The Fine Print

Bondi's fantasy dilemma

It's only been a few short months since the start of football season - which is what helped bring the ever-expanding world of daily fantasy sports into the spotlight.

Now with the Super Bowl right around the corner - and a new legislative session about to commence - one key question remains:

What, if anything, does Attorney General Pam Bondi plan to do about the murky legality surrounding fantasy sports in Florida.

Let's scroll back.

It was back during the summer that the big players in daily fantasy - FanDuel and DraftKings _ started hiring lobbyists in Tallahassee as the same time they were starting a huge national ad campaign. Their moves came as a legal theory began to emerge that fantasy sports - the idea of selecting players in various sports and winning money based on their performance - was not allowed under Florida law.

This theory - which has been explored by South Florida attorney Daniel Wallach and further expanded in a paper penned by Wallach and Tallahassee attorney/lobbyist Marc Dunbar - says a key impediment is a 1991 opinion authored by then-Attorney General Bob Butterworth that concluded spending $100 on a season-long fantasy football team was illegal gambling.

It was shortly afterwards - some of it sparked by national reports of a DFS employee participating in a contest on a rival's website - that a backlash began to mount for the two big companies in other parts of the country. Nevada ruled that fantasy websites needed to shut down or be licensed, while the attorney general in New York said they were illegal gambling and is trying to shutter them.

Move to Florida and there are apparent signs of some prosecutors getting involved, namely that U.S. Attorney Lee Bentley in Tampa has reportedly launched his own investigation according to Wallach and others. There are also civil lawsuits being filed. And there was a key development in that arena when Law360 reported earlier this week that State Attorney Bernie McCabe has taken an interest in the issue.

McCabe, whose jurisdiction includes Pasco and Pinellas counties, filed a memo supporting an effort to remand the case against FanDuel and DraftKings back into state court because he asserted that the state was in fact the "real party of interest" in this case.

But it's hard to pin Bondi or her office down on how the state's top legal officer (and whose office houses the statewide prosecutor) views the evolving situation even as other law-enforcement officials take action.

Bondi has said she still supports the 1991 Butterworth opinion and has made no moves to rescind it or repeal it. But beyond that Bondi and her office continue to defer questions.

"Our office engaged in extensive discussions with the U.S. Attorney’s Office and we both agreed the matter should be handled federally,'' said Bondi spokesman Whitney Ray late last year "Also, our office is in regular contact with U.S. Attorney Lee Bentley, and we have full confidence that the U.S. Attorney's Office will handle the matter appropriately."

Additionally, so far Bondi has remained fairly quiet about whether she supports efforts by the fantasy effort to put in laws that would regulate the industry. Sen. Joe Negron and Rep. Matt Gaetz have sponsored bills to do so for the upcoming session that kicks off next Tuesday and FanDuel is increasing its workforce in anticipation of the new law being put in place reported the Orlando Sentinel.

(It's worth pointing out that even though the Negron and Gaetz bills directly affect his agency, Agriculture Commissioner Adam Putnam has also not been exactly clear whether he's a fan or not of either version.)

The big giants in the fantasy sports industry are being primarily represented in Florida by mega-lobbyist Brian Ballard and his firm. Ballard is of course a big-time fundraiser who is now supporting Marco Rubio for president and also lobbies on behalf of Donald Trump.

But late last August one of the other lobbyists who signed up to represent the fantasy companies was well-known GOP consultant Marc Reichelderfer. He is friends with Bondi and has done campaign work on her behalf.

When asked about it directly last fall, Bondi said she was unaware that Reichelderfer had begun representing the fantasy sports industry.

Some of Bondi's interactions with lawyers, lobbyists and how her office has handled such cases has drawn scrutiny, most notably in articles that appeared in the New York Times. So it can be argued that it's important for voters and citizens to know what her office is - or isn't doing on this.

Bondi during her five-year stint in office been very selective about what issues she will - or won't - engage in.

She once took a stance against casino gambling, but yet other times she has refused to take a position on bills even if they directly impact her agency operations. Bondi is also as of now remaining fairly quiet about what she thinks about the $3 billion compact negotiated between Gov. Rick Scott and the tribe (and which could allow a new casino in South Florida.)

With another session dawning, it will be interesting to watch whether or not the state's top legal officer weighs in on the various legal issues that surrounding gambling or gaming. Or if she will remain in a neutral (and silent) corner.

(This post has been updated to note that FanDuel is expanding its workforce in Florida.)

What Jeb Bush's friends (and others) want in a new budget

Latest round of inside the Tally bubble news....

