BILL NUMBER: SB 309 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 8, 2013
AMENDED IN SENATE APRIL 24, 2013
INTRODUCED BY Senator Price
(Principal coauthor: Assembly Member Gordon)
( Coauthors: Assembly Members
Alejo and Ian Calderon )
FEBRUARY 15, 2013
An act to amend Sections 18602, 18613, 18640.5, 18642, 18643,
18646, 18706, 18711, 18731, 18824, 18825, 18880,
and 18882 of, to add Sections 18713, 18816,
18816 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. 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.
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.
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.
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 the fee shall not exceed
prohibits the fee from exceeding $100,000 ,
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 . 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 24 72 hours and report to
the Legislature during its next sunset review. 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.
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.
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.
SEC. 11. SEC. 10. 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.
(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.
(d)
(e) 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.
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.
SEC. 13. SEC. 11. 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.
SEC. 14. SEC. 12. 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).
SEC. 15. SEC. 13. Section 18817 of
the Business and Professions Code is repealed.
SEC. 16. SEC. 14. 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.
SEC. 17. SEC. 15. 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
twenty-four 72 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 twenty-five thirty-five
thousand dollars ($25,000) ($35,000)
.
(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.
SEC. 18. SEC. 16. 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.
SEC. 19. SEC. 17. 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.
SEC. 20. SEC. 18. 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.
SEC. 21. SEC. 19. 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.