Senate Bill 1806c1
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Florida Senate - 2000 CS for SB 1806
By the Committee on Fiscal Resource and Senator McKay
314-1907-00
1 A bill to be entitled
2 An act relating to the Olympic Games; providing
3 definitions; stating that the purpose of the
4 act is to provide assurances and commitments
5 necessary for the United States Olympic
6 Committee and the International Olympic
7 Committee to select a host city for the Olympic
8 Games; providing legislative findings; creating
9 the Olympic Games Guaranty Account within the
10 Economic Development Trust Fund for purposes of
11 insuring against financial losses resulting
12 from the games; requiring an operational entity
13 to obtain security of a specified amount;
14 requiring that the local organizing committee
15 provide security of a specified amount;
16 providing for funding the Olympic Games
17 Guaranty Account; providing for funds to remain
18 in the account and be invested by the State
19 Board of Administration; providing for
20 termination of the account if the candidate
21 city is not selected to host the Olympic Games;
22 providing for transfer of funds to the General
23 Revenue Fund; requiring the local organizing
24 committee to provide financial statements to
25 the state; requiring the operational entity to
26 review applications from local organizing
27 committees; providing application requirements;
28 providing requirements for review; authorizing
29 the operational entity to enter into certain
30 joinder agreements with the United States
31 Olympic Committee or the International Olympic
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1 Committee; authorizing additional state
2 agencies to assist in planning for the games
3 and enter into contracts and agreements;
4 providing that the act does not obligate the
5 state to pay for or fund any building or
6 facility; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Definitions.--As used in this act, the
11 term:
12 (1) "Candidate city" means a municipality in this
13 state which has qualified for consideration by the United
14 States Olympic Committee as the United States candidate city
15 to host the XXXth Olympic Games in 2012.
16 (2) "Games" means the XXXth Olympic Games to be held
17 in 2012.
18 (3) "Games support contract" means a joinder
19 undertaking, a joinder agreement, or similar contract executed
20 by the state, a candidate city, or a local organizing
21 committee in connection with the selection of the candidate
22 city to host the games.
23 (4) "International Olympic Committee" or "IOC" means
24 the international governing body responsible for organizing
25 and conducting the Olympic Games.
26 (5) "Joinder agreement" means an agreement entered
27 into by:
28 (a) The state and the USOC or the IOC setting out
29 representations and assurances by the state in connection with
30 the selection of the candidate city to host the games; or
31
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Florida Senate - 2000 CS for SB 1806
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1 (b) A candidate city and the USOC or the IOC setting
2 out representations and assurances by the candidate city in
3 connection with the selection of the city to host the games.
4 (6) "Joinder undertaking" means an agreement entered
5 into by:
6 (a) The state and the USOC or the IOC that the state
7 will execute a joinder agreement if the candidate city is
8 selected to host the games; or
9 (b) A candidate city and the USOC or the IOC that the
10 city will execute a joinder agreement if the city is selected
11 to host the games.
12 (7) "Local organizing committee" means a nonprofit
13 corporation or its successor in interest which:
14 (a) Has been authorized by the candidate city to
15 pursue an application to the USOC and bid on the city's behalf
16 to host the games; and
17 (b) Has executed an agreement with the USOC regarding
18 the candidate city's bid to host the games.
19 (8) "United States Olympic Committee" or "USOC" means
20 the official national Olympic Committee of the United States
21 of America, which has been authorized by law to govern all
22 matters related to national participation in the Olympic
23 Games.
24 Section 2. Purpose.--The purpose of this act is to
25 provide the necessary assurances and commitments required by
26 the USOC and the IOC in selecting a host city for the games.
27 Section 3. Legislative findings.--The selection of a
28 candidate city in this state to host the 2012 Olympic Games
29 will confer significant benefits to the state as a whole and
30 to the communities where the games are held, including:
31 (1) Invaluable public visibility throughout the world;
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Florida Senate - 2000 CS for SB 1806
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1 (2) Increased tourism and economic growth;
2 (3) Significant job creation;
3 (4) Significant additional state and local revenue
4 from the tax on admissions to Olympic events and other state
5 and local taxes on Olympics-related transactions;
6 (5) The development of state-of-the-art sports
7 facilities and venues that Floridians will enjoy long after
8 the games are concluded;
9 (6) Enhanced opportunities for Florida athletes to
10 train and compete in amateur athletics at the international
11 level;
12 (7) An enduring legacy of good will throughout the
13 world; and
14 (8) The opportunity to secure federal infrastructure
15 funding for key community projects.
16 Section 4. Guarantee of state obligations; Olympic
17 Games Guaranty Account.--
18 (1) There is created, within the Economic Development
19 Trust Fund established pursuant to section 288.095, Florida
20 Statutes, the Olympic Games Guaranty Account. The Olympic
21 Games Guaranty Account shall be used for the sole purpose of
22 fulfilling the state's obligations under the games support
23 contracts to indemnify and insure against any net financial
24 deficit resulting from the conduct of the games. The
25 operational entity shall administer this account.
