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.