HB 1059

1	A bill to be entitled
2	An act relating to public records; amending s. 517.2015,
3	F.S.; providing an exemption from public records
4	requirements for examination techniques and procedures
5	used by the Office of Financial Regulation of the
6	Department of Financial Services pursuant to the Florida
7	Securities and Investor Protection Act; providing for
8	future review and repeal of the exemption; providing a
9	statement of public necessity; providing an effective
10	date.
11
12	Be It Enacted by the Legislature of the State of Florida:
13
14	Section 1.  Subsection (4) is added to section 517.2015,
15	Florida Statutes, to read:
16	517.2015  Confidentiality of information relating to
17	investigations and examinations.-
18	(4)(a)  Examination techniques and procedures used by the
19	office pursuant to this chapter are confidential and exempt from
20	s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
21	Examination techniques and procedures are the methods,
22	processes, and guidelines used to evaluate regulatory compliance
23	and to collect and analyze data, documents, and testimony for
24	the purpose of documenting violations of this chapter and the
25	rules promulgated thereunder.
26	(b)  Paragraph (a) is subject to the Open Government Sunset
27	Review Act in accordance with s. 119.15 and shall stand repealed
28	on October 2, 2015, unless reviewed and saved from repeal
29	through reenactment by the Legislature.
30	Section 2.  (1)  It is the finding of the Legislature that
31	it is a public necessity that examination techniques and
32	procedures used by the Office of Financial Regulation of the
33	Department of Financial Services pursuant to chapter 517,
34	Florida Statutes, the Florida Securities and Investor Protection
35	Act, be made confidential and exempt from s. 119.07(1) and s.
36	24(a), Art. I of the State Constitution. This exemption is
37	necessary to ensure the effective and efficient administration
38	of the examination program administered by the Office of
39	Financial Regulation under chapter 517, Florida Statutes, which
40	would be significantly impaired without the exemption.
41	(2)  Examinations are an essential component of securities
42	regulation. The mere existence of an examination program fosters
43	regulatory compliance and deters fraud and abuse by industry
44	participants. Examinations often detect violations in their
45	early stages. This early detection allows corrective action to
46	be taken before significant harm can be done to investors. Due
47	to the importance of such examinations, state regulators devote
48	extensive resources to devising effective examination techniques
49	and procedures.
50	(3)  Revealing examination techniques or procedures would
51	undermine the examination process and facilitate evasion of the
52	law. Any advance notice of the areas of inquiry to be explored
53	during an examination might prompt a person to conceal evidence
54	of deficiencies or fabricate evidence of compliance. Without the
55	exemption, the Office of Financial Regulation's ability to
56	uncover misconduct and evaluate policies and procedures through
57	the examination process would be significantly impaired.
58	(4)  Additionally, without such an exemption the Office of
59	Financial Regulation's ability to participate in joint
60	examinations with other securities regulators would be impaired
61	as release of this information would compromise the integrity of
62	such joint examinations. The office also would not be able to
63	accept or use confidential examination techniques and procedures
64	developed by other regulators. Thus, the absence of an exemption
65	would create a situation that reduces the office's ability to
66	leverage its limited resources.
67	Section 3.  This act shall take effect July 1, 2010.

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