The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Rules
BILL: SB 7020
INTRODUCER: Banking and Insurance Committee
SUBJECT: OGSR/Office of Financial Regulation
DATE: January 11, 2022 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
Johnson Knudson BI Submitted as Comm. Bill/Fav
1. Johnson Phelps RC Favorable
I. Summary:
SB 7020 saves from repeal two public record exemptions. The first relates to international trust
entities and qualified limited service affiliates, which are types of financial institutions, and the
second public record exemption relates to financial institutions generally. The Office of
Financial Regulation (OFR) regulates these entities.
The public records exemption for international trust entities and qualified limited service
affiliates applies to:
 Any personal identifying information of the customers or prospective customers of an
affiliated international trust entity that appears in the records of an international trust
company representative office or a qualified limited service affiliate.
 Any personal identifying information of the customers or prospective customers of an
affiliated international trust entity that appears in records relating to reports of examinations,
operations, or condition, including working papers, of an international trust company
representative office or a qualified limited service affiliate.
 Any portion of a list of names of the shareholders or members of an affiliated international
trust entity or a qualified limited service affiliate.
 Information received by OFR from a person from another state or country or the federal
government, which is otherwise confidential or exempt pursuant to the laws of that state or
country or pursuant to federal law.
The public records exemption for financial institutions, generally, applies to:
 Certain information held by OFR relating to investigations, reports of examinations,
operations, or condition, including working papers, prepared by, or for the use of, OFR, or
any state or federal agency responsible for the regulation or supervision of financial
institutions in this state.
 Any confidential information supplied to OFR or to employees of any financial institution by
other state or federal governmental agencies.
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The Open Government Sunset Review Act requires the Legislature to review each public record
and each public meeting exemption five years after enactment. The exemptions contained in ss.
655.057, 66.401, and 663.540, F.S., are scheduled to repeal on October 2, 2022. This bill
removes the scheduled repeal to continue the confidential and exempt status of the information.
The bill is not expected to impact state and local revenues and expenditures.
The bill takes effect October 1, 2022.
II. Present Situation:
Public Records Law
The Florida Constitution provides that the public has the right to inspect or copy records made or
received in connection with official governmental business. This applies to the official business
of any public body, officer, or employee of the state, including all three branches of state
government, local governmental entities, and any person acting on behalf of the government.
Chapter 119, F.S., known as the Public Records Act, constitutes the main body of public records
laws. The Public Records Act states that:
[i]t is the policy of this state that all state, county, and municipal records are open
for personal inspection and copying by any person. Providing access to public
records is a duty of each agency.
The Public Records Act typically contains general exemptions that apply across agencies.
Agency- or program-specific exemptions often are placed in the substantive statutes relating to
that particular agency or program.
The Public Records Act does not apply to legislative or judicial records. Legislative records are
public pursuant to s. 11.0431, F.S. Public records exemptions for the Legislature are codified
primarily in s. 11.0431(2)-(3), F.S., and adopted in the rules of each house of the legislature.
Section 119.011(12), F.S., defines “public records” to include:
All documents, papers, letters, maps, books, tapes, photographs, films, sound
recordings, data processing software, or other material, regardless of the physical
form, characteristics, or means of transmission, made or received pursuant to law
or ordinance or in connections with the transaction of official business by any
agency.
The Florida Supreme Court has interpreted this definition to encompass all materials made or
received by an agency in connection with official business, which are used to “perpetuate,
communicate, or formalize knowledge of some type.”
The Florida Statutes specify conditions under which public access to governmental records must
be provided. The Public Records Act guarantees every person’s right to inspect and copy any
state or local government public record at any reasonable time, under reasonable conditions, and
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under supervision by the custodian of the public record. A violation of the Public Records Act
may result in civil or criminal liability.
Only the Legislature may create an exemption to public records requirements. An exemption
must be created by general law and must specifically state the public necessity justifying the
exemption. Further, the exemption must be no broader than necessary to accomplish the stated
purpose of the law. A bill enacting an exemption may not contain other substantive provisions
and must pass by a two-thirds vote of the members present and voting in each house of the
Legislature.
