Amended in Senate May 8, 2013

Amended in Senate April 24, 2013

Senate Bill No. 309

Introduced by Senator Price

(Principal coauthor: Assembly Member Gordon)

begin insert

(Coauthors: Assembly Members Alejo and Ian Calderon)

end insert

February 15, 2013

An act to amend Sections 18602, 18613, 18640.5, 18642, 18643, 18646, begin delete 18706, end delete 18711, 18731, 18824, 18825, 18880, and 18882 of, to add Sections begin delete 18713, 18816, end delete begin insert 18816 end insert and 18820 to, to repeal Sections 18654 and 18817 of, and to repeal and add Section 18653 of, the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL’S DIGEST

SB 309, as amended, Price. State Athletic Commission.

Under existing law, the State Athletic Commission Act, the State Athletic Commission is responsible for licensing and regulating boxing, kickboxing, and martial arts matches and is required to appoint an executive officer. Existing law repeals these provisions on January 1, 2014. A violation of the act is a crime.

This bill would extend the repeal date to January 1, 2016.

Existing law requires the commission, at its regularly scheduled meetings, to 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. Existing law requires the commission to annually make recommendations, based on that testimony, to the Governor and the Legislature.

This bill would delete that recommendation requirement.

Existing law authorizes the commission to license professional and amateur boxers, professional and amateur martial arts fighters, and booking agents, managers of professional boxers and professional martial arts fighters, trainers, chief seconds, and seconds of each. Under existing law, only a natural person may be licensed as a boxer and martial arts fighter.

This bill would eliminate that natural person limitation on who may be licensed as a boxer and martial arts fighter.

Under existing law, the commission may authorize a nonprofit boxing, wrestling, or martial arts club or organization, upon approval of its bylaws, to administer its rules for amateur boxing, wrestling, and full contact martial arts contests subject to specified findings by the commission.

This bill would additionally authorize a sanctioning body to administer its rules. The bill would authorize the commission to revoke the authority for a previously authorized nonprofit boxing, wrestling, or martial arts club, organization, or sanctioning body to administer its rules.

Existing law prohibits a person from conducting or operating a professional boxers’ training gymnasium unless he or she has been issued a license by the commission. Under existing law, the failure of a licensed training gymnasium owner or operator, fighter, boxer, trainer, second, or manager to report to the commission an injury or knockout of a licensed boxer or fighter or the holder of a sparring permit is grounds for the suspension of his or her license.

This bill would repeal those provisions. The bill would prohibit a person from training a professional boxer or kickboxer or martial arts athlete unless he or she has been licensed by the commission. The bill would make the application and renewal fee for a licensed professional trainer $200. The bill would define a “professional trainer” as someone who is responsible for the day to day training of those aforementioned athletes and possesses a minimum of 5 years experience in combative sports. The bill would authorize only licensed professional trainers to make a recommendation to the commission on whether a contestant is prepared for his or her first amateur mixed martial arts bout or to turn professional in boxing, kickboxing, or mixed martial arts. The bill would require a professional trainer to be present in the corner of the contestant unless otherwise authorized by the commission or the executive officer. The bill would make the failure of a licensed professional trainer to report to the commission and Fight Fax Inc. an injury or knockout of a licensed boxer or fighter grounds for the suspension of his or her license. The bill would make a conforming change.

Under existing law, the commission requires, as a condition of licensure and annual renewal and as a part of the application process, the examination by a licensed physician and surgeon who specializes in neurology and neurosurgery of each applicant for a license as a professional athlete or contestant, in addition to any other medical examinations. Existing law requires the cost of the examinations to be paid from assessments on any one or more of the following: promoters of professional matches, managers, and professional athletes or other contestants licensed under the act.