26 (2) With funds from the Olympic Games Guaranty
27 Account, the operational entity shall obtain adequate
28 security, acceptable to the USOC and the IOC, to demonstrate
29 the state's ability to fulfill its obligations under the games
30 support contracts to indemnify and insure up to $125 million
31 of any net financial deficit resulting from the conduct of the
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1 games. Such security may be provided by state funds committed
2 to the Olympic Games Guaranty Account, or by insurance
3 coverage, letters of credit, or other acceptable security
4 instruments purchased or secured by such funds, or by any
5 combination of these options. The liability of the state under
6 all games support contracts entered into pursuant to this act
7 may not exceed $125 million in the aggregate.
8 (3) By July 1, 2001, the local organizing committee
9 shall provide adequate security, acceptable to the operational
10 entity, to demonstrate the local organizing committee's
11 ability to indemnify and insure the first $25 million of any
12 net financial deficit resulting from the conduct of the games
13 for which the state would be liable under the games support
14 contracts. Such security may be provided through the
15 establishment of an internal guaranty fund, insurance
16 coverage, letters of credit, or other acceptable security
17 instruments, or by any combination of these options. Any such
18 security must identify the state as an additional insured. If
19 adequate proof of security is not provided as part of the bid
20 and maintained throughout the course of the games, the Olympic
21 Games Guaranty Account shall be terminated.
22 (4) The operational entity may not permit the security
23 provided by the state pursuant to this act to be accessed to
24 cover any net financial deficit indemnified by the state under
25 the games support contracts until the security provided by the
26 local organizing committee pursuant to this act is fully
27 expended and exhausted.
28 (5) Funding for the Olympic Games Guaranty Account may
29 be derived from any combination of the following:
30 (a) Sums earmarked from the Working Capital Fund, with
31 the funds transferred to the Olympic Games Guaranty Account if
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1 the candidate city is selected by the USOC as the United
2 States candidate city to host the games, or at an earlier time
3 determined by the Legislature;
4 (b) Sums lawfully appropriated; and
5 (c) The increases in proceeds deposited into the
6 General Revenue Fund, from the taxes levied under section
7 212.04, Florida Statutes, on admissions to Olympic events, and
8 other taxes levied under chapter 212, Florida Statutes, which
9 are determined by the Revenue Estimating Conference to be
10 attributable to the games and related events.
11 (6) Additional state funds may not be deposited into
12 the Olympic Games Guaranty Account after the operational
13 entity determines that the account has achieved, or is
14 reasonably expected to accrue, a sufficient balance to provide
15 adequate security, acceptable to the USOC and the IOC, to
16 demonstrate the state's ability to fulfill its obligations
17 under the games support contracts to indemnify and insure up
18 to $125 million of any net financial deficit resulting from
19 the conduct of the games.
20 (7) Moneys in the Olympic Games Guaranty Account is
21 not subject to section 216.301(1)(a), Florida Statutes. Any
22 funds maintained in the Olympic Games Guaranty Account shall
23 be assigned to the State Board of Administration for
24 investment.
25 (8) If the candidate city is selected by the IOC as
26 the host city for the games, the Olympic Games Guaranty
27 Account shall be terminated upon the operational entity's
28 determination that the state's obligations under the games
29 support contracts to indemnify and insure against any net
30 financial deficit resulting from the conduct of the games are
31 concluded. If the candidate city is not selected by the USOC
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1 as the United States candidate city to host the games, or if
2 the candidate city is not selected by the IOC as the host city
3 for the games, the Olympic Games Guaranty Account shall be
4 immediately terminated.
5 (9) Upon the termination of the Olympic Games Guaranty
6 Account, all sums earmarked or transferred to the Olympic
7 Games Guaranty Account from the Working Capital Fund shall
8 immediately revert to the Working Capital Fund and shall be
9 free for other uses, and all sums appropriated to the Olympic
10 Games Guaranty Account from the General Revenue Fund, and any
11 investment earnings retained in the Olympic Games Guaranty
12 Account, shall immediately revert to the General Revenue Fund
13 and be available for appropriation.
14 (10) The local organizing committee shall provide all
15 information in its possession which is required by the state
16 economic entity to enable it to fulfill its duties under this
17 act, including the annual financial statements and records
18 required by the USOC or the IOC, and data obtained by the
19 local organizing committee relating to attendance at the games
20 and to the economic impact of the games. A local organizing
21 committee must provide such annual financial statements and
22 records not later than 120 days after the period covered by
23 the financial statements and records ends.
24 Section 5. State execution of games support contracts;
25 assistance of state agencies.--
26 (1) The operational entity shall review an application
27 from a local organizing committee that the operational entity,
28 on behalf of the state, commits to enter into a games support
29 contract that is required by the USOC or the IOC in connection
30 with the selection of a candidate city in this state to host
31 the games.
