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T H E C A B I N E T
S T A T E O F F L O R I D A
Representing:
VOTE ON PROPOSED 2002 MEETING SCHEDULE
DIVISION OF BOND FINANCE
DEPARTMENT OF LAW ENFORCEMENT
STATE BOARD OF EDUCATION
DEPARTMENT OF REVENUE
BOARD OF TRUSTEES OF THE
INTERNAL IMPROVEMENT TRUST FUND
FINANCIAL MANAGEMENT INFORMATION BOARD
STATE BOARD OF ADMINISTRATION
The above agencies came to be heard before
THE FLORIDA CABINET, Honorable Governor Bush
presiding, in the Knott Building,
111 West St. Augustine Road, Room 212, Tallahassee,
Florida, on Tuesday, August 28, 2001, commencing at
approximately 9:19 a.m.
Reported by:
LAURIE L. GILBERT
Registered Professional Reporter
Certified Court Reporter
Certified Realtime Reporter
Registered Merit Reporter
Notary Public in and for
the State of Florida at Large
ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
TALLAHASSEE, FLORIDA 32301
850/878-2221
2
APPEARANCES:
Representing the Florida Cabinet:
JEB BUSH
Governor
CHARLES H. BRONSON
Commissioner of Agriculture
BOB MILLIGAN
Comptroller
KATHERINE HARRIS
Secretary of State
BOB BUTTERWORTH
Attorney General
TOM GALLAGHER
Treasurer
CHARLIE CRIST
Commissioner of Education
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ACCURATE STENOTYPE REPORTERS, INC.
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August 28, 2001
I N D E X
ITEM ACTION PAGE
VOTE ON PROPOSED 2002
MEETING SCHEDULE:
Deferred 5
DIVISION OF BOND FINANCE:
(Presented by J. Ben Watkins, III,
Director)
1 Approved 6
2 Approved
3 Approved 7
4 Approved 7
5 Approved 8
DEPARTMENT OF LAW ENFORCEMENT:
(Presented by James T. Moore,
Executive Director)
1 Approved 9
2 Approved 33
3 Approved 34
4 Approved 38
STATE BOARD OF EDUCATION:
(Presented by Wayne V. Pierson,
Deputy Commissioner)
1 Approved 39
DEPARTMENT OF REVENUE:
(Presented by James A. Zingale, Ph.D.,
Executive Director)
1 Approved 40
2 Approved 48
ACCURATE STENOTYPE REPORTERS, INC.
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August 28, 2001
I N D E X
(Continued)
ITEM ACTION PAGE
BOARD OF TRUSTEES OF THE
INTERNAL IMPROVEMENT
TRUST FUND:
(Presented by David B. Struhs,
Secretary)
1 Approved 52
2 Approved 53
3 Approved 54
4 Approved 71
5 Approved 87
6 For Discussion Only 88
7 Approved 88
8 Deferred 88
FINANCIAL MANAGEMENT INFORMATION BOARD:
(Presented by Martin L. Young,
Financial Administrator)
1 Approved 136
2 Approved 146
3 Approved 146, 148
4 Approved 150
STATE BOARD OF ADMINISTRATION:
(Presented by Tom Herndon,
Executive Director)
1 Approved 151
2 Approved 151
3 Approved 152
4 Approved 152
5 Report Only 152
CERTIFICATE OF REPORTER 161
* * *
ACCURATE STENOTYPE REPORTERS, INC.
VOTE ON PROPOSED 2002 MEETING SCHEDULE 5
August 28, 2001
1 P R O C E E D I N G S
2 (The agenda items commenced at 9:39 a.m.)
3 GOVERNOR BUSH: The -- if you all could
4 look at the proposed schedule for the year
5 2002. And if you have any feedback on -- on
6 dates that might be in conflict, hoping there
7 aren't many, would you get back to Colleen.
8 We'll look up the Commissioner's --
9 insurance office has to do a lot more stuff.
10 We'll -- we'll vote on that next -- next
11 Cabinet meeting
12 (Discussion off the record.)
13 (The Vote on Proposed 2002 Meeting Schedule
14 Agenda was concluded.)
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DIVISION OF BOND FINANCE 6
August 28, 2001
1 GOVERNOR BUSH: Division of Bond Finance.
2 That was just a joke, if Tom is here.
3 He's not here.
4 MR. WATKINS: He's not, but I'll take it
5 back to him --
6 GOVERNOR BUSH: Okay.
7 MR. WATKINS: -- Governor.
8 GOVERNOR BUSH: Okay.
9 MR. WATKINS: Item Number 1 is approval of
10 the minutes of the August 14th meeting.
11 TREASURER GALLAGHER: Motion on minutes.
12 COMMISSIONER CRIST: Second.
13 GOVERNOR BUSH: Moved and seconded.
14 Without objection, it's approved.
15 MR. WATKINS: Item Number 2 is a resolution
16 authorizing the issuance and competitive sale
17 of up to 220 million dollars in PECO refunding
18 bonds.
19 TREASURER GALLAGHER: Motion.
20 GOVERNOR BUSH: Is there a second?
21 ATTORNEY GENERAL BUTTERWORTH: Second.
22 GOVERNOR BUSH: Moved and seconded.
23 Without objection, it's approved.
24 MR. WATKINS: Item 3 is adoption of a
25 resolution authorizing the issuance of up to
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August 28, 2001
1 35 million dollars in University System
2 Improvement Revenue Bonds for student activity
3 type projects for the State University System.
4 TREASURER GALLAGHER: Motion on 4.
5 COMMISSIONER CRIST: Second.
6 GOVERNOR BUSH: Moved and seconded.
7 Without objection, it's approved.
8 MR. WATKINS: Item Number 4 is a -- a
9 resolution authorizing the competitive sale of
10 up to 9 million dollars in parking facility
11 revenue bonds for a parking garage for
12 Florida Atlantic University.
13 TREASURER GALLAGHER: Motion on 4.
14 COMMISSIONER CRIST: Second.
15 GOVERNOR BUSH: Moved and seconded.
16 Without objection, it's approved.
17 MR. WATKINS: And Item Number 5 is a report
18 of award on the competitive sale of
19 seventeen million five hundred and
20 fifty-five thousand dollars of Sunshine Skyway
21 Refunding Bonds. The bonds were awarded to the
22 low bidder at a true interest cost of
23 3.71 percent, generating gross savings of about
24 3.9 million dollars, or 1.9 million on a
25 present value basis.
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DIVISION OF BOND FINANCE 8
August 28, 2001
1 TREASURER GALLAGHER: That's an amazing
2 rate. Amazing rate.
3 Motion.
4 COMMISSIONER CRIST: Second.
5 GOVERNOR BUSH: Moved and seconded.
6 Without objection, it's approved.
7 If the interest rates keep going down,
8 we're going to have to --
9 TREASURER GALLAGHER: Pay us.
10 GOVERNOR BUSH: -- yeah -- pay --
11 That's pretty amazing.
12 MR. WATKINS: Trying to stay ahead of the
13 game, Governor.
14 GOVERNOR BUSH: We appreciate you doing it.
15 (The Division of Bond Finance Agenda was
16 concluded.)
17 * * *
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DEPARTMENT OF LAW ENFORCEMENT 9
August 28, 2001
1 GOVERNOR BUSH: Florida Department of Law
2 Enforcement.
3 Commissioner Moore.
4 TREASURER GALLAGHER: Motion on the
5 minutes.
6 COMMISSIONER CRIST: Second.
7 GOVERNOR BUSH: Moved and seconded.
8 Without objection, it's approved.
9 Item 2.
10 MR. MOORE: Item 2 is our performance
11 report -- annual performance report for the
12 fiscal year just ended.
13 You've been provided a copy of this report,
14 and you'll -- you'll find no surprises in it,
15 because, as you know, we come before you each
16 quarter, and we give you a performance report
17 on what we're doing in the Department.
18 I -- we changed the look of this a bit to
19 more accurately tell the story of the good men
20 and women in the agency who, at least in my
21 objective opinion, do a tremendous job.
22 If you would allow me, I would like to
23 point out a couple of items, Governor, that I'm
24 particularly proud of, and I think that you
25 will be, too, in the agency.
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August 28, 2001
1 First of all, our laboratory system, which
2 you've heard me say before, is the -- is the
3 largest accredited lab in -- in the country,
4 continues to do an exceptional job.
5 As a matter of fact, last fiscal year --
6 and we present-- we completed over
7 71,000 cases, representing over 200,000 pieces
8 of evidence in criminal proceedings. That was
9 our largest, most productive year ever since --
10 since we have been in business.
11 I also will point out to you that while we
12 were producing that workload that were -- that
13 was coming in the door, our men and women also
14 reduced the backlog of our cases by 58 percent,
15 backlog of pending cases.
