T H E C A B I N E T
S T A T E O F F L O R I D A
Representing:
DISCUSSION RE: ELIAN GONZALEZ
STATE BOARD OF ADMINISTRATION
FLORIDA FINANCIAL MANAGEMENT INFORMATION BOARD
DIVISION OF BOND FINANCE
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
STATE BOARD OF EDUCATION
BOARD OF TRUSTEES OF THE
INTERNAL IMPROVEMENT TRUST FUND
The above agencies came to be heard before
THE FLORIDA CABINET, Honorable Governor Bush
presiding, in the Cabinet Meeting Room, LL-03,
The Capitol, Tallahassee, Florida, on Tuesday,
March 28, 2000, commencing at approximately 9:16 a.m.
Reported by:
LAURIE L. GILBERT
Registered Professional Reporter
Certified Court Reporter
Certified Realtime Reporter
Registered Merit Reporter
Notary Public in and for
the State of Florida at Large
ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
TALLAHASSEE, FLORIDA 32301
850/878-2221
2
APPEARANCES:
Representing the Florida Cabinet:
JEB BUSH
Governor
BOB MILLIGAN
Comptroller
KATHERINE HARRIS
Secretary of State
BOB BUTTERWORTH
Attorney General
BILL NELSON
Treasurer
TOM GALLAGHER
Commissioner of Education
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3
March 28, 2000
I N D E X
ITEM ACTION PAGE
DISCUSSION RE: ELIAN GONZALEZ:
5
STATE BOARD OF ADMINISTRATION:
(Presented by Barbara Jarriel,
Chief Investment Officer, Fixed Income)
1 Approved 17
2 Approved 18
3 Approved 18
4 Approved 19
FLORIDA FINANCIAL MANAGEMENT INFORMATION BOARD:
(Presented by Martin L. Young,
Secretary)
1 Approved 20
2 Approved 21
DIVISION OF BOND FINANCE:
(Presented by J. Ben Watkins, III,
Director)
1 Approved 23
2 Approved 24
3 Approved 24
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES:
(Presented by Fred O. Dickinson, III,
Executive Director)
1 Withdrawn 26
2 Approved 27
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4
March 28, 2000
I N D E X
ITEM ACTION PAGE
STATE BOARD OF EDUCATION:
(Presented by Wayne V. Pierson,
Deputy Commissioner)
1 Approved 28
2 Deferred 29
3 Approved 29
BOARD OF TRUSTEES OF THE
INTERNAL IMPROVEMENT
TRUST FUND:
(Presented David B. Struhs,
Secretary)
1 Approved 30
Substitute 2 Approved 35
Substitute 3 Approved 35
4 Approved 35
5 Approved 36
6 Approved 36
Substitute 7 Deferred 46
8 Approved 46
Substitute 9 Deferred 47
CERTIFICATE OF REPORTER 49
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DISCUSSION RE: ELIAN GONZALEZ 5
March 28, 2000
1 P R O C E E D I N G S
2 (The agenda items commenced at 10:13 a.m.)
3 GOVERNOR BUSH: And Attorney General
4 Butterworth would like to have a discussion
5 before we move to the agenda on a -- a very
6 current matter.
7 ATTORNEY GENERAL BUTTERWORTH: Thank you
8 very much, Governor.
9 I know -- you and I have had discussions on
10 this issue now probably for the last
11 four months or so.
12 And there are many issues that -- that we
13 discuss up here. But also there are issues
14 that really -- sometimes it comes to the point
15 where Florida really has nothing to say about
16 the issue, because it -- it's in the purview of
17 the Federal government.
18 But it so affects our state, and in this
19 case, the fate of a -- of the little boy who --
20 whose -- whose case -- whose situation has
21 probably never occurred ever before in the
22 history, as we know it, of this world.
23 A very, very unique case.
24 There's no doubt, and it's been admitted by
25 INS, that they had messed up this case from the
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DISCUSSION RE: ELIAN GONZALEZ 6
March 28, 2000
1 beginning.
2 The -- what I believe -- and everything
3 that -- I mean, read about things in the paper,
4 one of the best articles I've seen so far has
5 been in today's St. Pete Times, the byline of
6 David -- of David Adams.
7 GOVERNOR BUSH: You're going to --
8 ATTORNEY GENERAL BUTTERWORTH: It sets
9 forth --
10 GOVERNOR BUSH: -- suck up to the
11 St. Pete Times.
12 ATTORNEY GENERAL BUTTERWORTH: I didn't
13 know they were here. But that's the --
14 GOVERNOR BUSH: I'm joking.
15 ATTORNEY GENERAL BUTTERWORTH: And really,
16 I was not going to say anything until I was
17 reading this article here today. And it really
18 does set forth so many of the things that --
19 that are occurring right now.
20 Originally, as I -- if I'm correct, and
21 I believe I am, that INS stated that there
22 would be a hearing on what would actually be
23 the fate of -- of this little boy, and that the
24 main effect of that hearing would be what is in
25 his best interest.
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DISCUSSION RE: ELIAN GONZALEZ 7
March 28, 2000
1 Then they decided to reverse themselves and
2 say, well, you know, he's a little bit too
3 young, six years old, to ask for a hearing as
4 to whether he wants to stay on free soil.
5 And so, therefore, we had to go to a
6 relative, INS did. And for obvious reasons,
7 the mother was not the one to contact because
8 she, as we all know, had -- had passed away in
9 bringing her boy from -- from Cuba.
10 Therefore, they decided to talk to the
11 father; INS officials went down and spoke to
12 him. He chose not to come here, and there are
13 reasons on both sides that probably help
14 inflame the issue. But still we keep trying to
15 say what's in the best interest of the -- of
16 this wonderful little boy.
17 The -- so INS said we -- he's not going to
18 get a hearing. And our people that went down
19 there are convinced that he is a very loving
20 father, and -- and, therefore, the law is that
21 the boy goes back home.
