The Governor and Cabinet - Florida Department of State

THE CABINET

STATE OF FLORIDA

_____________________________________________________

Representing:
DIVISION OF BOND FINANCE
DEPARTMENT OF REVENUE
DEPARTMENT OF VETERANS' AFFAIRS
DEPARTMENT OF LAW ENFORCEMENT
POWER PLANT SITING BOARD
BOT OF THE INTERNAL IMPROVEMENT TRUST FUND
STATE BOARD OF ADMINISTRATION

                         The above agencies came to be heard before
               THE FLORIDA CABINET, Honorable Governor Bush presiding, in the
               Cabinet Meeting Room, LL-03, The Capitol, Tallahassee, Florida,
               on the 25th day of May, 2004, commencing at approximately
               9:30 a.m.

Reported by:

KRISTEN L. BENTLEY
Certified Court Reporter

                             ACCURATE STENOTYPE REPORTERS, INC.
                                  2894 REMINGTON GREEN LANE
                           TALLAHASSEE, FL 32308   (850)878-2221

APPEARANCES:

Representing the Florida Cabinet:

JEB BUSH
Governor

CHARLES H. BRONSON
Commissioner of Agriculture

CHARLIE CRIST
Attorney General

TOM GALLAGHER
Chief Financial Officer

* * *

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I N D E X

DIVISION OF BOND FINANCE
(Presented by BEN WATKINS)

               ITEM                  ACTION                 PAGE
               1                     Approved               5
               2                     Approved               5
               3                     Approved               6

DEPARTMENT OF REVENUE
(Presented by JAMES ZINGALE)

ITEM ACTION PAGE

1 Approved 7
2 Approved 8

DEPARTMENT OF VETERANS' AFFAIRS
(Presented by ROCKY McPHERSON)

ITEM ACTION PAGE

               1                     Approved               9
               2                     Approved               9
               3                     Approved               11

DEPARTMENT OF LAW ENFORCEMENT
(Presented by GUY TUNNELL)

ITEM ACTION PAGE

               1                     Approved               21
               2                     Approved               25
               3                     Approved               25

POWER PLANT SITING BOARD
(Presented by COLLEEN CASTILLE)

ITEM ACTION PAGE

1 Approved 26
2 Approved 26

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BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND
(Presented by COLLEEN CASTILLE)

ITEM ACTION PAGE

               1                     Approved               27
               2                     Approved               28
               3                     Approved               32

STATE BOARD OF ADMINISTRATION
(Presented by COLEMAN STIPANOVICH)

ITEM ACTION PAGE

               1                     Approved               34
               2                     Approved               34
               3                     Approved               34

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                     DIVISION OF BOND FINANCE - MAY 25, 2004
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1 PROCEEDINGS

2 GOVERNOR BUSH: The next cabinet meeting will be

3 Thursday, June 24th, 2004.

4 COMMISSIONER BRONSON: Everyone should bring sleeping

5 bags and a pillow.

6 GOVERNOR BUSH: Exactly. Bring your sleeping bags.

7 We're going for the record.

8 Division of Bond Finance.

9 MR. WATKINS: Good morning, Governor. Item No. 1 is

10 minutes from the April 13th meeting.

11 GOVERNOR BUSH: Is there a motion?

12 GENERAL CRIST: Motion.

13 COMMISSIONER BRONSON: Second.

14 GOVERNOR BUSH: Moved and seconded. Without

15 objection, the item passes.

16 Item 2.

17 MR. WATKINS: Item No. 2 is a resolution authorizing

18 the issuance of up to $21,495,000 of capital outlay bonds

19 for the State Board of Education for school construction

20 for local school districts.

21 CFO GALLAGHER: Motion on 2.

22 GENERAL CRIST: Second.

23 GOVERNOR BUSH: Moved and seconded. Without

24 objection, the item passes.

25 MR. WATKINS: And Item No. 3 is a resolution

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                     DIVISION OF BOND FINANCE - MAY 25, 2004
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1 authorizing the issuance of up to $13,550,000 of parking

2 facility revenue bonds for the University of Central

3 Florida.

4 CFO GALLAGHER: Motion.

5 GENERAL CRIST: Second.

6 GOVERNOR BUSH: Moved and seconded. Without

7 objection, the item passes.

8 MR. WATKINS: Thank you.

9 GOVERNOR BUSH: Under construction forever, UCF.

10 CFO GALLAGHER: They all are. You go to a university

11 and show me where there's no construction.

12 GOVERNOR BUSH: I know.

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                       DEPARTMENT OF REVENUE - May 25, 2004
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1 GOVERNOR BUSH: Dr. Z.

2 CFO GALLAGHER: Motion on the minutes.

3 GENERAL CRIST: Second.

4 GOVERNOR BUSH: Moved and seconded. Without

5 objection, the item passes. Item 2.

6 MR. ZINGALE: The second item is a proposed rule that

7 clarifies and simplifies the procedure by which a public

8 organization may use its tax exemption certificate to

9 exempt from sales tax materials used in public

10 construction projects. It's had a pretty lengthy history,

11 a lot of debate, and the statute has been on the books

12 since '59. If you have any questions now, I'd be glad to

13 answer them. If not, request approval.

14 GOVERNOR BUSH: Any discussion?

15 COMMISSIONER BRONSON: Governor, if I could, I'd like

16 to get something clear, make sure I've got the right

17 terminology here. If construction materials are used in a

18 public building that is paid for by tax dollars, that

19 material that is put in that building and is going to stay

20 on the property is not taxed; is that correct?

21 MR. ZINGALE: That is correct. But there is two ways

22 of acquiring that material. If you acquire the material

23 and say this is a PECO school building that's being

24 acquired, the procedure and the statute requires that

25 those materials be separated from the contractor and

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                       DEPARTMENT OF REVENUE - May 25, 2004
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1 acquired by the public entity. If it's embedded in the

2 contract, and that's why there's been a lot of debate, if

3 it's embedded in the contract, okay, then sales tax will

4 be paid by the contractor and embedded in the price.

5 The procedure that's been on the books since '59 is

6 very cumbersome. We've attempted to make it as easy as

7 possible for that public entity to go in and acquire the

8 materials separately so they can be exempt from the

9 taxation. The federal government pays the tax. So

10 there's a big ticket item on the other end if we try to

11 appeal it. Most of the money that we're receiving from it

12 today is from the federal government in that they

13 typically roll it always into their contracts. So this is

14 simply a procedure trying to allow that public entity to

15 make it easier for them to apply for this exemption and

16 get it.

17 GENERAL CRIST: Motion.

18 CFO GALLAGHER: Second.

19 GOVERNOR BUSH: Moved and seconded. Without

20 objection, the item passes. Thank you, Jim.

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
                                                                           9

1 GOVERNOR BUSH: Department of Veterans' Affairs.

2 GENERAL CRIST: Motion.

3 CFO GALLAGHER: Second.

4 MR. McPHERSON: Good morning again, Governor. Item 1

5 is our minutes.

6 GOVERNOR BUSH: There's a motion and a second.

7 Without objection, the item passes.

8 MR. McPHERSON: Item 2 today, sir, is the request for

9 the authority to commence rulemaking on two rules that the

10 Department concerns. One is veterans' preference law to

11 construct the rules for implementation of Florida Statute

12 governing veterans' preference. We'll move through that

13 process.

14 And then the second rule is a rule that we want to

15 conduct that will standardize the admissions process and

16 remove some documentations that currently require

17 certified documents when there is no need for that. We

18 can get the certification of veterans' status

19 electronically from the VA without having to provide

20 certified documents for admissions to one of our

21 facilities.

22 CFO GALLAGHER: Motion on 2.

23 COMMISSIONER BRONSON: Second.

24 GOVERNOR BUSH: Moved and seconded. Without

25 objection, the item passes.

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
                                                                          10

1 MR. McPHERSON: Item 3, sir, is a submission for

2 approval of a study that was conducted by the Department

3 regarding the siting of the next state veterans' nursing

4 home. We contracted Health Strategies, Incorporated to

5 review 12 different areas of the state and rank them

6 according to a set of criteria developed to identify where

7 we ought to go and place the next nursing home sites. The

8 recommendations include northeast Florida, central

9 Florida, and the Brevard County area as primary sites.

10 And then two secondary sites in the northwest and the

11 Treasure Coast down the road.

12 So as we proceed through building new nursing homes,

13 we now have a very good, solid document that identifies

14 the veterans' populations and the need in various areas of

15 the state. Requesting approval of the study and approval

16 of the fact that the Duval, Baker, Nassau County area is

17 the area that was most suited and most in need of the next

18 state veterans' nursing home.

19 CFO GALLAGHER: Motion on 3.

20 COMMISSIONER BRONSON: Second.

21 GOVERNOR BUSH: Mayor Wibbs (phonetic), do you have

22 any comment on that? I'm just joking.

23 MR. McPHERSON: He would like to see one in

24 Pensacola, sir, and that's down the list.

25 GOVERNOR BUSH: That's why he's mayor emeritus. If

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 he didn't abdicate, they would take his title away.

2 MR. McPHERSON: Yes, sir.

3 (Laughter.)

4 GOVERNOR BUSH: Any discussion? This is a thoughtful

5 review that yielded, I think, the proper result. Now the

6 question is, Can we get the Legislature to fund --

7 MR. McPHERSON: We are already working on that for

8 next year, sir.

9 GOVERNOR BUSH: There is a motion and a second.

10 Without objection, the item passes.

11 MR. McPHERSON: Item 4, sir, is an update on the

12 Florida World War II memorial. As you know, when we

13 created the Florida World War II memorial concept, it has

14 five components. And first of those components was the

15 permanent museum exhibit in the Florida Museum of History

16 and that, of course, was dedicated 2001, on December the

17 7th. And that evolution is progressing and there is some

18 continuous work being done on that by the Department of

19 State.

20 Other components include a Web site for World War II

21 resources to allow students to get there and of course the

22 monument that we're working on. But there are two other

23 elements. The first of those elements is a heritage trail

24 series booklet. And I'd like to have the honor of

25 introducing Secretary of State, Glenda Hood. Her

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 department has done a tremendous amount of superb work on

2 this portion of the project.

3 GOVERNOR BUSH: Good morning, Secretary.

4 SECRETARY HOOD: Good morning, how are you?

5 GOVERNOR BUSH: Doing well.

6 SECRETARY HOOD: Good. Good morning cabinet members

7 as well. I'm very pleased that the Department of State

8 has been able to partner with the Department of Veterans'

9 Affairs on the World War II memorial project, since its

10 inception in fact. And as the secretary said, we have

11 several elements that come under our part of the

12 partnership. One of them is the World War II exhibit,

13 Florida Remembers World War II. I'm sure all of you knew

14 that that travelled around the state. It documents the

15 State's response to the war including patriotic activities

16 on the home front, the establishment of military training

17 bases throughout the state and a variety of other things.

18 The Web site is a catalog of historical resources

19 related to World War II in Florida. And then, as Rocky

20 said, the Heritage Trail Guidebook, which is actually at

21 the printers as we speak, and our Division of Historical

22 Resources has developed this, is something that I believe

23 all of you are going to be very, very proud of.

24 I think we're going to turn the poster around right

25 now and I'm going to talk about it first. I'm going to go

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 a little bit out of order from my notes here. As I said,

2 our Division of Historical Resources has developed this

3 Florida Heritage Trail Guidebook and it features over 150

4 sites statewide that represent Florida's involvement in

5 World War II. And these copies are going to be

6 distributed with school curriculum materials and through

7 public libraries statewide so that everybody is exposed

8 today it.

9 And I will say that in the guide book, on Page 52, I

10 think the Governor might be especially interested in

11 Page 52. There is a picture of a very distinguished past

12 president of our country, George Herbert Walker Bush, and

13 talks about the flight training that President Bush did in

14 Fort Lauderdale. So if you'll look up on the screen,

15 you'll see a familiar face or at least --

16 GOVERNOR BUSH: He hadn't started shaving yet. He

17 didn't start shaving until he was about 19.

18 CFO GALLAGHER: He joined up young.

19 SECRETARY HOOD: So that's the Heritage Trail

20 Guidebook and this is a rendering of the cover. Two other

21 things I'd like to note. When we talk about the museum

22 exhibit, one of the things we're very excited about is the

23 donation of a significant group of Tuskeegee airmen,

24 personal military items to the Museum of Florida History.

25 And the items belong to Lieutenant James L. Polkinghorn,

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 Jr., who is a native of Pensacola who attended Florida A&M

2 University and trained with the Tuskeegee airmen. And

3 with us today, is the great nephew of James Polkinghorn

4 who is a graduate student at Florida A&M, Geovania Flag

5 (phonetic) and I'd like to ask him to stand and thank he

6 and his family for those donations to the museum.

7 (Applause.)

8 And then just on the Web site again, so that

9 everybody in the state can access this, it is a statewide

10 network of World War II resources, features military

11 installations, veterans' organizations, historic sites,

12 museums, libraries, universities, historical societies,

13 and it's all made accessible to the public through the

14 Internet on this site. So, again, we're very pleased to

15 be a partner with the Division of Veterans' Affairs -- the

16 Department of Veterans' Affairs. And we're very excited

17 about dedicating this monument on Veteran's Day and

18 welcoming people to the RA Gray site so that they can

19 appreciate and value the service of our women and men in

20 the military during World War II. Thank you so much.

21 GOVERNOR BUSH: Thank you, Secretary.

22 MR. McPHERSON: Thank you, Secretary Hood. Governor,

23 I'd like to add that Secretary Hood and her staff from the

24 very beginning, way back when we were planning the museum,

25 they have been superb and are terrific partners. They are

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 doing wondrous things there in honoring our veterans.

2 Thank you.

3 We have one final element this morning, sir, and that

4 is the fifth element of this memorial project is an

5 educational curriculum for high school students. It's a

6 supplement for World War II educational courses in our

7 high schools in the 11th grade. We received a grant from

8 the Department of Education for $200,000 and the Mary

9 Brogan Museum has undertaken the project to develop a set

10 of CDs. And I'd like to introduce Cynthia Hollis of the

11 Mary Brogan Museum of Art and Science who was the project

12 director for this component of the memorial.

13 GOVERNOR BUSH: Good morning.

14 MS. HOLLIS: Good morning, Governor Bush, members of

15 the cabinet. I'd like to just take a minute and explain

16 what this is. You will be getting copies of this. It's

17 currently under production now so we have made these

18 especially for this meeting. But we will send you what we

19 consider the real copies when we get them in about a week.

20 These are resources that will be used by high school

21 teachers and also they could be used by middle school

22 teachers because they also cover American history in

23 middle school as well.

24 They are a set of, it includes two CDs and a DVD.

25 The CDs have 12 module topics on them and they include

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 things like, The Life of the GI, America at War, Ideology,

2 Florida at War. And all of these have subtopics that

3 include Web sites and bibliographies, photographs,

4 documents from the archives. And original sources, many

5 of which have never been seen before. So these will be a

6 wonderful resource for high school history teachers in the

7 state of Florida.

8 We also are going to be having a Web site that will

9 be linked to the Florida History Museum Web site that will

10 include these resources as well. We'd like to show you

11 some of these if you have a little bit of time. We'd like

12 to just go through this and show you. You navigate this

13 just like you would a Web site. So I have our tech guy

14 here because I can't talk and do this at the same time.

15 But I just want to show you. When you open it up, it

16 looks just like a Web site.

17 Okay. Are we doing it? (Pause.) Okay. While

18 they're getting this ready, we're going to be distributing

19 this to all 67 county media centers in the state of

20 Florida and we'll also be teaching ten workshops across

21 the state of Florida in the month of June. And, let's

22 see. Oh, there's actually been discussion about doing

23 further workshops potentially for colleges and

24 universities because it is a tremendous resource, as

25 you'll see when we get it opened up here. Many of these

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 photos and documents and letters, I believe you have. We

2 distributed copies of these up here. And they're

3 wonderful letters, many of which have never been seen by

4 the public because they're in the FSU World War II

5 archive.

6 Okay. I don't know if we're going to get it open

7 here or not. (Pause.) Here it goes. Okay. So when you

8 open it up, you see it has an introduction. And the

9 introduction actually is by Rocky McPherson from Veterans'

10 Affairs. We'll just go ahead. So let's go back to the

11 table of contents. It also has a table of contents which

12 includes the modules and there is six on each CD.

13 We have acknowledgments. We have a message from

14 Secretary Hood on there that describes the Florida History

15 Museum exhibit and encourages people to come visit that.

16 And then if you want to have a veteran visit your school,

17 there is place that you can go and find out that

18 information as well. Let's just go into the table of

19 contents really quickly and let's look at the life of the

20 soldier.

21 You also were given a printed printout of just the

22 first one here, the life of the soldier, the introduction.

23 But under each one of these, there are images and some

24 video. So let's look at some of the images here. And

25 these are archive images and with archival descriptions

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 underneath them. And so, as you see, there is many, many

2 images and it deals with many, many topics. And

3 considering the limited resources that teachers currently

4 have in their textbooks to teach about World War II, this

5 is an incredible resource that we've developed that we

6 hope can actually be distributed more widely to

7 potentially the colleges and universities. And there was

8 also some discussion at Veterans' Affairs about

9 distributing these to other states at well.

10 Okay. Well, thank you very much.

11 GOVERNOR BUSH: That's nice.

12 MS. HOLLIS: Thanks. I hope you enjoy it.

13 GOVERNOR BUSH: Thank you very much.

14 MR. McPHERSON: Governor, that concludes it this

15 morning. We now -- this, with the delivery of these two

16 items and of course the booklets are at the printers and

17 these are being manufactured as we speak, we'll have

18 completed four of the five elements of the memorial. Our

19 last one, of course, is the construction and dedication of

20 the monument. And over the summer and the fall, that will

21 be our department's primary project.

22 GOVERNOR BUSH: Give me just a quick update on that.

23 MR. McPHERSON: The monument itself, sir, is just

24 completing the design stage. And we're also finishing a

25 final element of a fundraising effort that's going to

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 happen on June the 19th. And that will allow us to gain

2 the resources. We are doing a dinner in conjunction with

3 the Medal of Honor Society and our department. And thank

4 you, sir, for agreeing to attend and be our honored guest

5 that evening. We are --

6 GOVERNOR BUSH: I'm not being honored. I'm helping

7 raise the money, right?

