Gov. Scott wants blind trust lawsuit dismissed

Herald/Times Tallahassee BureauMay 20, 2014 

TALLAHASSEE -- Gov. Rick Scott's administration and fellow Republicans in the Legislature want the Florida Supreme Court to dismiss a lawsuit challenging the constitutionality of a year-old law that allows elected officials to place assets in blind trusts.

The emergency lawsuit was filed last week by Jim Apthorp, who was chief of staff to the late Gov. Reubin Askew, who died in March. Together they worked on a citizens' initiative to pass the so-called Sunshine Amendment in 1976 that requires elected officials and candidates to make a "full and public disclosure" of their personal finances.

Apthorp says a blind trust denies citizens information that should be public. He is supported by the League of Women Voters, the First Amendment Foundation and many Florida news organizations.

Scott, whose net worth last year was almost $84 million, is the only current elected official with a blind trust, the Richard L. Scott Trust. To safeguard against potential conflicts of interest, the law requires that he have no direct control over or knowledge of how at least $73 million in his investment portfolio is managed.

Scott's trust is managed by Alan Lee Bazaar of the New York investment firm Hollow Brook Management. For more than a decade until 2010, Bazaar was a principal in Scott's investment firm, Richard L. Scott Investments of Naples.

The Legislature and Secretary of State Ken Detzner filed separate briefs Monday attacking all of Apthorp's legal arguments and flatly calling his strategy "wrong" on multiple counts, noting that former Gov. Jeb Bush and former Chief Financial Officer Alex Sink had blind trusts as well.

"Blind trusts have been widely accepted in Florida for years, and they serve the very interests the Sunshine Amendment promotes," said Assistant Attorney General Allen Winsor on behalf of Detzner.

Winsor noted a statewide grand jury on public corruption in 2010 specifically recommended passage of a blind-trust law to "reduce the capacity of those who would use a Florida public office for malfeasance."

The Legislature argues that no emergency exists; that the Sunshine Amendment itself gave the Legislature the power to define "full and public disclosure" and that Detzner has no authority to "refuse to accept" papers of a candidate who has a blind trust, as Apthorp is seeking.

The Legislature also said Apthorp's lawsuit "is simply wrong" in arguing that an official can place assets into a blind trust "instead of" filing a financial disclosure statement listing all assets and liabilities worth more than $1,000. In fact, the official must file both, the Legislature said, adding: "The court deserves a more complete description of the law."

The blind-trust provision was part of a broader ethics bill (SB 2) that was a priority of legislative leaders in the 2013 session.

Not one legislator voted against it, and Detzner and the Legislature both pointedly questioned the timing and motivation of the lawsuit -- by a Democrat at a time when Scott is running for reelection.

The seven-member Supreme Court has to act fast because the week-long candidate qualifying period opens June 16. That is also when candidates must file financial statements.

The court could issue a ruling, dismiss the lawsuit or transfer the case to a circuit court judge in Tallahassee.

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