This bill would specify that the administrative costs associated with managing and distributing the State Athletic Commission Neurological Examination Account shall be limited to no more than 20% of the prior year’s contributions. begin insert The bill would authorize the commission to use moneys from the State Athletic Commission Neurological Examination Account, upon appropriation by the Legislature, to fund special neurological examinations and explore new diagnostic imaging and testing to be used in relation to those required examinations. end insert

begin delete

Under the act, a physician and surgeon is required to certify the contestant’s physical condition to engage in the match. Existing law states that nothing in the act may be construed to require a contestant to submit to a pregnancy test.

end delete begin delete

This bill would require a female who is a contestant in a professional or amateur boxing match, kickboxing match, or martial arts match to provide the commission with the results of a pregnancy test indicating whether she is currently pregnant before a match commences. The bill would prohibit a female contestant from competing in a match if she is pregnant. The bill would require these results to be kept confidential.

end delete

Existing law prohibits a referee or physician and surgeon from being assigned to a boxing contest if he or she has not participated in a clinic sponsored by the commission. Existing law authorizes the commission to pay any necessary and authorizes travel expenses of referees and physicians and surgeons who attend such clinics.

This bill would delete that payment authorization and would authorize the commission to contract with a 3rd party to conduct a clinic. The bill would authorize a 3rd party to charge attendees a reasonable fee, as specified.

Existing federal law requires a state boxing commission to issue to each professional boxer who registers with it an identification card containing specified information and requires each professional boxer to renew his or her identification card at least once every 4 years.

This bill would require the commission to charge a $20 fee to issue federal identification cards and would require those cards to be reissued once every 4 years.

Existing law requires every person who conducts a contest or wrestling exhibition, within 5 working days after the determination of every contest or wrestling exhibition for which admission is charged and received, to furnish to the commission, among other things, a fee of 5% of the amount paid for admission to the contest or wrestling exhibition, but begin delete the fee shall not exceed end delete begin insert prohibits the fee from exceeding end insert $100,000 begin insert , and a fee of up to 5%, as specified, for the sale, lease, or other exploitation of broadcasting or television rights, except that this fee is prohibited from being less than $1,000 or more than $25,000 end insert . Existing law requires the commission to report to a specified legislative committee on the fiscal impact of that $100,000 limitation. Existing law prohibits the minimum fee for an amateur contest or exhibition from being less than $500.

This bill would instead require the commission to furnish that 5% fee within begin delete 24 end delete begin insert 72 end insert hours and report to the Legislature during its next sunset review. begin insert The bill would instead increase the limit on the 5% fee for the sale, lease, or other exploitation of broadcasting or television rights to $35,000. end insert

Existing law requires the administrative costs associated with investing, managing, and distributing the Boxers’ Pension Fund to be limited to no more than 20% of the average annual contribution made to the fund in the previous 2 years, not including any investment income derived from the corpus of the fund. Existing law requires the commission to report to a legislative committee on the impact of these provisions during the next regularly scheduled sunset review.

This bill would limit those administrative costs to no more than 2% and would require that report to be submitted to the Legislature.

Because a violation of the bill’s requirements would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 18602 of the Business and Professions
Code is amended to read:

18602.  

(a) Except as provided in this section, there is in the
Department of Consumer Affairs the State Athletic Commission,
which consists of seven members. Five members shall be appointed
by the Governor, one member shall be appointed by the Senate
Rules Committee, and one member shall be appointed by the
Speaker of the Assembly.

The members of the commission appointed by the Governor are
subject to confirmation by the Senate pursuant to Section 1322 of
the Government Code.

No person who is currently licensed, or who was licensed within
the last two years, under this chapter may be appointed or
reappointed to, or serve on, the commission.

(b) In appointing commissioners under this section, the
Governor, the Senate Committee on Rules, and the Speaker of the
Assembly shall make every effort to ensure that at least four of
the members of the commission shall have experience and
demonstrate expertise in one of the following areas:

(1) A licensed physician or surgeon having expertise or
specializing in neurology, neurosurgery, head trauma, or sports
medicine. Sports medicine includes, but is not limited to,
physiology, kinesiology, or other aspects of sports medicine.

(2) Financial management.

(3) Public safety.

