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 7014
INTRODUCER: Banking and Insurance Committee
SUBJECT: OGSR/Office of Insurance Regulation
DATE: April 15, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
Johnson Knudson BI Submitted as Comm. Bill/Fav
1. McVaney McVaney GO Favorable
2. Johnson Phelps RC Favorable
I. Summary:
SB 7014 amends s. 624.4212, F.S., to save from repeal the public records exemption relating to
insurer reporting of certain proprietary business and other information that is held by the Office
of Insurance Regulation. The proprietary business information includes, but is not limited to,
reports submitted by insurers, such as the enterprise risk report, the own risk and solvency
assessment (ORSA) summary report or a substantially similar ORSA report, the corporate
governance annual disclosure (CGAD), and supporting documentation. This information will
continue to be confidential and exempt from public disclosure beyond October 2, 2020.
By saving s. 624.4212, F.S., from repeal, the bill also prevents the repeal of amendments made to
s. 628.8015, F.S., and s. 628.803, F.S., implementing the following National Association of
Insurance Commissioners Model Acts and Regulations:
 Risk Management and Own-risk and Solvency Assessment Model Act.
 Corporate Governance and Disclosure Model Act; and the corresponding Corporate
Governance Annual Disclosure Model Regulation.
The bill is not expected to impact state or local government revenues and expenditures.
The bill takes effect October 1, 2021.
II. Present Situation:
Access to Public Records – Generally
The Florida 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
1
FLA. CONST. art. I, s. 24(a).
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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
Executive Agency Records – The Public Records Act
Chapter 119, F.S., known as 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.3 A public record includes virtually
any document or recording, regardless of its physical form or the method of transmission.4 The
Florida Supreme Court has interpreted the statutory definition of “public record” to include
“material prepared in connection with official agency business which is intended to perpetuate,
communicate, or formalize knowledge of some type.”5
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.6 A violation of the Public Records Act may result in civil or
criminal liability.7
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.8 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.9
General exemptions from the public records requirements are contained in the Public Records
Act.10 Specific exemptions often are placed in the substantive statutes relating to a particular
2
Id.
3
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.”
4
Section 119.011(12), F.S., defines “public record” to mean “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 connection with the transaction of official business by
any agency.”
5
Shevin v. Byron, Harless, Schaffer, Reid and Assoc., Inc., 379 So. 2d 633, 640 (Fla. 1980).
6
Section 119.07(1)(a), F.S.
7
Section 119.10, F.S. Public records laws are found throughout the Florida Statutes, as are the penalties for violating those
laws.
8
FLA. CONST. art. I, s. 24(c).
9
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).
10
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).
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agency or program.11 When creating a public records exemption, the Legislature may provide
that a record is “exempt” or “confidential and exempt.” Custodians of records designated as
“exempt” are not prohibited from disclosing the record; rather, the exemption means that the
custodian cannot be compelled to disclose the record.12 Custodians of records designated as
“confidential and exempt” may not disclose the record except under circumstances specifically
defined by the Legislature.13
Open Government Sunset Review Act
The Open Government Sunset Review Act14 (the Act) prescribes a legislative review process for
newly created or substantially amended15 public records or open meetings exemptions, with
specified exceptions.16 It requires the automatic repeal of such exemption on October 2nd of the
fifth year after creation or substantial amendment, unless the Legislature reenacts the
exemption.17
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.18
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 subdivisions to effectively and efficiently administer a
governmental program, and administration would be significantly impaired without the
exemption;19
 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;20 or
 It protects information of a confidential nature concerning entities, such as trade or business
secrets.21
The Act also requires specified questions to be considered during the review process.22 In
examining an exemption, the Act directs the Legislature to question the purpose and necessity of
reenacting the exemption.
11
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).
12
See Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991).
13
WFTV, Inc. v. The School Board of Seminole, 874 So.2d 48 (Fla. 5th DCA 2004).
14
Section 119.15, F.S.
15
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.
16
Section 119.15(2)(a) and (b), F.S., provide that exemptions that are required by federal law or are applicable solely to the
Legislature or the State Court System are not subject to the Open Government Sunset Review Act.
17
Section 119.15(3), F.S.
18
Section 119.15(6)(b), F.S.
19
Section 119.15(6)(b)1., F.S.
20
Section 119.15(6)(b)2., F.S.
21
Section 119.15(6)(b)3., F.S.
22
Section 119.15(6)(a), F.S. The specified questions are:
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If the exemption is continued and expanded, then a public necessity statement and a two-thirds
vote for passage are required.23 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 vote
for passage are not required. If the Legislature allows an exemption to sunset, the previously
exempt records will remain exempt unless provided for by law.24
Regulation of Insurance in Florida
States are the primary regulators of insurance companies. In Florida, the Office of Insurance
Regulation (OIR)25 is primarily responsible for licensing insurance companies, monitoring the
solvency of regulated insurers, examining insurers to determine compliance with applicable
laws, and taking administrative action, if necessary.
