Representing:
9
10
STATE
BOARD OF ADMINISTRATION
11 DIVISION OF BOND FINANCE
DEPARTMENT OF HIGHWAY SAFETY
12 DEPARTMENT OF REVENUE
STATE BOARD OF EDUCATION
13 STATE BOARD OF TRUSTEES
14 The
above agencies came to be heard before
THE FLORIDA CABINET, Honorable Governor Bush presiding,
15 at the City Commission Chambers, 3500 Pan American Drive,
Miami, Florida, on Tuesday, June 25, 2002, commencing at
16 approximately 10:00 a.m.
17
18 Reported
by:
19 JANET
MARIE WILLITZ
20 Registered
Professional Reporter
Registered Merit Reporter
21
22
23
24
25
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1
APPEARANCES:
2
Representing the Florida Cabinet:
3
JEB BUSH
4 Governor
5 ROBERT
F. MILLIGAN
Comptroller
6
CHARLES H. BRONSON
7 Commissioner of Agriculture
8 BOB
BUTTERWORTH
Attorney General
9
CHARLIE CRIST
10 Commissioner of Education
11 TOM
GALLAGHER
Insurance Commissioner
12
13 *
* *
14
15
16
17
18
19
20
21
22
23
24
25
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1 I N D E X
2
ITEM ACTION PAGE
3 STATE BOARD OF ADMINISTRATION
(Presented by Tom Herndon)
4
ITEM ACTION PAGE
5 1 Approved 7
2 Remanded 15
6 3 Remanded 15
4 Approved 15
7 5 Approved 22
6 Remanded 26
8 7 Approved 26
8 Approved 28
9
DIVISION OF BOND FINANCE
10 (Presented by Ben Watkins)
11 ITEM
ACTION PAGE
1 Approved 30
12 2 Approved 31
13 DEPARTMENT
OF HIGHWAY SAFETY
(Presented by Fred Dickinson)
14
ITEM ACTION PAGE
15 1 Approved 32
2 (Presented by Lt. Gov. Brogan)Approved 42
16
DEPARTMENT OF REVENUE
17 (Presented by Jim Zingale)
18 ITEM
ACTION PAGE
1 Approved 48
19 2 Approved 49
20
21
22
23
24
25
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1
STATE BOARD OF EDUCATION
2 (Presented by Wayne Pierson)
3 ITEM
ACTION PAGE
1 Approved 52
4 2 Approved 52
3 Approved 53
5 4 Approved 55
5 Approved 55
6
STATE BOARD OF TRUSTEES
7 (Presented by David Struhs)
8 ITEM
ACTION PAGE
1 Approved 59
9 2 Approved 65
3 Approved 66
10 4 Approved 66
5 Approved 68
11 6 Approved 68
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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1 P R O C E E D I N G S
2 (The
agenda items commenced at approximately
3 10:00
a.m.)
4 GOVERNOR
BUSH: Commissioner Gallagher, this is
5 your
item that we discussed last week, the executive
6 directors'
salaries.
7 TREASURER
GALLAGHER: Yes, Governor. I'd like to
8 offer
a motion for bonuses to be paid in the amount of
9 $5,000
each to Fred Dickinson, Tim Moore, Jim Zingale and
10 Ben
Watkins.
11 COMMISSIONER
CRIST: I second that.
12 GOVERNOR
BUSH: There's a motion and second.
13 Discussion?
Say it again now; you had Moore, Dickinson,
14 Zingale
and Watkins?
15 TREASURER
GALLAGHER: Dickinson, Moore, Zingale,
16 Watkins.
17 GOVERNOR
BUSH: And the Veterans Affairs director?
18 TREASURER
GALLAGHER: I didn't have or involve or
19 include
that in that, Governor.
20 COMPTROLLER
MILLIGAN: Governor, if I may jump in
21 for
a second, I basically have no problem with what is
22 proposed.
I do think that you have to take into
23 consideration
the challenges that the organization has
24 faced
over the past year and how they have coped with
25 them,
and I think certainly, Veterans Affairs has faced
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1 some significant challenges over the past year and
2 deserves
some recognition, although I certainly would not
3 put
it in the same category as Tim Moore, and for that
4 matter,
Fred Dickinson and the others. Both sides of the
5 organization
have challenges, and I would suggest an
6 amendment.
I would offer an amendment to recognize the
7 head
of Veterans Affairs with a bonus of around $2,000.
8 TREASURER
GALLAGHER: I'll second that.
9 GOVERNOR
BUSH: You will?
10 TREASURER
GALLAGHER: Yes.
11 GOVERNOR
BUSH: There is a motion as amended and
12 seconded.
Any other discussion? Without objection the
13 bonuses
are approved. We also have the appointment of
14 Tony
Crapp, Senior, to the Downtown Development Authority
15 of
Miami. Is there a motion?
16 TREASURER
GALLAGHER: Motion.
17 COMMISSIONER
BRONSON: Seconded.
18 GOVERNOR
BUSH: Any discussion? Moved and seconded
19 without
objection. The item is approved. The next
20 Cabinet
meeting will be held on Tuesday, August 13th at
21 Tallahassee.
22 GOVERNOR
BUSH: The State Board of Administration.
23 We're
going to take this out of order since Mr. Herndon
24 has
a speech to give in Naples, I think, is that right,
25 sir?
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 TREASURER
GALLAGHER: Motion of the minutes.
2 COMMISSIONER
BRONSON: Seconded.
3 GOVERNOR
BUSH: Moved and seconded. Without
4 objection,
it's approved.
5 COMMISSIONER
CRIST: Governor --
6 GOVERNOR
BUSH: Yes?
7 COMMISSIONER
CRIST: -- if I might, Mr. Herndon,
8 who's
presenting to us now, just so the audience knows,
9 already
got a bonus, and we do like and appreciate his
10 hard
work. He's from Saint Pete, and I'm covering his
11 back.
I just wanted you to know that. He's a good man.
12 COMPTROLLER
MILLIGAN: But you know, he's retiring
13 and
he's history.
14 COMMISSIONER
BRONSON: That's right.
15 COMPTROLLER
MILLIGAN: He's a lame duck. He's
16 toast.
17 It
might be useful, Governor, just to
18 mention
that the State Board of Administration
19 Trustees
are only three members that are sitting up
20 here.
21 GOVERNOR
BUSH: That's right. That's why we
22 normally
do that. I apologize.
23 Before
you begin, perhaps you could give a
24 little
-- This is a quiet little -- Well, this year
25 it
wasn't so quiet, but the State Board of
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 Administration
normally doesn't get a lot of
2 attention,
but it is an incredibly important entity
3 for
750,000 people. Why don't you give us a little
4 overview
of what the State Board does and then we'll
5 go
through the rest of the report?
6 MR.
HERNDON: Yes, Governor, I'll be happy to. The
7 State
Board of Administration is a Constitution-created
8 agency
that invests money on behalf of the Florida
9 Retirement
System, as our largest client, and then another
10 25
clients in addition to that, all of whom are government
11 agencies.
In total, we invest about 125 billion dollars
12 for
various clients of government throughout the State of
13 Florida.
14 We,
as the investment arm for the Florida
15 Retirement
System, we provide services to all of the
16 members
of the Florida Retirement System, which are
17 all
state employees, all county employees, all
18 school
board employees and many of the special
19 district
employees throughout the State of Florida,
20 as
the Governor has already pointed out, that's
21 approximately
750,000 people.
22 In
addition to that, this year, of course,
23 we
have been deeply involved in the throes of
24 implementing
the new optional defined contribution
25 program,
a 401(A) program, and that's part of what
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 we'll
talk about a little bit later on this morning,
2 and
as part of the governing structure of the board,
3 as
the director, I report to the three trustees, the
4 Governor's
chairman, Comptroller Milligan and
5 Treasurer
Gallagher, and starting in January, that
6 will
be the Governor, the CFO and the Attorney
7 General,
whoever that will be, as the new board of
8 the
State Board of Administration, so that's the ---
9 GOVERNOR
BUSH: Can you describe the difference
10 between
defined benefit and defined contribution?
11 MR.
HERNDON: The basic difference for folks is
12 that
a defined benefit retirement system is a system that
13 is
formula driven, and it guarantees a check once you
14 reach
certain milestones in your career, typically 30
15 years
or age 62. A defined contributions system is the
16 more
popularly known 401(K) where the employee has the
17 opportunity
to manage the investments on their own. They
18 can
enjoy greater prosperity if they're good investors
19 than
the defined benefit plan would be, but there is no
20 guarantee
at the end of the career period. The employee
21 assumes
the risks in that respect and also assumes the
22 rewards.
23 GOVERNOR
BUSH: And it has portability.
24 MR.
HERNDON: It has portability, which is a major
25 advantage.
It has an earlier vesting period, which is a
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 significant
advantage, and it also -- And this is
2 something
that needs stressing significantly: It
3 represents
an accumulation of assets that can be passed
4 onto
your family, which the defined benefit plan, does
5 not.
6 Once
the beneficiary or his spouse dies, the
7 benefit
stops, but to be able to leave something to
8 your
heirs, in the case of a defined contribution
9 program,
is a significant benefit. There are a lot
10 of
benefits to it.
11 GOVERNOR
BUSH: And in one of the just slightly off
12 the
topic subjects, when we compare teacher salaries, for
13 example,
with other states, and occasionally, that's done
14 by
reporters, not included is the benefits package. In
15 our
state, teachers and other employees that are in the
16 state
retirement system, do not pay any amount in terms of
17 the
contribution into the system. The employer pays the
18 contribution
amount and that totals now 9 --
19 MR.
HERNDON: Approximately 9 percent.
