BILL NUMBER: SB 309 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 9, 2013
AMENDED IN ASSEMBLY SEPTEMBER 6, 2013
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN ASSEMBLY AUGUST 5, 2013
AMENDED IN ASSEMBLY JUNE 14, 2013
AMENDED IN SENATE MAY 8, 2013
AMENDED IN SENATE APRIL 24, 2013
INTRODUCED BY Senator Lieu
(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,
18646,18711, 18646, 18711, 18824, 18825, and
18882 of, to add Sections 18816 and 18820 to, to repeal Sections
18643 and 18817 of, and to repeal and add Sections 18653, 18654, and
18731 of, the Business and Professions Code, relating to business.
LEGISLATIVE COUNSEL'S DIGEST
SB 309, as amended, Lieu. State Athletic Commission.
Under existing law, the State Athletic Commission Act, the State
Athletic Commission has jurisdiction over all professional and
amateur boxing, professional and amateur kickboxing, and all forms
and combinations of forms of full contact martial arts contests 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 the commission's rules for
amateur boxing, wrestling, and full contact martial arts contests
subject to a specified finding by the commission.
This bill would additionally authorize a sanctioning body to
administer its rules. The bill would authorize the commission to
rescind an authorization to a nonprofit boxing, wrestling, or martial
arts club, organization, or sanctioning body to administer its
rules.
Existing law prohibits a professional boxer from sparring for
training purposes with any person not licensed as a professional
boxer or who does not have a sparring permit. 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, fighter, boxer, second, or manager to report to the
commission and a database designated by the commission an injury or
knockout grounds for the suspension or revocation of his or her
license.
Under existing law, the commission requires, as a condition of
licensure and as a part of the application process and for renewal of
a license, 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.
Existing law requires these assessments to be deposited in the State
Athletic Commission Neurological Examination Account.
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 no more than 30% of moneys from the State Athletic
Commission Neurological Examination Account, upon appropriation by
the Legislature, to fund special neurological examinations and new
diagnostic imaging and testing to be used in relation to those
required examinations.
Existing law requires the commission to license referees. Existing
law requires a referee to be in attendance at every boxing contest
and to enforce the rules of the commission at every boxing contest.
Existing law requires a licensed physician and surgeon to observe the
physical condition of the contestant during the contest. 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 in the preceding 6 months. Existing law
authorizes the commission to pay any necessary and permitted travel
expenses of referees and physicians and surgeons who attend such
clinics.
This bill would instead prohibit a referee or physician and
surgeon from being assigned to a boxing contest if he or she has not
completed, within the preceding 6 months, a clinic offered by a
provider approved by the commission, as specified. The bill would
authorize a clinic provider to charge a referee or physician and
surgeon participating in a clinic a reasonable fee.
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 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. If the fee for a boxing contest exceeds $70,000,
existing law requires that 1/2 of the amount in excess of $70,000 be
paid to the commission and 1/2 to the Boxers' Pension Fund. Existing
law revises this requirement if a specified report recommends
expansion of the application of the Boxers' Pension Fund. Existing
law prohibits the minimum fee for an amateur contest or exhibition
from being less than $500.
This bill would instead require those fees to be furnished within
72 hours. The bill would require the commission to report to the
Legislature on the fiscal impact of that $100,000 limitation during
its next sunset review. The bill would increase the limit on the 5%
fee for the sale, lease, or other exploitation of broadcasting or
television rights to $35,000. The bill would delete the provisions
that require revision of the distribution of fees in excess of
$70,000 based on a specified report. The bill would prohibit the
minimum fee for an amateur contest or exhibition from being less than
$1,000. The bill would prohibit the minimum fee for a professional
contest or exhibition from being less than $1,250.
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 specified 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% of the corpus of the fund and would require that report to be
submitted to the Legislature.
This bill would incorporate additional changes to Section 18646 of
the Business and Professions Code made by this bill and AB 1186 to
take effect if both bills are chaptered and this bill is chaptered
last.
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
repealed.
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, at its discretion, may rescind previously
approved authorization of a 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. 6.5. 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
one or more nonprofit boxing, wrestling, or martial arts
club or organization, clubs, organizations,
or sanctioning bodies, 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 a club or
organization meet or exceed the safety and fairness standards of the
commission. The commission shall review the performance of any such
club or , 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 and surgeon shall be in attendance
at the contest. There shall be a medical insurance program
satisfactory to the commission provided by the
an amateur club or ,
organization , or sanctioning body in effect covering all
contestants. The commission shall review compliance with these
requirements.
(d) Any club or , organization
which , 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, at its discretion, may rescind previously
approved authorization of a 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. 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.
SEC. 9. Section 18654 of the Business and Professions Code is
repealed.
SEC. 10. Section 18654 is added to the Business and Professions
Code, to read:
18654. Failure of a licensed professional trainer, fighter,
boxer, second, or manager to report an injury or knockout of a
licensed boxer or fighter to the commission and to a database
designated by the commission, which may include the national athlete
and bout results databases approved by the Association of Boxing
Commissions for boxing and mixed martial arts, shall be grounds for
the suspension or revocation of his or her license pursuant to this
chapter.
SEC. 11. 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) The commission may use no more than 30 percent of moneys from
the State Athletic Commission Neurological Examination Account, upon
appropriation by the Legislature, to fund special neurological
examinations and new diagnostic imaging and testing to be used in
relation to the examinations required by this section.
(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 18731 of the Business and Professions Code is
repealed.
SEC. 13. Section 18731 is added to the Business and Professions
Code, to read:
18731. (a) In addition to the other requirements of this chapter
and regulations adopted thereunder, no referee or physician and
surgeon shall be assigned to a boxing contest if he or she has not
completed a clinic offered by a provider approved by the commission.
(b) A referee or physician and surgeon shall complete a clinic
within the preceding six months of a boxing contest.
(c) The commission shall approve a clinic provider if the clinic
includes, at a minimum, but is not limited to, the following topics
related to a boxing contest: 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.
(d) The clinic provider may charge a referee or physician and
surgeon participating in a clinic a fee in an amount not to exceed
the reasonable cost of the clinic.
(e) Nothing in this section shall be construed to prohibit the
commission from offering a clinic subject to the requirements of this
section.
SEC. 14. 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. Section 18817 of the Business and Professions Code is
repealed.
SEC. 16. 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. 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
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) 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.
(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 ($1,250).
(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 thirty-five thousand dollars ($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. 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. 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. 20. Section 6.5 of this bill incorporates
amendments to Section 18646 of the Business and Professions Code
proposed by this bill and AB 1186. It shall only become operative if
(1) both bills are enacted and become effective on or before January
1, 2014, (2) each bill amends Section 18646 of the Business and
Professions Code, and (3) this bill is enacted after AB 1186, in
which case Section 18646 of the Business and Professions Code, as
amended by AB 1186, shall remain operative only until the operative
date of this bill, at which time Section 6.5 of this bill shall
become operative, and Section 6 of this bill shall not become
operative.
SEC. 20. SEC. 21. 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.