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 Governmental Oversight and Accountability
BILL: SB 7008
INTRODUCER: Banking and Insurance Committee
SUBJECT: OGSR/Financial Technology Sandbox
DATE: March 17, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
Moody Knudson BI Submitted as Comm. Bill/Fav
1. McVaney McVaney GO Pre-meeting
2. RC
I. Summary:
SB 7008 saves from repeal the current public records exemption for certain information held by
the Office of Financial Regulation (OFR) for certain records containing proprietary business
information related to the Financial Technology Sandbox, which offers financial technology
innovators a more flexible regulatory framework to operate in Florida for a limited time.
Specifically, the bill makes confidential and exempt from public disclosure requirements the
following information:
• The reasons why the general law or rule requirements for which an exception or waiver is
sought prevent the innovative financial product or service from being made available to
consumers;
• Certain information submitted to the OFR to consider in deciding whether to approve an
application for the Financial Technology Sandbox; and
• Information provided for evaluation of whether the applicant has a sufficient plan to test,
monitor, and assess the innovative financial product or service.
The Open Government Sunset Review Act requires the Legislature to review each public record
exemption 5 years after enactment. The affected exemption stands repealed on October 2, 2025,
unless reenacted by the Legislature. This bill removes the scheduled repeal of the exemptions,
thereby continuing the confidential and exempt status of the information.
The bill is not expected to affect state and local government revenues and expenditures.
The bill takes effect October 1, 2025.
REVISED: BILL: SB 7008 Page 2
II. Present Situation:
Florida Public Records Law
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
Chapter 119, F.S., known as the Public Records Act, constitutes the main body of public records
laws.
3
The Public Records Act states that:
[i]t is the policy of this state that all state, county, and municipal records are open
for personal inspection and copying by any person. Providing access to public
records is a duty of each agency.
4
The Public Records Act typically contains general exemptions that apply across agencies.
Agency- or program-specific exemptions often are placed in the substantive statutes
relating to that particular agency or program.
The Public Records Act does not apply to legislative or judicial records.
5
Legislative records are
public pursuant to s. 11.0431, F.S. Public records exemptions for the Legislature are codified
primarily in s. 11.0431(2)-(3), F.S., and adopted in the rules of each house of the legislature.
Section 119.011(12), F.S., defines “public records” to include:
[a]ll 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 which are used to “perpetuate,
communicate, or formalize knowledge of some type.”
6
The Florida Statutes specify conditions under which public access to governmental records must
be provided. The Public Records Act guarantees every person’s right to inspect and copy any
state or local government public record at any reasonable time, under reasonable conditions, and
1
FLA. CONST., art. I, s. 24(a).
2
Id.
3
Public records laws are found throughout the Florida Statutes.
4
Section 119.01(1), F.S.
5
Locke v. Hawkes, 595 So. 2d 32, 34 (Fla. 1992); see also Times Pub. Co. v. Ake, 660 So. 2d 255 (Fla. 1995).
6
Shevin v. Byron, Harless, Schaffer, Reid and Assoc. Inc., 379 So. 2d 633, 640 (Fla. 1980). BILL: SB 7008 Page 3
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
Only the Legislature may create an exemption to public records requirements.
9
An exemption
must be created by general law and must specifically state the public necessity justifying the
exemption.
10
Further, the exemption must be no broader than necessary to accomplish the stated
purpose of the law. A bill enacting an exemption may not contain other substantive provisions
11
and must pass by a two-thirds vote of the members present and voting in each house of the
Legislature.
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
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 Government Sunset Review Act
The Open Government Sunset Review Act
16
(the Act) prescribes a legislative review process for
newly created or substantially amended
17
public records or open meetings exemptions, with
specified exceptions.
18
It requires the automatic repeal of such exemption on October 2 of the
fifth year after creation or substantial amendment, unless the Legislature reenacts the
exemption.
19
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.
20
An exemption serves an identifiable public 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:
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.
11
The bill may, however, contain multiple exemptions that relate to one subject.