Will he or won't he...fly away to Paris?

State legislators this week began a 20-day special session in an effort to pass a new state budget to avoid a possible partial government shutdown at the end of the month.

The timing of the session, however, is coming at a bad time for Gov. Rick Scott.

Scott has been planning to attend this year's Paris Air Show. It will be his 11th trade mission since he became governor - and the first one since he was re-elected last November.

But the air show is scheduled to run from June 15 to June 21 _ or exactly when the special session could be running into crunch time. (Not to mention that Scott will only have a handful of days to sign the budget into law once it is adopted.)

Last week during a meeting of Enterprise Florida a business leader told Scott that he was looking forward to joining him in Paris. Scott didn't say anything in response.

But when asked if the governor would actually leave town, the Scott administration said "it's a game day decision."

The rationale for the trip is that Florida is home to a lot of aviation and aerospace companies. But Scott _ who has had a limited presence during the special session so far _ could risk being out of the country at a critical moment for state government.

"I hope we can get him out of here in time," quipped Sen. Tom Lee, the Senate budget chief when asked whether or not the governor should attend the event.

What Jeb's allies want

While the fate of Florida's safety net hospitals, tax cuts and the fate of Scott's boost in school funding are the top items at play in the budget this year, there's plenty left in the $77-$80 billion spending plan that will be the target of lobbying in the next few days.

Take for example an appropriation in the House budget for $1.2 million to provide liability insurance to teachers.

This is not a new idea and had been in place while Gov. Jeb Bush was in office. The idea is for the state to help pay for coverage and take away a recruiting tool for the Florida Education Association - which right now is engaged in a lawsuit against Florida's tax credit scholarship program. (This program pays for roughly 70,000 kids to attend private schools around the state.)

Patricia Levesque, a former top policy aide to Bush, chief executive officer of the Foundation for Excellence in Education, executive director of the Foundation for Florida's Future, wrote an email to Senate budget chief Tom Lee strongly urging that the Senate set aside the money for the program.

In a March 31 email with the subject line - "couple of new budget issues for your radar" - Levesque wrote:

    "There is a policy moving in the House that would provide every full-time teacher in the state with liability insurance coverage to match the level provided by the teacher's union. As you know, one of the primary reasons teachers give for joining the union is the liability insurance coverage. Teachers are not told that most districts have coverage for their employees or that they could buy a person rider on their homeowner's policy for $100. Instead they join union and pay $650- $850/year in membership dues. The state can provide comparable liability insurance coverage for only $5-6 per teacher ($1.2 million).

You might remember that we had this policy in place for a few years (2001-2006). It took a couple years for the information to get down to teachers - it wasn't until year 3 of the state-provided insurance that insurance cards were actually sent to the teachers before the  start of the school year. But as soon as that occurred, the union immediately began working to repeal it. We believe there was a significant hit to membership that year. We think this policy is important to show teachers the state supports them, while giving them peace of mind and allowing them to choose whether or not they want to save their membership dues."

Bush _ who will announce his candidacy for president on June 15 _  left the foundations that he started ahead of his active consideration of the Republican nomination.

But this is a reminder of the long-running battle that Bush and his allies have waged against the state's teacher union (which helped boost the candidacy of Bill McBride, the Democratic nominee for governor who challenged Bush in 2002.)

Big money, big contracts also at stake

Another long-running battle at stake in this year's special session?

Florida's law-enforcement radio contract.

The ongoing tug-of-war over the contract, which now belongs to Florida-based Harris Corp., has been documented over the last couple of years. Part of the debate has been whether to move ahead and begin procurement now for a new contract in advance of the 2021 expiration of the existing one.

But Rep. Ritch Workman, the powerful Rules Committee chairman (and who is missing the first part of the session because he's out of the country), wrote to the Department of Management Services late last month to make the case for his hometown company.

Workman told DMS that Harris would upgrade the existing network to a new type of technology for the radios under its existing contract "at no additional cost." This would obviate the need to award a 19-year contract that could cost nearly $1 billion to fully implement.

Download Workman Request

The catch is that the state would have to buy the additional radios needed to run on this system. That would be a $84 million cost according to estimates that Harris provided to DMS.

DMS Secretary Chad Poppell in his response to Workman agreed that "savings to the state may exist." But he added he looked forward to "productive discussions" with the Legislature to fund it. He also said it would require a substantial technical undertaking to fully evaluate the proposal. Poppell also said that DMS would likely have to hire additional employees in order to oversee the project.

Download Response Letter

One of Harris's main competitors for the new contract, however, has a slightly different viewpoint on the proposal.

