| 1 | The Commerce Council recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 |
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| 6 | A bill to be entitled |
| 7 | An act relating to public records and public meetings; |
| 8 | creating s. 627.06292, F.S.; creating an exemption from |
| 9 | public records requirements for reports of hurricane loss |
| 10 | data and associated exposure data that are specific to a |
| 11 | particular insurance company; providing a definition; |
| 12 | providing for review and repeal; providing a statement of |
| 13 | public necessity; amending s. 627.0628, F.S.; creating an |
| 14 | exemption from public records requirements for trade |
| 15 | secrets used in designing and constructing hurricane loss |
| 16 | models; creating an exemption from public meetings |
| 17 | requirements for that portion of a meeting of the Florida |
| 18 | Commission on Hurricane Loss Projection Methodology or of |
| 19 | a rate proceeding wherein confidential and exempt trade |
| 20 | secrets are discussed; providing for review and repeal; |
| 21 | providing a statement of public necessity; providing a |
| 22 | contingent effective date. |
| 23 |
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| 24 | Be It Enacted by the Legislature of the State of Florida: |
| 25 |
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| 26 | Section 1. Section 627.06292, Florida Statutes, is created |
| 27 | to read: |
| 28 | 627.06292 Reports of hurricane loss data and associated |
| 29 | exposure data; public records exemption.-- |
| 30 | (1) Reports of hurricane loss data and associated exposure |
| 31 | data that are specific to a particular insurance company, as |
| 32 | reported by an insurer or a licensed rating organization to the |
| 33 | office or to a type I center at a state university pursuant to |
| 34 | s. 627.06281, are exempt from s. 119.07(1) and s. 24(a), Art. I |
| 35 | of the State Constitution. |
| 36 | (2) For the purposes of this section, "loss data and |
| 37 | associated exposure data" means the type, age, wind mitigation |
| 38 | features, and location of each property insured; the amount and |
| 39 | type of coverage written on each of those properties; the |
| 40 | amount, date, and type of damage paid for by the insurer on each |
| 41 | property; and the amount of any reserves held by an insurer for |
| 42 | future payments or expenses on damages associated with the date |
| 43 | or dates of occurrence of hurricanes. |
| 44 | (3) This section is subject to the Open Government Sunset |
| 45 | Review Act of 1995 in accordance with s. 119.15, and shall stand |
| 46 | repealed on October 2, 2010, unless reviewed and saved from |
| 47 | repeal through reenactment by the Legislature. |
| 48 | Section 2. The Legislature finds that it is a public |
| 49 | necessity that reports of hurricane loss data and associated |
| 50 | exposure data that are specific to a particular insurance |
| 51 | company be made exempt from public records requirements. The |
| 52 | Legislature finds that revealing such information could |
| 53 | substantially harm insurers in the insurance market and give |
| 54 | competitor insurers an unfair economic advantage. Hurricane loss |
| 55 | data and associated exposure data of an insurer include the type |
| 56 | and location of properties insured by an insurer, the amount of |
| 57 | damage incurred by an insured, the amount a property is insured |
| 58 | for, and the reserves an insurer has for future losses. This |
| 59 | information is of value to an insurer and would provide a |
| 60 | competitive advantage if disclosed to another insurer. |
| 61 | Information concerning the hurricane losses that are paid by an |
| 62 | insurer for specific types and locations of homes is proprietary |
| 63 | in nature. Such information could be used by a competitor to |
| 64 | solicit business by offering lower prices based on the |
| 65 | information gathered. As such, the Legislature finds that the |
| 66 | exemption for reports of hurricane loss data and associated |
| 67 | exposure data is a public necessity. |
| 68 | Section 3. Paragraph (e) is added to subsection (3) of |
| 69 | section 627.0628, Florida Statutes, to read: |
| 70 | 627.0628 Florida Commission on Hurricane Loss Projection |
| 71 | Methodology; public records exemption; public meetings |
| 72 | exemption.-- |
| 73 | (3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.-- |
| 74 | (e)1. A trade secret, as defined in s. 812.081, that is |
| 75 | used in designing and constructing a hurricane loss model and |
| 76 | that is provided pursuant to this section, by a private company, |
| 77 | to the commission, office, or consumer advocate appointed |
| 78 | pursuant to s. 627.0613, is confidential and exempt from s. |
| 79 | 119.07(1) and s. 24(a), Art. I of the State Constitution. |
| 80 | 2. That portion of a meeting of the commission or of a |
| 81 | rate proceeding on an insurer's rate filing at which a trade |
| 82 | secret made confidential and exempt by this paragraph is |
| 83 | discussed is exempt from s. 286.011 and s. 24(b), Art. I of the |
| 84 | State Constitution. |
| 85 | 3. This paragraph is subject to the Open Government Sunset |
| 86 | Review Act of 1995 in accordance with s. 119.15, and shall stand |
| 87 | repealed on October 2, 2010, unless reviewed and saved from |
| 88 | repeal through reenactment by the Legislature. |
| 89 | Section 4. The Legislature finds that it is a public |
| 90 | necessity that a trade secret, as defined in s. 812.081, Florida |
| 91 | Statutes, that is used in designing and constructing a hurricane |
| 92 | loss model and that is provided pursuant to law, by a private |
| 93 | company, to the Florida Commission on Hurricane Loss Projection |
| 94 | Methodology, the Office of Insurance Regulation, or an appointed |
| 95 | consumer advocate be made confidential and exempt from public |
| 96 | records requirements and be made exempt from public meetings |
| 97 | requirements. Disclosing trade secrets would negatively impact |
| 98 | the business interests of a private company that has invested |
| 99 | substantial economic resources in developing the model, and |
| 100 | competitor companies would gain an unfair competitive advantage |
| 101 | if provided access to such information. Reliable projections of |
| 102 | hurricane losses are necessary in order to ensure that rates for |
| 103 | residential property insurance meet the statutory requirement |
| 104 | that rates be neither excessive nor inadequate. This goal is |
| 105 | served by enabling the Florida Commission on Hurricane Loss |
| 106 | Projection Methodology, the Office of Insurance Regulation, and |
| 107 | the consumer advocate appointed pursuant to s. 627.0613, Florida |
| 108 | Statutes, to have access to all aspects of hurricane loss |
| 109 | models, and encouraging private companies to submit such models |
| 110 | to the commission, office, and consumer advocate for review |
| 111 | without concern that trade secrets will be disclosed. In |
| 112 | addition, the Legislature finds that it is a public necessity to |
| 113 | protect trade secrets discussed during meetings or rate |
| 114 | proceedings, because release of such information via a public |
| 115 | meeting or proceeding would defeat the purpose of the public |
| 116 | records exemption and would allow competitors and other persons |
| 117 | to attend those meetings and discover the protected trade |
| 118 | secrets. |
| 119 | Section 5. This act shall take effect on the same date |
| 120 | that HB 1937 or substantially similar legislation takes effect, |
| 121 | if such legislation is adopted in the same legislative session |
| 122 | or an extension thereof and becomes a law. |