RICK SCOTT - Florida Governor (Tea Party)
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Rick Scott
From Wikipedia, the free encyclopedia
This article is about the politician and former head of Columbia HCA. For other people of the same name, see Richard Scott
(disambiguation).
Rick Scott
45th Governor of Florida
Incumbent
Assumed office
January 4, 2011
Lieutenant Jennifer Carroll
Preceded by Charlie Crist
Personal details
December 1, 1952 (age 59)
Born
Bloomington, Illinois
Political party Republican
Spouse(s) Ann Scott
Jordan
Children
Allison
Residence Naples, Florida[1]
University of Missouri, Kansas City
Alma mater
Southern Methodist University
Profession Business executive
Religion Evangelical Christian
Website Official website
Military service
2. Allegiance United States
Service/branch United States Navy
Years of service 1971–1974[2]
Rank Petty Officer Third Class[3]
Unit USS Glover
Richard Lynn "Rick" Scott (born December 1, 1952) is an American politician who is the 45th and current
Governor of the U.S. state of Florida.
Scott served in the U.S. Navy and then went into business. He earned a business degree and law degree and joined
a Dallas firm where he became partner. In 1987 he helped found the Columbia Hospital Corporation with two
business partners; this merged with Hospital Corporation of America in 1989 to form Columbia/HCA and
eventually became the largest private for-profit health care company in the U.S. He was forced to resign as Chief
Executive of Columbia/HCA in 1997 amid a scandal over the company's business and Medicare billing practices;
the company ultimately admitted to fourteen felonies and agreed to pay the federal government over $600
million.[4][5][6][7][8] Scott later became a venture capitalist, and entered into politics in 2010, when he announced his
intention to run for Governor of Florida. Having defeated Bill McCollum in the Republican primary election, Scott
defeated Democrat Alex Sink in a close race in the 2010 Florida gubernatorial election.[9]
Contents
[hide]
1 Early life and education
2 Early business career
o 2.1 Scott history at Columbia Hospital Corporation
2.1.1 Columbia/HCA fraud case details
o 2.2 Venture capitalist
o 2.3 The Health Network
o 2.4 Solantic
o 2.5 Pharmaca
o 2.6 Other work
3 Political career
o 3.1 Conservatives for Patients' Rights
o 3.2 2010 Florida gubernatorial campaign
4 Florida Governor
o 4.1 Redistricting amendments
o 4.2 Rejection of federal funding for high-speed rail
o 4.3 Port of Miami development
o 4.4 Florida law requiring drug screening for welfare applicants
5 Election history
o 5.1 2010 Florida Gubernatorial race
6 Other
7 References
8 External links
Early life and education
Rick Scott was born in Bloomington, Illinois, and raised in Kansas City, Missouri, where his father was a truck
driver and his mother worked as a clerk at J.C. Penney, among other jobs.[10] Scott graduated from high school in
1970, and then attended one year of community college after which he enlisted in the United States Navy. He was
3. in the Navy for 29 months[11] and served on the USS Glover as a radar technician.[citation needed] Scott later graduated
from the University of Missouri–Kansas City with a bachelor’s degree in business administration and earned a law
degree from Southern Methodist University.[12]
In 1972, he married his high school sweetheart, Ann.[10] They live in Naples and are founding members of the
nondenominational Naples Community Church.[1]
Early business career
Scott made his first foray into business while he was in college, buying and reviving two Kansas City donut shops.
After graduating from law school, Scott practiced law in Dallas, Texas. He was a partner at Johnson & Swanson,
which was the largest law firm in Dallas at that time. One of his major clients was Tom Hicks of HM Capital
Partners.