(4) Past experience in the activity regulated by this chapter,
either as a contestant, a referee or official, a promoter, or a venue
operator.

(c) Each member of the commission shall be appointed for a
term of four years. All terms shall end on January 1. Vacancies
occurring prior to the expiration of the term shall be filled by
appointment for the unexpired term. No commission member may
serve more than two consecutive terms.

(d) Notwithstanding any other provision of this chapter,
members first appointed shall be subject to the following terms:

(1) The Governor shall appoint two members for two years, two
members for three years, and one member for four years.

(2) The Senate Committee on Rules shall appoint one member
for four years.

(3) The Speaker of the Assembly shall appoint one member for
four years.

(e) (1) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2016, deletes or extends that date.

(2) Notwithstanding any other law, the repeal of this section
renders the board subject to review by the appropriate policy
committees of the Legislature.

SEC. 2.  

Section 18613 of the Business and Professions Code
is amended to read:

18613.  

(a) (1) The commission shall appoint a person exempt
from civil service who shall be designated as an executive officer
and who shall exercise the powers and perform the duties delegated
by the commission and vested in him or her by this chapter. The
appointment of the executive officer is subject to the approval of
the Director of Consumer Affairs.

(2) The commission may employ in accordance with Section
154 other personnel as may be necessary for the administration of
this chapter.

(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 3.  

Section 18640.5 of the Business and Professions Code
is amended 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) Nothing in this section shall jeopardize the commission’s
duties and responsibilities to protect the safety and welfare of
boxers and the public.

(d) Costs incurred by the commission in implementing this
section shall be covered by existing resources of the commission.

SEC. 4.  

Section 18642 of the Business and Professions Code
is amended to read:

18642.  

The commission may license professional and amateur
boxers, professional and amateur martial arts fighters, and booking
agents, managers of professional boxers and professional martial
arts fighters, trainers, chief seconds, and seconds of each.

No person shall participate in any contest or serve in the capacity
of a booking agent, manager, trainer, or second, unless he or she
has been licensed for that purpose by the commission.

SEC. 5.  

Section 18643 of the Business and Professions Code
is amended to read:

18643.  

(a) No professional boxer shall spar for training
purposes with any person not licensed as a professional boxer or
who does not have a sparring permit. The commission may
authorize a professional boxer to spar with someone not licensed
as a professional boxer or who does not have a sparring permit,
under special circumstances subject to a commission representative
being present. No person licensed under this chapter shall conduct,
hold, or permit unlicensed persons to spar unless commission
authorization is granted.

(b) The commission may issue a permit to spar with professional
boxers for training purposes. This permit shall be issued only to
persons who meet the physical and mental requirements for
licensure as a professional boxer.

SEC. 6.  

Section 18646 of the Business and Professions Code
is amended to read:

18646.  

(a) This chapter applies to all amateur boxing,
wrestling, and full contact martial arts contests.

(b) The commission may, however, authorize a nonprofit boxing,
wrestling, or martial arts club, organization, or sanctioning body,
upon approval of its bylaws, to administer its rules for amateur
boxing, wrestling, and full contact martial arts contests, and may,
therefore, waive direct commission application of laws and rules,
including licensure, subject to the commission’s affirmative finding
that the standards and enforcement of similar rules by that club or
organization meet or exceed the safety and fairness standards of
the commission. The commission shall review the performance of
any such club, organization, or sanctioning body annually.

(c) Every contest subject to this section shall be preceded by a
physical examination, specified by the commission, of every
contestant. A physician shall be in attendance at the contest. There
shall be a medical insurance program satisfactory to the
commission provided by the amateur club, organization, or
sanctioning body in effect covering all contestants. The commission
shall review compliance with these requirements.

(d) Any club, organization, or sanctioning body that conducts,
holds, or gives amateur contests pursuant to this section, which
collects money for the event, shall furnish a written financial report
of receipts and disbursements within 90 days of the event.

