This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h7005a.SAC
DATE: 1/17/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 7005 PCB EEG 24-03 OGSR/Financial Disclosure
SPONSOR(S): Ethics, Elections & Open Government Subcommittee, Holcomb
TIED BILLS: IDEN./SIM. BILLS: SB 7012
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Ethics, Elections & Open
Government Subcommittee
12 Y, 0 N Poreda Toliver
1) State Affairs Committee 20 Y, 0 N Poreda Williamson
SUMMARY ANALYSIS
The Open Government Sunset Review Act requires the Legislature to review each public record exemption
and each public meeting exemption five years after enactment. If the Legislature does not reenact the
exemption, it automatically repeals on October 2nd of the fifth year after enactment.
The Code of Ethics for Public Officers and Employees establishes ethical standards for public officials and is
intended to ensure that public officials conduct themselves independently and impartially. The Commission on
Ethics (Commission) is an independent commission that, in part, maintains financial disclosure filings of public
officers, candidates for public office, and certain public employees.
The State Constitution requires elected constitutional officers, candidates for such offices, and statewide
elected officers to file a “full and public disclosure of their financial interests.” Other public officers, candidates,
and public employees may be required to file a full and public disclosure of their financial interests as
determined by law. Individuals filing a full and public disclosure use the Commission’s CE Form 6 (Form 6).
Current law also requires a less detailed disclosure of financial interests using the Commission’s CE Form 1
(Form 1) for certain local officers, including certain officers holding elected positions in political subdivisions of
the state, as well as specified appointed officers. Other persons filing Form 1 include specified state officers
and employees as well as persons seeking to qualify as candidates for state or local office.
In 2015, the Commission began the process of transitioning from a paper-based filing system for financial
disclosures to an electronic filing system. Form 6 filers began filing electronically as of January 1, 2023, and
Form 1 began using the electronic filing system as of January 1, 2024.
The bill saves from repeal the public record exemptions for all secure login credentials held by the Commission
for the purpose of allowing access to the electronic financial disclosure filing system, as well as information
entered into the system prior to submission for the purpose of making the disclosure. The exemptions will
repeal on October 2, 2024, if this bill does not become law.
The bill does not appear to have a fiscal impact on state government or local governments.
STORAGE NAME: h7005a.SAC PAGE: 2
DATE: 1/17/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Open Government Sunset Review Act
The Open Government Sunset Review Act (OGSR Act)
1
sets forth a legislative review process for
newly created or substantially amended public record or public meeting exemptions. It requires an
automatic repeal of the exemption on October 2nd of the fifth year after creation or substantial
amendment, unless the Legislature reenacts the exemption.
2
The OGSR Act provides that a public record or public meeting exemption may be created or maintained
only if it serves an identifiable public purpose. In addition, it may be no broader than is necessary to
meet one of the following purposes:
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; however, only the identity of an individual may be exempted
under this provision.
Protect trade or business secrets.
3
If, and only if, in reenacting an exemption that will repeal, the exemption is expanded, then a public
necessity statement and a two-thirds vote for passage are required.
4
If the exemption is reenacted with
grammatical or stylistic changes that do not expand the exemption, if the exemption is narrowed, or if
an exception to the exemption is created,
then a public necessity statement and a two-thirds vote for
passage are not required.
The Code of Ethics for Public Officers and Employees
The Code of Ethics for Public Officers and Employees (Code of Ethics)
5
establishes ethical standards
for public officials and is intended to “ensure that public officials conduct themselves independently and
impartially, not using their offices for private gain other than compensation provided by law.”
6
The Code
of Ethics pertains to various ethical issues, such as ethics trainings, voting conflicts, full and public
disclosure of financial interests, standards of conduct, and the Commission on Ethics (Commission).
7
Commission on Ethics
The State Constitution requires the creation of an independent commission to conduct investigations
and make public reports on all complaints concerning breach of public trust by public officers or
employees not within jurisdiction of the judicial qualifications commission.
8
The Commission was
created by the Legislature in 1974 “to serve as guardian of the standards of conduct” for state and local
public officials and employees.
9
In addition to its constitutional duties, the Commission, in part:
Renders advisory opinions to public officials.