Scott history at Columbia Hospital Corporation
In April 1987, Scott made his first attempt to buy the Hospital Corporation of America (HCA). While still a partner
at Johnson & Swanson, Scott formed the HCA Acquisition Company with two former executives of Republic
Health Corporation, Charles Miller and Richard Ragsdale.[13] With financing from Citicorp conditional on
acquisition of HCA,[14] the proposed holding company offered $3.85 billion for 80 million shares at $47 each,
intending to assume an additional $1.2 billion in debt, for a total $5 billion deal.[15] However, HCA declined the
offer, and the bid was withdrawn.[16]
In 1988, Scott and Richard Rainwater, a multimillionaire financier from Fort Worth, each put up $125,000 in
working capital in their new company, Columbia Hospital Corporation,[17] and borrowed the remaining money
needed to purchase two struggling hospitals in El Paso for $60 million.[18] Then they acquired a neighboring
hospital and shut it down. Within a year, the remaining two were doing much better.[11] By the end of 1989,
Columbia Hospital Corporation owned four hospitals with a total of 833 beds.[18]
In 1992, Columbia made a stock purchase of Basic American Medical, which owned eight hospitals, primarily in
southwestern Florida. In September 1993, Columbia did another stock purchase, worth $3.4 billion, of Galen
Healthcare, which had been spun off by Humana Inc. a few months before.[19] At the time, Galen had
approximately 90 hospitals. After the purchase, Galen stockholders had 82 percent of the stock in the combined
company, with Scott still running the company.[18]
In 1994, Columbia purchased Scott's former acquisition target, HCA, which had approximately 100 hospitals. In
1995, Columbia purchased Healthtrust, which had approximately 80 hospitals, primarily in rural communities. By
1997, Columbia/HCA had become the world's largest health care provider with more than 340 hospitals, 130
surgery centers, and 550 home health locations in 38 states and two foreign countries. With annual revenues in
excess of $23 billion, the company employed more than 285,000 people, making it the 7th largest U.S. employer
and the 12th largest employer worldwide. Based on market capitalization, Columbia ranked in the top 50
companies in America and top 100 worldwide. That same year, the company was recognized by Business Week
magazine as one of the 50 Best Performing Companies of the S&P 500.
Columbia/HCA fraud case details
On March 19, 1997, investigators from the FBI, the Internal Revenue Service and the Department of Health and
Human Services served search warrants at Columbia/HCA facilities in El Paso and on dozens of doctors with
suspected ties to the company. [20]
4. Following the raids, the Columbia/HCA board of directors forced Scott to resign as Chairman and CEO.[21] He was
paid $9.88 million in a settlement. He also left owning 10 million shares of stock worth over $350 million.[22][23][24]
In 1999, Columbia/HCA changed its name back to HCA, Inc.
In settlements reached in 2000 and 2002, Columbia/HCA plead guilty to 14 felonies and agreed to a $600+ million
fine in the largest fraud settlement in US history. Columbia/HCA admitted systematically overcharging the
government by claiming marketing costs as reimbursable, by striking illegal deals with home care agencies, and by
filing false data about use of hospital space. They also admitted fraudulently billing Medicare and other health
programs by inflating the seriousness of diagnoses and to giving doctors partnerships in company hospitals as a
kickback for the doctors referring patients to HCA. They filed false cost reports, fraudulently billing Medicare for
home health care workers, and paid kickbacks in the sale of home health agencies and to doctors to refer patients.
In addition, they gave doctors "loans" never intending to be repaid, free rent, free office furniture, and free drugs
from hospital pharmacies.[4][5][6][7][8]
In late 2002, HCA agreed to pay the U.S. government $631 million, plus interest, and pay $17.5 million to state
Medicaid agencies, in addition to $250 million paid up to that point to resolve outstanding Medicare expense
claims.[25] In all, civil law suits cost HCA more than $2 billion to settle, by far the largest fraud settlement in US
history.[26]
Venture capitalist
After the forced departure from Columbia/HCA in 1997, Scott launched Richard L. Scott Investments, based in
Naples, Florida (originally in Stamford, Connecticut[27]), which has stakes in health care, manufacturing and
technology companies.
Between 1998 and 2001, Scott purchased 50% of CyberGuard Corporation for approximately $10 million.
Amongst his investors was Metro Nashville finance director David Manning.[27] In 2006, CyberGuard was sold to
Secure Computing for over $300 million.