(e) The commission has the right to have present without charge
or restriction such representatives as are necessary to obtain
compliance with this section.

(f) The commission may require any additional notices and
reports it deems necessary to enforce the provisions of this section.

(g) The commission may revoke the authority for a previously
authorized nonprofit boxing, wrestling, or martial arts club,
organization, or sanctioning body to administer its rules for amateur
boxing, wrestling, and full contact martial arts contests.

SEC. 7.  

Section 18653 of the Business and Professions Code
is repealed.

SEC. 8.  

Section 18653 is added to the Business and Professions
Code, to read:

18653.  

(a) No person shall train a professional boxer or
kickboxer or martial arts athlete unless he or she has been licensed
by the commission. A professional trainer is someone who is
responsible for the day to day training of those athletes and
possesses a minimum of five years experience in combative sports.
Only professional trainers licensed by the commission may make
a recommendation to the commission on whether a contestant is
prepared for his or her first amateur mixed martial arts bout or to
turn professional in boxing, kickboxing, or mixed martial arts. A
professional trainer shall be present in the corner of the contestant
unless otherwise authorized by the commission or the executive
director.

(b) Failure of a licensed professional trainer to report to the
commission and Fight Fax Inc. an injury or knockout of a licensed
boxer or fighter shall be grounds for the suspension of his or her
license pursuant to this chapter.

SEC. 9.  

Section 18654 of the Business and Professions Code
is repealed.

begin delete

SEC. 10.  

Section 18706 of the Business and Professions Code
is amended to read:

18706.  

(a) Not later than at the weigh-in time, which shall be
not more than 30 hours prior to the beginning of the first event,
the physician provided for in Section 18705 shall conduct a
physical examination of the contestant and certify in writing as to
the contestant’s physical condition to engage in the contest or
match.

(1) The commission shall make the contestant’s medical records
available to the physician and the physician shall review the
contestant’s medical records as part of the certification of the
contestant’s physical condition.

(2) The physician shall determine whether the contestant may
have any knowledge, manifestations, symptoms, or prior history
of a physical condition that may affect the contestant’s ability to
perform or present a potential threat to the contestant’s health as
a result of competing in the contest or match. The contestant shall
complete a questionnaire developed by the commission. The
contestant shall be asked to disclose on the questionnaire any
conditions of which the contestant is aware, including, but not
limited to, any of the following:

(A) Significant weight gain or loss and any change in weight
in the seven days prior to the contest.

(B) Neuromuscular condition, including peripheral nerves,
muscle problems, and brain problems.

(C) Pregnancy.

(D) Bone fractures and all forms of arthritis.

(E) Any condition related to vision or changes in hearing
function.

(F) Heart condition or other cardiovascular condition.

(G) Pulmonary or respiratory condition.

(H) Renal or urological condition.

(I) Hematological condition, including manifestations of any
unusual bleeding or bruising.

If any condition is disclosed under this paragraph, the physician
shall not allow the contestant to compete unless the physician or,
at the contestant’s discretion, the contestant’s personal physician,
who is licensed to practice medicine in the United States, has
conducted a physical examination and determined that the specific
condition does not affect the contestant’s ability to perform or
present a potential threat to the contestant’s health as a result of
competing in the contest or match.

(3) The questionnaire shall be developed by the commission
through promulgated regulations in consultation with qualified
medical professionals.

(b) On the day of the event, and no later than one hour before
the contestants enter the ring, the physician provided for in Section
18705 shall conduct a brief reexamination and certify in writing
as to the contestant’s physical condition to engage in the contest
or match. This reexamination shall include an evaluation of any
significant changes since the physical examination provided under
subdivision (a).

(c) A report of the medical examinations shall be filed with the
commission not later than 24 hours after the termination of the
contest or match. The physician’s report of the examination shall
include specific mention as to the condition of the contestant’s
heart, nerves and brain.

end delete

begin delete SEC. 11. end delete
begin insert SEC. 10. end insert   

Section 18711 of the Business and Professions Code
is amended to read:

18711.  

