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Third Substitute H.B. 229

Senator Lane Beattie proposes to substitute the following bill:


             1     
STATE OLYMPIC COORDINATION AMENDMENTS

             2     
1999 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Jordan Tanner

             5      AN ACT RELATING TO STATE OLYMPIC COORDINATION; MODIFYING THE
             6      MEMBERSHIP AND DUTIES OF THE UTAH SPORTS ADVISORY COMMITTEE;
             7      CREATING THE OLYMPIC COORDINATION COMMITTEE; PROVIDING FOR
             8      MEMBERSHIP AND DUTIES; AMENDING PROVISIONS RELATING TO THE APPROVAL
             9      OF OLYMPIC ORGANIZING COMMITTEE BUDGETS; STATING THAT THE STATE IS
             10      NOT RESPONSIBLE FOR ANY DEBT OR OBLIGATION OF SLOC; AND PROVIDING AN
             11      EFFECTIVE DATE.
             12      This act affects sections of Utah Code Annotated 1953 as follows:
             13      AMENDS:
             14          63A-7-106, as last amended by Chapters 202 and 343, Laws of Utah 1998
             15          63A-7-107, as last amended by Chapter 194, Laws of Utah 1996
             16          63A-7-111, as last amended by Chapters 146 and 276, Laws of Utah 1997
             17          63A-7-112, as renumbered and amended by Chapter 215, Laws of Utah 1995
             18      ENACTS:
             19          63A-10-109, Utah Code Annotated 1953
             20      Be it enacted by the Legislature of the state of Utah:
             21          Section 1. Section 63A-7-106 is amended to read:
             22           63A-7-106. Financial plan approval by governor and mayor -- State Olympic Officer
             23      access to and report on financial information.
             24          (1) [(a)] Any public sports entity that hosts, organizes, conducts, or operates the Olympic
             25      Winter Games shall:


             26          [(i) quarterly] (a) no later than S [ 30 ] 45 s days after the last day of each calendar quarter, submit
             27      [the financial plan] a budget for hosting the games, including any substantive or material changes
             28      to the budget since it was last submitted, to the governor and the mayor of Salt Lake City for
             29      review and approval;
             30          (b) submit to the State Olympic Officer:
             31          (i) financial information requested by the State Olympic Officer that is substantially
             32      similar to monthly and quarterly reports that are prepared by the public sports entity for a financial
             33      institution providing the public sports entity with one or more revolving or other lines of credit;
             34          (ii) by no later than December 31, 2000, written identification of contracts and payment
             35      amounts, which the public sports entity intends to use to fully fund its obligations described in
             36      Subsection (2)(f); and
             37          (iii) any other financial records requested by the State Olympic Officer;
             38          [(ii)] (c) annually provide to the State Olympic Officer in a form that meets generally
             39      accepted accounting principles, except as noted in the audit opinion, the public sports entity's
             40      balance sheet, income statement, cash flow statement, and the entity's current operating
             41      performance as compared to its budget; and
             42          [(iii)] (d) provide the State Olympic Officer reasonable access during normal business
             43      hours to the financial ledgers of the public sports entity.
             44          (2) The budget submitted by a public sports entity pursuant to Subsection (1)(a), shall
             45      contain any information requested by the governor, and the mayor of Salt Lake City, as well as
             46      documentation that the budget and accompanying information:
             47          (a) includes reliable revenue projections that are estimated to adequately cover anticipated
             48      expenditures under the budget;
             49          (b) includes projected cash flow estimates;
             50          (c) includes reasonably prudent budget contingencies;
             51          (d) maintains, supports, and protects the state's security interest in revenues of the Salt
             52      Lake Organizing Committee for the Olympic Winter Games of 2002, in accordance with joint
             53      resolutions adopted by the Legislature; and
             54          (e) provides for payment of all obligations of the Salt Lake Organizing Committee for the
             55      Olympic Winter Games of 2002 that are due to:
             56          (i) the state, including:


             57          (A) repayment to the Utah Sports Authority of the actual total funds expended or incurred
             58      by the Utah Sports Authority through April 15, 1999, from the Olympics Special Revenue Fund,
             59      not to exceed $59,000,000, in accordance with joint resolutions adopted by the Legislature;
             60          (B) payment to the state of an amount equal to the bond obligations owed with respect to
             61      the State Building Ownership Authority bond, in accordance with the requirements of S.J.R.14
             62      passed by the Legislature in the 1998 General Session; and
             63          (C) payment for services or property in accordance with Section 63A-10-107 ;
             64          (ii) the Utah Athletic Foundation, including the payment of $40,000,000 in accordance with
             65      joint resolutions adopted by the Legislature; and
             66          (iii) the University of Utah, for use of the university's stadium for opening and closing
             67      ceremonies in accordance with the requirements of the Ceremonies Agreement dated July 28,
             68      1997.
             69          (3) (a) Beginning the first of fiscal year 1999-2000, the governor shall, no less often than
             70      semi-annually, provide a written review and determination regarding his decision whether to
             71      approve the budget described in Subsection (1)(a). Based on information available at the time of
             72      the governor's review, the governor shall determine whether the budget and accompanying
             73      information includes the requirements described in Subsection (2).
             74          (b) The governor shall provide a copy of his written semi-annual review and also, if
             75      approved, his written approval to the:
             76          (i) president of the Senate;
             77          (ii) speaker of the House of Representatives; and
             78          (iii) Olympic Coordination Committee, created pursuant to Section 63A-10-109 .
             79          (c) The governor's written review and approval, as described in this Subsection (3), does
             80      not constitute a guarantee or certification by the governor regarding the public sports entity's
             81      budget.
             82          (4) (a) No later than 15 days following the submission of the budget pursuant to
             83      Subsection (1)(a), the State Olympic Officer shall report in writing to the Olympic Coordination
             84      Committee. That report shall include a summary of:
             85          (i) the quarterly budget provided by a public sports entity, as required by Subsection (1)(a);
             86      and
             87          (ii) the documentation described in Subsection (2).


             88          (b) The State Olympic Officer's report required by this Subsection (4) does not constitute
             89      a guarantee or certification by the State Olympic Officer regarding the public sports entity's budget.
             90          (5) The review and determination of approval of the budget by the mayor of Salt Lake
             91      City, as required by Subsection (1)(a), shall be in accordance with policy guidelines established
             92      by the Salt Lake City Council.
             93          [(b)] (6) The State Olympic Officer may request from the public sports entity access to any
             94      other financial records not disclosed under Subsection (1)(a). The public sports entity shall
             95      provide the coordinator access to the records if the board of trustees of the public sports entity
             96      approves the request.
             97          [(2)] (7) The State Olympic Officer shall:
             98          (a) distribute the information provided [in] pursuant to Subsection (1)[(a)(ii)] (b) to:
             99          (i) the Division of Finance;
             100          (ii) the state auditor;
             101          (iii) the legislative auditor general;
             102          (iv) the Office of Legislative Research and General Counsel; and
             103          (v) the Office of the Legislative Fiscal Analyst; [and]
             104          (b) review the information provided [under Subsection] pursuant to Subsections (1) and
             105      (2); and
             106          (c) report annually to the Sports Advisory Committee and Executive Appropriations
             107      Committee concerning the financial plan for hosting the games required under Subsection
             108      (1)(a)[(i)], including reporting on the source, timing, reliability of projections, financial soundness,
             109      security position, and contractual status of projected revenues and projected expenditures.
             110          [(3)] (8) At the request of a public sports entity, information obtained by the State Olympic
             111      Officer from the public sports entity shall be a protected record under Title 63, Chapter 2,
             112      Government Records Access Management Act, if:
             113          (a) the record is designated as protected by the public sports entity; and
             114          (b) the information is not public information under this chapter or other state or federal
             115      laws.
             116          Section 2. Section 63A-7-107 is amended to read:
             117           63A-7-107. Restrictions on public sports entities.
             118          (1) (a) As a condition to receiving or using any state money to organize, book, schedule,