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Florida Senate - 2000 CS for SB 1806
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1 (2) An application made under subsection (1) must be
2 accompanied by:
3 (a) A general description and summary of the games for
4 which host city designation is sought by the local organizing
5 committee;
6 (b) A description of the proposal the local organizing
7 committee intends to submit to the USOC, including the
8 proposed venues to be used to conduct the games;
9 (c) Projections of the paid attendance and direct and
10 indirect economic impact of the games on the state and the
11 candidate city, including the basis and methodology for such
12 projections;
13 (d) The anticipated total cost of presenting the games
14 and the committee's plan for financing this cost;
15 (e) The resources committed by the candidate city and
16 any other participating municipalities and other government
17 entities to fulfill the obligations under the games support
18 contracts; and
19 (f) Any other information reasonably requested by the
20 operational entity within 60 days after receipt of the
21 application to assist the operational entity in completing its
22 evaluation as set forth in subsection (3).
23 (3) Within 30 days after receiving all information set
24 forth in subsection (2), the operational entity shall approve
25 or deny an application made under subsection (1). In making
26 this determination, the operational entity must make findings
27 regarding:
28 (a) The reasonableness and reliability of the local
29 organizing committee's revenue and expenditure projections;
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Florida Senate - 2000 CS for SB 1806
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1 (b) The reasonableness and reliability of the
2 projections related to the direct and indirect economic impact
3 of hosting the games;
4 (c) The extent to which the candidate city and other
5 participating jurisdictions have committed sufficient
6 resources to fulfill the obligations under the games support
7 contracts;
8 (d) The extent to which the local organizing committee
9 has sought to maximize the use of existing venues throughout
10 the state, within the limitations imposed by the USOC
11 regarding transportation, accommodations, facility capacity,
12 and customs and practices;
13 (e) The extent to which the local organizing committee
14 has demonstrated that it has provided, is capable of
15 providing, has financial or other commitments to provide for,
16 or its projected financial revenues are found to be reasonably
17 calculated to cover, the costs incurred or anticipated in
18 relation to presentation of the games; and
19 (f) The extent to which the state's obligations and
20 risks are reasonable in light of the anticipated benefits to
21 the state and its citizens.
22 (4) The operational entity may agree in a joinder
23 undertaking entered into with the USOC or the IOC that the
24 operational entity will:
25 (a) Execute a joinder agreement if the USOC selects a
26 candidate city in this state to host the games; and
27 (b) Refrain from taking any action after the execution
28 of the joinder undertaking which would impair its ability to
29 execute the joinder agreement.
30 (5) The operational entity may agree in a joinder
31 agreement that the state will fulfill its obligations under a
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Florida Senate - 2000 CS for SB 1806
314-1907-00
1 games support contract to indemnify and insure the USOC or the
2 IOC against any net financial deficit resulting from the
3 conduct of the games.
4 (6) The operational entity may agree to execute a
5 games support contract only if:
6 (a) The candidate city has executed a games support
7 contract with the USOC which contains substantially similar
8 terms; and
9 (b) The operational entity determines that:
10 1. The findings made pursuant to subsection (3)
11 continue to be valid;
12 2. The state's obligations and risk pursuant to the
13 games support contract are reasonable in light of the
14 anticipated benefits to the state and its citizens; and
15 3. Any financial commitments of the state will be
16 satisfied exclusively by recourse to the Olympic Games Trust
17 Account.
18 (7) The operational entity may require a local
19 organizing committee to list the state as an additional
20 insured on any policy of insurance purchased by the local
21 organizing committee and required by the USOC or the IOC to be
22 in effect in connection with the games.
23 (8) The Department of Transportation, the Department
24 of Law Enforcement, the Department of Community Affairs,
25 Enterprise Florida, Inc., the Office of Tourism, Trade, and
26 Economic Development in the Executive Office of the Governor,
27 the Florida Tourism Commission, the Florida Sports Foundation,
28 or the Florida Tourism Industry Marketing Corporation may:
29 (a) Assist a local organizing committee in developing
30 applications and planning for the games; and
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Florida Senate - 2000 CS for SB 1806
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1 (b) Enter into contracts, agreements, or assurances
2 related to the presentation of the games.
3 (9) Notwithstanding any other provision of this act,
4 the operational entity may not obligate the state to pay or
5 otherwise provide funds to cover the costs of the construction
6 or purchase of a building or other facility by a candidate
7 city.
8 Section 6. This act shall take effect upon becoming
9 law.
10
11 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
12 SB 1806
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14 This committee substitute provides the necessary assurances
and commitments required by the USOC and the IOC in selecting
15 a host city for the XXXth Olympic Games in 2012. It includes
legislative findings about the benefits to Florida of hosting
16 these games and creates the Olympic Games Guaranty Account
within the Economic Development Trust Fund for the purpose of
17 fulfilling the state's obligations under a games support
contract to indemnify and insure against any net financial
18 deficit resulting from the conduct of the games, up to $125
million.
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