In February 2005, Scott purchased Continental Structural Plastics, Inc. (CSP) in Detroit, Michigan. In July 2006,
CSP purchased Budd Plastics from ThyssenKrupp, making Continental Structural Plastics the largest industrial
composites molder in North America.
In 2005-2006, Scott provided the initial round of funding of $3 million to Alijor.com, which offered hospitals,
physicians, and other health care providers the opportunity to post information about their prices, hours, locations,
insurance accepted, and personal backgrounds online.[28] The company was founded with his daughter Allison.[27]
In 2008, Alijor was sold to HealthGrades.
In May 2008, Scott purchased Drives, one of the world's leading independent designers and manufacturers of
heavy-duty drive chain-based products and assemblies for industrial and agricultural applications and precision-
engineered augers for agricultural, material handling, construction and related applications.
Scott reportedly has an interest in a chain of family fun centers/bowling alleys, S&S Family Entertainment, in
Kentucky and Tennessee led by Larry Schmittou, one of baseball's legendary minor league owners.[29]
The Health Network
In July 1997, Columbia/HCA Healthcare purchased controlling interest in America's Health Network (AHN), the
first 24-hour health care cable channel. They pulled out of the deal on the day of the closing because Scott and
Vanderwater were terminated. This caused the immediate layoff of over 250 people in Orlando.[30] Later in 1997,
Scott became majority owner of AHN.[31] In 1998, Scott and former Columbia/HCA Healthcare President David
5. Vandewater were the leaders in a group of investors that gave AHN a major infusion of cash so that the company
could continue to operate.[32][33]
In mid-1999 AHN merged with Fit TV, a subsidiary of Fox Networks; the combination was renamed The Health
Network.[34] Later in 1999, in a deal between News Corp., Fox Network's owner, and WebMD, the latter received
half-ownership of The Health Network. WebMD planned to relaunch The Health Network as WebMD Television
in the fall of 2000, with new programming, but that company announced cutbacks and restructuring in September
2000, and in January 2001, Fox regained 100% ownership.[35] In September 2001, The Fox Cable Networks Group
sold The Health Network to its main rival, the Discovery Health Channel, for $155 million in cash plus a 10
percent equity stake in Discovery Health.[36]
Solantic
Solantic, based in Jacksonville, Florida, was co-founded in 2001 by Scott and Karen Bowling, a former television
anchor whom Scott met after Columbia bought what is now Memorial Hospital Jacksonville in 1995.[10] Solantic
opened its first urgent care center in 2002. It provides urgent care services, immunizations, physicals, drug
screening, and care for injured workers. The corporation attracts patients who do not have insurance, cannot get
appointments with their primary care physicians, or do not have primary care physicians. Solantic is intended to be
an alternative to the emergency room care that these types of patients often seek, or for not seeing a doctor at all.
In 2006, Scott said that his plans for Solantic were to establish a national brand of medical clinics.[10] In August
2007, the company received a $40 million investment from a private equity firm and said that it expected to open
35 clinics by the end of 2009, with annual revenues of $100 million once all these clinics were open, compared to
$20 million at the time.[37] As of March 2009, Solantic had 24 centers, all located in Florida.[38]
Solantic was the target of an employment discrimination suit, which allegedly claimed that from a Scott-directed
policy to not hire elderly or overweight applicants, preferring 'mainstream' candidates. It was settled for an
undisclosed sum on May 23, 2007.[39]
Pharmaca
In 2003, Scott invested $5.5 million in Pharmaca Integrative Pharmacies,[40] which operates drugstores/pharmacies
that offer vitamins, herbal medicine, skin products, homeopathic medicines, and prescriptions. Other investors in
Pharmaca include Tom Stemberg, founder and former CEO of Staples, and Arthur Blank, co-founder of Home
Depot.
Other work
In the 1990s, Scott was a partner of George W. Bush in ownership of the Texas Rangers.[41]
Political career
Conservatives for Patients' Rights
Main article: Conservatives for Patients' Rights
In February 2009, Scott founded Conservatives for Patients' Rights (CPR), which he said was intended to put
pressure on U.S. Democrats to enact health care legislation based on free-market principles.[42] As of March, Scott
had given about $5 million for a planned $20 million ad campaign by CPR.[43] CPR opposes the broad outlines of
President Obama's health-care plans and has hired Creative Response Concepts, a public relations firm which
previously worked with the Swift Boat Veterans for Truth among others.