(a) (1) (A) The commission shall require, as a
condition of licensure and as a part of the application process, the
examination by a licensed physician and surgeon who specializes
in neurology and neurosurgery of each applicant for a license as
a professional athlete or contestant licensed under this chapter or,
if for the renewal of a license, this examination every year, in
addition to any other medical examinations.

(i) Upon initial licensure, the examination shall include tests
and examinations designed to detect physical conditions that could
place the athlete or contestant at risk for serious injury or
permanent or temporary impairment of any bodily function. These
tests or examinations shall include, but not be limited to, a
neurological examination or a neuro-psychological examination,
a brain imaging scan, and an electrocardiogram (EKG). The
physician may recommend any additional tests or evaluations he
or she deems necessary.

(ii) For renewal of a license, the physician shall determine the
tests or evaluations necessary, if any.

(iii) The commission may require an athlete or contestant
licensed under this chapter to undergo additional neurological tests
where, based on the totality of the athlete’s or contestant’s records,
it appears the athlete or contestant may be at risk of cognitive
impairment.

(iv) On the basis of a physical examination under this
subdivision, and any additional tests that are conducted, the
physician may recommend to the commission whether the applicant
may be permitted to be licensed in California or not. The executive
officer shall review these recommendations and report any denials
of licensure. If, as a result of these recommendations, the executive
officer refuses to grant the applicant a license or to renew a license,
the applicant shall not compete in California until the denial has
been overruled by the commission as provided in this chapter.

(v) The commission may waive the requirement for a brain
imaging scan or an EKG if a brain imaging scan or EKG was
completed as part of the licensing requirements in another state,
the commission determines that this brain imaging scan or EKG
creates a reliable baseline for the athlete or contestant, and the
commission has been provided with a copy of the brain imaging
scan or EKG reports.

(vi) This subparagraph shall become inoperative on the date the
regulations adopted by the commission pursuant to subparagraph
(B) become operative.

(B) On and after January 1, 2008, all professional athletes
licensed under this chapter shall be required by the commission
to complete a medical examination process, which shall include
the completion of specific medical examinations, to be determined
by the commission through regulations, as a condition of initial
licensure and license renewal. This medical examination process
may include examinations required under current law and any
additional medical examinations determined to be medically
necessary. In adopting the medical examination process, the
commission shall consider the health and safety of contestants, the
medical necessity of any examinations required, and the financial
aspects of requiring those medical examinations.

(2) In the absence of any pertinent untoward medical event, the
commission may, in its discretion, on forms prescribed by the
commission, accept tests or evaluations that are equivalent to those
described in paragraph (1) and that have been completed within
one year of licensure to meet the requirements of this subdivision.

(3) (A) Any medical records obtained, reviewed, or created
under this chapter shall be utilized only for purposes of
administering this chapter. The commission and any physician
may not disclose the athlete’s medical records without a signed
authorization from the athlete, except that the commission may
disclose those records to other state licensing boards and
commissions to which the athlete has applied for licensure or has
an enforcement action pending, or upon court order in a criminal
or civil action.

(B) After the adoption of regulations to establish a process for
participating in medical research studies, the commission may use
medical information for purposes of participating in medical
research studies of the effects on the human body of contests and
exhibitions regulated under this chapter. However, medical
information shall not include any personal identifying information
on any contestant, including, but not limited to, the contestant’s
name, address, telephone number, social security number, license
number, federal identification number, or any other information
identifying the contestant. The medical information shall only be
provided if the licensed athlete has consented in writing to
participate in the research study. The regulations adopted by the
commission shall include a process to ensure that no conflicts of
interest arise regarding which medical examinations are required
to be completed by contestants.

(b) If an applicant for licensure as a professional athlete under
this chapter undergoes a neurological examination for purposes
of licensure within the 120-day period immediately preceding the
normal expiration of that license, the applicant shall not be required
to undergo an additional neurological examination within the
following 12 consecutive month license period unless the
commission, for cause, orders that the examination be taken. The
commission shall notify all commission-approved physicians and
referees that the commission has the authority to order any
professional athlete to undergo a neurological examination.