20 GOVERNOR
BUSH: -- percent benefit that all state
21 employees
and county employees that are opting in and
22 teachers
get, which is, for a whole lot of people, a lot
23 of
-- It's a very good benefit, so this is a big deal, and
24 I'm
glad Colonel Milligan brought it up.
25 MR.
HERNDON: To go back, Governor, where we were,
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 was
the approval of the minutes.
2 GOVERNOR
BUSH: We approved them.
3 TREASURER
GALLAGHER: We did that.
4 MR.
HERNDON: Okay. Items number 2 and 3, if it's
5 agreeable
with you, I'll just go ahead and combine, and
6 they're
basically both statistical reports on where we are
7 with
respect to the new defined contribution program.
8 We've
provided you with the implementation status report
9 18.
10 We
now have signed all of the bundled
11 provider
contracts, and 13 of the 17 unbundled
12 provider
contracts have been executed. We've signed
13 the
contracts with the asset transition broker and
14 our
consultant that's watching the transition
15 consulting
activities, and as the statistical report
16 provides,
and I've handed out this morning, the
17 June
21st information, we now have mailed employee
18 kits
to all of the Group One employees, all of the
19 state
employees and have 98 percent of the School
20 Board
employees receiving their kits.
21 Thus
far, we've had approximately 24,000
22 people
who have made elections, that's chosen one or
23 the
other of the now two or actually three
24 investment
choices. We have 30,000 people who have
25 attended
workshops, and that doesn't include
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 approximately
15,000 folks of Brevard County who
2 were
a part of their systemwide School Board hookup.
3 They're
not really reflected in the statistics of
4 folks
who attended workshops.
5 I
would also just quickly call to your
6 attention,
some of the statistical report material
7 that's
provided as part of the package, which shows
8 how
the program is being received. It is, to a
9 large
extent, as we expected, and what I'm looking
10 at
here is some of the information in this
11 statistical
report that should be attached as part
12 of
your material, because there's some interesting
13 things
in there, I mean, just to call to your
14 attention,
for example, the chart on the bottom of
15 page
2, which looks at early selection information
16 based
on age, and what you see is people who are
17 making
selections, are falling into the kinds of
18 categories
that we would anticipate. People who
19 tend
to be older and are more certain of their
20 decision
are, in fact, making early choices.
21 The
same thing is true when you look at
22 years
of service; people who have higher years of
23 service,
have made choices, and you also see a very
24 similar
phenomenon when you start looking at the
25 kinds
of choices that people are making, the people
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 who
have relatively short years of service are, in
2 fact,
picking the new investment plan, which is what
3 we
thought would be the case and what it was
4 designed
to do.
5 People
with large -- longer years of
6 service,
are, in fact, picking the pension plan
7 which
gives everybody the best set of choices. I'm
8 not
going to go through all this, but there's some
9 significant
things here. We're doing pre and
10 post-tests
as people come into the workshop. We're
11 testing
them for their knowledge coming in, and
12 we're
testing them for their knowledge going out,
13 and
then we're also asking them, for example: Would
14 you
recommend going to a workshop to others, and 99
15 percent
of the people who are coming into the
16 workshop
are saying: Yes, I would recommend that
17 they
go to these employee workshops. One thing that
18 we
are also concerned about, of course, is current
19 events
in the market. They are definitely having an
20 effect
on peoples' choices.
21 As
you might expect, September 11th, the
22 Enron
diaster and now a poor performing market, are
23 slowing
down the number of people who are choosing
24 the
investment plan. I don't know that there's
25 anything
we can do about that, but we are following
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 up
with all of the folks who are in the Group One,
2 and
remember that the open enrollment for Group One
3 has
only been up for one month, and we've got two
4 more
months for Group One population, which is the
5 state
employees, and we know, from prior experience
6 and
talking to our consultants who have done this
7 around
the country, that there's a spike that will
8 occur
in the last two to three weeks of each group's
9 enrollment
window because it's the natural notion of
10 people
to procrastinate, and they will make their
11 decisions
late in the cycle, so we're following up
12 with
additional mailings to all those folks, trying
13 to
provide additional incentives to get people in
14 the
workshops, reaching out again to the employers,
15 reaching
out to the editorial boards, to the
16 business
writers and so on and so forth, trying to
17 stimulate
interest in all of this so that folks make
18 informed
decisions.
19 It's
still early. We're still quite
20 optimistic
about making sure that folks make
21 informed
decisions, but, unfortunately, you do have
22 a
backdrop of a poor performing stock market right
23 now,
which is a coincidence that none of us would
24 have
preferred, but is a reality nevertheless. So
25 that's
basically the statistical report. It's just
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 for
information for items two and three combined.
2 GOVERNOR
BUSH: Any questions or comments?
3 Item
4.
4 MR.
HERNDON: Item number 4 is to request your
5 approval
to revise the benchmark for the Lawton Chiles
6 Endowment
Fund from the Wilshire 2500 to the Russell 3000,
7 excluding
tobacco. This is the same benchmark change that
8 you
authorized for the Florida Retirement System. We took
9 it
to the Advisory Council at their meeting a couple of
10 weeks
ago, and they were very much in agreement with this
11 recommendation.
12 COMPTROLLER
MILLIGAN: Moved.
13 TREASURER
GALLAGHER: Seconded.
14 GOVERNOR
BUSH: Moved and seconded. Without
15 objection,
it's approved.
16 MR.
HERNDON: Item number 5 is to recommend or not,
17 as
the case may be, a replacement fund for a product that
18 has
been proposed by ING Aetna. As you'll recall, each of
19 the
five multiple providers got six investment products.
20 Shortly
after the selections were made, one of the ING
21 Aetna-sponsored
products had a wholesale departure of
22 their
investment team. We worked with ING Aetna to come
23 up
with some replacements. They gave us four products.
24 We
worked through the performance metrics for those
25 products,
the fees and so on and so forth, and we are
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 recommending
that out of those four, this one product is
2 the
best, but I must tell you that it is not a
3 recommendation
we make with great enthusiasm.
4 It's
a high cost product, and its
5 performance
is mediocre. If there's a desire for
6 symmetry,
then that's fine, and certainly this
7 product
fits the bill. The folks from ING Aetna are
8 here
and would like to speak for one moment before
9 the
trustees ---
10 GOVERNOR
BUSH: You set up that presentation very
11 well,
Tom.
12 MR.
HERNDON: Well, we've had many discussions with
13 them,
Governor, and they understand our sentiments about
14 this,
and, you know, they realize that it's about the best
15 that's
out there.
16 GOVERNOR
BUSH: Let's hear from them.
17 MR.
HOLGATE: Governor, General and Treasurer:
18 Thank
you, Mr. Herndon, for sending us off on a good note,
19 but
we have been working closely with the State Board
20 staff
on replacing this fund. I'd like to point out,
21 respectfully,
that in the wake of Enron and things like
22 that,
it's important to recognize the corporate
23 partnership
that exists here.
24 We
brought this manager change to the State
25 Board's
attention and said: Perhaps this is
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 something
we want to take a look at. We agreed that
2 removal
of the fund, prior to the rollout, was the
3 best
thing for FRS members. We then worked with
4 State
Board staff to not only find a replacement
5 fund,
but perhaps see if there was a better place,
6 within
the asset classes, rather than simply replace
7 the
small capital end fund with the small capital
8 end
fund, and we asked the State Board staff: Where
9 do
you want us to go, and they pointed us toward the
10 midcap
value sector.
11 It
is in that context, that we provided
12 several
different funds across the spectrum, both
13 proprietary
index funds as well as funds from
14 outside
of our own offerings, and allowed the State
15 Board,
in cooperation with Kallen, to come up with
16 their
recommendation. As you might imagine, I would
17 disagree
with the fact that this is a high priced
18 fund
and a mediocre fund. We actually think this is
19 the
right fund at the right price for several
20 reasons;
one, this would, as you can see from Tom's
21 own
memo to you, be the top rated midcap fund on the
22 FRS
menu. I think the number there is 4.6.
23 It
also is a very competitively priced fund.
24 We
have, respectfully, through negotiations, brought
25 this
thing down from 116 basis points to 85 basis
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 points,
which, frankly speaking, is our rock bottom
2 price
that we could go to.
3 It
also would represent the only midcap fund
4 in
the program with a ten-year track record,
5 something
that we think is important to FRS
6 participants
to be able to see some history, and
7 finally,
I would respectfully request that if this
8 fund
at this price is not the right solution, that
9 the
trustees send ING and staff away with clear
10 direction
as to what it is going to take to replace
11 this
fund, rather than make it a referendum for
12 whether
we should have 41 or 42 funds on the menu.
13 That's
my comments. Thank you.
14 GOVERNOR
BUSH: Thank you. Unaccompanied by a
15 lobbyist
still, it looks like.
16 COMPTROLLER
MILLIGAN: Yes, sir.
17 GOVERNOR
BUSH: I just wanted to point that out.
18 Commissioner?
19 TREASURER
GALLAGHER: We already have 41 products.
20 It's
a lot of choices, and I am concerned about the 85
21 basis
points. That's a pretty stiff payment for, you
22 know,
to be taken out every year from someone's retirement
23 money.
24 GOVERNOR
BUSH: Is it true, Tom, that because they
25 came
to you and said that their investment team is gone,
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 that
you asked them to put together a proposal for a
2 different
type of investment?
3 MR.
HERNDON: Yes, sir.
4 GOVERNOR
BUSH: Why would you do that?