16 That represents real work, too. That's
17 3500 cases, victims and family members of
18 victims that are anxiously awaiting receipt of
19 the results.
20 Overall, we reduced our turnaround time, on
21 the average, from 70 days, down to below
22 59 days, and it continues to go down. And I'm
23 not satisfied with that, and neither are our
24 men and women. I think we'll do more -- I know
25 we'll do more to improve that.
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August 28, 2001
1 You know, rewarding performance clearly
2 pays dividends, Governor, and it does. It's
3 common sense, and it works.
4 And one of the reasons that we're seeing
5 this kind of production in our laboratory, with
6 quality remaining at the top of the list, is
7 the fact that we're able to reward our high
8 performers, and -- and give them something for
9 the good job that they do.
10 That's having just the kind of consequence
11 that I think that we all wanted to see. And
12 it's working not just in the forensic system in
13 our department, it's working across the entire
14 department.
15 In fact, in our information program arena,
16 we added more than 1 million dispositions,
17 final dispositions to our criminal history file
18 last year. That's a 38 percent increase. And
19 that's more dispositions than we've added in
20 the past two years combined.
21 And that's the result of increased
22 technology. It's also the increase -- the
23 result of a better working relationship with
24 our clerks of the court, and it's certainly a
25 result of, again, rewarding performance to
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August 28, 2001
1 those men and women who do that job day in and
2 day out.
3 We also handle 1.6 million public record
4 requests for criminal history record
5 information to our citizens and our -- our
6 public across the state.
7 And we did that in excess of a 95 percent
8 satisfaction rate of our client base. That's
9 something I'm equally as proud of.
10 In the investigative arena, let me mention
11 briefly that we launched, as you'll recall,
12 our -- our operation THUGS, Taking Hoodlums
13 Using Guns Seriously. We identified
14 321 violent felony fugitives who had used a gun
15 at least once in the commission of one of their
16 felonies over their criminal past.
17 And I'm proud to tell you that to date we
18 have apprehended or located 225 of that
19 original 321.
20 Now, between those 225, they have
21 3358 prior felony arrests, literally a virtual
22 crime -- crime wave.
23 Governor, I told you in a briefing the
24 other day, that I thought that represented more
25 than -- more than ten counties' worth of
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DEPARTMENT OF LAW ENFORCEMENT 13
August 28, 2001
1 arrests for the calendar year 2000. I was
2 wrong.
3 In the briefing earlier in the week, the
4 men and women tell me that we have 31 counties
5 in Florida who had fewer than 3,358 arrests
6 reported in calendar year 2000. And these
7 225 individuals that we've been targeting
8 exceeded the arrest effort of 31 of our
9 counties.
10 TREASURER GALLAGHER: Where -- where are
11 they now?
12 MR. MOORE: A lot of them are in jail
13 waiting trial; a lot of them got remanded right
14 back to custody; a couple of them are out of
15 the country, and we're awaiting and pursuing
16 extradition arrangements on them; some have
17 died.
18 But overall, we're where we need to be in
19 terms of holding these people accountable for
20 what -- what they have done to our law abiding
21 public.
22 Forty percent of our investigative resource
23 in our department goes to target major drug
24 organizations, major trafficking organizations,
25 Governor, and consistent with our -- our drug
ACCURATE STENOTYPE REPORTERS, INC.
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August 28, 2001
1 strategy for the state of Florida, and the goal
2 of reducing the supply of illegal drugs by
3 33 percent in our state by 2005. And we're
4 making progress on that front.
5 If you look at the 42 million dollars worth
6 of cocaine that we seized just this past year
7 in investigations that we conducted, that
8 represents two lines of cocaine for every
9 student, K through 12, Commissioner Crist, in
10 our -- in our univ-- in our -- in our education
11 system here in Florida.
12 Now, that's a lot of disaster avoided. And
13 that's just the cases that we work.
14 Also, we launched Operation Riverwalk which
15 I think, Governor, by any measure would be
16 deemed a success. It was -- it was going after
17 restoring the rule of law on the Miami River.
18 We've done that. We have -- we're
19 sustaining that effort. It's a true
20 partnership in more than just the words.
21 And it's having the kind of consequence
22 that we all anticipated.
23 And more important, we're able to take that
24 same concept up across both sides of our -- of
25 our great state now to the other ports that are
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 15
August 28, 2001
1 receiving the displacement effect of the
2 operation on the Miami River.
3 And during the course of all that, we have
4 been reaccredited by -- this year by the three
5 accrediting boards that accredit the entirety
6 of our operation.
7 And I think that speaks volumes about the
8 men and women, too, and it gives the public
9 some trust and confidence that we are, indeed,
10 doing what they expect us to do in a way that
11 gives them confidence in their State law
12 enforcement agency.
13 And, General Milligan, as we were doing
14 these things, I'm proud to report to you that
15 in 99.49 percent of the time, we paid our bills
16 within the 20-day statutory allotment. And
17 we're working hard to get there at 100 percent.
18 And, Governor, showing that a little bit of
19 common sense applied to a good government
20 program to make a difference, we exceeded our
21 minority purchasing goal by over 200 percent.
22 GOVERNOR BUSH: Yes, you did.
23 MR. MOORE: And we added value to -- to the
24 purchases that we made along the way.
25 Suffice it to say, I'm extremely proud
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August 28, 2001
1 of -- of the job the good men and women in our
2 Department do, and thank you for allowing me a
3 moment to share those -- their accomplishments
4 with you on Item 1.
5 And I would -- Item 2, rather, and I'd
6 recommend approval.
7 TREASURER GALLAGHER: Governor, if I may.
8 GOVERNOR BUSH: Yes.
9 TREASURER GALLAGHER: I --
10 Sorry. Is it on?
11 How about now?
12 Doesn't have a light just so -- you have to
13 know when it's on.
14 I -- I do want to move this item.
15 But I also -- I don't want to name an
16 amount right now, but I would like to -- I know
17 that within your agency, you were able to give
18 bonuses to some of your people that exceeded
19 and did -- did well.
20 And I think that we should also, as the
21 agency head, look at our Executive Director in
22 that same light.
23 And so at the next Cabinet meeting, I'd
24 like our Aides to discuss a bonus program for
25 our Executive Director here. Put that on the
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August 28, 2001
1 agenda.
2 And I move the item.
3 COMMISSIONER CRIST: Second.
4 GOVERNOR BUSH: There's a motion and a
5 second.
6 Without -- any more discussion?
7 I have one question.
8 MR. MOORE: Yes, sir.
9 GOVERNOR BUSH: I think it was in the
10 paper -- so many papers in this state, it's
11 hard to remember.
12 I think it was --
13 TREASURER GALLAGHER: Some are good.
14 GOVERNOR BUSH: There was a -- someone is
15 contesting the bill that we passed and signed
16 into law regarding the expansion of the DNA
17 database to include burglaries.
18 Is that --
19 MR. MOORE: Yes, sir.
20 GOVERNOR BUSH: -- did I imagine this, or
21 did I read it? I can't remember --
22 MR. MOORE: There are a few groups -- very
23 few, I might -- I might add, that have
24 expressed some reservations about that.
25 To my knowledge --
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August 28, 2001
1 GOVERNOR BUSH: Is there any --
2 MR. MOORE: -- there's no -- there's no
3 formal protestation going on on the decision
4 that -- that you supported, and the group
5 supported to add burglary.
6 We added 24,000 of those burglaries into
7 our database that now have over 120,000 entries
8 in it collectively.
9 We have had -- let's see if I can recall
10 the statistic correctly, because it's
11 important. It's again just getting the kind of
12 policy consequence that we -- we thought we
13 would get.
14 Fifty-two percent of the hits we've had
15 against our -- our DNA database since we've
16 added burglary have been tied to individuals
17 who had a burglary conviction in their past.
18 So it's getting the exact kind of
19 consequence that we hoped we would get.
20 So if -- if that's challenge -- and, again,
21 we only do it on conviction, which separates --
22 we only make additions based on convictions,
23 which separate us from some of the other
24 fledgling databases around the country.
25 I'm proud of that. And if we get a
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August 28, 2001
1 challenge, I'm confident, with -- with your
2 support, we can --
3 TREASURER GALLAGHER: Where's the standing
4 to make a challenge?
5 MR. MOORE: Beg your pardon?
6 TREASURER GALLAGHER: Where's the standing
7 to make a challenge?
8 GOVERNOR BUSH: The alleged burglar
9 probably.
10 MR. MOORE: Yeah. I'm not real sure --
11 again, I'm not -- I'm not aware of a formal
12 challenge that's been levied.
13 But I am aware of the --
14 TREASURER GALLAGHER: If it was --
15 MR. MOORE: -- continuing dialogue --
16 TREASURER GALLAGHER: -- just an arrest, I
17 could see they might have --
18 MR. MOORE: Yeah.
19 TREASURER GALLAGHER: -- have some kind of
20 challenge. With a conviction --
21 GOVERNOR BUSH: Yeah. I -- you're right.
22 I -- maybe it was an article that just talked
23 about criticism of the idea.