8 MR. McPHERSON: Yes, you are. And that helps an

9 awful lot.

10 GOVERNOR BUSH: That was part of the deal. I don't

11 like getting honored.

12 MR. McPHERSON: I know that, sir.

13 GOVERNOR BUSH: Particularly, with the Medal of

14 Honor, I mean, that would be the most ridiculous thing in

15 the world. They're going --

16 MR. McPHERSON: This is -- yes, sir. But that

17 particular dinner should allow us to generate the final

18 funds needed and then we'll be looking to sign the

19 contract in early July. Construction process of the

20 monument is about three and a half months. Should be

21 completed in October. And then, of course, with the

22 Department of State working on an event on November the

23 11th, Thursday, November 11th, Veteran's Day, to dedicate

24 the final element of this memorial.

25 GOVERNOR BUSH: That's what I wanted to hear.

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                  DEPARTMENT OF VETERANS' AFFAIRS - MAY 25, 2004
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1 MR. McPHERSON: Thank you, sir.

2 GOVERNOR BUSH: Thank you.

3 MR. McPHERSON: That's it for today, sir. Thank you.

4 GOVERNOR BUSH: Thank you.

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                   DEPARTMENT OF LAW ENFORCEMENT - MAY 25, 2004
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1 GOVERNOR BUSH: Department of Law Enforcement.

2 CFO GALLAGHER: Motion on the minutes.

3 GENERAL CRIST: Second.

4 GOVERNOR BUSH: There's a motion on Item 1 and a

5 second. Without objection, the item passes.

6 You're looking sharp there, Commish.

7 MR. TUNNELL: Good morning. Thank you, Governor.

8 GOVERNOR BUSH: Nice suit.

9 MR. TUNNELL: You too. My wife dresses me well. The

10 treasurer and I got the word about the uniform of the day

11 today.

12 CFO GALLAGHER: With wives like ours, we can look

13 good, can't we?

14 MR. TUNNELL: There you go. Yes, sir. And I need

15 all the help I can get. Well, we had three items on the

16 agenda, now we're down to two. Thank you for handling

17 No. 1 so quickly for us.

18 Item No. 2, we respectfully submit for approval

19 FDLE's third quarter performance report in our contracts,

20 purchases and agreements over $100,000 for the period of

21 January 1 through March 31st, 2004. We're pleased with

22 our progress this year. And with your indulgence, I'd

23 like to make mention in particular of the good work going

24 on in our crime labs. We've handled over 61,000 service

25 requests year to date and we're turning those results back

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                   DEPARTMENT OF LAW ENFORCEMENT - MAY 25, 2004
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1 to law enforcement very quickly. We're at or below

2 turnaround times in seven of our nine crime lab

3 disciplines. And through federal grant dollars, we're

4 able to continue to help maximize our returns in a very

5 important area, that being serology and DNA.

6 As you know, we've seen a tremendous increase in

7 demand in this particular area and outsourcing has helped

8 us reduce the backlog of these cases by some 50 percent.

9 As these outsourced cases are returned to us, they are run

10 against the DNA database that we have currently and we

11 have, through this outsourcing, we've been able to clear

12 roughly 35 percent or have gotten hits on roughly

13 35 percent of these cases. These hits, of course,

14 translate into cases solved as they match the DNA from

15 crime scenes to known offender samples in the State's DNA

16 crime base.

17 I'm also happy to share with you good news that

18 earlier this week we received notice of an additional

19 $3.3 million dollars in federal funding to help further in

20 our DNA casework. Through this grant, it will provide

21 more dollars for outsourcing. And unlike, year to date,

22 the funding we receive from the federal government, it

23 does not limit the type of DNA cases that we outsource.

24 So we can use these dollars to outsource cases in which we

25 have a suspect. Yes, sir.

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                   DEPARTMENT OF LAW ENFORCEMENT - MAY 25, 2004
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1 CFO GALLAGHER: I have a question. I know that last

2 year when we were doing this quarterly report, that was an

3 area that truly we had a huge backlog in DNA.

4 MR. TUNNELL: Yes, sir.

5 CFO GALLAGHER: I see that the goal this past year

6 was to do 30,000, that's the goal for next year. We did

7 28,000. That's a huge number. If -- those other 2,000

8 could be pretty important. You're talking about

9 contracting out. Tell me how that works.

