HB 1939

1
2	A bill to be entitled
3	An act relating to public records and public meetings;
4	creating s. 627.06292, F.S.; creating an exemption from
5	public records requirements for reports of hurricane loss
6	data and associated exposure data that are specific to a
7	particular insurance company; providing a definition;
8	providing for review and repeal; providing a statement of
9	public necessity; amending s. 627.0628, F.S.; creating an
10	exemption from public records requirements for trade
11	secrets used in designing and constructing hurricane loss
12	models; creating an exemption from public meetings
13	requirements for that portion of a meeting of the Florida
14	Commission on Hurricane Loss Projection Methodology or of
15	a rate proceeding wherein confidential and exempt trade
16	secrets are discussed; providing for review and repeal;
17	providing a statement of public necessity; providing a
18	contingent effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Section 627.06292, Florida Statutes, is created
23	to read:
24	627.06292  Reports of hurricane loss data and associated
25	exposure data; public records exemption.--
26	(1)  Reports of hurricane loss data and associated exposure
27	data that are specific to a particular insurance company, as
28	reported by an insurer or a licensed rating organization to the
29	office or to a type I center at a state university pursuant to
30	s. 627.06281, are exempt from s. 119.07(1) and s. 24(a), Art. I
31	of the State Constitution.
32	(2)  For the purposes of this section, "loss data and
33	associated exposure data" means the type, age, wind mitigation
34	features, and location of each property insured; the amount and
35	type of coverage written on each of those properties; the
36	amount, date, and type of damage paid for by the insurer on each
37	property; and the amount of any reserves held by an insurer for
38	future payments or expenses on damages associated with the date
39	or dates of occurrence of hurricanes.
40	(3)  This section is subject to the Open Government Sunset
41	Review Act of 1995 in accordance with s. 119.15, and shall stand
42	repealed on October 2, 2010, unless reviewed and saved from
43	repeal through reenactment by the Legislature.
44	Section 2.  The Legislature finds that it is a public
45	necessity that reports of hurricane loss data and associated
46	exposure data that are specific to a particular insurance
47	company be made exempt from public records requirements. The
48	Legislature finds that revealing such information could
49	substantially harm insurers in the insurance market and give
50	competitor insurers an unfair economic advantage. Hurricane loss
51	data and associated exposure data of an insurer include the type
52	and location of properties insured by an insurer, the amount of
53	damage incurred by an insured, the amount a property is insured
54	for, and the reserves an insurer has for future losses. This
55	information is of value to an insurer and would provide a
56	competitive advantage if disclosed to another insurer.
57	Information concerning the hurricane losses that are paid by an
58	insurer for specific types and locations of homes is proprietary
59	in nature. Such information could be used by a competitor to
60	solicit business by offering lower prices based on the
61	information gathered. As such, the Legislature finds that the
62	exemption for reports of hurricane loss data and associated
63	exposure data is a public necessity.
64	Section 3.  Paragraph (e) is added to subsection (3) of
65	section 627.0628, Florida Statutes, to read:
66	627.0628  Florida Commission on Hurricane Loss Projection
67	Methodology; public records exemption; public meetings
68	exemption.--
69	(3)  ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.--
70	(e)1.  A trade secret, as defined in s. 812.081, that is
71	used in designing and constructing a hurricane loss model and
72	that is provided pursuant to this section, by a private company,
73	to the commission, office, or consumer advocate appointed
74	pursuant to s. 627.0613, is confidential and exempt from s.
75	119.07(1) and s. 24(a), Art. I of the State Constitution.
76	2.  That portion of a meeting of the commission or of a
77	rate proceeding on an insurer's rate filing at which a trade
78	secret made confidential and exempt by this paragraph is
79	discussed is exempt from s. 286.011 and s. 24(b), Art. I of the
80	State Constitution.
81	3.  This paragraph is subject to the Open Government Sunset
82	Review Act of 1995 in accordance with s. 119.15, and shall stand
83	repealed on October 2, 2010, unless reviewed and saved from
84	repeal through reenactment by the Legislature.
85	Section 4.  The Legislature finds that it is a public
86	necessity that a trade secret, as defined in s. 812.081, Florida
87	Statutes, that is used in designing and constructing a hurricane
88	loss model and that is provided pursuant to law, by a private
89	company, to the Florida Commission on Hurricane Loss Projection
90	Methodology, the Office of Insurance Regulation, or an appointed
91	consumer advocate be made confidential and exempt from public
92	records requirements and be made exempt from public meetings
93	requirements. Disclosing trade secrets would negatively impact
94	the business interests of a private company that has invested
95	substantial economic resources in developing the model, and
96	competitor companies would gain an unfair competitive advantage
97	if provided access to such information. Reliable projections of
98	hurricane losses are necessary in order to ensure that rates for
99	residential property insurance meet the statutory requirement
100	that rates be neither excessive nor inadequate. This goal is
101	served by enabling the Florida Commission on Hurricane Loss
102	Projection Methodology, the Office of Insurance Regulation, and
103	the consumer advocate appointed pursuant to s. 627.0613, Florida
104	Statutes, to have access to all aspects of hurricane loss
105	models, and encouraging private companies to submit such models
106	to the commission, office, and consumer advocate for review
107	without concern that trade secrets will be disclosed. In
108	addition, the Legislature finds that it is a public necessity to
109	protect trade secrets discussed during meetings or rate
110	proceedings, because release of such information via a public
111	meeting or proceeding would defeat the purpose of the public
112	records exemption and would allow competitors and other persons
113	to attend those meetings and discover the protected trade
114	secrets.
115	Section 5.  This act shall take effect on the same date
116	that HB 1937 or substantially similar legislation takes effect,
117	if such legislation is adopted in the same legislative session
118	or an extension thereof and becomes a law.

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