24 But I've been working too hard. I
25 apologize.
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August 28, 2001
1 MR. MOORE: Well, maybe they'll give us a
2 time -- a chance to draw a crowd if they want
3 to criticize us for that kind of production and
4 performance out of that good law.
5 Because it's -- it's definitely improving
6 public safety in our state. And it's keeping
7 people from being victimized, because we
8 identify those individuals early on, or
9 exonerate the ones that needs exonerating. And
10 that's exactly what we want to get.
11 GOVERNOR BUSH: That database is 25 percent
12 of the national database in terms of --
13 MR. MOORE: In terms of hits --
14 GOVERNOR BUSH: -- requirements -- in terms
15 of hits --
16 MR. MOORE: When you look --
17 GOVERNOR BUSH: -- and the inclusion of the
18 burglary category, which doubles our database,
19 are we going to -- are the other states going
20 to catch up with us, are we just --
21 MR. MOORE: They are. If fact, it's --
22 it's a rare exception that -- that a week goes
23 by that we don't have scientists from other
24 states visiting into our database, and looking,
25 not just at the DNA database, but our forensic
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August 28, 2001
1 operation statewide.
2 And I think that speaks volumes about the
3 support and leadership that -- that you have
4 given us as the head of our -- our agency.
5 TREASURER GALLAGHER: I know -- I know it's
6 a time consuming process to analyze the DNA and
7 get it in -- in a way to put in the database.
8 How long does it -- and, of course, the
9 bigger this database gets, the longer it takes
10 to do a search.
11 How long are we in the search process at
12 this point?
13 MR. MOORE: Not very long at all. In fact,
14 you -- you'd be real -- real proud of the fact
15 when you see the automation that these
16 scientists have put in play.
17 Not only in terms of getting -- doing the
18 search against the database, but in some ways,
19 more important, getting the -- the DNA
20 extracted from either the hair follicle or the
21 body fluid, or whatever it might be.
22 We have robotics that we're using --
23 Governor, you've been out and you've seen
24 it.
25 -- where robotics does a lot of that work
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August 28, 2001
1 for us 24 by 7 without the associated overhead,
2 et cetera.
3 We grew that database to where it is now,
4 and added 24,000 burglaries, with only two
5 additional FTE. And that's because of the --
6 the automation and the robotics that gets into
7 that.
8 Now, it takes on the average less than a
9 day to pass not only our database, but to pass
10 the other participating state databases,
11 through the clearinghouse of the FBI --
12 TREASURER GALLAGHER: On -- on DNA.
13 MR. MOORE: -- handles as well.
14 TREASURER GALLAGHER: Do you do it in
15 batches? In other words, you put together
16 every --
17 MR. MOORE: We do.
18 TREASURER GALLAGHER: -- once a day, so
19 many go into all the databases?
20 MR. MOORE: We do.
21 Not only from known suspect standards, but
22 we also -- we also search all the unknown
23 standards. We just hold them in abeyance over
24 here, much like we do fingerprints in our
25 automated system.
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1 You know there's a crime, you know that a
2 DN-- you know you have someone's DNA, you just
3 don't know who it belongs to.
4 So periodically, we'll search it, not only
5 against our database to see if something has
6 come in that would identify that person, but we
7 search it against the other participating
8 databases in the -- in the FBI's clearinghouse
9 program as well.
10 TREASURER GALLAGHER: How often do we get
11 requests for searches in ours?
12 MR. MOORE: Oh, dozens of times daily. And
13 from -- from not only local law enforcement.
14 We're wired in with -- with them in such a
15 way that they can -- they can telegraph their
16 request to us in an automated fashion.
17 But we -- the FBI would handle download
18 requests from other states into our database on
19 the average of once a week from out of state
20 requesters.
21 TREASURER GALLAGHER: And what's our goal?
22 You're 63 days getting this data in.
23 Where do we -- where do we fit in,
24 two days --
25 MR. MOORE: Well --
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August 28, 2001
1 TREASURER GALLAGHER: -- five days --
2 MR. MOORE: -- I would like to see us
3 somewhere under 30 days, Treasurer. That's an
4 expensive proposition though.
5 Right now, oftentimes we find ourselves in
6 a position where we're -- we're having to
7 work --
8 General, as you know, cases that have been
9 subpoenaed for trial, cases that are on the
10 trial docket -- and we find ourself having
11 to -- to really stretch it to be of
12 investigative assistance to some -- to an
13 investigator who has some information that's
14 contemporary, and he or she wants to know,
15 where do I go?
16 So our -- our ability to provide
17 investigative assistance right now is strained
18 by the case load.
19 But I'd like to see us get down somewhere
20 around 30 days or so. You'll see when we get
21 to the item on the budget --
22 TREASURER GALLAGHER: I see.
23 MR. MOORE: -- that is the central issue,
24 the -- the -- that our -- our flagship issue
25 for our budget request this time.
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August 28, 2001
1 TREASURER GALLAGHER: But wouldn't our
2 goal -- I mean, wouldn't it really want to be
3 faster than 30 days? That seems like a long
4 time to hold up an investigation, you know,
5 with -- when you have somewhere -- I mean, or
6 can you put those ahead of the 30 days, and
7 they sort of make them --
8 MR. MOORE: The 30 days would be an average
9 of everything that we do. We get about
10 7,000 DNA cases a year. And the 30 days would
11 be a goal for the average of all those cases,
12 start to finish.
13 Now, if -- if --
14 TREASURER GALLAGHER: Some aren't in a
15 hurry --
16 MR. MOORE: -- every day, there's examples
17 of -- of cases we move right to the front of
18 the list, and we -- we solve them, because
19 they're -- they're particularly heinous. And
20 we prioritize those. I'm talking on the
21 average, 30 days.
22 TREASURER GALLAGHER: Well, if you're doing
23 a burglary conviction, I mean, probably -- and
24 the fellow has some time, there's no real rush
25 in getting that done, I wouldn't think, unless
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August 28, 2001
1 you're trying to solve some other crimes.
2 MR. MOORE: Well, a homicide or -- or a --
3 or a sexual assault, a rape would be
4 prioritized above just your garden variety
5 burglary.
6 TREASURER GALLAGHER: But I'm thinking,
7 you're -- you're doing DNAs on convicted
8 burglaries, right?
9 MR. MOORE: To get it in the database --
10 TREASURER GALLAGHER: Correct.
11 MR. MOORE: -- right.
12 TREASURER GALLAGHER: So those wouldn't
13 have a lot of priority, considering they're
14 probably incarcerated.
15 MR. MOORE: It's easy to confuse how --
16 what we do to get in the database, versus what
17 we handle on the bench in terms of the
18 7,000 cases that get submitted as evidence.
19 That burglar -- the -- the submission that
20 would come in to add a convicted burglar to
21 that database, that -- that might be just the
22 only crime we know that he has committed.
23 So it's -- it's very important to get that
24 entered into the database, because they --
25 TREASURER GALLAGHER: Before --
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1 MR. MOORE: -- might be a serial rapist out
2 here, he might be it. He might be responsible
3 for the homicide that occurred.
4 So you get it in the database, there's --
5 there's a -- a seamless priority list there.
6 We want to turn everything in and out just as
7 fast as we can to get it in the database.
8 Now, those exhibits that come in from local
9 law enforcement, those 7,000 cases we'll work
10 evidence from crime scenes, then we would
11 prioritize a homicide above a burglary in that
12 kind of -- in that kind of arrangement.
13 GOVERNOR BUSH: Commissioner Bronson.
14 COMMISSIONER BRONSON: Thank you, Governor.
15 I -- I had the opportunity to sponsor the
16 bill on convicted burglars in the Senate.
17 One of the -- one of the issues that hit me
18 was the percentage of burglars that also commit
19 rape, and other serious sexual crimes in this
20 state. And it was a fairly high number.
21 I was invited last year to go to the
22 Department of Justice to -- to speak to a --
23 a -- an international committee that was
24 meeting on DNA and -- and other testing.
25 And Florida is so far above many states
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 28
August 28, 2001
1 because we didn't put in anyone arrested for
2 burglary, which would be our problem probably
3 with those who want to make a challenge, but
4 those who were convicted.
5 And that -- that has triggered a number of
6 issues that other states are trying to find out
7 how we pull that off in a state like Florida.
8 And I told them, we just used the facts and
9 figures that were given to us; and common sense
10 led us to pass the bill; and, of course, the
11 Governor signed it into law.
12 And I -- I think we're far above many
13 states in this country on -- on the DNA issue.
14 And we're going to help them solve a lot of
15 crimes --
16 MR. MOORE: Absolutely.
17 COMMISSIONER BRONSON: -- in other states
18 of people who have come to Florida.
