S. B. No. 148 As Introduced

SENATOR Blessing

A BILL

To enact section 3773.80 of the Revised Code to

establish the Ohio-Kentucky Olympic Coordination

Authority Compact in law and to enter into the

compact with the other signatories legally joining

in it.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 3773.80 of the Revised Code be	6
enacted to read as follows:	7

Sec. 3773.80. The Ohio-Kentucky olympic coordination	8
authority compact is hereby ratified, enacted into law, and	9
entered into with the other signatories legally joining in it, in	10
the following or substantially following form:	11

"OHIO-KENTUCKY OLYMPIC COORDINATION AUTHORITY

Article I.

Purpose and Findings.

(A) The purpose of this compact shall be to create an entity	15
to oversee the conduct of the 2012 Olympic Games that will be	16
coordinated and managed by the local Organizing Committee for the	17
Olympic Games (OCOG), and to assure that the Ohio-Kentucky	18
region's guarantees and commitments accepted in conjunction with	19
hosting the 2012 Olympic Games are fulfilled.	20

(B) The Signatories find as follows:

(1) For some time, the State of Ohio, including the City of	22
Cincinnati, and the Commonwealth of Kentucky, through the	23
nonprofit organization known as Cincinnati 2012, have been	24
actively engaged in national competition to win the U.S. Candidate	25
City designation and, subsequently, the Host City designation for	26
the 2012 Olympic Games.	27

(2) Hosting the 2012 Olympic Games will provide major,	28
lasting, and unique benefits for all of the citizens of the	29
Ohio-Kentucky region, including all of the following:	30

(a) Measurable, positive economic impact on our regional	31
economy;	32

(b) A catalyst for regional action and cooperation;

(c) An opportunity to showcase this part of the United	34
States to the nation and to the world;	35

(d) A renewed sense of pride and tangible legacies, such as	36
new and improved sports venues, strong national and international	37
awareness, and public incentive to advance or complete major	38
projects.	39

(3) Economic studies conducted by the Center for Economic	40
Education of the University of Cincinnati show that preparing for	41
and hosting the 2012 Olympic Games will have a positive economic	42
impact on the Ohio-Kentucky region, including all of the	43
following:	44

(a) Direct and indirect spending in excess of six billion	45
two hundred million dollars;	46

(b) The creation of approximately seventy-nine thousand	47
jobs;	48

(c) Increased new net tax revenues, without raising or	49
creating any new taxes, of in excess of two hundred million	50
dollars (net of projected visitor and new resident spending of one	51
hundred eighty million dollars);	52

(d) A lasting improvement in the region's competitive	53
position within the convention and travel and tourism industries,	54
as well as enhanced ability to attract new businesses.	55

(4) The citizens of the Ohio-Kentucky region have responded	56
positively to Cincinnati 2012's efforts and solidly embraced the	57
cause to host the 2012 Olympic Games, expressed in part by the	58
endorsement of scores of local business, civic, governmental,	59
academic, and amateur sports organizations, and by public opinion	60
survey results that show seventy-four per cent of the region's	61
residents support the effort to bring the 2012 Olympic Games to	62
this area.	63

(5) Through the submission of the Ohio-Kentucky region's	64
official bid proposal to the United States Olympic Committee	65
(USOC) on December 15, 2000, Cincinnati 2012 reached a milestone	66
in its efforts to be designated as the U.S. Candidate City by	67
providing a logistical, operational, and financial blueprint for	68
hosting the 2012 Olympic Games.	69

(6) The official bid proposal highlights great assets of our	70
region and is developed around key principles, including (a) an	71
emphasis on the utilization of existing physical assets, (b)	72
respect for the environment, and (c) showcasing this part of the	73
United States as an underutilized asset of the world economy.	74

(7) In addition to the Ohio-Kentucky region's bid proposal,	75
the USOC and the International Olympic Committee (IOC) require	76
certain guarantees and commitments in conjunction with hosting the	77
2012 Olympic Games should our region win the U.S. Candidate City	78
designation.	79

(8) Cincinnati 2012 has proposed a credible and defensible	80
privately generated budget projecting revenues of two billion	81
seven hundred fifteen million dollars, expenditures of two	82
billion five hundred sixty-nine million dollars, including a	83
three hundred eleven million dollar contingency, and a surplus of	84
one hundred forty-five million dollars.	85

(9) The State of Ohio and the Commonwealth of Kentucky find	86
substantial public purpose in supporting the 2012 Olympic Games	87
and to this end may provide, in an equitable distribution	88
commensurate with projected benefits, two hundred million dollars	89
in net new tax revenues, as financial support in the unlikely	90
event of an operating deficit with full understanding of	91
Cincinnati 2012's intent to purchase at least fifty million	92
dollars in net operating deficit insurance coverage before those	93
net new tax revenues would be utilized.	94

(10) It is incumbent upon Cincinnati 2012 and government	95
leaders to move forward together now to craft the solution that	96
best "lives regionalism" and maximizes the chances of this part of	97
the United States winning the 2012 Olympic Games and reaping the	98
considerable and measurable benefits that come with this honor.	99

(11) Given that all three jurisdictions, Ohio, Kentucky, and	100
Cincinnati, will host a significant number of events and reap	101
substantial benefits, the most effective solution for all three	102
jurisdictions is to enter into a compact creating a single entity	103
that gives the USOC, and subsequently the IOC, a single focal	104
point and a united front to enhance accountability and ensure a	105
successful 2012 Olympic Games.	106

Article II.

107

Definitions.

108

As used in this compact:

109

(A) "Bid proposal" means the bid formally submitted by	110
Cincinnati 2012 to the USOC on December 15, 2000.	111

(B) "Cincinnati 2012" means Cincinnati 2012, a nonprofit	112
corporation organized under the laws of the State of Ohio, and its	113
successors.	114

(C) "Host City" means the entity that has been selected by	115
the International Olympic Committee to host the 2012 Olympic	116
Games.	117

(D) "International Olympic Committee" and "IOC" mean the	118
International Olympic Committee, a body corporate under	119
international law created by the Congress of Paris of 23 June,	120
1894, and having perpetual succession.	121

(E) "Ohio-Kentucky Olympic Coordination Authority" and	122
"OKOCA" mean the entity created by the State of Ohio, the	123
Commonwealth of Kentucky, and the City of Cincinnati to provide	124
oversight over the Organizing Committee for the Olympic Games.	125

(F) "Olympic Games" means any Olympic Games sponsored and	126
governed by the International Olympic Committee and any other	127
educational, cultural, athletic, or sporting events related or	128
preliminary to those Olympic Games.	129

(G) "Organizing Committee for the Olympic Games," and "OCOG"	130
mean the successor organization to and formed by Cincinnati 2012	131
to organize and conduct the 2012 Olympic Games, if Cincinnati 2012	132
is selected by the IOC as the Host City in 2005.	133

(H) "Signatories" means the State of Ohio, the Commonwealth	134
of Kentucky, and the City of Cincinnati.	135

(I) "U.S. Candidate City" means the entity that has received	136
the United States Olympic Committee's endorsement to submit to the	137
IOC the sole bid from the United States for the hosting of the	138
2012 Olympic Games.	139

(J) "United States Olympic Committee" and "USOC" mean the	140
United States Olympic Committee, incorporated by Act of Congress	141
on September 21, 1950, and having perpetual succession.	142

Article III.

143

Creation of OKOCA.

144

(A) The Signatories hereby provide the mechanism for the	145
creation and termination of the Ohio-Kentucky Olympic Coordination	146
Authority (OKOCA), which shall be an instrumentality of the State	147
of Ohio, the Commonwealth of Kentucky, and the City of Cincinnati,	148
and shall have the powers and duties set forth in this compact,	149
and those additional powers and duties conferred upon it by	150
subsequent actions of the Signatories.	151

(B) The OKOCA shall come into existence by the force of this	152
compact when and if, and only if, the IOC awards the 2012 Olympic	153
Games in 2005 to Cincinnati 2012.	154

(C) The OKOCA, if ever brought into existence, shall cease	155
to exist by the force of this compact on January 1, 2014, unless	156
extended by substantially similar future legislation passed by	157
each of the Signatories.	158

(D) Until the OKOCA comes into existence, the combined	159
signatures of the Governors of Ohio and Kentucky, and the Mayor of	160
the City of Cincinnati, on any and all documents necessary and	161
appropriate to the pursuit of the 2012 Olympic Games shall be	162
deemed binding on future actions of the OKOCA.	163

For the purposes of this section, (1) the above-referenced	164
signatures may be on the same document, on separate but materially	165
and substantially similar documents, or any combination thereof,	166
and (2) no individual signature shall be deemed effective until	167
the time as all three above-referenced signatures are obtained.	168

Article IV.

169

OKOCA; Composition; Terms; Accounting.

170

(A) The OKOCA shall be composed of the following nine voting	171
members: the State of Ohio shall be entitled to three voting	172
members, to be appointed by the Governor of Ohio; the Commonwealth	173
of Kentucky shall be entitled to three voting members, to be	174
appointed by the Governor of Kentucky; and the City of Cincinnati	175
shall be entitled to three voting members, to be appointed by the	176
Mayor of the City of Cincinnati. The OCOG shall be entitled to one	177
ex-officio member on the OKOCA, to be appointed in a manner	178
consistent with its usual procedure.	179

(B) The OKOCA shall cause to be formed an OKOCA Advisory	180
Committee not to exceed twenty-five members, which shall be	181
comprised of representatives, to be known as advisory members,	182
from each of the local jurisdictions substantially impacted by the	183
hosting of the 2012 Olympic Games in the Ohio-Kentucky region, to	184
be selected in a manner to be determined by the OKOCA.	185

(C) Reasonable efforts should be made to ensure that	186
appointments of voting members and advisory members (1) are of	187
residents of the regional community with relevant and useful	188
experience, and with sufficient time to devote to the duties of	189
the OKOCA, to help facilitate the successful hosting of the 2012	190
Olympic Games, (2) reflect the geographical diversity inherent in	191
the regional nature of Cincinnati 2012's bid proposal, and (3)	192
reflect the cultural, ethnic, and racial diversity inherent in the	193
Ohio-Kentucky region.	194

(D) Voting members shall not be compensated for their	195
service on the OKOCA, but shall be entitled to be reimbursed by	196
the OKOCA for normal and customary expenses incurred in the	197
performance of their duties.	198

(E) The terms of the voting members of the OKOCA shall be	199
two years. Each voting member shall hold office until the	200
member's successor is appointed and duly qualified. Any voting	201
member of the OKOCA may succeed himself or herself. All vacancies	202
in the membership of the voting members of the OKOCA shall be	203
filled in the manner of the original appointment for the remainder	204
of the unexpired term.	205

(F) The OKOCA shall elect from its membership a chair, a	206
vice-chair, a secretary, and a treasurer. Those officers shall	207
serve the terms prescribed by resolution of the OKOCA or until	208
their successors are elected and qualified. No voting member of	209
the OKOCA shall hold more than one office on the OKOCA.	210

(G) The OKOCA shall meet at least twice annually in the five	211
years preceding and one year following the 2012 Olympic Games.	212
Regular meetings of the OKOCA shall be held on the dates and at	213
the time and place fixed by resolution of the OKOCA. Special	214
meetings of the OKOCA may be called by resolution of the OKOCA, by	215
the chair or vice-chair, or upon the written request of at least	216
three voting members of the OKOCA. Written notice of all meetings	217
shall be delivered to each voting member, not less than three days	218
prior to the date of the meeting in the case of regular meetings	219
and not less than twenty-four hours in the case of special	220
meetings.	221

(H) A majority of the voting members of the OKOCA shall	222
constitute a quorum. A majority of the quorum is empowered to	223
exercise all the rights and perform all the duties of the OKOCA,	224
and no vacancy on the OKOCA shall impair the right of that	225
majority to act. If at any meeting there is less than a quorum	226
present, a majority of those present may adjourn the meeting to a	227
fixed time and place, and notice of the time and place shall be	228
given in accordance with section (G) of this Article, provided	229
that if the notice period required by that section cannot	230
reasonably be complied with, notice, if any, of the adjourned	231
meeting shall be given as is reasonably practical.	232

(I) The OKOCA shall establish rules and regulations for its	233
own governance, not inconsistent with this compact.	234

(J) The OKOCA shall provide for a system of financial	235
accounting and controls, audits, and reports. All accounting	236
systems and records, auditing procedures and standards, and	237
financial reporting shall conform to generally accepted principles	238
of governmental accounting. All financial records, reports, and	239
documents of the OKOCA shall be public records open to public	240
inspection under reasonable regulations prescribed by the OKOCA.	241

The OKOCA shall designate a fiscal year, establish a system	242
of accounting and financial control, designate the necessary funds	243
for complete accountability, and specify the basis of accounting	244
for each fund. The OKOCA shall cause to be prepared a financial	245
report on all funds at least quarterly and a comprehensive report	246
on the fiscal operations and conditions of the OKOCA annually.	247

Article V.

248

Funding of OKOCA.

249

(A) The OCOG shall provide reasonable funds for the operation	250
of the OKOCA and the conduct of its business in accordance with	251
the provisions of this compact.	252

(B) The OKOCA shall submit to the OCOG a planned budget for	253
the OKOCA's next fiscal year, adopted consistent with Article IV	254
of this compact, not less than ninety days before the beginning of	255
the next fiscal year.	256

Article VI.

257

Creation of the Olympic Games Account.

258

(A) There is hereby created, outside the treasury, the	259
Olympic Games Account (Account). The Account shall be used for the	260
sole purpose of the State of Ohio's and the Commonwealth of	261
Kentucky's optional provision of financial support in the unlikely	262
event of any net operating deficit, not covered by the OCOG and	263
the OKOCA, resulting from the operation of the 2012 Olympic Games.	264

(B) Into the Account may be deposited by the State of Ohio	265
and the Commonwealth of Kentucky net new tax revenues generated	266
from the preparation and holding of the 2012 Olympic Games. As	267
stated in section (B)(3)(c) of Article I of this compact, it is	268
estimated that the State of Ohio and the Commonwealth of Kentucky	269
will benefit in excess of two hundred million dollars in net new	270
tax revenues, without raising or creating new taxes.	271

Article VII.

272

OKOCA Oversight of OCOG; Additional Powers.

273

(A) The OKOCA, in recognition of its oversight responsibility	274
over the OCOG, shall have access to (1) the quarterly financial	275
statements of the OCOG, (2) the annual business plans of the OCOG,	276
and (3) all other OCOG documents necessary to achieve its	277
oversight responsibility.	278

(B) The OKOCA shall have the power to enforce OCOG budgetary	279
and planning changes when review by the OKOCA of the OCOG	280
financial statements, annual business plans, or other documents	281
contemplated in this Article suggests (1) economic shortfalls that	282
possibly would trigger the OKOCA's liability outlined in this	283
Article or (2) the OCOG will fail to host the 2012 Olympic Games	284
in a manner that would satisfy the requirements of the USOC or the	285
IOC; and the budgetary and planning changes are supported by a	286
majority of the voting members of the OKOCA, notwithstanding the	287
quorum requirements of Article IV of this compact.	288

(C) The OKOCA, in recognition of its duties as overseer of	289
the OCOG, shall do all of the following:	290

(1) Be bound by the terms of, cause the OCOG to perform, and	291
guaranty performance of the OCOG's obligations under all documents	292
necessary and appropriate to the pursuit of the 2012 Olympic	293
Games;	294

(2) Certify the OCOG's performance of those obligations as	295
requested by the IOC or the USOC from time to time;	296

(3) Accept liability for the OCOG, if any, as far as required	297
by all documents necessary and appropriate to the pursuit and	298
hosting of the 2012 Olympic Games;	299

