Subcommittee keeps confidentiality protections for fintech sandbox applicants

Representative Sapp presented a PCB to "save from repeal" a public-records exemption for "certain sensitive business information, submitted to the office of financial regulation as part of a business entities application to offer" services through a financial-technology sandbox. The exemption, like the other OGSR items considered, would automatically repeal Oct. 2 unless the Legislature reenacts it.

In committee discussion, Representative Sapp and members stressed that proprietary and prepared materials submitted by companies in the sandbox could discourage firms from applying if they risked public disclosure. "You have a lot of financial, especially in the sandbox here, companies that have sensitive prepared proprietary information that they would not even submit to us if they risked, that information becoming public," Sapp said.

Members offered collegial remarks and expressed support; Representative Nix and Representative Rosenwald both said they planned to vote in favor. There were no amendments, no public testimony, and Representative Sapp waived closing remarks.

The subcommittee called the roll and the clerk reported PCB GOS 25-03 "reported favorably." The roll call recorded affirmative votes from Chair Cheney and Representatives Alvarez, Aristide, Campbell, Connelly (recorded in the transcript as "Connelly"), Gentry, Greco, Griffiths, Holcomb, Joseph, Nicks, Placencia, Rosenwald, Sapp, Stark, Valdez and Weinberger; Besavvy was excused.

The bill would preserve the confidentiality framework for sensitive proprietary business information submitted to the Office of Financial Regulation in connection with sandbox applications; the transcript does not specify any budgetary impact or additional regulatory changes.