19 GOVERNOR BUSH: I think we did -- we
20 weren't limited because we have a lot of
21 convicted burglars. Just arresting them
22 wouldn't have limited the -- the number, since
23 we -- you know, we have sadly a -- a long
24 tradition of lots of crime.
25 But it's -- it's being reduced at a rapid
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 29
August 28, 2001
1 pace. And I think this -- this one element of
2 the crime fighting strategy will probably
3 reduce crime on a sustained basis longer than
4 anything else that we're doing, because
5 habitual offenders are the problem we face in
6 this state.
7 And this will help in many ways to assure
8 that the new DNA technology that exists,
9 you know, it'll be a lot easier to apprehend
10 them and convict them.
11 COMMISSIONER BRONSON: Governor --
12 GOVERNOR BUSH: Yeah.
13 COMMISSIONER BRONSON: -- the other issue
14 that I think is going to be interesting, I --
15 I'm hoping to get back to find out the results,
16 is how many of the drug crime people that are
17 also heavily into burglary to help sponsor
18 their drug habits and -- and their buying
19 habits and so forth, how many of those are
20 going to get cleared up in the end, and how --
21 and how much -- how -- how much less the drug
22 buying capability is in Florida alone, just
23 because of stopping that type of criminal
24 activity.
25 MR. MOORE: That's an excellent point. We
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 30
August 28, 2001
1 know more anecdotally right now than
2 empirically, because it's hard to draw that
3 line.
4 But we know that 70 percent of the crime,
5 at least in the opinions of the law enforcement
6 leadership in the state, local and state level,
7 70 percent of our crime is either drug related
8 or drug driven.
9 So I think we will be able to -- to prove
10 that hypothesis, since there is that -- that
11 direct link between drugs and particularly the
12 property crimes of burglary.
13 I might, Governor, the -- then Senator, now
14 Commissioner Bronson, also helped pass a law
15 this past session that you signed that set as a
16 policy by the year 2005, Florida will have all
17 convicted felons in the DNA database.
18 We did burglary last time, we'll do robbery
19 this time. And then there's a -- there's a
20 phased-in scale right up till we get all
21 felonies by the year 2005.
22 And I think we will see exactly the kind of
23 consequence that you outlined earlier.
24 TREASURER GALLAGHER: When you say "do
25 them," are you talking about do them upon
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 31
August 28, 2001
1 conviction, or are you talking about going into
2 the correction system and doing them?
3 MR. MOORE: Doing them upon conviction,
4 when they get sentenced. And for anybody
5 that's released out of the -- out of the state
6 prison system, another provision of the bill,
7 if we don't already have their DNA on file, if
8 they're one of the qualifying felonies, as a
9 condition of their release, precedent to their
10 release, we collect that sample.
11 We changed the law also, as you recall,
12 Commissioner, to say, no longer are we limited
13 just to blood as the collection mechanism.
14 That's intrusive, it's expensive because you
15 invoke a lot of medical considerations.
16 And we went to a buccal -- a cheek swab
17 collection methodology now, had the statute
18 authorized us to use any manner that we would
19 approve.
20 And that technology has now advanced to the
21 point that it's going to save us a lot of
22 money, and add value to the collection process
23 overall at the same time.
24 TREASURER GALLAGHER: Is that easier than
25 using a blood sample?
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 32
August 28, 2001
1 MR. MOORE: A lot easier. And our robotics
2 is now being engineered to handle that.
3 TREASURER GALLAGHER: Is it easy -- as easy
4 to -- to analyze it?
5 MR. MOORE: The technology now makes it
6 all -- virtually the same in terms of the
7 costs -- actually a little cheaper on the
8 processing side, too. We had some up-front
9 costs changing our robotics around to handle
10 the -- extracting the DNA from the swab, but --
11 TREASURER GALLAGHER: Do you have the
12 robotics available in all your labs, or just
13 here?
14 MR. MOORE: We will after this -- hopefully
15 after you approve and help us get this budget
16 request funded for the coming year, we'll --
17 (Commissioner Bronson exited the room.)
18 MR. MOORE: -- have it in every one of
19 our -- of our four laboratories that -- full
20 service labs that does DNA.
21 TREASURER GALLAGHER: But the database for
22 all is up here --
23 MR. MOORE: The database has --
24 TREASURER GALLAGHER: -- they can all --
25 MR. MOORE: -- it right now.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 33
August 28, 2001
1 TREASURER GALLAGHER: -- get into it.
2 MR. MOORE: Right.
3 GOVERNOR BUSH: Any other questions?
4 There's a motion and a second.
5 Without objection, it's approved.
6 Thank you, Commissioner.
7 Item 3.
8 MR. MOORE: Governor, Item 3 is our
9 performance contract for the year. You have a
10 copy of that.
11 This -- it's hard to overstate the
12 importance of this. This is not just
13 government.
14 There's 64 outcomes in Florida law in the
15 appropriation bill that says we have to deliver
16 on -- for that 238 million dollar appropriation
17 every year.
18 This then takes those outcomes, and it
19 becomes the -- a -- a contract between myself
20 and you.
21 And then I take that home, and I have
22 performance contracts and work plans with every
23 one of our 1800 plus men and women. They know
24 exactly what their portion of our overall
25 charge is to deliver on.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 34
August 28, 2001
1 That, in large measure, helps us get the
2 kind of performance that I outlined to you
3 previously.
4 TREASURER GALLAGHER: Well, I just want to
5 say that, over the years, you have continually
6 made it more of an objective criteria, expanded
7 it, and put it in a -- in a very good way to
8 present it to us.
9 And it would be really good if we could use
10 this as an example for some of the other
11 agencies that report to us.
12 Our -- Revenue does a pretty good job, too,
13 but not exactly as -- as spelled out as this.
14 I think we might want to encourage the
15 other agencies that report to us to at least
16 take a look at some of the good ones, like
17 yours, and maybe make theirs more like it.
18 COMMISSIONER CRIST: Follow the lead.
19 GOVERNOR BUSH: There's a motion.
20 TREASURER GALLAGHER: Motion.
21 COMMISSIONER CRIST: Second.
22 GOVERNOR BUSH: Second.
23 Without objection, it's approved.
24 MR. MOORE: Governor, the final item is our
25 Legislative Budget Request for '02-'03.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 35
August 28, 2001
1 You'll see in the summary, you read ahead
2 there that this budget request tries to --
3 number one priority is to continue that
4 performance based compensation plan that,
5 Governor, you've recommended for us to help us
6 get funding for the last two years. And it's
7 producing the kind of results again that I
8 shared with you.
9 And our actual, number one A priority is
10 listed as two there, is to grow the capacity
11 for us to deal with the DNA workload, not only
12 the workload coming in from the contributors,
13 the 7,000 plus cases a year, but also to deal
14 with the expansion and the addition of robbery
15 to the database.
16 Now, that read-ahead there shows that
17 17 positions, and a little over 1.5,
18 1.6 million dollars for the first year.
19 Since --
20 (Commissioner Bronson entered the room.)
21 MR. MOORE: -- we have turned that in,
22 we've had some conversation with the Federal
23 authorities, and we've had -- we're encouraged
24 that there's a good potential for us to re-- to
25 obtain some of the nonrecurring costs
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 36
August 28, 2001
1 associated with this budget item from some
2 Federal appropriations that were particularly
3 targeted to DNA.
4 And with that in mind, and given what we
5 know is going to happen, not only as a result
6 of the conversations across the street this
7 morning, whether finalizing the postconviction
8 testing rule in the courts, but also the more
9 stuff we put in that database, the more
10 requests we're going to get from users to -- to
11 do -- to do analysis.
12 We're suggesting that we move the entirety
13 of that request up into the first year. So it
14 would be 26 FTE and scientists in the balance
15 of about 3 million dollars, versus the
16 seventeen one-and-a-half million that you see
17 there.
18 That's important, because hiring a DNA
19 scientist is not just like hiring somebody to
20 come to work in a general job. The competition
21 is tough, the training curve is long, and we've
22 had some good success getting people and
23 keeping them.
24 But knowing what's on the horizon, and
25 knowing that we all are committed to getting
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 37
August 28, 2001
1 that 111-day turnaround time down to something
2 more -- more comfortable, more meaningful, it
3 would be my suggestion that we move all those.
4 And my interest is to try to move all those
5 FTE on the first -- in the first year.
6 TREASURER GALLAGHER: If -- if we do that,
7 can the first year be less than the full cost
8 of all 26, because you're not going to be able
9 to put 26 on the first day. It'll take you
10 six months probably to have them all --
11 MR. MOORE: There's definitely a -- a lapse
12 consideration that we could do there, and some
13 equipment considerations --
14 TREASURER GALLAGHER: Or some --
15 MR. MOORE: -- that we could do.
16 TREASURER GALLAGHER: -- budget
17 considerations, we ought to at least do that
18 lapse and get you --
19 MR. MOORE: Right.
20 Getting the authority to move ahead on --
21 on saying when the market for that many is
22 critically important.
