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Page 1 727.725.9157 [email protected] MURRAY & ASSOCIATES COURT REPORTING STATE OF FLORIDA GOVERNOR AND CABINET MEETING February 5, 2015 9:00 a.m. Florida State Fair Bob Thomas Equestrian Center 4800 U.S. Highway 301 North Tampa, Florida 33610 Reported By: Penny M. Appleton, Court Reporter Murray & Associates Court Reporting 1875 N. Belcher Road Clearwater, Florida 33765 (727) 725-9157

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Page 1: STATE OF FLORIDA GOVERNOR AND CABINET MEETINGSTATE OF FLORIDA GOVERNOR AND CABINET MEETING February 5, 2015 9:00 a.m. Florida State Fair Bob Thomas Equestrian Center 4800 U.S. Highway

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727.725.9157 [email protected] & ASSOCIATES COURT REPORTING

STATE OF FLORIDA

GOVERNOR AND CABINET MEETING

February 5, 2015

9:00 a.m.

Florida State Fair

Bob Thomas Equestrian Center

4800 U.S. Highway 301 North

Tampa, Florida 33610

Reported By:

Penny M. Appleton, Court Reporter

Murray & Associates Court Reporting

1875 N. Belcher Road

Clearwater, Florida 33765 (727) 725-9157

Page 2: STATE OF FLORIDA GOVERNOR AND CABINET MEETINGSTATE OF FLORIDA GOVERNOR AND CABINET MEETING February 5, 2015 9:00 a.m. Florida State Fair Bob Thomas Equestrian Center 4800 U.S. Highway

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727.725.9157 [email protected] & ASSOCIATES COURT REPORTING

1 A P P E A R A N C E S

2 CABINET MEMBERS:

3 Governor Rick Scott

Attorney General Pam Bondi

4 Chief Financial Officer Jeff Atwater

Commissioner of Agriculture Adam Putnam

5

6

7

8

9

10

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12

13

14

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1 Thereupon, the following proceedings commenced:

2 GOVERNOR SCOTT: Good morning. I want to start

3 the meeting by discussing the departure of Jerry

4 Bailey. While I wanted to bring in new leadership at

5 FDLE as we transitioned into a second term in office,

6 it is clear, in hindsight, that I could have handled it

7 better. The buck stops here, and that means I take

8 responsibility.

9 I am focused on working together today on creating

10 a more transparent and predictable process for

11 transitioning cabinet agency leadership as we move

12 forward. I cannot stress how important it is to add

13 clearly defined accountability and clearly defined

14 measurement to our cabinet agencies.

15 In the private sector, there are no lifetime jobs.

16 In successful companies, no worker is immune from

17 regular performance reviews that determine whether they

18 are meeting clearly defined objectives. State

19 government should be no different. Taxpayers expect

20 the government they pay for to be efficient and

21 productive. That is why today we are proposing a

22 process that would add annual reviews to all cabinet

23 agency leadership positions.

24 With this new, more transparent and predictable

25 process, all cabinet agency leadership, including FDLE,

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1 would be up for review in June of this year. During

2 that review, any member of the Cabinet can make a

3 motion at our public meeting for the Cabinet to

4 consider the removal of an agency head and begin a

5 search for new leadership.

6 If we are able to agree to a new more transparent

7 and predictable process today, I would like to invite

8 the current leader of DOR, OFR, and OIR to the next

9 cabinet meeting to specifically discuss their

10 accomplishments and their specific goals for their

11 agencies and how those goals serve the needs of

12 Floridians. We each have our own goals, but I think we

13 need input from the whole cabinet to set agency goals

14 together.

15 Before I open up for discussion, I want to add

16 that searching for new leadership is often important to

17 bring in new energy and fresh ideas. In fact, we have

18 made changes all across state government as part of a

19 transition to a second term.

20 Successful companies have regular reviews,

21 measurement, and accountability, all tied to company

22 objectives. Adding measurement, accountability, and

23 regular reviews is the best way to ensure there's no

24 favoritism among leadership and that every appointed

25 official is focused on what is best for the citizens of

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1 our great state.

2 We have a proposed process for discussion today

3 that builds on the process designed by Commissioner

4 Adam Putnam, but I think we need to have a bold

5 discussion about the best process moving forward. We

6 need everyone's input on this. It is important that we

7 work to make the entire process for transitioning

8 cabinet agency leadership more transparent and

9 predictable.

10 I look forward to hearing everyone's ideas, and I

11 have additional copies of the proposal for those who

12 may need them. So if each of the other cabinet members

13 have some ideas on the process, I'd love to hear them.

14 COMMISSIONER PUTNAM: Governor, I appreciate

15 the -- you setting the table with the desire for

16 creating a procedure that we could embody as cabinet

17 procedures. I think that where we have had that

18 process breakdown this -- this will give us a more

19 permanent guideline to follow, not only in terms of

20 replacing or filling vacancies, but also, I think,

21 imbedded in some of these reform proposals that I had

22 released two weeks ago are proposals for us to all

23 consider and weigh in on that may improve the

24 management and oversight of those cabinet agencies, so

25 it's not simply a matter of personnel decisions, but

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1 also oversight, accountability, and management

2 decisions, which I think are important.

3 The cabinet process, the cabinet system, has

4 served Florida well and can continue to serve Florida

5 well. I'm honored to be a part of our constitutional

6 cabinet system. There was an effort to remove the

7 Commissioner of Agriculture from that in the last

8 constitutional revision commission, and thankfully,

9 that idea was rejected, and I think that all of us are

10 better when we combine our ideas and our thoughts, and

11 so if I may, I would just suggest that we take -- take

12 these proposals up on an individual basis, rather than

13 as a -- as a collection.

14 I think that we'll get a better input from each of

15 the four of us, perhaps even guided by some insight in

16 terms of the way the constitution lays out very

17 different requirements for specific offices. Not --

18 not each of the cabinet agencies is treated the same

19 under the constitution or under the statute, so we have

20 to be careful about adopting a general statement, but I

21 would just recommend that for the purposes of this

22 meeting that we take these ideas up individually,

23 ratify or not ratify them as ongoing procedures for us,

24 and take up any additional proposals. I know that

25 others have certainly had some time to think about this

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1 and are likely to have thoughts on it as well.

2 GOVERNOR SCOTT: CFO Atwater?

3 CFO ATWATER: Governor, the -- I think that --

4 well, one, I think it is going to be valuable for us to

5 walk through these, and I have brought some additional

6 matters that I'd like to talk to in this process that

7 I'll speak to in just a moment and hope that we

8 would -- we would see a way to incorporate them in the

9 conversation and to affirm them as a policy and a

10 process by which we would act.

11 I think -- I appreciate your opening comments

12 that -- I think what you shared in them is a genuine

13 reflection of how you might be looking back on the

14 last, you know, 35, 45 days and specifically on how the

15 matter regarding Mr. Bailey took place because, I

16 think, as you spoke to it, anything less than a very

17 transparent process, a process that is clearly defined

18 that's going to attract the kind of individuals that we

19 want to come to Florida or in Florida to step into

20 these important roles for us --

21 I think that their expectation is that they're

22 going to see how this -- this cabinet will work with

23 them to develop their mission, how we'll work with them

24 to develop the criteria by which we would measure their

25 advancings or achieving that mission, where there are

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1 shortcomings, how we would work together to address

2 those shortcomings because I would certainly imagine

3 that just for a moment individuals who would be

4 watching would, I think, rightfully have some concern

5 that how might -- how might my particular leadership

6 role be addressed or handled by that cabinet and that

7 you would also use the word that in the lack of all

8 that, there's going to be a perception of favoritism,

9 how someone gets a role and steps into that role.

10 And, I think, clearly -- and I'd ask to be

11 considered a revisit of -- of Mr. Swearingen's

12 appointment, that I believe there is a perception in

13 how that came about, again, granted the authority does

14 rest in you as the appointing officer, how that came.

15 In the discussion that's followed, I want to be sure

16 Mr. Swearingen is -- is believed by all parties, the

17 public included, as one who has stepped into the role

18 because of all of his credentials and his experiences

19 and there was -- there was nothing else about -- about

20 that appointment.

21 And I think -- I would still hope -- I hear you

22 saying June is the time that we would be revisiting.

23 You're recommending that, Governor, if I understand

24 that. June would be a time that we would revisit that.

25 I would hope that we would all then work in the spirit

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1 that that gives Mr. Swearingen time, but it also,

2 again, leaves us the opportunity to be sure we don't

3 put someone in a position where the opportunity to

4 succeed is minimized by the perceptions of how they may

5 have been selected or placed into that position, which

6 I do believe exists at this moment. I see it's not on

7 the agenda, but I will work with us being sure that we

8 assist Mr. Swearingen every way possible until -- until

9 we have that visit.

10 If I might add then further, what I'm going to

11 suggest today and pass out as for consideration is I

12 think what has been the spirit behind all of our

13 conversations here is that it would be important for us

14 to look at the value propositions today. Every one of

15 us was elected on a communication and a narrative that

16 we seek to add value, and the very agencies that we may

17 have responsibile for individually, there is a value

18 proposition for that agency for the taxpayers' benefit.

19 So I'm going to ask that we enlarge the -- we

20 expand the conversation today, and whether it's

21 complete at the end of this -- at the end of this

22 meeting is not as important to me as that we consider

23 embracing a broader agenda, and that is, rather than

24 simply rushing to see if we can create performance

25 measures today, but, in fact, what is the purpose

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1 behind those measures? What is the purpose behind that

2 agency? What is the mission of that agency to achieve?

3 Have all of us taken responsibility to articulate

4 and to clearly -- and to wrestle with the mission of

5 each one of these agencies so that when we're putting

6 something to paper it is put to paper in a very

7 wholistic, productive, positive endeavor to see that

8 that mission is achieved in advance and we're -- and

9 then we can then breathe life into such measures so

10 that individuals can understand they are based in the

11 underlying mission of value to the taxpayer and not

12 just they're legacy measurements that may be easiest to

13 find or the data is easiest to gather, but instead,

14 Governor, we are looking with a critical eye that these

15 agencies are delivering on the value proposition for

16 which we believe they should be in existence?

17 So I would -- I will hope that there will come a

18 time in the conversation, Governor, for us to broaden

19 the conversation and that, as much as I would like to

20 see us complete the day with going forward on

21 expectations of how we will work at these, my goal

22 would still be that if it takes time for -- for senior

23 staffs to come back with final -- with final proposals,

24 I want you to know I'm going to be absolutely fine with

25 that. In the end, what I want is a far better system

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1 and a far better process, but based in the creation of

2 a far greater value to the taxpayers and not just to

3 get it done. Thank you.

4 GOVERNOR SCOTT: Attorney General?

5 ATTORNEY GENERAL BONDI: Governor, I think you are

6 a man of great character, and I'm encouraged that you

7 have presented a plan to improve our system.

8 Commissioner Putnam, thank you for your proposal

9 as well, and same to you, and same to you, CFO. You

10 are all men of great integrity, and I know our ultimate

11 goal is to work together.

12 Both of the proposals from the Ag Commissioner and

13 from the Governor have good suggestions and ways to

14 bring more transparency, which we clearly know we need

15 to our system. We have to, but conceptually, I can

16 support the spirit in which they're presented, but as

17 chief legal officer, I can't support something that

18 could be interpreted as being in conflict with our

19 state statute. You can read our statute. What should

20 happen is laid out clearly in the statute.

21 For example -- and we just discussed this in this

22 meeting. For example, Highway Safety, OFR and OIR, the

23 Governor simply cannot make an appointment without the

24 approval of the cabinet members at a public meeting,

25 and, Governor, I believe you just suggested that we do

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1 that at a next meeting, discuss that publicly.

2 GOVERNOR SCOTT: Right.

3 ATTORNEY GENERAL BONDI: So I'm fine with that.

4 The proposals, Commissioner Putnam, that you

5 suggested, the one that I have some concern over is

6 appointing an interim head because that could be in

7 violation. That could be interpreted to be in

8 violation. I think all that needs to be talked about

9 in an open public forum, so that could be -- could be a

10 conflict of state law, and we're working on that, and

11 we're discussing that. These plans offer more

12 accountability and a review of the process, but we

13 don't need an actionable item or a new rule. We can

14 begin this process at any time because it's clearly

15 laid out in the statute. Again, I'm encouraged by both

16 proposals.

17 CFO, you've asked to revisit Rick Swearingen, and

18 I'd like to bring that up. That's -- we all voted

19 unanimously, if I recall, to appoint Rick Swearingen.

20 That's completely separate from what we're talking

21 about here today, and I will tell you I had a

22 conversation with Jerry Bailey, and what Jerry Bailey,

23 after 38 years in law enforcement, cares about to this

24 day is that his agency -- and it has been his agency

25 for a very long time -- be protected and it's in the

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1 hands of the best person possible for that job, and

2 Jerry Bailey believes the best person for that job, as

3 we all voted, is Rick Swearingen.

4 He believes that he can -- and I want you to know

5 I, coincidentally, was the prosecutor and prosecuted a

6 case called "The Boot Camp Case" in the panhandle when

7 a man named Guy Tunnell was the head of FDLE. He was

8 fired by Governor Bush, and that agency lost

9 credibility and integrity because of that. Jerry

10 Bailey was appointed by Governor Bush to come in and

11 restore integrity to that office, and he did it.

12 There was a time when I didn't trust the

13 Department, and now I have full faith in FDLE because

14 of what Jerry Bailey -- what that man did and what I've

15 said before. He's a very private person, but he asked

16 me to tell you today that he does believe that Rick

17 Swearingen is the best man for his replacement. I know

18 they're speaking to each other. He cares about a clear

19 transition.

20 So that -- that's a separate issue, and right now

21 there's nothing -- it's not on our agenda as an action

22 item to vote on anything, but I think we can make -- we

23 have to, we must, make great improvements, and if we

24 all just read the statute, I think that's going to be

25 clear, and, Governor, thank you for what you said about

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1 OIR and OFR and Highway Safety, and we'll be discussing

2 that at the next meeting.

3 GOVERNOR SCOTT: So let me respond to what CFO

4 Atwater said. I think the logical process to -- for

5 each agency is to, one, listen to the agency with

6 leadership what they think their goals are. Everybody

7 bring to the cabinet meeting when they present our own

8 ideas, and then with the goal that when we finish, we

9 say what are the objectives that we all want out of

10 that leadership, and then at that point, it's -- the

11 way we did it in business is once you decide that, then

12 you can decide on the leadership and say, is this the

13 right person? Is this the right energy? Is this

14 person going to have the right ideas?

15 So what I would like to do is at the next -- at

16 the next meeting start with those three agencies, but

17 the expectation would be that we would do this with

18 every agency where it's clear. I mean, there's no ifs,

19 ands, or buts about it. Everybody knows exactly what

20 the goals are. Everybody knows exactly whether they're

21 meeting their goals or not. Then it's easy for us to

22 make a decision on -- on the leadership is the way I

23 would think about it.

24 So my goal would be -- I think what you said is

25 absolutely true. You know, we're not coming today to

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1 do that, but we should be doing that with every agency,

2 and we can start with those three agencies at the next

3 meeting.

4 CFO ATWATER: Governor, let me -- let me -- I want

5 to be sure I'm making my point clear. I understand how

6 we operate with our agenda, so I am not asking for us

7 to -- to address a matter.

8 General, you pointed it out clearly, and I was

9 pointing it out clearly. It was one that I asked for

10 us to revisit, and, again, I may be the only one who

11 had a desire that we revisit the item, and in stating

12 that we look at the item at a future date, make clear

13 that I have tremendous confidence in the -- in the

14 commissioner that we have selected and that I have

15 voted upon.

16 My concern, just under what the Governor opened

17 under, is all I'm asking is to look forward to down the

18 road. When we put someone in a position in a process

19 that would appear to lack transparency, we have done

20 them a disservice to be able to step in and go because

21 the perception is that we were aware of things or there

22 was a process by which the individual was selected that

23 did not focus solely on their capabilities and solely

24 on their capacity to achieve excellence, and that's

25 what has worried me.

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1 So I'm ready to move on. We will have that

2 opportunity when it comes, and I think when we have a

3 chance to review that agency, there will be an

4 opportunity for that individual, but that is my

5 concern, and it is my concern at this moment, that that

6 individual have the opportunity to have the full trust

7 and confidence, not only of us who may know him, but

8 that the public has the trust in this process, and I

9 don't believe that we gave that to them.

10 So, Governor, I'm just going to pass -- I'm going

11 to pass this out but -- but I think you've -- you've

12 laid it out and I -- what I want to agree with is that

13 if we would establish an order, a sequential process by

14 which each agency will begin to come before us so that

15 all agencies will know that, we will know that, the

16 public will know that, staffs will know that so that

17 they can be prepared, we can be prepared for that

18 discussion.

19 Until we have -- and I think I'm hearing you say

20 that today, which I appreciate -- not only a clear

21 process in place by which we will determine what the

22 criteria of evaluation are, how we would measure it,

23 but that we also have a conversation about the value

24 proposition of the agency itself and what we need in

25 that agency, that my hope would be we are going to be

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1 willing to defer any conversation about the talent in

2 these roles until we can give this -- we can give all

3 the players and future incumbents a chance to see how

4 we value the agency, what we expect from the agency,

5 and what we expect from the person in charge.

6 GOVERNOR SCOTT: Yeah. I think you're right. I

7 think the way I would do it in business is you'd say,

8 what am I trying to accomplish? You'd set clearly

9 defined goals which you're trying to accomplish. Then

10 you look at the talent that you have. Do you have the

11 right talent? I don't disagree.

12 COMMISSIONER PUTNAM: So, Governor, based on these

13 comments, you're concerned about Swearingen. My

14 view -- and I said that in the press. I would have

15 preferred to say it to you directly, but being fully

16 aware and conscious of the Sunshine Laws, I made sure

17 that I communicated -- I have total confidence in his

18 ability to lead the agency. We have used a variety of

19 processes to identify talent to run cabinet agencies.

20 We used a selection committee to get the Citizens IG.

21 We put Terry Rhodes at Highway Safety and Motor

22 Vehicles in on an interim basis, and, Governor, if I

23 hear you correctly, Swearingen will be up for review in

24 June.

25 So he's essentially -- it's akin to a six-month

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1 review to evaluate where the agency -- where FDLE is,

2 the relationship between the local law enforcement, our

3 sheriff's, who are so critical in that symbiotic

4 relationship. So I am -- I am comfortable with his

5 leadership, and I'm comfortable with FDLE's ability to

6 continue to provide first class, best in class, law

7 enforcement investigations, lab work, and services to

8 local law enforcement.

9 The -- in the conversations in the press and in

10 also talking with Commissioner Bailey, the only --

11 well, the most -- the most serious thing in my view

12 that I -- that gives me great concern is the Orange

13 County allegation, and that, it seems to me, is the

14 piece that most specifically should somehow be

15 addressed, and I'm open to ideas about how we do that,

16 you know. I think it's important that we have that

17 conversation. I think that is, as the Attorney General

18 said, a separate issue from the current agency head of

19 FDLE and the leadership at FDLE, but I would recommend,

20 you know, based on these, that everybody now has sort

21 of their proposals, that we take these up.

22 I guess, General, you can tell us whether -- I

23 assume we're not allowed to vote on any of them. We

24 can prepare them for discussion. We can get them in a

25 forum so that they will be eligible to be voted on and

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1 adopted as procedure at the next cabinet meeting. Is

2 that correct?

3 GOVERNOR SCOTT: We can vote on them today, and we

4 can -- we can get -- the right thing is we can get

5 advice on whether we think they're consistent with the

6 constitution. All right. But if we -- if we have --

7 we're comfortable that they're consistent with -- or we

8 can also vote on them and say that these are subject

9 to, again, still being consistent with the

10 constitution, the constitution is still going to -- it

11 doesn't matter what we do here. We're still going to

12 have to comply. We have to comply with the

13 constitution.

14 So my -- I think, you know, Commissioner Putnam,

15 you suggested in your letter that -- that we come up

16 with a process. The way I look at it is if we can come

17 to an agreement today on a process going forward and

18 then separately -- and I haven't read what the CFO's

19 put out. If we can agree on timing on agency

20 addressing, which I assume that's what you're saying

21 here -- timing how we look, how we come up with the

22 objective measurements and the timing of this, I think

23 that's positive. So we have -- and then agree on,

24 again, which is part of the process, which was -- what

25 I took is Commissioner Putnam's and added some things

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1 to it, is to say let's have -- most of mine was adding

2 specific timelines on it because you get more things

3 done that way.

4 So -- so if we -- if you all are okay, let's do it

5 this way. Let's -- let's see if we can go through, and

6 I think -- Commissioner Putnam, I think what you were

7 saying, vote on each one, I think we're still better

8 off to go through, and let's see if we can get -- come

9 to an agreement on all of them, all of the whole

10 process, and if we can, where we're all comfortable,

11 still subject to the constitution -- and then after

12 that decide what the -- I think your time -- I think

13 the CFO was saying what's the timeline of doing these

14 things.

15 ATTORNEY GENERAL BONDI: Governor, my concern with

16 that, as the chief legal officer, is it wasn't noticed

17 for today as an action item, and for the folks in the

18 audience, that's what you have to understand. We can't

19 talk to each other. So had I had my choice, I guess it

20 would have been noticed as an action item, but it's

21 not. So technically, it should be noticed as an action

22 item before it can be voted on.

23 GOVERNOR SCOTT: I'm not suggesting you're wrong,

24 but it says discussion of process going forward for

25 annual cabinet agency leadership review and beginning

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1 process to identify new leadership at the Office of --

2 Office of Insurance Regulation, Office of Financial

3 Regulation and Department of Revenue. So you think

4 that's not sufficient notice?

5 ATTORNEY GENERAL BONDI: That's discussion. I

6 wish it had said an action item. You know, we can

7 still bring those up. Really, nothing's changing.

8 We're just bringing it up at the next cabinet meeting.

9 Something else I would like to offer up is, you

10 know, Pat Gleason, who wrote the book on Sunshine Laws,

11 is housed within my office, and if any of you have any

12 questions, you know, that you'd like to talk with Pat

13 about as far as writing letters and communicating,

14 please talk to Pat Gleason about that. I would

15 encourage that.

16 Governor, today I would just ask, in an abundance

17 of caution, that we discuss it.

18 GOVERNOR SCOTT: Okay.

19 ATTORNEY GENERAL BONDI: I think we can clearly

20 bring up OFR, OIR and Highway Safety at, you know, our

21 next cabinet meeting, or if you want to, you know,

22 discuss other things.

23 GOVERNOR SCOTT: So why don't we do this then.

24 Why don't we start with if -- all right. Let me just

25 make sure everybody's got a copy of this. This is

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1 basically, if you look at the underlying -- pass that

2 down, please. If you look at the underlying, it's

3 basically just -- it took Commissioner Putnam's

4 proposal and just added some things to it. So if it

5 would be all right with everybody, we can start with

6 Item 1 and just see -- again, it will be subject to --

7 what we're going to do is we're going to -- the way we

8 do this is get everybody's comments, see if we can come

9 to an agreement, subject to a review, where we bring it

10 up as an action item next time.

11 ATTORNEY GENERAL BONDI: And, Governor, and,

12 again, my general counsel reminded me, we're just being

13 hyper technical.

14 Commissioner Putnam, you did ask that it be set as

15 an agenda item, but it was set as a discussion matter.

16 So just in an abundance of caution, I think we should

17 do it that way.

18 GOVERNOR SCOTT: So if it's all right, why don't

19 we go through just Section 1 and see if the -- what

20 Commissioner Putnam proposed with the additions that we

21 suggested are -- see if those are okay, and then we can

22 go down each of these and get everybody's comments.

23 Again, we will -- we will -- we'll defer to take

24 action, but basically, if we're okay with this, we can

25 start proceeding in this manner.

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1 ATTORNEY GENERAL BONDI: Right.

2 COMMISSIONER PUTNAM: So, Governor, the idea

3 behind Item Number 1 is there's a bit of a two-step

4 process here. In the event of a vacancy, if -- if for

5 whatever reason there is a vacancy that there could be

6 in some period of time, whether it's between the two

7 weeks of a cabinet meeting, or if it's in the

8 summertime, it may be as many as three or four weeks

9 before the next cabinet meeting, that there be a

10 bifurcated process, a process for an interim, subject

11 to the different nuances of each agency head, depending

12 on which one it is that's vacant, whereby, where

13 appropriate, you would take the lead or where

14 appropriate you with the -- in some cases, the CFO

15 would have to be in concurrence.

16 And if it were in between cabinet meetings, you

17 could even -- we could call a special cabinet meeting,

18 affirm the interim, and then the next regularly

19 scheduled cabinet meeting identify the process for

20 selecting a permanent replacement, and that might be a

21 selection committee. That might be affirmation of the

22 interim as the permanent. It could be any number of

23 things. I'm not interested in tying our hands there,

24 but merely laying out a clear expectation of what would

25 happen if there is a vacancy and how we would all

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1 handle that.

2 ATTORNEY GENERAL BONDI: May I address that?

3 GOVERNOR SCOTT: Sure.

4 ATTORNEY GENERAL BONDI: And, Commissioner, what

5 it is is the statute just doesn't mention interim.

6 It's not mentioned in the statute, but there's -- there

7 is a way to do what you requested, that we can discuss

8 it because what if there is, Lord forbid, a sudden

9 death or a health issue or something where one of our

10 agency heads suddenly, you know, was gone. That's just

11 not addressed in the statute, but in order to have an

12 interim, we would all discuss it.

13 GOVERNOR SCOTT: So just start with -- just with

14 1. Subject to a review with what the constitution

15 says, all right, the concept of Number 1, I mean,

16 everybody's okay with?

17 ATTORNEY GENERAL BONDI: Yes.

18 CFO ATWATER: Yes.

19 GOVERNOR SCOTT: Okay. All right. So let's go to

20 Number 2, and basically, it's the same thing.

21 COMMISSIONER PUTNAM: Yes.

22 GOVERNOR SCOTT: Commissioner, my only change --

23 my only change on that is I just hate -- I get this

24 with judicial nominating committees. I have a limit on

25 how many candidates we can have. That's why I limited

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1 it to five. I don't see any reason. They're not --

2 generally, you wouldn't get more than that, or I

3 wouldn't disagree you, but that's the only reason I

4 made that change.

5 COMMISSIONER PUTNAM: That's a minor thing. I

6 think that for the selection committee to do their job,

7 they need to winnow it down to something. I'm not --

8 I'm not weighted to five or three or six or whatever

9 but...

10 GOVERNOR SCOTT: Is that all right with you?

11 COMMISSIONER PUTNAM: This is the process we use

12 for the Citizens inspector general position where the

13 cabinet aides -- and it's also a position we use for

14 parole, where there's actually a separate commission

15 set up to narrow down the candidates for parole.

16 ATTORNEY GENERAL BONDI: Governor, may I?

17 GOVERNOR SCOTT: Sure.

18 ATTORNEY GENERAL BONDI: I do agree with the

19 Governor that there's sometimes -- especially, in the

20 judicial races, you're going to have six or seven very

21 qualified people. Probably, more often we're going to

22 have two or three in these agencies. I mean, these are

23 very specialized agencies.

24 GOVERNOR SCOTT: So Number 2 is everybody all

25 right with?

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1 CFO ATWATER: Yep.

2 ATTORNEY GENERAL BONDI: Yes, absolutely.

3 GOVERNOR SCOTT: Number 3? This is more -- this

4 is more just creating a process of how we're going to

5 do the reviews, which I think the CFO has some good

6 comments here.

7 CFO ATWATER: Governor, if I may.

8 GOVERNOR SCOTT: Sure.

9 CFO ATWATER: I think this is -- I think this is

10 all very workable but -- and so I really commend the

11 work and the effort that's -- that brings us to this

12 point to get it understood and followed in the future.

13 What I -- what I played out is a -- is I see it as

14 a prequel and the preface to this conversation that

15 we're having. So I know that it hasn't been in your

16 hands. I would ask that if you would look favorably

17 upon it in the spirit, that it could be incorporated in

18 the conversation that would come back to us for actual

19 specifics, and that is to say that -- that there needs

20 to be a clear, well-defined value proposition for each

21 one of these agencies which should guide us in

22 establishing what we're looking for in talent, in skill

23 sets, in credentials, what we're looking for in

24 specific data mining that we might do to measure

25 performance.

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1 All before that comes, are the taxpayers getting

2 what they ought to be getting for the very presence of

3 this agency? And it is saying that there ought to be a

4 process like I think was covered in Number 3, that we

5 should wrestle with and reaffirm and not just take

6 legacy performance measures as -- because they may have

7 given the easiest data to grab, but to go far deeper

8 and look to see is this agency delivering upon its very

9 purpose?

10 And we should wrestle with that, and we should

11 affirm on an annual basis this is what we're looking

12 for. This is what our expectations are. This is what

13 the taxpayers deserve, and if there are gaps that this

14 process shows, why is that happening? The taxpayers

15 deserve better. They deserve the value we set out to

16 achieve by the resources we extracted from their own

17 wallets. So, Governor, that's what I'm suggesting

18 here, and that's why I would --

19 GOVERNOR SCOTT: I think it makes sense. I think

20 the process makes sense. I think it's two things. I

21 think you're doing the right thing. I think you're

22 starting off by saying, what do we want?

23 CFO ATWATER: Right.

24 GOVERNOR SCOTT: All right. And that's the first

25 thing we ought to be doing for every agency, and then

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1 you're saying, okay. Is this person meeting that?

2 CFO ATWATER: Right.

3 GOVERNOR SCOTT: And I think it's important for

4 that person to say, how can I -- how can I be measured

5 where I actually know every day how I'm doing as much

6 as you can? So I think your process is right. I think

7 it makes sense.

8 ATTORNEY GENERAL BONDI: And, CFO, you mean for

9 every agency, not just FDLE?

10 CFO ATWATER: I do.

11 ATTORNEY GENERAL: I agree.

12 CFO ATWATER: General, that -- each agency that

13 reports to this cabinet should have a process by which

14 the Cabinet has wrestled with and affirmed the mission

15 of that agency and made clear that's what we're going

16 to achieve, and that's what the taxpayer deserves, and

17 I believe that needs to take place before we -- we take

18 action on any one in particular player and that we have

19 a firm -- this is what we have set out to achieve,

20 Governor, and I'd rather us get right that we are

21 engaging in work with these agencies and not acting

22 as -- as going through a bureaucratic process.

23 GOVERNOR SCOTT: So why don't we do this. Let's

24 see if everybody's okay with this. What I've written

25 down here, which is changes -- which is basically

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1 additions to what Commissioner Putnam did. Everybody's

2 okay with that process, right, subject to the Attorney

3 General's going to come back and tell us what issues

4 that she says that we have that might impact the

5 constitution. That's step one. Okay? So nobody has

6 an issue with that?

7 Step two, then let's plan on -- let's -- if

8 everybody's okay with this, we'll take the three

9 agencies, OFI, OIR, and OFR -- OFR, OIR, and DOR, and

10 let's just do -- in the next meeting, let's just do

11 your top half and basically say let's just focus on

12 what are the clear objectives that we want. We won't

13 worry at that meeting about the leadership talent that

14 we have, whether it's the right or the wrong. We'll

15 come back, and we'll say, we're going to -- we're going

16 to -- we're going to say, this is exactly what we want

17 out of those agencies.

18 That will be, you know -- as part of that, we can

19 use that then as a template, like you have here, to

20 say, this is what we're going to do for every agency,

21 so nobody will be surprised when they come in.

22 CFO ATWATER: Governor, that is exactly what I

23 would like to achieve, and I believe that if we were to

24 take it three agencies at a time as we work through, as

25 our responsibility as the management of those agencies,

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1 that -- that it would be a -- it would be a very

2 significant value add so that all those hardworking

3 people in each one of these agencies know we've

4 affirmed their mission. We believe they're on -- this

5 is the path they are to follow. This is the value that

6 the taxpayer will receive, and from that we can -- we

7 can then begin a process, which I think is excellent in

8 the outline here, on how we would then bring those

9 individuals to match, is there a gap between our

10 expectations and the performance?

11 COMMISSIONER PUTNAM: So in those three cases,

12 we're separating -- what I'm now hearing -- let me make

13 sure I'm hearing the right thing. There will not be a

14 consideration of the three agencies' heads, OFR, OIR,

15 and revenue, at the next meeting. There will be the

16 development of this yardstick against which those three

17 agency heads -- the three yardsticks that they will be

18 measured against, and this will be the beginning of a

19 systematic process where every cabinet agency will also

20 have its individual guidelines and standards developed,

21 and then they will be measured against those.

22 GOVERNOR SCOTT: I agree with that, but I think

23 part of the process is they are going to come in and

24 tell us their ideas, and this what I did always was I'd

25 have the leadership come in and say, well, what do you

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1 think the goals are? So it wasn't just, you know, me,

2 as the CEO, or, me, as the investor doing it. So they

3 came in and gave me their ideas, and then we all have

4 our own ideas, and so the goal I would like to have at

5 the end of the next meeting is to say, okay. This is

6 the template, and we're going to apply that template to

7 those three agencies. That's as far as we can get.

8 COMMISSIONER PUTNAM: So the template development

9 will be an ongoing process. So to go back to a very

10 early comment, June is not going to be an evaluation of

11 every single cabinet agency head. We will -- we

12 will --

13 GOVERNOR SCOTT: Eventually.

14 COMMISSIONER PUTNAM: -- spread those out or are

15 you saying that eventually --

16 GOVERNOR SCOTT: Eventually, they --

17 COMMISSIONER PUTNAM: -- they all will be in the

18 same meeting?

19 GOVERNOR SCOTT: Yeah. I think eventually we'll

20 be able to do that. We won't be able to do it this

21 year because I think the point is we would not -- I

22 don't know how many cabinet meetings we're going to

23 have, but we won't get through all of these by then.

24 So but I think that starting with -- with what the CFO

25 has said here, saying what is the goal of the agency

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1 basically, what do our taxpayers expect out of it,

2 we'll have a template. We'll try to apply it to those

3 three agencies to start, and then we'll see where we

4 get from there, and then we can go back and look at the

5 talent pool after that.

6 ATTORNEY GENERAL BONDI: And, Governor, if we put

7 DOR, OFR, and OIR -- OIF on as action items, we do have

8 that option at that time to discuss possible changes,

9 if we so choose.

10 GOVERNOR SCOTT: Right.

11 COMMISSIONER PUTNAM: So how would you phrase --

12 ATTORNEY GENERAL BONDI: You phrased it correctly.

13 COMMISSIONER PUTNAM: In my letter? Okay. Well,

14 that's good. Thank you.

15 ATTORNEY GENERAL BONDI: You're welcome.

16 COMMISSIONER PUTNAM: Law and order every time.

17 That's me.

18 ATTORNEY GENERAL BONDI: You want some fries?

19 COMMISSIONER PUTNAM: How do we -- how would you

20 characterize the agenda item where we're all four

21 coming with presumably -- I mean, I would hope that --

22 I would hope that the next meeting is a little bit

23 better than this meeting in that we're not seeing each

24 other's stuff for the first time. I would hope that

25 the cabinet aides meeting --

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1 ATTORNEY GENERAL BONDI: Right.

2 COMMISSIONER PUTNAM: -- will have provided some

3 type of open discussions that at least, in that

4 transparent fashion, winnows down the conversation so

5 that we all have something that we're walking into our

6 meeting with in the interest of sunlight and all that

7 is good so that we're not just spitballing a measuring

8 stick for three critically important cabinet agencies.

9 ATTORNEY GENERAL BONDI: Well, spitballing's a new

10 term for me, but I think that we can clearly agenda it

11 as an action item because the public has a right to

12 know -- the media, they need to know -- what could

13 potentially happen, and that's why if we agenda it that

14 way, anything we could possibly discuss at that next

15 meeting we can put it on. We don't have to take action

16 at that time, but we have the option to.

17 GOVERNOR SCOTT: All right. So if everybody's

18 okay with this, this is -- so we generally -- we've

19 generally signed off on this process, okay, subject to

20 what the Attorney General comes back with. That's step

21 one. Step two is we are -- we're going to walk into

22 next meeting with having thought through this template

23 and then try to apply it to those three agencies, and

24 that's -- and there will be an agenda to where we can

25 do that. Okay.

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1 CFO ATWATER: Governor, can I just -- and I

2 appreciate -- I think we need to make it clear. There

3 are a lot of people watching, and there are a lot of

4 people listening, and a lot has been said that -- I

5 think all of us -- I hope we'd be in agreement that

6 those individuals that are leading these agencies that

7 have been recommended to be the first up to assess the

8 value proposition of that agency and for us to agree

9 upon those missions need to keep their head down and

10 looking forward and working, that that meeting is not

11 about whether we are assessing the caliber of their

12 contributions to the achievement of those missions.

13 That comes at a far later date -- or let me say

14 that, at a later date when we know we are measuring

15 them against value propositions that we have agreed to

16 and established. I want them focused, and I don't want

17 the distraction that has gone on, that any given day

18 there's going to be a called meeting that's going to

19 address their unique performance. That's a process

20 that we will get to. For now you have outlined for us

21 this plan.

22 GOVERNOR SCOTT: All right. Does everybody -- any

23 other comments on this?

24 COMMISSIONER PUTNAM: Just one. One of the things

25 that I had -- are we saying that there will be an

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1 annual affirmation vote or an annual review? Because

2 those are two different things. The SBA has an annual

3 affirmation vote. The other ones are a review, and

4 it's an opportunity to take whatever action is deemed

5 necessary, but are we actually adding to -- what the

6 statute says is that they already serve at the pleasure

7 of the Governor and Cabinet.

8 GOVERNOR SCOTT: I'd recommend that we do a vote.

9 I just think, you know, it's -- I'm okay either way. I

10 just think that clearly when you have to make an

11 affirmative decision, you're, you know, it's you -- I

12 just think it's more important, but I'm okay with --

13 the truth is I'm okay either way, but I'd rather take a

14 vote.

15 ATTORNEY GENERAL BONDI: Yeah. And I feel the

16 same way. Commissioner, we're fine doing it either

17 way.

18 COMMISSIONER PUTNAM: Okay.

19 ATTORNEY GENERAL BONDI: Either way we can do it.

20 COMMISSIONER PUTNAM: I was looking at you when I

21 asked.

22 ATTORNEY GENERAL BONDI: Yeah. Either way we're

23 fine, legally, I think.

24 CFO ATWATER: Well, if I might --

25 ATTORNEY GENERAL BONDI: And if I'm wrong, I'll

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1 let cabinet aides know and the public.

2 CFO ATWATER: Well, then, as was said, maybe we'll

3 have a chance to -- I'm glad you raised it,

4 Commissioner, because I think it needs to be decided

5 one way or the other if it's out there as to which way

6 we're headed. I just would -- I would tell you that

7 I'll be interested in the persuasive conversations that

8 will be made when it's the action item in front of us,

9 but I keep thinking as to us attracting the finest

10 talent to take on these roles and -- and I would want

11 to be confident in our -- in our -- in how we have laid

12 out everything else that individuals would be looking

13 at: Am I -- Am I signing up for one year?

14 If I am signing up for one year, how clear is my

15 role, my objectives in the performance of my management

16 team following the same guidelines? I think we put at

17 risk the talent we might attract if -- if it is an

18 annual vote up and down and not measured against

19 performance where we can then choose to take action, if

20 so we wish. I'm not -- I'm not saying I'm not there,

21 but I think it's going to be -- it should be a -- it

22 should very thoughtfully considered.

23 GOVERNOR SCOTT: I think the way, you know, good

24 business is if you -- if we've done the right thing,

25 we've said these are our goals, and they're clearly

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1 defined, and the individuals meet all those goals, it

2 will be very difficult to say we're going to vote for a

3 change. Now it's also going to be very difficult to

4 vote to keep somebody if we've set out goals and they

5 don't meet those goals, and it's the same -- exact same

6 expectation you have in business. You -- in business

7 you have an expectation to meet your goals, and so we

8 should have the exact same expectation for every

9 taxpayer.

10 CFO ATWATER: Governor, I --

11 GOVERNOR SCOTT: I don't think we're saying

12 anything different.

13 CFO ATWATER: No, I don't think so either. I

14 think we have the same spirit. I just, again, you

15 are -- if someone is signing up, as they do in the

16 private sector, they understand those goals, and they

17 understand there is a -- hopefully, a process by which

18 they'd be evaluated fairly. There'd be no other

19 dynamics that would enter in that conversation, and I

20 just think before we -- we would establish that, how

21 will that be perceived by an outside public that right

22 now may well be questioning whether or not we have been

23 and followed a consistent pattern? And until they see

24 that, I'm not sure how many people sign up.

25 GOVERNOR SCOTT: Anything else?

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1 COMMISSIONER PUTNAM: Do you think this would have

2 a dissuasive effect on talent?

3 CFO ATWATER: I think what people have watched for

4 the last 45 days has clearly had a dissuasive

5 attraction to talent, and I think that we're on a very

6 good pathway here that could establish that confidence,

7 but right now I would understand -- I've -- I've never

8 had a job for life. I had performance measures in

9 every job I've been in. They were sized up, and I had

10 to hit them, or I would understand the consequences,

11 but there was -- there was in those places a clear and

12 consistent pattern by which we were all operating, and

13 I think we need to develop that process, and I think we

14 need to perform under it, and I think going in we need

15 to be very careful as to how we may state that last

16 point.

17 GOVERNOR SCOTT: Okay. So, Attorney General, I

18 just want to go to you a minute. Are you -- do you

19 believe we have the opportunity that we can vote on the

20 process or not?

21 ATTORNEY GENERAL BONDI: It's hyper technical. It

22 was in Commissioner Putnam's proposal, we all thought.

23 I think if we all agree here that we want to vote on

24 it, I don't see an issue with it.

25 GOVERNOR SCOTT: So, Commissioner Putnam, would

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1 you like to make the motion?

2 COMMISSIONER PUTNAM: I don't think we've totally

3 finished going through them yet.

4 GOVERNOR SCOTT: Oh, okay.

5 COMMISSIONER PUTNAM: Governor, one of the other

6 items was at minimum, cabinet agencies would be in

7 front of us on a quarterly basis.

8 GOVERNOR SCOTT: Right.

9 COMMISSIONER PUTNAM: There have been -- there are

10 some who are in front of us at every meeting, and there

11 are some who are a long way from appearing before us on

12 a quarterly basis. I think that in line with what you

13 and the CFO have laid out, it's not enough to just

14 review on an annual basis. You know, I think we need

15 to have some touch points, and so quarterly, is the

16 number I picked. I'm not weighted to it.

17 GOVERNOR SCOTT: I like it.

18 COMMISSIONER PUTNAM: If others have insight, I'm

19 all ears, but the related item to that is that I had

20 suggested that the cabinet agencies provide the cabinet

21 with their legislative budget requests and legislative

22 proposals not less than 30 days before the deadline to

23 submit them to you, Governor, and to the legislature.

24 That has -- that has happened some, and it has not

25 happened some, and I think we need to bring some

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1 consistency to that.

2 ATTORNEY GENERAL BONDI: Agreed.

3 COMMISSIONER PUTNAM: Additionally, I think that

4 we need to have a review of delegated authority. I

5 mean, this is something that -- there was a time when

6 the cabinet approved every contract of every cabinet

7 agency, and it was -- there was -- that swung the

8 pendulum too far in terms of micromanagement, but I

9 think we need to have a better sense of how much

10 authority's been delegated over time and evaluate where

11 that right and appropriate middle ground is.

12 I think that additionally it would be helpful,

13 given what we've all learned in the last 45 days, for

14 perhaps Pat Gleason in your office or someone who's

15 appropriate to make a presentation or have a workshop,

16 or however you characterize it --

17 ATTORNEY GENERAL BONDI: I highly suggest that.

18 COMMISSIONER PUTNAM: -- on -- on the appropriate

19 methods of cabinet communications.

20 And -- and then finally, I think it's important

21 that we post up the -- the minutes of cabinet aides

22 meetings since they're such an important part of what

23 eventually gets before us. So those are just some

24 additional thoughts.

25 GOVERNOR SCOTT: Okay. Let's -- why don't --

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1 let's see. So we got -- we got minutes -- minutes of

2 cabinet agencies. The -- we've got the review of

3 delegated authority.

4 COMMISSIONER PUTNAM: Yes, sir.

5 GOVERNOR SCOTT: All right. And was there

6 anything else?

7 COMMISSIONER PUTNAM: Sunshine training.

8 GOVERNOR SCOTT: And Sunshine training. Okay.

9 Okay.

10 ATTORNEY GENERAL BONDI: Governor, this vote is

11 building on a foundation, and that's why I think we can

12 support the proposal.

13 COMMISSIONER PUTNAM: But, you know, I mean, it's

14 not given -- I mean, some of the things that we've all

15 looked at each other and said I agree are specific, and

16 some of the things that we've looked at each other and

17 said I agree are a little bit more conceptual. It

18 wouldn't hurt for us to take what we've discussed here,

19 put words on paper, run it through cabinet aides, and

20 affirm it at the next -- ratify it at the next cabinet

21 meeting. That gives your lawyers -- because they're

22 all jumping around like a bunch of --

23 ATTORNEY GENERAL BONDI: Mexican -- what is it --

24 jumping beans.

25 COMMISSIONER PUTNAM: They're nervous. They're

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1 nervous about us making policy without -- without

2 having words on paper. So I would suggest that we take

3 what we discussed, put it on paper, have it reviewed by

4 counsel in each of our offices, but certainly,

5 obviously, with an eye toward constitutional

6 responsibilities, the variety that the constitution

7 speaks to in terms of how different cabinet agencies

8 are treated, as well as statute, and then we adopt it.

9 I think it's important that we ultimately get to a

10 formal adoption of cabinet policies and procedures.

11 Just as the House has House rules, the Senate has

12 Senate rules, clemency has specific rules, I think that

13 would be helpful for us, and but I don't -- I don't

14 necessarily know that we have to get every jot and

15 tittle perfect today. In fact, it might benefit from

16 baking for two weeks.

17 ATTORNEY GENERAL BONDI: I think you're saying

18 what I just said. I think we're voting on building a

19 foundation. I don't think we can lock ourselves in.

20 COMMISSIONER PUTNAM: Okay. No. We're -- we're

21 right here then.

22 CFO ATWATER: Governor, I think that's -- I think

23 that's been put very well. I would, in fact -- we may

24 be able to incorporate some of these ideas, and in

25 fairness, as the Commissioner said, some of this may

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1 come as late information where other was certainly

2 prepared far in advance. So I would hope that we could

3 try to integrate some of these ideas and have it on the

4 agenda for action at the meeting.

5 GOVERNOR SCOTT: So, Commissioner, did you want to

6 make a motion or not want to make a motion?

7 COMMISSIONER PUTNAM: I would move that we agenda

8 for action consideration the cabinet reform proposals

9 that we have discussed in this meeting after having

10 them reviewed by counsel and -- and as well discussed

11 at a cabinet aides meeting, which would give the public

12 yet another opportunity to view these suggestions.

13 GOVERNOR SCOTT: All right. I don't -- since

14 we're not doing it at this time, it doesn't really --

15 we don't have to have a motion. All right. So why

16 don't we do this then. The Attorney General, you'll

17 make a recommendation to us about whether we should or

18 shouldn't be doing this at the cabinet aides meeting.

19 ATTORNEY GENERAL BONDI: Personally, I think

20 that's a great idea. I think that gives more

21 transparency, and I don't think that reporters are

22 often in the cabinet aides meetings.

23 Are they, Rob? No.

24 I think that -- hold on.

25 GOVERNOR SCOTT: So why don't we just -- why don't

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1 we do this. Instead of making a decision now, let's --

2 why don't we review that, and at the next meeting,

3 we'll have a conversation about minutes of cabinet

4 aides meetings. All right? We're going to have a --

5 we'll have a discussion about a review of the right way

6 to do a review of delegation authority, which I think

7 is valid. All right. And we'll have a discussion, and

8 you'll come with a recommendation about Sunshine

9 training.

10 ATTORNEY GENERAL BONDI: And frankly, Governor, I

11 think it helps all of us, all each of us, to see the

12 minutes from our cabinet aides discussion, to know what

13 they're each talking about.

14 GOVERNOR SCOTT: So those three -- along with,

15 basically, what we've already, basically, felt

16 comfortable with, we're going to do these additional

17 three -- three things, and we'll do it at the next

18 meeting. Is everybody all right with that?

19 ATTORNEY GENERAL BONDI: Commissioner, did you

20 have anything else?

21 COMMISSIONER PUTNAM: What's that?

22 ATTORNEY GENERAL BONDI: Was there anything else?

23 COMMISSIONER PUTNAM: We've talked about the

24 reform proposals, the additional delegated issues,

25 Sunshine training. Did you get that one?

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1 GOVERNOR SCOTT: Yep. Minutes of cabinet aides.

2 COMMISSIONER PUTNAM: Minutes of cabinet aides,

3 delegated authority review. I believe so.

4 GOVERNOR SCOTT: So four things.

5 ATTORNEY GENERAL BONDI: And I'll have Pat Gleason

6 review it as well.

7 GOVERNOR SCOTT: Okay.

8 COMMISSIONER PUTNAM: And that includes the CFO's

9 agency value proposition.

10 GOVERNOR SCOTT: On the -- yeah. That's going to

11 be on the agenda. That will be -- that will sort of be

12 a separate -- this will see -- this thing sets up a

13 process. This is more information. We'll make a

14 decision on these three issues: Minutes of cabinet

15 aides meetings, review of delegated authority, and

16 Sunshine. That's separate from the leadership review,

17 and then the CFO's started that process is how we

18 actually do the agency.

19 CFO ATWATER: And I --

20 GOVERNOR SCOTT: And then eventually leadership.

21 CFO ATWATER: And I would hope, Governor, it would

22 be incorporated within the very conversation that --

23 some of this is the same conversation, in fact, that if

24 we're going to see these individuals quarterly, what is

25 it -- at what point along this way have we validated

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1 everything that we're seeing and we take action upon

2 that? This is the value proposition of that agency.

3 That is what we are stating. This is the mission that

4 we are agreeing will be the mission of that agency, and

5 I think that should be incorporated into our annual

6 processes as well.

7 GOVERNOR SCOTT: Then nobody will be surprised.

8 CFO ATWATER: Nobody will be surprised.

9 COMMISSIONER PUTNAM: And to further affirm, we

10 are -- we are tackling three agencies for that

11 conversation at the next meeting. Is that -- is that

12 correct?

13 GOVERNOR SCOTT: Let's -- I'm going to propose a

14 motion I think is saying what we're all saying.

15 CFO ATWATER: Can I say something else first,

16 Governor?

17 GOVERNOR SCOTT: Sure.

18 CFO ATWATER: Thank you. I think it would be far

19 better for us -- and I believe there are two cabinet

20 meetings set up for the month of March -- that -- that

21 we would take this -- before we would invite in those

22 three to begin that process with them, we would have

23 agreed upon ourselves how that's going to look and that

24 we won't be doing it on the fly with them standing in

25 front of us.

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1 So if I might recommend in the motion that you

2 would make that it be that we agree upon all of this

3 and that at the second March cabinet meeting is when

4 those first teams would come in to align themselves

5 with a conversation with us that achieves those.

6 GOVERNOR SCOTT: All right. So let's see if

7 we're -- so what we're going to do -- this is a motion.

8 We have a general agreement on this, subject to we're

9 going to get the Attorney General's response to make

10 sure it fits with the constitution. All right. We're

11 going to get --

12 ATTORNEY GENERAL BONDI: Statutes.

13 GOVERNOR SCOTT: -- we're going to -- and all the

14 statutes. We're going to have the Attorney General

15 come back and make a recommendation to us on our --

16 whether we should have minutes of our cabinet aides

17 meetings. As a general rule, we're all -- none of us

18 have an issue with that. Right? So we'll look at

19 that, and you'll come back. All right. We're going to

20 have to come back and have -- I think all of us will

21 come to say how should we do a review of delegated

22 authority. The Attorney General will have a

23 recommendation on Sunshine training. Right?

24 And we'll start with the next meeting of coming up

25 with a template of a review agency, rather than have

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1 those three. What we might want to do, and I think

2 what we ought to do is let's take those three and just

3 among the four of us and say, how -- what will be our

4 recommendation on how we review those agencies, but

5 without them there.

6 ATTORNEY GENERAL BONDI: DOR, OFR, and OIR?

7 GOVERNOR SCOTT: DOR, OFR, and OIR.

8 CFO ATWATER: You going to lay out a schedule,

9 Governor, for the next three and the next three and the

10 next three?

11 GOVERNOR SCOTT: Yep.

12 COMMISSIONER PUTNAM: So will there be -- for

13 those agency heads would who we have already either

14 hired or reconfirmed in a previous meeting, are they to

15 expect that in June they will be up for their --

16 GOVERNOR SCOTT: We won't make it in time,

17 Commissioner. I mean, we won't have enough meetings to

18 do all of them by then. I mean, that would -- that

19 would be the -- I think that would be the goal. We

20 probably won't get there this June. Probably, won't

21 get there until the next June, but if we do this the

22 right way, every quarter they'll come in. They'll have

23 objective measures clearly defined. The public, all of

24 us will know. They'll know.

25 We can -- no one's going to be surprised whether

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1 they're meeting their goals or not, with the goal that

2 by, hopefully, the next June we could do it annually

3 but -- in June, but we wouldn't get it done this year.

4 There's too many of them, but I think the -- I think

5 the CFO's process is right. I think first we come up

6 with our own template. Then we'll invite the agency

7 in. Once we agree with that, then we can review

8 talent.

9 COMMISSIONER PUTNAM: I think moving -- from a

10 moving forward standpoint, big picture standpoint,

11 cabinet view standpoint, we're moving toward a good

12 place. I think it's important that we -- and we raised

13 Swearingen. I think it's important that we affirm to

14 FDLE our support of where they are, what they're doing,

15 and our faith in their ability to continue to do their

16 job.

17 I think it would be good to pursue the most

18 serious allegation that's been made separate and apart

19 from this broad cabinet reform proposal, but I think

20 it's important that Swearingen and FDLE know that we

21 believe in the job that they're doing and have the

22 full -- they enjoy the full faith of this cabinet.

23 GOVERNOR SCOTT: So let's -- let's do one thing at

24 a time. We've got the motion that -- what we went

25 through first. Is that something that everybody's all

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1 right with?

2 CFO ATWATER: Yes.

3 ATTORNEY GENERAL BONDI: Yes. Absolutely.

4 GOVERNOR SCOTT: And second, did you want to make

5 a motion about Rick Swearingen?

6 CFO ATWATER: Well, can I -- let me -- I

7 appreciate that. Okay. I have stated from the outset

8 of my confidence in Rick Swearingen. My ask was that

9 it would be placed upon us to review that. I

10 understand that it wasn't, so I understand, again,

11 General, as you brought up, it's not an action item.

12 All -- all in this discussion, my desire is that we --

13 when someone is selected for a position and there is so

14 much conversation that follows -- much conversation

15 that I myself did not feel I had -- I was privy to --

16 that I believe it creates a perception that an

17 individual may have been selected for any other reason

18 but this is the right person for the job and if -- and

19 I've heard everyone else express that it was not-- it

20 was not needed to be revisited.

21 I hold my confidence in Rick Swearingen, so I'm

22 going -- I say that publicly today, but my desire was

23 is that if it was revisited in a fashion by which there

24 could be open conversation, I think, Commissioner, that

25 conversation is best had after everything else is made

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1 available, and I think all of us understand that there

2 are -- there are appropriate jurisdictions that are

3 looking into matters at this moment.

4 And so I don't know how -- I want you to know if

5 anybody from FDLE is listening, I believe Rick

6 Swearingen is a fine -- that Commissioner Swearingen is

7 a fine man and will do a fine job in the role, and if

8 there's anyone else that feels -- I do believe we

9 should have revisited it. I do believe that hopefully

10 there will be time we can revisit it so that we have --

11 anybody watching will know we've selected an individual

12 with all information in front of us, right man for the

13 job.

14 COMMISSIONER PUTNAM: What if we scheduled -- what

15 if we said June we'll do that for that agency?

16 CFO ATWATER: I think that will be fine.

17 COMMISSIONER PUTNAM: Because I understand your

18 concern, and I understand your support for him and for

19 the hardworking men and women at FDLE. Perhaps setting

20 up that review for this June, that would be akin to a

21 six-month review, and maybe that's a middle ground.

22 CFO ATWATER: It'd be a preference.

23 ATTORNEY GENERAL BONDI: And I'm going to, again,

24 revisit my conversation that I had when I talked to

25 Jerry Bailey. My first words to him -- and, again, I

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1 can -- we're only hearing what each other's saying

2 through what we're reading in the media because we

3 can't speak to each other. So when I heard, CFO, that

4 you wanted to revisit the appointment of Rick

5 Swearingen, the only way we get there is if Jerry

6 Bailey wanted his job back, and I called Jerry Bailey

7 and said, do you want your job back? And he said no,

8 and he told me that he believed Rick Swearingen was the

9 best person to replace him.

10 So that -- that's where I am with the appointment

11 of Rick Swearingen, and I can tell you he's a 30-

12 year -- I think his entire career with FDLE. You know,

13 of course, I deal with Swearingen more than you would,

14 CFO, which is probably a good thing in law enforcement,

15 but I can tell you that -- and Commissioner Bailey and

16 I agreed that -- that we could probably do a

17 countrywide search and not find a better man that Rick

18 Swearingen, and I believe that Commissioner Bailey

19 wants to do everything he can to keep that a smooth

20 transition and support Rick Swearingen, as do I.

21 CFO ATWATER: Governor, might we -- I think,

22 Commissioner, you've mentioned June. I -- my -- I

23 don't even know that this needs a motion, but my ask

24 would be is we schedule out each of these agencies

25 three at a time once we have our process in place, that

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1 if we might acknowledge that FDLE's visiting with us in

2 June is an appropriate time for us to align all our

3 expectations against the best measures we have and

4 to -- and to visit with the Commissioner at the time

5 and speak to the success at that time, and if there is

6 any action needed to take, that it would be addressed

7 at that time.

8 GOVERNOR SCOTT: Okay. All right. Anything else?

9 All right.

10 * * *

11 GOVERNOR SCOTT: Now I'd like to recognize Mike

12 Prendergast with the Department of Veterans' Affairs.

13 Good morning.

14 MR. PRENDERGAST: Good morning, Governor Scott,

15 General Bondi, CFO Atwater, and Commissioner Putnam.

16 Every day is Hero's Day in the great Sunshine State

17 with your leadership and fierce dedication to our

18 American patriots who have made everything that we have

19 in the United States of America so richly possible for

20 each and every one of our citizens and today's --

21 today's cabinet meeting has really been a testament to

22 the hard work that goes on among all of the state

23 agencies, from the Department of Economic Opportunity

24 to the Division of Forestry and everything in the

25 between, that makes possible our ability to say that

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1 Florida is the most veteran-friendly state in the

2 nation, so thank you very much on behalf of our 1.5

3 million veterans, their family members, and their

4 survivors.

5 Governor Scott, we have for the cabinet today

6 three agenda items for your consideration. Agenda Item

7 1 is the agency's first quarter report for fiscal year

8 2014 and 2015. We just have a couple of quick

9 highlights for you in the interest of time. In our

10 Bureau of Field Services and the Benefits and

11 Assistance Division led by Alene Tarter, who had to

12 depart earlier to attend a conference call, we attended

13 over 200 outreach events during that quarter alone, and

14 we provided services to 15,000 veterans and their

15 families whenever they attended those outreach events.

16 In our Bureau of the State Approving Agency, which

17 helps us ensure that out veterans and our family

18 members and survivors get access to their GI Bill

19 benefits, we actually accredited and approved 3,600

20 programs through the State Approving Agency, and that

21 marked a 52 percent increase for the agency over the

22 previous quarter -- previous fiscal year's same

23 quarter. Of course, we maintained a 99 percent

24 occupancy rate in our state veterans' nursing homes,

25 and we continue to excel in delivering world class care

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1 by having all six of our state veterans' nursing homes

2 now ranked at the five-star level.

3 We respectfully request approval of the first

4 quarter's report for the agency.

5 GOVERNOR SCOTT: Is there a motion to accept the

6 report?

7 ATTORNEY GENERAL BONDI: So moved.

8 GOVERNOR SCOTT: Is there second?

9 CFO ATWATER: Second.

10 GOVERNOR SCOTT: Any objections? Any comments?

11 Hearing none, the motion carries.

12 MR. PRENDERGAST: Thank you. Agenda Item 2 is the

13 agency's second quarter report for fiscal year '14 and

14 '15. For the second quarter, our Bureau of Veterans'

15 Claims advocated for more than 27,000 veterans and

16 their family members, and part of those efforts

17 resulted in $29 million in retroactive compensation to

18 our veterans and their family members.

19 Also, in the second quarter, FDVA began its work

20 with Florida Is For Veterans, Inc., the 501(c)(3)

21 nonprofit that was created as part of the legislative

22 session last year that came into being once we got the

23 appointments made, and as part of that process, the

24 folks at Florida Is For Veterans, Inc., went through

25 and conducted a pretty wide and strategic search, and

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1 they ended up tracking Bobby Carbonell, our former

2 Director of Legislative and Cabinet Affairs, to go on

3 and take on the responsibilities and roles as their new

4 Executive Director.

5 So with Bobby's departure, we immediately

6 advertised the vacancy in accordance with our

7 established procedures, and after conducting an open,

8 transparent, and highly competitive process to fill an

9 urgent and critical need in the agency and after

10 reviewing more than 57 applications, we found an

11 exceptionally outstanding candidate, who happened to be

12 part of our agency already.

13 And, Governor, it's someone that you know quite

14 well because she was our key leader for executing all

15 of the Governor's record service award ceremonies over

16 the past calendar year, and that's Captain Colleen

17 Krepstekies, an Operation Iraqi Freedom combat veteran

18 and also a member of our esteemed 53rd Infantry Brigade

19 of the Florida National Guard as a joined guardsman, so

20 we're going to work really hard for this legislative

21 session, but we're looking forward to great

22 contributions form Colleen for all her hard work.

23 (Applause.)

24 GOVERNOR SCOTT: She does a great job.

25 MR. PRENDERGAST: She absolutely does, Governor,

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1 and we're blessed to have her in the agency. Ladies

2 and gentlemen, we respectfully request approval of our

3 second quarter a report.

4 GOVERNOR SCOTT: Is there a motion to accept the

5 report?

6 ATTORNEY GENERAL BONDI: So moved.

7 GOVERNOR SCOTT: Is there a second?

8 CFO ATWATER: Second.

9 GOVERNOR SCOTT: Any comments? Any objections?

10 Hearing none, the motion carries.

11 MR. PRENDERGAST: Thank you, Governor. Agenda

12 Item 3 is the agency's recommendation for the Florida

13 Veterans' Hall of Fame Class of 2014. The Florida

14 Veterans' Hall of Fame recognizes and honors those

15 military veterans who, through their works and lives,

16 during or after military service, have made a

17 significant contribution to the state of Florida

18 through civic, business, public service, or other

19 pursuits. It is not a traditional military hall of

20 fame as it focuses on post military contributions to

21 the state of Florida and its citizens.

22 The Florida Veterans' Hall of Fame Council, an

23 appointed seven-member body, is an advisory panel that

24 is responsible for submitting to the Governor and

25 Cabinet a list of recommended nominees. In selecting

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1 its nominees for submission, the Council gives

2 preference to veterans who were either born in Florida

3 or adopted Florida as their home state.

4 The Florida Veterans' Hall of Fame Council

5 received a number of nominations from the field, and

6 reviewed each nominee submitted by the general public

7 using established criteria. The Council ranked the

8 nominees and submitted eight recommendations to our

9 agency for possible inclusion in the 2014 Hall of Fame.

10 Based on the Council's formal nominating criteria

11 and Florida Statutes, the Florida Department of

12 Veterans' Affairs is honored to recommend five of the

13 eight names for your approval. The nominees are the

14 late Rear Admiral Leroy Collins, Jr., from Tampa,

15 Florida; Major General James Lee Dozier, United States

16 Army retired; Dr. and Colonel and former Surgeon

17 General of the great state of Florida, Colonel Frank

18 Farmer, who served in Vietnam with the Army and retired

19 from the Air Force as a full Colonel; Chief Master

20 Sergeant Gene Cecil Johnson, United States Air Force

21 retired, and as we observe Black History Month, Chief

22 Johnson will be the first African-American inductee, if

23 so voted today; and finally, Lieutenant General

24 Lawrence F. Snowden, United States Marine Corps retired

25 and a Tallahassee native.

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1 Moving forward, we will work with your respective

2 offices to schedule a ceremony at the Capitol so that

3 we can formally honor the nominees as they are inducted

4 into the Hall of Fame with their names placed on the

5 wall near the Capitol's rotunda.

6 Before we proceed, here to speak on Agenda Item 3

7 is Mr. David McAllister, Sons of Confederate Veterans,

8 Florida Division.

9 MR. McALLISTER: Good morning, Governor and

10 cabinet members. I'm David McAllister, PO Box 7343,

11 Wesley Chapel, Florida. I advocate for appreciation of

12 history and veterans and especially of the period of

13 the war between the states. I am the Chairman of the

14 Sons of Confederate Veterans, Florida Division, Florida

15 Veterans' Hall of Fame Committee. I am here with Mr.

16 H. K. Edgerton, a veteran of the United States Army;

17 former President of the NAACP of Ashville, North

18 Carolina; Chairman Emeritus of the Southern Legal

19 Resource Center; winner of the CSS Hunley Award, named

20 for the famous confederate submarine, which is the

21 highest accolade of the National Sons of Confederate

22 Veterans for his -- which he won for his defense of all

23 southerners' civil rights and the defense of the good

24 name of the confederate veteran.

25 Honorable Governor, ladies and gentlemen, it would

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1 be a sad day when the Florida cabinet is complicit in

2 breaking Florida law. Failure to act and hopefully to

3 approve all eight of the recommendations of the Florida

4 Veterans' Hall of Fame Council for 2014 violates

5 Florida Statute 265.03. The Director of the Department

6 of Veterans' Affairs has no authority to delay this

7 issue past the calendar year of 2014, nor has he the

8 authority to exclude or include certain Florida

9 veterans and not others arbitrarily and unilaterally.

10 I'm calling on Attorney General Pam Bondi to

11 investigate these violations of Florida Statute.

12 Florida Statute Number 1.01, Definitions, defines the

13 term "veteran". The term "veteran" means a person who

14 served in the active military, naval, or air service

15 and who was discharged or released under honorable

16 conditions only, or who later received an upgraded

17 discharge under honorable conditions. That's all. The

18 enabling statute for the Hall of Fame says it is the

19 intent of the legislature to recognize and honor those

20 military veterans who, through their works and lives,

21 during and after military service, have made a

22 significant contribution to the state of Florida.

23 These are the three men that the Director deems

24 not qualified. The first is Governor and earlier

25 General Edward A. Perry, who led the Florida Brigade at

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1 the Battle of Chancellorsville; Colonel and later the

2 first Inspector General David Lang, who led the Florida

3 Brigade at Gettysburg; Private and later Sergeant

4 Samuel Pasco, a Harvard graduate who came to Florida,

5 signed up, was wounded at the Battle of Missionary

6 Ridge, became a POW.

7 Now, Governor Perry, when he was Governor, founded

8 and started the university system in Florida. He also

9 started the Florida Veterans' Pension Plan. Inspector

10 General David Lang is known as the Father of the

11 Florida National Guard. Samuel Pasco, after the war,

12 became a lawyer, was elected to the Florida

13 legislature, Chairman of the Constitutional Convention,

14 was elected by the legislature to be a United States

15 Senator from Florida where he was on the Panama Canal

16 Commission for the nation, and he's the namesake of

17 Pasco County here in the state of Florida.

18 These are people, men, obviously, certainly,

19 worthy candidates. I ask that you withhold your

20 approval of any veterans for the Florida Veterans' Hall

21 of Fame until all veterans can be recognized. The

22 whole world is actually watching Florida. What you do

23 is important way beyond the plaque in the rotunda of

24 the Capitol building. Would you deny Holt Collier or

25 Napoleon Winbush, who is a black confederate and whose

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1 grandson, Nelson Winbush, lives here in Florida and is

2 a member of the Sons of Confederate Veterans? The

3 President, himself, is qualified for full voting

4 membership in the Sons of Confederate Veterans.

5 Where's the reconciliation in Florida for

6 confederate veterans? Where's the inclusion of their

7 decendents in the diversity of this state? If you

8 believe that it's important that no veteran be left

9 behind and that no veteran is a second-class citizen,

10 then remember this about the message that you send with

11 your vote today. How we treat the veterans of 150

12 years ago is how the veterans of today will be treated

13 150 years from now. Thank you very much.

14 GOVERNOR SCOTT: Thank you.

15 Do you have a question?

16 ATTORNEY GENERAL BONDI: Yes, Governor. No, I

17 don't have a question, but I would ask that the Colonel

18 come up, and if he could, with his general counsel,

19 they are the entity who can address this, the general

20 counsel for Veterans' Affairs.

21 MR. PRENDERGAST: Thank you, General Bondi,

22 Governor Scott, CFO Atwater, and Commissioner Putnam.

23 In fact, it's not a technicality. It's a reality, and

24 I would like for my general counsel at the Department

25 of Veterans' Affairs to speak to the essence of the

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1 matter so that we can discuss it in the legal terms

2 that are appropriate for the statutes of the state and

3 also to the U.S. Code. Mr. David Herman.

4 MR. HERMAN: Good afternoon. Thank you. Very

5 briefly, the nomination guidelines for the Florida

6 Veterans' Hall of Fame was approved in 2012. They're

7 on the public website. They're the same criteria in

8 effect today as they were when they were approved. The

9 nominees for the Florida Veterans' Hall of Fame must

10 meet the following criteria: They must have received

11 an honorable discharge from the United States Armed

12 Forces and provide official documentation verifying

13 discharge status.

14 Regrettably, three of the nominations that were

15 given to the Executive Director of the Department of

16 Veterans' Affairs did not meet this criteria. They

17 were -- served with the Confederate States of America,

18 not the United States Armed Forces, and no discharge

19 documentation showing their honorable discharge status

20 was provided. Additionally, the nominees must meet the

21 definition of veteran as defined in Section 1.01 of the

22 Florida Statutes. This definition does not reference

23 the Confederate States of America.

24 Given the failure to meet this criteria, the

25 Department of Veterans' Affairs had the authority and

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1 responsibility to not advance that recommendation. The

2 Florida Department of Veterans' Affairs appreciates and

3 thanks the Florida Veterans' Hall of Fame Council for

4 their work and their expertise in developing this list

5 of nominees. However, per Florida law, the Florida

6 Veterans' Hall of Fame Council is an advisory council.

7 They provide recommendations. They submit those

8 recommendations. Then, as the Council exists within

9 the Department of Veterans' Affairs, they provide that

10 list to the Executive Director, who then makes the

11 recommendations from there to the Governor and Cabinet

12 for a decision. I can answer other questions, if

13 needed.

14 COMMISSIONER PUTNAM: I have a question. Are

15 there any inductees in the Veterans' Hall of Fame who

16 served prior to Florida's statehood who were

17 territorial members of our militia?

18 MR. HERMAN: No, sir.

19 COMMISSIONER PUTNAM: And would they be eligible?

20 MR. HERMAN: If they meet the criteria, sir.

21 COMMISSIONER PUTNAM: But they wouldn't meet your

22 criteria because they wouldn't have served in the

23 United States Army. They would have served in some

24 militia or territorial militia.

25 MR. McALLISTER: Amen.

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1 COMMISSIONER PUTNAM: Do the nominees -- when you

2 say "nominees," how many submissions were there? How

3 many names were put forward for consideration?

4 MR. HERMAN: There were eight nominees put forward

5 for consideration, sir.

6 COMMISSIONER PUTNAM: I mean, of the pool of

7 people who were considered --

8 GOVERNOR SCOTT: So you -- Commissioner, you're

9 saying how many nominees to the commission?

10 COMMISSIONER PUTNAM: Yes.

11 ATTORNEY GENERAL BONDI: Overall.

12 GOVERNOR SCOTT: How many overall nominees?

13 MR. PRENDERGAST: In excess of 50 this year.

14 MR. McALLISTER: About 40, 50 this year.

15 GOVERNOR SCOTT: Okay. Let's -- let's let the

16 person at the microphone speak.

17 MR. HERMAN: I beg your pardon. About 50, sir.

18 COMMISSIONER PUTNAM: Okay. So the eight that

19 were put forward went through the same selection

20 process. They were evaluated, ranked, compared against

21 the broader pool of 50, and it wasn't until the end of

22 the process that you discovered or interpreted that

23 three should not be eligible. Is that correct?

24 MR. HERMAN: After the list was submitted to the

25 Executive Director, sir, we reviewed them.

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1 COMMISSIONER PUTNAM: So you all don't have

2 anybody on the committee? You don't staff the

3 committee? You don't provide administrative support?

4 MR. HERMAN: The Florida Veterans' -- excuse me.

5 The foundation, the Florida Veterans' Foundation staffs

6 the Hall of Fame, sir.

7 GOVERNOR SCOTT: Say that one more time.

8 MR. HERMAN: I'm sorry. The Florida Veterans' --

9 excuse me. The Florida Veterans' Foundation provides

10 staff support for the Florida Veterans' Hall of Fame

11 Council.

12 GOVERNOR SCOTT: So if there had been a review of

13 the statute at the time, that's who would have done the

14 review? You were -- at that point, you were not asked.

15 Right?

16 MR. HERMAN: Yes, sir, Governor.

17 GOVERNOR SCOTT: Okay. Thank you very much.

18 Any other questions?

19 COMMISSIONER PUTNAM: I'll be happy to yield, if

20 others have questions. Otherwise, I'll --

21 GOVERNOR SCOTT: If you have more, go ahead.

22 COMMISSIONER PUTNAM: I think you all screwed this

23 up.

24 MR. McALLISTER: Amen. Amen.

25 COMMISSIONER PUTNAM: Sir, you're not helping me.

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1 We don't need to relitigate the Civil War or the war

2 between the states, whichever camp you come down on.

3 Kirby Smith is one of our two state honorees in

4 the nation's capitol. Under your logic, we should

5 remove that, and that debate has occurred before. The

6 legislature could have that debate again and make a

7 different decision, but it's not -- there clearly have

8 been people pre-statehood who made a difference in our

9 state. There clearly were people who were part of the

10 state's legal decision to succeed who, at the

11 conclusion of hostilities, rolled their sleeves up and

12 helped make Florida what it has become today. Good,

13 bad, and ugly.

14 So if you're throwing these guys out on a

15 technicality, that's just dumb, and we don't need to

16 relitigate this. If it needs further clarification by

17 the legislature, I'm not willing to hold up five

18 deserving people to wait on three, but I'm sure

19 irritated that it gets all the way to the Cabinet to

20 relitigate the war between the states in 2015.

21 GOVERNOR SCOTT: All right. So we have a choice.

22 All right. We can say that we want to -- your legal

23 advice is that we don't have a choice. Right?

24 MR. HERMAN: Yes, Governor.

25 GOVERNOR SCOTT: All right. So we have a choice.

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1 We can either say we'll wait, if the legislature wants

2 to come back and amend the existing statute and wait

3 for the Class of 2014, all right, we can not take your

4 advice, or we can approve these five, and then we'll

5 wait and see if the legislature changes the law. Are

6 those the three choices we have?

7 MR. HERMAN: Yes, Governor.

8 GOVERNOR SCOTT: Okay. Does anybody have any

9 comments or suggestions?

10 COMMISSIONER PUTNAM: One question. Who has

11 ultimate author -- I assume since we're voting on

12 this -- who has ultimate authority to make this

13 decision?

14 MR. HERMAN: You do, sir, the Governor and

15 Cabinet, sir.

16 COMMISSIONER PUTNAM: Well, then I would move that

17 we adopt the five you've put forward and that we

18 provisionally adopt the three, pending clarification

19 from the Florida legislature this legislative session,

20 and then you guys can go to the legislature and defend

21 why you think pre-statehood soldiers who helped make us

22 a state and those who served during the period of

23 hostilities don't deserve to be recognized.

24 ATTORNEY GENERAL BONDI: Just -- Governor, may I?

25 Just so you understand, it has to be pending

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1 legislative approval this session to make it legal.

2 GOVERNOR SCOTT: Attorney General, will you say

3 that and explain that one more time?

4 ATTORNEY GENERAL BONDI: Well, I see Commissioner

5 Putnam's point, but we have to have it -- we're being

6 told that that's not the law right now. I don't have

7 it in front of me. So according to the general

8 counsel, it would have to be pending legislative

9 approval.

10 GOVERNOR SCOTT: Right.

11 ATTORNEY GENERAL BONDI: For the three additional

12 members? Sir, for the three additional members, for

13 the three, you understand that it would have to be

14 pending legislative approval?

15 COMMISSIONER PUTNAM: Legislative clarification --

16 ATTORNEY GENERAL BONDI: Clarification.

17 COMMISSIONER PUTNAM: -- that, in fact, those who

18 served prior to 1845 and those who served during the

19 period that the state of Florida was not a part of the

20 United States of America would be just as eligible as

21 all others who have served the state of the Florida.

22 ATTORNEY GENERAL BONDI: And I don't think

23 anyone's disagreeing with that, but that's not the law

24 as it currently exists, according to the general

25 counsel. Is that correct?

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1 MR. HERMAN: Yes, Attorney General.

2 ATTORNEY GENERAL BONDI: So we can --

3 GOVERNOR SCOTT: All right. Let's go back for a

4 second.

5 ATTORNEY GENERAL: -- approve them pending.

6 GOVERNOR SCOTT: Colonel, can you -- can you give

7 us the background of the three that don't fit within

8 the definition of today so we know what we're voting

9 on?

10 MR. PRENDERGAST: I don't have their biographies

11 with me this morning, Governor Scott, but all of the

12 cabinet aides were provided copies of their biographies

13 prior to the cabinet aides meeting last week. The

14 three gentlemen in question are Samuel Pasco, David

15 Lang and Edward Perry.

16 ATTORNEY GENERAL BONDI: May I ask a question?

17 MR. PRENDERGAST: And they -- their -- their

18 packets that were submitted did not contain anything

19 whatsoever indicative of active federal service in the

20 Armed Forces of the United States of America in

21 accordance with our statutes and also in accordance

22 with the nominating guidelines for the Florida

23 Veterans' Hall of Fame Council, and those guidelines

24 for the 2014 class remain unchanged for the 2015 class

25 that is currently advertised out on the street.

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1 ATTORNEY GENERAL BONDI: But were they simply just

2 crossed off the list because they didn't qualify

3 statutorily, or you're saying if they qualified

4 statutorily, you still wouldn't have nominated them? I

5 think that's the question.

6 GOVERNOR SCOTT: Yeah. You probably didn't make

7 that decision because you said they didn't meet the

8 qualifications.

9 MR. PRENDERGAST: They did not meet the initial

10 qualifications.

11 GOVERNOR SCOTT: So why don't we do -- why don't

12 we -- I think we're all okay with this.

13 COMMISSIONER PUTNAM: He's one of the

14 commissioners who could shed some light on how they

15 made their consideration.

16 ATTORNEY GENERAL BONDI: Commissioner Hart --

17 GOVERNOR SCOTT: Okay. Can we -- here's my

18 biggest concern. I didn't review the other three

19 because I didn't -- they weren't presented.

20 ATTORNEY GENERAL BONDI: Never made it to us.

21 GOVERNOR SCOTT: So I don't -- I don't feel

22 comfortable voting on something I have no -- I'd want

23 to read it first. So it seems to me what we ought to

24 do is I think -- I don't think your resolution is a bad

25 idea or your motion's a bad idea, but I'd like to

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1 postpone it to the next meeting, and let's all read

2 their backgrounds and make sure we know what we're

3 approving.

4 ATTORNEY GENERAL BONDI: Because they were just

5 automatically disqualified is what I'm understanding,

6 so, Governor, if it's appropriate --

7 COMMISSIONER PUTNAM: That's an important point.

8 My understanding is they bubbled up to the top and were

9 selected as one of the eight winners. They weren't --

10 they weren't crossed off at the beginning. They were

11 crossed off after being determined they were among the

12 eight vets.

13 MR. PRENDERGAST: They were -- they were voted by

14 the Florida Veterans' Hall of Fame Council and

15 forwarded as the eight recommendations for the Class of

16 2014, and after we received the list, we went through

17 and did our due diligence to ensure that the Council

18 had complied with the Hall of Fame guidelines, but

19 also, we went back to the U.S. Code and reviewed the

20 statutory language in the U.S. Code and as well as

21 Florida Statutes, and we followed Florida Statutes

22 1.01, but we also went back to Title 38 that talks

23 specifically about definitions of what a veteran is,

24 and Title 38 says that a veteran provide -- means a

25 person who served in the active military, naval, or air

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1 service and who was discharged or released there from

2 under conditions other than dishonorable.

3 The term "Armed Forces" means the United States

4 Army, the United States Navy, the United States Marine

5 Corps, the United States Air Force, and the United

6 States Coast Guard, including reserve components

7 thereof. The term "active duty" means full-time duty

8 in the armed forces, other than duty for training, and

9 the term "active military" for any of those services

10 means active duty, that they were activated under the

11 statutory authority of the United States of America to

12 serve, and then received a discharge certificate

13 indicating that they were indeed a veteran.

14 We have men and women in our National Guard all

15 across this county who have never been activated to

16 serve in support of a Title 10 responsibility, and

17 various states have done a lot of great things to make

18 sure that those men and women are taken care of,

19 appreciated and respected and thanked for their

20 service, but that does not automatically make them

21 eligible for veterans' benefits under Title 38 of the

22 U.S. Code.

23 ATTORNEY GENERAL BONDI: Governor, I'd like to

24 review the applications. I haven't had a chance to

25 review them.

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1 GOVERNOR SCOTT: Here's -- it seems to me what we

2 ought to do is two things. One, we got to review the

3 applications. That's one. Two, I'd like to have the

4 Attorney General review the -- review the statute and

5 give us your advice.

6 ATTORNEY GENERAL BONDI: I think my general

7 counsel's all over it back there. So, yes, but that's

8 going to take time. We're going to have to look at

9 that and speak with all of these gentlemen, and I'd

10 like to speak with Commissioner Hart also who was on

11 the committee, the selection committee.

12 GOVERNOR SCOTT: Commissioner?

13 COMMISSIONER PUTNAM: Governor, I certainly

14 appreciate this good conversation, and I'm going to

15 withdraw my motion that calls for their conditional

16 approval so that everyone can have an opportunity to

17 research this further, but as a policy matter, it's not

18 my view that we should exclude based on the period of

19 time during which they served, and clearly, there's no

20 character or other features about their biography that

21 disqualify them, other than the period of time during

22 which they served their state, or the commission would

23 not have elevated them to the top eight, but everyone

24 should do their due diligence.

25 So I would withdraw my motion and move that we

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1 approve the five that are put forward and urge the

2 Florida Department of Veterans' Affairs, a cabinet

3 agency, to seek legislative clarification that will

4 allow members of the pre-statehood militia and the

5 period of time during the succession to be eligible,

6 given all the other factors, for inclusion -- for

7 consideration into the Hall of Fame.

8 GOVERNOR SCOTT: Commissioner, I want you to think

9 about something, though. If we do it that way, we

10 cannot go back -- we can't go back and include them in

11 this class. Right? I think the law right now is you

12 can only do five. Right?

13 MR. PRENDERGAST: No. Governor, we can -- the

14 Hall of Fame Council can nominate up to 20 for your

15 consideration.

16 GOVERNOR SCOTT: All right. So I'm fine with

17 doing the five then, as long as we actually review it

18 and do more, if we want to.

19 ATTORNEY GENERAL BONDI: And let me -- can I

20 clarify with general counsel? So they don't all have

21 to be done -- I haven't read -- they don't have to all

22 be done at the same time. Correct? So if we do five

23 today, could we later add additional ones?

24 MR. HERMAN: I believe so, Attorney General.

25 Excuse me. It's hard to hear. The statute says the

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1 department can submit a list of names up to 20, so it's

2 at the discretion of the Governor and Cabinet to choose

3 some, all, or none of that list.

4 ATTORNEY GENERAL BONDI: I don't -- no offense. I

5 just don't feel that that's a solid enough answer right

6 now. Governor, what I would ask currently is that we

7 just withdraw this from today, not defer it, just

8 withdraw it where we have time to look at this entire

9 class because I don't want to mistakenly -- and you

10 presented great names, but there may be additional

11 great names. I don't want to mistakenly add five

12 people and then not be able to come back.

13 GOVERNOR SCOTT: Me either.

14 ATTORNEY GENERAL BONDI: So I would just ask at

15 this time, based on the confusion, to withdraw it.

16 Commissioner Hart is nodding, and then we can still

17 revisit the Class of 2014 honorees, Commissioner

18 Putnam, because I don't want there to be a loophole in

19 here that could leave people out.

20 COMMISSIONER PUTNAM: Okay.

21 GOVERNOR SCOTT: Okay. Commissioner Putnam, are

22 you going to withdraw yours?

23 COMMISSIONER PUTNAM: I'll withdraw my motion.

24 GOVERNOR SCOTT: Okay. So we have a motion that

25 we're going to withdraw this.

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1 ATTORNEY GENERAL BONDI: Withdraw.

2 GOVERNOR SCOTT: What the plan is we're going to

3 bring it back after you have the opportunity to review

4 it, after we have the opportunity to review all of

5 the -- at least all the eight.

6 ATTORNEY GENERAL BONDI: And we may -- it sounds

7 like we do need legislative clarification, and we may

8 be able to -- I have to look at the law and see if we

9 can approve additional members conditionally, you know,

10 upon legislative clarification.

11 Gentleman, you want to do this the right way, and

12 that's what we're all trying to do, the general

13 counsel, the Colonel, everyone here, Commissioner Hart,

14 so we want do this in -- and with the proper decorum

15 and respect.

16 GOVERNOR SCOTT: Okay. There's a motion. Is

17 there a second?

18 ATTORNEY GENERAL BONDI: Second.

19 GOVERNOR SCOTT: Any comments or objections?

20 COMMISSIONER PUTNAM: Wasn't it your motion?

21 ATTORNEY GENERAL BONDI: Oh, I thought it was your

22 motion.

23 GOVERNOR SCOTT: Okay. It's the Attorney

24 General's motion.

25 COMMISSIONER PUTNAM: I'll second her motion.

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1 GOVERNOR SCOTT: All right. So any comments or

2 objections?

3 ATTORNEY GENERAL BONDI: Just one question for the

4 general counsel because I don't want to -- I don't want

5 to cause confusion with the Class of 2014. There's no

6 time frame on this. Right? We're okay. We're already

7 in 2015. We're okay?

8 Sir, please -- please have proper decorum. We're

9 trying to help you. Okay? You're military. You

10 should understand this.

11 MR. HERMAN: No, ma'am. I believe there's not a

12 specific limitation.

13 ATTORNEY GENERAL BONDI: Okay. So that helps you.

14 All right. Thank you.

15 GOVERNOR SCOTT: Okay. So the motion we're doing,

16 just to make sure everybody knows, we're withdrawing

17 this issue, but the plan is we're going to review it.

18 You're going to give us your advice on -- sorry -- on

19 the law, and then we'll review those additional

20 candidates, and we'll come back, hopefully next

21 meeting.

22 All right. All in favor aye?

23 (Unanimous ayes.)

24 GOVERNOR SCOTT: Opposed?

25 (None.)

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1 GOVERNOR SCOTT: Motion carries.

2 MR. PRENDERGAST: Thank you, Governor and Cabinet.

3 GOVERNOR SCOTT: Next, we have John Steverson with

4 the Department of Environmental Protection.

5 MR. STEVERSON: Good afternoon, Governor and

6 Cabinet. There are three items on the Board of

7 Trustees' agenda. I will be as quick as I possibly

8 can, but if you could grant me -- grant me one moment

9 of latitude, I would like to mention that Operation

10 Outdoor Freedom events, those hunts are fantastic.

11 Where I just recently came from, the Northwest Florida

12 Water Management District, we'll be holding our third

13 annual hunt this year. We got that going with the help

14 of Commissioner Putnam's office and Executive Director

15 Nick Wiley, and I plan to be there skinning deer first

16 thing Saturday morning. I invite you to come by. It's

17 just a great chance to give back just a little bit to

18 those who gave so much.

19 Our first item is submittal of the minutes of the

20 November 12th and December 9th cabinet meetings.

21 GOVERNOR SCOTT: Is there a motion to approve this

22 item?

23 ATTORNEY GENERAL BONDI: So moved.

24 GOVERNOR SCOTT: Is there a second?

25 CFO ATWATER: Second.

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1 GOVERNOR SCOTT: Any comments or objections?

2 Hearing none, the motion carries.

3 MR. STEVERSON: Item 2 is consideration of a

4 request to extend an existing Florida Rock Industry's

5 mining lease for ten years, providing certainty that

6 they will be able to continue operations in order to

7 complete their mining activity as permitted. In return

8 the state will receive an increase in the lease rental

9 and royalty rates in line with today's market values.

10 The initial minimal annual -- excuse me -- annual

11 rental payment will be $530,000 to be credited against

12 a 75-cent-per-ton royalty payment. The royalty payment

13 is based on current appraisal and will be a 50 percent

14 increase from what Florida Rock is currently paying.

15 Now in the past, the Board of Trustees has found

16 it in the public interest to extend this lease, and

17 here today we're with a similar request due to multiple

18 factors, including a recession, which decreased the

19 demand for lime rock, an injunction which ceased all

20 mining operations in this area from 2007 to 2010. The

21 proposed lease extension will add new jobs and

22 additional dollars to the local community.

23 There will also be an approximate total net gain

24 of $18 million to the state from increased royalties in

25 payments. Florida Rock is in compliance with its

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1 regulatory permits as well as current on its rental

2 payments to the state. The department recommends

3 approval.

4 GOVERNOR SCOTT: Is there a motion to approve?

5 COMMISSIONER PUTNAM: So moved.

6 GOVERNOR SCOTT: Is there a second?

7 ATTORNEY GENERAL BONDI: Second.

8 GOVERNOR SCOTT: Any comments or objections?

9 Hearing none, the motion carries.

10 MR. STEVERSON: At this time, Governor, the next

11 Rural and Family Lands Protection Program item will be

12 presented by Jim Karels.

13 GOVERNOR SCOTT: Thank you.

14 MR. KARELS: Governor and Cabinet, consideration

15 for the Land Government Conservation Easement

16 consideration of, one, an option agreement to acquire a

17 620-acre perpetual conservation easement over land

18 planning within the land family project of the

19 Department of Ag Florida Forest Service Rural and

20 Family Lands Program from Raymond Land and Annette

21 Land, and, two, to designate DACS Florida Forest

22 Service as the monitoring agency.

23 The perpetual easement is located in Dixie County.

24 The perpetual easement is on 620 acres and is in

25 consideration at a value of $525,000. The easement, as

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1 I said, is a 620-acre easement, a portion of the total

2 land family project, which consists of 2,612 acres.

3 The agricultural operations on the Land family is

4 active timberland management, pine straw harvesting,

5 and cow/calf operations and including a Cracker cow

6 herd that's traced back all the way to the Spanish

7 explorers. The perpetual conservation easement will be

8 monitored by the Florida Forest Service. Staff and the

9 Department of Ag recommend approval of this easement.

10 GOVERNOR SCOTT: Is there a motion to approve?

11 ATTORNEY GENERAL BONDI: Just a quick question,

12 Governor.

13 Did you answer -- what is the percentage of fee

14 simple market value that we're paying for this

15 easement?

16 MR. KARELS: On this easement, it's 8.46 percent

17 of value.

18 ATTORNEY GENERAL BONDI: Thank you.

19 GOVERNOR SCOTT: Is there a motion to approve?

20 ATTORNEY GENERAL BONDI: So moved.

21 GOVERNOR SCOTT: Is there a second?

22 CFO ATWATER: Second.

23 GOVERNOR SCOTT: Any comments or objections?

24 Hearing none, the motion carries.

25 MR. KARELS: Thank you.

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1 GOVERNOR SCOTT: Thank you.

2 Thank you, John.

3 Next is Ash Williams with the State Board of

4 Administration. Afternoon, Ash.

5 MR. WILLIAMS: Good afternoon, Governor, Trustees.

6 Our usual update as an opener, as of last night's

7 close, February 4, fiscal year to date the fund is up

8 1.22 percent. That's 102 basis points ahead of target.

9 The balance stands at $147.1 billion. That's actually

10 down 2 billion from the beginning of the fiscal year.

11 Item 1, request approval of the minutes for the

12 November 12 and December 9, 2014, meetings.

13 GOVERNOR SCOTT: Is there a motion to approve?

14 ATTORNEY GENERAL BONDI: So moved.

15 GOVERNOR SCOTT: Is there a second?

16 CFO ATWATER: Second.

17 MR. WILLIAMS: Thank you. Item 2, request

18 approval of a fiscal determination in connection with

19 the issuance of an amount not exceeding $13,300,000

20 Florida Housing Finance Corporation Multifamily

21 Mortgage Revenue Bonds. This is for the acquisition

22 and rehabilitation of a multifamily residential

23 facility in Duval County, Jacksonville, Florida.

24 Request approval.

25 GOVERNOR SCOTT: I'm going to go back to the last

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1 one. Were there any comments or objections?

2 ATTORNEY GENERAL BONDI: No.

3 GOVERNOR SCOTT: All right. Hearing none, that

4 one carries. Now is there a motion to approve this

5 item?

6 (Commissioner Putnam stepped out.)

7 ATTORNEY GENERAL BONDI: So moved.

8 GOVERNOR SCOTT: Is there a second?

9 CFO ATWATER: Second.

10 GOVERNOR SCOTT: Any comments or objections?

11 Hearing none, the motion carries.

12 MR. WILLIAMS: Thank you. Item 3, request

13 approval of a fiscal determination in connection with

14 the issuance of an amount not exceeding $7,300,000

15 Florida Housing Finance Corporation Multifamily

16 Mortgage Revenue Bonds. This is another acquisition

17 and rehabilitation project in Jackson County, Florida,

18 Marianna Gardens Apartments. Request approval.

19 (Commissioner Putnam returned.)

20 GOVERNOR SCOTT: Is there a motion to approve?

21 ATTORNEY GENERAL BONDI: So moved.

22 GOVERNOR SCOTT: Is there a second?

23 CFO ATWATER: Second.

24 GOVERNOR SCOTT: Any comments or objections?

25 Hearing none, the motion carries.

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1 MR. WILLIAMS: Thank you.

2 GOVERNOR SCOTT: Thank you.

3 * * *

4

5

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1 C E R T I F I C A T E

2 STATE OF FLORIDA

3 COUNTY OF HILLSBOROUGH

4

5 I, Penny M. Appleton, Court Reporter for the

6 Circuit Court of the Thirteenth Judicial Circuit of the

7 State of Florida, in and for Hillsborough County,

8 DO HEREBY CERTIFY, that I was authorized to and

9 did, report in shorthand the proceedings and evidence in the

10 above-styled cause, as stated in the caption hereto, and

11 that the foregoing pages constitute a true and correct

12 transcription of my shorthand report of said proceedings and

13 evidence.

14 IN WITNESS WHEREOF, I have hereunto set my hand in

15 the City of Wesley Chapel, County of Pasco, State of Florida

16 this 15th day of February, 2015.

17

18

19

20

21

22

23 ___________________________

Penny M. Appleton

24 Court Reporter

Notary Public

25

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727.725.9157 [email protected] & ASSOCIATES COURT REPORTING

Page 87

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their 4:9,10,10 7:217:23,24 14:6,21

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727.725.9157 [email protected] & ASSOCIATES COURT REPORTING

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Page 105: STATE OF FLORIDA GOVERNOR AND CABINET MEETINGSTATE OF FLORIDA GOVERNOR AND CABINET MEETING February 5, 2015 9:00 a.m. Florida State Fair Bob Thomas Equestrian Center 4800 U.S. Highway

727.725.9157 [email protected] & ASSOCIATES COURT REPORTING

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727.725.9157 [email protected] & ASSOCIATES COURT REPORTING

Page 107

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727.725.9157 [email protected] & ASSOCIATES COURT REPORTING

Page 108

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ERRATA SHEET

Meeting of the Governor and Cabinet

Meeting Date: February 5, 2015

Page Line Error or Change Reason for Change

4 8 “leader” should be “leaders”

7 25 strike “or”; insert “toward”

8 3 strike “just for a”; insert “at this very”

11 5 strike “think”; insert “know”

11 15 insert “have” after “to”

12 9 strike “a”; insert “in”

16 8 strike “this”; insert “the”

18 20 strike “you know”

22 12 insert “just” after “my general counsel”

26 13 strike “I played”; insert “I’ve laid”

30 12 strike “I’m”; insert “I”

30 12 strike “hearing”; insert “hear”

38 22 strike “thought”; insert “saw it”

43 8 insert “of” between “consideration” and “the cabinet reform”

45 16 insert “training” after “Sunshine”

52 17 strike “that”; insert “than”

79 3 change “John” to “Jon”

81 5 Change “Commissioner Putnam” to “CFO Atwater”

81 15 change “Government” to “Family”

81 18 change “planning” to “lying”

81 18 change “land family” to “Land Family”

81 20 change “Raymond” to “Raymon”

82 2 change “land family” to “Land Family”

82 16 change “8.46” to “84.6”

83 2 change “John” to “Jon”