             119      provide, operate, or conduct any public sports event, or to using any public sports facility, each
             120      public sports entity shall:
             121          (i) prior to using any public money, establish internal financial controls, procedures, and
             122      plans relating to the use of public money, including personnel hiring policies and contracting
             123      procedures that are reviewed and approved by the authority;
             124          (ii) submit to the authority for review and approval and to the Division of Finance for
             125      review, a detailed budget relating to the use of public money, containing budgeted and projected
             126      revenues and expenditures, including budgeted salaries funded in whole or in part with public
             127      money by position and any other information considered necessary or appropriate by the authority;
             128          (iii) prior to using any public money, submit to the authority and the Division of Finance
             129      for review and approval all agreements, together with all amendments to them, relating to the use
             130      of state money or the use of any public sports facility unless the authority board reasonably
             131      determines that:
             132          (A) the size of the project, the scope of the public sports event, or the amount of state
             133      money used is of a minimal or insignificant nature, or that compliance with the requirements of
             134      Subsection (1)(a)(iii) is unduly burdensome to either the state or the public sports entity; and
             135          (B) the exemption is in the public interest;
             136          (iv) submit to the authority for review and approval and to the Division of Finance for
             137      review a detailed plan, together with appropriate supporting materials, under which funds,
             138      budgeted or unbudgeted, are:
             139          (A) identified and earmarked for return and are returned to the Olympics Special Revenue
             140      Fund and to each of the state's political subdivisions that provided sales tax revenues under
             141      Subsection 59-12-103 (4) on a regular basis as required by the authority; and
             142          (B) identified and earmarked for payment into and paid into an endowment fund for the
             143      payment of the operation and maintenance costs of public sports facilities;
             144          (v) submit to an annual audit of the state auditor of its use of any public money pursuant
             145      to the guidelines provided for in Section 67-3-1 , or cause an annual audit to be made by an
             146      independent auditor approved by the state auditor; and
             147          (vi) submit to audits of the legislative auditor general of its use of any public money
             148      pursuant to Section 36-12-15 .
             149          (b) Notwithstanding any other provision of this chapter, the authority may exempt a public


             150      sports entity from any of the requirements of Subsection (1)(a) or Section 63A-7-105 if the
             151      authority reasonably determines that the matter being exempted does not relate to the use of state
             152      money or the use of any public sports facility. When the matter relates to the use of state money
             153      or the use of any public sports facility, then an exemption may be granted only when the authority
             154      reasonably determines that:
             155          (i) the size of the project, the scope of the public sports event, the amount of state money
             156      used is of a minimal or insignificant nature, or that compliance with the requirements of
             157      Subsection (1)(a) or Section 63A-7-105 is unduly burdensome to either the state or the public
             158      sports entity; and
             159          (ii) that the exemption is in the public interest.
             160          (2) As a condition to receiving or using any state money to organize, book, schedule,
             161      provide, operate, or conduct the Olympic Winter Games or to using any public sports facility to
             162      organize, book, schedule, provide, operate, or conduct the Olympic Winter Games, each public
             163      sports entity, shall:
             164          (a) establish and follow a procedure under which its officers, its key employees, and the
             165      members of its governing and advisory bodies:
             166          (i) have no undisclosed economic interest in the Olympic bidding process or the
             167      construction, maintenance, operation, engineering, site selection, or management of any public
             168      sports facility; and
             169          (ii) consider the nomination and selection of its members from identifiable constituent
             170      groups, including amateur athletic associations and cities and counties where Olympic venues are
             171      proposed to be located;
             172          (b) establish and follow a procedure under which meetings of its full board of trustees are
             173      regularly held, open to the public, and for which notices and agendas are publicly posted in
             174      advance and minutes and other records are kept, except that the procedure may permit the board
             175      of trustees to hold a closed meeting upon the affirmative vote of 2/3 of the trustees present at an
             176      open meeting for any of the following purposes:
             177          (i) discussion of the character, professional competence, or physical or mental health of
             178      an individual;
             179          (ii) strategy sessions with respect to:
             180          (A) collective bargaining;


