BILL NUMBER: AB 286 CHAPTERED 10/13/01 CHAPTER 776 FILED WITH SECRETARY OF STATE OCTOBER 13, 2001 APPROVED BY GOVERNOR OCTOBER 12, 2001 PASSED THE ASSEMBLY SEPTEMBER 4, 2001 PASSED THE SENATE AUGUST 30, 2001 AMENDED IN SENATE JULY 18, 2001 INTRODUCED BY Assembly Member Cedillo FEBRUARY 16, 2001 An act to amend Sections 18800, 18824, and 18882 of the Business and Professions Code, and to amend Section 11012 of the Government Code, relating to athletic events. LEGISLATIVE COUNSEL'S DIGEST AB 286, Cedillo. Athletic events: boxers' pensions. Existing law, the Boxing Act, provides for the regulation by the State Athletic Commission of specified contests, matches, and exhibitions and authorizes the commission to assess and collect various fees in connection with this responsibility, which are deposited into the General Fund. The act also requires the commission to establish a pension plan for professional boxers in this state that is funded by contributions from promoters, managers, and boxers and by certain of the fees collected by the commission, and for this purpose creates the Boxers' Pension Account, specifying that the moneys within this account are deposited into the General Fund and continuously appropriated for purposes of the pension plan. This bill would change the name of the Boxers' Pension Account to the Boxers' Pension Fund and would establish that fund in the State Treasury. The bill would prohibit the deposit or transfer of any money within this fund to the General Fund and would specify that the commission has exclusive control over the moneys in the fund which are continuously appropriated for the purposes and administration of the pension plan. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 18800 of the Business and Professions Code is amended to read: 18800. As of July 1, 1994, all moneys received by the commission under the provisions of this chapter shall be accounted for and reported by detailed statements furnished by the commission to the Controller at least once a month. At the same time, these moneys, other than those that have been received by the commission pursuant to Section 18882, shall be remitted to the Treasurer and shall be deposited in the General Fund. SEC. 2. Section 18824 of the Business and Professions Code, as amended by Section 1 of Chapter 436 of the Statutes of 2000, is amended to read: 18824. (a) Except as provided in Sections 18646 and 18832, every person who conducts a contest or wrestling exhibition shall, within 72 hours after the determination of every contest or wrestling exhibition for which admission is charged and received, furnish to the commission a written report executed under penalty of perjury by one of the officers, showing the number of tickets issued or sold for the contest or wrestling exhibition, the amount of the gross receipts or value thereof, and the gross price charged directly or indirectly and no matter by whom received, for the sale, lease, or other exploitation of broadcasting and television rights of the contest or wrestling exhibition, and without any deductions, except for expenses incurred for one broadcast announcer, telephone line connection, and transmission mobile equipment facility, which may be deducted from the gross taxable base when those expenses are approved by the commission. The person shall also, within the same time, pay to the commission a fee of 5 percent, exclusive of any federal taxes paid thereon, of the amount paid for admission to the contest or wrestling exhibition, except that for any one boxing contest, the fee shall not exceed the amount of one hundred thousand dollars ($100,000), and a fee of up to 5 percent of the gross price as described above for the sale, lease, or other exploitation of broadcasting or television rights thereof, except that in no case shall the fee be less than one thousand dollars ($1,000). The minimum fee for an amateur contest or exhibition shall not be less than five hundred dollars ($500). The amount of the gross receipts upon which the fee provided for in this section is calculated shall not include any assessments levied by the commission under Section 18711. The fee on admission shall apply to the amount actually paid for admission and not to the regular established price. No fee is due in the case of a person admitted free of charge. However, if the total number of persons admitted free of charge to a boxing, kickboxing, or martial arts contest or wrestling exhibition exceeds 25 percent of the total number of spectators, then a fee of one dollar ($1) per complimentary ticket or pass used to gain admission to the contest shall be paid to the commission for each complimentary ticket or pass that exceeds the numerical total of 25 percent of the total number of spectators. (b) If the fee on admissions for any one boxing contest exceeds seventy thousand dollars ($70,000), the amount in excess of seventy thousand dollars ($70,000) shall be paid one-half to the commission and one-half to the Boxers' Pension Fund. (c) As used in this section, "person" includes a promoter, club, individual, corporation, partnership, association or other organization, and "wrestling exhibition" means a performance of wrestling skills and techniques by two or more individuals, to which admission is charged or which is broadcast or televised, in which the participating individuals are not required to use their best efforts in order to win, and for which the winner may have been selected before the performance commences. (d) This section shall remain in effect only until January 1, 2006, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2006, deletes or extends that date. SEC. 3. Section 18882 of the Business and Professions Code is amended to read: 18882. (a) At the time of payment of the fee required by Section 18824, a promoter shall pay to the commission all amounts scheduled for contribution to the pension plan. If the commission, in its discretion, requires pursuant to Section 18881, that contributions to the pension plan be made by the boxer and his or her manager, those contributions shall be made at the time and in the manner prescribed by the commission. (b) All contributions to finance the pension plan shall be deposited in the State Treasury and credited to the Boxers' Pension Fund, which is hereby created. Notwithstanding the provisions of Section 13340 of the Government Code, all moneys in the Boxers' Pension Fund are hereby continuously appropriated to be used exclusively for the purposes and administration of the pension plan. (c) The Boxers' Pension Fund is a retirement fund, and no moneys within it shall be deposited or transferred to the General Fund. (d) The commission has exclusive control of all funds in the Boxers' Pension Fund. No transfer or disbursement in any amount from this fund shall be made except upon the authorization of the commission and for the purpose and administration of the pension plan. (e) Except as otherwise provided in this subdivision, the commission or its designee shall invest the money contained in the Boxers' Pension Fund according to the same standard of care as provided in Section 16040 of the Probate Code. The commission has exclusive control over the investment of all moneys in the Boxers' Pension Fund. Except as otherwise prohibited or restricted by law, the commission may invest the moneys in the fund through the purchase, holding, or sale of any investment, financial instrument, or financial transaction that the commission in its informed opinion determines is prudent. SEC. 4. Section 11012 of the Government Code is amended to read: 11012. Whenever any state agency, including, but not limited to, state agencies acting in a fiduciary capacity, is authorized to invest funds, or to sell or exchange securities, prior approval of the Department of Finance to the investment, sale, or exchange shall be secured. Every state agency shall furnish the Department of Finance with the reports and in the form, relating to the funds or securities, their acquisition, sale, or exchange, as may be requested by the Department of Finance from time to time. This section does not apply to the following state agencies: (a) Any state agency if issuing or dealing in securities authorized to be issued by it. (b) The State Treasurer. (c) The Regents of the University of California. (d) Employment Development Department. (e) Department of Veterans Affairs. (f) Hastings College of Law. (g) Board of Administration of the Public Employees' Retirement System. (h) State Compensation Insurance Fund. (i) California Transportation Commission and Department of Transportation if acting in accordance with bond resolutions adopted under the California Toll Bridge Authority Act (Chapter 1 (commencing with Section 30000) of Division 17 of the Streets and Highways Code) prior to September 15, 1945. (j) Teachers' Retirement Board of the State Teachers' Retirement System. (k) State Athletic Commission if acting pursuant to Section 18882 of the Business and Professions Code with respect to the Boxers' Pension Fund.