Florida Senate - 2017                                    SB 1080
       By Senator Garcia
       36-00620-17                                           20171080__
    1                        A bill to be entitled                      
    2         An act relating to public records; amending s.
    3         655.057, F.S.; revising definitions; providing an
    4         exemption from public records requirements for certain
    5         information held by the Office of Financial Regulation
    6         relating to international trust entities and limited
    7         service affiliates; authorizing release of such
    8         information under certain circumstances; authorizing
    9         the publication of certain information; providing a
   10         penalty; providing for future legislative review and
   11         repeal of the exemption; providing a statement of
   12         public necessity; providing a contingent effective
   13         date.
   15  Be It Enacted by the Legislature of the State of Florida:
   17         Section 1. Subsection (2), paragraphs (a) and (d) of
   18  subsection (12), and subsection (14) of section 655.057, Florida
   19  Statutes, are amended, and subsection (10) of that section is
   20  republished, to read:
   21         655.057 Records; limited restrictions upon public access.—
   22         (2) Except as otherwise provided in this section and except
   23  for such portions thereof which are public record, reports of
   24  examinations, operations, or condition, including working
   25  papers, or portions thereof, prepared by, or for the use of, the
   26  office or any state or federal agency responsible for the
   27  regulation or supervision of financial institutions in this
   28  state are confidential and exempt from s. 119.07(1) and s.
   29  24(a), Art. I of the State Constitution. However, such reports
   30  or papers or portions thereof may be released to:
   31         (a) The financial institution under examination;
   32         (b) Any holding company of which the financial institution
   33  is a subsidiary;
   34         (c) Proposed purchasers if necessary to protect the
   35  continued financial viability of the financial institution, upon
   36  prior approval by the board of directors of such institution;
   37         (d) Persons proposing in good faith to acquire a
   38  controlling interest in or to merge with the financial
   39  institution, upon prior approval by the board of directors of
   40  such financial institution;
   41         (e) Any officer, director, committee member, employee,
   42  attorney, auditor, or independent auditor officially connected
   43  with the financial institution, holding company, proposed
   44  purchaser, or person seeking to acquire a controlling interest
   45  in or merge with the financial institution; or
   46         (f) A fidelity insurance company, upon approval of the
   47  financial institution’s board of directors. However, a fidelity
   48  insurance company may receive only that portion of an
   49  examination report relating to a claim or investigation being
   50  conducted by such fidelity insurance company.
   51         (g) Examination, operation, or condition reports of a
   52  financial institution shall be released by the office within 1
   53  year after the appointment of a liquidator, receiver, or
   54  conservator to the financial institution. However, any portion
   55  of such reports which discloses the identities of depositors,
   56  bondholders, members, borrowers, or stockholders, other than
   57  directors, officers, or controlling stockholders of the
   58  institution, shall remain confidential and exempt from s.
   59  119.07(1).
   61  Any confidential information or records obtained from the office
   62  pursuant to this subsection paragraph shall be maintained as
   63  confidential and exempt from s. 119.07(1).
   64         (10) Examination reports, investigatory records,
   65  applications, and related information compiled by the office, or
   66  photographic copies thereof, shall be retained by the office for
   67  at least 10 years.
   68         (12) For purposes of this section, the term:
   69         (a) “Examination report” means records submitted to or
   70  prepared by the office as part of the office’s duties performed
   71  pursuant to s. 655.012, or s. 655.045(1), s. 663.532, s.
   72  663.533, s. 663.534, s. 663.536, s. 663.537, s. 663.538, or s.
   73  663.539.
   74         (d) “Working papers” means the records of the procedures
   75  followed, the tests performed, the information obtained, and the
   76  conclusions reached in an examination or investigation performed
   77  under s. 655.032, or s. 655.045, s. 663.532, s. 663.533, s.
   78  663.537, s. 663.538, or s. 663.539. Working papers include
   79  planning documentation, work programs, analyses, memoranda,
   80  letters of confirmation and representation, abstracts of the
   81  books and records of a financial institution as defined in s.
   82  655.005(1), and schedules or commentaries prepared or obtained
   83  in the course of such examination or investigation.
   84         (14) Subsections (2), (3), and (4) are subject to the Open
   85  Government Sunset Review Act in accordance with s. 119.15 and
   86  are repealed on October 2, 2022 2019, unless reviewed and saved
   87  from repeal through reenactment by the Legislature.
   88         Section 2. The Legislature finds that it is a public
   89  necessity that reports of examination, operations, or condition,
   90  including working papers, prepared by, or for the use of, the
   91  Office of Financial Regulation or any state or federal agency
   92  responsible for the regulation or supervision of financial
   93  institutions in this state which pertain to international trust
   94  entities and limited service affiliates be made confidential and
   95  exempt from s. 119.07(1), Florida Statutes, and s. 24(a),
   96  Article I of the State Constitution.
   97         (1)The terms “international trust entity” and “limited
   98  service affiliate” referenced in part III of chapter 663,
   99  Florida Statutes, are added to the definition of “financial
  100  institution” and made subject to investigations and examinations
  101  by the Office of Financial Regulation. As such, the office may
  102  receive sensitive personal and financial information and trade
  103  secrets relating to such entities in conjunction with its duties
  104  under chapter 663. This exemption prevents gaps in the law which
  105  would put such entities at a disadvantage in comparison to other
  106  entities currently defined as financial institutions and also
  107  subject personal and financial information of customers to risk
  108  of disclosure.
  109         (2)Public disclosure of financial information and lists of
  110  names of existing and prospective customers of an affiliated
  111  international trust entity could jeopardize the personal and
  112  financial safety of those existing and prospective customers and
  113  their family members. Families with a high net worth are
  114  frequently the targets of criminal predators seeking access to
  115  their assets. It is important that the exposure of such
  116  customers and their family members to threats of extortion,
  117  kidnapping, and other crimes not be increased. Placing the names
  118  of family members and their private family business records and
  119  methodologies in the public domain would increase the security
  120  risk that a client or family could become the target of criminal
  121  activity. This is especially important because many of the
  122  existing and prospective customers of affiliated international
  123  trust entities reside in or frequently travel to countries in
  124  which kidnapping and extortion are significant risks and public
  125  corruption impedes the rule of law.
  126         (3)Public disclosure of an examination, report of
  127  examination, or emergency cease and desist order could expose
  128  individuals to security risks or could defame or cause
  129  unwarranted damage to the good name or reputation of the
  130  individual who is the subject of the information.
  131         Section 3. This act shall take effect on the same date that
  132  SB ____ or similar legislation takes effect, if such legislation
  133  is adopted in the same legislative session or an extension
  134  thereof and becomes a law.