10 MR. TUNNELL: Well, we contract out to various

11 private labs that are certified. They have to meet a

12 certain standard, of course, in order for us to outsource.

13 The problem we're looking at now, Treasurer, is the fact

14 that so many of these other labs are also overwhelmed by

15 the caseload and we're kind of limited this year on what

16 else we can do. So we're hoping through rebidding this

17 next year we'll be able to draw more interest from some of

18 these private, certified labs.

19 CFO GALLAGHER: So that's a good business to get in,

20 the DNA testing?

21 MR. TUNNELL: Apparently so. Not for me. I'm not

22 that technically sound. But it is a very lucrative

23 business, I think, right now.

24 CFO GALLAGHER: And do you think we're going to start

25 staying abreast of these over this next year?

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                   DEPARTMENT OF LAW ENFORCEMENT - MAY 25, 2004
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1 MR. TUNNELL: We certainly hope so. Yes, sir. As

2 with all State government, we're having trouble retaining

3 some of our folks with the competition from private

4 industry and that's one of the issues. We're constantly

5 in a training mode for some of our technicians and

6 analysts. But we hope to be able to get caught up.

7 CFO GALLAGHER: How many labs do you do DNA in in

8 Florida? Just up here in Tallahassee, or all of them?

9 MR. TUNNELL: We've got -- I'm not sure.

10 GOVERNOR BUSH: More than one though.

11 MR. TUNNELL: Yes. Yes, sir. Tallahassee --

12 CFO GALLAGHER: Yeah, but I didn't know if you do DNA

13 in all of them or not.

14 MR. TUNNELL: Not in all of them. But I think there

15 are two or three that we do if I'm not mistaken.

16 CFO GALLAGHER: How about in Miami or Tampa? Tampa

17 and Miami for sure we hear, okay, and Tallahassee. We

18 know you do it here. Okay.

19 MR. TUNNELL: Any other questions on that? While we

20 know there is still a lot of work to do in this area,

21 we're very pleased with the progress we've been able to

22 make and we continue to look at ways to better improve our

23 services back to law enforcement as we get these requests.

24 And that's the end of Item 2.

25 GOVERNOR BUSH: Is there a motion?

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                   DEPARTMENT OF LAW ENFORCEMENT - MAY 25, 2004
                                                                          25

1 GENERAL CRIST: Motion.

2 COMMISSIONER BRONSON: Second.

3 GOVERNOR BUSH: Moved and seconded. Without

4 objection, the item passes.

5 MR. TUNNELL: Thank you. Item No. 3, we respectfully

6 submit for approval FDLE's performance contract for fiscal

7 year 2004, 2005.

8 CFO GALLAGHER: Motion on 3.

9 GENERAL CRIST: Second.

10 GOVERNOR BUSH: Moved and seconded. Without

11 objection, the item passes. Thank you, Guy.

12 MR. TUNNELL: Thank you very much.

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                     POWER PLANT SITING BOARD - MAY 25, 2004
                                                                          26

1 GOVERNOR BUSH: Siting Board. Secretary Castille.

2 CFO GALLAGHER: Motion on the minutes.

3 GENERAL CRIST: Second.

4 GOVERNOR BUSH: Moved and seconded. Without

5 objection, the item passes.

6 Item 2.

7 MS. CASTILLE: Item 2 is withdrawn.

8 CFO GALLAGHER: Motion to withdraw Item 2.

9 COMMISSIONER BRONSON: Second.

10 GOVERNOR BUSH: Motion to withdraw Item 2 and second.

11 Without objection, the item is withdrawn.

12 MS. CASTILLE: That concludes Power Plant Siting.

13 GOVERNOR BUSH: Thank you.

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                         BOARD OF TRUSTEES - MAY 25, 2004
                                                                          27

1 GOVERNOR BUSH: Board of Trustees.

2 MS. CASTILLE: Minutes from the meeting of March 9th.

3 GENERAL CRIST: Motion on the minutes.

4 CFO GALLAGHER: Second.

5 GOVERNOR BUSH: Moved and seconded. Without

6 objection, the item passes.

7 Item 2.

8 MS. CASTILLE: Item 2 is consideration of two option

9 agreements to acquire 406 acres within the Tomoka State

10 Park additions and inholdings project from the Trust for

11 Public Land. This acquisition involves two parcels in the

12 Mission Pines parcel and the Tall Pines parcel. The

13 Mission Pines parcel is being acquired for 1,048,000.

14 Approximate value per acre is $4,629. And the Tall Pines

15 parcel is being acquired for $2.2 million, approximately

16 12,000 an acre. The difference in the per acre value is

17 attributable to the percentage of wetlands in the Mission

18 Pines versus the Tall Pines tract.

19 The tract you see before you will be acquired to be

20 managed by DEP's Division of Recreation and Parks as a

21 part of Tomoka State Park. It's a huge win for the

22 citizens of Florida as another step towards preserving the

23 greenway corridor in northeast Florida. The plantation

24 ruins that have been discovered on the Mission Pines tract

25 include ruins of a residence and the foundation of a

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                         BOARD OF TRUSTEES - MAY 25, 2004
                                                                          28

1 kitchen. It is expected that further surveys will turn up

2 more plantation ruins. Another view of the Tall Pines

3 tract. Do we have a motion?

4 CFO GALLAGHER: Motion on 2.

5 GENERAL CRIST: Second.

6 GOVERNOR BUSH: Moved and seconded. Without

7 objection, the item passes.

8 MS. CASTILLE: Item 3. Item 3 is a consideration of

9 the delegation of authority to the secretary of DEP or my

10 designee to accomplish an acquisition through negotiation

11 or condemnation and include authority to prepare and

12 execute the necessary parcel-specific condemnation

13 resolution.

14 Secondly, a waiver of the Board of Trustees' eminent

15 domain policy allowing for homestead to be acquired

16 without owner approval. And, third, direction to DEP to

17 acquire a fee simple interest via eminent domain in the

18 event that negotiations do not result in an agreement.

19 Item 4 -- and there's also a fourth request that we

20 be given time to consider -- to continue negotiations with

21 Mr. Hardy and that we absolutely could not take any

22 eminent domain action prior to June 25th and no later than

23 August 31st of this year.

24 CFO GALLAGHER: Governor, based on the letter to Eva

25 Armstrong from Gregory Ricks, (phonetic) Esquire, of

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                         BOARD OF TRUSTEES - MAY 25, 2004
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1 Brigham Moore where he's confirming that based on his

2 conversation -- he is an attorney obviously -- on his

3 conversation with S.W. Moore, Esquire and Jesse Hardy that

4 he's been asked to represent to the Governor and Cabinet

5 their concurrence with the direction sought by DEP and

6 outlined above in the agenda that we've been provided

7 today, I'll move Item 3.

8 GENERAL CRIST: Second.

9 GOVERNOR BUSH: There's a motion and a second. Any

10 discussion?

11 COMMISSIONER BRONSON: Question.

12 GOVERNOR BUSH: Yes.

13 COMMISSIONER BRONSON: Madam Secretary, I just -- I

14 want to make sure of the process here. Now if you do

15 decide because of this request to go into --

16 MS. CASTILLE: Eminent domain.

17 COMMISSIONER BRONSON: -- right, eminent domain

18 procedures, now, should there be any circumstances that

19 pop out of that that seems to be egregious to Mr. Hardy's

20 party, they have the ability to come back to the Board

21 should that happen, right? I mean, we're not giving up

22 any --

23 MS. CASTILLE: We do. And I will -- I want to assure

24 you that we will do that. As it stands right now --

25 GOVERNOR BUSH: Colleen, he was asking if Mr. Hardy

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                         BOARD OF TRUSTEES - MAY 25, 2004
                                                                          30

1 has the right to stop it if --

2 COMMISSIONER BRONSON: Assuming that he feels and the

3 attorneys for Mr. Hardy feel that this didn't work out

4 like they thought it was going to, they do have the

5 ability to turn around and come back to the Board?

6 MS. CASTILLE: We would accept that. That is not

7 what the plan is. The plan is to go forward with eminent

8 domain.

9 CFO GALLAGHER: They are pretty clear in the letter

10 here. I will just read you, That you represented and the

11 current agenda for the Board of Trustees reflect that DEP

12 will seek in lieu of Mr. Hardy's request that an

13 additional deferment, direction from the Board to continue

14 earnest and good faith negotiation with Mr. Hardy and that

15 eminent domain proceedings, if authorized, will be

16 initiated no sooner than June 25th, 2004 and no later than

17 August 31st, 2004.

18 They recognize that is the parameters they are

19 working on if they cannot come to an agreement by

20 June 25th. Then somewhere between the 25th and

21 August 31st they recognize that eminent domain will move

22 in and the Court will come up with a price. And, I mean,

23 it's very hard for us to go against it when they've agreed

24 to it. That's my opinion anyway.

25 COMMISSIONER BRONSON: Let me just state that my

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                         BOARD OF TRUSTEES - MAY 25, 2004
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1 concern is that -- I mean I want to be fair with this

2 whole process and we've been very fair because we have put

3 this off how many times trying to work out an agreement

4 with Mr. Hardy and I hope that agreement does get worked

5 out with DEP being the lead agency in this.

6 But knowing that we've had some hiccups before like

7 offering the Miccosukees land in Jacksonville which is way

8 away from where the Miccosukees live, that they disagreed

9 with some issues when they were being dealt with. I just

10 want to make sure that there is, since it is the Board

11 that is doing eminent domain, not DEP, they are

12 representing the Board. But I just want to make sure if

13 there's a hiccup in here, that we're going to hear about

14 it back at the Board level.

15 MS. CASTILLE: Commissioner Bronson, let me just give

16 you a little bit of a history of what we've done since

17 this item has been deferred. Based on the direction that

18 you gave us, that you wanted to make sure we were caring

19 and compassionate with Mr. Hardy and his adopted family,

20 we've sure --

21 GOVERNOR BUSH: It's not adopted family. We keep

22 saying "adopted family".

23 MS. CASTILLE: Informally adopted family.

24 (Laughter.) Informally. We have assured that any of the

25 exchanges that we have proposed to Mr. Hardy have been in

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                         BOARD OF TRUSTEES - MAY 25, 2004
                                                                          32

1 the school district that Tommy currently attends, that he

2 can -- that we have four sites that we have presented for

3 his review and visitation and three of those sites we

4 believe can effectively allow him to continue the type of

5 business that he is currently in. And so -- and we would

6 permit that business.

7 So what we are doing, we are openly and honestly and

8 truthfully dealing with him to ensure that he gets that

9 opportunity. But we do have a very huge goal in front of

10 us of Everglades restoration. This piece of property is

11 right in the middle of a critical project for Everglades

12 restoration. And restoring much of Fakahatchee Strand and

13 the Picayune State Forest which is managed by Forestry.

14 So we are attempting to make it a win/win situation for

15 both and to be -- and to respect Mr. Hardy's

16 constitutional property rights. And so we are asking for

17 the ability to move forward with eminent domain without

18 having to come back before the Board.

19 GOVERNOR BUSH: Which the applicant or which

20 Mr. Hardy and his legal representative have agreed to.

21 MS. CASTILLE: Correct.

22 GOVERNOR BUSH: There's a motion and a second. Any

23 other discussion?

24 All in favor say aye. Aye. All opposed -- motion

25 passes unanimously.

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                         BOARD OF TRUSTEES - MAY 25, 2004
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1 MS. CASTILLE: Thank you, Governor and members of the

2 cabinet.

3 GOVERNOR BUSH: Progress.

4 CFO GALLAGHER: Battle. You did a great job.

5 MS. CASTILLE: Just keep moving forward.

6 CFO GALLAGHER: Amen.

7 MS. CASTILLE: That's the extent of our agenda.

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                   STATE BOARD OF ADMINISTRATION - MAY 25, 2004
                                                                          34

1 GOVERNOR BUSH: State Board of Administration.

2 THE WITNESS: Motion on the minutes.

3 GENERAL CRIST: Second.

4 GOVERNOR BUSH: Moved and seconded. Without

5 objection, Item 1 passes.

6 Item 2.

7 CFO GALLAGHER: Motion on 2.

8 GENERAL CRIST: Second.

9 GOVERNOR BUSH: There's a motion and a second.

10 Without objection, the item passes.

11 MR. STIPANOVICH: Item No. 3, Governor, and members,

12 is the proposed budgets for the fiscal year 2004, 2005.

13 CFO GALLAGHER: Motion on 3.

14 GENERAL CRIST: Second.

15 GOVERNOR BUSH: There's a motion and a second.

16 Without objection, the item passes.

17 MR. STIPANOVICH: Thank you very much.

18 CFO GALLAGHER: Thank you, Coleman.

19 (Thereupon, the proceedings adjourned at 10:05 a.m.)

ACCURATE STENOTYPE REPORTERS, INC.
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2 CERTIFICATE OF REPORTER

4 STATE OF FLORIDA )

5 COUNTY OF LEON )

7 I, KRISTEN L. BENTLEY, Court Reporter, certify that

8 the foregoing proceedings were taken before me at the time and

9 place therein designated; that my shorthand notes were

10 thereafter translated under my supervision; and the foregoing

11 pages numbered 1 through 34 are a true and correct record of

12 the aforesaid proceedings.

14 I further certify that I am not a relative, employee,

15 attorney or counsel of any of the parties, nor am I a relative

16 or employee of any of the parties' attorney or counsel

17 connected with the action, nor am I financially interested in

18 the action.

19 DATED this 1st day of June, 2004.

20 ______________________________

         21                             KRISTEN L. BENTLEY, Court Reporter
                                        Notary Public
         22                             850-878-2221

ACCURATE STENOTYPE REPORTERS, INC.
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