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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 S [ IN A MANNER CONSISTENT WITH THE GOVERNMENT
             10      RECORDS ACCESS AND MANAGEMENT ACT
] s
.
             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 h ITS MANAGEMENT COMMITTEE AND S , WITH THE EXCEPTION OF ITS
             72A      BOARD OF ETHICS, AUDIT COMMITTEE, AND COMPENSATION COMMITTEE s h any h S [ [ ] other
             72B      [ ] ] s h h STANDING h
             72a      committee of the public sports entity, are regularly
             72a      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 h MANAGEMENT COMMITTEE, h
             74a      h STANDING h committee or the board
             74a      of trustees to
             75      hold a closed meeting upon the affirmative vote of 2/3 of the trustees h , MANAGEMENT
             75a      COMMITTEE, h or h STANDING h committee
             75a      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      S in a manner consistent with Title 63, Chapter 2, Government Records Access and Management
             101      Act
] s
. h AS A PART OF THOSE PROCEDURES, THE PUBLIC SPORTS ENTITY SHALL ESTABLISH AN
             101a      INTERNAL APPELLATE PROCESS. RECORDS AVAILABLE PURSUANT TO THE PROCEDURES
             101b      ESTABLISHED BY A PUBLIC SPORTS ENTITY IN ACCORDANCE WITH THE REQUIREMENTS OF THIS
             101c      SUBSECTION (2)(f), ARE ONLY THOSE RECORDS CREATED OR RECEIVED BY, OR THAT
             101d      OTHERWISE COME INTO THE POSSESSION OF THE PUBLIC SPORTS ENTITY AS OF MAY 3, 1999,
             101e      THE EFFECTIVE DATE OF H.B. 285, 1999 GENERAL SESSION. h S ON OR BEFORE JULY 1, 1999,
             101f      THE SALT LAKE OLYMPIC ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER GAMES OF 2002
             101g      SHALL REPORT REGARDING THE PUBLIC ACCESS PROCEDURES IT HAS ESTABLISHED
             101h      PURSUANT TO THIS SUBSECTION (2)(f), TO THE LEGISLATIVE MANAGEMENT COMMITTEE AND TO
             101i      THE OLYMPIC COORDINATION COMMITTEE CREATED PURSUANT TO SECTION 63A-10-109. s
             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


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