When creating a public records exemption, the Legislature may provide that a record is “exempt”
or “confidential and exempt.” There is a difference between records the Legislature has
determined to be exempt from the Public Records Act and those which the Legislature has
determined to be exempt from the Public Records Act and confidential. Records designated as
“confidential and exempt” are not subject to inspection by the public and may only be released
under the circumstances defined by statute. Records designated as “exempt” may be released at
the discretion of the records custodian under certain circumstances.
Open Government Sunset Review Act
The provisions of s. 119.15, F.S., known as the Open Government Sunset Review Act (the Act),
prescribe a legislative review process for newly created or substantially amended public records
or open meetings exemptions,1 with specified exceptions.2 The Act requires the repeal of such
exemption on October 2nd of the fifth year after creation or substantial amendment; in order to
save an exemption from repeal, the Legislature must reenact the exemption or repeal the sunset
date.3 In practice, many exemptions are continued by repealing the sunset date, rather than
reenacting the exemption.
The Act provides that a public records or open meetings exemption may be created or
maintained only if it serves an identifiable public purpose and is no broader than is necessary.4
An exemption serves an identifiable purpose if it meets one of the following purposes and the
Legislature finds that the purpose of the exemption outweighs open government policy and
cannot be accomplished without the exemption:
 It allows the state or its political subdivision to effectively and efficiently administer a
program, and administration would be significantly impaired without the exemption;5
 Releasing sensitive personal information would be defamatory or would jeopardize an
individual’s safety. If this public purpose is cited as the basis of an exemption, however, only
personal identifying information is exempt;6 or
1
Section 119.15, F.S. Section 119.15(4)(b), F.S., provides that an exemption is considered to be substantially amended if it is
expanded to include more records or information or to include meetings.
2
Section 119.15(2)(a) and (b), F.S., provides that exemptions required by federal law or applicable solely to the Legislature
or the State Court System are not subject to the Open Government Sunset Review Act.
3
Section 119.15(3), F.S.
4
Section 119.15(6)(b), F.S.
5
Section 119.15(6)(b)1., F.S.
6
Section 119.15(6)(b)2., F.S.
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 It protects trade or business secrets.7
The Act also requires specified questions to be considered during the review process.8 In
examining an exemption, the Act directs the Legislature to question the purpose and necessity of
reenacting the exemption.
If, in reenacting an exemption or repealing the sunset date, the exemption is expanded, then a
public necessity statement and a two-thirds vote for passage are required.9 If the exemption is
reenacted or saved from repeal without substantive changes or if the exemption is narrowed, then
a public necessity statement and a two-thirds vote for passage are not required. If the Legislature
allows an exemption to expire, the previously exempt records will remain exempt unless
otherwise provided by law.10
Office of Financial Regulation
The Office of Financial Regulation (OFR) regulates financial institutions,11 finance companies,
money services businesses, and the securities industry.12 The OFR is responsible for the
regulation of various entities that engage in financial institution business in Florida, in
accordance with the financial institutions codes.13 In 2017, the Legislature created two new types
of financial institutions, an international trust entity and a qualified limited service affiliate
within the regulatory framework of international banking.14 In 2017, the Legislature also created
two related public records exemptions in the international banking chapter,15 and substantially
revised the current exemption relating to financial institutions in s. 655.057, F.S.16
Public Records Exemption for Financial Institutions Generally
7
Section 119.15(6)(b)3., F.S.
8
Section 119.15(6)(a), F.S. The specified questions are:
 What specific records or meetings are affected by the exemption?
 Whom does the exemption uniquely affect, as opposed to the general public?
 What is the identifiable public purpose or goal of the exemption?
 Can the information contained in the records or discussed in the meeting be readily obtained by alternative means? If so,
how?
 Is the record or meeting protected by another exemption?
 Are there multiple exemptions for the same type of record or meeting that it would be appropriate to merge?
9
FLA. CONST. art. I, s. 24(c).
10
Section 119.15(7), F.S.
11
Section 655.005(1)(i), F.S., provides that a financial institution means a state or federal savings or thrift association, bank,
savings bank, trust company, international bank agency, international banking corporation, international branch, international
representative office, international administrative office, international trust entity, international trust company representative
office, qualified limited service affiliate, credit union, or an agreement corporation operating pursuant to s. 25 of the Federal
Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the Federal Reserve Act, 12
U.S.C. ss. 611 et seq.
12
Section 20.121(3)(a)2., F.S.
13
Chs. 655, 657, 658, 660, 662, 663, 665, and 667, F.S.
14
Ch. 2017-83, Laws of Fla.
15
Parts III and IV of ch. 663, F.S.
16
Ch. 2017-84, Laws of Fla.
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In the course of conducting an examination or an investigation of a financial institution, OFR
generates many documents of a sensitive nature, such as records related to an investigation and
“reports of examinations,17 conditions, or operations, which includes working papers.”18 In 2017,
the Legislature amended s. 655.057, F.S., to specify that the exemptions are not only confidential
and exempt from s. 119.071(1), F.S., but also exempt from Article I, section 24(a), of the Florida
Constitution.19
Section 655.057(1), F.S., provides that “all records and information relating to an investigation
by OFR are confidential and exempt from s. 119.07(1), F.S., and Article I, section 24(a), of the
Florida Constitution until the investigation is completed or ceases to be active.”20 Even after the
completion of an investigation or the investigation ceases to be active, portions of the covered
documents remain confidential and exempt from public disclosure under s. 119.071(1), F.S., and
Article I, section 24(a), of the Florida Constitution to the extent that the documents:
 Would jeopardize the integrity of another active investigation;
 Impair the safety and soundness of the financial institution;
 Reveal personal financial information or the identity of a confidential source;
 Defame or cause unwarranted damage to the good name or reputation of an individual or
jeopardize the safety of an individual; or
 Reveal investigative techniques or procedures.21
Pursuant to s. 655.057(2), F.S., reports of examinations, operations, or condition, including
working papers are confidential and exempt from the public records disclosure requirements of s.
119.07(1), F.S., and Article I, section 24(a), of the Florida Constitution.22 Such documents may
only be released to specified parties under certain circumstances, but any such information or
records obtained from OFR that is confidential must be maintained as confidential and exempt
from s. 119.07(1), F.S., and Article I, section 24(a), of the Florida Constitution.23 Although
reports of examination are generally confidential and exempt from public disclosure, the statute
provides that OFR must release reports of examination within 1 year after the appointment of a
liquidator, receiver, or conservator to the financial institution.24 However, any portion of such
reports that discloses the identities of depositors, bondholders, members, borrowers, or
stockholders, other than directors, officers, or controlling stockholders of the institution must be
redacted by OFR because this information remains confidential and exempt from the public
17
An “examination report” is any record “submitted to or prepared by OFR as part of its supervisory duties performed
pursuant to s. 655.012, F.S., or its examination authority pursuant to s. 655.045(1), F.S. See Section 655.057(12)(a), F.S.
18
Section 655.057(12), F.S., working papers include the records of the procedures followed, the tests performed , the
information obtained, and the conclusions reached in an examination or investigation performed pursuant to s. 655.032 or s.
655.045, F.S.
19
Subsections (1), (2), (5), and (9) of s. 655.057, F.S.
20
Section 655.057(1), F.S.
21
If an investigation relates to an informal enforcement action, once an investigation is completed or ceases to be active, the
informal enforcement action is confidential and exempt from s. 119.07(1), F.S., and s. 24(a), Art, I, of the State Constitution
to the extent that disclosure would jeopardize the integrity of another active investigation, impair the safety and soundness of
the financial institution, reveal personal financial information or the identity of a confidential source, defame or cause
unwarranted damage to the good name or reputation of an individual or jeopardize the safety of an individual, or reveal
investigative techniques or procedures. See s. 655.057(12), F.S.
22
Section 655.057(2), F.S.
23
Id.
24
Section 655.057(2)(g), F.S.
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records disclosure requirements of s. 119.07(1), F.S., and Article I, section 24(a), of the Florida
Constitution.25
Section 655.057(9), F.S., provides that any confidential documents supplied to OFR or to
employees of any financial institution by other state or federal governmental agencies is
confidential and exempt from s. 119.071(1), F.S., and Article I, section 24(a), of the Florida
Constitution.26
Notwithstanding the above exemptions, s. 655.057(5), F.S., specifies information that may be
provided to particular parties under certain circumstances. However, any such confid