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: CS/SB 7006 INTRODUCER: Governmental Oversight and Accountability Committee; and Regulated Industries Committee SUBJECT: OGSR/Utility Owned or Operated by a Unit of Local Government DATE: January 29, 2024 REVISED: ANALYST STAFF DIRECTOR REFERENCE ACTION Schrader Imhof RI Submitted as Comm. Bill/Fav 1. McVaney McVaney GO Fav/CS 2. Schrader Twogood RC Favorable Please see Section IX. for Additional Information: COMMITTEE SUBSTITUTE - Substantial Changes I. Summary: CS/SB 7006 saves from repeal the current public records exemptions making exempt from public inspection and copying requirements the following information held by a utility owned or operated by a unit of local government (municipal utility): Information related to the security of the technology, processes, or practices that are designed to protect the utility’s networks, computers, programs, and data from attack, damage, or unauthorized access, which information, if disclosed, would facilitate the alteration, disclosure, or destruction of such data or information technology resources. Information related to the security of existing or proposed information technology systems or industrial control technology systems, which, if disclosed, would facilitate unauthorized access to, and alteration or destruction of, such systems in a manner that would adversely impact the safe and reliable operation of the systems and the utility. Customer meter-derived data and billing information in increments less than one billing cycle. The bill also saves from repeal the current public meetings exemption for any portion of a meeting that would reveal the information described above. The exemptions are necessary to protect the security of business and residential municipal utility customers, and to protect sensitive information regarding security measures in place to protect BILL: CS/SB 7006 Page 2 technologies, processes, and practices designed to secure data, information technology systems, and industrial control technology systems. Unless saved from repeal by the Legislature, these exemptions are scheduled to repeal on October 2, 2024. The bill removes the scheduled repeals to continue the exempt status of the information and relevant portions of the meetings. However, the public records and public meetings exemptions relating to cybersecurity will be subject to a new repeal date of October 2, 2027. The bill is not expected to impact state or local government revenues and expenditures. The bill takes effect October 1, 2024. II. Present Situation: Access to Public Records - Generally The State Constitution provides that the public has the right to inspect or copy records made or received in connection with official governmental business.1 The right to inspect or copy 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.2 Additional requirements and exemptions related to public records are found in various statutes and rules, depending on the branch of government involved. For instance, s. 11.0431, F.S., provides public access requirements for legislative records. Relevant exemptions are codified in s. 11.0431(2)-(3), F.S., and adopted in the rules of each house of the legislature.3 Florida Rule of Judicial Administration 2.420 governs public access to judicial branch records.4 Lastly, ch. 119, F.S., known as the Public Records Act, provides requirements for public records held by executive agencies. Executive Agency Records – The Public Records Act The Public Records Act provides that all state, county and municipal records are open for personal inspection and copying by any person, and that providing access to public records is a duty of each agency.5 Section 119.011(12), F.S., defines “public records” to include: 1 FLA. CONST. art. I, s. 24(a). 2 Id. See also, Sarasota Citizens for Responsible Gov’t v. City of Sarasota, 48 So. 3d 755, 762-763 (Fla. 2010). 3 See Rule 1.48, Rules and Manual of the Florida Senate, (2022-2024) and Rule 14.1, Rules of the Florida House of Representatives, Edition 2, (2022-2024). 4 State v. Wooten, 260 So. 3d 1060 (Fla. 4th DCA 2018). 5 Section 119.01(1), F.S. Section 119.011(2), F.S., defines “agency” as “any state, county, district, authority, or municipal officer, department, division, board, bureau, commission, or other separate unit of government created or established by law including, for the purposes of this chapter, the Commission on Ethics, the Public Service Commission, and the Office of Public Counsel, and any other public or private agency, person, partnership, corporation, or business entity acting on behalf of any public agency.” BILL: CS/SB 7006 Page 3 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 that are used to “perpetuate, communicate, or formalize knowledge of some type.”6 The Florida Statutes specify conditions under which public access to public records must be provided. The Public Records Act guarantees every person’s right to inspect and copy any public record at any reasonable time, under reasonable conditions, and under supervision by the custodian of the public record.7 A violation of the Public Records Act may result in civil or criminal liability.8 The Legislature may exempt public records from public access requirements by passing a general law by a two-thirds vote of both the House and the Senate.9 The exemption must state with specificity the public necessity justifying the exemption and must be no broader than necessary to accomplish the stated purpose of the exemption.10 General exemptions from the public records requirements are contained in the Public Records Act.11 Specific exemptions often are placed in the substantive statutes relating to a particular agency or program.12 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.13 Records designated as “confidential and exempt” are not subject to inspection by the public and may only be released 6 Shevin v. Byron, Harless, Schaffer, Reid and Assoc., Inc., 379 So. 2d 633, 640 (Fla. 1980). 7 Section 119.07(1)(a), F.S. 8 Section 119.10, F.S. Public records laws are found throughout the Florida Statutes, as are the penalties for violating those laws. 9 FLA. CONST. art. I, s. 24(c). 10 Id. See, e.g., Halifax Hosp. Medical Center v. News-Journal Corp., 724 So. 2d 567 (Fla. 1999) (holding that a public meetings exemption was unconstitutional because the statement of public necessity did not define important terms and did not justify the breadth of the exemption); Baker County Press, Inc. v. Baker County Medical Services, Inc., 870 So. 2d 189 (Fla. 1st DCA 2004) (holding that a statutory provision written to bring another party within an existing public records exemption is unconstitutional without a public necessity statement). 11 See, e.g., s. 119.071(1)(a), F.S. (exempting from public disclosure examination questions and answer sheets of examinations administered by a governmental agency for the purpose of licensure). 