22 Obviously, because of the issue of Castro,
23 and especially the South Florida community that
24 sort of also blends into all of this, and maybe
25 has a lot of people in this country not really
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DISCUSSION RE: ELIAN GONZALEZ 8
March 28, 2000
1 seeing how important the issue is because of
2 the actual hatred between the south Florida
3 Cubans and -- and Castro, where -- there are
4 comments in the article today say that Castro
5 says that Miami relatives were capable of
6 killing the boy before allowing him to return
7 to Cuba. And that also Castro is saying in his
8 speech on Sunday that he's been receiving many
9 letters asking him to send a team of armed
10 Cuban commandos to rescue Elian.
11 Now, I think we're losing focus, the
12 country is, on this entire issue.
13 The general law is that INS does have
14 authority in this arena.
15 Governor, as you know, we sued the Federal
16 government on immigration issues a number of
17 years ago, and -- because we were being
18 adversely effected in many ways, and it was the
19 Federal government that was asking us to do
20 certain things.
21 And we said, fine, we'll do it, but you --
22 you should pay us some money because we were --
23 I think even Metro Dade alone and -- and the
24 Public Health Trust, hundreds of millions of
25 dollars.
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DISCUSSION RE: ELIAN GONZALEZ 9
March 28, 2000
1 And we -- and we asked the Federal
2 government to reimburse us.
3 Judge Davis ruled for -- in favor of us,
4 saying that you're absolutely right, the
5 Federal Government with their immigration
6 policy has -- has harmed you, but there's no
7 remedy. And that -- that was upheld.
8 Now the -- the issue -- so we know we don't
9 really have that much -- so that's probably why
10 we as a State have not really said much here,
11 because, you know, that is really where the
12 issue is.
13 This -- I think this case even transcends
14 all of that. Here we're talking about the
15 interest -- the best interest of the little
16 boy.
17 We did not get the hearing that we were
18 originally promised as a society. And I do
19 believe that if there would have been a
20 hearing, with all due process, and all parties
21 being able to be heard, as it would be if he
22 had been a little bit older, even if we did not
23 like the ruling, we would have accepted it,
24 because that's the way it is. We -- we expect
25 everyone to receive due process in this state
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DISCUSSION RE: ELIAN GONZALEZ 10
March 28, 2000
1 and this country.
2 And the judge's order of last week was not
3 an order on the merits of the case. It was on
4 the technicalities of the INS law which
5 basically stated that -- that Judge Morris
6 stated that, well -- in a very long opinion, it
7 comes down to, like, one or two words, that INS
8 had the authority, and they did not abuse that
9 particular discretion.
10 Even though they themselves admit they
11 messed up this case.
12 I just think this thing cries out bec-- and
13 now we're -- we're seeing in the paper here,
14 and I'm sure it's accurate -- it says that in a
15 stern letter the Justice Department on Friday
16 threatened to remove the boy from the family's
17 care within a week if they did not abide by an
18 expedited appeals process, which would have
19 been an appeal of the actual technicality, not
20 of the issue of the -- of due process.
21 As I understand it, an appeal was to be --
22 simultaneous appeals filed next week;
23 simultaneous -- or simultaneous briefs next
24 week; simultaneous counter briefs the following
25 week -- reply briefs the following week; and a
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DISCUSSION RE: ELIAN GONZALEZ 11
March 28, 2000
1 hearing before the Eleventh Circuit that same
2 week; then a request to the Supreme Court of
3 the United States.
4 If the Supreme Court of the United States
5 did not stay it, then they had to give a
6 written pledge they would hand the child over
7 if they did not get that stay. This we're
8 talking about three weeks.
9 The case, I think, calls out for more than
10 three weeks. It calls out, I think, for not --
11 not -- not the Federal government saying we are
12 going to snatch this boy if you don't sign this
13 agreement.
14 I think the -- Governor, I know we've had
15 discussions, and I really believe, my heart of
16 hearts, that what this case needs for this
17 state, for the little boy, for the whole
18 country, and I -- and this is going on 20/20
19 I think on Wednesday, it's -- it's been on
20 Good Morning America two days in a row -- that
21 really we do need, I think for the healing of
22 this issue, and it -- is a -- is a -- a
23 hearing -- a due process hearing, with one goal
24 in mind: That being the best interest of
25 Elian Gonzalez, what is in his best interest.
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March 28, 2000
1 And to allow all persons who have -- who
2 are affected, to be able to -- to be heard,
3 whether it be in a courtroom, or whether it be
4 an arbitrator.
5 And I believe one of the most compelling
6 moments for me was our wonderful Sister Jeanne,
7 the -- the President of Barry University, who I
8 personally believe is the Mother Teresa of this
9 particular hemisphere, when she said that she
10 believed after speaking to the grandmothers
11 that the boy should stay in the United States.
12 So with all this said and done, Governor,
13 I -- I don't know what we can do, but I really
14 believe that on behalf of the state of Florida,
15 we -- we -- if we can do something, I believe
16 we should, because I think we owe it to the
17 people of this state and to the country.
18 TREASURER NELSON: Would you offer that in
19 the form of a -- of a motion so that the
20 Cabinet could express itself?
21 ATTORNEY GENERAL BUTTERWORTH: Governor, if
22 it's appropriate. I mean, I -- I guess we
23 could do a resolution -- we could do something.
24 But I just want to get -- maybe get some
25 sentiment of the Cabinet.
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DISCUSSION RE: ELIAN GONZALEZ 13
March 28, 2000
1 I don't want to -- I think it'd be only --
2 I don't think I'm the only one that feels this
3 way, Governor, because I know you and I have
4 had discussions.
5 GOVERNOR BUSH: No. We're -- I'm in
6 complete --
7 ATTORNEY GENERAL BUTTERWORTH: I know you
8 are. And it's --
9 GOVERNOR BUSH: -- agreement for what
10 you're saying. I don't --
11 COMMISSIONER GALLAGHER: Maybe what -- what
12 we should do is -- is as a Cabinet, offer a --
13 a resolution to the Federal government, and to
14 the Attorney General of the -- Janet Reno, that
15 we believe a full and fair hearing should take
16 place, and we're disappointed that they haven't
17 done that.
