Senate Bill sb2034

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    Florida Senate - 2005                                  SB 2034

    By Senator Argenziano





    3-1665-05

  1                      A bill to be entitled

  2         An act relating to public records exemptions;

  3         creating s. 288.961, F.S.; clarifying the

  4         public records exemption relating to trade

  5         secrets for proprietary confidential business

  6         information owned or controlled by the

  7         not-for-profit corporation operating the

  8         Florida Vaccine Research Institute and its

  9         subsidiaries; expanding the public records

10         exemption to include information received from

11         a person in this or another state or nation or

12         the Federal Government which is otherwise

13         exempt or confidential under the laws of this

14         or another state or nation or under federal

15         law; providing for future review and repeal;

16         providing a statement of public necessity;

17         providing an effective date.

18  

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

20  

21         Section 1.  Section 288.961, Florida Statutes, is

22  created to read:

23         288.961  Confidentiality of the records of the

24  not-for-profit corporation that governs and operates the

25  Florida Vaccine Research Institute.--

26         (1)(a)  Records of the not-for-profit corporation that

27  governs and operates the Florida Vaccine Research Institute

28  and of its subsidiaries are public records unless made

29  confidential or exempt by law.

30         (b)  Proprietary confidential business information is

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

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    Florida Senate - 2005                                  SB 2034
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 1  of the State Constitution. However, the Auditor General, the

 2  Office of Program Policy Analysis and Government

 3  Accountability, and the Florida Board of Governors, pursuant

 4  to their oversight and auditing functions, must be given

 5  access to all proprietary confidential business information

 6  upon request and without subpoena and must maintain the

 7  confidentiality of information so received.

 8         (c)  As used in this subsection, the term "proprietary

 9  confidential business information" means information,

10  regardless of its form or characteristics, that:

11         1.  Is owned or controlled by the not-for-profit

12  corporation that governs and operates the Florida Vaccine

13  Research Institute or its subsidiaries;

14         2.  Is intended to be and is treated by the

15  not-for-profit corporation that governs and operates the

16  Florida Vaccine Research Institute or its subsidiaries as

17  private;

18         3.  Would harm the business operations of the

19  not-for-profit corporation that governs and operates the

20  Florida Vaccine Research Institute or its subsidiaries if

21  disclosed;

22         4.  Has not been intentionally disclosed by the

23  corporation that governs and operates the Florida Vaccine

24  Research Institute or its subsidiaries unless pursuant to law,

25  an order of a court or administrative body, a legislative

26  proceeding pursuant to s. 5, Art. III of the State

27  Constitution, or a private agreement that provides that the

28  information may be released to the public; and

29         5.  Is information concerning:

30         a.  Internal auditing controls and reports of internal

31  auditors;

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    Florida Senate - 2005                                  SB 2034
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 1         b.  Matters reasonably encompassed in privileged

 2  attorney-client communications;

 3         c.  Bids or other contractual data, banking records,

 4  and credit agreements the disclosure of which would impair the

 5  efforts of the not-for-profit corporation that governs and

 6  operates the Florida Vaccine Research Institute or its

 7  subsidiaries to contract for goods or services on favorable

 8  terms;

 9         d.  Information relating to private contractual data,

10  the disclosure of which would impair the competitive interest

11  of the provider of the information;

12         e.  Corporate officer and employee personnel

13  information;

14         f.  Information relating to the proceedings and records

15  of credentialing panels and committees and of the governing

16  board of the not-for-profit corporation that governs and

17  operates the Florida Vaccine Research Institute or its

18  subsidiaries relating to credentialing;

19         g.  Minutes of meetings of the governing board of the

20  not-for-profit corporation that governs and operates the

21  Florida Vaccine Research Institute and its subsidiaries,

22  except minutes of meetings open to the public pursuant to

23  subsection (2);

24         h.  Information that reveals plans for marketing

25  services that the corporation that operates and governs the

26  Florida Vaccine Research Institute or its subsidiaries

27  reasonably expect to be provided by competitors;

28         i.  Trade secrets as defined in s. 688.002, including

29  reimbursement methodologies or rates; or

30         j.  The identity of donors or prospective donors of

31  property who wish to remain anonymous or any information

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    Florida Senate - 2005                                  SB 2034
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 1  identifying such donors or prospective donors. The anonymity

 2  of these donors or prospective donors must be maintained in

 3  the auditor's report.