12
FLA. CONST. art. I, s. 24(c)
13
WFTV, Inc. v. The Sch. Bd. of Seminole County, 874 So. 2d 48, 53 (Fla. 5th DCA 2004).
14
Id.
15
Williams v. City of Minneola, 575 So. 2d 683 (Fla. 5th
DCA 1991).
16
Section 119.15, F.S.
17
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.
18
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.
19
Section 119.15(3), F.S.
20
Section 119.15(6)(b), F.S. BILL: SB 7008 Page 4
• It allows the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption;
21
• 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;
22
or
• It protects information of a confidential nature concerning entities, such as trade or business
secrets.
23
The Act also requires specified questions to be considered during the review process.
24
In
examining an exemption, the Act directs the Legislature to carefully 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 required.
25
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.
26
Public Record Exemption Related to Financial Technology Sandbox
The Financial Technology Sandbox is intended to allow financial technology innovators to test
innovative financial products or services in a supervised, flexible regulatory sandbox, using
waivers of specified general law and corresponding rule requirements under defined conditions.
27
The Financial Technology Sandbox makes confidential and exempt from public inspection and
copying the following records relating to the Financial Technology Sandbox applications
because they contain proprietary business information:
28
• The reasons why any of the following general law or rule requirements for which a waiver is
sought prevent the innovative financial product or service from being made available to
consumers, including requirements regarding:
21
Section 119.15(6)(b)1., F.S.
22
Section 119.15(6)(b)2., F.S.
23
Section 119.15(6)(b)3., F.S.
24
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?
25
FLA. CONST. art. I, s. 24(c). See generally s. 119.15, F.S.
26
Section 119.15(7), F.S.
27
Section 559.952, F.S.
28
Section 559.952(5)(h)1., F.S. BILL: SB 7008 Page 5
o An application for consumer finance lender license,
29
except specified requirements such
as certain fees and the OFR’s authority to investigate the applicant’s background.
30
o A license for consumer finance lender,
31
except that the OFR must investigate the
applicant’s background.
32
o An examination or investigation of a money services business
33
only to the extent that the
OFR is required to examine a licensee once every 5 years.
34
o Reports by a money services business.
35
o A license to engage in the business of a money transmitter or payment instrument seller
during the sandbox period.
36
o Providing each customer with contact information for the money services business and
displaying a license at specified locations.
37
o Certain license application provisions for a money services business.
38
o A license renewal for a money services business
39
except that the OFR may prorate
renewal fees in certain circumstances.
40
o Fees for a money services business
41
only to the extent that they are prorated for renewal
fees as provided above.
42
o A license for a payment instrument seller or money transmitter
43
only to the extent that
the requirement prohibits a licensee from engaging in, or advertising that it engages in,
the activity of a payment instrument seller or money transmitter during the sandbox
period.
44
o A license provision providing a sample form of payment instrument, if applicable.
45
o The authority for a money transmitter to charge a different price for a money transmitter
service based on the mode of transmission provided the price charged for using a credit
card is not more than the price charged when the service is paid with currency or other
similar means accepted within the same mode of transmission.
46
o A licensed payment instrument seller and money transmitter to have a specified net
worth, provide a corporate surety bond, or maintain collateral deposit in lieu of bond
47
to
the extent that the OFR may lower such amounts to be commensurate with certain
29
Section 516.03(1), F.S.
30
Section 559.952(5)(h)1.a., F.S.
31
Section 516.05(1) and (2), F.S.
32
Section 559.952(5)(h)1.a., F.S.
33
Section 560.109, F.S.
34
Section 559.952(5)(h)1.a., F.S.
35
Sections 559.952(5)(h)1.a. and 560.118, F.S.
36
Sections 559.952(5)(h)1.a. and 560.125(1), F.S.
37
Sections 559.952(5)(h)1.a. and 560.128, F.S.
38
Sections 559.952(5)(h)1.a. and 560.141, F.S.
39
Section 560.142(1) and (2), F.S.
40
Section 559.952(5)(h)1.a., F.S.