A project manager for Motorola Solutions wrote Poppell and said the proposal "amounts to a tactic to bypass the state's competitive bidding laws."

"If the state were to implement this proposal as written, it could become a very costly mistake,'' wrote Jay Malpass, strategic project manager for Motorola Solutions.

The letter contends that Harris' proposal would allow it to get a head start on other vendors in advance of the new contract.

"We want to be clear that it is our opinion that if the state proceeds with the accepting the Harris proposal, it will create an anti-competitive environment in which legitimate vendors would not be in a position to offer what will be a better, more comprehensive and cost effective solution to the state."

As Marc Caputo with Politico noted this morning on the same subject: The contracting battle should be closely watched because those backing Harris are friends, allies and big time fundraisers of Gov. Rick Scott. The Harris roster of lobbyists includes Brian Ballard and the rest of Ballard Partners as well as long-time Scott pal Billy Rubin and other lobbyists in The Rubin Group including former top Scott aide Chris Finkbeiner.

Motorola is represented by Southern Strategy Group - the deeply-connected well-heeled firm formed by Paul Bradshaw, attorney, lobbyist, and who been in close contact with many top GOP politicians in the state. Bradshaw's wife, Sally Bradshaw, is a former chief of staff for Jeb Bush and will likely have a substantial role in helping him run for president.

SSG's long-roster of lobbyists also includes many former top officials in state government during the last two decades.

The slow fading light of a Scott initiative

Sorry for the delay - time for another installment of Inside the Tallahassee bubble news

Three years ago this May Gov. Rick Scott unveiled an initiative that he said would help citizens hold their government accountable.

Project Sunburst as it was called was described as a way to increase access to public records held by the Scott administration - while at the same time helping cut down on the number of record requests constantly flowing in for emails from both the governor and his staff.

When it started the initiative included the emails of Scott and members of his leadership team (although noticeably absent were the emails of his budget chief and general counsel.)

And when asked about other records, such as correspondence and letters written by Scott, then-Chief of Staff Steve MacNamara promised that would be added as well.

Let's flash forward and see what's there now.

Letters? That never really got going. All that is on is the site are 11 letters written in June 2012.

Ok, so what about emails?

Well, there are more folders associated with former employees than people working there now.

There are four deputy chiefs of staff reporting to Melissa Sellers, Scott's chief of staff and campaign manager for his re-election. None of them have their emails included in Sunburst. Nor does Scott's current cabinet affairs director - an area that has been the source of consternation in recent months since the forced dismissal of Florida Department of Law Enforcement Commissioner Gerald Bailey.

Emails going into an account for Lt. Gov. Carlos Lopez-Cantera appear to have stopped going into Sunburst this past January.

There is still traffic in Sellers account - but it mainly consists of her schedule and emails she receives. She appears to have adopted the same policy as her predecessor and refrains from using her state account to send anything out.

Sunburst does still show Scott's own email account although the great bulk of that account are emails received to his public account from citizens around the state. The site also does include the emails of Scott communications director Jackie Schutz although her account hasn't been updated since May 7.

Another legal battle brewing over taxpayer-helped campaigns

Former State Rep. Perry Thurston lost his bid last year to become the state's top legal affairs officer.

But Thurston is embarking on a legal challenge that could affect future statewide campaigns.

The unsuccessful Democratic candidate for attorney general and his attorney Mark Herron are asserting that the Department of State improperly denied his request last summer for matching funds.

To refresh everyone's memory: Matching funds are taxpayer money that is made available to statewide candidates based on certain eligibility criteria. Those who meet the criteria receive an initial two-for-one match for contributions from Florida residents followed by additional distributions at a one for one match.

The Legislature tried to repeal the program but voters turned down a proposed amendment to get rid of the money.

Thurston asserts he cleared the thresholds needed to get the matching funds including raising at least $100,000.

But in its filing with the Florida Elections Commission attorneys who work for Secretary of State Ken Detzner maintain that the documentation submitted by Thurston in August 2014 put him at slightly more than $99,000 - or below the threshold. They contend that the Thurston campaign did not question the omission of other documentation until after he has lost the Democratic primary to George Sheldon and by then it was too late because he was no longer a candidate.

"If individuals were permitted to submit supplementary documentation to establish the $100,000 threshold for eligibility at any time, even after being eliminated as a candidate, there would be no limiting principle to achieve finality,'' states the filing by then-department general counsel J. Andrew Atkinson.

Thurston appealed the finding to the commission but the panel last week voted against him.