 4         (2)  Meetings of the governing board of the

 5  not-for-profit corporation that governs and operates the

 6  Florida Vaccine Research Institute and meetings of the

 7  subsidiaries of that not-for-profit corporation at which the

 8  expenditure of funds appropriated to the not-for-profit

 9  corporation by the state are discussed or reported must be

10  open to the public in accordance with s. 286.011 and s. 24(b),

11  Art. I of the State Constitution, unless made confidential or

12  exempt by law. Other meetings of the governing board of the

13  not-for-profit corporation that operates and governs the

14  Florida Vaccine Research Institute and of the subsidiaries of

15  the not-for-profit corporation are exempt from s. 286.011 and

16  s. 24(b), Art. I of the State Constitution.

17         (3)  This section is subject to the Open Government

18  Sunset Review Act of 1995 in accordance with s. 119.15, and

19  shall stand repealed on October 2, 2010, unless reviewed and

20  saved from repeal through reenactment by the Legislature.

21         Section 2.  (1)  The Legislature finds that it is a

22  public necessity that trade secrets of the not-for-profit

23  corporation that governs and operates the Florida Vaccine

24  Research Institute or its subsidiaries be confidential and

25  exempt from public disclosure. In accordance with that

26  definition, a "trade secret" consists of information that

27  derives actual or potential economic value from not being

28  readily ascertainable by others and is the subject of

29  reasonable efforts to maintain its secrecy. The Legislature

30  has determined that "trade secrets" may include information

31  relating to research discoveries and business transactions

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    Florida Senate - 2005                                  SB 2034
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 1  resulting from research discoveries and that the disclosure of

 2  such information would adversely affect the not-for-profit

 3  corporation that governs and operates the Florida Vaccine

 4  Research Institute and its subsidiaries, which are resources

 5  of the state of Florida, and would create an unfair

 6  competitive advantage to a person receiving such information.

 7         (2)  Pursuant to section 119.15, Florida Statutes, the

 8  Legislature finds that the amendment to subparagraph

 9  1004.43(8)(b)10., Florida Statutes, referencing information

10  relating to methods of manufacture or production, potential

11  trade secrets, potentially patentable materials, or

12  proprietary information received, generated, ascertained, or

13  discovered during the course of research conducted by the

14  not-for-profit corporation that governs and operates the

15  Florida Vaccine Research Institute or any of its subsidiaries,

16  and business transactions resulting from such research, does

17  not substantially amend the existing exemption. The

18  Legislature finds and declares that each of the classes of

19  information specified meets the test of being a "trade secret"

20  within the meaning of the term as defined in section 688.002,

21  Florida Statutes. To fulfill its legislative mandate of

22  research, education, treatment, prevention, and the early

23  detection of flu-related diseases, an exemption of

24  confidential and proprietary information relating to business

25  transactions will allow the not-for-profit corporation that

26  governs and operates the Florida Vaccine Research Institute

27  and its subsidiaries to more effectively partner with other

28  researchers. Although information relating to business

29  transactions may not qualify as intellectual property, the

30  terms and pricing of a research transaction and, in some

31  cases, the very fact of a research transaction may be

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    Florida Senate - 2005                                  SB 2034
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 1  considered confidential information concerning an entity. This

