Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. SB 1300
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/11/2014           .                                

    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 624.4212, Florida Statutes, is created
    6  to read:
    7         624.4212Confidentiality of proprietary business and other
    8  information.—
    9         (1) As used in this section, the term “proprietary business
   10  information” means information, regardless of form or
   11  characteristics, which is owned or controlled by an insurer, or
   12  a person or an affiliated person who seeks acquisition of
   13  controlling stock in a domestic stock insurer or controlling
   14  company, and which:
   15         (a) Is intended to be and is treated by the insurer or the
   16  person as private in that the disclosure of the information
   17  would cause harm to the insurer, the person, or the company’s
   18  business operations and that the information has not been
   19  disclosed unless disclosed pursuant to a statutory requirement,
   20  an order of a court or administrative body, or a private
   21  agreement that provides that the information will not be
   22  released to the public;
   23         (b) Is not otherwise readily ascertainable or publicly
   24  available by proper means by other persons from another source
   25  in the same configuration as requested by the office; and
   26         (c) Includes, but is not limited to:
   27         1. Trade secrets as defined in s. 688.002 which comply with
   28  s. 624.4213.
   29         2. Information relating to competitive interests, the
   30  disclosure of which would impair the competitive business of the
   31  provider of the information.
   32         3. The source, nature, and amount of the consideration used
   33  or to be used in carrying out a merger or other acquisition of
   34  control in the ordinary course of business, including the
   35  identity of the lender, if the person filing a statement
   36  regarding consideration so requests.
   37         4. Information relating to bids or other contractual data,
   38  the disclosure of which would impair the efforts of the insurer
   39  or its affiliates to contract for goods or services on favorable
   40  terms.
   41         5. Internal auditing controls and reports of internal
   42  auditors.
   43         (2) Proprietary business information contained in the
   44  following items held by the office is confidential and exempt
   45  from s. 119.07(1) and s. 24(a), Art. I of the State
   46  Constitution:
   47         1.The actuarial opinion summary required under ss.
   48  624.424(1)(b) and 625.121(3) and information related thereto.
   49         2. A notice filed with the office by the person or
   50  affiliated person who seeks to divest controlling stock in an
   51  insurer pursuant to s. 628.461.
   52         3. The filings required under s. 628.801 and information
   53  related thereto.
   54         4. The enterprise risk report required under ss. 628.461(3)
   55  and 628.801 and information related thereto.
   56         5. Information provided to or obtained by the office
   57  pursuant to participation in a supervisory college established
   58  under s. 628.805.
   59         6. Beginning on the operative date of the valuation manual
   60  as defined in s. 625.1212(2):
   61         a. An actuarial examination conducted pursuant to s.
   62  625.1212(5)(c), and information related thereto;
   63         b. The annual certification submitted by the insurer
   64  pursuant to s. 625.1212(6)(b)2., and information related
   65  thereto;
   66         c. The principle-based valuation report filed pursuant to
   67  s. 625.1212(6)(b)3., and information related thereto; and
   68         d. Mortality, morbidity, policyholder behavior, or expense
   69  experience and other data submitted pursuant to s. 625.1212(7),
   70  which includes potentially company-identifiable or personally
   71  identifiable information.
   72         (3) Information received from the NAIC or another
   73  governmental entity in this or another state, the Federal
   74  Government, or another nation which is confidential or exempt if
   75  held by that entity and which is held by the office for use in
   76  the office’s performance of its duties relating to insurer
   77  valuation and solvency is confidential and exempt from s.
   78  119.07(1) and s. 24(a), Art. I of the State Constitution.
   79         (4) The office may disclose information made confidential
   80  and exempt under this section:
   81         (a) If the insurer to which it pertains gives prior written
   82  consent;
   83         (b) Pursuant to a court order;
   84         (c)To the American Academy of Actuaries upon a request
   85  stating that the information is for the purpose of professional
   86  disciplinary proceedings and specifying procedures satisfactory
   87  to the office for preserving the confidentiality of the
   88  information;
   89         (d) To other states, federal and international agencies,
   90  the National Association of Insurance Commissioners and its
   91  affiliates and subsidiaries, and state, federal, and
   92  international law enforcement authorities, including members of
   93  a supervisory college described in s. 628.805 if the recipient
   94  agrees in writing to maintain the confidential and exempt status
   95  of the document, material, or other information and has
   96  certified in writing its legal authority to maintain such
   97  confidentiality; or
   98         (e)For the purpose of aggregating information on an
   99  industrywide basis and disclosing the information to the public
  100  only if the specific identities of the insurers, or persons or
  101  affiliated persons, are not revealed.