18 I think we could make it real short, real
19 simple, and let us all sign it, and send it up
20 there.
21 GOVERNOR BUSH: You --
22 COMPTROLLER MILLIGAN: That makes good
23 sense.
24 GOVERNOR BUSH: All right.
25 ATTORNEY GENERAL BUTTERWORTH: I'll be glad
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DISCUSSION RE: ELIAN GONZALEZ 14
March 28, 2000
1 to draft it up, Governor, and we'll --
2 GOVERNOR BUSH: Okay.
3 ATTORNEY GENERAL BUTTERWORTH: -- circulate
4 it this afternoon for -- for signatures, and
5 then -- and then -- and that would be,
6 I think --
7 GOVERNOR BUSH: I just --
8 ATTORNEY GENERAL BUTTERWORTH: -- hopefully
9 a good message.
10 GOVERNOR BUSH: I think that'd be
11 wonderful.
12 I -- I -- I don't know what the end result
13 of this is, but it -- it breaks my heart to see
14 a six year old child on television being
15 interviewed about things that he has no
16 understanding of what's going on.
17 To -- to have this become politicized,
18 instead of having a custody hearing based on
19 what's in the best interest of the child has
20 been a travesty.
21 And I -- I can't help but think,
22 General Milligan, of the really wonderful
23 ceremony we had outside Attorney General
24 Butterworth's door where we honored the
25 Medal of Honor winners that live and were born
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DISCUSSION RE: ELIAN GONZALEZ 15
March 28, 2000
1 here in our state, and thinking about the price
2 of freedom and how we take it for granted.
3 And here's a child who went with his mom
4 and 12 other people seeking freedom. They
5 weren't -- they -- I don't think people want to
6 leave their -- their homelands. They --
7 they -- they left out of desperation. And all
8 but three died.
9 And this child is a child of God, in my
10 opinion, because to survive the Straits of
11 Florida the way that he did, and now to be
12 thrown into the political -- international
13 political realm is just -- it just sad-- it
14 saddens me.
15 TREASURER NELSON: Governor, what's
16 inexcusable about this is that, as the
17 Attorney General said, that all of this
18 harangue is going on over process, and over an
19 interpretation of the INS law of which the
20 Court made the narrow decision that the INS had
21 the right not to grant an asylum hearing,
22 instead of getting to the very bedrock issue,
23 which is what is in the best interest of the
24 child.
25 GOVERNOR BUSH: Absolutely.
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DISCUSSION RE: ELIAN GONZALEZ 16
March 28, 2000
1 TREASURER NELSON: And a court of competent
2 jurisdiction ought to be convened, of which
3 testimony would be brought from all sides,
4 including not only the interest of the father,
5 but the interest of the mother as well, as to
6 what should be the ultimate disposition of this
7 case.
8 And I thank the Attorney General, whose --
9 whose family is part of the Cuban American
10 community, and I thank you for bringing it up.
11 GOVERNOR BUSH: Any other discussion?
12 ATTORNEY GENERAL BUTTERWORTH: Thank you,
13 Governor.
14 GOVERNOR BUSH: Thank you.
15 (The Discussion Re: Elian Gonzalez was
16 concluded.)
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STATE BOARD OF ADMINISTRATION 17
March 28, 2000
1 GOVERNOR BUSH: Let's move to the State
2 Board of Administration.
3 MS. JARRIEL: Good morning.
4 GOVERNOR BUSH: Good morning.
5 MS. JARRIEL: Our first item of business is
6 approval of the minutes of the meeting held on
7 March 14th.
8 TREASURER NELSON: I move the minutes.
9 COMPTROLLER MILLIGAN: I'll second them.
10 GOVERNOR BUSH: Moved and seconded.
11 Without objection, it's approved.
12 COMPTROLLER MILLIGAN: I was not present,
13 so I'm not sure that I really can second them.
14 GOVERNOR BUSH: I'll second it then.
15 MS. JARRIEL: The second item is a recomm--
16 GOVERNOR BUSH: Moved and seconded.
17 Without objection, it's approved.
18 Item 2.
19 MS. JARRIEL: The second item is a
20 recommendation to approve the fiscal
21 sufficiency of an amount not exceeding
22 three hundred million dollars, State of
23 Florida, State Board of Education Lottery
24 Revenue Bonds with various series.
25
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STATE BOARD OF ADMINISTRATION 18
March 28, 2000
1 (Attorney General Butterworth exited the
2 room.)
3 TREASURER NELSON: I move it.
4 COMPTROLLER MILLIGAN: And second it.
5 GOVERNOR BUSH: Moved and seconded.
6 Without objection, it's approved.
7 MS. JARRIEL: The third item is submission
8 by the Executive Director of the fund activity
9 analysis report for the month of January. We
10 request that you accept those reports.
11 TREASURER NELSON: And I move that we
12 accept the report.
13 COMPTROLLER MILLIGAN: And second.
14 GOVERNOR BUSH: Moved and seconded.
15 Without objection, it's approved.
16 At this point, I will call the order --
17 the Board of the Inland Protection Financing
18 Corporation, which is a new thing for me. I
19 don't believe we've had the honor of having
20 this -- this happen.
21 So Item 4.
22 MS. JARRIEL: Thank you.
23 We do have a quorum. And I also believe we
24 have another Board member present,
25 David Struhs, Department of Environmental
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STATE BOARD OF ADMINISTRATION 19
March 28, 2000
1 Protection.
2 We request that the Board approve the
3 appointment of Coleman Stipanovich as Treasurer
4 of the Inland Protection Financing Corporation;
5 and, further, to designate the position of
6 Chief of Administrative Services of the State
7 Board of Administration as the Treasurer of
8 this corporation on an ongoing basis.
9 COMPTROLLER MILLIGAN: I move the item.
10 TREASURER NELSON: Second.
11 GOVERNOR BUSH: Moved and seconded.
12 Without objection, it's approved.
13 MS. JARRIEL: Thank you very much.
14 GOVERNOR BUSH: Thank you.
15 There'll be no -- there being no further
16 business, this meeting is adjourned.
17 And we go back to the rest of it, I guess.
18 Did I do that right, Colleen?
19 MS. CASTILLE: Yes, sir.
20 (The State Board of Administration Agenda
21 was concluded.)
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FINANCIAL MANAGEMENT INFORMATION BOARD 20
March 28, 2000
1 GOVERNOR BUSH: Financial Management
2 Information Board.
3 MR. YOUNG: Good morning.
4 GOVERNOR BUSH: Good morning.
5 MR. YOUNG: Got two items this morning.
6 The first item is request approval of the
7 minutes of the March 14th Board meeting.
8 GOVERNOR BUSH: Is there a motion?
9 No motion?
10 COMMISSIONER GALLAGHER: Motion.
11 MR. YOUNG: General Milligan, would you
12 motion on the minutes?
13 COMPTROLLER MILLIGAN: I'll -- I'll move
14 the minutes.
15 GOVERNOR BUSH: Is there a --
16 TREASURER NELSON: And I'll --
17 GOVERNOR BUSH: -- second?
18 TREASURER NELSON: -- second.
19 GOVERNOR BUSH: Moved and seconded.
20 Without objection, it's approved.
21 There was a --
22 MR. YOUNG: Thank you.
23 GOVERNOR BUSH: -- brief moment there where
24 you thought your life was being altered
25 dramatically.
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March 28, 2000
1 Me, too.
2 Item 2.
3 MR. YOUNG: Item 2, request approval of the
4 Strategic Plan.
5 COMPTROLLER MILLIGAN: And I'll move the
6 Strategic Plan. This is really a major step
7 forward in -- in terms of how we handle
8 financial management in this state, and I am --
9 GOVERNOR BUSH: Thank you.
10 COMPTROLLER MILLIGAN: -- thrilled to -- to
11 see this thing moving.
12 GOVERNOR BUSH: Is there a second?
13 TREASURER NELSON: Second.
14 GOVERNOR BUSH: Moved and seconded.
15 Without objection, it's approved.
16 MR. YOUNG: Thank you, sir.
17 GOVERNOR BUSH: Thank you.
18 It is -- we need to spend a little bit of
19 time at some point discussing the full
20 ramifications of this, and giving I think
21 everybody a full brief. Because that's --
22 COMPTROLLER MILLIGAN: Absolutely.
23 I think it would be useful to have Martin
24 come back and -- and really talk about the --
25 the greater financial management and the -- and
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March 28, 2000
1 the direction that we're going, and the -- and
2 the milestones that we're looking at, and --
3 and really the implications policy-wise.
4 GOVERNOR BUSH: And the costs.
5 COMPTROLLER MILLIGAN: And the cost.
6 GOVERNOR BUSH: And the return --
7 COMPTROLLER MILLIGAN: And the return on
8 investment.
9 GOVERNOR BUSH: Excellent. That was the
10 best part.
11 (The Financial Management Information Board
12 Agenda was concluded.)
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DIVISION OF BOND FINANCE 23
March 28, 2000
1 GOVERNOR BUSH: Division of Bond Finance.
2 Good morning, Ben. How are you doing?
3 MR. WATKINS: Fine, thanks.
4 Item Number 1 is approval --
5 COMMISSIONER GALLAGHER: Motion on the
6 minutes.
7 MR. WATKINS: -- of the minutes of the
8 March 14th meeting.
9 GOVERNOR BUSH: Is there a second?
10 Did I hear a -- a motion?
11 COMMISSIONER GALLAGHER: Motion.
12 GOVERNOR BUSH: That's what --
13 COMPTROLLER MILLIGAN: Second.
14 GOVERNOR BUSH: -- I thought.
15 Second?
16 Commissioner Nelson, is there a second?
17 TREASURER NELSON: Second.
18 GOVERNOR BUSH: Moved and seconded.
19 Without objection, it's approved.
20 Item 2.
21 MR. WATKINS: Item Number 2 is a resolution
22 authorizing the competitive sale of up to
23 three hundred million dollars in Lottery
24 Revenue Bonds for construction of schools.
25 COMMISSIONER GALLAGHER: Motion on 2.
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DIVISION OF BOND FINANCE 24
March 28, 2000
1 GOVERNOR BUSH: Second?
2 COMPTROLLER MILLIGAN: Second.
3 GOVERNOR BUSH: Moved and seconded.
4 Without objection, it's approved.
5 MR. WATKINS: Item Number 3 is a report of
6 award on the competitive sale of a hundred and
7 twenty-five million dollars in Lottery Revenue
8 Bonds. The bonds were awarded to the low
9 bidder at a true interest cost of 5.48 percent.
10 COMMISSIONER GALLAGHER: Motion on 3.
11 COMPTROLLER MILLIGAN: And second.
12 GOVERNOR BUSH: Moved and seconded.
13 Without objection, it's approved.
14 MR. WATKINS: Thank you.
15 (The Division of Bond Finance Agenda was
16 concluded.)
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HIGHWAY SAFETY AND MOTOR VEHICLES 25
March 28, 2000
1 GOVERNOR BUSH: Department of
2 Highway Safety and Motor Vehicles.
3 Fred, how are you doing?
4 MR. DICKINSON: Good, Governor.
5 Item 1 actually we'd like to withdraw.
6 GOVERNOR BUSH: Withdraw the minutes?
7 MR. DICKINSON: Yes, sir. We had a little
8 problem with some of the minutes.
9 We didn't have our normal reporter, so
10 we're going back --
11 COMMISSIONER GALLAGHER: And --
12 MR. DICKINSON: -- and redoing that.
13 COMMISSIONER GALLAGHER: -- I'd -- I'd like
14 to move that -- that we see to it that the
15 normal court reporter travels with us when we
16 go out of the City because, unfortunately the
17 ones that are contracted normally don't know
18 the voices, don't know the names, and the
19 minutes have been a disaster.
20 So could we just have that done?
21 GOVERNOR BUSH: Do you want to come?
22 COURT REPORTER: Yes, sir.
23 GOVERNOR BUSH: Somehow we can arrange
24 that.
25 SECRETARY HARRIS: Second.
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March 28, 2000
1 GOVERNOR BUSH: There's a motion to
2 withdraw and a second.
3 Without objection, it's approved.
4 We'll see you in Sarasota.
5 SECRETARY HARRIS: It's a nice place.
6 You'll like it.
7 GOVERNOR BUSH: Oh, Lord.
8 MR. DICKINSON: Oh, goodness.
9 GOVERNOR BUSH: You missed Bartow though.
10 I mean, that was really the -- kind of the
11 highlight of the --
12 I thought it was great.
13 COMMISSIONER GALLAGHER: I mean, if you
14 want to read a disaster of some minutes, have
15 at it.
16 SECRETARY HARRIS: Mine, too.
17 GOVERNOR BUSH: Item 2?
18 MR. DICKINSON: Governor, Item 2 is request
19 approval to renew the digital image
20 driver's license contract for another
21 three-year term.
22 COMMISSIONER GALLAGHER: Motion.
23 MR. DICKINSON: I will report to you that
24 we have the lowest cost over-the-counter
25 driver license system in America. And it is
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March 28, 2000
1 working.
2 They've agreed to replenish our cameras,
3 and -- and some of the software. We're working
4 out a deal on the computer equipment also.
5 It's been a -- it's been a winner for the
6 State.
7 GOVERNOR BUSH: Okay.
8 MR. DICKINSON: It's a good contract.
9 GOVERNOR BUSH: There's a motion.
10 Is there a second?
11 SECRETARY HARRIS: Second.
12 GOVERNOR BUSH: Moved and seconded.
13 Without objection, it's approved.
14 MR. DICKINSON: Thank you.
15 GOVERNOR BUSH: Thank you.
16 (The Department of Highway Safety and Motor
17 Vehicles Agenda was concluded.)
18 * * *
19
20
21
22
23
24
25
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March 28, 2000
1 GOVERNOR BUSH: State Board of Education.
2 COMMISSIONER GALLAGHER: Motion on the
3 minutes.
4 But I have --
5 SECRETARY HARRIS: Second.
6 COMMISSIONER GALLAGHER: -- a question.
7 Oh, it's Education?
8 MR. PIERSON: We have no minutes.
9 COMMISSIONER GALLAGHER: -- question.
10 Have no minutes.
11 GOVERNOR BUSH: Item 1?
12 MR. PIERSON: Item 1 is a resolution on
13 three hundred million dollars, State of
14 Florida, State Board of Education Lottery
15 Revenue Bonds.
16 COMMISSIONER GALLAGHER: Motion.
17 SECRETARY HARRIS: Second.
18 GOVERNOR BUSH: Moved and seconded.
19 Without objection, it's approved.
20 MR. PIERSON: Item --
21 COMMISSIONER GALLAGHER: Move to defer
22 Number 2 to June meeting.
23 GOVERNOR BUSH: There's a motion --
24 COMPTROLLER MILLIGAN: Move to defer.
25 GOVERNOR BUSH: -- to defer.
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March 28, 2000
1 Is there a second?
2 COMPTROLLER MILLIGAN: Second.
3 GOVERNOR BUSH: Moved and -- to June
4 meeting, is that --
5 COMMISSIONER GALLAGHER: They're unable to
6 come in April.
7 MS. CASTILLE: They -- they may come
8 April 25th.
9 COMMISSIONER GALLAGHER: Then I'll move to
10 defer to April 25th.
11 GOVERNOR BUSH: There's a motion to defer.
12 Is there a second?
13 SECRETARY HARRIS: Second.
14 GOVERNOR BUSH: Moved and seconded.
15 Without objection, it's approved.
16 MR. PIERSON: Item 3 is an appointment to
17 the Postsecondary Education Planning
18 Commission, Danielle A. Webb.
19 COMMISSIONER GALLAGHER: Motion.
20 SECRETARY HARRIS: Second.
21 GOVERNOR BUSH: Moved and seconded.
22 Without objection, it's approved.
23 MR. PIERSON: Thank you.
24 (The State Board of Education Agenda was
25 concluded.)
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1 GOVERNOR BUSH: Board of Trustees of the
2 Internal Improvement Trust Fund.
3 COMMISSIONER GALLAGHER: Motion on the
4 minutes.
5 GOVERNOR BUSH: I just got a two-page
6 e-mail from Commissioner Crawford from Beijing.
7 I think we're selling citrus.
8 It's a little long though. I won't be able
9 to read it till we finish.
10 There's a motion?
11 COMMISSIONER GALLAGHER: Motion on the
12 minutes.
13 GOVERNOR BUSH: Is there a second?
14 COMPTROLLER MILLIGAN: Second.
15 SECRETARY HARRIS: Second.
16 GOVERNOR BUSH: Moved and seconded.
17 Without objection, it's approved.
18 (Attorney General Butterworth entered the
19 room.)
20 COMMISSIONER GALLAGHER: I have a question
21 on this.
22 GOVERNOR BUSH: Yes.
23 COMMISSIONER GALLAGHER: David, you -- you
24 all do the minutes for this; is that correct?
25 MR. STRUHS: Yes, sir.
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1 COMMISSIONER GALLAGHER: So, therefore, you
2 took the minutes that came from Bartow, and you
3 got -- you -- those are the minutes that we
4 just approved.
5 MR. STRUHS: The minutes you just approved
6 I believe are correct. The transcript from
7 Bartow was incorrect. We went back using our
8 own notes, and -- and corrected the record, and
9 we're now in the process of correcting the
10 transcript.
11 COMMISSIONER GALLAGHER: Okay. Because my
12 question was that if somebody asked you for the
13 minutes, they'd get one thing; if they asked
14 the Cabinet for the transcript, they'd get
15 something else.
16 MR. STRUHS: Yes, sir. You're
17 absolutely --
18 COMMISSIONER GALLAGHER: Which would be --
19 MR. STRUHS: -- right.
20 COMMISSIONER GALLAGHER: -- in conflict.
21 So we are working to see to it that by this
22 motion we just made, the transcript and minutes
23 will be the same.
24 MR. STRUHS: The -- the minutes you just
25 approved are correct. The transcript is being
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1 corrected. And I believe we've already
2 forwarded it to the Secretary of State.
3 COMMISSIONER GALLAGHER: So the minutes and
4 the transcript will be the same.
5 MR. STRUHS: Correct.
6 COMMISSIONER GALLAGHER: Okay. That's what
7 I --
8 MR. STRUHS: Yes, sir.
9 COMMISSIONER GALLAGHER: Thank you.
10 MS. GOODSON: Your minutes are more
11 detailed than any of the transcripts are --
12 I'm sorry.
13 But we need to make sure they know that
14 this will be corrected, and they will be as
15 near the same as possible.
16 But you rewrite the minutes, and yours is
17 more detailed when you made motions, because
18 sometimes the transcript doesn't always reflect
19 the motion.
20 MR. STRUHS: Right.
21 The -- the point is -- the point is, we
22 always keep minutes that are -- are separate
23 from the transcript.
24 COMMISSIONER GALLAGHER: But they should
25 match.
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1 MR. STRUHS: They should match. They will
2 match.
3 GOVERNOR BUSH: Particularly in Sarasota
4 they'll match.
5 Item 2.
6 MR. STRUHS: Governor, if -- if I might,
7 I'd like to just lay out a little bit of
8 background on Items 2 and 3, because they are
9 related.
10 (Treasurer Nelson exited the room.)
11 MR. STRUHS: Items 2 and 3 represent the
12 first of what will be a total of seven items
13 brought to the Board of Trustees over the
14 course of the next several meetings.
15 These items are related to the dissolution
16 of the Cross-Florida Barge Canal Authority back
17 in 1991. And if I could just take one minute
18 and give a -- a brief history review perhaps
19 for the benefit of the audience.
20 The authority back in 1966 and '67 acquired
21 flowage easements from several property owners
22 over a total of 3300 acres. The State paid
23 $327,000 for those easements, which comes to
24 approximately $100 per acre.
25 A condition of those easements was that if
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1 the Canal Authority were ever dissolved, the
2 land under easement would revert.
3 As you well know, in 1991, the Authority,
4 in fact, was dissolved. The landowner
5 subsequently filed a trespass suit because the
6 State has now, for nine years, occupied the
7 land, and occupied it by keeping it under
8 water.
9 Recognizing the necessity of treating the
10 landowners fairly, and also recognizing that,
11 in fact, if the litigation were to proceed, it
12 would likely -- the judge would likely instruct
13 a 12-person jury to consider the value of the
14 land as if it were dry, the Division of State
15 Lands entered into settlement negotiations.
16 Items 2 and 3 before you today are the
17 result of those successful negotiations, and
18 I'm -- I'm pleased to report that there was no
19 payment of attorney fees or other costs related
20 to this.
21 And, in fact, we were able to put these
22 items before you to acquire these particular
23 properties for less than their actual appraised
24 value.
25 And in -- and by doing that, settling the
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1 potential lawsuit.
2 So Item 2 -- with that -- with that as
3 background, Item 2 is to approve the settlement
4 agreement, which provides for the purchase of
5 805.4 acres of land.
6 COMMISSIONER GALLAGHER: Motion on 2.
7 SECRETARY HARRIS: Second.
8 GOVERNOR BUSH: Moved and seconded?
9 Without objection, it's approved.
10 MR. STRUHS: Item 3, recommending approval
11 of three settlement agreements which provide
12 for the purchase of 2,877 acres of land.
13 COMMISSIONER GALLAGHER: Motion on 3.
14 SECRETARY HARRIS: Second.
15 ATTORNEY GENERAL BUTTERWORTH: Second.
16 GOVERNOR BUSH: Moved and seconded.
17 Without objection, it's approved.
18 MR. STRUHS: Item 4, recommending approval
19 of the Nature Conservancy assignment of an
20 option agreement on the Perdido Pitcher Plant
21 Prairie CARL project.
22 COMMISSIONER GALLAGHER: Motion on 4.
23 SECRETARY HARRIS: Second.
24 GOVERNOR BUSH: Moved and seconded.
25 Without objection, it's approved.
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1 MR. STRUHS: Item 5, we're recommending
2 approval of an option agreement for the
3 Save Our Everglades CARL project with
4 Galin, Incorporated.
5 COMMISSIONER GALLAGHER: Motion.
6 SECRETARY HARRIS: Second.
7 GOVERNOR BUSH: Moved and seconded.
8 Without objection, it's approved.
9 MR. STRUHS: Item 6, we're recommending
10 approval of an option agreement with the
11 Department of Corrections -- Corrections for
12 the Avon Park Correctional --
13 (Treasurer Nelson entered the room.)
14 MR. STRUHS: -- Institution.
15 SECRETARY HARRIS: Second.
16 COMMISSIONER GALLAGHER: Motion.
17 GOVERNOR BUSH: Is there a motion?
18 COMMISSIONER GALLAGHER: Motion, second.
19 GOVERNOR BUSH: Moved and seconded.
20 Without objection, it's approved.
21 MR. STRUHS: Substitute Item Number 7, I'd
22 like to apologize to the Trustees.
23 In -- in the process of reviewing this item
24 this morning, came across some irregularities,
25 and -- and we'd like to be able to defer this
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1 item --
2 COMMISSIONER GALLAGHER: Motion to defer --
3 MR. STRUHS: -- to bring it back --
4 COMMISSIONER GALLAGHER: -- Number 7.
5 MR. STRUHS: -- to you.
6 GOVERNOR BUSH: Is there a second?
7 COMPTROLLER MILLIGAN: Second.
8 GOVERNOR BUSH: There's a motion to defer.
9 It's been seconded --
10 TREASURER NELSON: Governor --
11 GOVERNOR BUSH: Yes.
12 TREASURER NELSON: -- let me just ask: If
13 we defer this --
14 MR. STRUHS: Yes, sir.
15 TREASURER NELSON: -- does that mean we're
16 going to lose the purchase?
17 MR. STRUHS: I don't believe so. But let's
18 check with counsel to make doubly sure.
19 TREASURER NELSON: Well, it's my
20 understanding that Commissioner Crawford is
21 considerably concerned about this. In his --
22 his absence, I'd like to know if we're going to
23 lose it by deferring it.
24 I see people shaking their heads up and
25 down yes in the audience.
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1 MR. STRUHS: There are representatives here
2 from the potential purchaser, and we could
3 certainly put that question to them.
4 TREASURER NELSON: Okay.
5 MR. STRUHS: As -- as to whether or not
6 it's an issue.
7 They're not here.
8 TREASURER NELSON: Well, could we just hear
9 from Ms. Armstrong?
10 MR. STRUHS: Yeah. Please.
11 MS. ARMSTRONG: I apologize.
12 Good morning.
13 I spoke this morning with representatives
14 of the company. They said they understood that
15 we need to do our due diligence, keep them --
16 keep us in touch with them. We agreed to do
17 that.
18 So we don't know is the answer.
19 They didn't indicate that we're walk-- that
20 they would walk based on your deferral today.
21 COMMISSIONER GALLAGHER: This -- this item
22 needs to be deferred, primarily because none of
23 us were given an appraisal of five million
24 dollars when we first got this item, and we
25 were given it this morning.
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1 So I think we need to defer it and let the
2 due diligence take place, and find out that
3 we're doing the right thing.
4 COMPTROLLER MILLIGAN: Governor, if I may,
5 as long as we are raising some issues on this.
6 I -- I'm very curious as to how this piece of
7 property was promoted for sale, was advertised.
8 I mean, this is a -- a unique piece of
9 property. And so I would be interested in
10 ultimately finding out how it was advertised,
11 slant, promoted.
12 And I -- and -- and a curiosity as to how
13 we only had one bidder on -- on this valuable
14 piece of property.
15 So I -- there are a lot of issues
16 associated with it. Since it's being deferred,
17 I would hope that we would really dig into it.
18 SECRETARY HARRIS: I -- why do we --
19 GOVERNOR BUSH: Yes, Katherine.
20 SECRETARY HARRIS: Every time we -- we do
21 this, there's always issues concerning the
22 appraisals, kind of on a bigger issue. We have
23 to be confident.
24 Maybe there would be a time that you could
25 review with us just what our process is.
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1 There -- every time there's a -- there's an
2 issue of purchase, we go through these
3 questions.
4 And -- and now today we're finding out
5 there's a -- another appraisal that's on the
6 table for much more. And -- I mean, I just --
7 we just need to be confident that the State's
8 getting the best price. And if there needs to
9 be a change in the process to make us more
10 competitive, then -- then I think we should do
11 that.
12 So perhaps we could, Governor, in the
13 future, have a discussion on -- on exactly how
14 we're receiving these appraisals --
15 MR. STRUHS: Right.
16 SECRETARY HARRIS: -- so we can feel --
17 MR. STRUHS: You're absolutely right,
18 Secretary Harris, and that's one of the reasons
19 we're seeking the deferral, is because I can't
20 in good faith present this with confidence to
21 you this morning, and -- and don't want to do
22 that.
23 COMMISSIONER GALLAGHER: Let me -- let me
24 ask a question.
25 GOVERNOR BUSH: Yeah.
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1 COMMISSIONER GALLAGHER: Did IFAS do the
2 appraisal process, and you all weren't involved
3 in this?
4 Because I -- I think if we're -- if we're
5 going to be here as -- sitting as the
6 State Board of Trustees when other agencies are
7 selling land, we're still responsible for
8 the -- make the decision. Five of has -- five
9 of us have to agree with this decision.
10 We have a -- a major in-place process by
11 which you as a Department look at land that we
12 vote on. Now, all of a sudden an -- an agency
13 outside, sitting over in the Board of Regents,
14 make up their mind they don't need any property
15 anymore; they figure out what the appraisal is;
16 they figure out who the buyer is; and they drop
17 it on into us, and say, here it is, guys.
18 And I think we need to set the precedent
19 that our process is, when you want to sell
20 property, you let the Board of Trustees of the
21 Internal Improvement Trust Fund find out about
22 it through our staff, and they do the process
23 of appraisals that we're -- we're -- have
24 safeguards in that we can be comfortable with,
25 as opposed to agencies out there --
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1 I mean, we had a little house that an
2 agency sold not long ago, and now they haven't
3 sold it anymore. They had a little deal done,
4 and we turned it down, said, let's take another
5 look. And all of a sudden now they're keeping
6 it.
7 And so I don't know how many of these other
8 things are floating around. But if we'd set
9 the precedent here that you want to sell
10 a piece of property, it's -- it's going to be
11 excess as far as you're concerned, send it on
12 over to our staff, and let them go through the
13 appraisal process.
14 And I'd like to have a --
15 MR. STRUHS: Yeah.
16 COMMISSIONER GALLAGHER: -- a way that we
17 do that from now on so that we're covered.
18 Otherwise, you know, we don't --
19 GOVERNOR BUSH: Does that require a
20 statutory change, or is that a --
21 COMMISSIONER GALLAGHER: No.
22 MR. STRUHS: Actually, Commissioner, and --
23 and Governor, this is an unusual circumstance,
24 because there actually is a -- an unusual law
25 in Florida that gave IFAS the authority to sell
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1 real estate that they owned, and then to keep
2 the proceeds to reinvest into their program.
3 Having said that, we, as staff to you --
4 we, as staff to you as Board of Trustees, take
5 very seriously your role, and our role as staff
6 to you, to look out for the overall fiduciary
7 responsibility for -- for the State of Florida.
8 And -- and because we take that role
9 seriously, I can't in -- in good confidence
10 recommend this item to you today.
11 COMMISSIONER GALLAGHER: But --
12 MR. STRUHS: That's why we're --
13 COMMISSIONER GALLAGHER: -- I think you
14 said --
15 MR. STRUHS: -- seeking the deferral.
16 COMMISSIONER GALLAGHER: -- but
17 constitutionally there may be a law that says
18 they can sell property. But constitutionally
19 if it's in the State of Florida's name, they
20 have to have five votes.
21 MR. STRUHS: That's correct.
22 COMMISSIONER GALLAGHER: So we still have
23 that fiduciary responsibility that --
24 MR. STRUHS: That's correct.
25 COMMISSIONER GALLAGHER: -- I believe you
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1 all should, by us giving you that guidance,
2 say, hey, fellows, you may be able to sell it,
3 but we're going to have to do the appraisals
4 for you.
5 GOVERNOR BUSH: That makes a lot of sense.
6 MR. STRUHS: It -- it does. And --
7 GOVERNOR BUSH: To be involved -- engaged
8 early on. I don't know how many -- for better,
9 for worse, we normally are the buyer, not the
10 seller.
11 But when we sell, I think you all should be
12 engaged early enough where we don't have -- and
13 on appraisals, appraisals are not a science,
14 they're an art. And we always seem to -- not
15 always -- that's the wrong thing to say.
16 But I would love to hear how we use
17 appraisals, because it is the baseline from
18 which all of us look at these. And if --
19 you know, if it's over appraised value or under
20 appraised value, it kind of sets people's
21 mindset about whether we should -- whether
22 we're buying a property at the right price.
23 So, therefore, if the appraisal is wrong,
24 or if it's not an accurate assessment of
25 market, then we -- we've got a serious problem.
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1 I don't know in this case what it is. This
2 is a property that have their -- this is an
3 area that has not -- was -- was hot once, and
4 it's kind of --
5 COMMISSIONER GALLAGHER: Cooling down.
6 GOVERNOR BUSH: -- it's one exit away from
7 Disney. It's been one exit away from Disney
8 for the last ten years, and it's not caught on.
9 But that's not to say that it won't.
10 I -- I just -- I don't know enough about
11 this property to know if there's a
12 million dollar variance in the appraisal, who's
13 right. And -- and you guys could give us some
14 guidance on how you look at these things, and
15 maybe we could get more comfortable with it.
16 COMMISSIONER GALLAGHER: And -- and also
17 I think that we -- and I think General Milligan
18 was right on, we don't know how this was
19 advertised, or even if it was. I mean,
20 nobody -- I've not -- you know --
21 MR. STRUHS: Well, I can -- we -- if you
22 would like, Commissioner, we could describe to
23 you precisely how it was advertised. Or if you
24 would like to have a longer conversation, I'd
25 be pleased to come and meet with each of you
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1 individually and -- and --
2 GOVERNOR BUSH: Why don't you do that since
3 this is --
4 MR. STRUHS: -- how we got here.
5 COMMISSIONER GALLAGHER: Okay.
6 GOVERNOR BUSH: There's a motion to defer.
7 Is there a second?
8 SECRETARY HARRIS: Second.
9 GOVERNOR BUSH: Moved and seconded with a
10 modicum of objections.
11 It's approved.
12 We'll see how the minutes reflect that.
13 MR. STRUHS: Item 8 is a -- we're seeking
14 approval for a settlement agreement for
15 establishing boundaries for properties owned by
16 the Department of Agriculture and Consumer
17 Services, and a neighbor.
18 COMMISSIONER GALLAGHER: Motion on 8.
19 SECRETARY HARRIS: Second.
20 GOVERNOR BUSH: Moved and seconded.
21 Without objection, it's approved.
22 COMMISSIONER GALLAGHER: And a motion to
23 defer 9.
24 GOVERNOR BUSH: Is there a second?
25 ATTORNEY GENERAL BUTTERWORTH: Second.
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1 GOVERNOR BUSH: There's a motion to defer,
2 and a second.
3 Without objection, it's approved.
4 Before we leave, I want to -- I did read
5 the e-mail, if anybody's interested in our --
6 COMMISSIONER GALLAGHER: Sure.
7 GOVERNOR BUSH: -- fellow Cabinet officer,
8 Commissioner Crawford.
9 He met with Mr. Long Yongtu, Chief Trade
10 Negotiator for China. And they had a very
11 fruitful meeting.
12 COMMISSIONER GALLAGHER: Grapefruit-ful.
13 Grapefruit-ful.
14 GOVERNOR BUSH: And he also went to the --
15 had a press conference the opening of the first
16 retail sale of citrus in mainland China at the
17 Park and Shop Market.
18 And the media coverage of the opening
19 was -- was very heavy. And in China, very
20 heavy means millions and millions of people, I
21 assume, with Beijing TV and China Central
22 Television covering the entire area.
23 Asian coverage included AP Television, CNN,
24 Bloomberg Financial Market, Commodity News, and
25 Reuters.
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1 So our -- our Commissioner of Agriculture
2 is out doing what he does very well, which is
3 selling the best citrus in the world.
4 Thank you all.
5 (The Board of Trustees of the Internal
6 Improvement Trust Fund Agenda was concluded.)
7 * * *
8 (The Cabinet meeting was concluded at
9 10:47 a.m.)
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ACCURATE STENOTYPE REPORTERS, INC.
49
March 28, 2000
1 CERTIFICATE OF REPORTER
2
3
4
5 STATE OF FLORIDA:
6 COUNTY OF LEON:
7 I, LAURIE L. GILBERT, do hereby certify that
8 the foregoing proceedings were taken before me at the
9 time and place therein designated; that my shorthand
10 notes were thereafter translated; and the foregoing
11 pages numbered 1 through 48 are a true and correct
12 record of the aforesaid proceedings.
13 I FURTHER CERTIFY that I am not a relative,
14 employee, attorney or counsel of any of the parties,
15 nor relative or employee of such attorney or counsel,
16 or financially interested in the foregoing action.
17 DATED THIS 7TH day of APRIL, 2000.
18
19
20 LAURIE L. GILBERT, RPR, CCR, CRR, RMR
100 Salem Court
21 Tallahassee, Florida 32301
850/878-2221
22
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ACCURATE STENOTYPE REPORTERS, INC.
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Cabinet
Affairs
