Bill Text: FL S1278 | 2014 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Public Records/Office of Financial Regulation
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Passed) 2014-06-13 - Chapter No. 2014-99, companion bill(s) passed, see CS/CS/SB 1012 (Ch. 2014-91) [S1278 Detail]
Download: Florida-2014-S1278-Comm_Sub.html
Bill Title: Public Records/Office of Financial Regulation
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Passed) 2014-06-13 - Chapter No. 2014-99, companion bill(s) passed, see CS/CS/SB 1012 (Ch. 2014-91) [S1278 Detail]
Download: Florida-2014-S1278-Comm_Sub.html
Florida Senate - 2014 CS for SB 1278 By the Committee on Banking and Insurance; and Senator Richter 597-02472-14 20141278c1 1 A bill to be entitled 2 An act relating to public records; amending s. 3 655.057, F.S.; providing an exemption from public 4 records requirements for certain informal enforcement 5 actions by the Office of Financial Regulation, to 6 which penalties apply for willful disclosure of such 7 confidential information; providing an exemption from 8 public records requirements for certain trade secrets 9 held by the office, to which penalties apply for 10 willful disclosure of such confidential information; 11 defining terms; providing for future legislative 12 review and repeal of the section; providing a 13 statement of public necessity; providing a contingent 14 effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Section 655.057, Florida Statutes, is amended to 19 read: 20 655.057 Records; limited restrictions upon public access.— 21 (1) Except as otherwise provided in this section and except 22 for such portions thereof which are otherwise public record, all 23 records and information relating to an investigation by the 24 office are confidential and exempt fromthe provisions ofs. 25 119.07(1) and s. 24(a), Art. I of the State Constitution until 26 such investigation is completed or ceases to be active. For 27 purposes of this subsection, an investigation is considered 28 “active” while such investigation is being conducted by the 29 office with a reasonable, good faith belief that it may lead to 30 the filing of administrative, civil, or criminal proceedings. An 31 investigation does not cease to be active if the office is 32 proceeding with reasonable dispatch,and there is a good faith 33 belief that action may be initiated by the office or other 34 administrative or law enforcement agency. After an investigation 35 is completed or ceases to be active, portions of thesuch36 records relating to the investigation areshall beconfidential 37 and exempt fromthe provisions ofs. 119.07(1) and s. 24(a), 38 Art. I of the State Constitution to the extent that disclosure 39 would: 40 (a) Jeopardize the integrity of another active 41 investigation; 42 (b) Impair the safety and soundness of the financial 43 institution; 44 (c) Reveal personal financial information; 45 (d) Reveal the identity of a confidential source; 46 (e) Defame or cause unwarranted damage to the good name or 47 reputation of an individual or jeopardize the safety of an 48 individual; or 49 (f) Reveal investigative techniques or procedures. 50 (2) Except as otherwise provided in this section and except 51 for such portions thereof which are public record, reports of 52 examinations, operations, or condition, including working 53 papers, or portions thereof, prepared by, or for the use of, the 54 office or any state or federal agency responsible for the 55 regulation or supervision of financial institutions in this 56 state are confidential and exempt fromthe provisions ofs. 57 119.07(1) and s. 24(a), Art. I of the State Constitution. 58 However, such reports or papers or portions thereof may be 59 released to: 60 (a) The financial institution under examination; 61 (b) Any holding company of which the financial institution 62 is a subsidiary; 63 (c) Proposed purchasers if necessary to protect the 64 continued financial viability of the financial institution, upon 65 prior approval by the board of directors of such institution; 66 (d) Persons proposing in good faith to acquire a 67 controlling interest in or to merge with the financial 68 institution, upon prior approval by the board of directors of 69 thesuchfinancial institution; 70 (e) Any officer, director, committee member, employee, 71 attorney, auditor, or independent auditor officially connected 72 with the financial institution, holding company, proposed 73 purchaser, or person seeking to acquire a controlling interest 74 in or merge with the financial institution; or 75 (f) A fidelity insurance company, upon approval of the 76 financial institution’s board of directors. However, a fidelity 77 insurance company may receive only that portion of an 78 examination report relating to a claim or investigation being 79 conducted by such fidelity insurance company. 80 (g) Examination, operation, or condition reports of a 81 financial institution shall be released by the office within 1 82 year after the appointment of a liquidator, receiver, or 83 conservator to thesuchfinancial institution. However, any 84 portion of such reports which discloses the identities of 85 depositors, bondholders, members, borrowers, or stockholders, 86 other than directors, officers, or controlling stockholders of 87 the institution, shall remain confidential and exempt fromthe88provisions ofs. 119.07(1) and s. 24(a), Art. I of the State 89 Constitution. 90 91 Any confidential information or records obtained from the office 92 pursuant to this paragraph shall be maintained as confidential 93 and exempt fromthe provisions ofs. 119.07(1) and s. 24(a), 94 Art. I of the State Constitution. 