5 MR.
HERNDON: We were just trying to look and see
6 where,
across the array of products that we had, that
7 there
might be a better opportunity for the company and
8 for
the program in its entirety. They proposed four
9 different
products, and this was the one that ultimately
10 surfaced
as the best of those four.
11 GOVERNOR
BUSH: Does ING Aetna have any additional
12 investments
in the spectrum?
13 MR.
HERNDON: In that particular space, I don't
14 know.
15 MR.
HOLGATE: Yes.
16 MR.
HERNDON: Yes, sir; they have another five
17 investment
products. Yes, sir.
18 TREASURER
GALLAGHER: Let me just mention that
19 right
now we have not, if we don't count the Lord Abbott
20 midcap
value, we have three small midcap and three -- I'm
21 sorry
-- three small cap and three midcap. The small caps
22 are
a broad, two broads basically, and the midcaps,
23 there's
one broad and one growth, and they were bringing a
24 lot
of values to have some -- You know, to make it
25 somewhat
different. I would be most comfortable to send
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 back
the staff in ING to look at some other options, and
2 if
this is the best they can come up with, they can come
3 back
to us with it, but ---
4 COMPTROLLER
MILLIGAN: Yes, I tend to agree with
5 Tom.
The performance projections are what are a little
6 worrisome,
coupled with the basis points. I think they
7 ought
to work a little bit harder on it.
8 TREASURER
GALLAGHER: Well, it's pretty high. It's
9 the
highest one for midcap.
10 COMPTROLLER
MILLIGAN: And the lowest performer, at
11 least
in terms of projection.
12 GOVERNOR
BUSH: What is the Kallen Gross Score?
13 How
meaningful is that?
14 MR.
HERNDON: What Kallen does is they take a look
15 at
performance and fees based on past track record, and it
16 indicates
that it is has potential but when you compare it
17 against
the others ---
18 GOVERNOR
BUSH: So it has the highest? It has the
19 best
record and the worst projected performance? Who gets
20 to
make the projections?
21 COMPTROLLER
MILLIGAN: Financial engines did the
22 projections.
23 MR.
HERNDON: I beg your pardon?
24 COMPTROLLER
MILLIGAN: Financial engines.
25 MR.
HERNDON: Financial engines will, when people
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1 come
into the system and ask for an optimized portfolio,
2 what
are the best set of investment choices, and this one
3 typically
will not be the choice that will fall out as the
4 best
choice because of its performance and fee structure.
5 TREASURER
GALLAGHER: Did you look at the report
6 that
was done by staff of Lord Abbott? If you did a
7 median
forecast, and this is a $10,000 initial investment
8 over
ten years, they did 14,000, and Prudential 17 FRS,
9 our
select one that we have is 16. Franklin 16; Fidelity
10 low
priced stocks, 16; Fidelity midcap stocks, 15; T. Rowe
11 Price,
15-7, and Vesco Dynamics 15-5, and the midforecast
12 for
this particular one is 14-7, so I think that's one of
13 the
concerns that the ---
14 COMPTROLLER
MILLIGAN: Actually, that's been
15 downgraded
too, at least on my chart, but to the credit on
16 the
down side, it's not the worst on the down side.
17 GOVERNOR
BUSH: It's not the worst?
18 TREASURER
GALLAGHER: No. You know, it's the old
19 risk
return deal.
20 COMPTROLLER
MILLIGAN: Yeah.
21 TREASURER
GALLAGHER: That's why I picked it, the
22 mid
---
23 GOVERNOR
BUSH: We have to take that in the form of
24 a
motion.
25 TREASURER
GALLAGHER: I'll make that as a motion to
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 go
back with ING and work with them again.
2 COMPTROLLER
MILLIGAN: I'll second it.
3 GOVERNOR
BUSH: Moved and seconded. Without
4 objection,
it's approved.
5 MR.
HERNDON: Item number 6 is to provide ---
6 GOVERNOR
BUSH: I assume we don't have much more
7 time.
I mean ---
8 MR.
HERNDON: Well, the rollout has already
9 occurred.
I mean, these products are out there. In
10 effect,
the old ING product is blocked right now. There's
11 just
that gap for the time being, and when it is
12 available,
we'll bring it back to you all, and it may call
13 for
a special meeting or something that we can circulate
14 or
something like that.
15 TREASURER
GALLAGHER: Well, if they come up with
16 something
that they want to bring to us, I think
17 circulation
would be okay if it's done, you know, so that
18 they
can catch up if nobody else has a problem with that?
19 COMPTROLLER
MILLIGAN: I'm sorry?
20 TREASURER
GALLAGHER: What I said was, as opposed
21 to
coming back August 13th, if they work out a product
22 that
they think is acceptable and would be good to put on
23 there,
just circulate it without coming to a full meeting.
24 GOVERNOR
BUSH: All right.
25 COMPTROLLER
MILLIGAN: I don't have a problem with
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 that.
2 MR.
HERNDON: Item number 6 is to provide you with
3 a
report on the actions of the Advisory Council and the
4 consultant
work that we have done over the last several
5 months
regarding the venture capital initiative.
6 As
you'll recall, the board authorized a 25
7 million
dollar venture initiative with the Florida
8 focus
to it. We worked with our consultants and did
9 quite
a bit of research within the State of Florida,
10 looking
at the venture firms and made a
11 recommendation
that within the existing allocation
12 of
funds to our private equity class, that we
13 increase
the target for venture expenditure to a 300
14 million
dollar initiative over several years.
15 We
took this to the Advisory Council a
16 couple
of weeks ago. They were unanimous in their
17 support
for this recommendation, and, in fact,
18 encouraged
us to consider even doing more than that,
19 but,
you know, for the time being at least, we
20 thought
that was the appropriate recommendation to
21 make
to you and to -- That is our planned program
22 based
on the recommendations and the actions of the
23 Advisory
Council.
24 GOVERNOR
BUSH: So you discussed ---
25 COMPTROLLER
MILLIGAN: Is there more information on
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 ---
2 MR.
HERNDON: Yes, sir.
3 COMPTROLLER
MILLIGAN: I would accept the IAC
4 recommendation
that he has.
5 GOVERNOR
BUSH: I would urge you also to consider
6 talking
to the IAC, if you need to, about the size of the
7 traunches
--
8 MR.
HERNDON: Yes, sir.
9 GOVERNOR
BUSH: -- because in this -- We can't --
10 The
difference between 50 million or 30 million and a
11 hundred
million, there can't be that much economy as a
12 scale,
and it excludes some smaller funds that might
13 actually
be Florida-site based, and while only we should
14 gear
investment based on geography, this may be a way to
15 help
encourage venture capital companies to be located
16 here,
which is a key ingredient to get more
17 entrepreneurial
venture related activity in the State.
18 MR.
HERNDON: Yes, sir.
19 TREASURER
GALLAGHER: There's not a major shortage
20 of
venture capital out in the marketplace. There's a
21 shortage
of good investment deals, and so that's always a
22 concern
of mine as when we take a large amount of money
23 like
this and go out chasing venture deals. We may not be
24 on
the first list, and I think, it looks to me like the
25 IAC
recommended to go to cap the funds to funds program --
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1 MR.
HERNDON: Yes, sir.
2 TREASURER
GALLAGHER: -- which should get us at the
3 top
tier level instead of trying to compete --
4 MR.
HERNDON: Yes, sir.
5 TREASURER
GALLAGHER: -- at a lower tier, so I
6 think
that's obviously what we're approving here.
7 MR.
HERNDON: That's exactly what we intend to do.
8 COMPTROLLER
MILLIGAN: We're not approving anything
9 right
now.
10 MR.
HERNDON: It doesn't require your approval at
11 this
point. We're reporting to you because we wanted you
12 to
be aware of this initiative, and you had addressed this
13 venture
initiative several months back, and we wanted to
14 just
give you a status report and tell you where things
15 were.
16 TREASURER
GALLAGHER: What this says to me is this
17 is
moved here for approval, and so if we need to discuss
18 that,
we need to do it now.
19 COMPTROLLER
MILLIGAN: I don't believe you're
20 really
ready for us to give an approval on it, are you,
21 Tom?
22 MR.
HERNDON: No, sir. The item is not presented
23 for
your approval. I'm sorry. It's just for information.
24 This
is the plan that we intend to move forward on.
25 GOVERNOR
BUSH: Okay.
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 COMPTROLLER
MILLIGAN: Okay.
2 MR.
HERNDON: Item number 7 is appointment of two
3 Advisory
Council members to the Florida Hurricane
4 Catastrophe
Fund. Leslie Hudson Russell has been
5 appointed
by the Governor to fulfill the vacant
6 meteorologist
position, and John Haur has been appointed
7 by
the Treasurer to replace Rade Musulin representing
8 insureds.
9 TREASURER
GALLAGHER: Motion.
10 COMPTROLLER
MILLIGAN: Second.
11 GOVERNOR
BUSH: Moved and seconded. Without
12 objection,
it's approved.
13 MR.
HERNDON: Item number 8 is for you to discuss
14 and
decide on my successor.
15 GOVERNOR
BUSH: Mr. Gallagher, do you have any ---
16 TREASURER
GALLAGHER: I'm ready to listen to any
17 discussion.
18 COMPTROLLER
MILLIGAN: Well, I'm never afraid to
19 make
a comment or two. I think, without going into a lot
20 of
detail, we have a good reason to wait a short period of
21 time
for some items to clarify, but I certainly would
22 recommend
that we ask Coleman to step up and serve in the
23 interim
until such time as current activity, as ongoing,
24 is
completed, which should be by our next meeting in
25 August.
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 TREASURER
GALLAGHER: I'll second that.
2 COMPTROLLER
MILLIGAN: That's Coleman Stipanovich.
3 GOVERNOR
BUSH: Yes, I was going to make sure that
4 the
records showed that.
5 COMPTROLLER
MILLIGAN: And I will say it with
6 complete
confidence that I recommend that he go in and
7 serve
as the interim until we sort out another minor
8 issue.
9 GOVERNOR
BUSH: There's a motion to second. I'd
10 like
to make a comment here. I have full confidence in
11 Coleman's
ability, and at such time as this process that
12 we
were hopeful or I was at least hopeful would be
13 finished
by now, although the deadline, I think is next
14 week,
is completed and there's, I guess, a response period
15 of
20 days, I will support him to become more than
16 interim,
to be permanent.
17 I
think it's important, during this
18 transition,
that we show our support and not allow
19 for
any uncertainty to undermine the two or three
20 things
that are really very important right now, so
21 that
would be my comment, but we can't act,
22 unfortunately,
with this item still pending.
23 There's
a motion and a second to make
24 Coleman
Stipanovich the interim director, I guess,
25 without
a time certain, is that correct? Is that
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STATE BOARD OF ADMINISTRATION, June 25, 2002
1 what
the motion was?
2 TREASURER
GALLAGHER: Yes.
3 GOVERNOR
BUSH: Without objection, the item is
4 passed.
5 MR.
HERNDON: Thank you, Gentlemen; it has been a
6 pleasure.
7 GOVERNOR
BUSH: Safe journey, Tom.
8 COMPTROLLER
MILLIGAN: See you, Tom.
9 GOVERNOR
BUSH: Get the handicap down. This
10 government
work kills your golf game.
11 TREASURER
GALLAGHER: Either that or it gets you
12 rounds
faster and faster.
13
14
15
16
17
18
19
20
21
22
23
24
25
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DIVISION OF BOND FINANCE, June 25, 2002
1 GOVERNOR
BUSH: Division of Bond Finance.
2 TREASURER
GALLAGHER: Motion of the minutes.
3 GOVERNOR
BUSH: Ben, can you describe, just
4 briefly,
what you do?
5 MR.
WATKINS: Yes, sir; I'll be happy to. Whereas,
6 Tom
Herndon, the previous speaker, is involved in
7 investing
the State's money, our business is involved with
8 borrowing
money on behalf of the State and its agencies,
9 and
the way that we do that is by planning, structuring
10 and
selling tax exempt bonds.
11 We
administer several bond programs for
12 different
agencies of the State, for example, public
13 education
capital outlay for school construction,
14 but
for the Department of Education, Florida Forever
15 Bonds
and a new program that we will be initiating,
16 Everglades
Restoration Bonds for cleaning up the
17 Everglades,
which is a project that's very important
18 to
this area of our State, right of way bonds and
19 turnpike
bonds for road construction and bridge
20 construction
for the Department of Transportation,
21 and
to give you a sense of the transaction flow that
22 we
handle in our office, over the last year, for the
23 fiscal
year ending June 30, next week, we executed
24 24
transactions, totalling 2 1/2 billion dollars.
25 Of
the 2 1/2 billion dollars, 1 1/2 billion
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DIVISION OF BOND FINANCE, June 25, 2002
1 was
for financing State infrastructure projects, and
2 a
billion was for refinancing high interest rate
3 bonds
at lower interest rates, and thereby saving
4 the
State 110 million dollars in avoided future
5 interest
costs.
6 Of
the total State debt for the State as a
7 whole,
there's 18 1/2 billion dollars of debt
8 outstanding,
and there's an important distinction to
9 be
made here between branches of government. The
10 Legislature
is responsible, through formulating the
11 State's
budget, in deciding what we borrow money for
12 and
how much we borrow, and this branch, the
13 executive
branch of government, is responsible for
14 implementing
those laws by executing the
15 transactions
in the most cost effective manner
16 possible,
and what I'm here to do this morning is to
17 report
on award of report on the sale of bonds.
18 GOVERNOR
BUSH: Thank you, Ben.
19 Do
we have a motion on that?
20 TREASURER
GALLAGHER: Motion.
21 COMMISSIONER
BRONSON: Second.
22 GOVERNOR
BUSH: There's a motion and a second on
23 the
minutes. Without objection, the item is approved.
24 Item
2.
25 MR.
WATKINS: Item 2 is a report of award on the
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DIVISION OF BOND FINANCE, June 25, 2002
1 competitive
sale of 250 million dollars in PICO bonds.
2 The
bids were solicited, and the bonds were awarded to the
3 low
bidder at a true interest cost rate of 4.96 percent.
4 TREASURER
GALLAGHER: Motion on 2.
5 COMMISSIONER
BRONSON: Seconded.
6 GOVERNOR
BUSH: Moved and seconded. Without
7 objection,
the item is approved.
8 Thank
you, Ben.
9 MR.
WATKINS: Yes, sir.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 GOVERNOR
BUSH: Department of Highway Safety.
2 TREASURER
GALLAGHER: Motion on -- Oh, he's got to
3 explain
this.
4 MR.
DICKINSON: Good morning, Governor, Cabinet.
5 GOVERNOR
BUSH: Good morning.
6 MR.
DICKINSON: First item is approval of the
7 minutes
from the May 21st cabinet meeting.
8 TREASURER
GALLAGHER: Moved.
9 COMMISSIONER
BRONSON: Seconded.
10 GOVERNOR
BUSH: Moved and seconded. Without
11 objection,
it's approved.
12 MR.
DICKINSON: Quickly, before I get to my next
13 item,
I'm going to defer to Lieutenant Governor Brogan.
14 He's
going to present something, but first, I think we can
15 go
ahead and tell you that we're Highway Safety & Motor
16 Vehicles,
four components, program areas of the Florida
17 Highway
Patrol, of which our colonel, Chris Knight, is
18 here
with us today, and I know he's not going to like
19 this,
but yesterday, we were coming in on 836, and there
20 was
a car stalled, and you had the colonel, the Florida
21 Highway
Patrol and the executive director out pushing the
22 car
off the interstate and ---
23 TREASURER
GALLAGHER: All right.
24 GOVERNOR
BUSH: I'd like to have a picture of that.
25 MR.
DICKINSON: Well, we're just glad that somebody
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 didn't
ram us from behind because it was a nasty ---
2 GOVERNOR
BUSH: Was it raining?
3 MR.
DICKINSON: It was not raining, but we felt
4 like
it was after we pushed that car down about to the
5 toll
booth.
6 We
also handle drivers' licenses, which is a
7 hot
topic since 9/11, and I worked with the Governor
8 and
Cabinet and your Legislature, our Department
9 has,
to try to accommodate as many of our citizens
10 as
possible, and we keep going through this.
11 Legals
and illegals is a big hot topic right
12 now
in Washington and Tallahassee and all over the
13 State,
and we're certainly trying to accommodate our
14 motoring
public, but we do handle quite a few
15 drivers,
about 5 million a year in our offices.
16 We
also handle all the tagging,
17 registrations
for mobile homes, trucks, cars, and
18 your
local tax collectors handle that effort for us
19 as
well as the other departments, the Department of
20 Revenue
and Game & Fish and some other departments.
21 We're
about 5,000 strong. We collect about 1.2
22 billion
dollars a year. Our mission is to make the
23 highway
safe. I'm happy to report, Governor, that
24 we're
getting ready to release the 2001 crash facts
25 information
that I think we left with the aides last
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 week.
2 For
the first time since World War II, we're
3 down
below two deaths per 100 million miles driven,
4 so
that is an accomplishment. The nation, as a
5 whole,
is a little ahead of us, but we're having --
6 We're
making some progress there, and as I reported
7 to
you last time, we are creeping up a little bit on
8 alcohol-related
fatalities, so that's something that
9 we'll
be paying attention to, and MADD is hot to
10 trot.
They're pushing some stuff in Washington as
11 well
as Tallahassee.
12 GOVERNOR
BUSH: Thank you, Fred.
13 MR.
DICKINSON: Thank you, Governor, and thank you
14 for
the bonus, Gentlemen. It has been a pleasure working
15 for
you.
16 This
is the End Breast Cancer tag, and
17 Governor
Brogan is going to assist us here, and,
18 Governor,
it's all yours. I want to say that this
19 is,
of all the tags, and we have 56 commissioned
20 now,
and of all the tags, this has been the most
21 efficient
group to work with to put the tag out on
22 the
street, and I hope that we'll have it out there,
23 assuming
approval here, by August.
24 GOVERNOR
BUSH: That looks like a real tag. That's
25 really
ready to go?
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 LIEUTENANT
GOVERNOR BROGAN: It's the real McCoy.
2 Good
morning, Governor and Members of the Cabinet.
3 GOVERNOR
BUSH: Can you tell our friends in Miami
4 what
the Lieutenant Governor does?
5 LIEUTENANT
GOVERNOR BROGAN: This will be good.
6 You
see -- Well, first of all, I feel Colonel Knight's
7 pain;
I've been asked to change the tire on the Governor's
8 vehicle
on several occasions, if that gives you any idea
9 of
some of my responsibilities as the Lieutenant Governor,
10 so
---
11 TREASURER
GALLAGHER: Show them the mirror.
12 LIEUTENANT
GOVERNOR BROGAN: Yes, we always talk
13 about
the mirror, and that is the fact that the Lieutenant
14 Governor
is always given a small compact mirror that you
15 use
early in the morning, and you go down to the
16 Governor's
office, and you hold it under his nose, and if
17 two
wet spots appear, you have the rest of the day off.
