Florida Senate - 2014 SB 1300 By Senator Simmons 10-01164-14 20141300__ 1 A bill to be entitled 2 An act relating to public records; creating s. 3 624.4212, F.S.; creating an exemption from public 4 records requirements for proprietary business 5 information submitted to the Office of Insurance 6 Regulation; defining the term “proprietary business 7 information”; providing exceptions; providing for 8 future legislative review and repeal; providing a 9 statement of public necessity; providing a contingent 10 effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Section 624.4212, Florida Statutes, is created 15 to read: 16 624.4212 Confidentiality of proprietary business 17 information.—Proprietary business information held by the Office 18 of Insurance Regulation in accordance with its statutory duties 19 with respect to insurer solvency is confidential and exempt from 20 s. 119.07(1) and s. 24(a), Art. I of the State Constitution. 21 (1) As used in this section, the term “proprietary business 22 information” means information, regardless of form or 23 characteristics, which is owned or controlled by an insurer, or 24 a person or an affiliated person who seeks acquisition of 25 controlling stock in a domestic stock insurer or controlling 26 company, and which: 27 (a) Is intended to be and is treated by the insurer or the 28 person as private in that the disclosure of the information 29 would cause harm to the insurer, the person, or the company’s 30 business operations and has not been disclosed unless disclosed 31 pursuant to a statutory requirement, an order of a court or 32 administrative body, or a private agreement that provides that 33 the information will not be released to the public; 34 (b) Is not otherwise readily ascertainable or publicly 35 available by proper means by other persons from another source 36 in the same configuration as requested by the office; and 37 (c) Includes, but is not limited to: 38 1. Trade secrets as defined in s. 688.002 which comply with 39 s. 624.4213. 40 2. Information relating to competitive interests the 41 disclosure of which would impair the competitive business of the 42 provider of the information. 43 3. The source, nature, and amount of the consideration used 44 or to be used in carrying out a merger or other acquisition of 45 control in the ordinary course of business, including the 46 identity of the lender, if the person filing a statement 47 regarding consideration so requests. 48 4. Information relating to bids or other contractual data 49 the disclosure of which would impair the efforts of the insurer 50 or its affiliates to contract for goods or services on favorable 51 terms. 52 5. Internal auditing controls and reports of internal 53 auditors. 54 6. The actuarial opinion summary required under ss. 55 624.424(1)(b) and 625.121(3) and the documents, materials, and 56 other information related thereto. 57 7. A notice filed with the office by the person or 58 affiliated person who seeks to divest controlling stock in an 59 insurer pursuant to s. 628.461. 60 8. The filings required under s. 628.801 and all documents, 61 materials, and other information related thereto. 62 9. The enterprise risk report required under ss. 628.461(3) 63 and 628.801 and the documents, materials, and other information 64 related to the enterprise risk report. 65 10. Information provided to or obtained by the office 66 pursuant to participation in a supervisory college established 67 under s. 628.805. 68 11. Information received from another governmental entity 69 or the National Association of Insurance Commissioners which is 70 confidential or exempt if held by that entity for use by the 71 office in the office’s performance of its duties. 72 (2) The office may disclose confidential and exempt 73 proprietary business information: 74 (a) If the insurer to which it pertains gives prior written 75 consent; 76 (b) Pursuant to a court order; 77 (c) To the American Academy of Actuaries upon a request 78 stating that the information is for the purpose of professional 79 disciplinary proceedings and specifying procedures satisfactory 80 to the office for preserving the confidentiality of the 81 information; 82 (d) To other states, federal and international agencies, 83 the National Association of Insurance Commissioners and its 84 affiliates and subsidiaries, and state, federal, and 85 international law enforcement authorities, including members of 86 a supervisory college described in s. 628.805 if the recipient 87 agrees in writing to maintain the confidential and exempt status 88 of the document, material, or other information, and has 89 verified in writing its legal authority to maintain such 90 confidentiality; or 91 (e) For the purpose of aggregating information on an 92 industrywide basis and disclosing the information to the public 93 only if the specific identities of the insurers, or persons or 94 affiliated persons, are not revealed. 95 (3) This section is subject to the Open Government Sunset 96 Review Act in accordance with s. 119.15 and shall stand repealed 97 on October 2, 2019, unless reviewed and saved from repeal 98 through reenactment by the Legislature. 99 Section 2. The Legislature finds that it is a public 100 necessity that proprietary business information that is provided 101 to the Office of Insurance Regulation by an insurer or acquiring 102 party pursuant to the requirements of the Florida Insurance Code 103 or the Holding Company System Regulatory Act of the National 104 Association of Insurance Commissioners in order for the office 105 to conduct its regulatory duties with respect to insurer 106 solvency, be made confidential and exempt from s. 119.07(1), 107 Florida Statutes, and s. 24(a), Article I of the State 108 Constitution. The disclosure of such information could injure an 109 insurer in the marketplace by providing its competitors with 110 detailed insight into the financial status and strategic plans 111 of the insurer, thereby diminishing the advantage that the 112 insurer maintains over competitors that do not possess such 113 information. Without this exemption, an insurer or acquiring 114 party might refrain from providing accurate and unbiased data, 115 thus impairing the office’s ability to accurately evaluate the 116 propriety of proposed acquisitions in the state, and the 117 financial condition of insurers and their affiliates. 118 Proprietary business information derives actual or potential 119 independent economic value from not being generally known to, 120 and not being readily ascertainable by proper means by, other 121 persons who can derive economic value from its disclosure or 122 use. The office, in performing its duties and responsibilities, 123 may need to obtain proprietary business information from 124 insurers and regulated entities. Without an exemption from 125 public records requirements for proprietary business information 126 provided to the office, such information becomes a public record 127 when received and must be divulged upon request. Divulgence of 128 proprietary business information under the public records law 129 would destroy the value of that property to the proprietor, 130 causing a financial loss not only to the proprietor but also to 131 the residents of this state due to the loss of reliable 132 financial data necessary for the accurate evaluation of proposed 133 acquisitions. Release of proprietary business information would 134 give business competitors an unfair advantage and weaken the 135 position in the marketplace of the proprietor who owns or 136 controls the business information. The harm to insurers in the 137 marketplace and to the effective administration of acquisitions 138 caused by the public disclosure of such information far 139 outweighs the public benefits derived from its release. 140 Section 3. This act shall take effect October 1, 2014, if 141 SB ____ or similar legislation is adopted in the same 142 legislative session or an extension thereof and becomes a law.