Florida 2024 2024 Regular Session

Florida House Bill H7047 Analysis / Analysis

Filed 01/25/2024

                    This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h7047a.ECC 
DATE: 1/25/2024 
 
HOUSE OF REPRESENTATIVES STAFF ANALYSIS  
 
BILL #: HB 7047          PCB EEG 24-07    OGSR/Utility Owned or Operated by a Unit of Local 
Government 
SPONSOR(S): Ethics, Elections & Open Government Subcommittee, Porras 
TIED BILLS:   IDEN./SIM. BILLS: SB 7006 
 
REFERENCE 	ACTION ANALYST STAFF DIRECTOR or 
BUDGET/POLICY CHIEF 
Orig. Comm.: Ethics, Elections & Open 
Government Subcommittee 
16 Y, 0 N Poreda Toliver 
1) Energy, Communications & Cybersecurity 
Subcommittee 
14 Y, 0 N Phelps Keating 
2) State Affairs Committee    
SUMMARY ANALYSIS 
The Open Government Sunset Review (OGSR) 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 2
nd
 of the fifth year after enactment. 
 
Municipalities are authorized by general law to provide water and sewer utility services, as well as electric and 
natural gas utility services. Counties are authorized to provide water and sewer utility services both within their 
individual boundaries and in adjoining counties.  Current law provides public record exemptions for the 
following information held by a utility owned or operated by a unit of local government (local government utility): 
 Information related to the security of a local government utility's technology, processes, and practices 
designed to protect the utility’s networks, computers, programs, and data from attack, damage, or 
unauthorized access that, if disclosed, would facilitate the alteration, disclosure, or destruction of such 
data or information technology (I.T.) resources. 
 Information related to the security of a local government utility’s existing or proposed I.T. systems or 
industrial control technology systems that, 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 
operations of the systems and the utility. 
 Customer meter-derived data and billing information in increments of less than one billing cycle. 
 
Current law also provides a public meeting exemption for the portions of meetings held by a local government 
utility that would reveal information exempt from disclosure by the public records exemptions discussed above. 
The exemption requires that all closed portions be recorded and transcribed and that such recordings and 
transcripts are confidential and exempt from disclosure as public records. 
 
In 2022, the Legislature created a general public record exemption, applicable to all agencies, for certain 
information related to cybersecurity. Pursuant to the OGSR Act, the exemption for cybersecurity information 
will repeal on October 2, 2027, unless reviewed and saved from repeal by the Legislature. 
 
The bill extends the repeal date for the public record exemptions related to I.T. security and the public meeting 
exemption to October 2, 2027, to coincide with the future OGSR repeal date of the general cybersecurity 
exemption in statute. The bill saves from repeal the public record exemption related to customer meter-derived 
data and billing information. Each of 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: h7047a.ECC 	PAGE: 2 
DATE: 1/25/2024 
  
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 2
nd
 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. 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 are 
not required.
4
 
 
Local Government Utilities 
The Florida Constitution grants municipalities the governmental, corporate, and proprietary powers 
necessary to enable them to conduct municipal government, perform municipal functions, and render 
municipal services, and permits them to exercise any power for municipal purposes, except when 
expressly prohibited by law.
5
 
 
Counties not operating under a charter have the power of self-government as provided by general or 
special law, while charter counties have all powers of self-government not inconsistent with general law 
or with special law approved by the county electors.
6
  Counties are authorized by general law to 
provide water and sewer utility services both within their individual boundaries and in adjoining 
counties.
7
 Municipalities are authorized by general law to provide water and sewer utility services
8
 as 
well natural gas services
9
 and electric and gas utilities
10
  
 
Florida Public Service Commission  
                                                
1
 S. 119.15, F.S. 
2
 S. 119.15(3), F.S. 
3
 S. 119.15(6)(b), F.S. 
4
 Article I, s. 24(c), Fla. Const. 
5
 Article VIII, s. 2(b), Fla. Const. 
6
 Article VIII, s. 1(f)-(g), Fla. Const. 
7
 Ss. 125.01(1)(k)1., F.S. and 153.03, F.S. 
8
 Pursuant to s. 180.06, F.S., a municipality may “provide water and alternative water supplies;” “provide for the collection and disposal 
of sewage, including wastewater reuse, and other liquid wastes;” and “construct reservoirs, sewerage systems, trunk sewers, 
intercepting sewers, pumping stations, wells, siphons, intakes, pipelines, distribution systems, purification works, collection systems, 
treatment and disposal works” to accomplish these purposes. 
9
 S. 180.06(8), F.S. 
10
 Ch. 366, F.S.  STORAGE NAME: h7047a.ECC 	PAGE: 3 
DATE: 1/25/2024 
  
The Florida Public Service Commission (PSC) ensures Florida’s consumers receive utility services, 
including electric, natural gas, telephone, water, and wastewater, “in a safe, affordable, and reliable 
manner.”
11
  The PSC primarily regulates investor owned utilities but is able to exercise limited authority 
over publicly owned utilities in the following areas:
12
  
 Rate base or economic regulation. 
 Competitive market oversight. 
 Monitoring of safety, reliability and service. 
 
