Florida Senate - 2012 CS for CS for SB 1406 By the Committees on Governmental Oversight and Accountability; and Banking and Insurance; and Senator Altman 585-03097-12 20121406c2 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 provided to the 58 Office of Insurance Regulation by a title insurance agency or 59 insurer, 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 data, loss expense data, gross receipts, the amount of taxes 64 paid, the amount of capital investment, customer identification, 65 and the amount of employee wages paid, could injure a business 66 in the marketplace by providing its competitors with detailed 67 insights into the financial status and the strategic plans of 68 the business, thereby diminishing the advantage that the 69 business maintains over competitors that do not possess such 70 information. Without this exemption, title insurance agencies 71 and title insurers, whose records are generally not required to 72 be open to the public, might refrain from providing accurate and 73 unbiased data, thus impairing the Office of Insurance 74 Regulation’s ability to set fair and adequate title insurance 75 rates. Proprietary business information derives actual or 76 potential independent economic value from not being generally 77 known to, and not being readily ascertainable by proper means 78 by, other persons who can derive economic value from its 79 disclosure or use. The Office of Insurance Regulation, in 80 performing its lawful duties and responsibilities, may need to 81 obtain information from the proprietary business information. 82 Without an exemption from public records requirements for 83 proprietary business information provided to the Office of 84 Insurance Regulation, such information becomes a public record 85 when received and must be divulged upon request. Divulgence of 86 any proprietary business information under the public records 87 law would destroy the value of that property to the proprietor, 88 causing a financial loss not only to the proprietor but also to 89 the residents of this state due to the loss of reliable 90 financial data necessary for fair and adequate rate regulation. 91 Release of proprietary business information would give business 92 competitors an unfair advantage and weaken the position in the 93 marketplace of the proprietor that owns or controls the 94 proprietary business information. The harm to businesses in the 95 marketplace and to the effective administration of the 96 ratemaking function caused by the public disclosure of such 97 information far outweighs the public benefits derived from its 98 release. In addition, the confidentiality provided by this act 99 does not preclude the reporting of statistics in the aggregate 100 concerning the collection of data, as well as the names of the 101 title insurance agencies and title insurers participating in the 102 data collection. Such aggregate reported data is available to 103 the public and is important to an assessment of the setting of 104 title insurance premiums. Thus, the Legislature declares that it 105 is a public necessity that proprietary business information of 106 title insurers and title insurance agencies provided to the 107 Office of Insurance Regulation be made confidential and exempt 108 from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of 109 the State Constitution. 110 Section 3. This act shall take effect on the same date that 111 CS for SB 1404 or similar legislation takes effect, if such 112 legislation is adopted in the same legislative session, or an 113 extension thereof, and becomes law.