(4) Accept, together with the OCOG, liability for any net	300
operating deficit of the OCOG or the 2012 Olympic Games by	301
providing a financial guaranty in the sum of four hundred million	302
dollars as follows:	303

(a) The OCOG and the OKOCA shall be liable for the first	304
fifty million dollars, to be covered by a commercial insurance	305
policy as approved by and acceptable to the OKOCA.	306

(b) If a net operating deficit in excess of fifty million	307
dollars occurs as a result of the operation of the 2012 Olympic	308
Games, up to two hundred million dollars from the Account may be	309
provided.	310

(c) The OCOG and the OKOCA shall be liable for any amount in	311
excess of fifty million dollars, but not to exceed an additional	312
three hundred fifty million dollars, if section (C)(4)(b) of this	313
Article does not apply, or for any amount in excess of two hundred	314
fifty million dollars, but not to exceed an additional one hundred	315
fifty million dollars, if section (C)(4)(b) of this Article	316
applies, to be covered by a commercial insurance policy as	317
approved by and acceptable to the OKOCA.	318

(D) The OKOCA, in its financial oversight and safeguard role,	319
shall ensure that no surplus operating funds are committed until	320
all budgetary and operational financial obligations of the OCOG	321
and the OKOCA for hosting the 2012 Olympic Games are first met;	322
and that no liability for any net operating deficit resulting from	323
the 2012 Olympic Games shall accrue to the OKOCA or the	324
Signatories, if they provide financial support, until all	325
budgetary and operational financial surpluses of the OCOG, if any,	326
are applied to all outstanding budgetary and operational financial	327
obligations of the OCOG and the OKOCA, if any, accrued exclusively	328
in connection with hosting the 2012 Olympic Games.	329

(E) The OKOCA, in order to facilitate its oversight	330
responsibility over the OCOG, shall have all of the following	331
additional powers:	332

(1) To sue and be sued in contract and in tort;

333

(2) To complain and defend in all courts;

334

(3) To implead and be impleaded;

335

(4) To enter into contracts;

336

(5) To hire appropriate staff;

337

(6) To exercise any additional powers granted to it by	338
subsequent legislation.	339

Article VIII.

340

Potential Subsidization.

341

(A) Any liability incurred by the OKOCA that is not covered	342
by insurance under Article VII of this compact may be financially	343
subsidized by the State of Ohio and the Commonwealth of Kentucky,	344
if each elects to do so, in proportion to the relative economic	345
benefits currently expected to accrue to each from hosting the	346
2012 Olympic Games, as follows:	347

(1) The State of Ohio, eighty-five per cent;

348

(2) The Commonwealth of Kentucky, fifteen per cent.

349

(B) If any liability incurred by the OKOCA is financially	350
subsidized under this Article, the State of Ohio and the	351
Commonwealth of Kentucky shall provide their respective shares in	352
manners consistent with the requirements of their respective	353
constitutions and statutes.	354

Article IX.

355

Commitments of Signatories.

356

As appropriate to its individual jurisdiction and specific	357
role in hosting the 2012 Olympic Games, each Signatory agrees to	358
do all of the following:	359

(A) Ensure that infrastructure improvements as discussed in	360
the Cincinnati 2012 bid proposal take place;	361

(B) Provide access to existing state and city-controlled	362
facilities and other important resources as specified in	363
Cincinnati 2012's bid proposal, in accordance with applicable law	364
and contractual obligations;	365

(C) Provide adequate security, fire protection, and other	366
government-related services at a reasonable cost to ensure the	367
safe and orderly operation of the 2012 Olympic Games.	368

Article X.

369

Compliance With Local Law.

370

The OKOCA shall make every effort to comply with the laws of	371
each of the Signatories regarding disclosure, appointment, and	372
open meetings.	373

Article XI.

374

Effective Dates.

375

None of the duties or responsibilities encompassed in this	376
compact shall have effect until substantially similar legislation	377
is passed by each of the Signatories, at which time this compact	378
shall be immediately effective."	379