| 1 | A bill to be entitled |
| 2 | An act relating to public records and public meetings |
| 3 | exemptions; creating s. 641.2241, F.S.; providing for |
| 4 | confidentiality of certain documents and information of a |
| 5 | health maintenance organization relating to risk-based |
| 6 | capital; providing an exemption from certain disclosure |
| 7 | requirements; exempting from certain public meetings |
| 8 | requirements certain hearings conducted by the Office of |
| 9 | Insurance Regulation relating to a health maintenance |
| 10 | organization's risk-based capital reports and plans; |
| 11 | providing hearing requirements; providing exceptions; |
| 12 | providing for termination of the exemptions; providing for |
| 13 | future review and repeal under the Open Government Sunset |
| 14 | Review Act; providing a finding of public necessity; |
| 15 | providing a contingent effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Section 641.2241, Florida Statutes, is created |
| 20 | to read: |
| 21 | 641.2241 Confidentiality of risk-based capital |
| 22 | information.-- |
| 23 | (1) All risk-based capital reports, adjusted risk-based |
| 24 | capital reports, risk-based capital plans, and revised risk- |
| 25 | based capital plans, and the working papers and reports of |
| 26 | examination or analysis of a health maintenance organization |
| 27 | performed pursuant to a plan, corrective order, or regulatory |
| 28 | action level event, with respect to any health maintenance |
| 29 | organization, held by the office pursuant to s. 641.224, and |
| 30 | transcripts of hearings made as required by this section, are |
| 31 | confidential and exempt from s. 119.07(1) and s. 24(a), Art. I |
| 32 | of the State Constitution. |
| 33 | (2) Hearings conducted pursuant to s. 641.224 relating to |
| 34 | the office's actions regarding any health maintenance |
| 35 | organization's risk-based capital plan, revised risk-based |
| 36 | capital plan, risk-based capital report, or adjusted risk-based |
| 37 | capital report are exempt from s. 286.011 and s. 24(b), Art. I |
| 38 | of the State Constitution, except as otherwise provided in this |
| 39 | section. Such hearings shall be recorded by a court reporter. |
| 40 | The office shall open such hearings or provide to a department, |
| 41 | agency, or instrumentality of this or another state or of the |
| 42 | United States a copy of the transcript of such hearings or |
| 43 | information otherwise made confidential and exempt pursuant to |
| 44 | this section if the office determines the disclosure is |
| 45 | necessary or proper for the enforcement of the laws of the |
| 46 | United States or of this or another state. |
| 47 | (3) The exemptions provided by this section shall |
| 48 | terminate: |
| 49 | (a) One year following the conclusion of any risk-based |
| 50 | capital plan or revised risk-based capital plan; or |
| 51 | (b) On the date of entry of an order of seizure, |
| 52 | rehabilitation, or liquidation pursuant to chapter 631. |
| 53 | (4) This section is subject to the Open Government Sunset |
| 54 | Review Act in accordance with s. 119.15 and is repealed on |
| 55 | October 2, 2012, unless reviewed and saved from repeal through |
| 56 | reenactment by the Legislature. |
| 57 | Section 2. The Legislature finds that the public records |
| 58 | and meetings exemptions provided for in s. 641.2241, Florida |
| 59 | Statutes, are a public necessity because unrestricted public |
| 60 | access to information, proceedings, and hearings relating to a |
| 61 | health management organization's risk-based capital plan and |
| 62 | risk-based capital adjusted report, and documents and |
| 63 | examination reports related thereto, might damage the health |
| 64 | maintenance organization if made available to its competitors |
| 65 | and could substantially affect the solvency of a health |
| 66 | maintenance organization. Damage to a health maintenance |
| 67 | organization's solvency could have a substantial negative effect |
| 68 | on the public as well as on other health maintenance |
| 69 | organizations. Furthermore, public access to such information |
| 70 | would not serve a public interest in that such information can |
| 71 | be misleading as to a health maintenance organization's ranking |
| 72 | because risk-based data does not reflect all of the factors |
| 73 | involved in the assessment of a health maintenance |
| 74 | organization's financial strength. The Legislature also finds |
| 75 | that risk-based capital reports and plans reveal a health |
| 76 | maintenance organization's investment competitive advantage in |
| 77 | the private market. Public access to such information could |
| 78 | affect a health maintenance organization's ability to do |
| 79 | business in this state and the health maintenance organization's |
| 80 | solvency. Therefore, it is a public necessity to maintain the |
| 81 | confidentiality of this information and these proceedings and |
| 82 | hearings within the regulatory body responsible for the |
| 83 | oversight of health maintenance organization solvency. Finally, |
| 84 | the Legislature finds that public access, through other means, |
| 85 | to information regarding the financial strength of a health |
| 86 | maintenance organization and its ranking with regards to other |
| 87 | health maintenance organizations is otherwise adequate. |
| 88 | Section 3. This act shall take effect January 1, 2007, if |
| 89 | House Bill 1277 or similar legislation is adopted in the same |
| 90 | legislative session or an extension thereof and becomes a law. |