October 3, 2011 the Honorable Rick Scott Governor, State Of

RICK SCOTT STATE BOARD OF ADMINISTRATION GOVERNOR OF FLORIDA AS CHAIRMAN JEFF ATWATER 1801 HERMITAGE BOULEVARD CHIEF FINANCIAL OFFICER AS TREASURER TALLAHASSEE, FLORIDA 32308 PAM BONDI (850) 488-4406 ATTORNEY GENERAL AS SECRETARY POST OFFICE BOX 13300 ASH WILLIAMS 32317-3300 EXECUTIVE DIRECTOR & CIO October 3, 2011 The Honorable Rick Scott Governor, State of Florida PL-05, The Capitol 400 South Monroe Street Tallahassee, Florida 32399 Dear Governor Scott: The SBA, like all state entities is required to operate under the current laws and regulations. The laws regarding responding to records requests and the SBA’s investments are clear. The issue relates to a 2006 public records law exemption, one of over 500, was most recently reviewed by the legislature under the mandatory sunset review for all such exemptions. It was also reviewed by the First Amendment Foundation for a second time, received approval by the full legislature for a second time, and was signed into law a second time by Florida’s governor. Furthermore, the exemption is one of very few that provides a specific remedy if the requestor believes information was improperly withheld. To date no requestor has had to rely on this remedy. Additionally, the courts under Sepro Corporation v. Florida Department of Environmental Protection recognize the need for certain protections of trade secret information. In an effort to accelerate our response and manage costs related to the senator’s initial request, the SBA contacted him and as agreed, provided documents at no charge that were readily available and confirm all processes were followed and appropriate safeguards exist to ensure nothing improper occurred during the identification, evaluation and legal negotiation of the subject investment. A copy of that 230 page detailed response has been previously provided to your offices. Upon transmittal of this response, I also offered to address specific follow up questions and/or meet personally with the senator. In response to my offer to meet with the senator, we received only a follow-up request which contained no questions but made 46 separate additional public records requests for documents related to multiple actual and potential investments. I have also attached a copy of the follow-up request for your review. The initial request alone resulted in more than 6,000 responsive documents; the follow-up request is far more expansive. The volume of responsive documentation reflects the extensive due diligence related to any investment made by the SBA. These documents require review and protection of proprietary and confidential information that if improperly released could cause private citizens, participants of the Florida Retirement System, business owners and other investors to suffer significant financial losses and subject the SBA and the funds we manage to lawsuits. Honorable Rick Scott October 3, 2011 Page Two The exemption afforded alternative investments recognizes that the SBA is privy to far more information regarding alternative investments than is typically available regarding publicly traded investments (e.g. business plans, marketing strategies etc.). Even if the SBA’s specific exemption did not exist, the SBA would be required to go through the exact same review process due to case law, Sepro Corporation v. Florida Department of Environmental Protection, requiring that trade secret information be protected. The cost and time to process the records would be similar. This process adds time and costs to any public records request, and exponentially to overly broad requests. The request for reimbursement of costs is in full compliance with the law and consistent with our fiduciary responsibility to the participants of the FRS. The SBA and the Trustees have a long and positive history of working closely with the Florida Legislature and legislative committees that oversee the SBA. The SBA, recognizing that proprietary and confidential business information cannot be released under the law, has been fully transparent with legislators and committees acting in an official capacity. Furthermore, the SBA has always made itself available to answer questions or address concerns that have been presented by legislators, legislative committees, and concerned individuals or groups. The SBA has and will continue to fulfill its fiduciary duties in full compliance with the law and respect for Florida’s citizens. Sincerely, Ashbel C. Williams Executive Director & CIO Attachment cc: Honorable Mike Haridopolos Honorable J.D. Alexander Honorable Jeremy Ring Honorable Dean Cannon Honorable Seth McKeel Honorable Jimmy Patronis SBA Trustees’ Aides Investment Advisory Council Participant Local Government Advisory Council Audit Committee .

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