Florida Senate - 2014 CS for SB 1320 By the Committee on Banking and Insurance; and Senator Richter 597-03208A-14 20141320c1 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 definitions; providing for the authorized release of 9 certain information by the office; authorizing the 10 publication of certain information; providing a 11 penalty; providing for future legislative review and 12 repeal of the exemption; amending s. 662.147, F.S.; 13 providing for additional authorized release of certain 14 information by the office; providing for production of 15 certain confidential records pursuant to legislative 16 subpoenas; amending s. 662.146, F.S.; providing for 17 production of certain confidential records pursuant to 18 legislative subpoenas; providing a statement of public 19 necessity; 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 1238, 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 is confidential and exempt from s. 119.07(1) 31 and s. 24(a), Art. I of the State Constitution: 32 (a) Records relating to a registration, an application, or 33 an annual certification of a family trust company, licensed 34 family trust company, or foreign licensed family trust company. 35 (b) Records relating to an examination of a family trust 36 company, licensed family trust company, or foreign licensed 37 family trust company. 38 (c) Reports of examinations, operations, or conditions of a 39 family trust company, licensed family trust company, or foreign 40 licensed family trust company, including working papers. 41 (d) Any portion of a list of names of the shareholders or 42 members of a family trust company, licensed family trust 43 company, or foreign licensed family trust company. 44 (e) Information received by the office from a person from 45 another state or nation or the Federal Government which is 46 otherwise confidential or exempt pursuant to the laws of that 47 state or nation or pursuant to federal law. 48 (f) An emergency cease and desist order under s. 662.143 49 until the emergency order is made permanent unless the office 50 finds that such confidentiality will result in substantial risk 51 of financial loss to the public. 52 (2) DEFINITIONS.—As used in this section, the term: 53 (a) “Reports of examinations, operations, or conditions” 54 means records submitted to or prepared by the office as part of 55 the office’s duties performed pursuant to s. 655.012 or s. 56 655.045(1). 57 (b) “Working papers” means the records of the procedure 58 followed, the tests performed, the information obtained, and the 59 conclusions reached in an examination under s. 655.032 or s. 60 655.045. The term also includes books and records. 61 (3) AUTHORIZED RELEASE OF CONFIDENTIAL AND EXEMPT 62 INFORMATION.—Information made confidential and exempt under 63 subsection (1) may be disclosed by the office to: 64 (a) The authorized representative or representatives of the 65 family trust company, licensed family trust company, or foreign 66 licensed family trust company under examination. The authorized 67 representative or representatives shall be identified in a 68 resolution or by written consent of the board of directors, if 69 the trust company is a corporation, or of the managers, if the 70 trust company is a limited liability company. 71 (b) A fidelity insurance company, upon written consent of 72 the trust company’s board of directors, if a corporation, or its 73 managers, if a limited liability company. 74 (c) An independent auditor, upon written consent of the 75 trust company’s board of directors, if a corporation, or its 76 managers, if a limited liability company. 77 (d) A liquidator, receiver, or conservator for a family 78 trust company, licensed family trust company, or foreign 79 licensed family trust company in the event of the appointment of 80 the liquidator, receiver, or conservator. However, any portion 81 of the information which discloses the identity of a bondholder, 82 customer, family member, member, or stockholder must be redacted 83 by the office before the release of such portion to the 84 liquidator, receiver, or conservator. 85 (e) Any other state, federal, or foreign agency responsible 86 for the regulation or supervision of family trust companies, 87 licensed family trust companies, or foreign licensed family 88 trust companies. 89 (f) A law enforcement agency in the furtherance of the 90 agency’s official duties and responsibilities. 91 (4) PUBLICATION OF INFORMATION.—This section does not 92 prevent or restrict the publication of: 93 (a) A report required by federal law. 94 (b) The name of the family trust company, licensed family 95 trust company, or foreign licensed family trust company and the 96 name and address of the registered agent of that company. 