6. 2010 Florida gubernatorial campaign
Main article: Florida gubernatorial election, 2010
Scott ran against Democratic nominee Alex Sink.[44]
On April 9, 2010, Scott announced his candidacy for the 2010 Republican Party nomination for Governor of
Florida.[45] Susie Wiles, former communications chief to Jacksonville Mayor John Peyton, served as his campaign
manager, and Tony Fabrizio was his chief pollster. It was reported on May 7 that Scott's campaign had already
spent $4.7 million on television and radio ads.[46] Scott's first video advertisement was released to YouTube on
April 13.[47]
During the primary campaign, Scott's opponent, Bill McCollum, made an issue of Scott's role at Columbia/HCA.
Scott countered that the FBI never targeted him. Marc Caputo of Miami Herald contended that a 1998 bill
sponsored by McCollum would have made it more difficult to prosecute Medicare fraud cases, and is counter to his
current view and allegation.[48] Scott won the August primary with approximately 47% percent of the vote,
compared to 43% voting for McCollum, with McCollum conceding the race after midnight.
By the October 25, 2010 Tampa debate between Scott and Alex Sink, Scott had spent $60 million of his own
money on the campaign compared to Democratic opponent Alex Sink's $28 million.[49] The Fort Myers News
Press quoted Rick Scott as saying in total he spent $78 million of his own money on the campaign.
Rick Scott ultimately won in the general election for Governor of Florida, defeating Alex Sink by around 68,000
votes, or 1.29%.[50]
Florida Governor
Rick Scott assumed office as the 45th Governor of Florida on January 4, 2011.
Redistricting amendments
In the 2010 elections, Florida voters passed constitutional amendments banning gerrymandering of congressional
and legislative districts.[51] In February 2011, Scott withdrew a request to the United States Department of Justice
to approve these amendments, which according to The Miami Herald may delay the implementation of the
redistricting plan because the Voting Rights Act requires preclearance of state laws likely to have an impact on
minority representation. Scott said he wants to make sure that the redistricting is done properly.[52] Several
advocacy groups sued Scott in federal court to compel Scott to resubmit the acts to the Justice Department.[53]
Richard Pildes, a professor of constitutional law and expert on election law at New York University School of
Law, called Scott's actions "extraordinary" because Scott "is essentially using a federal law obligation that binds
the states to attempt to avoid enforcing a state law that he apparently would prefer the state had not adopted."[54]
Rejection of federal funding for high-speed rail
On February 16, 2011, Scott rejected $2.3 billion in federal funding to develop high-speed rail between Tampa and
Orlando. Scott cited concerns about ridership and cost overruns.[55] In response, a veto-proof majority in the
Florida Senate approved a letter rebuking Scott and asking the Department of Transportation to continue
funding.[56][57] On February 18, United States Senators from Rhode Island Jack Reed and Sheldon Whitehouse sent
a letter to Ray LaHood, the United States Secretary of Transportation, to ask LaHood to redirect some of the rail
funding intended for Florida to Rhode Island. Reed and Whitehouse said the money would improve Rhode Island's
rail system and provide jobs in the state.[58] On March 1, 2011, two state senators filed a petition with the Florida
Supreme Court to compel Scott to accept the rail funds on the grounds that Scott lacked constitutional authority to
7. reject funds that a prior legislature approved.[59] On March 4, 2011, the Florida Supreme Court held that Scott's
rejection of the rail funds did not violate the Florida Constitution.[60]
Port of Miami development
Following his rejection of Central Florida's High Speed Rail project, Rick Scott moved to have the Florida
Department of Transportation amend its work plan to include $77 million for dredging the Port of Miami to a
depth of 50 feet. Once the port is dredged, Panamax-sized vessels coming through the expanded Panama Canal
could load and unload cargo there.[61]
Florida law requiring drug screening for welfare applicants