(c) The cost of the examinations required by this section shall
be paid from assessments on any one or more of the following:
promoters of professional matches, managers, and professional
athletes or other contestants licensed under this chapter. The rate
and manner of assessment shall be set by the commission, and
may cover all costs associated with the requirements of this section.
This assessment shall be imposed on all contests approved by the
commission under this chapter. As of July 1, 1994, all moneys
received by the commission pursuant to this section shall be
deposited in and credited to the State Athletic Commission
Neurological Examination Account which is hereby created in the
General Fund. The administrative costs associated with managing
and distributing the State Athletic Commission Neurological
Examination Account shall be limited to no more than 20 percent
of the prior year’s contributions.

begin insert

(d) In its discretion, the commission may use moneys from the
State Athletic Commission Neurological Examination Account,
upon appropriation by the Legislature, to fund special neurological
examinations and explore new diagnostic imaging and testing to
be used in relation to the examinations required by this section.

end insert begin delete

(d)

end delete

begin insert (e) end insert  Whenever a reference is made to the Boxers’ Neurological
Examination Account, it is to be construed as referring to the State
Athletic Commission Neurological Examination Account.

begin delete

SEC. 12.  

Section 18713 is added to the Business and
Professions Code, to read:

18713.  

A female who is a contestant in a professional or
amateur boxing match, kickboxing match, or martial arts match
shall provide the results of a pregnancy test before the match
commences to indicate whether she is currently pregnant. The
pregnancy test shall have been taken between seven and 14 days
before the match. If the results indicate that the contestant is
pregnant, she shall not compete in the match. Pregnancy results
shall be kept confidential by the commission.

end delete

begin delete SEC. 13. end delete
begin insert SEC. 11. end insert   

Section 18731 of the Business and Professions Code
is amended to read:

18731.  

No referee or physician and surgeon shall be assigned
to a boxing contest who has not participated in a clinic sponsored
by the commission in accordance with this section in the preceding
six months. The commission may contract with a third party to
conduct a clinic. The third party may charge clinic attendees a fee
in an amount not to exceed the reasonable cost of the clinic.

Clinics shall include, among other things, the subjects of the
rules of the commission, the recognition and diagnosis of serious
or life-threatening, boxing-related and neurological injuries and
disorders, and refereeing a bout.

begin delete SEC. 14. end delete
begin insert SEC. 12. end insert   

Section 18816 is added to the Business and
Professions Code, to read:

18816.  

The application and renewal fee for a licensed
professional trainer, as described in Section 18653, shall be two
hundred dollars ($200).

begin delete SEC. 15. end delete
begin insert SEC. 13. end insert   

Section 18817 of the Business and Professions Code
is repealed.

begin delete SEC. 16. end delete
begin insert SEC. 14. end insert   

Section 18820 is added to the Business and
Professions Code, to read:

18820.  

The commission shall charge a twenty dollar ($20) fee
to issue federal identification cards. Cards shall be reissued once
every four years.

begin delete SEC. 17. end delete
begin insert SEC. 15. end insert   

Section 18824 of the Business and Professions Code
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 begin delete twenty-four end delete begin insert 72 end insert hours after the determination of every contest
or wrestling exhibition for which admission is charged and
received, furnish to the commission the following:

(1) 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 exhibition 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.

(2) 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 contest, the fee shall
not exceed the amount of one hundred thousand dollars ($100,000).
The commission shall report to the Legislature on the fiscal impact
of the one hundred thousand dollar ($100,000) limit on fees
collected by the commission for admissions revenues during its
next sunset review.

(A) The amount of the gross receipts upon which the fee
provided for in paragraph (2) is calculated shall not include any
assessments levied by the commission under Section 18711.

(B) (i) If the fee 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.

