House Bill 1909c1

CODING: Words stricken are deletions; words underlined are additions.







    Florida House of Representatives - 2000             CS/HB 1909

        By the Committee on Business Development & International
    Trade and Representatives Johnson, Murman, Bradley and Ritchie





  1                      A bill to be entitled

  2         An act relating to the Olympic Games; providing

  3         definitions; creating an Olympic Games Guaranty

  4         Account within the Economic Development Trust

  5         Fund; providing for purpose, administration,

  6         funding, and use of the account; providing

  7         requirements of and restrictions on the

  8         account; providing a limit on liability of the

  9         state; providing for termination of the account

10         under specified conditions; providing for

11         reversion of funds; requiring the local

12         organizing committee to provide certain

13         information; providing for the execution of

14         games support contracts; providing requirements

15         with respect to application for such contracts;

16         providing criteria for contract approval;

17         providing specified authority of the

18         direct-support organization authorized under s.

19         288.1229, F.S.; providing a restriction on the

20         direct-support organization; providing

21         additional authority of specified agencies and

22         entities; providing an effective date.

23

24  Be It Enacted by the Legislature of the State of Florida:

25

26         Section 1.  Purpose.--The purpose of this act is to

27  provide the necessary assurances and commitments required by

28  the United States Olympic Committee and the International

29  Olympic Committee in selecting a host city for the XXXth

30  Olympic Games in 2012.

31

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1         Section 2.  Legislative findings.--The selection of a

  2  candidate city in this state to host the 2012 Olympic Games

  3  will confer significant benefits to the state as a whole and

  4  to the communities where the games are held, including:

  5         (1)  Invaluable public visibility throughout the world.

  6         (2)  Increased tourism and economic growth.

  7         (3)  Significant job creation.

  8         (4)  The development of state-of-the-art sports

  9  facilities and venues that Floridians will enjoy long after

10  the games are concluded.

11         (5)  Enhanced opportunities for Florida athletes to

12  train and compete in amateur athletics at the international

13  level.

14         (6)  An enduring legacy of good will throughout the

15  world.

16         (7)  The opportunity to secure federal infrastructure

17  funding for key community projects.

18         Section 3.  Definitions.--As used in this act:

19         (1)  "Candidate city" means a municipality in this

20  state that has qualified for consideration by the United

21  States Olympic Committee as the United States candidate city

22  to host the XXXth Olympic Games in 2012.

23         (2)  "Games" means the XXXth Olympic Games to be held

24  in 2012.

25         (3)  "Games support contract" means a joinder

26  undertaking, a joinder agreement, or similar contract executed

27  by the state, a candidate city, or a local organizing

28  committee in connection with the selection of the candidate

29  city to host the games.

30

31

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1         (4)  "International Olympic Committee" means the

  2  international governing body responsible for organizing and

  3  conducting the Olympic Games.

  4         (5)  "Joinder agreement" means an agreement entered

  5  into by:

  6         (a)  The state and the United States Olympic Committee

  7  or the International Olympic Committee, setting out

  8  representations and assurances by the state in connection with

  9  the selection of the candidate city to host the games; or

10         (b)  A candidate city and the United States Olympic

11  Committee or the International Olympic Committee, setting out

12  representations and assurances by the candidate city in

13  connection with the selection of the city to host the games.

14         (6)  "Joinder undertaking" means an agreement entered

15  into by:

16         (a)  The state and the United States Olympic Committee

17  or the International Olympic Committee that the state will

18  execute a joinder agreement if the candidate city is selected

19  to host the games; or

20         (b)  A candidate city and the United States Olympic

21  Committee or the International Olympic Committee that the city

22  will execute a joinder agreement if the city is selected to

23  host the games.

24         (7)  "Local organizing committee" means a nonprofit

25  corporation or its successor in interest that:

26         (a)  Has been authorized by the candidate city to

27  pursue an application to the United States Olympic Committee

28  and bid on the city's behalf to host the games.

29         (b)  Has executed an agreement with the United States

30  Olympic Committee regarding the candidate city's bid to host

31  the games.

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1         (8)  "United States Olympic Committee" means the

  2  official national Olympic Committee of the United States of

  3  America, which has been authorized by law to govern all

  4  matters relating to national participation in the Olympic

  5  Games.

  6         Section 4.  Guarantee of state obligations; Olympic

  7  Games Guaranty Account.--

  8         (1)  There is created, within the Economic Development

  9  Trust Fund established pursuant to s. 288.095, Florida

10  Statutes, the Olympic Games Guaranty Account.  The Olympic

11  Games Guaranty Account shall be used for the sole purpose of

12  fulfilling the state's obligations under a games support

13  contract to indemnify and insure against any net financial

14  deficit resulting from the conduct of the games.  The

15  direct-support organization authorized under s. 288.1229,

16  Florida Statutes, shall be responsible for administration of

17  the Olympic Games Guaranty Account.

18         (2)  With funds from the Olympic Games Guaranty

19  Account, the direct-support organization authorized under s.

20  288.1229, Florida Statutes, shall obtain adequate security,

21  acceptable to the United States Olympic Committee and the

22  International Olympic Committee, to demonstrate the state's

23  ability to fulfill its obligations under the games support

24  contracts to indemnify and insure up to $175 million of any

25  net financial deficit resulting from the conduct of the games.

26  Such security may be provided by state funds committed to the

27  Olympic Games Guaranty Account, or by insurance coverage,

28  letters of credit, or other acceptable security instruments

29  purchased or secured by such funds, or by any combination of

30  these options.  In no event may the liability of the state

31

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1  under all games support contracts entered into pursuant to

  2  this act exceed $175 million in the aggregate.

  3         (3)  No later than July 1, 2001, the local organizing

  4  committee shall provide adequate security, acceptable to the

  5  direct-support organization authorized under s. 288.1229,

  6  Florida Statutes, to demonstrate the local organizing

  7  committee's ability to indemnify and insure the first $25

  8  million of any net financial deficit resulting from the

  9  conduct of the games for which the state would be liable under

10  the games support contracts.  Such security may be provided

11  through the establishment of an internal guaranty fund,

12  insurance coverage, letters of credit, or other acceptable

13  security instruments, or by any combination of these options.

14  Any such security will identify the state as an additional

15  insured.  If adequate proof of security is not provided as

16  part of the bid and maintained throughout the course of the

17  games, then the Olympic Games Guaranty Account shall be

18  terminated.

19         (4)  In no event may the direct-support organization

20  authorized under s. 288.1229, Florida Statutes, permit the

21  security provided by the state pursuant to this act to be

22  accessed to cover any net financial deficit indemnified by the

23  state under the games support contracts until the security

24  provided by the local organizing committee pursuant to this

25  act is fully expended and exhausted.

26         (5)  Funding for the Olympic Games Guaranty Account may

27  be derived from any combination of the following:

28         (a)  Sums earmarked from the Working Capital Fund, with

29  said funds transferred to the Olympic Games Guaranty Account

30  in the event that the candidate city is selected by the United

31  States Olympic Committee as the United States candidate city

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1  to host the games, or at such earlier time as shall be

  2  determined by the State of Florida.

  3         (b)  Sums lawfully appropriated.

  4         (c)  The increases in proceeds deposited into the

  5  General Revenue Fund from the taxes levied under chapter 212,

  6  Florida Statutes, that are determined by the Revenue

  7  Estimating Conference to be attributable to the games and

  8  related events.

  9         (6)  No additional state funds shall be deposited into

10  the Olympic Games Guaranty Account once the direct-support

11  organization authorized under s. 288.1229, Florida Statutes,

12  determines that the account has achieved, or is reasonably

13  expected to accrue, a sufficient balance to provide adequate

14  security, acceptable to the United States Olympic Committee

15  and the International Olympic Committee, to demonstrate the

16  state's ability to fulfill its obligations under the games

17  support contracts to indemnify and insure up to $175 million

18  of any net financial deficit resulting from the conduct of the

19  games.

