California Senate Bill SB1465 Amended / Bill

 BILL NUMBER: SB 1465AMENDED BILL TEXT AMENDED IN ASSEMBLY AUGUST 15, 2016 AMENDED IN ASSEMBLY JUNE 16, 2016 AMENDED IN SENATE MAY 31, 2016 AMENDED IN SENATE MARCH 29, 2016 INTRODUCED BY Senator De Len (Principal coauthor: Assembly Member Rendon) (Coauthors: Senators Allen, Block, Gaines, Hall, Pan, and Pavley) (Coauthors: Assembly Members Bonta, Chau, Chu, Dababneh, Gatto, Gipson, Gomez, Jones-Sawyer, Lopez, Low, Ridley-Thomas, and Santiago) FEBRUARY 19, 2016 An act relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST SB 1465, as amended, De Len. Public contracts: 2024 Olympic Games and Paralympic Games. Existing law provides specified requirements in awarding certain public contracts. This bill would authorize the Governor to  sign agreements with the International Olympic and Paralympic Committees, as part of   execute games support contracts, not to exceed   a specified amount, in connection with  the site selection process for the City of Los Angeles to become the host for the 2024 Olympic Games and Paralympic  Games.   Games, that accept financial liability to provide the state security for  amounts owed by the Organizing Committee for the Olympic Games (OCOG), as specified, and for any financial deficit accruing to the OCOG as a result of the hosting of the games by the endorsing municipality, as defined.  This bill would make legislative findings and declarations that, among other things, the endorsing  municipality, as defined,   municipality  has developed a self-sufficient bid for financing the games.  This bill would authorize the Governor to enter into an agreement for the state to be jointly liable, not to exceed a specified amount, with the Organizing Committee for the Olympic Games (OCOG), as specified, for obligations of the OCOG, and for any financial deficit relating to the games, as provided.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. This act is known, and may be cited, as the 2024 Olympic Games and Paralympic Games Act. SEC. 2. For purposes of this act: (a) "Endorsing municipality" means the City of Los Angeles, which has authorized a bid by the Organizing Committee for the Olympic Games (OCOG) for selection of the municipality as the site of the games. (b) "Games" means the 2024 Olympic and Paralympic Games. (c) "Games support contract" means a joinder agreement or a similar contract executed by the Governor and containing terms permitted or required by this act. (d) "Joinder agreement" means an agreement  entered into by the Governor, on behalf of the state, and the International Olympic Committee and the International Paralympic Committee setting out representations and assurances by the state  in connection with the selection of a site in this state for the location of the games. (e) "OCOG" means a nonprofit corporation, or its successor in interest, that: (1) Has been authorized by the endorsing municipality to pursue an application and bid on the endorsing municipality's behalf to a site selection organization for selection as the site for the games. (2) With the authorization of the endorsing municipality, has executed a bid committee agreement with the United States Olympic Committee regarding a bid and the bid process to host the games. (f) "Site selection organization" means the International Olympic Committee, the International Paralympic Committee, or both, as applicable.  (g) "State security" means the financial obligation, not to exceed two hundred fifty million dollars ($250,000,000), undertaken by the state pursuant to a games support contract executed by the Governor in accordance with this act.  SEC. 3. The Legislature finds and declares all of the following: (a) The purpose of this act is to provide assurances required by a site selection organization that will select a city to host the games. (b) Hosting the games in California is expected to generate billions of dollars for the state's economy. The OCOG, on behalf of the endorsing municipality, has developed a self-sufficient bid and plan for financing the games that is based on realistic and conservative revenue scenarios and has budgeted sufficient funds to reimburse local and regional governments for services provided during the games. (c) The endorsing municipality plans to host a sustainable and environmentally responsible games, has committed to sports and recreational opportunities for young people throughout each area by planning to generate a legacy for youth programs and other sports purposes in this state with excess revenues from the games, and plans to develop and implement a unique and broad-based, cultural program. (d) The endorsing municipality will involve athletes, sports professionals, environmentalists, business and financial experts, nonprofit organizations, youth service leaders, and individuals who represent the entire diversity of the endorsing municipality's state in its bid. (e) The endorsing municipality expects that if it is chosen as the host city, and once the games have concluded, there will be net revenue exceeding expenses that can be devoted to legacy programs for youth and citizens of California. SEC. 4.  (a)    The Governor may  agree in a joinder agreement that the state shall,   execute games support contracts on behalf of the state that,  in accordance with law and subject to  the requirements and limitations set forth in  Sections 5, 6, and 7 of this act,  do the following:   accept financial liability, funded solely by means of the funding mechanism established by Sections 5, 6, and 7 of this act, and in an aggregate amount that under no circumstance shall exceed two hundred fifty million dollars ($250,000,000), to provide the state security for the following:   (a) Provide or cause to be provided any or all of the state government funding, facilities, and other resources specified in the OCOG's bid to host the games.   (b) Accept liability, solely by means of the funding mechanism established by Sections 5, 6, and 7 of this act, for both of the following:  (1)  Obligations of   Amounts owed by  the OCOG to a site selection  organization, including obligations indemnifying the site selection organization against   organization for  claims  of and liabilities to   by  third parties arising out of or relating to the games. (2) Any financial deficit  relating   accruing  to the OCOG  or the games, not to exceed the amount appropriated to the Olympic Games Trust Fund established in Section 5 of this act.   as a result of the hosting of the games by the endorsing municipality.  