.0613, Florida
95	Statutes, to have access to all aspects of hurricane loss
96	models, and encouraging private companies to submit such models
97	to the commission, office, and consumer advocate for review
98	without concern that trade secrets will be disclosed. In
99	addition, the Legislature finds that it is a public necessity to
100	protect trade secrets discussed during meetings or rate
101	proceedings, because release of such information via a public
102	meeting or proceeding would defeat the purpose of the public
103	records exemption and would allow competitors and other persons
104	to attend those meetings and discover the protected trade
105	secrets.
106	Section 5.  This act shall take effect on the same date
107	that HB 1937 or substantially similar legislation takes effect,
108	if such legislation is adopted in the same legislative session
109	or an extension thereof and becomes a law.

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