10
1
Section 119.15, F.S.
2
Section 119.15(3), F.S.
3
Section 119.15(6)(b), F.S.
4
Article I, s. 24(c), FLA. CONST.
5
See Pt. III, Ch. 112, F.S.; see also Art. II, s. 8(h)(1), FLA. CONST.
6
Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public Officers and Employees, available
at http://www.ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf (last visited December 19, 2023).
7
See Pt. III, Ch. 112, F.S.
8
Article II, s. 8(g), FLA. CONST.
9
Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public Officers and Employees, available
at http://www.ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf (last visited December 19, 2023); see also s.
112.320, F.S.
10
Section 112.322(3)(a), F.S. STORAGE NAME: h7005a.SAC PAGE: 3
DATE: 1/17/2024
Makes recommendations to disciplinary officials when appropriate for violations of ethics and
disclosure laws.
11
Administers the executive branch lobbying registration and reporting law.
12
Maintains financial disclosure filings of constitutional officers and state officers and
employees.
13
Administers automatic fines for public officers and employees who fail to timely file their
required annual financial disclosure.
14
Disclosure of Financial Interests
The State Constitution requires elected constitutional officers, candidates for such offices, and
statewide elected officers to file a “full and public disclosure of their financial interests.”
15
Other public
officers, candidates, and public employees may be required to file a full and public disclosure of their
financial interests as determined by law.
16
The term “full and public disclosure of financial interests” means the reporting individual must disclose
his or her net worth and the value of each asset and liability in excess of $1,000.
17
The disclosure must
be accompanied by either a copy of the filer’s most recent federal income tax return or a sworn
statement that identifies each separate source and amount of income that exceeds $1,000.
18
The
Commission has created by rule CE Form 6 (Form 6) to be used to make the required full and public
financial disclosure.
19
Currently, individuals holding the following positions must file Form 6:
20
Governor.
Lieutenant Governor.
Cabinet members.
Legislators.
State attorneys.
Public defenders.
Clerks of circuit court.
Sheriffs.
Tax collectors.
Property appraisers.
Supervisors of elections.
County commissioners.
Mayors and elected members of a municipal governing body.
Elected superintendents of schools.
District school board members.
Jacksonville City Council members, including the mayor.
Judges of compensation claims.
Duval County Superintendent of Schools.
Florida Housing Finance Corporation board members.
Each member of a large-hub commercial service airport.
11
Section 112.322(2)(b), F.S.
12
Sections 112.3215 and 112.32155, F.S.
13
Section 112.3144, F.S.
14
Section 112.31455, F.S.; see also Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public
Officers and Employees, available at http://www.ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf (last visited
December 19, 2023).
15
Article II, s. 8(a), FLA. CONST.
16
See s. 112.3144(1), F.S.
17
Article II, s. 8(j)(1), FLA. CONST.
18
Id.; see also s. 112.3144, F.S.
19
Section 112.3144(8), F.S.; see also r. 34-7.010, F.A.C.
20
Rule 34-8.003, F.A.C.; see also Commission on Ethics, Filing Information, available at
https://www.ethics.state.fl.us/Documents/Forms/Form1.html#form_6 (last visited December 19, 2023). STORAGE NAME: h7005a.SAC PAGE: 4
DATE: 1/17/2024
Each member of an expressway authority, a transportation authority (except the Jacksonville
Transportation Authority), a bridge authority, or a toll authority created pursuant to chapter 343,
F.S., or chapter 348, F.S., or any other general law.
Reporting individuals must file Form 6 annually with the Commission by 11:59 p.m. on July 1.
21
Additionally, candidates for a constitutional office must make a full and public disclosure of their
financial interests at the time of qualifying.
Current law requires a less detailed disclosure of financial interests using the Commission’s CE Form 1
(Form 1) for certain local officers, including certain officers holding elected positions in political
subdivisions of the state, as well as specified appointed officers.
22
Other persons filing Form 1 include
specified state officers and employees as well as persons seeking to qualify as candidates for state or
local office.
23
Form 1 requires individuals to disclose their primary sources of income, other than their
public position, secondary sources of income, real property, intangible personal property, liabilities, and
interests in specific businesses.