             181          (B) litigation;
             182          (C) bidding for the Olympic Winter Games and other events when an open discussion
             183      would put the public sports entity at a competitive disadvantage with respect to the other bidders;
             184          (D) the negotiation, but not approval, of contracts and agreements when an open
             185      discussion would prevent the public sports entity from entering into the contract or agreement on
             186      the best possible terms; or
             187          (E) the purchase of real property;
             188          (iii) discussion regarding deployment of security personnel or devices; and
             189          (iv) investigative proceedings regarding allegations of criminal or other misconduct;
             190          (c) establish and follow a procedure under which the entity's overall budget and other
             191      information, as described in Subsection (1), is reviewed, adopted, and discussed in open meetings
             192      required to be held under the guidelines described in Subsection (2)(b);
             193          (d) establish and follow procurement procedure pursuant to which no bid may be awarded
             194      to a relative of a member or officer of the governing, advisory, or other bodies affiliated with the
             195      entity unless the relationship is disclosed to the entity's governing board; and
             196          (e) establish and follow a procedure under which budgets, expenditures, and selection of
             197      sites related to public sports facilities, and public statements and representations related thereto be
             198      approved by a majority of the governing or policymaking body of the entity.
             199          (3) Any public sports entity, any of its officers, its employees, or any member of its
             200      governing or advisory bodies that knowingly violates Subsection (2)(a)(i), knowingly fails to
             201      disclose any economic interest referred to in Subsection (2)(a)(i), or solely because of the
             202      affiliation the officer, employee, or member has with the public sports entity, knowingly receives
             203      any economic benefit, is guilty of a class A misdemeanor and subject to a civil penalty of the
             204      greater of $10,000 or the amount of any such economic benefit.
             205          (4) A public sports entity and any commission, board, or committee of a public sports
             206      entity, is not a commission, board, or committee of a municipality.
             207          (5) The Salt Lake Olympic Organizing Committee for the Olympic Winter Games of 2002
             208      shall require all parties who contract with that committee, or who provide any service, labor,
             209      material, commodity, money, credit, or assistance to that committee, to agree, in writing, to waive
             210      any claim they may have against Salt Lake City, the authority, and the state, in connection with that
             211      contract or with services rendered pursuant to that contract, and to agree to look solely to the Salt


             212      Lake Olympic Organizing Committee for performance and payment.
             213          (6) The state is not liable or responsible for any contractual or other obligation, debt,
             214      liability, or responsibility of the Salt lake Olympic Organizing Committee for the Winter Games
             215      of 2002 or any other public sports entity.
             216          Section 3. Section 63A-7-111 is amended to read:
             217           63A-7-111. Utah Sports Advisory Committee.
             218          (1) There is created the Utah Sports Advisory Committee.
             219          (2) The advisory committee shall consist of the following [17] members:
             220          (a) five representatives of the Utah League of Cities and Towns, appointed by the Utah
             221      League of Cities and Towns;
             222          (b) two representatives of the Utah Association of Counties, appointed by the Utah
             223      Association of Counties;
             224          (c) two representatives of Salt Lake City, appointed by the mayor of Salt Lake City;
             225          (d) two individuals jointly appointed by the president of the Senate and speaker of the
             226      House:
             227          (i) who prior to or at the time of appointment are athletes; and
             228          (ii) that the president of the Senate and the speaker of the House jointly determine fairly
             229      represent the interests of athletes that will be served by state programs or facilities related to the
             230      responsibilities of the advisory committee; and
             231          (e) [three members of the Senate, appointed by the president of the Senate, not more than
             232      two of whom may be from the same political party;] the members of the Olympic Coordination
             233      Committee, created pursuant to Section 63A-10-109 .
             234          [(f) three members of the House of Representatives, appointed by the speaker of the
             235      House, not more than two of whom may be from the same political party.]
             236          (3) The president of the Senate and the speaker of the House shall each appoint a legislator
             237      to serve as cochairs of the advisory committee.
             238          (4) (a) Except as required by Subsection (4)(b), each advisory committee member, except
             239      the legislative members, shall serve a four-year term.
             240          (b) Notwithstanding the requirements of Subsection (4)(a), the chairs of the committee
             241      shall, at the time of appointment or reappointment of the members appointed under Subsections
             242      (2)(a) through (d), adjust the length of terms to ensure that the terms of those committee members


             243      appointed under Subsections (2)(a) through (d) are staggered so that approximately half are
             244      appointed every two years.
             245          (5) (a) If [the] a member serving pursuant to Subsection (2)(e) no longer serves in the
             246      Legislature, a vacancy is created.
             247          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             248      appointed for the unexpired term in the same manner as the original appointment.
             249          (c) An advisory committee member shall continue to hold office until the advisory
             250      committee member's successor has been appointed and qualified.
             251          (d) (i) When a vacancy occurs or a term expires in the membership of an individual
             252      appointed under Subsection (2)(a) or (b), the appointing authority shall reappoint the individual
             253      or appoint a replacement within 90 days of the date the vacancy occurs or member's term expires.
             254          (ii) If the appointing authority fails to appoint a member within the 90 days required by
             255      Subsection (5)(d)(i), the president of the Senate and the speaker of the House shall jointly make
             256      the appointment.
             257          (6) Any advisory committee member is eligible for reappointment but may not serve more
             258      than four full consecutive terms.
             259          (7) (a) The advisory committee shall meet at least [quarterly] semiannually and at other
             260      times at the call of the cochairs.
             261          (b) A majority of the membership on the advisory committee is required for a quorum to
             262      conduct committee business. A majority vote of the quorum is required for any action to be taken
             263      by the advisory committee.
             264          (c) Any member of the advisory committee may attend, participate in discussions, and
             265      review all materials presented in any of the meetings of the authority board.
             266          (8) The staff to the advisory committee shall be from within the professional legislative
             267      staff offices as determined by the president of the Senate and the speaker of the House.
             268          (9) (a) (i) A member who is not a government employee shall receive no compensation or
             269      benefits for that member's services, but may receive per diem and expenses incurred in the
             270      performance of the member's official duties at the rates established by the Division of Finance
             271      under Sections 63A-3-106 and 63A-3-107 .
             272          (ii) A member may decline to receive per diem and expenses for the member's service.
             273          (b) (i) A state government officer or employee member who does not receive salary, per