In June 2011 Governor Scott signed a bill requiring those seeking welfare under the federal Temporary Assistance
for Needy Families program to submit to drug screenings. Applicants who fail a drug test may name another
person to receive benefits for their children.[62] In an interview with CNN host Don Lemon Scott said, "Studies
show that people that are on welfare are higher users of drugs than people not on welfare," and " But the bottom
line is, if they're not using drugs, it's not an issue." Government researchers in 1999 - 2000 reported "that 9.6
percent of people in families receiving some type of government assistance reported recent drug use, compared to
6.8 percent among people in families receiving no government assistance at all." [63] However preliminary figures
show that just 2.5% of applicants tested positive for drugs, with 2% declining to take the test, while the Justice
Department estimates that around 6% of Americans do drugs overall.[64]
Election history
2010 Florida Gubernatorial race
General Election Results[65]
Party Candidate Votes Percentage
Republican Rick Scott & Jennifer Carroll 2,619,335 48.87%
Democratic Alex Sink & Rod Smith 2,557,785 47.72%
Independence Peter Allen & John E Zanni 123,831 2.31%
No party Michael E. Arth & Al Krulick 18,644 0.35%
No party Farid Khavari & Darcy G. Richardson 7,487 0.14%
No party C. C. Reed & Larry Waldo, Sr. 18,842 0.35%
8. No party Daniel Imperato & Karl C.C. Behm 13,690 0.26%
No party Josue Larose & Valencia St Louis (write-in) 121 0.00%
Totals 5,359,735 100%
Republican hold
Source: Florida Division of Elections
Other
Member of the National Board of the United Way, 1997[66] to 2003.[67]
Time Magazine, America's 25 Most Influential People, June 1996[11]
Financial World magazine, silver award for the CEO of the Year, 1995[68]
Columbia University, School of Nursing, Second Century Award for Excellence in Health Care, 1995[68]
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4. ^ a b LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED HCA INVESTIGATION NETS
RECORD TOTAL OF $1.7 BILLION
5. ^ a b Disaster Of The Day: HCA
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healthy again--and might just be a buy". CNN.
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10. ^ a b c d M.C. Moewe (April 14, 2006). "Ex-Columbia chief helps grow Solantic". Jacksonville Business Journal.
11. ^ a b c "Time 25". Time Magazine. June 17, 1996.
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15. ^ "Bid for Hospital Corporation Withdrawn". The Washington Post.
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17. ^ Milt Freudenheim (October 4, 1993). "Largest Publicly Held Hospital Chain Is Planned". New York Times.
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Times.
19. ^ Kathryn Jones (November 21, 1993). "A Hospital Giant Comes to Town, Bringing Change". New York Times.
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27. ^ a b c "Great Scott by Drew Ruble, businesstn, July, 2006. Retrieved 6/23/09.
28. ^ Lisa Sibley (July 25, 2008). "Alijor's online directory of providers growing". San Jose Business Journal.
29. ^ "25 Emerging Companies." Nashville Post. December 1, 2002. Retrieved 6/23/09.
30. ^ Tom Brinkmoeller (July 25, 1997). "Columbia buys stake in America's Health Network". Orlando Business
Journal dead link.
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November 14, 1997.
32. ^ "What's Richard Scott been doing? Keeping a low profile". The (Oklahoma City) Journal Record. August 3, 1998.
33. ^ By early 1999, the network was available in 9.5 million American homes.Lisa Napoli (February 22, 1999). "Where
Dr. Spock Meets 'E.R.' on Line". New York Times.
34. ^ Jill Krueger (June 4, 1999). "AHN getting `fit' with Fox TV; Cable start-up gets backing, distribution muscle with
network merger". Orlando Business Journal.
35. ^ Linda Moss (January 8, 2001). "News Corp. Gets All of Health Network". Multichannel News.
36. ^ "Discovery snaps up rival health network". Media Life Magazine. September 4, 2001.
37. ^ Urvaksh Karkaria (August 15, 2007). "Solantic to expand well beyond state: The urgent-care center is planning to
open 35 more clinics by the end of 2009". Jacksonville Times-Union.
