Bill Text: CA SB1465 | 2015-2016 | Regular Session | Chaptered
Bill Title: Public contracts: 2024 Olympic Games and Paralympic
Spectrum: Strong Partisan Bill (Democrat 19-1)
Status: (Passed) 2016-09-29 - Chaptered by Secretary of State. Chapter 802, Statutes of 2016. [SB1465 Detail]
Download: California-2015-SB1465-Chaptered.html
BILL NUMBER: SB 1465 CHAPTERED
BILL TEXT
CHAPTER 802
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2016
APPROVED BY GOVERNOR SEPTEMBER 29, 2016
PASSED THE SENATE AUGUST 31, 2016
PASSED THE ASSEMBLY AUGUST 30, 2016
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 León
(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, De León. 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 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, 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 has developed a
self-sufficient bid for financing the games.
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 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 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, 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:
(1) Amounts owed by the OCOG to a site selection organization for
claims by third parties arising out of or relating to the games.
(2) Any financial deficit accruing to the OCOG as a result of the
hosting of the games by the endorsing municipality. Any liability for
an amount in excess of the state security of two hundred fifty
million dollars ($250,000,000) shall be the responsibility of parties
other than the state.
(b) The games support 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 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,
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 the Director of Finance
makes a determination that the state's obligation to provide the
state security under a games support contract has been satisfied and
concluded, at which time the trust fund shall be terminated.
(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.
(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 providing the state security under a games support
contract. The state security may be provided by moneys contained in
the trust fund established in Section 5 of this act, or by insurance
coverage, letters of credit, or other secured instruments purchased
or secured by the moneys, or by any combination 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, subject to the limitations set forth in
Sections 5 and 6 of this act and the games support contract, be the
payer of last resort with regard to the use of the state security.
The state security may not be accessed to cover any 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.
(c) Any security provided by any other person or entity is fully
expended and exhausted.
(d) The limits of available insurance policies have been fully
expended and exhausted.
(e) The OCOG has exhausted all efforts to seek payment from all
third parties owing moneys or otherwise liable to the OCOG.
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.
