This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1413.CIV
DATE: 1/25/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1413 Pub. Rec./Structured Settlement Payees
SPONSOR(S): Snyder
TIED BILLS: IDEN./SIM. BILLS: SB 1526
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice & Property Rights Subcommittee Mawn Jones
2) Government Operations Subcommittee
3) Judiciary Committee
SUMMARY ANALYSIS
Article I, section 24(a) of the Florida Constitution sets forth the state’s government records access policy,
guaranteeing every person a right to inspect or copy any public record of the legislative, executive, and judicial
branches of government. However, the Legislature may provide a public records exemption by general law if
the exemption passes by a two-thirds vote of each chamber, states with specificity the public necessity
justifying the exemption (“public necessity statement”), and is no broader than necessary to meet its public
purpose.
A "tort" is a wrong for which the law provides a remedy. The purpose of tort law is to fairly compensate a
person harmed by another person’s wrongful acts, whether intentional, reckless, or negligent, through a civil
action or other comparable process. A “structured settlement” is an arrangement for periodic payment of
damages for personal injuries established by settlement or judgment in resolution of a tort claim. Some payees
under a structured settlement—that is, the recipients—and their family members, dependents, and
beneficiaries, risk becoming the victims of criminal and other fraudulent acts connected to the disclosure of
personal identifying information and annuity contract numbers related to the settlement, which is currently
public record. This is due in part to the fact that Florida law generally authorizes a structured settlement
recipient, with court approval and compliance with statutory requirements, to sell, transfer, or otherwise assign
his or her right to receive payments under the settlement in exchange for a lump sum of cash. Dishonest
persons with access to a recipient’s personal identifying information or annuity contract number may contact
the recipient or his or her family members, dependents, or beneficiaries and use fraudulent sales tactics or
other deceptive methods to purchase or otherwise receive a right to payment under the settlement for terms
that are unfavorable to the recipient or otherwise unlawful.
HB 1413:
Exempts from public records requirements the personal identifying information and annuity contract
numbers of a structured settlement’s recipient and the names of such person’s family members,
dependents, and beneficiaries.
Provides a pubic necessity statement.
Provides for automatic sunset on October 2, 2027, unless reviewed and saved from repeal through
legislative reenactment.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2022.
Under article I, section 24(c) of the State Constitution, the bill requires a two-thirds vote of the
members present and voting for final passage.
STORAGE NAME: h1413.CIV PAGE: 2
DATE: 1/25/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Public Records
Article I, section 24(a) of the Florida Constitution sets forth the state’s government records access
policy, guaranteeing every person a right to inspect or copy any public record of the legislative,
executive, and judicial branches of government. However, the Legislature may provide a public records
exemption by general law if the exemption passes by a two-thirds vote of each chamber, states with
specificity the public necessity justifying the exemption (“public necessity statement”), and is no broader
than necessary to meet its public purpose.
1
Additionally, s. 119.07(1), F.S., guarantees every person a right to inspect and copy any state, county,
or municipal record, unless the record is exempt. Under the Open Government Sunset Review Act,
2
a
public records exemption may be created or maintained only if it serves an identifiable public purpose
and the “Legislature finds that the purpose is sufficiently compelling to override the strong public policy
of open government and cannot be accomplished without the exemption.”
3
Further, the exemption may
be no broader than is necessary to:
Allow the state or its political subdivisions to effectively and efficiently administer a governmental
program, which administration would be significantly impaired without the exemption;
Protect sensitive personal information that, if released, would be defamatory or would jeopardize
an individual’s safety;
4
or
Protect trade or business secrets.
5
Under s. 119.15(3), F.S., a new public records exemption or substantial amendment of an existing
public records exemption is generally automatically repealed on October 2 of the fifth year following
enactment, unless the Legislature reenacts the exemption. However, this provision does not apply to an
exemption that:
Is required by federal law; or
Applies solely to the State Legislature or the State Court System.
6
Court Proceedings and Records
Independent of constitutional and statutory provisions that generally require court files to be open to the
public, the courts have found that "both civil and criminal court proceedings in Florida are public events"
and that courts must "adhere to the well-established common law right of access to court proceedings
and records.”
7
A court may close a court file or a portion thereof on equitable grounds, but its ability to
do so is limited due to the Florida Supreme Court’s ruling that closure of court proceedings or records
should occur only when necessary to:
Comply with established public policy set forth in the constitution, statutes, rules, or case law;
Protect trade secrets;
Protect a compelling governmental interest (such as national security or confidential informant
identity);
Obtain evidence to properly determine legal issues in a case;
1
Art. I, s. 24(c), Fla. Const.