18 Work
with me.
19 It
is unusual to come all the way down to
20 Miami
to spend a little time with people who I
21 consider
my good friends; we don't get a chance to
22 see
each other often enough, but it's a real delight
23 to
have the chance to stand before you today on a
24 very
important issue.
25 It
is hard for me to believe that in 48
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 hours,
I'm going to be commemorating the anniversary
2 of
the passing of my wife, Mary, to breast cancer,
3 someone
that you all knew very well, but in those
4 three
years, not only have I been dealing with the
5 loss,
I have found a whole new family that exists,
6 not
only in the State of Florida but nationally and
7 internationally,
and it's the family of man. It's a
8 family
of men and women and young people who are
9 banding
together to try to eradicate breast cancer,
10 hopefully
in our time.
11 We
had champions standing here today on the
12 issue
of terrorist activity and ultimately dealing
13 with
the education and the awareness and the
14 planning,
and on an international scale, the total
15 elimination,
some day, of international terrorism.
16 We
had champions here today who are dealing
17 with
the terrors of drug addiction and the fact that
18 it
keeps too many people locked in its jaws each and
19 every
day, and through appropriate education and
20 awareness,
enforcement, interdiction, and
21 ultimately,
the elimination of drug addiction, those
22 champions
will manifest themselves with their
23 ultimate
goal in sight.
24 Breast
cancer is no different. With each
25 and
every day, we deal with breast cancer, a
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 horrific
killer, something that maims and something
2 that
disfigures and something that has an impact on
3 the
psyche of mammoth proportion of so many people
4 who
deal with it and its effects, on a regular
5 basis,
in our State, country and world, that the
6 whole
issue of education and awareness and early
7 detection
and intervention are still critically
8 important
on the issue of breast cancer, but
9 ultimately,
the day and time where we will be able
10 to
boast the cure, is the day that we all search
11 for,
and a little unlike drug addiction, which
12 requires
the hollowness of the heart to produce and
13 manufacture
and sell drugs that we try to end, when
14 it
comes to terrorism and the incredible ugliness
15 and
hollowness of the heart that creates it and all
16 that
it creates in our world, the difference here is
17 the
fact that we can find a cure.
18 We
can eliminate breast cancer in our time
19 if
we put our energies to that end, and that makes
20 it
a little bit different in that regard. It is a
21 clinical
problem that we can absolutely eliminate.
22 I'm
hardpressed to believe that there is anybody in
23 this
gallery today who doesn't know the ugliness of
24 breast
cancer, who hasn't had a loved one or a
25 friend
or a colleague who has felt directly the
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 impact
of breast cancer or the indirect impact based
2 on
what it does to a loved one of theirs. With all
3 of
the license plates in the State of Florida, this
4 is
one that I was directly involved in, but I want
5 to
introduce to you, my friends today, the real
6 champions
on the issue of the breast cancer license
7 plate,
and they are some of the men and women who do
8 represent
so many thousands of others fighting this
9 great
fight each and every day around the State of
10 Florida.
11 These
are representatives of Florida's
12 Breast
Cancer Coalition who are with us today, and
13 they
were the tip of the javelin on this fight to
14 make
certain that we not only brought forward this
15 license
plate and all that it will provide to end
16 breast
cancer in our time, through important
17 research
and the dollars needed to research the
18 issue,
but also worked it through the legislative
19 process.
20 I've
got to tell you, as much work as I do
21 on
the Governor's behalf with the Members of the
22 House
and Senate, I pale in comparison with the work
23 that
this group did this year with the leadership of
24 the
House and Senate to bring this license plate
25 about.
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 Before
I say anything directly more about
2 them,
by way of introduction, I do want to take a
3 moment
to thank the Florida Legislature; Speaker
4 Feeney,
President McKay, the leadership, and
5 especially
today, the prime sponsors of the
6 legislation,
one of which is with us today, and that
7 is
Representative Gaston Cantens, who is here, and
8 not
unable to be with us today, and clearly someone
9 who
knows and understands very well the horror and
10 the
nightmare of breast cancer, Senator Debbie
11 Sanderson,
so with that, I would like not only the
12 representative
to join us up front, but as I
13 introduce
the rest of these ladies and gentlemen,
14 ask
them to also please join us here.
15 You
will see at the end of the dais, the
16 rendering
of the Florida Breast Cancer Coalition's
17 license
plate, and the number 188. I always get the
18 commercial
message in: End It Now, and, Governor,
19 you'll
be delighted to know there's a website, since
20 you're
the E-Governor, and you can see that as well,
21 and
that will provide a myriad of information to
22 people
who are hungry for such information, and this
23 is
the actual license plate and a sample thereof,
24 and
it's beautifully done.
25 The
design comes by way of a group called
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 McCann-Erickson
Graphic Art, and we have with us
2 today,
Jim Esposito, who, I believe is the actual
3 genius
behind the design of the license plate that
4 we
hope will grace the bumpers of thousands and
5 thousands
of automobiles in the State of Florida,
6 and
Jim, I know you were with us, and I hope you
7 still
are; please come forward.
8 We
also have with us today Stacey
9 Aaronkrantz,
who is with the Coalition, who helped
10 to
coordinate the effort. Stacey, please come
11 forward.
We have Jane Torres, who you'll be hearing
12 from
in just a moment, Governor and Members of the
13 Cabinet,
who is the president of the Florida Breast
14 Cancer
Coalition. We have with her, Ray Torres and
15 Leigh
Torres, who are her husband and daughter with
16 us
today, Barbara Heartstein, who is with the
17 Coalition;
Nancy Fischman, with the Coalition; Carol
18 Freed,
Coalition member; Barbara Bronfman, board
19 member,
who are also with us today, and we also have
20 someone
that you're all familiar with.
21 The
word "lobbyist" is widely overused in
22 regard
to this gentleman, and in this particular
23 case,
this was a labor of love, and we have with us
24 today,
Ron Book, who represents the Florida Breast
25 Cancer
Coalition and worked this issue very hard,
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 and
Ron, we ask you to come forward as well, so with
2 that
I would like to now ---
3 GOVERNOR
BUSH: Could we ask that the other members
4 of
the Legislature that are here as well to come forward?
5 LIEUTENANT
GOVERNOR BROGAN: Yes, if we do have
6 other
members, we'd love to have them come forward since
7 they
were all part and parcel to -- Yes, Senator Silver
8 was
here.
9 GOVERNOR
BUSH: You all come on up here.
10 LIEUTENANT
GOVERNOR BROGAN: Senator? Please.
11 SENATOR
SILVER: First time I haven't been able to
12 be
seen.
13 LIEUTENANT
GOVERNOR BROGAN: We're glad to have all
14 of
you with us this morning. It was a real partnership
15 that
included people all over the State of Florida, and
16 again,
the leadership of the Florida House and Senate to
17 come
together and bring us to this point.
18 We
know that you are called upon regularly
19 to
endorse license plates for a variety of issues.
20 We
hope that you will agree, that while there are so
21 many
important issues out there, arguably, there is
22 none
more important than the one we ask you to
23 consider
today.
24 With
that, I would like to bring to the
25 podium
the president of the Florida Breast Cancer
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 Coalition
for Florida, Jane Torres.
2 Jane?
3 TREASURER
GALLAGHER: May I make the motion to
4 approve
it now, Governor? If I could, I'd like to move to
5 approve
it.
6 GOVERNOR
BUSH: Is there a second?
7 COMMISSIONER
BRONSON: Seconded.
8 GOVERNOR
BUSH: Moved and seconded. Without
9 objection,
it's approved.
10 MS.
TORRES: Thank you. Thank you very much.
11 GOVERNOR
BUSH: You don't have to make an
12 impassioned
appeal. It has already done.
13 MS.
TORRES: Well, now what we need is for people
14 to
buy the tags. Exactly. And on behalf of the Florida
15 Breast
Cancer Coalition and all of those who have been or
16 will
be affected by breast cancer, I sincerely want to
17 thank
you, Governor Bush and Lieutenant Governor Brogan
18 and
Members of the Cabinet, for approving it and our
19 wonderful
sponsors and co-sponsors, Representative
20 Cantens,
Senator Sanderson, Cindy Lerner, Representative
21 Heyman,
Burfield, and Senator Silver and Senator Pruitt,
22 whose
wife also is a survivor, and I know General
23 Milligan,
that your executive assistant is undergoing
24 breast
cancer surgery, probably as we speak, and as
25 Lieutenant
Governor Brogan said, this is something that
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 hits
all of us.
2 This
year, over 12,000 men and women will be
3 diagnosed
in Florida with breast cancer, and more
4 than
3,000 will die. This is a three-fold increase
5 in
the past 40 years, and we do not know what causes
6 breast
cancer, and we don't know how to cure it, and
7 we
don't know how to prevent it, but the money that
8 is
raised with this license tag, will go to fund
9 research
in Florida, and that hopefully, will answer
10 these
questions, so that some day, our children and
11 our
grandchildren will grow up in a world free of
12 breast
cancer.
13 I
want to thank everyone, and of course, Ron
14 Book
and all the other members of the Coalition who
15 worked
very hard, and of course, my family, so I
16 look
forward to seeing the plates on everybody's
17 car.
Thank you.
18 GOVERNOR
BUSH: Can we just do a picture?
19 MR.
DICKINSON: Governor, we generate over 22
20 million
dollars in voluntary contributions to all the
21 various
causes with 50 tags that are currently out there,
22 so,
worthwhile causes.
23 GOVERNOR
BUSH: We're going to come down there.