97 (5) PENALTY.—A person who willfully discloses information 98 made confidential and exempt by this section commits a felony of 99 the third degree, punishable as provided in s. 775.082, s. 100 775.083, or s. 775.084. 101 (6) OPEN GOVERNMENT SUNSET REVIEW.—This section is subject 102 to the Open Government Sunset Review Act in accordance with s. 103 119.15 and shall stand repealed on October 2, 2019, unless 104 reviewed and saved from repeal through reenactment by the 105 Legislature. 106 Section 2. Subsections (1) through (4) of section 662.147, 107 Florida Statutes, as created by SB 1238, 2014 Regular Session, 108 are renumbered as subsections (3) through (6), respectively, and 109 new subsections (1) and (2) are added to that section, to read: 110 662.147 Records relating to the office examination; limited 111 restrictions on public access.— 112 (1) The public records exemptions contained in s. 662.148 113 do not prevent or restrict the office from: 114 (a) Furnishing records or information to any other state, 115 federal, or foreign agency responsible for the regulation or 116 supervision of family trust companies, licensed family trust 117 companies, or foreign licensed family trust companies. 118 (b) Reporting any suspected criminal activity, with 119 supporting documents and information, to appropriate law 120 enforcement and prosecutorial agencies. 121 (2) Confidential records and information furnished pursuant 122 to a legislative subpoena shall be kept confidential by the 123 legislative body or committee that received the records or 124 information, except in a case involving the investigation of 125 charges against a public official subject to impeachment or 126 removal, in which case disclosure of the information shall be 127 only to the extent necessary as determined by the legislative 128 body or committee. 129 Section 3. Paragraphs (d), (e), and (f) of subsection (1) 130 of section 662.146, Florida Statutes, as created by SB 1238, 131 2014 Regular Session, are redesignated as paragraphs (e), (f), 132 and (g), respectively, and a new paragraph (d) is added to that 133 subsection, to read: 134 662.146 Confidentiality of books and records.— 135 (1) The books and records of a family trust company, 136 licensed family trust company, and foreign licensed family trust 137 company are confidential and shall be made available for 138 inspection and examination only: 139 (d) As compelled by legislative subpoena as provided by 140 law, in which case s. 662.147 applies; 141 Section 4. The Legislature finds that it is a public 142 necessity that records held by the Office of Financial 143 Regulation which pertain to a family trust company, licensed 144 family trust company, or foreign licensed family trust company 145 relating to registration or certification; an examination; 146 reports of examinations, operations, or conditions, including 147 working papers; any portion of a list of the names of 148 shareholders or members; information received by the Office of 149 Financial Regulation from a person from another state or nation 150 or the Federal Government which is otherwise confidential or 151 exempt pursuant to the laws of that jurisdiction; or an 152 emergency cease and desist order be made confidential and exempt 153 from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of 154 the State Constitution. This exemption is necessary because: 155 (1) No public interest is served by granting public access 156 to family trust company records, and no protection is afforded 157 to the public or the state by allowing public access to private 158 financial records. Additionally, a family trust company is 159 prohibited from serving or marketing its services to the general 160 public in any way; therefore, no public interests are involved. 161 (2) Families with a high net worth are frequently the 162 targets of criminal predators seeking access to their assets. It 163 is important that the exposure of such families to threats of 164 extortion, kidnapping, and other crimes not be increased. 165 Placing family business records and methodologies in the public 166 domain would increase the security risk that a family could 167 become the target of criminal activity. 168 (3) Family trust companies often provide a consolidated 169 structure for the ownership of an operating business owned by 170 multiple family members. Placing those private business 171 operations and methods in the public domain could jeopardize 172 their business assets, methodologies, and practices. 173 Section 5. This act shall take effect on the same date that 174 SB 1238 or similar legislation takes effect, if such legislation 175 is adopted in the same legislative session or an extension 176 thereof and becomes law.