24
Although no specific dollar values of incomes, property, or liabilities are required to be reported, the filer
must report which assets or liabilities exceed certain dollar thresholds.
25
Form 1 filers must disclose all
sources of income in excess of $2,500, excluding public salary, all sources of income from a business
entity that the filers had a material interest in where their gross income was in excess of $5,000 and in
excess of 10 percent of the business’ gross income. Form 1 filers must also disclose any property,
except for their residence or vacation home, in which the person owns more than 5 percent of the value
of the property, as well as any intangible property in excess of $10,000 and any liability in excess of
$10,000.
26
Form 1 must be filed annually with the Commission by 11:59 p.m. on July 1.
27
Electronic Financial Disclosure
In 2015, the Commission began the process of transitioning from a paper-based filing system for
financial disclosures to an electronic filing system.
28
That system was procured and testing began in
2022.
29
Form 6 filers began filing electronically as of January 1, 2023,
30
and Form 1 filers began using
the electronic filing system as of January 1, 2024.
31
Public Record Exemptions under Review
In 2019, the Legislature created two public record exemptions to facilitate the use of the electronic
financial disclosure system.
32
The first exemption protected all secure login credentials held by the
Commission for the purpose of allowing access to the electronic financial disclosure filing system. The
second exemption protected information entered into the system prior to submission for the purpose of
21
Section 112.3144(8)(d), F.S.
22
Section 112.3145, F.S.
23
Id.
24
Id.
25
Section 112.3145(3), F.S
26
Section 112.3145(3)(b), F.S.
27
Section 112.3145(2)(b), F.S.
28
Section 112.31445, F.S.
29
Section 112.31446(2), F.S.
30
Section 112.3144(8)(b)2., F.S.
31
Section 112.3145(2)(e), F.S.
32
Section 112.31446(6), F.S. STORAGE NAME: h7005a.SAC PAGE: 5
DATE: 1/17/2024
making the disclosure.
33
Once information entered into the system is submitted to the Commission or
filed with a qualifying officer, the information loses its exempt
34
status and becomes public.
35
The 2019 public necessity statement
36
provides that:
The Legislature finds that the public's need for access to information included in
the full and public disclosures of financial interests or statements of financial
interests filed by reporting individuals be balanced with the filer's interest in
safeguarding personally sensitive information. The Legislature further finds that
the unintentional publication of such information may subject the filer to identity
theft, financial harm, or other adverse impacts.
37
Pursuant to the OGSR Act, the exemptions will repeal on October 2, 2024, unless reenacted by the
Legislature.
During the 2023 interim, House and Senate staff met with Commission staff regarding the public record
exemptions under review. Commission staff emphasized the importance of the exemptions as it
protects secure login credentials to the electronic filing system itself, as well as personally sensitive
information that may subject the filer to identity theft, financial harm, or other adverse impacts if it was
not protected. As such, Commission staff recommended the exemptions be reenacted as is.
Effect of the Bill
The bill removes the scheduled repeal date of the public record exemptions, thereby maintaining the
public record exemptions for all secure login credentials used to access the electronic financial
disclosure filing system, as well as information entered into the system for the purpose of making the
disclosure prior to submission.
B. SECTION DIRECTORY:
Section 1 amends s. 112.31446, F.S., relating to electronic filing system for financial disclosure.
Section 2 provides an effective date of October 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
33
Section 112.31446(6)(a), F.S.
34
There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature
designates confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain
circumstances. See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied, 892 So.2d 1015 (Fla.
2004); State v. Wooten, 260 So. 3d 1060, 1070 (Fla. 4th DCA 2018); City of Rivera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA
1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991). If the Legislature designates a record as confidential
and exempt from public disclosure, such record may not be released by the custodian of public records to anyone other than the
persons or entities specifically designated in statute. See Op. Att’y Gen. Fla. 04- 09 (2004).
35
Section 112.31446(6)(b), F.S.
36
Article I, s. 24(c), FLA. CONST., requires each public record exemption to “state with specificity the public necessity justifying the
exemption.”
37
Chapter 2019-40, L.O.F. STORAGE NAME: h7005a.SAC PAGE: 6
DATE: 1/17/2024
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
None.