HB 645

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 financial information, such
5	as revenue, loss, and expense data, which is supplied
6	periodically by a licensed title insurance agency to
7	the Department of Financial Services in order to
8	assist the department in analyzing title insurance
9	premium rates, title search costs, and the financial
10	viability of the title insurance industry in the
11	state; requiring that the information be supplied to
12	the department by a specified date; requiring the
13	department to adopt rules; authorizing the department
14	to disclose the total combined responses of all
15	agencies and reporting entities; providing for future
16	legislative review and repeal of the exemption under
17	the Open Government Sunset Review Act; providing a
18	statement of public necessity; providing a contingent
19	effective date.
20
21	Be It Enacted by the Legislature of the State of Florida:
22
23	Section 1.  Section 626.84195, Florida Statutes, is created
24	to read:
25	626.84195  Collection of title insurance information;
26	confidential information.-
27	(1)(a)  Each title insurance agency licensed to do business
28	in this state and each insurer doing direct, retail, or
29	affiliated business in this state shall maintain and submit
30	information, including revenue, loss, and expense data, as the
31	department determines necessary to assist in the analysis of
32	title insurance premium rates, title search costs, and the
33	financial viability of the title insurance industry in this
34	state.
35	(b)  This information must be transmitted to the department
36	no later than March 31 of each year following the reporting
37	year.
38	(c)  The department shall adopt rules pursuant to ss.
39	120.536(1) and 120.54 to administer this section.
40	(2)  The financial information supplied by each title
41	insurance agency or insurer is confidential and exempt from the
42	provisions of s. 119.07(1) and s. 24(a), Art. I of the State
43	Constitution in order to prevent disclosure of private
44	information of that agency or insurer to the public. However,
45	the total combined responses of all the agencies and reporting
46	insurers may be disclosed to the public as long as the specific
47	identities of the agencies or insurers are not revealed.
48	(3)  This section is subject to the Open Government Sunset
49	Review Act in accordance with s. 119.15 and shall stand repealed
50	on October 2, 2017, unless reviewed and saved from repeal
51	through reenactment by the Legislature.
52	Section 2.  The Legislature finds that it is a public
53	necessity that proprietary business information relating to the
54	title insurance industry, title insurers, and title insurance
55	agents, including, but not limited to, trade secrets, be made
56	confidential and exempt from the requirements of s. 119.07(1),
57	Florida Statutes, and s. 24(a), Article I of the State
58	Constitution. The disclosure of information, such as revenue,
59	loss expense data, analyses of gross receipts, the amount of
60	taxes paid, the amount of capital investment, customer
61	identification, the amount of employee wages paid, and the
62	detailed documentation to substantiate such performance
63	information, could injure a business in the marketplace by
64	providing its competitors with detailed insights into the
65	financial status and the strategic plans of the business,
66	thereby diminishing the advantage that the business maintains
67	over competitors that do not possess such information. Without
68	this exemption, title insurance agencies and title insurers,
69	whose records are generally not required to be open to the
70	public, may refrain from providing accurate and unbiased data
71	and would thus impair the Department of Financial Services in
72	setting fair and adequate title insurance rates. Proprietary
73	business information derives actual or potential independent
74	economic value from not being generally known to, and not being
75	readily ascertainable by proper means by, other persons who can
76	derive economic value from its disclosure or use. The Department
77	of Financial Services, or any subsidiary or contractor of the
78	department, in performing its lawful duties and
79	responsibilities, may need to obtain information from the
80	proprietary business information. Without an exemption from
81	public records requirements for proprietary business information
82	held by the department or its designee, such information becomes
83	a public record when received and must be divulged upon request.
84	Divulgence of any proprietary business information under public
85	records laws would destroy the value of that property to the
86	proprietor, causing a financial loss not only to the proprietor
87	but also to the residents of this state due to the loss of
88	reliable financial data necessary for fair and adequate rate
89	regulation. Release of proprietary business information would
90	give business competitors an unfair advantage and weaken the
91	position of the proprietor of the proprietary business
92	information in the marketplace. The harm to businesses in the
93	marketplace and to the effective administration of the
94	ratemaking function caused by the public disclosure of such
95	information far outweighs the public benefits derived from its
96	release. In addition, the confidentiality provided by this act
97	does not preclude the reporting of statistics in the aggregate
98	concerning the collection of data, as well as the names of the
99	title insurance agencies and title insurers participating in the
100	data collection. Such aggregate reported data is available to
101	the public and is important to an assessment of the setting of
102	title insurance premiums. Thus, the Legislature declares that it
103	is a public necessity that proprietary business information of
104	title insurers, title insurance agents, and the title insurance
105	industry held by the Department of Financial Services, or any
106	subsidiary, contractor, or agent of the department, be made
107	confidential and exempt from s. 119.07(1), Florida Statutes, and
108	s. 24(a), Article I of the State Constitution.
109	Section 3.  This act shall take effect on the same date
110	that HB 643 or similar legislation takes effect, if such
111	legislation is adopted in the same legislative session, or an
112	extension thereof, and becomes law.

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