Florida Senate - 2012                              CS for SB 714
       
       
       
       By the Committee on Regulated Industries; and Senator Bogdanoff
       
       
       
       
       580-01763-12                                           2012714c1
    1                        A bill to be entitled                      
    2         An act relating to public records; creating s.
    3         551.303, F.S.; providing definitions; providing an
    4         exemption from public records requirements for
    5         confidential and proprietary business information and
    6         trade secrets received by the Department of Gaming
    7         Control; providing an exemption from public records
    8         requirements for information held that would reveal
    9         investigation techniques and procedures used by the
   10         Department of Gaming Control; providing a definition;
   11         providing an exception to the exemption for other
   12         governmental entities having oversight or regulatory
   13         or law enforcement authority; providing penalties for
   14         an employee of the department who violates the
   15         provisions of the act; providing for future review and
   16         repeal of the exemption under the Open Government
   17         Sunset Review Act; providing a statement of public
   18         necessity; providing a contingent effective date.
   19  
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Section 551.303, Florida Statutes, is created to
   23  read:
   24         551.303 Confidentiality of records.—
   25         (1) DEFINITIONS.—As used in this section, the term:
   26         (a) “Proprietary confidential business information” means
   27  information that is owned or controlled by an applicant for a
   28  license or a licensee under this part who requests
   29  confidentiality under this section; that is intended to be and
   30  is treated by the applicant or licensee as private in that the
   31  disclosure of the information would cause harm to the business
   32  operations of the applicant or licensee; that has not been
   33  disclosed unless disclosed pursuant to a statute or rule, an
   34  order of a court or administrative body, or a private agreement
   35  providing that the information may be released to the public;
   36  and that is information concerning:
   37         1. Business plans;
   38         2. Internal auditing controls and reports of internal
   39  auditors; or
   40         3. Reports of external auditors for privately held
   41  companies.
   42         (b) “Trade secret” has the same meaning as in s. 688.002.
   43         (2) TRADE SECRETS.—Trade secrets held by the Department of
   44  Gaming Control are confidential and exempt from s. 119.07(1) and
   45  s. 24(a), Art. I of the State Constitution.
   46         (3) PROPRIETARY CONFIDENTIAL BUSINESS INFORMATION.
   47  Proprietary confidential business information held by the
   48  Department of Gaming Control is confidential and exempt from s.
   49  119.07(1) and s. 24(a), Art. I of the State Constitution until
   50  such information is otherwise publicly available or is no longer
   51  treated by an applicant for a license or a licensee under this
   52  part as proprietary confidential business information.
   53         (4) IDENTIFICATION, ACCOUNT, AND REGISTRATION NUMBERS.—A
   54  federal employer identification number, unemployment
   55  compensation account number, or Florida sales tax registration
   56  number held by the Department of Gaming Control is confidential
   57  and exempt from s. 119.07(1) and s. 24(a), Art. I of the State
   58  Constitution.
   59         (5) INVESTIGATION TECHNIQUES AND PROCEDURES.—
   60         (a) As used in this subsection, the term “investigation
   61  techniques and procedures” means the methods, processes, and
   62  guidelines used to evaluate regulatory compliance and to collect
   63  and analyze data, records, and testimony for the purpose of
   64  documenting violations of this part and the rules adopted
   65  thereunder.
   66         (b) Information that would reveal examination techniques or
   67  procedures used by the Department of Gaming Control pursuant to
   68  this part is confidential and exempt from s. 119.07(1) and s.
   69  24(a), Art. I of the State Constitution.
   70         (c) Confidential and exempt information that would reveal
   71  examination techniques or procedures may be provided by the
   72  Department of Gaming Control to another governmental entity
   73  having oversight or regulatory or law enforcement authority.
   74         (6) PENALTIES.—Any person who is an employee of the
   75  Department of Gaming Control who violates this section commits a
   76  misdemeanor of the second degree, punishable as provided in s.
   77  775.082 or s. 775.083.
   78         (7) LEGISLATIVE REVIEW OF EXEMPTIONS.—This section is
   79  subject to the Open Government Sunset Review Act in accordance
   80  with s. 119.15 and shall stand repealed on October 2, 2017,
   81  unless reviewed and saved from repeal through reenactment by the
   82  Legislature.
   83         Section 2. (1) It is the finding of the Legislature that it
   84  is a public necessity that information relating to proprietary
   85  confidential business information and trade secrets under part
   86  III of chapter 551, Florida Statutes, be made confidential and
   87  exempt from s. 119.07(1), Florida Statutes, and s. 24(a),
   88  Article I of the State Constitution. This exemption is necessary
   89  to ensure that the best qualified applicants are not deterred
   90  from applying for licenses by the prospect of the disclosure of
   91  proprietary confidential business information and trade secrets.
   92         (2) Part III of chapter 551, Florida Statutes, provides for
   93  a competitive process for the award of a destination resort
   94  license. The selection of the best qualified applicant for a
   95  license is critical for the state to ensure that the state
   96  receives the most economic benefits and greatest amount of tax
   97  revenues in granting a resort license.
   98         (3)(a) It is the finding of the Legislature that it is a
   99  public necessity that information that would reveal
  100  investigation techniques or procedures used by the Department of
  101  Gaming Control pursuant to part III of chapter 551, Florida
  102  Statutes, be made confidential and exempt from s. 119.07(1),
  103  Florida Statutes, and s. 24(a), Article I of the State
  104  Constitution. This exemption is necessary to ensure the
  105  Department of Gaming Control’s ability to effectively and
  106  efficiently enforce compliance with part III of chapter 551,
  107  Florida Statutes, which would be significantly impaired without
  108  the exemption.
  109         (b) Investigations are an essential component of gaming
  110  regulation. The mere existence of an investigation program
  111  fosters regulatory compliance and deters fraud and abuse by
  112  industry participants. Investigations often detect violations in
  113  their early stages. Early detection allows corrective action to
  114  be taken before significant harm can be done to the state. Due
  115  to the importance of such investigations, state regulators
  116  devote extensive resources to devising effective investigation
  117  techniques and procedures.
  118         (c) Allowing access to information revealing investigation
  119  techniques or procedures would undermine the investigation
  120  process and facilitate evasion of the law. Any advance notice of
  121  the areas of inquiry to be explored during an examination might
  122  prompt a person to conceal evidence of deficiencies or fabricate
  123  evidence of compliance. Without the exemption, the Department of
  124  Gaming Control’s ability to uncover misconduct and evaluate
  125  policies and procedures through the investigation process would
  126  be significantly impaired.
  127         (d) Additionally, without such an exemption, the Department
  128  of Gaming Control’s ability to participate in joint
  129  investigations with other regulators would be impaired as
  130  release of this information relating to investigations by other
  131  regulators would compromise the integrity of such joint
  132  investigations. The Department of Gaming Control also would not
  133  be able to accept or use confidential examination techniques and
  134  procedures developed by other regulators. Thus, the absence of
  135  an exemption would create a situation that reduces the
  136  Department of Gaming Control’s ability to leverage its limited
  137  resources.
  138         Section 3. This act shall take effect on the same date that
  139  CS for SB 710 or similar legislation takes effect, if such
  140  legislation is enacted in the same legislative session, or an
  141  extension thereof, and becomes law, and only if this act is
  142  enacted by a two-thirds vote of the membership of each house of
  143  the Legislature.