24 (Thereupon,
photos were taken, after which
25 the
following proceedings were had:)
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DEPARTMENT OF HIGHWAY SAFETY, June 25, 2002
1 (Thereupon,
Governor Bush spoke in Spanish.)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
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17
18
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22
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DEPARTMENT
OF REVENUE, June 25, 2002
1 GOVERNOR BUSH: Department of Revenue.
2 MR.
ZINGALE: Request approval of minutes, please?
3 GOVERNOR
BUSH: You want to describe a little bit
4 about
what the tax agency of the State of Florida does?
5 MR.
ZINGALE: Good morning, we're the friendly
6 Department
of Revenue. We're your tax agency, 5,500
7 strong,
and we have three product lines. I think one of
8 the
product lines you might not realize we have is Child
9 Support
Enforcement. About seven years ago, the
10 Legislature
transferred the Child Support Enforcement
11 Program
over to the Florida Department of Revenue, a
12 program
we dearly love.
13 We
administer the program through about 39
14 service
centers throughout the State. Down here in
15 Dade
County, your Child Support Enforcement Program
16 is
really administered by the state attorneys office
17 down
here with Kathy Rundle. It's a neat program;
18 we
absolutely love it.
19 Facts
you might not know about the program,
20 we
have approximately 920,000 children in the
21 program.
Come to the Department of Revenue for
22 child
support services, that that 900,000 kids is
23 slightly
less than one in every four children in the
24 State
of Florida, comes to the Department of Revenue
25 for
child support services. One in every four;
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DEPARTMENT
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1 23 percent. They come to the Department of Revenue.
2 Our
primary mission is to establish their
3 paternity
for a lifetime; who's the mother, who's
4 the
father. We establish a legal support order, and
5 then
our job is to hold parents financially
6 responsible
for raising those kids. These children
7 come
to us, and you may not know it, but
8 approximately
89 percent, almost 9 out of every 10
9 of
them, are either currently on public assistance
10 or
recently on public assistance, so the kind of
11 services
they get from the Department of Revenue are
12 very
critical in their lives.
13 The
Department of Revenue is very proud of
14 the
progress we've made in the seven years that the
15 program
has been with us. This last year, even with
16 a
substantial slowdown in the economy, has been a
17 record
year for us. We've gotten more cases to
18 order,
about 65,000 than ever before, and we had
19 slightly
under a hundred million dollar increase in
20 receipts
this year going to children. That's about
21 a
12 percent increase, even though that's difficult
22 economic
times. Love the program.
23 This
last session, the Governor and the
24 Cabinet
recommended some tools for us for the
25 Legislature,
to the Legislature that they adopted,
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DEPARTMENT
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1 streamlining our administrative processes and
2 providing
us with a brand new computer that we're
3 going
to start building in just a couple of months,
4 so
we have high hopes that in the coming years,
5 we're
going to have the best child support
6 enforcement
program in the country.
7 The
second product line is the one that most
8 people
kind of know us for; we administer 36 of the
9 state
taxes, 26 billion dollars. We're highly
10 computerized.
Our primary goal there is to make
11 taxpayers
successful. We try to help them
12 understand
the law. We try to make filing easy.
13 We're
very computerized and are continuing to
14 integrate
our tax system to make it easier for
15 taxpayers
to comply. We've got a small little
16 program
which oversees the property appraisers. I'm
17 trying
to insure that their assessment of your
18 property
is done fairly and equitably. That's the
19 Department
of Revenue.
20 GOVERNOR
BUSH: Thank you, Jim. The amazing thing
21 is
that 23 percent of the children of Florida should be,
22 and
not all of them do, but should be receiving child
23 support
which, if you just pause on that --
24 MR.
ZINGALE: Big number.
25 GOVERNOR
BUSH: -- and reflect on the incredible
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DEPARTMENT
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1 disruption of family life that has occurred in the last
2 generation
of time to reach that statistic, I mean, that
3 is
just a phenomenal number. A lot of the people that are
4 supposed
to be paying, aren't paying, in spite of our
5 efforts.
6 MR.
ZINGALE: Major progress, and we have the
7 building
blocks, and you help recommend them, the building
8 blocks
to become the most successful program in the
9 country
in a relatively short period of time.
10 Request
approval of the minutes?
11 TREASURER
GALLAGHER: Motion.
12 COMMISSIONER
BRONSON: Seconded.
13 GOVERNOR
BUSH: Moved and seconded. Without
14 objection,
it's approved.
15 MR.
ZINGALE: Second item are three rule changes
16 that
we've kind of rolled into one. They stem from recent
17 legislative
changes. The first one deals with
18 streamlining
the collection and distribution of some ten
19 clerk
fees, washing them through the Department of Revenue
20 for
a single point of distribution to state agencies.
21 The
second rule deals with the extension of
22 community
development tax credits to the sales tax
23 and
some cleanup of these credits in the corporate
24 and
insurance premium tax, and the last one is just
25 a
technical cleanup and the secondhand dealer
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DEPARTMENT
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1 allowances that they relate to sales tax. Request
2 approval
of ---
3 TREASURER
GALLAGHER: Moved.
4 COMMISSIONER
BRONSON: Seconded.
5 GOVERNOR
BUSH: Moved and seconded. Without
6 objection,
the item is approved.
7 Thank
you, Jim.
8 MR.
ZINGALE: Thank you very much.
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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STATE BOARD OF EDUCATION, June 25, 2002
1 GOVERNOR
BUSH: Department of Education.
2 MR.
PIERSON: Thank you.
3 COMMISSIONER
CRIST: Governor, before Wayne
4 presents,
I wanted to just read something. I'd like to
5 take
the opportunity to recognize Wayne Pierson and Lynn
6 Abbott
for their hard work and dedication to preparing and
7 presenting
the State Board of Education agenda. This is
8 their
last Cabinet meeting at which they will be serving
9 as
members of my Cabinet staff.
10 As
you know, Governor, Wayne has been with
11 the
Department of Education since he came with
12 Lieutenant
Governor Brogan in 1995 serving as the
13 Deputy
Commissioner for Planning, Budgeting &
14 Management,
overseeing development of the State
15 Board
of Education rules and acting as agency clerk
16 for
the Department.
17 As
of July 1, Wayne will start in a brand
18 new
position as the first chief financial officer
19 for
the Florida Board of Education. We're in a
20 rather
dramatic and exciting transition in education
21 in
Florida and will be taking Lynn Abbott with them
22 to
the Florida Board.
23 As
many of you know, Lynn has been the
24 Department's
Education rule queen since 1986, a
25 wonderful
distinction, Lynn, coordinating
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STATE BOARD OF EDUCATION, June 25, 2002
1 development
and preparation of all the Department's
2 administrative
rules, of which there are many.
3 Lynn
has served as a Cabinet aide on
4 education
issues to Commissioner Gallagher and
5 myself
for the last three years. We are grateful.
6 She's
also known for playing an active role in the
7 charter
school appeal process.
8 As
of July 1, Lynn will serve as the
9 coordinator
for the chief financial officer for the
10 Florida
Board, that being Wayne. They have been a
11 huge
asset to the Cabinet Affairs Office and will be
12 truly
missed by all of us. I'd like for Wayne and
13 Lynn
to please come get a picture with the Cabinet,
14 if
that's appropriate, Governor.
15 GOVERNOR
BUSH: Sure it is; absolutely.
16 (Thereupon,
photos were taken, after which
17 the
following proceedings were had:)
18 GOVERNOR
BUSH: Mr. Pierson? Mr. Wayne?
19 MR.
PIERSON: Commissioner Crist mentioned it
20 briefly;
we're in the midst of a large reorganization of
21 the
Department, and looking at the divisions of community
22 colleges
and universities is part of the department, which
23 they
haven't been in the past.
24 Currently,
Commissioner Crist is the elected
25 commissioner,
a member of the Cabinet. The Cabinet
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STATE BOARD OF EDUCATION, June 25, 2002
1 acts
as the State Board of Education. Under the
2 reorg,
Secretary Horne will take over as the
3 commissioner,
and the Florida Board will take over,
4 and
that's effective in January.
5 GOVERNOR
BUSH: It's a big darn deal. So have we
6 done
the minutes yet? No?
7 TREASURER
GALLAGHER: No. Move the minutes.
8 COMMISSIONER
BRONSON: Seconded.
9 GOVERNOR
BUSH: Moved and seconded. Without
10 objection,
the item is proved.
11 MR.
PIERSON: Item 2 is the 2002/2003 college
12 reachout
program funding. This program, which we call
13 CROP,
is a great program for helping motivating the low
14 income
and underprivileged students who would not
15 otherwise
probably make college.
16 GOVERNOR
BUSH: It's a great program.
17 TREASURER
GALLAGHER: Moved.
18 COMMISSIONER
BRONSON: Seconded.
19 GOVERNOR
BUSH: Moved and seconded. Without
20 objection,
the item is approved.
21 MR.
PIERSON: Item 3 is an amended proposal
22 68109441,
requirements for programs and courses funded
23 through
the Florida Education Finance Program, and this is
24 merely
additional rules to the course code directory.
25 TREASURER
GALLAGHER: Moved.
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STATE BOARD OF EDUCATION, June 25, 2002
1 COMMISSIONER
BRONSON: Seconded.
2 GOVERNOR
BUSH: Moved and seconded. Without
3 objection,
the item is approved.
4 MR.
PIERSON: Item 4 is an amended proposal
5 6840291,
specialization requirements for certification and
6 reading,
and we have Ruth Gumm-Shearon from the Just
7 Reading
Florida office.