23 GOVERNOR BUSH: Is there a motion as
24 amended, or --
25 TREASURER GALLAGHER: I'll move as amended.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF LAW ENFORCEMENT 38
August 28, 2001
1 COMMISSIONER CRIST: Second.
2 COMMISSIONER BRONSON: Second.
3 GOVERNOR BUSH: I'm abstaining from my vote
4 on this item in order to make my own budget
5 recommendation.
6 Just read it exactly like it was given to
7 me.
8 MR. MOORE: All right, sir.
9 GOVERNOR BUSH: It's -- it's moved and
10 seconded, with one abstention.
11 It's approved.
12 MR. MOORE: The other items in the budget
13 there speak for themselves. And that's a
14 1.1 percent increase against our base operating
15 budget right now.
16 And the reason that can happen is because
17 of the performance rewards that we're able to
18 give our people.
19 Thank you.
20 GOVERNOR BUSH: Thank you, Commissioner.
21 MR. MOORE: Thank you, Governor.
22 (The Florida Department of Law Enforcement
23 Agenda was concluded.)
24 * * *
25
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION 39
August 28, 2001
1 GOVERNOR BUSH: We're going to take the
2 State Board of Education out of order.
3 We'll let --
4 MR. PIERSON: Good morning.
5 Have only one item today.
6 It's a resolution authorizing the issuance
7 and competitive sale of 220 million dollars,
8 State of Florida, PECO refunding bonds.
9 TREASURER GALLAGHER: Motion on 1.
10 COMMISSIONER CRIST: Second.
11 GOVERNOR BUSH: Moved and seconded.
12 Without objection, it's approved.
13 MR. PIERSON: Thank you.
14 (The State Board of Education Agenda was
15 concluded.)
16 * * *
17
18
19
20
21
22
23
24
25
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 40
August 28, 2001
1 GOVERNOR BUSH: Department of Revenue.
2 DR. ZINGALE: Request approval of the
3 minutes.
4 TREASURER GALLAGHER: Motion on minutes.
5 GOVERNOR BUSH: Is there a second?
6 ATTORNEY GENERAL BUTTERWORTH: Second.
7 GOVERNOR BUSH: Moved and seconded.
8 Without objection, it's approved.
9 DR. ZINGALE: The second item on the agenda
10 deals with a number of rule changes. The vast
11 majority of these rule changes come from
12 current laws, recent court opinions, and some
13 clarification issues.
14 And the biggest one we have I think deals
15 with this October 1st implementation of the
16 communication services tax at the State level.
17 A -- a tremendous improvement in tax
18 administration is going into effect in just a
19 few weeks.
20 The nature of that change is transforming a
21 tax base that had been shared between State
22 government and local government, causing quite
23 a confusing set of administrative problems for
24 both the taxpayer and the public that receives
25 monthly bills in terms of their utility taxes.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 41
August 28, 2001
1 The administration is the largest shift
2 from a shared local State base, to a State base
3 that I'm aware of in the history of the state
4 of Florida.
5 The new communication services tax as
6 administered by the Florida Department of
7 Revenue will be the second largest taxing
8 source in the state, 2 billion dollars.
9 What that will do to the taxpayer is
10 tremendously simplify what they see in their
11 monthly billing statement.
12 What it does for tax administration is take
13 over 400 local jurisdictions that were levying
14 their own rate structure on varying basis,
15 causing the industry tremendous problems.
16 I mean, potentially a large communication
17 service organization could be audited eight,
18 nine, ten, twelve times in a single year by
19 different government entities.
20 This administration will go into effect
21 October 1st. You'll start hearing it and
22 feeling about it not until November. The
23 nature of the tax is is that it's paid by the
24 citizens in October. It will be remitted to
25 the State for the first time between
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 42
August 28, 2001
1 November 1st and November 20th.
2 A major change in administration. The
3 Department has to do, not only remittance
4 processing, registration, but also distribution
5 back down to local governments to ensure
6 revenue neutrality.
7 It will not be without glitches and
8 problems as we go forward. It will be our
9 largest tax implemented in our current ERP
10 program, bringing our total up almost to
11 four-and-a-half billion dollars at that point
12 in time.
13 TREASURER GALLAGHER: ERP, is that your
14 electronic collection?
15 DR. ZINGALE: Yes. It is our big
16 SUNTAX system. The SAP Deloitte system --
17 GOVERNOR BUSH: What's ERP mean in English?
18 DR. ZINGALE: Enterprise-wide Resource
19 Management Program.
20 It is a big computer system that is
21 allowing us, over the next two years, to
22 integrate all of our taxes into a one-stop
23 system. This is a major step forward.
24 There are a number of rule changes. As
25 this new administration takes place, we will be
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 43
August 28, 2001
1 repealing the State taxes, the sales tax that
2 was on telecommunication, the gross receipt
3 utility tax, the sales tax surcharge.
4 And that is in -- in the rules you have in
5 front of us, to conform the State law to those
6 law changes.
7 The second one also does --
8 Yes, sir. Question?
9 TREASURER GALLAGHER: The -- are we
10 collecting this tax electronically, because
11 most of these are pretty large tax --
12 DR. ZINGALE: Absolutely.
13 EFT EDI is the primary method of collection
14 for those --
15 GOVERNOR BUSH: What does that mean --
16 DR. ZINGALE: Electronic funds transferred
17 directly from the utility -- the -- the --
18 TREASURER GALLAGHER: Quite a few years --
19 DR. ZINGALE: -- enterprise desk.
20 TREASURER GALLAGHER: -- ago, we required
21 all large taxpayers to electronically transfer
22 the money so that --
23 GOVERNOR BUSH: Just trying to help him --
24 TREASURER GALLAGHER: -- we would get a lot
25 of --
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 44
August 28, 2001
1 I know. You don't like those --
2 GOVERNOR BUSH: Well, I just want -- the
3 people in Florida to know how advanced we are
4 and efficient, and respectful we are to
5 taxpayers in the state. If they -- they hear
6 the --
7 TREASURER GALLAGHER: English.
8 GOVERNOR BUSH: -- governmentese, they have
9 no clue what we're doing.
10 DR. ZINGALE: Yes.
11 The administration of it does emphasize
12 dramatically the electronic funds transfer,
13 bank to our bank. The electronic data
14 interchange from the company to our computer on
15 a direct basis. It will --
16 TREASURER GALLAGHER: And that -- that
17 allows -- when we first did it, it allowed us
18 almost to collect a full month's revenue ahead
19 of time, and a tremendous amount of interest
20 increased to --
21 DR. ZINGALE: There will be a bottom line
22 savings also.
23 Most of those savings though are going to
24 occur at the local governments that will be
25 able to retract on their tax administration.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 45
August 28, 2001
1 We have a number of other ones, a few that
2 deal with recent law changes. Certainly in the
3 last few years, the reduction of the intangible
4 tax down from a billion two at its height, down
5 to about 373 million dollars, has caused a
6 number of repeals in the intangible tax
7 section.
8 We have rules here to put those in place.
9 And since there was a credit that shared
10 back and forth with the insurance premium tax,
11 when that tax was repealed, we have to conform
12 to corporate income tax side to adjust for
13 those intangible tax provisions. That's
14 another rule change.
15 A third one --
16 GOVERNOR BUSH: Yes.
17 DR. ZINGALE: -- we're highlighting --
18 Yes, sir. A question --
19 GOVERNOR BUSH: Commissioner Crist.
20 COMMISSIONER CRIST: I'm just curious.
21 When is the intangible tax gone?
22 DR. ZINGALE: Well, that would take an act
23 of the Legislature. There was 373 million
24 left. Let's pray that the stocks stay low, and
25 the economy improves.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 46
August 28, 2001
1 But that'll be a --
2 COMMISSIONER CRIST: Phase out.
3 TREASURER GALLAGHER: Well, each year the
4 Legislature does part of it.
5 DR. ZINGALE: It's a year-by-year decision.
6 TREASURER GALLAGHER: And a recommendation
7 from the Governor.
8 GOVERNOR BUSH: It's -- it's -- I think for
9 budgeting purposes, it is being phased out, but
10 it requires an annual --
11 DR. ZINGALE: Yeah. Our administration --
12 GOVERNOR BUSH: -- annual act.
13 DR. ZINGALE: -- of it is shrinking each
14 year.
15 The third one deals with a recent law
16 change that dealt with the Department's
17 compromise authority, raising that to $250,000,
18 and a provision to help taxpayers who had
19 relied on the Department of Revenue for a legal
20 opinion.
21 Received it in writing, and then we changed
22 our opinion allowing us to go in with that
23 taxpayer and compromise tax penalty and
24 interest accordingly.
