Florida Senate - 2012 CS for SB 1406 By the Committee on Banking and Insurance; and Senator Altman 597-02427-12 20121406c1 1 A bill to be entitled 2 An act relating to public records; creating s. 3 626.84195, F.S.; providing an exemption from public 4 records requirements for proprietary business 5 information provided by title insurance agencies and 6 insurers to the Office of Insurance Regulation; 7 providing a definition; authorizing disclosure of 8 aggregated information; providing for future 9 legislative review and repeal of the exemption under 10 the Open Government Sunset Review Act; providing a 11 statement of public necessity; providing a contingent 12 effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Section 626.84195, Florida Statutes, is created 17 to read: 18 626.84195 Confidentiality of information supplied by title 19 insurance agencies and insurers.— 20 (1) As used in this section, the term “proprietary business 21 information” means information that: 22 (a) Is owned or controlled by a title insurance agency or 23 insurer requesting confidentiality under this section; 24 (b) Is intended to be and is treated by the title insurance 25 agency or insurer as private in that the disclosure of the 26 information would cause harm to the business operations of the 27 title insurance agency or insurer; 28 (c) Has not been publicly disclosed unless disclosed 29 pursuant to a statutory provision, an order of a court or 30 administrative body, or a private agreement, providing that the 31 information may be released to the public; and 32 (d) Concerns: 33 1. Business plans; 34 2. Internal auditing controls and reports of internal 35 auditors; 36 3. Reports of external auditors for privately held 37 companies; 38 4. Trade secrets, as defined in s. 688.002; or 39 5. Financial information, including, but not limited to, 40 revenue data, loss expense data, gross receipts, taxes paid, 41 capital investment, customer identification, and employee wages. 42 (2) Proprietary business information provided to the office 43 by a title insurance agency or insurer is confidential and 44 exempt from s. 119.07(1) and s. 24(a), Art. I of the State 45 Constitution until such information is otherwise publicly 46 available or is no longer treated by the title insurance agency 47 or insurer as proprietary business information. However, 48 information provided by multiple title insurance agencies and 49 insurers may be aggregated on an industry-wide basis and 50 disclosed to the public as long as the specific identities of 51 the agencies or insurers are not revealed. 52 (3) This section is subject to the Open Government Sunset 53 Review Act in accordance with s. 119.15 and shall stand repealed 54 on October 2, 2017, unless reviewed and saved from repeal 55 through reenactment by the Legislature. 56 Section 2. The Legislature finds that it is a public 57 necessity that proprietary business information relating to the 58 title insurance industry, title insurers, and title insurance 59 agents, including, but not limited to, trade secrets, be made 60 confidential and exempt from the requirements of s. 119.07(1), 61 Florida Statutes, and s. 24(a), Article I of the State 62 Constitution. The disclosure of information, such as revenue, 63 loss expense data, analyses of gross receipts, the amount of 64 taxes paid, the amount of capital investment, customer 65 identification, the amount of employee wages paid, and the 66 detailed documentation substantiating such performance 67 information, could injure a business in the marketplace by 68 providing its competitors with detailed insights into the 69 financial status and the strategic plans of the business, 70 thereby diminishing the advantage that the business maintains 71 over competitors that do not possess such information. Without 72 this exemption, title insurance agencies and title insurers, 73 whose records are generally not required to be open to the 74 public, might refrain from providing accurate and unbiased data, 75 thus impairing the Office of Insurance Regulation’s ability to 76 set fair and adequate title insurance rates. Proprietary 77 business information derives actual or potential independent 78 economic value from not being generally known to, and not being 79 readily ascertainable by proper means by, other persons who can 80 derive economic value from its disclosure or use. The Office of 81 Insurance Regulation, or any subsidiary or contractor of the 82 office, in performing its lawful duties and responsibilities, 83 may need to obtain information from the proprietary business 84 information. Without an exemption from public records 85 requirements for proprietary business information held by the 86 Office of Insurance Regulation or its designee, such information 87 becomes a public record when received and must be divulged upon 88 request. Divulgence of any proprietary business information 89 under the public records law would destroy the value of that 90 property to the proprietor, causing a financial loss not only to 91 the proprietor but also to the residents of this state due to 92 the loss of reliable financial data necessary for fair and 93 adequate rate regulation. Release of proprietary business 94 information would give business competitors an unfair advantage 95 and weaken the position in the marketplace of the proprietor 96 that owns or controls the proprietary business information. The 97 harm to businesses in the marketplace and to the effective 98 administration of the ratemaking function caused by the public 99 disclosure of such information far outweighs the public benefits 100 derived from its release. In addition, the confidentiality 101 provided by this act does not preclude the reporting of 102 statistics in the aggregate concerning the collection of data, 103 as well as the names of the title insurance agencies and title 104 insurers participating in the data collection. Such aggregate 105 reported data is available to the public and is important to an 106 assessment of the setting of title insurance premiums. Thus, the 107 Legislature declares that it is a public necessity that 108 proprietary business information of title insurers, title 109 insurance agents, and the title insurance industry held by the 110 Office of Insurance Regulation, or any subsidiary, contractor, 111 or agent of the office, be made confidential and exempt from s. 112 119.07(1), Florida Statutes, and s. 24(a), Article I of the 113 State Constitution. 114 Section 3. This act shall take effect on the same date that 115 CS for SB 1404 or similar legislation takes effect, if such 116 legislation is adopted in the same legislative session, or an 117 extension thereof, and becomes law.