8 COMMISSIONER
CRIST: Governor, this is Ruth
9 Gumm-Shearon,
and she works with Mary Laura Openshaw on
10 the
very important task of reading.
11 MS.
GUMM-SHEARON: I think it's very important.
12 COMMISSIONER
CRIST: It is.
13 MS.
GUMM-SHEARON: And it's a pleasure, first of
14 all,
to be here today to address the reading
15 certification,
and I know reading endorsements on the
16 issue,
to impact positively the educational system for the
17 academic
welfare for all the children in the State of
18 Florida
and immediately for the empowerment of teachers to
19 deliver
instruction in the classroom, that would be
20 considered
high quality.
21 Do
you have any questions about reading
22 certification
and reading endorsement? I will be
23 glad
to answer.
24 GOVERNOR
BUSH: Describe the benefits of this, what
25 we're
approving, why is this important, what impact this
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STATE BOARD OF EDUCATION, June 25, 2002
1 will
have on teachers.
2 MS.
GUMM-SHEARON: Ultimately, it will increase the
3 pool
of qualified reading teachers, teachers that teach
4 reading
matter, responsible for teaching reading. We have
5 approximately
6,123 reading certified personnel, and 4,589
6 of
them are employed in the district, which out of all of
7 the
entire pool of those instructional personnel, that's
8 about
3 percent, and 2 percent of them work with children
9 on
a regular basis.
10 It
would increase the amount of quality
11 reading
instruction that we could truly call high
12 quality
reading instruction. We would be in a
13 stance
to prevent reading difficulties, and
14 therefore,
academic fatalities. We would be in a
15 stance
to remediate on a larger basis, and all
16 children
would then be empowered to read on
17 schedule,
on schedule according to the complexity of
18 text
as it increases.
19 GOVERNOR
BUSH: Does it also increase potential
20 benefits
for teaches because this certificate will have a
21 lot
of value since we have a real shortage of reading
22 specialists
in our schools?
23 MS.
GUMM-SHEARON: Yes, we do, and we have funding
24 opportunity.
Reading has been declared as a critical
25 teacher
shortage, so there would be funding opportunity
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STATE BOARD OF EDUCATION, June 25, 2002
1 for
the teachers to take advantage of this, so we have
2 funding
opportunities in place that we have capacity to do
3 this.
4 GOVERNOR
BUSH: Thank you. Any discussion?
5 COMMISSIONER
CRIST: Make a motion.
6 TREASURER
GALLAGHER: Second.
7 GOVERNOR
BUSH: There's a motion and a second.
8 Without
objection, the item is approved. Thank you.
9 MR.
PIERSON: There are also plans to put the
10 program
in effect at the local forming school that we've
11 just
identified.
12 Item
5 is numeral 6840292, specialization
13 requirements
for the reading endorsement, academic
14 class.
15 COMMISSIONER
CRIST: Moved.
16 TREASURER
GALLAGHER: Seconded.
17 GOVERNOR
BUSH: Moved and seconded. Without
18 objection,
it's approved.
19 MR.
PIERSON: Thank you.
20 GOVERNOR
BUSH: Thank you. We'll see you at the
21 budget
meeting, Wayne.
22
23
24
25
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STATE BOARD OF TRUSTEES, June 25, 2002
1 GOVERNOR
BUSH: Board of Trustees. Secretary
2 Struhs?
You're wearing a George W. Bush power tie, I
3 notice;
that's very impressive.
4 MR.
STRUHS: I'm wearing his cufflinks too, sir.
5 GOVERNOR
BUSH: Oh, you're wearing a power tie too.
6 A
lot of people are wearing them now; do you notice that?
7 MR.
STRUHS: It's a Miami thing, sir.
8 GOVERNOR
BUSH: Actually, Miami had the George Bush
9 power
tie before George Bush did.
10 MR.
STRUHS: We've got a short but exciting agenda
11 today.
12 GOVERNOR
BUSH: Do you want to describe what your
13 Department
does in short terms as well?
14 MR.
STRUHS: Yes, I can do that. We are
15 responsible,
as a Governor's agency, for a lot of the
16 regulatory
programs. They keep the water safe to drink,
17 safe
to swim in and the air clean and the land clean, and
18 where
it's dirty, we clean it up.
19 The
responsibilities we have though, in
20 terms
of managing estate lands, as an agency, we
21 report
to the Cabinet, sitting now as the Board of
22 Trustees,
and the agendas we bring forward here,
23 include
the acquisition of conservation land, the
24 surplussing
of lands that are no longer needed by
25 the
State, and then the management of those lands to
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STATE BOARD OF TRUSTEES, June 25, 2002
1 meet
our environmental and recreation objectives.
2 Florida
has the largest, by anybody's
3 definition,
program of any government in the world
4 in
terms of spending resources and acquiring
5 critical
conservation lands. These are lands that
6 not
just provide recreation, but are also critical
7 to
the long term protection and advancement of our
8 water
supply, so we're very proud of that, and I
9 think
as we go through the agenda, Governor, we can
10 actually
point out some specific examples along the
11 way.
12 I
might just do one thing though, if I
13 could,
before we get into the agenda, and that would
14 be
to thank all of the members of the Cabinet for
15 sending
your Cabinet aides last week to our
16 conference
on conservation easements. You will
17 recall
that some months ago, you directed us to
18 become
better equipped at using easements to meet
19 our
conservation objectives, while at the same time,
20 allowing
the property remaining in private ownership
21 and
keeping it on the tax rolls, which is good for
22 the
local community. It can be a win/win if we do
23 it
well.
24 What
we did is we hosted a national
25 conference,
and we truthfully exceeded our own
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STATE BOARD OF TRUSTEES, June 25, 2002
1 expectations.
Not only did you send all of your
2 cabinet
aides, but we had 26 other states send their
3 land
managers and land directors to Florida to
4 participate
in the conference.
5 We
had about 330 attendees from around the
6 country,
and I think we now have a far better grasp
7 of
all of the basics in terms of how to actually
8 better
utilize easements as a way of preserving the
9 public
interest that we need to protect, whether
10 it's
a flow-way or a vista or timber interests or
11 habitat
corridors, but still keeping the underlying
12 property
interest, wherever possible, in private
13 hands
and on the tax rolls, so we were delighted
14 with
that, and I wanted to give you that report and
15 that
thanks.
16 The
first agenda item is ministerial. It's
17 simply
to approve the minutes, and I would recommend
18 that.
19 GOVERNOR
BUSH: Do you?
20 MR.
STRUHS: We do.
21 GOVERNOR
BUSH: Is there a motion?
22 TREASURER
GALLAGHER: Motion.
23 GOVERNOR
BUSH: Second? Is there a second?
24 COMMISSIONER
BRONSON: Seconded.
25 GOVERNOR
BUSH: Moved and seconded. Without
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1 objection,
the item is approved.
2 Item
2, David.
3 MR.
STRUHS: The second item, we have combined
4 three
different actions because they are all related. The
5 first
is seeking your confirmation that the director of
6 our
office of Coastal & Aquatic Managed Areas, Katherine
7 Andrews,
would be our representative to work in
8 consultation
with the federal superintendent of the
9 Florida
Keys National Green Sanctuary for the oversight of
10 the
operations there, and Katherine is here. Would you
11 stand
please?
12 MS.
ANDREWS: (Indicating.)
13 MR.
STRUHS: So we're asking you to confirm her
14 designation
to that post. The second item is to seek your
15 delegation
of authority to the Department to approve the
16 use
of funds that we get from NOAA, the National Oceanic
17 Atmospheric
Administration, a federal agency, for
18 compensation
for injury to state resources within the
19 Florida
Keys or in sanctuary, and the third element is
20 again
a delegation issue.
21 We're
seeking the delegation of the
22 authority
for us to select alternative projects, not
23 to
exceed $50,000 for restoration and response
24 activities
to vessel groundings. The theme for all
25 three
of these items, what sort of ties them
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STATE BOARD OF TRUSTEES, June 25, 2002
1 together,
is that when there is damage to a coral
2 reef
ecosystem, the speed of your response is
3 critical
to your success in the end.
4 The
faster you can respond, the faster you
5 can
get your resources out there and do the repair
6 work,
the more likely you are to some have success,
7 and
these items are all aimed at just allowing us to
8 streamline
the process and to keep things moving
9 forward.
10 I
will remind you all that we will continue
11 to
provide you regular annual reports that document
12 all
of our decisions and all of our activities, and
13 we
would seek approval of this item. What I might
14 also
do though, just in terms of making this more
15 relevant,
not just to you, but I think also to the
16 attendees
here today, is ask you to turn to this
17 handout.
We'll go through it very quickly.
18 It's
a remarkable coincidence, really, that
19 this
agenda item is appearing on our meeting here in
20 Miami
at this point in time, because a lot of
21 interesting
things are coming together. It was
22 about
a dozen years ago that the Florida Keys
23 National
Marine Sanctuary was first created. It's
24 one
of only 13 in the country, and it is the home
25 for
over 6,000 different plant and fish species.
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STATE BOARD OF TRUSTEES, June 25, 2002
1 More
recently, we're just coming up on the
2 one
year anniversary. It was one year ago that
3 Governor
Bush and the Cabinet approved the creation
4 of
the Tortugas Ecological Reserve, which is an
5 addition
to the Keys Marine Sanctuary, expanding it
6 by
151 square miles. You actually approved that
7 back
in April, and that took effect July 1 of last
8 year,
so happy anniversary on that.