20         (7)  Moneys in the Olympic Games Guaranty Account shall

21  not be subject to the provisions of s. 216.301(1)(a), Florida

22  Statutes. Any funds maintained in the Olympic Games Guaranty

23  Account shall be assigned to the State Board of Administration

24  for investment.

25         (8)  If the candidate city is selected by the

26  International Olympic Committee as the host city for the

27  games, the Olympic Games Guaranty Account shall be terminated

28  upon the determination by the direct-support organization

29  authorized under s. 288.1229, Florida Statutes, that the

30  state's obligations under the games support contracts to

31  indemnify and insure against any net financial deficit

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1  resulting from the conduct of the games are concluded.  If the

  2  candidate city is not selected by the United States Olympic

  3  Committee as the United States candidate city to host the

  4  games, or if the candidate city is not selected by the

  5  International Olympic Committee as the host city for the

  6  games, then the Olympic Games Guaranty Account shall be

  7  immediately terminated.

  8         (9)  Upon the termination of the Olympic Games Guaranty

  9  Account, all sums earmarked or transferred to the Olympic

10  Games Guaranty Account from the Working Capital Fund shall

11  immediately revert to the Working Capital Fund and shall be

12  free for other uses, and all sums appropriated to the Olympic

13  Games Guaranty Account from the General Revenue Fund, and any

14  investment earnings retained in the Olympic Games Guaranty

15  Account, shall immediately revert to the General Revenue Fund

16  and be available for appropriation.

17         (10)  The local organizing committee shall provide all

18  information in its possession that is required by the Revenue

19  Estimating Conference to enable it to fulfill its duties under

20  this act, including the annual financial statements and

21  records required by the United States Olympic Committee or the

22  International Olympic Committee, and data obtained by the

23  local organizing committee relating to attendance at the games

24  and to the economic impact of the games.  A local organizing

25  committee must provide such annual financial statements and

26  records not later than 120 days after the period covered by

27  the financial statements and records ends.

28         Section 5.  State execution of games support contracts;

29  assistance of state agencies.--

30         (1)  The direct-support organization authorized under

31  s. 288.1229, Florida Statutes, shall review an application

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1  from a local organizing committee that the direct-support

  2  organization authorized under s. 288.1229, Florida Statutes,

  3  on behalf of the state, commit to enter into a games support

  4  contract that is required by the United States Olympic

  5  Committee or the International Olympic Committee in connection

  6  with the selection of a candidate city in this state to host

  7  the games.

  8         (2)  An application made under subsection (1) must be

  9  accompanied by:

10         (a)  A description and summary of the games for which

11  host city designation is sought by the local organizing

12  committee.

13         (b)  A description of the proposal the local organizing

14  committee intends to submit to the United States Olympic

15  Committee, including the proposed venues to be used to conduct

16  the games.

17         (c)  Projections of the paid attendance and direct and

18  indirect economic impact of the games on the state and the

19  candidate city, including the basis and methodology for such

20  projections.

21         (d)  The anticipated total cost of presenting the games

22  and the committee's plan for financing this cost.

23         (e)  The resources committed by the candidate city and

24  any other participating municipalities and other government

25  entities to fulfill the obligations under the games support

26  contracts.

27         (f)  Any other information reasonably requested by the

28  direct-support organization authorized under s. 288.1229,

29  Florida Statutes, within 60 days after receipt of the

30  application, to assist the direct-support organization in

31  completing its evaluation as required under subsection (3).

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1         (3)  Within 30 days after receiving all information

  2  required under subsection (2), the direct-support organization

  3  authorized under s. 288.1229, Florida Statutes, shall approve

  4  or deny any application made under subsection (1).  In making

  5  this determination, the direct-support organization must make

  6  findings regarding the following:

  7         (a)  The reasonableness and reliability of the local

  8  organizing committee's revenue and expenditure projections.