38. ^ Phil Galewitz (April 1, 2009). "Bethesda hospital, Solantic to open urgent care center". Palm Beach Post.
39. ^ Tristram Korten (October 10, 2009). "A healthcare reform foe's alleged history of discrimination". Salon.com.
40. ^ "Pharmaca gets equity to expand store base". Chain Drug Review. December 15, 2003.
41. ^ Ex-Hospital CEO Battles Reform Effort, Dan Eggen, Washington Post, May 11, 2009
42. ^ Mullins, Brody; Kilman, Scott (February 26, 2009). "Lobbyists Line Up to Torpedo Speech Proposals". Wall Street
Journal. Retrieved April 2, 2009.
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one direction". World Magazine.
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Tribune.
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St. Petersburg Times.
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48. ^ Caputo, Marc. "Bill McCollum's attacks on rival Rick Scott clash with record". Miami Herald.
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Articles.orlandosentinel.com. 2010-10-26. Retrieved 2011-05-30.
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Daily.
52. ^ Steve Bousquet (January 25, 2011). "Rick Scott moves to delay redistrict plan". The Miami Herald.
53. ^ Mary Ellen Klas (February 3, 2011). "Gov. Rick Scott sued over decision to halt federal review over redistricting
standards". St. Petersburg Times.
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55. ^ Williams, Timothy. "Florida’s Governor Rejects High-Speed Rail Line, Fearing Cost to Taxpayers", The New York
Times, 16 February 2011. Retrieved on 2011-02-19.
56. ^ Malcolm Out Loud Interview with Rick Scott, malcolmoutloud.tv
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February 2011. Retrieved on 2011-02-19.
58. ^ Associated Press. "RI's US senators request FL high speed rail funds", Bloomberg News, 18 February 2011.
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59. ^ Tracy,Dan & Schlueb, Mark. "2 lawmakers ask high court to force Scott to take high-speed rail money", [[The
Orlando Sentinel, 1 March 2011. Retrieved on 2011-03-01.
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61. ^ "Gov. Rick Scott promises $77 million for Port of Miami project - St. Petersburg Times". Tampabay.com.
Retrieved 2011-05-30.
10. 62. ^ "Florida governor signs welfare drug-screen measure". CNN.com. Retrieved 2011-09-28.
63. ^ "Rick Scott says welfare recipients are more likely to use illicit drugs". PolitiFact.com. Retrieved 2011-09-28.
64. ^ "Fla. welfare applicants less likely to use drugs". AssociatedPress.com. Retrieved 2011-09-28.
65. ^ [1][dead link]
66. ^ "Revised Board of Governors, April 1997", unitedway.org, via archive.org, retrieved April 4, 2009
67. ^ "United Way of America Board of Governors, As of April 27, 2002, unitedway.org, via archive.org, retrieved April
4, 2009 (web page dated February 2003)
68. ^ a b "Health Plan Exec Honored by Nursing School". Columbia University Record (Columbia University). October
20, 1995. Retrieved 2009-04-05.
External links
Governor Rick Scott official Florida government site
Richard L. Scott Investments, LLC
Biography at the National Governors Association
Biography, interest group ratings, public statements, vetoes and campaign finances at Project Vote Smart
Biography at WhoRunsGov.com at The Washington Post
Issue positions and quotes at On the Issues
Campaign contributions at FollowTheMoney.org
Appearances on C-SPAN programs
Collected news and commentary at The New York Times
Profile at Notable Names Database
Party political offices
Republican nominee for Governor of
Preceded by
Florida Most recent
Charlie Crist
2010
Political offices
Preceded by Governor of Florida
Incumbent
Charlie Crist 2011–present
United States order of precedence
Succeeded by
Mayor of city
in which event is held
Preceded by
Order of Precedence of the United States
Joe Biden Within Florida
as Vice President Succeeded by
Otherwise John Boehner
as Speaker of the House of
Representatives
Preceded by Succeeded by
Order of Precedence of the United States
Rick Snyder Outside Florida Rick Perry
as Governor of Michigan as Governor of Texas