 2  exemption will assure collaborating partners that their

 3  confidential business information will remain confidential and

 4  exempt from public disclosure if shared with the

 5  not-for-profit corporation that operates and governs the

 6  Florida Vaccine Research Institute or its subsidiaries. The

 7  Legislature finds that the ability of the not-for-profit

 8  corporation that governs and operates the Florida Vaccine

 9  Research Institute and its subsidiaries to conduct meaningful

10  scientific research and meet their obligations will be

11  significantly impaired if certain proprietary business

12  information or scientific research is not made confidential

13  and exempt from public disclosure. Specifically, the

14  Legislature finds that it is a public necessity to make exempt

15  and confidential proprietary business information or

16  scientific research that relates to methods of manufacture or

17  production, potential trade secrets, patentable material,

18  actual trade secrets as defined in section 688.002, Florida

19  Statutes, or proprietary information received, generated,

20  ascertained, or discovered by or through the not-for-profit

21  corporation that operates and governs the Florida Vaccine

22  Research Institute and its subsidiaries because the disclosure

23  of this information would negate the benefit expected by

24  exposing valuable proprietary work to competitors. Business

25  transactions resulting from scientific research must be held

26  confidential and exempt from public records requirements

27  because the disclosure of such information would create an

28  unfair competitive advantage for the person receiving such

29  information. Such an advantage would adversely affect the

30  not-for-profit corporation that operates and governs the

31  Florida Vaccine Research Institute and its subsidiaries. If

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    Florida Senate - 2005                                  SB 2034
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 1  confidential and exempt information regarding research in

 2  progress were released pursuant to a public records request,

 3  others would be allowed to derive benefit from the research

 4  without compensation or reimbursement to the not-for-profit

 5  corporation that operates and governs the Florida Vaccine

 6  Research Institute or its subsidiaries. Without the exemptions

 7  provided for in this act, the disclosure of confidential and

 8  exempt information would place the not-for-profit corporation

 9  that operates and governs the Florida Vaccine Research

10  Institute or its subsidiaries on an unequal footing in the

11  marketplace as compared with other research competitors whose

12  information is kept confidential and exempt. The Legislature

13  finds that disclosure of confidential and exempt information

14  would adversely affect the not-for-profit corporation that

15  operates and governs the Florida Vaccine Research Institute or

16  its subsidiaries in fulfilling the mission of research.

17         (3)  The Legislature further finds that information

18  received by the not-for-profit corporation that operates and

19  governs the Florida Vaccine Research Institute or its

20  subsidiaries from a person in this or another state or nation

21  or the Federal Government which is otherwise exempt or

22  confidential under the laws of this or another state or nation

23  or under federal law should remain exempt or confidential

24  because the highly confidential nature of research

25  necessitates that the not-for-profit corporation that operates

26  and governs the Florida Vaccine Research Institute or its

27  subsidiaries be authorized to maintain the status of exempt or

28  confidential information received from the sponsors of

29  research. Without the exemptions provided for in this act, the

30  disclosure of exempt and confidential information would place

31  the not-for-profit corporation that operates and governs the

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 1  Florida Vaccine Research Institute or its subsidiaries on an

 2  unequal footing in the marketplace as compared with its

 3  private health care and medical research competitors that are

 4  not required to disclose such exempt and confidential

 5  information. The Legislature finds that the disclosure of such

 6  exempt and confidential information would adversely affect the

 7  not-for-profit corporation that operates and governs the

 8  Florida Vaccine Research Institute or its subsidiaries in

 9  fulfilling their mission of promoting research and development

10  for the prediction, treatment, prevention, and cure of

11  flu-related diseases.

12         Section 3.  This act shall take effect upon becoming a

13  law.

14  

15            *****************************************

16                          SENATE SUMMARY

17    Exempts certain information that constitutes "trade
      secrets" of the corporation that operates the Florida
18    Vaccine Research Institute and the corporation's
      subsidiaries and information received which is already
19    made confidential by the laws of this or another state or
      nation or under federal law from public-records
20    disclosure. Provides for future review and repeal of the
      exemption.
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