  9         (b)  The reasonableness and reliability of the

10  projection relating to the direct and indirect economic impact

11  of hosting the games.

12         (c)  The extent to which the candidate city and other

13  participating jurisdictions have committed sufficient

14  resources to fulfill the obligations under the games support

15  contracts.

16         (d)  The extent to which the local organizing committee

17  has sought to maximize the use of existing venues throughout

18  the state, within the limitation imposed by the United States

19  Olympic Committee regarding transportation, accommodations,

20  facility capacity, and customs and practices.

21         (e)  The extent to which the local organizing committee

22  has demonstrated that it has provided, is capable of

23  providing, has financial or other commitments to provide for,

24  or provides findings of projected financial revenues

25  reasonably calculated to cover the costs incurred or

26  anticipated in relation to presentation of the games.

27         (f)  The extent to which the state's obligations and

28  risks are reasonable in light of the anticipated benefits to

29  the state and its citizens.

30         (4)  The direct-support organization authorized under

31  s. 288.1229, Florida Statutes, may agree in a joinder

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1  undertaking entered into with the United States Olympic

  2  Committee or the International Olympic Committee that the

  3  direct-support organization authorized under s. 288.1229,

  4  Florida Statutes, will:

  5         (a)  Execute a joinder agreement if the United States

  6  Olympic Committee selects a candidate city in the state to

  7  host the games.

  8         (b)  Refrain from taking any action after the execution

  9  of the joinder undertaking that would impair its ability to

10  execute the joinder agreement.

11         (5)  The direct-support organization authorized under

12  s. 288.1229, Florida Statutes, may agree in a joinder

13  agreement that the state will fulfill its obligations under a

14  games support contract to indemnify and insure the United

15  States Olympic Committee or the International Olympic

16  Committee against any net financial deficit resulting from the

17  conduct of the games.

18         (6)  The direct-support organization authorized under

19  s. 288.1229, Florida Statutes, may agree to execute a games

20  support contract only if the candidate city has executed a

21  games support contract with the United States Olympic

22  Committee that contains substantially similar terms, and:

23         (a)  The findings made pursuant to section 3 continue

24  to be valid.

25         (b)  The state's obligations and risk pursuant to the

26  games support contract are reasonable in light of the

27  anticipated benefits to the state and its citizens.

28         (c)  Any financial commitments of the state will be

29  satisfied exclusively by recourse to the Olympic Games

30  Guaranty Account.

31

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1909

    170-866-00






  1         (7)  The direct-support organization authorized under

  2  s. 288.1229, Florida Statutes, may require a local organizing

  3  committee to list the state as an additional insured on any

  4  policy of insurance purchased by the local organizing

  5  committee and required by the United States Olympic Committee

  6  or the International Olympic Committee to be in effect in

  7  connection with the games.

  8         (8)  The Florida Department of Transportation, the

  9  Florida Department of Law Enforcement, the Florida Department

10  of Community Affairs, Enterprise Florida, Inc., the Office of

11  Tourism, Trade, and Economic Development, the Florida Tourism

12  Commission, the direct-support organization authorized under

13  s. 288.1229, Florida Statutes, and the Florida Tourism

14  Industry Marketing Corporation may:

15         (a)  Assist a local organizing committee in developing

16  applications and planning for the games.

17         (b)  Enter into contracts, agreements, or assurances

18  relating to the presentation of the games.

19         (9)  Notwithstanding any other provision of this act,

20  the direct-support organization authorized under s. 288.1229,

21  Florida Statutes, may not obligate the state to pay or

22  otherwise provide funds to cover the costs of the construction

23  or purchase of a building or other facility by a city.

24         Section 6.  This act shall take effect upon becoming a

25  law.

26

27

28

29

30

31

                                  11