41
Section 560.143(2), F.S.
42
Section 559.952(5)(h)1.a., F.S.
43
Section 560.204, F.S.
44
Section 559.952(5)(h)1.a., F.S.
45
Section 559.952(5)(h)1.a. and 560.205(2), F.S.
46
Sections 559.952(5)(h)1.a. and 560.208(2), F.S.
47
Section 560.209, F.S. BILL: SB 7008 Page 6
factors
48
and the maximum number of consumers authorized to receive the financial
product or service.
49
• Specified information that the OFR must consider in deciding whether to approve or deny an
application for the Financial Technology Sandbox
50
regarding the nature of the innovative
financial product or service and the applicant’s business plan;
51
and
• Information provided for evaluation of whether the applicant has a sufficient plan to test,
monitor, and assess the innovative financial product or service.
52
This information may be released to appropriate state and federal agencies for the purposes of
investigation.
53
III. Effect of Proposed Changes:
Section 1 amends s. 559.952(5)(h)1., F.S., to remove the scheduled repeal date of the public
record exemption for information held by the OFR relating to a Financial Technology Sandbox
application.
The OFR reports that 14 Financial Technology Sandbox applications have been received but
none of them have been approved. The OFR states “Applicants either withdrew their application
or the application was abandoned for failing to respond to requests for information.”
54
Section 2 provides that the bill is effective October 1, 2025.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Not applicable. The bill does not require counties or municipalities to take an action
requiring the expenditure of funds, reduce the authority that counties or municipalities
have to raise revenue in the aggregate, nor reduce the percentage of state tax shared with
counties or municipalities.
B. Public Records/Open Meetings Issues:
Vote Requirement
Article I, s. 24(c) of the State Constitution requires a two-thirds vote of the members
present and voting for final passage of a bill creating or expanding an exemption to the
48
Section 559.952(5)(c), F.S. (providing certain factors that the OFR must consider when deciding whether to approve or
deny an application, such as the nature of the innovative financial product, the potential risk to consumers and methods that
will be used to protect them, the business plan, and whether the applicant has the necessary personnel with adequate
expertise).
49
Section 559.952(5)(h)1.a., F.S.
50
Section 559.952(5)(h)1.b., F.S.
51
Section 559.952(5)(c)1. and 3., F.S.
52
Section 559.952(5)(c)4. and (h)1.c., F.S.
53
Id.
54
The OFR, OGSR Questionnaire, p. 2 (July 26, 2024) (on file with the Senate Committee on Banking and Insurance). BILL: SB 7008 Page 7
public records disclosure requirements. This bill continues a current public records
exemption beyond its current date of repeal. The bill does not create or expand an
exemption. Thus, the bill does not require an extraordinary vote for enactment.
Public Necessity Statement
Article I, s. 24(c) of the State Constitution requires a bill creating or expanding an
exemption to the public records disclosure requirements to state with specificity the
public necessity justifying the exemption. This bill continues a current public records and
public meetings exemption without expansion. Thus, a statement of public necessity is
not required.
Breadth of Exemption
Article I, s. 24(c) of the State Constitution requires an exemption to the public records
disclosure requirements to be no broader than necessary to accomplish the stated purpose
of the law. The exemption in the bill does not appear to be broader than necessary to
accomplish the purpose of the law. The bill provides the specific information that would
be made exempt to prevent the unintentional release of information that may injure the
financial technology innovator applying for a license under the Financial Technology
Sandbox by providing competitors with confidential business information.
C. Trust Funds Restrictions:
None identified.
D. State Tax or Fee Increases:
None identified.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None identified.
B. Private Sector Impact:
The private sector will continue to be subject to the cost associated with an agency’s
review and redactions of exempt records in response to a public records request.
C. Government Sector Impact:
The government sector will continue to incur costs related to the review and redaction of
exempt records associated with responding to public records requests. BILL: SB 7008 Page 8
VI. Technical Deficiencies:
None identified
VII. Related Issues:
None identified.
VIII. Statutes Affected:
This bill amends section 559.952 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.