             274      diem, or expenses from the officer's or employee's agency for the officer's or employee's service
             275      may receive per diem and expenses incurred in the performance of the officer's or employee's
             276      official duties from the committee at the rates established by the Division of Finance under
             277      Sections 63A-3-106 and 63A-3-107 .
             278          (ii) A state government officer or employee member may decline to receive per diem and
             279      expenses for the officer's or employee's service.
             280          (c) Legislators on the committee shall receive compensation and expenses as provided by
             281      law and legislative rule.
             282          (d) (i) A local government member who does not receive salary, per diem, or expenses
             283      from the entity that the member represents for the service may receive per diem and expenses
             284      incurred in the performance of the member's official duties at the rates established by the Division
             285      of Finance under Sections 63A-3-106 and 63A-3-107 .
             286          (ii) A local government member may decline to receive per diem and expenses for the
             287      member's service.
             288          Section 4. Section 63A-7-112 is amended to read:
             289           63A-7-112. Committee duties.
             290          The advisory committee [shall: (1)] has authority to review and make recommendations
             291      to the Legislature, the governor, the authority board, and to local governments concerning any
             292      activity, function, power, duty, policy, procedure, process, expenditure, or other [aspect of the
             293      authority, any public sports event, or any public sports entity or any issue related to the
             294      implementation of this chapter; and] issue that significantly relates to the coordination of state and
             295      local governments in hosting the Olympic Winter Games of 2002.
             296          [(2) advise the Legislature and governor concerning any activity, function, power, duty,
             297      policy, procedure, process, expenditures, or other aspect of the authority, any public sports event,
             298      or any public sports entity, or any other issue related to the implementation of this chapter.]
             299          Section 5. Section 63A-10-109 is enacted to read:
             300          63-A-10-109. Olympic Coordination Committee -- Creation -- Membership --
             301      Quorum -- Compensation -- Staff -- Committee duties.
             302          (1) There is created the Olympic Coordination Committee consisting of the following 12
             303      members:
             304          (a) five members of the Senate, appointed by the president of the Senate, not more than


             305      three of whom may be of the same political party; and
             306          (b) seven members of the House of Representatives, appointed by the speaker of the House
             307      of Representatives, not more than four of whom may be of the same political party.
             308          (2) The president of the Senate and the speaker of the House of Representatives shall each
             309      appoint a legislator to serve as cochairs of the Olympic Coordination Committee.
             310          (3) The committee shall determine committee quorum and voting requirements in
             311      accordance with Legislative Rules.
             312          (4) Salaries and expenses of the members of the committee shall be paid in accordance
             313      with Section 36-2-2 and Legislative Joint Rule 15.03.
             314          (5) The Office of Legislative Research and General Counsel shall provide staff support to
             315      the committee and shall consult with the Office of Legislative Fiscal Analyst on fiscal issues
             316      studied by the committee.
             317          (6) The committee may review and make recommendations to the Legislature and the
             318      governor on any issue that relates to:
             319          (a) the state's involvement in hosting the Olympics;
             320          (b) the state's role as a creditor and a secured party in relationship to the Olympics and the
             321      Organizing Committee;
             322          (c) the Olympics;
             323          (d) the Organizing Committee; or
             324          (e) the impact of the Olympics on the state after the Olympic games have concluded.
             325          (7) The committee may report any recommendations, including any proposed legislation,
             326      to the Legislative Management Committee.
             327          Section 6. Effective date.
             328          If approved by two-thirds of all the members elected to each house, this act takes effect
             329      upon approval by the governor, or the day following the constitutional time limit of Utah
             330      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
             331      date of veto override.


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