25 A fourth one dealt with a recent District
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 47
August 28, 2001
1 Court of Appeals ruling that found that
2 municipalities that purchased machine and
3 equipment in the generation of electricity was
4 not subject to the sales tax. And we are
5 having to amend our rules to incorporate that
6 one.
7 The fifth one that I'd like to highlight
8 deals with --
9 Where did my note go?
10 Shoot.
11 Oh. Corporate income tax.
12 Recent changes in the State law conform our
13 corporate income tax to a recent late provision
14 in the Federal corporate income tax. Part of
15 that piggyback provision was corrected.
16 And it also dealt with some clarification
17 issues that deal with the apportionment formula
18 for insurance companies.
19 Those rules are accommodated here.
20 TREASURER GALLAGHER: How -- how are we
21 doing on that? Because that's been a big
22 problem for --
23 DR. ZINGALE: Well, there was some liti--
24 TREASURER GALLAGHER: -- as well as the
25 insurance companies.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 48
August 28, 2001
1 DR. ZINGALE: I'm pretty sure there was
2 some litigation, and there was a controversial
3 piece of that that we withdrew.
4 I'm pretty sure, according to staff, that
5 we got this worked out between the two
6 departments.
7 TREASURER GALLAGHER: I'm more concerned
8 about the local governments and wanting to buy
9 the 75 funds.
10 Are you familiar with that? That's -- Lisa
11 probably mentioned --
12 DR. ZINGALE: Yeah. That's not this
13 issue -- I'm not sure. That's not this issue.
14 But we're working with your staff on that
15 other one.
16 So I would like to request approval of the
17 minutes -- approval of the rules.
18 TREASURER GALLAGHER: Motion on 2.
19 COMMISSIONER CRIST: Second.
20 GOVERNOR BUSH: Moved and seconded.
21 Any other discussion?
22 Motion is approved without objection.
23 ATTORNEY GENERAL BUTTERWORTH: One
24 question.
25 GOVERNOR BUSH: Yes.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 49
August 28, 2001
1 ATTORNEY GENERAL BUTTERWORTH: Just in
2 order to -- to advise the Floridians,
3 Dr. Zingale, on -- on the Federal tax rebate,
4 because of the -- the Federal tax reduction
5 plan, what effect will the checks have on
6 delinquent child support?
7 Are -- are we intercepting those checks
8 to -- to make sure that the -- child support --
9 DR. ZINGALE: We -- we have a -- a standing
10 program, monthly, quarterly to exchange tapes
11 with the IRS.
12 During the refund season, the normal refund
13 season, that is our -- our biggest enforcement
14 tool we have. We do a data match. We identify
15 non-custodial parents who have obligations, and
16 then we intercept directly those refunds.
17 We have run one tape against that database,
18 and have seen a -- an increase. We have to run
19 another tape against that database.
20 But as part of the normal course of our
21 relationship with the Federal government,
22 that's an ongoing process.
23 TREASURER GALLAGHER: So -- so you're doing
24 that --
25 DR. ZINGALE: Yes, sir.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 50
August 28, 2001
1 TREASURER GALLAGHER: -- for this
2 particular refund.
3 DR. ZINGALE: For this particular rebate,
4 it's incorporated in. We did look at the data
5 after the first tape, and there does seem to be
6 a hit. We don't have the exact number right
7 now --
8 GOVERNOR BUSH: It's 2.1 billion dollar
9 rebates, I guarantee you you're going to have a
10 hit.
11 DR. ZINGALE: I know. We've got to --
12 ATTORNEY GENERAL BUTTERWORTH: The other
13 thing about -- about 20 percent of the checks
14 that are actually going out are being
15 intercepted by the State.
16 Can you keep us apprised of what
17 percentages are --
18 DR. ZINGALE: Okay. We'll go into those --
19 we'll run them and give you some data on that.
20 Thank you.
21 GOVERNOR BUSH: There's one -- how many --
22 how many taxpayers are getting over the state
23 it's --
24 TREASURER GALLAGHER: In Florida --
25 GOVERNOR BUSH: -- several billion
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE 51
August 28, 2001
1 taxpayers are getting several billion dollars
2 throughout --
3 TREASURER GALLAGHER: Just in Florida?
4 GOVERNOR BUSH: So -- I mean, I -- I hadn't
5 thought about that. But there must be an
6 incredible number of delinquent child support
7 payments that can get to the kids now.
8 (The Department of Revenue Agenda was
9 concluded.)
10 * * *
11
12
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15
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18
19
20
21
22
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24
25
ACCURATE STENOTYPE REPORTERS, INC.
TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 52
August 28, 2001
1 GOVERNOR BUSH: Board of Trustees.
2 MR. STRUHS: Good morning.
3 The first item, it simply clarifies a
4 problem with a billboard. There was a mistake
5 when that property was first acquired.
6 It's an acre for acre, value for value
7 exchange --
8 GOVERNOR BUSH: David, can you put the
9 microphone up a little bit?
10 MR. STRUHS: Better?
11 GOVERNOR BUSH: Yeah.
12 MR. STRUHS: Thank you.
13 We're recommending approval of Item 1.
14 TREASURER GALLAGHER: Motion on 1.
15 ATTORNEY GENERAL BUTTERWORTH: Second.
16 GOVERNOR BUSH: Moved and seconded.
17 Without objection, it's approved.
18 MR. STRUHS: Item 2, there's two things:
19 It clarifies title, and it clarifies deed
20 restrictions. This is property in Miami.
21 It makes clear that there will be no
22 dredging but for navigation purposes, but it
23 makes clear that pilings and residential docks
24 are okay on this property, which we believe was
25 part of the original intention of the --
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1 ATTORNEY GENERAL BUTTERWORTH: Motion --
2 MR. STRUHS: -- of the lease.
3 TREASURER GALLAGHER: Second.
4 COMMISSIONER CRIST: Second.
5 GOVERNOR BUSH: Moved and seconded.
6 Without objection, it's approved.
7 MR. STRUHS: Item 3 is acquisition of a
8 parcel in the Lake Wales Ridge Ecosystem. It's
9 a very interesting parcel in the number of
10 endangered plants and animals that are on this
11 rare scrub habitat, including what we hope to
12 be a seed bank for the rare and endangered
13 pink lupine.
14 GOVERNOR BUSH: What? I'm sorry.
15 I didn't hear. What'd you say?
16 MR. STRUHS: We --
17 GOVERNOR BUSH: Endangered --
18 MR. STRUHS: Pink lupine.
19 TREASURER GALLAGHER: Really want to save
20 that.
21 MR. STRUHS: Not to be confused with the
22 blue lupine.
23 But anyway, this is -- this is the type of
24 project that the Lake Wales Ridge Ecosystem
25 represents, which is preservation of the
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1 remnants of some very unusual plants and
2 animals.
3 TREASURER GALLAGHER: Is that a plant or an
4 animal?
5 MR. STRUHS: That is -- that is a plant.
6 TREASURER GALLAGHER: That's good to know.
7 When we're saving it, I'd like to know whether
8 it's walking around or coming out of the dirt.
9 ATTORNEY GENERAL BUTTERWORTH: The blue one
10 is the animal, the pink one is the --
11 TREASURER GALLAGHER: Got you.
12 MR. STRUHS: This -- this acquisition would
13 be 93 percent of the approved value.
14 TREASURER GALLAGHER: Motion on 3.
15 COMMISSIONER CRIST: Second.
16 GOVERNOR BUSH: Moved and seconded.
17 Without objection, it's approved.
18 MR. STRUHS: Item 4, you know we've been
19 working on this for some time now. This is a
20 proposal to acquire the Kirby Mine.
21 And, indeed, this is the last active
22 lime rock mining still going on over the
23 Ichetucknee Trace property. And you'll recall,
24 the Ichetucknee Trace is that underground river
25 that feeds Ichetucknee Springs.
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1 In the event that this item is approved,
2 five days after your approval, all blasting
3 ends in that quarry.
4 One of the reasons I think that's relevant
5 is because, indeed, this is such an old permit
6 for this quarry, that there are no limitations
7 in terms of how deep they are allowed to go.
8 And because of that, it would eventually
9 pose some risk to the subterranean river that
10 feeds the spring.
11 The other good news I wanted to share, just
12 based -- to give you a little bit of context on
13 this, is while we've been looking to negotiate
14 and acquire this last mining operation of the
15 trace, we've been working with Columbia County.
16 And Columbia County has redone their land
17 use planning to make sure that there are no new
18 mines sited over the Ichetucknee Trace. So
19 it's -- it's --
20 GOVERNOR BUSH: Thank you.
21 MR. STRUHS: -- it's part of a
22 comprehensive plan that puts the land
23 management at the local level, and the State
24 efforts in concert.
25 And based on the last meeting two weeks
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1 ago, I thought you'd like to know what.
