Florida Senate - 2014 SB 1320
By Senator Richter
23-01916-14 20141320__
1 A bill to be entitled
2 An act relating to public records; creating s.
3 662.148, F.S.; providing an exemption from public
4 records requirements for certain information held by
5 the Office of Financial Regulation relating to a
6 family trust company, licensed family trust company,
7 or foreign licensed family trust company; providing
8 for the authorized release of certain information by
9 the office; permitting the publication of certain
10 information; providing a penalty; providing for future
11 legislative review and repeal of the exemption;
12 amending ss. 662.146 and 662.147, F.S.; providing for
13 additional authorized release of certain information
14 by the office; providing for production of
15 confidential records pursuant to court orders, orders
16 by administrative law judges, and legislative
17 subpoenas; conforming provisions to changes made by
18 the act; providing a statement of public necessity;
19 providing a contingent effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Section 662.148, Florida Statutes, is created
24 and assigned to part IV of chapter 662, Florida Statutes, as
25 created by SB ____, 2014 Regular Session, to read:
26 662.148 Public records exemption; records relating to
27 family trust companies, licensed family trust companies, and
28 foreign licensed family trust companies.—
29 (1) PUBLIC RECORDS EXEMPTION.—The following information
30 held by the Office of Financial Regulation is confidential and
31 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
32 Constitution:
33 (a) All records relating to a registration, an application,
34 or an annual certification of a family trust company, licensed
35 family trust company, or foreign licensed family trust company.
36 (b) All records relating to an examination of a family
37 trust company, licensed family trust company, or foreign
38 licensed family trust company.
39 (c) Reports of examinations, operations, or conditions of a
40 family trust company, licensed family trust company, or foreign
41 licensed family trust company, including working papers.
42 (d) Any portion of a list of names of the shareholders or
43 members of a family trust company, licensed family trust
44 company, or foreign licensed family trust company.
45 (e) Information received by the office from a person from
46 another state or nation or the Federal Government which is
47 otherwise confidential or exempt pursuant to the laws of that
48 state or nation or pursuant to federal law.
49 (2) AUTHORIZED RELEASE OF CONFIDENTIAL AND EXEMPT
50 INFORMATION.—Information made confidential and exempt under
51 subsection (1) may be disclosed by the Office of Financial
52 Regulation to:
53 (a) The authorized representative or representatives of the
54 family trust company, licensed family trust company, or foreign
55 licensed family trust company under examination. The authorized
56 representative or representatives shall be identified in a
57 resolution or by written consent of the board of directors, if
58 the trust company is a corporation, or of the managers, if the
59 trust company is a limited liability company.
60 (b) A fidelity insurance company, upon written consent of
61 the trust company’s board of directors, if a corporation, or its
62 managers, if a limited liability company.
63 (c) An independent auditor, upon written consent of the
64 trust company’s board of directors, if a corporation, or its
65 managers, if a limited liability company.
66 (d) A liquidator, receiver, or conservator for a family
67 trust company, licensed family trust company, or foreign
68 licensed family trust company in the event of the appointment of
69 the liquidator, receiver, or conservator. However, any portion
70 of the information which discloses the identity of a bondholder,
71 customer, family member, member, or stockholder must be redacted
72 by the Office of Financial Regulation before the release of such
73 portion to the liquidator, receiver, or conservator.
74 (e) Any other state, federal, or foreign agency responsible
75 for the regulation or supervision of family trust companies,
76 licensed family trust companies, or foreign licensed family
77 trust companies.
78 (f) A law enforcement agency in the furtherance of the
79 agency’s official duties and responsibilities.
80 (3) PUBLICATION OF INFORMATION.—This section does not
81 prevent or restrict the publication of:
82 (a) A report required by federal law.
83 (b) The name of the family trust company, licensed family
84 trust company, or foreign licensed family trust company and the
85 name and address of the registered agent of that company.
86 (4) PENALTY.—A person who willfully discloses information
87 made confidential and exempt by this section commits a felony of
88 the third degree, punishable as provided in s. 775.082, s.
89 775.083, or s. 775.084.
90 (5) OPEN GOVERNMENT SUNSET REVIEW.—This section is subject
91 to the Open Government Sunset Review Act in accordance with s.