12 See, e.g., s. 213.053(2)(a), F.S. (exempting from public disclosure information contained in tax returns received by the Department of Revenue). 13 WFTV, Inc. v. The Sch. Bd. of Seminole County, 874 So. 2d 48, 53 (Fla. 5th DCA 2004). BILL: CS/SB 7006 Page 4 under the circumstances defined by statute.14 Records designated as “exempt” may be released at the discretion of the records custodian under certain circumstances.15 Open Meetings Laws The State Constitution provides that the public has a right to access governmental meetings. 16 Each collegial body must provide notice of its meetings to the public and permit the public to attend any meeting at which official acts are taken or at which public business is transacted or discussed.17 This applies to the meetings of any collegial body of the executive branch of state government, counties, municipalities, school districts, or special districts.18 Public policy regarding access to government meetings also is addressed in the Florida Statutes. Section 286.011, F.S., which is also known as the “Government in the Sunshine Law”19 or the “Sunshine Law,”20 requires all meetings of any board or commission of any state or local agency or authority at which official acts are to be taken be open to the public.21 The board or commission must provide the public reasonable notice of such meetings.22 Public meetings may not be held at any location that discriminates on the basis of sex, age, race, creed, color, origin or economic status or which operates in a manner that unreasonably restricts the public’s access to the facility.23 Minutes of a public meeting must be promptly recorded and open to public inspection.24 Failure to abide by open meetings requirements will invalidate any resolution, rule, or formal action adopted at a meeting.25 A public officer or member of a governmental entity who violates the Sunshine Law is subject to civil and criminal penalties.26 The Legislature may create an exemption to open meetings requirements by passing a general law by a two-thirds vote of the House and the Senate.27 The exemption must explicitly lay out the public necessity justifying the exemption, and must be no broader than necessary to accomplish the stated purpose of the exemption.28 A statutory exemption which does not meet these two criteria may be unconstitutional and may not be judicially saved.29 14 Id. 15 Williams v. City of Minneola, 575 So. 2d 683 (Fla. 5th DCA 1991). 16 FLA. CONST., art. I, s. 24(b). 17 Id. 18 FLA. CONST., art. I, s. 24(b). Meetings of the Legislature are governed by Article III, section 4(e) of the Florida Constitution, which states: “The rules of procedure of each house shall further provide that all prearranged gatherings, between more than two members of the legislature, or between the governor, the president of the senate, or the speaker of the house of representatives, the purpose of which is to agree upon formal legislative action that will be taken at a subsequent time, or at which formal legislative action is taken, regarding pending legislation or amendments, shall be reasonably open to the public.” 19 Times Pub. Co. v. Williams, 222 So.2d 470, 472 (Fla. 2d DCA 1969). 20 Board of Public Instruction of Broward County v. Doran, 224 So.2d 693, 695 (Fla. 1969). 21 Section 286.011(1)-(2), F.S. 22 Id. 23 Section 286.011(6), F.S. 24 Section 286.011(2), F.S. 25 Section 286.011(1), F.S. 26 Section 286.011(3), F.S. 27 FLA. CONST., art. I, s. 24(c). 28 Id. 29 See supra note 10. BILL: CS/SB 7006 Page 5 Open Government Sunset Review Act The provisions of s. 119.15, F.S., known as the Open Government Sunset Review Act30 (the Act), prescribe a legislative review process for newly created or substantially amended 31 public records or open meetings exemptions, with specified exceptions.32 The Act requires the repeal of such exemption on October 2 of the fifth year after its creation or substantial amendment, unless the Legislature reenacts the exemption.33 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.34 An exemption serves an identifiable purpose if the Legislature finds that the purpose of the exemption outweighs open government policy and cannot be accomplished without the exemption and it meets one of the following purposes: It allows the state or its political subdivisions to effectively and efficiently administer a governmental program, and administration would be significantly impaired without the exemption;35 It protects sensitive, personal information, the release of which would be defamatory, cause unwarranted damage to the good name or reputation of the individual, or would jeopardize the individual’s safety. If this public purpose is cited as the basis of an exemption, however, only personal identifying information is exempt;36 or It protects information of a confidential nature concerning entities, such as trade or business secrets.37 The Act also requires specified questions to be considered during the review process.38 In examining an exemption, the Act directs the Legislature to question the purpose and necessity of reenacting the exemption. If the exemption is continued and expanded, then a public necessity statement and a two-thirds vote for passage are again required.39 If the exemption is continued without substantive changes or if the exemption is continued and narrowed, then a public necessity statement and a two-thirds 30 Section 119.15, F.S. 31 An exemption is considered to be substantially amended if it is expanded to include more records or information or to include meetings as well as records. Section 119.15(4)(b), F.S. 32 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. 33 Section 119.15(3), F.S. 34 Section 119.15(6)(b), F.S. 35 Section 119.15(6)(b)1., F.S. 36 Section 119.15(6)(b)2., F.S. 37 Section 119.15(6)(b)3., F.S. 38 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? 39 See generally s. 119.15, F.S. BILL: CS/SB 7006 Page 6 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.40 Security and Privacy Concerns with Customer Consumption Data and Smart Meters Smart meters are digital devices that measure and transmit data on electricity, water, and gas usage to utility companies.41 These devices generally eliminate the need for traditional manual reading of utility consumer meters. Smart meters can provide much more granular data regarding customer consumption patterns and usage. While these devices do offer significant benefits in increasing utility reliability,42 the information they produce can raise some privacy and security concerns. These may include: The data generated may provide insight into a particular customer’s daily routine, habits, and lifestyle which could be used for criminal activity or unwanted marketing. Unauthorized sale of consumption data to third parties. Risk of hacking and cyberattacks to either the meter itself or utilizing a compromised meter