Utility Customer Consumption Data 
Traditional, analog utility meters record consumption at a utility customer’s premises. On a regular, 
periodic basis, the meter is “read” in person by a utility employee to determine how much of the utility’s 
service — electric, natural gas, or water/wastewater — was used at the premises since the last meter 
reading. This data is used by the utility for purposes of customer billing. In recent years, utilities have 
deployed, to varying degrees, newer “smart meter”
13
 technologies that measure a utility customer’s 
consumption on a more frequent basis (e.g., hourly) and transmit this data automatically and wirelessly 
to the utility. The utility still uses this data for billing purposes but can also use it to monitor its system 
and identify and locate problems more quickly.
14
   
 
Cybersecurity Public Record Exemption 
In 2022, the Legislature passed CS/HB 7057, which created a general public record exemption — 
applicable to all agencies
15
 — for the certain information related to cybersecurity.
16
 Specifically, CS/HB 
7057, which was codified as s. 119.0725, F.S., protected the following information: 
 Information related to critical infrastructure.
17
 
 Network schematics, hardware and software configurations, or encryption information or 
information that identifies detection, investigation, or response practices for suspected or 
confirmed cybersecurity incidents, including suspected or confirmed breaches, if the disclosure 
of such information would facilitate unauthorized access to or unauthorized modification, 
disclosure, or destruction of: 
o Data or information, whether physical or virtual; or 
o Information technology (I.T.) resources, which include an agency’s existing or proposed 
I.T. systems.  
 Coverage limits and deductible or self-insurance amounts of insurance or other risk mitigation 
coverages acquired for the protection of I.T. systems, operational technology systems, or data 
of an agency. 
 Cybersecurity incident information contained in certain reports. 
 
CS/HB 7057 (2022) also created a public meeting exemption for any portion of a meeting that would 
reveal the confidential and exempt information; however, any portion of an exempt meeting must be 
recorded and transcribed.
18
 The recording and transcript are confidential and exempt from public record 
requirements.
19
 
                                                
11
 Florida Public Service Commission, About, available at https://www.psc.state.fl.us/about (last visited Jan. 15, 2024).  
12
 Florida Public Service Commission, 2022 Annual Report, available at https://www.floridapsc.com/pscfiles/website-
files/PDF/Publications/Reports/General/AnnualReports/2022.pdf (last visited January 16, 2024) 
13
 See Florida Public Service Commission, Smart Meters, available at https://www.floridapsc.com/pscfiles/website-
files/pdf/Utilities/Electricgas/SmartMeters/SmartMeter.pdf (last visited January 16, 2024). 
14
 Id. 
15
 “Agency” means 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 ch. 119, F.S., 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. S. 119.011(2), F.S. 
16
 See s. 119.0725, F.S.  
17
 “Critical infrastructure” means existing and proposed information technology and operation technology systems and assets, whether 
physical and virtual, the incapacity or destruction of which would negatively affect security, economic security, public health, or public 
safety. S. 119.0725(1)(b), F.S.  
18
 S. 119.0725(3), F.S.  
19
 Id.  STORAGE NAME: h7047a.ECC 	PAGE: 4 
DATE: 1/25/2024 
  
 
Public Record and Public Meeting Exemptions under Review 
In 2016, the Legislature created a public record exemption that made the following information held by 
a utility
20
 owned or operated by a unit of local government (local government utility) confidential and 
exempt
21
 from public record requirements: 
 Information related to the security of a local government utility's technology, processes, and 
practices designed to protect the utility’s networks, computers, programs, and data from attack, 
damage, or unauthorized access that, if disclosed, would facilitate the alteration, disclosure, or 
destruction of such data or I.T. resources. 
 Information related to the security of a local government utility’s existing or proposed I.T. 
systems or industrial control technology systems that, 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 operations of the systems and the utility.
22
 
 
In 2019, the Legislature created a public record exemption that made customer meter-derived data and 
billing information in increments of less than one billing cycle held by a local government utility 
confidential and exempt from public record requirements.
23
 Additionally, in that same year, the 
Legislature created a public meeting exemption for any portion of a meeting held by a local government 
utility that would reveal information made exempt pursuant to the local government utility’s public record 
exemption.
24
 All closed portions of such a meeting must be recorded and transcribed and such 
recording or transcription are exempt from public record requirements.
25
  
 
The 2016 public necessity statement
26
 for the public record exemptions for certain I.T. security 
information provided that: 
 
[M]any utilities have adopted technologies, processes, and practices designed to 
secure data, information technology systems, and industrial control technology 
systems. Disclosure of sensitive information related to these security measures 
could result in the identification of vulnerabilities that allow a security breach that 
damages utility systems and disrupts the safe and reliable operation of such 
systems, adversely impacting the public health and safety and the economic well-
being of the state. Because of the interconnected nature of utility systems, a 
security breach may also impact national security concerns.
27
 