92 119.15 and shall stand repealed on October 2, 2019, unless
93 reviewed and saved from repeal through reenactment by the
94 Legislature.
95 Section 2. Paragraphs (d), (e), and (f) of subsection (1)
96 of section 662.146, Florida Statutes, as created by SB ____,
97 2014 Regular Session, are redesignated as paragraphs (e), (f),
98 and (g), respectively, and a new paragraph (d) is added to that
99 subsection, to read:
100 662.146 Confidentiality of books and records.—
101 (1) The books and records of a family trust company,
102 licensed family trust company, and foreign licensed family trust
103 company are confidential and shall be made available for
104 inspection and examination only:
105 (d) As compelled by legislative subpoena as provided by
106 law, in which case s. 662.47 applies;
107 Section 3. Subsections (1), (2), and (3) of section
108 662.147, Florida Statutes, as created by SB ____, 2014 Regular
109 Session, are renumbered as subsections (3), (4), and (5),
110 respectively, and new subsections (1) and (2) are added to that
111 section, to read:
112 662.147 Records relating to the office examination; limited
113 restrictions on public access.—
114 (1) The public records exemptions contained in s. 662.148
115 do not prevent or restrict the Office of Financial Regulation
116 from:
117 (a) Furnishing records or information to any other state,
118 federal, or foreign agency responsible for the regulation or
119 supervision of family trust companies, licensed family trust
120 companies, or foreign licensed family trust companies.
121 (b) Reporting any suspected criminal activity, with
122 supporting documents and information, to appropriate law
123 enforcement and prosecutorial agencies.
124 (2)(a) Orders issued by courts or administrative law judges
125 for the production of confidential records or information must
126 provide for inspection in camera by the court or the
127 administrative law judge. If the court or administrative law
128 judge determines that the documents requested are relevant or
129 would likely lead to the discovery of admissible evidence, the
130 documents shall be subject to further orders by the court or the
131 administrative law judge to protect the confidentiality thereof.
132 An order directing the release of information shall be
133 immediately reviewable, and a petition by the office for review
134 of the order shall automatically stay any further proceedings in
135 the trial court or the administrative hearing until the
136 disposition of the petition by the reviewing court. If any other
137 party files a petition for review, it will operate as a stay of
138 the proceedings only upon order of the reviewing court.
139 (b) Confidential records and information furnished pursuant
140 to a legislative subpoena shall be kept confidential by the
141 legislative body or committee that received the records or
142 information, except in a case involving the investigation of
143 charges against a public official subject to impeachment or
144 removal, in which case disclosure of the information shall be
145 only to the extent necessary as determined by the legislative
146 body or committee.
147 Section 4. The Legislature finds that it is a public
148 necessity that records held by the Office of Financial
149 Regulation which pertain to a family trust company, licensed
150 family trust company, or foreign licensed family trust company
151 relating to registration or certification; an examination;
152 reports of examinations, operations, or conditions, including
153 working papers; any portion of a list of the names of
154 shareholders or members; or information received by the Office
155 of Financial Regulation from a person from another state or
156 nation or the Federal Government which is otherwise confidential
157 or exempt pursuant to the laws of that jurisdiction be made
158 confidential and exempt from s. 119.07(1), Florida Statutes, and
159 s. 24(a), Article I of the State Constitution. This exemption is
160 necessary because:
161 (1) No public interest is served by granting public access
162 to family trust company records, and no protection is afforded
163 to the public or the state by allowing public access to private
164 financial records. Additionally, a family trust company is
165 prohibited from serving or marketing its services to the general
166 public in any way; therefore, no public interests are involved.
167 (2) Families with a high net worth are frequently the
168 targets of criminal predators seeking access to their assets. It
169 is important that the exposure of such families to threats of
170 extortion, kidnapping, and other crimes not be increased.
171 Placing family business records and methodologies in the public
172 domain would increase the security risk that a family could
173 become the target of criminal activity.
174 (3) Family trust companies often provide a consolidated
175 structure for the ownership of an operating business owned by
176 multiple family members. Placing those private business
177 operations and methods in the public domain could jeopardize
178 their business assets, methodologies, and practices.
179 Section 5. This act shall take effect on the same date that
180 SB ____ or similar legislation takes effect, if such legislation
181 is adopted in the same legislative session or an extension
182 thereof and becomes a law.