| 1 | A bill to be entitled |
| 2 | An act relating to public records; creating s. 517.2016, |
| 3 | F.S.; providing an exemption from public records |
| 4 | requirements for information that would reveal examination |
| 5 | techniques and procedures used by the Office of Financial |
| 6 | Regulation pursuant to the Florida Securities and Investor |
| 7 | Protection Act; providing a definition; providing for |
| 8 | retroactive application of the public record exemption; |
| 9 | providing an exception to the exemption for other |
| 10 | governmental entities having oversight or regulatory or |
| 11 | law enforcement authority; providing for future review and |
| 12 | repeal of the exemption; providing a statement of public |
| 13 | necessity; providing an effective date. |
| 14 |
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| 15 | Be It Enacted by the Legislature of the State of Florida: |
| 16 |
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| 17 | Section 1. Section 517.2016, Florida Statutes, is created |
| 18 | to read: |
| 19 | 517.2016 Public record exemption; examination techniques |
| 20 | and procedures.- |
| 21 | (1) For purposes of this section, "examination techniques |
| 22 | and procedures" are the methods, processes, and guidelines used |
| 23 | to evaluate regulatory compliance and to collect and analyze |
| 24 | data, records, and testimony for the purpose of documenting |
| 25 | violations of this chapter and the rules promulgated thereunder. |
| 26 | (2) Information that would reveal examination techniques |
| 27 | or procedures used by the office pursuant to this chapter is |
| 28 | confidential and exempt from s. 119.07(1) and s. 24(a), Art. I |
| 29 | of the State Constitution. This exemption applies to such |
| 30 | information held by the office before, on, or after the |
| 31 | effective date of this exemption. |
| 32 | (3) Confidential and exempt information that would reveal |
| 33 | examination techniques or procedures may be provided by the |
| 34 | office to another governmental entity having oversight or |
| 35 | regulatory or law enforcement authority. |
| 36 | (4) This section is subject to the Open Government Sunset |
| 37 | Review Act in accordance with s. 119.15 and shall stand repealed |
| 38 | on October 2, 2015, unless reviewed and saved from repeal |
| 39 | through reenactment by the Legislature. |
| 40 | Section 2. (1) It is the finding of the Legislature that |
| 41 | it is a public necessity that information that would reveal |
| 42 | examination techniques or procedures used by the Office of |
| 43 | Financial Regulation pursuant to chapter 517, Florida Statutes, |
| 44 | the Florida Securities and Investor Protection Act, be made |
| 45 | confidential and exempt from s. 119.07(1) and s. 24(a), Art. I |
| 46 | of the State Constitution. This exemption is necessary to ensure |
| 47 | the Office of Financial Regulation's ability to effectively and |
| 48 | efficiently administer the examination program under chapter |
| 49 | 517, Florida Statutes, which would be significantly impaired |
| 50 | without the exemption. |
| 51 | (2) Examinations are an essential component of securities |
| 52 | regulation. The mere existence of an examination program fosters |
| 53 | regulatory compliance and deters fraud and abuse by industry |
| 54 | participants. Examinations often detect violations in their |
| 55 | early stages. This early detection allows corrective action to |
| 56 | be taken before significant harm can be done to investors. Due |
| 57 | to the importance of such examinations, state regulators devote |
| 58 | extensive resources to devising effective examination techniques |
| 59 | and procedures. |
| 60 | (3) Allowing access to information revealing examination |
| 61 | techniques or procedures would undermine the examination process |
| 62 | and facilitate evasion of the law. Any advance notice of the |
| 63 | areas of inquiry to be explored during an examination might |
| 64 | prompt a person to conceal evidence of deficiencies or fabricate |
| 65 | evidence of compliance. Without the exemption, the Office of |
| 66 | Financial Regulation's ability to uncover misconduct and |
| 67 | evaluate policies and procedures through the examination process |
| 68 | would be significantly impaired. |
| 69 | (4) Additionally, without such an exemption the Office of |
| 70 | Financial Regulation's ability to participate in joint |
| 71 | examinations with other securities regulators would be impaired |
| 72 | as release of this information would compromise the integrity of |
| 73 | such joint examinations. The office also would not be able to |
| 74 | accept or use confidential examination techniques and procedures |
| 75 | developed by other regulators. Thus, the absence of an exemption |
| 76 | would create a situation that reduces the office's ability to |
| 77 | leverage its limited resources. |
| 78 | Section 3. This act shall take effect upon becoming a law. |