In 2016, the Legislature enacted laws26 implementing the National Association of Insurance
Commissioners’ (NAIC)27 Risk Management and Own-risk and Solvency Assessment (ORSA)
Model Act28 and the Corporate Governance and Disclosure Model Act and the corresponding
Corporate Governance Annual Disclosure Model Regulation29 (CGAD). The ORSA Model Act
requires insurers to conduct an internal assessment of all relevant material risks (e.g.,
underwriting, credit, market) potentially affecting their ability to meet policyholder obligations.
The ORSA Model Act requires insurers (or an insurance group, as applicable) to conduct an
ORSA at least annually and file an ORSA summary report based with their domestic regulator or
lead state (for an insurance group).
The CGAD Model Act and Regulation, which specify requirements for extensive disclosure of
regulated insurers' corporate governance practices, are designed to provide insurance regulators
with sufficient information on insurers’ governance practices through an annual reporting.
 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?
23
See generally s. 119.15, F.S.
24
Section 119.15(7), F.S.
25
Section 20.121(3)(a), F.S.
26
Ch. 2016-206, Laws of Fla. The ORSA and CGAD requirements are codified in ss. 628.8015, F.S. Section 628.803, F.S.,
provides sanctions for noncompliance with reporting requirements.
27
The OIR is a member of the National Association of Insurance Commissioners (NAIC), which is an association of state
insurance regulators. The NAIC coordinates regulation and examination of multistate insurers, and promotes uniform model
laws among the states. The NAIC accreditation is a certification that a state insurance regulator is fulfilling legal, financial,
and organizational standards. The NAIC establishes accreditation effective dates for states to adopt in substantially similar
form models and acts for purposes of NAIC accreditation review. The OIR is accredited by the NAIC.
28
National Association of Insurance Commissioners, The Risk Management and Own Risk and Solvency Assessment Model
Act (2012) https://content.naic.org/sites/default/files/inline-files/MDL-505.pdf?64 (last viewed Oct. 26, 2020).
29
National Association of Insurance Commissioners, Corporate Governance Annual Disclosure Model Act, (2014)
https://content.naic.org/sites/default/files/inline-files/MDL-305.pdf and the Corporate Governance Annual Disclosure Model
Regulation (2014) https://content.naic.org/sites/default/files/inline-files/MDL-306.pdf (last viewed October 26, 2020).
BILL: SB 7014 Page 5
Insurers or insurer groups must file a Corporate Governance Annual Disclosure (CGAD) with
their domestic regulator or the lead state regulator (for an insurance group). The CGAD Model
and Regulation require insurers to document highly confidential information about their
corporate governance framework, and submit annual disclosures to the insurance regulator. This
includes the policies of their boards of directors, procedure for the oversight of critical risk areas,
and appointment practices. Provisions in the model act and regulation require that states must
keep ORSA and CGAD documents confidential.
Open Government Sunset Review of the Public Records Exemption for Insurer Reporting
of Proprietary Business Information
Section 624.4212, F.S., defines insurer “proprietary business information”30 and makes such
information and related information held by the OIR confidential and exempt31 from
s. 119.07(1), F. S., and Art. I, s. 24(a) of the State Constitution.32 This includes proprietary
business information and supporting documents contained in documents, such as the actuarial
opinion summary, principle-based valuation report, enterprise risk report, insurance holding
company registration, ORSA summary report, and corporate governance annual disclosure. In
some instances, the OIR may disclose this confidential and exempt proprietary business
information to other state, federal, and international agencies.33
In 2016, the Legislature amended s. 624.4212, F.S., to provide that, except for information
obtained by the OIR which would otherwise be available for public inspection, that ORSA
summary reports, substantially similar ORSA reports, CGAD annual disclosure, and supporting
documents held by the OIR pursuant to s. 628.8015, F.S., 34 are confidential and exempt from
s. 119.07(1) and Art. I, s. 24(a) of the State Constitution. In creating the exemption, the
Legislature found that exempting the ORSA reports and CGAD disclosures, and supporting
information is a public necessity. The Legislature recognized that the release of the ORSA
reports, the CGAD annual disclosures, and supporting documents would injure the insurer in the
marketplace by providing competitors with the insurer’s confidential business information.
Section 624.4212, F.S., is repealed on October 2, 2021, unless reviewed and saved from repeal
by the Legislature pursuant to the Act. Further, the 2016 law35 enacting the amendments to s.
624.4212, F.S, provides that s. 628.8015, F.S., and the amendments made by this law to s.
628.803, F.S., are repealed on October 2, 2021, unless, before that date, the Legislature saves
30
Section 624.4212(1), F.S.
31
There is a difference between records the Legislature designates as exempt from public records requirements and those the
Legislature designates as confidential and exempt. A record classified as exempt from public disclosure may be disclosed
under certain circumstances. See WFTV, Inc. v. The School Board of Seminole, 874 So.2d 48 (Fla. 5th DCA 2004), review
denied 892 So.2d 1015 (Fla. 2004); City of Riviera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 2004); and Williams v.
City of Minneola, 575 So.2d 687 (Fla. 5th DCA 1991). If the Legislature designates a record as confidential and exempt
from public disclosure, the record may not be released by the custodian of public records to anyone other than the persons or
entities specifically designated in statute. See 85-62 Fla. Op. Att’y Gen. (1985).
32