2
S. 119.15, F.S.
3
S. 119.15(6)(b), F.S.
4
Only an individual’s identity may be exempted under this provision.
5
Id.
6
S. 119.15(2), F.S.
7
Barron v. Florida Freedom Newspapers, Inc., 531 So. 2d 113, 116 (Fla. 1988). STORAGE NAME: h1413.CIV PAGE: 3
DATE: 1/25/2022
Avoid substantial injury to innocent third parties (such as to protect young witnesses from
offensive testimony or children in a divorce); or
Avoid substantial injury to a party by disclosure of matters protected by a common law or
privacy right not generally inherent in the specific type of civil proceeding sought to be closed.
8
Structured Settlements
A "tort" is a wrong for which the law provides a remedy. The purpose of tort law is to fairly compensate
a person harmed by another person’s wrongful acts, whether intentional, reckless, or negligent, through
a civil action or other comparable process. A “structured settlement” is an arrangement for periodic
payment of damages for personal injuries established by settlement or judgment in resolution of a tort
claim.
9
Some payees under a structured settlement—that is, the recipients—and their family members,
dependents, and beneficiaries,
10
risk becoming the victims of criminal and other fraudulent acts
connected to the disclosure of personal identifying information and annuity contract
11
numbers related
to the settlement, which is currently public record.
12
This is due in part to the fact that Florida law
generally authorizes a structured settlement recipient, with court approval and compliance with
statutory requirements, to sell, transfer, or otherwise assign his or her right to receive payments under
the settlement in exchange for a lump sum of cash.
13
Dishonest persons with access to a recipient’s
personal identifying information or annuity contract number may contact the recipient or his or her
family members, dependents, or beneficiaries and use fraudulent sales tactics or other deceptive
methods to purchase or otherwise receive a right to payment under the settlement for terms that are
unfavorable to the recipient or otherwise unlawful.
14
Effect of Proposed Changes
HB 1413 exempts from public records requirements the personal identifying information and annuity
contract numbers of a structured settlement’s recipient and the names of such person’s family
members, dependents, and beneficiaries.
The bill provides a pubic necessity statement indicating that the public records exemption is necessary
because structured settlement recipients have been the targets of criminal and fraudulent acts based
upon publicly available identifying information. The statement also provides that the harm that may
result from the release of personal identifying information and annuity contract numbers of a structured
settlement’s recipient and the names of such person’s family members, dependents, and beneficiaries
outweighs any public benefit that may be derived from such information’s disclosure.
The bill provides for automatic sunset on October 2, 2027, unless reviewed and saved from repeal
through legislative reenactment.
The bill provides an effective date of July 1, 2022.
8
Id., 531 So. 2d 118.
9
S. 626.99296(2)(m), F.S.
10
A person may be a beneficiary under a will or a trust.
11
An “annuity contract” is a contract that requires periodic payments for more than one full year to the person entitled to receive the
payments. A structured settlement typically involves an arrangement in which the defendant pays a lump sum to an insurance company
to buy an annuity in the settlement recipient’s name, after which the insurance company makes the periodic payments required under
the settlement’s terms. Internal Revenue Service, Annuities – A Brief Description, https://www.irs.gov/retirement-plans/annuities-a-brief-
description (last visited Jan. 24, 2022).
12
See s. 119.0714, F.S., providing exemptions for certain court files and records but not for files and records related to a structured
settlement.
13
S. 626.99296, F.S.
14
Alanna Ritchie, Annuity Scams, https://www.annuity.org/annuities/scams/ (last visited Jan. 24, 2022). STORAGE NAME: h1413.CIV PAGE: 4
DATE: 1/25/2022
B. SECTION DIRECTORY:
Section 1: Amends s. 119.0714, F.S., relating to court files.
Section 2: Provides a public necessity statement.
Section 3: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may keep structured settlement recipients and such persons’ family members, dependents, and
beneficiaries from becoming victims of criminal or other fraudulent acts connected to the public
disclosure of identifying information and annuity contract numbers related to the structured settlement.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
Vote Requirement
Article I, section 24(c) of the State Constitution requires a two-thirds vote of the members present
and voting for final passage of a newly created or expanded public records exemption.
Public Necessity Statement
Article I, section 24(c) of the State Constitution requires a public necessity statement for a newly
created or expanded public records exemption. The bill expands an existing public record exemption
and, thus, it requires, and includes, a public necessity statement.
STORAGE NAME: h1413.CIV PAGE: 5
DATE: 1/25/2022
Breadth of Exemption
Article I, section 24(c) of the State Constitution requires a newly created or expanded public records
exemption to be no broader than necessary to accomplish the stated purpose of the law.
B. RULE-MAKING AUTHORITY:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES