Cabinet Affairs

1. Approval of minutes of meeting held on December 10, 1996. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF NOT TO EXCEED $189,840,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION CAPITAL OUTLAY BONDS, 1997 SERIES A:

The State Board of Education of Florida has submitted for approval as to fiscal sufficiency a proposal to issue Not to Exceed $189,840,000 State of Florida, Full Faith and Credit, State Board of Education Capital Outlay Bonds, 1997 Series A (the "Bonds") for the purpose of financing the cost of capital outlay projects for school purposes in certain school districts and community college districts.

The State Board of Education is authorized to issue bonds pledging the full faith and credit of the State payable primarily from funds provided in Subsection (d) of Section 9 of Article XII of the Constitution of Florida, as amended (the "School Capital Outlay Amendment"), for the purpose of providing funds to finance capital outlay projects for school purposes in the manner provided therein, upon the application of the School Boards of the School Districts of the State, and the Boards of Trustees of the Community College Districts of the State.

The State Board of Education has heretofore pledged the State Motor Vehicle License Taxes distributable to the account of the School Districts, pursuant to said School Capital Outlay Amendment, to the payment of debt service on the Outstanding Capital Outlay Bonds, Series 1977-A, Series 1978-A, Series 1979-A, Series 1988-A, Series 1990-A, and Series 1991-A heretofore issued which bonds constitute a prior lien on the State Motor Vehicle License Taxes.

The Capital Outlay Bonds, 1992 Series A, 1992 Series B, 1994 Series A, 1995 Series A, 1996 Series A and 1996 Series B heretofore issued and the Bonds proposed to be issued shall rank equally and be on a parity in all respects as to lien on and source and security for payment from the State Motor Vehicle License Taxes distributable for the account of certain School Districts and Community College Districts in Florida, under the provisions of said School Capital Outlay Amendment.

A study of this proposal and the estimates of revenue expected to accrue from the Motor Vehicle License Taxes, indicate that the proposed Bonds and all other outstanding bonds having a lien on the Motor Vehicle License Taxes are fiscally sufficient and that the proposal will be executed pursuant to the applicable provisions of law.

RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #2)

3. APPROVAL OF THE FLORIDA HURRICANE CATASTROPHE FUND RULES:

The Florida Hurricane Catastrophe Fund requests that the Trustees approve the adoption of new Rule 19-8.012, regarding procedures for determining eligibility in the Fund and revisions to Rule 19-8.011, regarding loss reimbursement procedures; Rule 19-8.019, regarding the 1996 premium formula; and Rule 19-8.020, regarding the 1996 insurer reporting requirements. The proposed new and amended rules were the subject of a public hearing on December 11, 1996, and were approved by the Advisory Council on December 12, 1996. The Joint Administrative Procedures Committee had one question regarding the imposition of interest and was satisfied with our response. (Att. #3)

4. REPORTS BY THE EXECUTIVE DIRECTOR:

Submitted for information and review are the investment performance and fund balance analysis for the month of November 1996. (Att. #4)

5. INLAND PROTECTION FINANCING CORPORATION:

The Inland Protection Financing Corporation requests that the Trustees, in their capacities as directors, hold a Board of Directors meeting of the Inland Protection Financing Corporation. This Corporation was created in Section 376.2075(a) by House Bill 1127 during the 1996 legislative session. A board meeting is necessary to discuss Item No. 6 from the November 19, 1996 meeting agenda.

(Exhibit 1)

The Inland Protection Financing Corporation requests that the Trustees, in their capacities as directors, hold a Board of Directors meeting of the Inland Protection Financing Corporation. This Corporation was created in Section 376.2075(a) by House Bill 1127 during the 1996 legislative session. A board meeting is necessary to discuss Item No. 7 from the November 19, 1996 meeting agenda.

1. The Executive Director will call Virginia Wetherell, Secretary of the Department of Environmental Protection, and Keith Carswell, Chairman of the Black Business Investment Board, to the podium and requests the Governor to call the meeting of the Corporation to order.

2. All the members of the Board of Directors being present, motion and second that the Board of Directors take the following action:

a. Approval to proceed with RFP process for selection of Disclosure Counsel

b. Approval to proceed with RFP process for selection of Trustee/Paying Agent

3. The Governor will now call on the Department of Environmental Protection to make a presentation to the Board regarding the Department's plans to strengthen its post audit and recovery efforts under the reimbursement program.

4. There being no further business, motion and second to adjourn the meeting.