95 (3) Except as otherwise provided in this section and except 96 for such portions thereof which are otherwise public record, 97 after an investigation relating to an informal enforcement 98 action is completed or ceases to be active, the informal 99 enforcement action is confidential and exempt from s. 119.07(1) 100 and s. 24(a), Art. I of the State Constitution to the extent 101 that disclosure would: 102 (a) Jeopardize the integrity of another active 103 investigation; 104 (b) Impair the safety and soundness of the financial 105 institution; 106 (c) Reveal personal financial information; 107 (d) Reveal the identity of a confidential source; 108 (e) Defame or cause unwarranted damage to the good name or 109 reputation of an individual or jeopardize the safety of an 110 individual; or 111 (f) Reveal investigative techniques or procedures. 112 (4) Except as otherwise provided in this section and except 113 for such portions thereof which are otherwise public record, 114 trade secrets, as defined in s. 688.002, which comply with s. 115 655.0591 and which are held by the office in accordance with its 116 statutory duties with respect to the financial institutions 117 codes are confidential and exempt from s. 119.07(1) and s. 118 24(a), Art. I of the State Constitution. 119 (5)(3)The provisions ofThis section doesdonot prevent 120 or restrict: 121 (a) Publishing reports required to be submitted to the 122 office pursuant to s. 655.045(2)(a) or required by applicable 123 federal statutes or regulations to be published. 124 (b) Furnishing records or information to any other state, 125 federal, or foreign agency responsible for the regulation or 126 supervision of financial institutions, including Federal Home 127 Loan Banks. 128 (c) Disclosing or publishing summaries of the condition of 129 financial institutions and general economic and similar 130 statistics and data, provided that the identity of a particular 131 financial institution is not disclosed. 132 (d) Reporting any suspected criminal activity, with 133 supporting documents and information, to appropriate law 134 enforcement and prosecutorial agencies. 135 (e) Furnishing information upon request to the Chief 136 Financial Officer or the Division of Treasury of the Department 137 of Financial Services regarding the financial condition of any 138 financial institution that is, or has applied to be, designated 139 as a qualified public depository pursuant to chapter 280. 140 141 Any confidential information or records obtained from the office 142 pursuant to this subsection shall be maintained as confidential 143 and exempt fromthe provisions ofs. 119.07(1) and s. 24(a), 144 Art. I of the State Constitution. 145 (6)(4)(a) Orders of courts or of administrative law judges 146 for the production of confidential records or information shall 147 provide for inspection in camera by the court or the 148 administrative law judge, and, after the court or administrative 149 law judge has made a determination that the documents requested 150 are relevant or would likely lead to the discovery of admissible 151 evidence, suchsaiddocuments shall be subject to further orders 152 by the court or the administrative law judge to protect the 153 confidentiality thereof. AnAnyorder directing the release of 154 information isshall beimmediately reviewable, and a petition 155 by the office for review of such ordershallautomatically stays 156stayfurther proceedings in the trial court or the 157 administrative hearing until the disposition of such petition by 158 the reviewing court. If any other party files such a petition 159 for review, it operateswill operateas a stay of such 160 proceedings only upon order of the reviewing court. 161 (b) Confidential records and information furnished pursuant 162 to a legislative subpoena shall be kept confidential by the 163 legislative body or committee thatwhichreceived the records or 164 information, except in a case involving investigation of charges 165 against a public official subject to impeachment or removal.,166and thenDisclosure of such information shall be only to the 167 extent determined necessary by the legislative body or committee 168to be necessary. 169 (7)(5)Every credit union and mutual association shall 170 maintain, in the principal office where its business is 171 transacted, full and correct records of the names and residences 172 of all the members of the credit union or mutual association. 173 Such records areshall besubject to the inspection of all the 174 members of the credit union or mutual association, and the 175 officers authorized to assess taxes under state authority, 176 during business hours of each business day. A current list of 177 members shall be made available to the office’s examiners for 178 their inspection and, upon the request of the office, shall be 179 submitted to the office. Except as otherwise provided in this 180 subsection, the list of the members of the credit union or 181 mutual association is confidential and exempt fromthe182provisions ofs. 119.07(1) and s. 24(a), Art. I of the State 183 Constitution. 184 (8)(6)Every bank, trust company, and stock association 185 shall maintain, in the principal office where its business is 186 transacted, full and complete records of the names and 187 residences of all the shareholders of the bank, trust company, 188 or stock association and the number of shares held by each. Such 189 records areshall besubject to the inspection of all the 190 shareholders of the bank, trust company, or stock association, 191 and the officers authorized to assess taxes under state 192 authority, during business hours of each banking day. A current 193 list of shareholders shall be made available to the office’s 194 examiners for their inspection and, upon the request of the 195 office, shall be submitted to the office. Except as otherwise 196 provided in this subsection, any portion of this list which 197 reveals the identities of the shareholders is confidential and 198 exempt fromthe provisions ofs. 119.07(1) and s. 24(a), Art. I 199 of the State Constitution. 