2 TREASURER GALLAGHER: I figured we'd go
3 ahead and permit some more, and we'd buy them,
4 and permit some more, then --
5 MR. STRUHS: This -- this ensures that does
6 not happen.
7 TREASURER GALLAGHER: Good.
8 MR. STRUHS: Having said that, there are a
9 couple of threats that do remain to the Trace.
10 One of them is well known, is called Rose Sink.
11 There's another piece of property off of
12 I-75 that's a potential threat. And then
13 there's Three Water Creek. The landowners in
14 those cases have thus far been unwilling to
15 work with the State as willing sellers.
16 One of the remarkable things we were able
17 to accomplish with this agenda item is working
18 with the Kirby family. And they have a -- a
19 binding interest in protecting the
20 Ichetucknee Springs -- is they've agreed as
21 part of this to make a 1.25 million dollar
22 donation from the proceeds of the sale to the
23 Trust for Public Lands, the -- the expectation
24 there being that the Trust for Public Lands is
25 in a better position to negotiate with these
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1 landowners than the State is.
2 So we're -- we're pleased about that.
3 Finally the last point on this is that this
4 is a purchase price that is 91 percent of the
5 appraised value.
6 We recommend --
7 TREASURER GALLAGHER: Now --
8 GOVERNOR BUSH: Commissioner Bronson.
9 COMMISSIONER BRONSON: Thank you, Governor.
10 I -- I have a question on this -- on this
11 donation. It was my understanding that part of
12 the agreement on the acquisition of this
13 property was to have the owners, the Kirby
14 family, to make this donation of 1.2 million to
15 the Trust for Public Land.
16 Now, of course, I think the Trust for
17 Public Land is a good -- good group.
18 MR. STRUHS: Uh-hum.
19 COMMISSIONER BRONSON: But as part of an
20 agreement to do that, I -- I'm having a
21 little -- I tried to figure out where we're
22 going here because if we do this on this
23 property, we come back next time, and -- and
24 Nature Conservancy's going to come in and say,
25 hey, on this deal here, get them to donate so
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1 much to Nature Conservancy, or some other group
2 or organization.
3 Now you've got third parties in here in the
4 middle of a -- of a transaction with the State,
5 which concerns me a little bit.
6 And the fact that whether or not -- was --
7 was the property going to be bought anyway
8 before this -- this addition of 1.2 million,
9 the Trust for Public Land, or was it, we'll buy
10 it if you do this; if you don't do this, we
11 won't buy your property.
12 I mean, was the land worth buying to start
13 with for the purposes of protecting the waters
14 and the -- and the springs, which I'm a big
15 proponent of protecting our --
16 MR. STRUHS: Yes, sir.
17 COMMISSIONER BRONSON: -- magnitude
18 warm springs in this state --
19 MR. STRUHS: Right.
20 COMMISSIONER BRONSON: -- because I think
21 they're going to be very important to us down
22 the road.
23 I'm trying to figure out if we're -- if
24 we're creating a potential problem for us on --
25 on land acquisitions from here on out with a
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1 third party in the middle of all this.
2 MR. STRUHS: Right.
3 I -- I -- I don't believe we are. Clearly
4 this was a negotiated agreement, as they all
5 are.
6 What made this one unusual was a
7 recognition by the Kirby family that our
8 long-term objective wasn't simply buying their
9 rights and that -- that quarry that they had,
10 but, indeed, protecting the entire Trace, which
11 feeds the Ichetucknee Spring.
12 And recognizing that, and -- and being a
13 family that's been in that area for a long
14 time, they were well aware of the fact that
15 while their involvement with the State in this
16 acquisition was a large step forward, that
17 there was more work to be done.
18 And they also recognized that the
19 opportunity for the State to -- to finish the
20 job with these three other parcels was -- was
21 limited, and that a third party would likely
22 make it work better.
23 So they were more than willing to make this
24 part of the arrangement, which I think serves
25 everybody's interests well.
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1 I don't think it's likely that this will
2 serve as a precedent wherein future proceeds
3 from sales would be expected to be contributed
4 to some third party.
5 I think this is the exception rather than
6 the rule. But it's a good exception.
7 GOVERNOR BUSH: General --
8 Go ahead.
9 COMMISSIONER BRONSON: Well, to follow up,
10 one of my concerns, David, was the fact that if
11 we do this in this manner, if Trust for
12 Public Lands buys a piece of property for
13 1.25 million dollars, is that property that's
14 normally in line to be bought, based on
15 Florida Forever guidelines; or is this going to
16 be property that can be bought with -- with --
17 put into the name of the Trustees of the State
18 without us having to consider that property.
19 In other words, it'll just be bought and we
20 don't -- we don't consider --
21 MR. STRUHS: Yes, sir.
22 COMMISSIONER BRONSON: -- that property,
23 even though it'll be transferred into the --
24 MR. STRUHS: Right.
25 COMMISSIONER BRONSON: -- Trust for
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1 Public -- I mean, to the State?
2 MR. STRUHS: No. These -- these parcels
3 are within the defined Ichetucknee Trace
4 project. So they have gone through the normal
5 ranking process, and they are part of the --
6 the State's long-term strategy for this area.
7 So it's not like an add-on that goes
8 outside to what our original intentions were
9 or -- or have been.
10 It's simply a recognition of the fact that
11 there are a few remaining parcels left that the
12 State has thus far been unable to access.
13 And as you've seen, previous experience is
14 something that third parties have better access
15 than -- than we do. And we expect that's
16 what's going to happen in -- in this instance.
17 GOVERNOR BUSH: General Butterworth.
18 ATTORNEY GENERAL BUTTERWORTH: I can
19 understand Commissioner Bronson's concern here.
20 It's one of the first times we've had something
21 like this.
22 But I want to -- I wish to commend the
23 Department for the way you negotiated this.
24 And also I want to publicly commend the
25 Kirby family for -- for agreeing to a price
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1 that really -- they probably would have
2 garnered more -- more would -- they probably
3 didn't even have to offer the donation to the
4 State.
5 So I -- I think the Kirby family is doing a
6 tremendous good service here for the people of
7 the State of Florida, especially on -- on the
8 Ichetucknee area.
9 So I -- I just commend you and the family.
10 MR. STRUHS: Well, thank you.
11 Mr. Gardner is here -- Mr. Tom Gardner is
12 here representing the -- the sellers --
13 GOVERNOR BUSH: Secretary Harris.
14 MR. STRUHS: -- if you would like to hear
15 from him.
16 SECRETARY HARRIS: Secretary Struhs, I'd
17 like to commend you as well on -- on
18 Commissioner -- on the Attorney General's
19 comments.
20 So many times we always come to you and
21 we're frustrated with the terms. And I think
22 this is -- this is a creative approach.
23 I have two questions.
24 First, am I correct -- I think that the
25 sellers have been very well represented by
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1 Mr. Gardner and Mr. Richmond, so wise counsel.
2 But isn't it true that they came to you
3 with the offer to make this donation? I mean,
4 it's not something that you constructed.
5 So there may be -- while there may be a
6 precedent, it wasn't your saying they need to
7 give the money back, and to whom they needed to
8 give it to; is that correct?
9 MR. STRUHS: That -- that is correct.
10 SECRETARY HARRIS: And the second question
11 is -- following up on Commissioner Bronson's
12 question.
13 About the one mill-- the one million
14 two hundred and fifty thousand, the properties
15 that we're purchasing with the
16 Ichetucknee Trace are within the criteria.
17 I think his question went to the point, if
18 this additional money that goes to the Trust
19 for Public Lands, that 1.25 million, will it be
20 spent in the future, not -- not -- in the
21 future, on future properties, will those
22 properties fall within the same criteria, or
23 will they be able to go outside the criteria in
24 terms of the prioritization of properties
25 bought.
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1 Will that 1.25 million be spent following
2 the same criteria -- following what the State
3 has -- has mandated?
4 MR. STRUHS: Can I check with our counsel
5 on that?
6 GOVERNOR BUSH: Ask him about whether we're
7 paying for overhead, too.
8 MR. STRUHS: Let me -- let me check on
9 that.
10 TREASURER GALLAGHER: I've got just one
11 thing that -- while you get that answer.
12 GOVERNOR BUSH: Commissioner Gallagher.
13 TREASURER GALLAGHER: This may be impacted.
14 But when someone tells you they'll take
15 90 percent of appraised value, why are we
16 paying them 91 percent?
17 GOVERNOR BUSH: That'll do it probably.
18 TREASURER GALLAGHER: When they come up
19 with an approved value, which ended up being
20 the top one, too, actually.
21 GOVERNOR BUSH: Eva.
22 How the heck are you?
23 MS. ARMSTRONG: I'm great.
24 How are you, Governor?
25 GOVERNOR BUSH: Do you have the answer to
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1 that question?