Herron says his client plans to take the case to the 1st District Court of Appeal. He contends that this is an important case because the division used minor issues - the fact that a copy of the check was partially turned down and hid part of an address - to deny Thurston's submission. If the division had counted these checks then Thurston would have been eligible. The October submission was merely resubmitting the same information with new copies of the checks.

The amount of money that Thurston could be eligible for if he wins the case would not be unsubstantial. The division itself acknowledges that if Thurston had been crossed the initial threshold he would have been entitled to roughly $75,000.

In its filing division attorneys assert it is pointless to pay the money now because under law it would have be returned to the state's general revenue account. Herron disputes that as well.

The long and winding investigation finally reaches its end

Some 10 months after Gov. Rick Scott ordered an investigation into how and why emails were lost and deleted during his transition period state law-enforcement authorities have concluded that they have found no evidence that anyone did anything wrong.

A story about the conclusions reached in the report can be found here.

The report in essence says that top campaign officials such as Scott campaign manager Susie Wiles and Harris Media adviser Amy Brown knew that the Scott transition team email accounts were being shut down but no one realized that emails would not be preserved.

"Information obtained by FDLE during the course of this investigation would indicate that the decision to close the scottransition.com email accounts were made by Susan Wiles and Amy Brown without consulting Governor Soctt or any other GSTT (Gov. Scott Transition Team) member and with no intention of deleting data,'' states the report.

The report also says that top transition team attorneys such as Chris Kise and Pat Gleason told transition team members and Scott that the records were public but that Kise and Gleason did not receive the January 2011 email telling everyone that the transition email accounts were being shut down.

Here's a copy of the executive summary of the FDLE report:  Download Transition emails

The backstory here is that Scott ordered the investigation after The Tampa Bay Times first reported the emails were missing. That was followed by Associated Press stories that showed that some of the emails not initially turned over included ones sent directly from former Gov. Jeb Bush to Scott and his team. These emails included advice he gave to the governor and an email to Wiles where Bush complained about some of the people that Scott was firing in the governor's office.

But more tidbits could be forthcoming since the Scott administration has decided to put anywhere from 33,000 to 50,000 pages of transition documents on its Project Sunburst website. This includes material that was recovered during the Florida Department of Law Enforcement investigation.

 

 

 

Could any of these bills get vetoed by Gov. Rick Scott?

Gov. Rick Scott on Wednesday will sign several bills that consist of the "jobs agenda" that he outlined last fall.

And that's when it will start to get interesting.

There have been few surprises so far since the 2012 session ended. Scott signed the "inspirational messages" bill and this latest batch of legislation includes an overhaul of the unemployment compensation system and tax breaks, including another small cut of the state's corporate income tax.

But in the next few weeks Scott will sort out the remaining bills from this year and figure out whether or not he plans to go along with many of the ideas that his GOP colleagues in the Legislature acted on.

Not counting his budget vetoes, Scott last year vetoed 10 bills sent to him by state lawmakers, which is actually on par, or even a little bit below other governors in recent years.

Gov. Charlie Crist - who was at war with lawmakers during his independent bid for U.S. Senate in 2010 - vetoed 17 bills his final year in office (several of which were later overridden) and 18 bills in 2007. Back in 2005 then Gov. Jeb Bush a.k.a. "Veto Corleone" nixed some 36 bills sent to him by the Legislature.

It was Bush who told Scott in an email before he became governor that it was okay to veto "stupid bills."

Here then are some bills to watch Scott on in the next few days and weeks:

HB 5301: Back when Scott was campaigning against Bill McCollum in the GOP primary in 2010 he actually came out against what he called mandates being imposed on local governments. Scott told a group of business leaders in Panama City that he did not support strict limits on spending and taxes for local governments, saying at the time "I believe that what Tallahassee should be doing is dealing with Tallahassee issues." 

But sitting on his desk is a budget conforming bill that contains a contentious provision that withholds money from counties in an effort to collect $325 million in contested past-due Medicaid billings. County governments have argued this is yet another mandate, an argument that should have some resonance with Scott.

This legislation, however, includes several other changes, including a limit on how many times Medicaid will pay for hospital emergency room visits for non-pregnant adults and a provision that would allow the children of state employees to be enrolled in the state's subsidized KidCare program. Scott must act on this bill this week but there are signs that he will let it become law because it is tied to the state budget. (UPDATE: Scott signed the bill, although in a letter the governor tried to assuage counties that the state would "work diligently" to make sure that all the billings are valid and accurate. Counties, meanwhile, sharply criticized the decision as a "body blow" to taxpayers.)

HB 7129: This is the tuition bill for the University of Florida and Florida State University. If it becomes law the legislation would allow these two research universities to raise tuition annually above the existing 15 percent cap that now exists in state law. The logic behind the bill - which was a top priority for House Speaker Dean Cannon - is to give UF and FSU the financial resources to make themselves more nationally competitive. But the bill also clashes with Scott's oft-repeated line that tuition should not go up this year and that universities ought to give him more examples of spending existing money wisely before hiking tuition. (UPDATE: Scott vetoed this legislation saying it would increase the debt burden of students.

SB 1994: The Florida Polytechnic University bill. This is the legislation pushed by Sen. J.D. Alexander that would officially divorce the Lakeland branch campus of the University of South Florida and turn into the state's 12th public university. Scott so far has refused to take a stance on the creation of a new school, but has expressed skepticism about it. The problem for Scott, however, is if vetoes the bill then he wipes out $16 million in funding, including $6 million for the USF College of Pharmacy and $10 million to allow current USF Polytechnic students to complete their degrees at USF. (UPDATE: In a bit of surprise, Scott signed this legislation into law.)

HB 7117: This is an energy bill that was championed by Agriculture Commissioner Adam Putnam. But the legislation - which includes $16 million in renewable energy tax credits - has come under fire by several different groups, including conservative organizations as well as the Florida Renewable Energy Producers Association. Scott during his first two years in office has continued to be skeptical about energy issues, although his main objection has centered around proposals that would raise utility bills in order to pay for renewable energy. (UPDATE: Scott signed this law although he expressed concerned about some of the provisions.)

HB 5011: State Information Technology. For most people outside of Tallahassee, this bill means little. But it's a big deal for the lobbyists and others who make a living off the millions spent by the state on technology. This bill blows up an existing state agency - the Agency for Enterprise Information Technology - and creates a new agency called the Agency for State Technology which reports to the governor and Cabinet. For those who aren't keeping count this would be the third reconfiguration of how the state handles technology issues in the last decade. The legislation also halts and repeals an already begun process to consolidate the state's email service. Rep. Denise Grimsley, the House budget chief, defended the move to get rid of the email consolidation, contending it would wind up costing the state more than anticipated. But it's worth pointing out that Scott himself early on wondered aloud why state government had multiple email accounts as opposed to the way that most businesses handle it. (UPDATE: Scott vetoed the bill.)

HB 945: Broadband Internet Service. This is another bill that not a lot of people kept an eye on. It transfers a federal stimulus-backed program from one state agency to another. But the legislation was pushed into law at the urging of lobbyists who work for a vendor that held a state contract that was not renewed. The Associated Press already reported that the legislative proposal was so closely aligned with the lobbying firm of former Republican Party of Florida chairman Al Cardenas that the Senate bill sponsor referred questions about the bill to a lobbyist working for Cardenas. That same AP story pointed out that the state agency now in control of the program has warned internally that the transfer will require federal approval and could put millions in federal grants in jeopardy. (UPDATE: This bill was signed by the governor.)

HB 937: Legal notices. Just consider this one a bit of a hunch. Scott of course famously shunned newspaper editorial boards during his 2010 campaign for governor. But since that time he has actually taken a keen interest in the news industry, including recent business moves in Florida such as the decision by Halifax Media to acquire papers owned by the New York Times Company. This legislation is aimed at ending a few years of battle over the future of legal notices. The bill requires the online listing of legal notices for no extra charge, but also keeps them in printed newspapers. In previous years legislators had tried to end the use of printed legal notices completely. The final product is supported by the Florida Press Association so it will be interesting to see how the governor responds.

Gov. Rick Scott "freaking emails" and his "freaking phone"

In the last few weeks, it has been disclosed that transition related emails for Gov. Rick Scott and his team may have been lost.

Then it was discovered that emails that had been on Scott's iPad were accidentally deleted.

It also turns out that emails on Scott's Blackberry also may have been lost, although some were recovered.

Newly-released records show that Florida Department of Law Enforcement agents brought in to help after the iPad incident back in April decided to see if Scott's Blackberry still had the emails on them.

The only problem is that the Blackberry was linked to the transition email account that got shut down in late January.

An April 29 email from an agent in FDLE's digital evidence section says that 87 pages of content was recovered off the Blackberry but there was no way to know for sure whether or not all the emails were recovered.

"Everyone involved acted with extreme professionalism and due diligence under non-ideal circumstances," wrote Jennifer Roeder. "I just wish that freaking emails were still on freaking phone."

Here's the rest of the story.