9 Again,
building on sort of all these things
10 fitting
together, just last week, it was reported by
11 the
National Academy of Sciences; in fact, it was
12 covered
in The Miami Herald locally here, that for
13 the
first time ever, scientists were able to link
14 the
condition known as white pox on elkhorn coral to
15 a
common bacteria that comes from human waste
16 disposal.
17 We
are in the process now of documenting the
18 loss
of coral reef, and elkhorn coral has been
19 reduced
in this area by about 85 percent, and we
20 now,
for the first time, really have good scientific
21 documentation
that a lot of that is the result of
22 fecal
materials from waste disposal that is causing
23 this
problem, and that was reported, like I said, on
24 Tuesday
of last week, and again, just to keep the
25 thing
going here, it was one day later on June 19,
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1 that
the Federal Environmental Protection Agency
2 approved
your request, Governor, to actually
3 designate
the Florida Keys as a no discharge zone
4 for
vessels.
5 It
was about a year and a half ago, you'll
6 remember,
that you wrote to Governor Whitman, who is
7 the
administrator of the EPA, and requested the
8 authority
to designate this as a no discharge zone
9 for
vessels operating in this marine sanctuary area,
10 and
we just got that approval one day after this
11 National
Academy report was released, so we were
12 delighted
with that, and this will be an important
13 step
forward in actually solving the problem, and
14 the
next question, of course, is: How do you
15 enforce
a no discharge zone for vessels? Isn't that
16 going
to be a fairly demanding task? And the answer
17 is
yes, but here again, all of the pieces are coming
18 together.
19 We
have now, with the new fiscal year that
20 we're
going to begin just next month, in addition,
21 of
10 new law enforcement officers on the water that
22 will
actually allow us to not just have the rules in
23 place,
but actually to make them effective.
24 We're
going from 7 enforcement officers to
25 17,
more than doubling the amount of law enforcement
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1 on
the water, not just to provide aid and assistance
2 to
boaters, but also to make sure, in fact, that
3 they're
following these rules, which we now
4 understand
are critical to the preservation of the
5 ecosystem.
6 The
last page, while I stand here and might
7 appear
to be taking a lot of credit for this, I want
8 it
to be very clear that the credit is shared with a
9 lot
of different partners, including our partners in
10 the
federal government, and we're delighted that
11 Billy
Causey is here, who is the superintendent of
12 the
Sanctuary, and if you would just join us for a
13 minute,
he also would like to speak just for a
14 couple
minutes about some of the good work they're
15 doing
right here in South Florida to protect this
16 unique
ecosystem.
17 MR.
CAUSEY: Thank you very much, Mr. Secretary and
18 Governor,
and Honorable Cabinet: Thank you very much for
19 having
us today. I am Billy Causey; I'm the
20 superintendent
of the Florida Keys National Sanctuary, and
21 I'm
an employee of the US Department of Commerce, and
22 specifically,
the National Oceanic Atmospheric
23 Administration.
24 The
State of Florida continues to show
25 enormous
leadership in areas like the Florida Keys
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1 where
we have had a state and federal partnership
2 that
goes back to 1980 when we managed the Key Largo
3 and
the Luken National Sanctuaries between the State
4 of
Florida and the federal government, and in 1990,
5 Governor
Bush, when your father signed the Act that
6 designated
the Florida Keys National Sanctuary, we
7 expanded
this partnership to enormous levels, and
8 currently,
over two-thirds of our team in the
9 sanctuary
are either in the Department of
10 Environmental
Protection or in the Fish & Wildlife
11 Conservation
Commission who do the enforcement for
12 the
sanctuary. Also, the Coast Guard and NOAA's
13 office
of law enforcement do some of the
14 enforcement.
15 Another
handout that's in your packet are a
16 series
of photographs that show vessel groundings.
17 Last
year, we had 612 vessel groundings in the
18 Florida
Keys that were damaging various resources,
19 but
when those vessels run aground on sea grasses or
20 on
coral reefs, they destroy critical habitat that's
21 so
important to the economy and to the environment
22 of
the Florida Keys and to South Florida, and
23 through
the partnership with the Department of
24 Environmental
Protection, we have developed
25 innovative
processes for coming in with the team of
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1 experts
to not only assess the injury to the
2 resources
but to also come up with restoration plans
3 and
to essentially put those resources back together
4 again,
and it has been a tremendous innovative step,
5 and
people around the globe are watching what we're
6 doing.
7 What
we would be able to do with funds that
8 come
in from these groundings is to take and respond
9 very
quickly to a grounding and put it all back
10 together
like piecing Humpty-Dumpty back together,
11 and
the resources will continue to thrive, and so
12 these
innovative practices are things that we can
13 all
share and celebrate, but I would encourage you,
14 if
you get a chance, to look at this packet of
15 groundings,
and you'll see what we're working with.
16 GOVERNOR
BUSH: Thank you, Billy.
17 MR.
CAUSEY: Thank you.
18 GOVERNOR
BUSH: We appreciate all you do. Can we
19 get
a motion with a second on item 2?
20 COMMISSIONER
BRONSON: Motion.
21 TREASURER
GALLAGHER: Seconded.
22 GOVERNOR
BUSH: Moved and seconded. Without
23 objection,
the item passes.
24 MR.
STRUHS: Item 3, we're recommending the
25 approval
of an option agreement to require 72 1/2 acres
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1 adjoining
the Apalachicola Wildlife & Environmental area.
2 This
is land that would add to and then be managed by the
3 Florida
Fish & Wildlife Conservation Commission. We're
4 delighted
to report that the acquisition is at 86 percent
5 of
the approved value.
6 GOVERNOR
BUSH: Motion on 3?
7 TREASURER
GALLAGHER: Motion.
8 COMMISSIONER
BRONSON: Seconded.
9 GOVERNOR
BUSH: Moved and seconded. Without
10 objection,
it's approved.
11 Item
4?
12 MR.
STRUHS: Item 4, I think, is another good
13 example
of trying to find the best value for the public's
14 dollars;
an option agreement to require 952 acres on a
15 greenway
on the Trails project at 83 percent of the
16 approved
value, and this is an interesting public/private
17 partnership
where the Conservation Trust of Florida will
18 actually
be doing a lot of the work for us in terms of
19 maintenance
of this property? Recommend approval of that
20 item
as well.
21 TREASURER
GALLAGHER: Motion.
22 COMMISSIONER
BRONSON: Second.
23 GOVERNOR
BUSH: Moved and seconded. Without
24 objection,
the item is passed.
25 MR.
STRUHS: Item 5 is an option agreement to
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STATE BOARD OF TRUSTEES, June 25, 2002
1 acquire
a perpetual conservation easement, something we
2 just
talked about earlier. Over 667 acres, within the
3 green
swamp area of critical state concern. As you know,
4 the
green swamp area is an area that is the head waters to
5 a
number of our major water resources and has been a
6 longstanding
priority of the state for protection.
7 TREASURER
GALLAGHER: Motion.
8 COMMISSIONER
BRONSON: Second.
9 GOVERNOR
BUSH: With the price so high?
10 MR.
STRUHS: Well, you know, what happens is when
11 we
bring in some of these that are in the low 80s, and
12 when
we see something in the low 90s, it's ---
13 GOVERNOR
BUSH: This is a conservation easement
14 though,
not a ---
15 MR.
STRUHS: Well, it's in the approved value of
16 the
easement, sir.
17 GOVERNOR
BUSH: Okay.
18 MR.
STRUHS: Yes.
19 GOVERNOR
BUSH: Thank you.
20 MR.
STRUHS: Not the underlying property value.
21 TREASURER
GALLAGHER: Motion.
22 GOVERNOR
BUSH: All right. There's a motion.
23 Second?
24 COMMISSIONER
BRONSON: Second.
25 GOVERNOR
BUSH: There's a motion to second. The
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1 item
passes without objection.
2 MR.
STRUHS: In fact, I can tell you, I forgot a
3 crib
note here: If you wanted to do this in percentage
4 terms,
to the basis value, it's 56 percent.
5 GOVERNOR
BUSH: Thank you.
6 MR.
STRUHS: Item 6, our final agenda item, is a
7 sort
of a housekeeping issue. It's conveying .11 acre,
8 more
or less, to the Collier County School Board to
9 resolve
some delineation issues and allows them to improve
10 a
road and not put the title in jeopardy to the new school
11 building
that they're constructing.
12 TREASURER
GALLAGHER: Motion on 6.
13 COMMISSIONER
BRONSON: Seconded.
14 MR.
STRUHS: Good item, and we recommend approval.
15 GOVERNOR
BUSH: Moved and seconded. Without
16 objection,
the item passes.
17 MR.
STRUHS: Thank you very much.
18 GOVERNOR
BUSH: Thank you all. That's it. Thank
19 you
all very much for hosting us.
20 (Thereupon,
the meeting was concluded at
21 11:27
a.m.)
22
23
24
25
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1
HEARING CERTIFICATE
2 STATE OF FLORIDA )
3 )SS:
4 COUNTY
OF MIAMI-DADE)
5
6 I,
JANET MARIE WILLITZ, RPR, RMR, certify that I
7 was
authorized and did stenographically report the
8 foregoing
proceedings and that this transcript is a true
9 record
of the proceedings before the Governor and the
10 Cabinet.
11 I
further certify that I am not a relative,
12 employee,
attorney, or counsel for any of the parties nor
13 am
I a relative or employee of any of the parties'
14 attorney
or counsel connected with the action, nor am I
15 financially
interested in the action.
16
Dated this 5th day of July, 2002.
17
18
______________________________
19 JANET MARIE WILLITZ, RPR, RMR
20
21
22
23
24
25
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