(ii) If the report required by subdivision (b) of Section 18618
recommends that the Boxers’ Pension Fund shall be expanded to
include all athletes licensed under this chapter, the commission,
by regulation, shall require, for all contests where the fee 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 only if all
athletes licensed under this chapter are made eligible for the
Boxers’ Pension Fund.

(C) The fee shall apply to the amount actually paid for admission
and not to the regular established price.

(D) 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 33 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 33 percent of the total number of spectators.

(E) The minimum fee for an amateur contest or exhibition shall
not be less than one thousand dollars ($1,000). The minimum fee
for a professional contest or exhibition shall not be less than one
thousand two hundred fifty dollars ($1250).

(3) A fee of up to 5 percent, to be established by the commission
through regulations to become operative on or before July 1, 2008,
and updated periodically as needed, of the gross price, exclusive
of any federal taxes paid thereon, 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) or more than begin delete twenty-five end delete begin insert thirty-five end insert thousand dollars
begin delete ($25,000) end delete begin insert ($35,000) end insert .

(b) 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.

begin delete SEC. 18. end delete
begin insert SEC. 16. end insert   

Section 18825 of the Business and Professions Code
is amended to read:

18825.  

An inspector or other representative of the commission
duly authorized by the executive officer shall be admitted to the
box office, and is authorized to assist in the counting of tickets
and in the computation of the tax due thereon, and to take any
other action necessary for the administration and enforcement of
this chapter. The inspector or other representative shall immediately
transmit to the commission the official statement of gross receipts
received by him or her from the promoter.

begin delete SEC. 19. end delete
begin insert SEC. 17. end insert   

Section 18880 of the Business and Professions Code
is amended to read:

18880.  

(a) The Legislature finds and declares all of the
following:

(1) That professional athletes licensed under this chapter, as a
group, for many reasons, do not retain their earnings, and are often
injured or destitute, or both, and unable to take proper care of
themselves, whether financially or otherwise, and that the
enactment of this article is to serve a public purpose by making
provisions for a needy group to insure a modicum of financial
security for professional athletes.

(2) Athletes licensed under this chapter may suffer extraordinary
disabilities in the normal course of their trade. These may include
acute and chronic traumatic brain injuries, resulting from multiple
concussions as well as from repeated exposure to a large number
of subconcussive punches, eye injuries, including retinal tears,
holes, and detachments, and other neurological impairments.

(3) The pension plan of the commission is part of the state’s
health and safety regulatory scheme, designed to protect athletes
licensed under this chapter from the health-related hazards of their
trade. The pension plan addresses those health and safety needs,
recognizing the disability and health maintenance expenses those
needs may require.

(4) The regulatory system of California is interrelated with the
conduct of the trade in every jurisdiction. Athletes licensed under
this chapter participate in contests in other states and many athletes
who are based in those other jurisdictions may participate in
California on a single-event basis.

(5) The outcomes and natures of fights in other jurisdictions are
relevant to California regulatory jurisdiction and are routinely
monitored for health and safety reasons, so that, for example, a
knockout of an athlete licensed under this chapter in another
jurisdiction is paid appropriate heed with respect to establishing
a waiting period before that athlete may commence fighting in
California.

(6) The monitoring of other jurisdictions is an integral part of
the health and safety of California athletes licensed under this
chapter due to the interstate nature of the trade, and therefore the
regulatory scheme for contests and athletes under this chapter
should reflect this accordingly.

(b) The provisions of this article pertain only to professional
athletes licensed under this chapter.

begin delete SEC. 20. end delete
begin insert SEC. 18. end insert   

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.

(f) The administrative costs associated with investing, managing,
and distributing the Boxers’ Pension Fund shall be limited to no
more than 2 percent of the corpus of the fund. Diligence shall be
exercised by administrators in order to lower the fund’s expense
ratio as far below 2 percent as feasible and appropriate. The
commission shall report to the Legislature on the impact of this
provision during the next regularly scheduled sunset review.

begin delete SEC. 21. end delete
begin insert SEC. 19. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.