  102         (5) This section is subject to the Open Government Sunset
  103  Review Act in accordance with s. 119.15 and is repealed on
  104  October 2, 2019, unless reviewed and saved from repeal through
  105  reenactment by the Legislature.
  106         Section 2. (1) The Legislature finds that it is a public
  107  necessity that proprietary business information that is provided
  108  to the Office of Insurance Regulation by an insurer or by an
  109  acquiring party pursuant to the Florida Insurance Code or the
  110  Holding Company System Regulatory Act of the National
  111  Association of Insurance Commissioners in order for the office
  112  to conduct its regulatory duties with respect to insurer
  113  valuation and solvency, be made confidential and exempt from s.
  114  119.07(1), Florida Statutes, and s. 24(a), Article I of the
  115  State Constitution. The disclosure of such information could
  116  injure an insurer in the marketplace by providing its
  117  competitors with detailed insight into the reserve assumptions
  118  and strategies, modeling methodologies, business plans, pricing
  119  and marketing strategies, management systems and operational
  120  protocols, and financial status of the insurer, thereby
  121  diminishing the advantage that the insurer maintains over
  122  competitors that do not possess such information. Without this
  123  exemption, an insurer or an acquiring party might refrain from
  124  providing accurate and unbiased data, thus impairing the
  125  office’s ability to accurately evaluate the propriety of
  126  proposed acquisitions in the state and the financial condition
  127  of insurers and their affiliates. Proprietary business
  128  information derives actual or potential independent economic
  129  value from not being generally known to, and not being readily
  130  ascertainable by proper means by, other persons who can derive
  131  economic value from its disclosure or use. The office, in
  132  performing its duties and responsibilities, may need to obtain
  133  proprietary business information from insurers and regulated
  134  entities. Without an exemption from public records requirements
  135  for proprietary business information provided to the office,
  136  such information becomes a public record when received and must
  137  be divulged upon request. Divulgence of proprietary business
  138  information under the public records law would destroy the value
  139  of that property to the proprietor, causing a financial loss not
  140  only to the proprietor but also to the residents of this state
  141  due to the loss of reliable financial data necessary for the
  142  accurate evaluation of proposed acquisitions. Release of
  143  proprietary business information would give business competitors
  144  an unfair advantage and weaken the position in the marketplace
  145  of the proprietor who owns or controls the business information.
  146         (2) The Legislature also finds that it is a public
  147  necessity that information received by the office from the
  148  National Association of Insurance Commissioners, or from an
  149  agency in this or another state or nation or the Federal
  150  Government, which is otherwise exempt or confidential pursuant
  151  to the laws of this or another state or nation or pursuant to
  152  federal law or which is confidential or exempt if held by that
  153  entity, for use by the office in the performance of duties
  154  related to insurer valuation and solvency under the Florida
  155  Insurance Code, be made confidential and exempt from s.
  156  119.07(1), Florida Statutes, and s. 24(a), Article I of the
  157  State Constitution. Divulgence of such information could impede
  158  the exchange of information and communication among regulators
  159  across multiple agencies and jurisdictions and jeopardize the
  160  ability of regulators to effectively supervise insurers and
  161  groups operating in multiple jurisdictions and engaged in
  162  significant cross-border activities.
  163         Section 3. This act shall take effect October 1, 2014, if
  164  SB 1308 or similar legislation is adopted in the same
  165  legislative session or an extension thereof and becomes a law.
  167  ================= T I T L E  A M E N D M E N T ================
  168  And the title is amended as follows:
  169         Delete everything before the enacting clause
  170  and insert:
  171                        A bill to be entitled                      
  172         An act relating to public records; creating s.
  173         624.4212, F.S.; defining the term “proprietary
  174         business information”; creating an exemption from
  175         public records requirements for proprietary business
  176         information and information that is confidential when
  177         held by another entity in this state, the Federal
  178         Government, or another state or nation, and which is
  179         held by the Office of Insurance Regulation; providing
  180         exceptions; providing for future legislative review
  181         and repeal; providing a statement of public necessity;
  182         providing a contingent effective date.