 
The 2019 public necessity statement for the public record exemption for customer meter-derived data 
and billing information provided that: 
 
Smart meters, which can record and transmit detailed data on a customer's use of 
utility services, present unique security concerns. These concerns were addressed 
in a report released in October 2010 by the United States Department of Energy 
titled “Data Access and Privacy Issues related to Smart Grid Technologies.” The 
                                                
20
 “Utility” means a person or entity that provides electricity, natural gas, telecommunications, water, chilled water, reuse water, or 
wastewater. S. 119.011(15), F.S.  
21
 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). 
22
 Chapter 2016-95, L.O.F., codified as s. 119.0713(5), F.S.  
23
 Chapter 2019-38, LO.F., codified as s. 119.0713(5)(a)3., F.S. 
24
 Chapter 2019-37, L.O.F., codified as s. 286.0113(3), F.S. 
25
 S. 286.0113(3)(a), F.S. However, a court of competent jurisdiction, following an in-camera review, may determine that the meeting 
was not restricted to the discussion of data and information made exempt, and in that event, the portion of the recording or transcript 
which reveals nonexempt data and information may be disclosed to a third party. 
26
 Article I, s. 24(c), FLA. CONST., requires each public record exemption to “state with specificity the public necessity justifying the 
exemption.” 
27
 Ch. 2016-95, L.O.F.  STORAGE NAME: h7047a.ECC 	PAGE: 5 
DATE: 1/25/2024 
  
report recommended that customer data be protected from release to third parties. 
This detailed customer data can be used to specifically identify minute-by-minute 
usage patterns, including the exact appliance or service being used. This 
information creates significant security issues for both businesses and 
homeowners.
28
 
 
The 2019 public necessity statement for the public meeting exemption provided that: 
 
[A]s utility system infrastructure becomes more connected and integrated through 
information and communications technology, the exposure to damage from attacks 
through such technology grows. These attacks may result in the disruption of utility 
services and damage to utility systems. Maintaining safe and reliable utility 
systems is vital to protecting the public health and safety and to ensuring the 
economic well-being of this state.
29
 
 
Pursuant to the OGSR Act, each of the above exemptions will repeal on October 2, 2024, unless 
reenacted by the Legislature.   
 
During the 2023 interim, House and Senate committee staff jointly developed a questionnaire and sent 
the questionnaires to city and county governments. In total, staff received 39 responses from those 
entities.
30
 Most respondents indicated that they were unaware of any litigation concerning the 
exemptions and had not encountered any issues interpreting or applying the exemptions. The vast 
majority of respondents indicated that the exemptions be reenacted as is and no respondent 
recommended eliminating the public record or public meeting exemptions. As a part of the 
questionnaire, respondents were asked to consider whether the local government utility I.T. security 
exemptions were duplicative of the general cybersecurity exemption in s. 119.0725, F.S. Some 
respondents noted that there may be some overlap between the exemption. 
 
Effect of the Bill 
 
The bill extends the repeal date for the public record exemptions related to local government utility I.T. 
security and the public meeting exemption to October 2, 2027, to coincide with the future OGSR repeal 
date of the general cybersecurity exemption in s. 119.0725, F.S. The bill saves from repeal the public 
record exemption for customer meter-derived data and billing information in increments of less than 
one billing cycle held by a local government utility. Each of the exemptions under review will repeal on 
October 2, 2024, if this bill does not become law  
 
B. SECTION DIRECTORY: 
Section 1 amends s. 119.0713, F.S., relating to local government agency exemptions from inspection 
or copying of public records. 
 
Section 2 amends s. 286.0113, F.S., relating to general exemptions from public meetings. 
 
Section 3 provides an effective date of October 1, 2024. 
 
II.  FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 
 
A. FISCAL IMPACT ON STATE GOVERNMENT: 
 
1. Revenues: 
None. 
                                                
28
 Ch. 2019-38, L.O.F.  
29
 Ch. 2019-37, L.O.F. 
30
 Open Government Sunset Review Questionnaire, Public Records and Public Meetings Related to utilities owned or operated by a 
unit of local government, responses on file with the Ethics, Elections & Open Government Subcommittee.  STORAGE NAME: h7047a.ECC 	PAGE: 6 
DATE: 1/25/2024 
  
 
2. Expenditures: 
None. 
 
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. The bill does not appear to require counties or municipalities to spend funds or take 
action requiring the expenditure of funds; reduce the authority that counties and municipalities have 
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties and 
municipalities. 
 
 2. Other: 
None. 
 
B. RULE-MAKING AUTHORITY: 
The bill does not require rulemaking nor confer rulemaking authority. 
 
C. DRAFTING ISSUES OR OTHER COMMENTS: 
None. 
 
IV.  AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES 
Not applicable.