2 MS. ARMSTRONG: Be glad to. I think there
3 were two parts to it.
4 One, the -- the agreement provides that
5 they have to -- they have to acquire within the
6 Ichetucknee Trace project only. And when they
7 have exhausted all possibility, then with our
8 agreement, they could go to other projects
9 outside.
10 But the focus is, Ichetucknee Trace
11 projects as they are currently designed.
12 SECRETARY HARRIS: At 1.25.
13 MS. ARMSTRONG: Correct.
14 Additionally, the only costs they can take
15 are their normal acquisition costs. It doesn't
16 pay their overhead. Normal acquisition costs.
17 GOVERNOR BUSH: Thank you.
18 MS. ARMSTRONG: Uh-hum.
19 MR. STRUHS: That's two --
20 GOVERNOR BUSH: And
21 Commissioner Gallagher's --
22 MR. STRUHS: -- for --
23 GOVERNOR BUSH: -- question --
24 MS. ARMSTRONG: Oh, I didn't hear
25 Gallagher. I'm sorry -- Mr. Gallagher.
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1 MR. STRUHS: The question was: Why did we
2 do 91 percent --
3 TREASURER GALLAGHER: Gallagher's question
4 is: We're paying $10,250 instead of --
5 I'm sorry -- ten million two hundred and
6 fifty thousand dollars, instead of ten million
7 one hundred and two thousand five hundred.
8 They agreed to sell for 90 percent, and
9 we're buying for 91 was my question.
10 MR. GARDNER: May -- may I --
11 GOVERNOR BUSH: Mr. Gardner --
12 MS. ARMSTRONG: Yeah. Because -- because
13 somehow I -- I missed the question.
14 TREASURER GALLAGHER: It's commission --
15 MS. ARMSTRONG: I'm sorry.
16 TREASURER GALLAGHER: -- probably, and I
17 just missed the --
18 GOVERNOR BUSH: That'll leave a mark.
19 MR. GARDNER: The -- back in April --
20 I think it was April the 30th, the Kirbys made
21 an offer based on percentage of appraised
22 value. And they provided that offer to the
23 Department, and each member of the Board --
24 I'm sorry. I'm Tom Gardner. And I'm
25 working with Ron Richmond, Ralph Aban, and
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1 we're representing the Kirby family.
2 And the two sons are present: Garland, and
3 his wife, Sharon; and Fletcher, and his wife,
4 Terry, are here.
5 And -- but -- and they're very excited
6 about the contract, and hope to have this
7 finalized today.
8 But going back to -- to April 30th. There
9 was an offer made to the Department, and we
10 shared with the members of the Board that we
11 would sell for 90 percent of appraised value,
12 no donation.
13 We had already been in negotiations with
14 the Department for a number of months. We kept
15 going back and forth. We had absolutely no
16 idea what appraised value was.
17 There was a period of about 30 days where
18 there was no -- I think there was a letter from
19 the Secretary saying y'all really need to get
20 back with the Department and negotiate this
21 thing in good faith.
22 We at that point -- and there were several
23 people that advised to stop dealing in
24 percentages, start dealing in dollars.
25 So we estimated appraised value, and we
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1 estimated it I think at ten million
2 seven hundred and fifty-seven thousand dollars.
3 And based on that estimate, we made a -- I
4 won't say a final -- but we made then a
5 counteroffer. There hadn't been any discussion
6 in probably over a month at that point in time.
7 And we made a proposal on the donation.
8 And Mr. Laurie Kirby had advised me at that
9 point that he was very interested in selling to
10 the State, and he would trust Ron Richmond and
11 myself to go in and sit down with
12 representatives of the Department, and to work
13 out a final deal.
14 So we started really from somewhere up
15 around eleven million seven-fifty, coming down.
16 We didn't know what the appraised value
17 was. We finally reached an agreement at
18 ten million two fifty, with a one million
19 two hundred and fifty thousand dollar donation.
20 And that was after some back and forth.
21 I don't even think the people that we were
22 talking with at that point knew exactly what
23 the percentages would come out to. But that
24 was the way it worked out.
25 And I called Mr. Kirby, and I said, this is
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1 what we have -- actually we were a few dollars
2 off. And he said, well, if you can round -- if
3 you can get them to round it to ten million
4 two fifty -- and I think it was less than a
5 thousand dollars that that rounding affected --
6 then they've got a deal.
7 And I came back and I said, if you can
8 round it, you've got a deal.
9 And they did the contract, we took it over.
10 Mr. Kirby reviewed the contract with his sons
11 and their wives, and all were in agreement,
12 signed the contract.
13 So I would have to say that today --
14 Mr. Laurie Kirby and his wife could not be with
15 us because of their health, but they are
16 anxiously awaiting the approval of this item,
17 because Mr. Kirby for years has wanted this
18 land to come to the State.
19 And I hope that's --
20 GOVERNOR BUSH: Thank you --
21 MR. GARDNER: Any other questions?
22 GOVERNOR BUSH: Commissioner Bronson.
23 COMMISSIONER BRONSON: I -- I just --
24 Governor, thank you very much.
25 And I -- to the Kirby family, I thank them
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1 for working with the State on this -- on this
2 issue. I think this is a -- this is a good
3 move for the State, I think it's a good move by
4 the family.
5 What I was concerned about was -- and,
6 of course, I understand if you make a
7 1.25 million dollar donation in the process of
8 this, there's some tax implication that's very
9 positive to the Kirby family as well, and I
10 certainly understand that.
11 I just wanted to make sure that we weren't
12 going off on some ground here that was going to
13 cause us some problem down the road where you
14 were going to have third parties coming in,
15 saying, okay, the next deal, see if you can get
16 this group to give so much money to whatever
17 organization it may be, and then they go buy
18 land and then come back to the State with it
19 later on.
20 I -- I just felt like we might be opening
21 the doors up for some problems here. And I
22 just wanted to get all that clear. I'm glad
23 you came up to -- to tell us.
24 I think the property buy is an excellent
25 buy for the State. That was never a problem.
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1 I just wanted to make sure we're not going
2 off into some ground that we don't need to be
3 going into.
4 So thank you very much.
5 MR. STRUHS: And -- and --
6 GOVERNOR BUSH: Commissioner Gallagher.
7 TREASURER GALLAGHER: I -- I just want to
8 thank you for the explanation. I appreciate
9 that, Tom.
10 And I'll move the item.
11 COMMISSIONER BRONSON: Second.
12 GOVERNOR BUSH: Moved and seconded.
13 Any other discussion?
14 Without objection, it's approved.
15 Thank y'all very much for coming.
16 Secretary Struhs, I urge you to use that
17 strategy very cautiously, and not on a regular
18 basis.
19 MR. STRUHS: I -- I -- I couldn't agree
20 more.
21 GOVERNOR BUSH: It may get the IRS in here.
22 MR. STRUHS: Item Number 5 is --
23 GOVERNOR BUSH: And since we don't have an
24 income tax, we don't have to worry about it.
25 MR. STRUHS: Item 5 is authorization to
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1 acquire an undivided 50 percent interest from
2 the St. Johns River Water Management District
3 in the Rayonier Woodlands area, the
4 Cummer Trust property.
5 You may recall that when the Board of
6 Trustees approved the initial acquisition of
7 this real estate, that you advised the
8 Water Management District at that time that
9 perhaps they should have also purchased some of
10 the timber, the timber rights.
11 And, indeed, based on that counsel, the
12 Water Management District has pursued that, per
13 your instructions, and have come back with
14 this --
15 GOVERNOR BUSH: Did we --
16 MR. STRUHS: -- proposal.
17 GOVERNOR BUSH: -- when you say that we --
18 the Cabinet said we should -- we instructed you
19 to go buy the --
20 MR. STRUHS: Well, you -- you -- you
21 approved the item to buy the -- the underlying
22 fee simple interest in the land. But the deal
23 that was presented to you didn't acquire the
24 timber interests --
25 GOVERNOR BUSH: Did we instruct you to go
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1 buy the timber?
2 MR. STRUHS: You urged us to go back and --
3 and -- and see if it wouldn't make sense to --
4 GOVERNOR BUSH: Did we --
5 MR. STRUHS: -- purchase some of the timber
6 interests.
7 And, indeed, the Water Management District
8 took that advice to heart, and have come back
9 to us now with -- with this proposal.
10 The result being that you end up with
11 better protection of the water resources,
12 specifically the well fields -- the land
13 adjacent to the well fields in St. Augustine.
14 It leads to the immediate stop of
15 harvesting in limited areas, wetland areas. It
16 will prevent the conversion of these hardwood
17 forests into pine plantation over the course of
18 the next several years.
19 And it also provides important public
20 access immediately to a portion of this
21 property.
22 Mr. Robert Christianson is here from the
23 Water Management District in the event that you
24 |
Cabinet
Affairs