Any liability for an amount in excess of  that amount   the state security of two hundred fifty million dollars ($250,000,000)  shall be the responsibility of  the OCOG.   parties other than the state.   (c) Acknowledge that the OCOG will be bound by a series of agreements with the site selection organization as set forth in the joinder agreement.   (d) The Governor shall execute a joinder agreement, provided that the parties conform to this act.   (e) A   (b)     The  games support  contract   contracts  may contain additional provisions  that  the Governor requires in order to carry out the purposes of this act. SEC. 5. (a) There is hereby established in the State Treasury a special fund to be known as the "Olympic Games Trust Fund." (b) The state may choose to fund the Olympic Games Trust Fund in any manner it considers appropriate and at the time or times the state determines necessary. It is the intent of the Legislature that the funding mechanism for the fund shall be determined on or about the time of the selection of the endorsing municipality as the host city by the site selection organizations. (c) The funds in the trust fund may be used only for the sole purpose of fulfilling the obligations of the state under a games support contract to provide  adequate security as described in Section 6.   the state security. Notwithstanding any other law, the Controller may use the funds in the trust fund for cashflow loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code.  (d) No additional state funds shall be deposited into the Olympic Games Trust Fund once the Director of Finance determines that the account has achieved, or is reasonably expected to otherwise accrue,  a sufficient balance to provide adequate security, acceptable to the site selection organization, to demonstrate the state's ability to fulfill its obligations under a games support contract, or any other agreement, to indemnify and insure up to two hundred fifty million dollars ($250,000,000) of any net financial deficit and general liability resulting from the conduct of the games.   the balance necessary to provide the state security pursuant to a games support contract.  (e) If the endorsing municipality is selected by the site selection organization as the host city for the games, the Olympic Games Trust Fund shall be maintained until  a determination by the Department of   the Director of  Finance  is made   makes a determination  that the state's  obligations   obligation to provide the state security  under a games support  contract, or any other agreement, to indemnify and insure against any net financial deficit and general liability resulting from the conduct of the games are   contract has been  satisfied and concluded, at which time the trust fund shall be terminated.  If   (f)     If  the endorsing municipality in the State of California is not selected by the site selection organization as the host city for the games, the Olympic Games Trust Fund shall be immediately terminated.  (f)  (g)  Upon the termination of the Olympic Games Trust Fund, all sums earmarked, transferred, or contained in the fund, along with any investment earnings retained in the fund, shall immediately revert to the General Fund. SEC. 6. (a) Any moneys deposited, transferred, or otherwise contained in the Olympic Games Trust Fund established in Section 5 shall be, upon appropriation by the Legislature, used for the sole purpose of  obtaining adequate security, acceptable to the site selection organization, to demonstrate the state's ability to fulfill its obligations under a games support contract to indemnify and insure up to two hundred fifty million dollars ($250,000,000) of any general liability and net financial deficit resulting from the conduct of the games.   providing the state security under a games support contract.  The  state  security may be provided by moneys contained in the trust fund  as provided   established  in Section 5 of this act, or by insurance coverage, letters of credit, or other  acceptable  secured instruments purchased or secured by the moneys, or by any combination  thereof.   thereof as specified in a games support contract.  In no event may the liability of the state under all games support contracts, any other agreements related to the conduct of the games, and all financial obligations of the state otherwise arising under this act, exceed two hundred fifty million dollars ($250,000,000) in the aggregate. (b) Obligations authorized by this act shall be payable solely from the Olympic Games Trust Fund. Neither the full faith and credit nor the taxing power of the state are or shall be pledged for any payment under any obligation authorized by this act. SEC. 7. The state shall,  along with the endorsing municipality and  subject to the limitations set forth in Sections 5 and 6 of this  act,   act and the games support contract,  be the payer of last resort with regard to  any net financial deficit.   the use of the state security.  The  state  security  provided pursuant to this act  may not be accessed to cover any  general liability and net financial deficit indemnified by the state under the   obligation of the state under a  games support contract until after all of the following occur: (a) The security provided by the OCOG is fully expended and exhausted.  (b) The endorsing municipality has expended and exhausted at least two hundred fifty million dollars ($250,000,000) of the endorsing municipality's security.   (b)   (c)  Any security provided by any other person or entity is fully expended and exhausted.  (c)   (d)  The limits of available insurance policies  covering any general liability obligation and the net financial deficit, or any expense or liability used in determining the net financial deficit,  have been fully expended and exhausted.  (d) Payment has been sought by the OCOG     (e)     The OCOG has exhausted all efforts to seek payment  from all third parties owing moneys or otherwise liable to the OCOG.  (e) The endorsing municipality has expended and exhausted two hundred fifty million dollars ($250,000,000) of the endorsing municipality's security deposit.  SEC. 8. The OCOG shall list the state as an additional insured on any policy of insurance purchased by the OCOG to be in effect in connection with the preparation for and conduct of the games. SEC. 9. The OCOG shall not engage in any conduct that reflects unfavorably upon this state, the endorsing municipality, or the games, or that is contrary to law or to the rules and regulations of the United States Olympic Committee and the International Olympic and Paralympic Committees.