H.B. 285

1

DISCLOSURE OF OLYMPIC-RELATED
2 TRANSACTIONS
3 1999 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David M. Jones
6 AN ACT RELATING TO PUBLIC SPORTS ENTITIES; PROVIDING THAT ALL
7 COMMITTEE MEETINGS BE OPEN TO THE PUBLIC, WITH SPECIFIED EXCEPTIONS;
8 AND REQUIRING THAT PROCEDURES BE ESTABLISHED TO PROVIDE PUBLIC
9 ACCESS TO RECORDS IN A MANNER CONSISTENT WITH THE GOVERNMENT
10 RECORDS ACCESS AND MANAGEMENT ACT.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 63A-7-107, as last amended by Chapter 194, Laws of Utah 1996
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 63A-7-107 is amended to read:
16 63A-7-107. Restrictions on public sports entities.
17 (1) (a) As a condition to receiving or using any state money to organize, book, schedule,
18 provide, operate, or conduct any public sports event, or to using any public sports facility, each
19 public sports entity shall:
20 (i) prior to using any public money, establish internal financial controls, procedures, and
21 plans relating to the use of public money, including personnel hiring policies and contracting
22 procedures that are reviewed and approved by the authority;
23 (ii) submit to the authority for review and approval and to the Division of Finance for
24 review, a detailed budget relating to the use of public money, containing budgeted and projected
25 revenues and expenditures, including budgeted salaries funded in whole or in part with public
26 money by position and any other information considered necessary or appropriate by the authority;
27 (iii) prior to using any public money, submit to the authority and the Division of Finance

28 for review and approval all agreements, together with all amendments to them, relating to the use
29 of state money or the use of any public sports facility unless the authority board reasonably
30 determines that:
31 (A) the size of the project, the scope of the public sports event, or the amount of state
32 money used is of a minimal or insignificant nature, or that compliance with the requirements of
33 Subsection (1)(a)(iii) is unduly burdensome to either the state or the public sports entity; and
34 (B) the exemption is in the public interest;
35 (iv) submit to the authority for review and approval and to the Division of Finance for
36 review a detailed plan, together with appropriate supporting materials, under which funds,
37 budgeted or unbudgeted, are:
38 (A) identified and earmarked for return and are returned to the Olympics Special Revenue
39 Fund and to each of the state's political subdivisions that provided sales tax revenues under
40 Subsection 59-12-103 (4) on a regular basis as required by the authority; and
41 (B) identified and earmarked for payment into and paid into an endowment fund for the
42 payment of the operation and maintenance costs of public sports facilities;
43 (v) submit to an annual audit of the state auditor of its use of any public money pursuant
44 to the guidelines provided for in Section 67-3-1 , or cause an annual audit to be made by an
45 independent auditor approved by the state auditor; and
46 (vi) submit to audits of the legislative auditor general of its use of any public money
47 pursuant to Section 36-12-15 .
48 (b) Notwithstanding any other provision of this chapter, the authority may exempt a public
49 sports entity from any of the requirements of Subsection (1)(a) or Section 63A-7-105 if the
50 authority reasonably determines that the matter being exempted does not relate to the use of state
51 money or the use of any public sports facility. When the matter relates to the use of state money
52 or the use of any public sports facility, then an exemption may be granted only when the authority
53 reasonably determines that:
54 (i) the size of the project, the scope of the public sports event, the amount of state money
55 used is of a minimal or insignificant nature, or that compliance with the requirements of
56 Subsection (1)(a) or Section 63A-7-105 is unduly burdensome to either the state or the public
57 sports entity; and
58 (ii) that the exemption is in the public interest.

59 (2) As a condition to receiving or using any state money to organize, book, schedule,
60 provide, operate, or conduct the Olympic Winter Games or to using any public sports facility to
61 organize, book, schedule, provide, operate, or conduct the Olympic Winter Games, each public
62 sports entity, shall:
63 (a) establish and follow a procedure under which its officers, its key employees, and the
64 members of its governing and advisory bodies:
65 (i) have no undisclosed economic interest in the Olympic bidding process or the
66 construction, maintenance, operation, engineering, site selection, or management of any public
67 sports facility; and
68 (ii) consider the nomination and selection of its members from identifiable constituent
69 groups, including amateur athletic associations and cities and counties where Olympic venues are
70 proposed to be located;
71 (b) establish and follow a procedure under which meetings of its full board of trustees, as
72 well as meetings of any other committee of the public sports entity, are regularly held, open to the
73 public, and for which notices and agendas are publicly posted in advance and minutes and other
74 records are kept, except that the procedure may permit the committee or the board of trustees to
75 hold a closed meeting upon the affirmative vote of 2/3 of the trustees or committee members
76 present at an open meeting for any of the following purposes:
77 (i) discussion of the character, professional competence, or physical or mental health of
78 an individual;
79 (ii) strategy sessions with respect to:
80 (A) collective bargaining;
81 (B) litigation;
82 (C) bidding for the Olympic Winter Games and other events when an open discussion
83 would put the public sports entity at a competitive disadvantage with respect to the other bidders;
84 (D) the negotiation, but not approval, of contracts and agreements when an open
85 discussion would prevent the public sports entity from entering into the contract or agreement on
86 the best possible terms; or
87 (E) the purchase of real property;
88 (iii) discussion regarding deployment of security personnel or devices; and
89 (iv) investigative proceedings regarding allegations of criminal or other misconduct;

90 (c) establish and follow a procedure under which the entity's overall budget and other
91 information, as described in Subsection (1), is reviewed, adopted, and discussed in open meetings
92 required to be held under the guidelines described in Subsection (2)(b);
93 (d) establish and follow procurement procedure pursuant to which no bid may be awarded
94 to a relative of a member or officer of the governing, advisory, or other bodies affiliated with the
95 entity unless the relationship is disclosed to the entity's governing board; [and]
96 (e) establish and follow a procedure under which budgets, expenditures, and selection of
97 sites related to public sports facilities, and public statements and representations related thereto be
98 approved by a majority of the governing or policymaking body of the entity[.]; and
99 (f) establish and follow procedures under which the public is granted access to its records
100 in a manner consistent with Title 63, Chapter 2, Government Records Access and Management
101 Act.
102 (3) Any public sports entity, any of its officers, its employees, or any member of its
103 governing or advisory bodies that knowingly violates Subsection (2)(a)(i), knowingly fails to
104 disclose any economic interest referred to in Subsection (2)(a)(i), or solely because of the
105 affiliation the officer, employee, or member has with the public sports entity, knowingly receives
106 any economic benefit, is guilty of a class A misdemeanor and subject to a civil penalty of the
107 greater of $10,000 or the amount of any such economic benefit.
108 (4) A public sports entity and any commission, board, or committee of a public sports
109 entity, is not a commission, board, or committee of a municipality.




Legislative Review Note
as of 1-28-99 10:17 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel