BILL NUMBER: AB 1458 CHAPTERED 09/25/03 CHAPTER 515 FILED WITH SECRETARY OF STATE SEPTEMBER 25, 2003 APPROVED BY GOVERNOR SEPTEMBER 24, 2003 PASSED THE ASSEMBLY SEPTEMBER 10, 2003 PASSED THE SENATE SEPTEMBER 4, 2003 AMENDED IN SENATE JULY 17, 2003 AMENDED IN ASSEMBLY MAY 5, 2003 AMENDED IN ASSEMBLY APRIL 21, 2003 INTRODUCED BY Assembly Member Reyes (Coauthors: Assembly Members Calderon, Cohn, Frommer, Jerome Horton, Nunez, Ridley-Thomas, and Strickland) (Coauthors: Senators Cedillo and Murray) FEBRUARY 21, 2003 An act to amend Section 18824 of, and to add Section 18640.5 to the Business and Professions Code, relating to boxing. LEGISLATIVE COUNSEL'S DIGEST AB 1458, Reyes. Boxing contests. Existing law, the Boxing Act, provides for the regulation of boxing contests by the State Athletic Commission. Existing law requires every person who conducts a contest or wrestling exhibition to furnish to the commission a report showing the number of tickets sold for the contest or wrestling exhibition, subject to certain conditions. This bill would require the commission, at its regularly scheduled meetings, to invite testimony from boxing stakeholders to identify actions that may lead to greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. The bill would require the commission, after receiving the testimony, to make recommendations annually to the Governor and the Legislature that it determines may provide greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. The bill would require costs of the commission incurred by implementing this requirement to be covered by existing resources of the commission. The bill would delete the provision requiring the number of tickets sold for a contest or wrestling exhibition to be reported to the commission. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 18640.5 is added to the Business and Professions Code, to read: 18640.5. (a) The commission, at its regularly scheduled meetings, shall invite testimony from boxing stakeholders to identify actions that may lead to greater opportunities for its licensees to participate in major professional championship boxing contests in the State of California. The commission shall invite testimony that shall include, but not be limited to, the following: (1) What cooperative actions may be taken by the private sector boxing stakeholders that may lead to greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. (2) What role may public-private partnerships play that may lead to greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. (3) What actions may local agencies take that may lead to greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. (4) What actions may the commission take that may lead to greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. (5) What actions may other state agencies take that may lead to greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. (b) The stakeholders shall include, but not be limited to, boxing promoters, boxing event venues, boxers, sports news outlets, and local agencies that have an interest in providing greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. (c) Upon receipt of the above described testimony the commission shall annually make recommendations to the Governor and the Legislature that it determines may provide greater opportunities for the commission's licensees to participate in major professional championship boxing contests in the State of California. (d) Nothing in this section shall jeopardize the commission's duties and responsibilities to protect the safety and welfare of boxers and the public. (e) Costs incurred by the commission in implementing this section shall be covered by existing resources of the commission. SEC. 2. Section 18824 of the Business and Professions Code, as amended by Section 2 of Chapter 776 of the Statutes of 2001, 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 amount of the gross receipts, not to exceed two million dollars ($2,000,000), and the gross price for the contest or wrestling exhibit 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 18824 of the Business and Professions Code, as added by Section 2 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 amount of the gross receipts for the contest or wrestling exhibit, 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 5 percent fee, exclusive of any federal taxes paid thereon, of the amount paid for admission to the contest or wrestling exhibition, and 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). (b) 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; provided, 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. (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 become operative on January 1, 2006.