200 (9)(7)Materials supplied to the office or to employees of 201 any financial institution by other state or federal governmental 202 agencies, federal or state, shallremain the property of the 203 submitting agency or the corporation, and any document request 204 must be made to the appropriate agency. Any confidential 205 documents supplied to the office or to employees of any 206 financial institution by other state or federal governmental 207 agencies are, federal or state, shall beconfidential and exempt 208 fromthe provisions ofs. 119.07(1) and s. 24(a), Art. I of the 209 State Constitution. Such information shall be made public only 210 with the consent of such agency or the corporation. 211 (10)(8)Examination reports, investigatory records, 212 applications, and related information compiled by the office, or 213 photographic copies thereof, shall be retained by the office for 214a period ofat least 10 years. 215 (11)(9)A copy of any document on file with the office 216 which is certified by the office as being a true copy may be 217 introduced in evidence as if it were the original. The 218 commission shall establish a schedule of fees for preparing true 219 copies of documents. 220 (12) As used in this section, the term: 221 (a) “Examination report” means records submitted to or 222 prepared by the office as part of the office’s duties performed 223 pursuant to s. 655.012 or s. 655.045(1). 224 (b) “Informal enforcement action” means a board resolution, 225 a document of resolution, or an agreement in writing between the 226 office and a financial institution which: 227 1. The office imposes on the institution when the office 228 considers the administrative enforcement guidelines in s. 229 655.031 and determines that a formal enforcement action is not 230 an appropriate administrative remedy; 231 2. Sets forth a program of corrective action to address one 232 or more safety and soundness deficiencies and violations of law 233 or rule at the institution; and 234 3. Is not subject to enforcement by imposition of an 235 administrative fine pursuant to s. 655.041. 236 (c) “Personal financial information” means: 237 1. Information relating to the existence, nature, source, 238 or amount of a person’s personal income, expenses, or debt. 239 2. Information relating to a person’s financial 240 transactions of any kind. 241 3. Information relating to the existence, identification, 242 nature, or value of a person’s assets, liabilities, or net 243 worth. 244 (d) “Working papers” means the records of the procedures 245 followed, the tests performed, the information obtained, and the 246 conclusions reached in an investigation or examination performed 247 under ss. 655.032 or 655.045. Working papers include planning, 248 documentation, work programs, analyses, memoranda, letters of 249 confirmation and representation, abstracts of the books and 250 records of a financial institution as defined in s. 251 655.005(1)(i), and schedules or commentaries prepared or 252 obtained in the course of such investigation or examination. 253 (13)(10)AAnyperson who willfully discloses information 254 made confidential by this section commitsis guilty ofa felony 255 of the third degree, punishable as provided in s. 775.082, s. 256 775.083, or s. 775.084. 257 (14) This section is subject to the Open Government Sunset 258 Review Act in accordance with s. 119.15 and shall stand repealed 259 on October 2, 2019, unless otherwise saved from repeal through 260 reenactment by the Legislature. 261 Section 2. (1) The Legislature finds it a public necessity 262 that informal enforcement actions and trade secrets, as defined 263 in s. 688.002, Florida Statutes, be kept confidential and exempt 264 from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of 265 the State Constitution. 266 (2) Public disclosure of an informal enforcement action 267 could further impair the safety and soundness of a financial 268 institution that is subject to the action. Furthermore, the 269 public disclosure of this information could erode public 270 confidence in financial institutions and the financial 271 institution system in this state and may lead to a reduced level 272 of protection of the interests of the depositors and creditors 273 of financial institutions. Maintaining informal enforcement 274 actions as confidential and exempt from s. 119.07(1), Florida 275 Statutes, and s. 24(a), Article I of the State Constitution will 276 provide to the financial institutions that are chartered by this 277 state the same protections as those already available to 278 financial institutions chartered under federal law and by other 279 states, maintain public confidence in financial institutions 280 subject to the financial institutions codes, protect the safety 281 and soundness of the financial institution system in this state, 282 protect the interests of the depositors and creditors of 283 financial institutions, promote the opportunity for state 284 chartered financial institutions to be and remain competitive 285 with financial institutions chartered by other states or the 286 United States, and otherwise provide for and promote the 287 purposes of the financial institutions codes as set forth in s. 288 655.001, Florida Statutes. 289 (3) A trade secret derives independent economic value, 290 actual or potential, from not being generally known to, and not 291 readily ascertainable by, other persons who can obtain economic 292 value from the disclosure or use of the trade secret. Without an 293 exemption for a trade secret held by the office, that trade 294 secret becomes a public record when received and must be 295 divulged upon request. Divulging a trade secret under the public 296 records law would give business competitors an unfair advantage 297 and destroy the value of that property, causing a financial loss 298 to the person or entity submitting the trade secret and 299 weakening the position of that person or entity in the 300 marketplace. 301 Section 3. This act shall take effect on the same date that 302 SB 1012 or similar legislation takes effect, if such legislation 303 is adopted in the same legislative session or an extension 304 thereof and becomes a law.