BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 309|
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THIRD READING
Bill No: SB 309
Author: Price (D), et al.
Amended: 5/8/13
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM. : 9-1, 4/29/13
AYES: Price, Emmerson, Block, Corbett, Galgiani, Hernandez,
Hill, Padilla, Yee
NOES: Wyland
SENATE APPROPRIATIONS COMMITTEE : 5-0, 5/13/13
AYES: De León, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
SUBJECT : State Athletic Commission
SOURCE : Author
DIGEST : This bill extends the operation of the California
State Athletic Commission (CSAC) until 2016; and makes various
changes to the laws governing CSACs operations and CSACs
oversight of professional and amateur boxing, professional and
amateur kickboxing, and all forms and combinations of full
contact martial arts contests, including mixed martial arts
(MMA) and matches or exhibitions conducted, held or given in
California.
ANALYSIS : Existing federal law, the Muhammad Ali Boxing
Reform Act, prohibits events from taking place in a state
without a regulatory commission unless the fight is regulated by
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either another state's commission or on sovereign tribal land.
Existing law:
1. The Boxing Act or the State Athletic Commission Act (State
Act) provides for the licensing and regulation of boxers,
kickboxers, martial arts athletes and events held in
California by CSAC and makes CSAC inoperative and repealed on
January 1, 2014.
2. Provides for the membership of CSAC.
3. Provides that protection of the public shall be the highest
priority for CSAC in exercising its licensing, regulatory,
and disciplinary functions, and whenever the protection of
the public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.
4. Provides that CSAC 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 and
provides a report based thereon to the Legislature.
5. Provides that CSAC 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 and that only a natural person may be
licensed as a boxer and martial arts fighter.
6. Provides that CSAC 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.
Requires CSAC to review the performance of any such club or
organization annually. Requires CSAC to review compliance
with requirements for amateur contests to be preceded by a
physical examination of every contestant, that a physician is
in attendance at the contest and that the organization has a
medical insurance program covering all contestants. Requires
an organization to provide written financial reports of
receipts and disbursements within 90 days of an amateur
event. Authorizes CSAC to have representatives present as
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are necessary to obtain compliance with the requirements for
amateur events. Authorizes CSAC to require any additional
notices and reports from an organization it deems necessary.
7. Provides that no person shall conduct or operate a
professional boxers' training gymnasium unless he/she has a
license issued by CSAC. Defines "professional boxers'
training gymnasium" as a gymnasium, the principal business of
which is the providing of training facilities for
professional boxers, and in which a fee is charged to
professional boxers for the use of the gymnasium facilities
or a fee is charged to persons who view the training of
professional boxers. Provides that failure of a licensed
training gymnasium owner or operator, fighter, boxer,
trainer, second, or manager to report to CSAC an injury or
knockout of a licensed boxer or fighter or the holder of a
sparring permit shall be grounds for the suspension of their
license.
8. Establishes the application and renewal fee for a
professional boxers' training gymnasium at $200.
9. Provides that CSAC shall require, as a condition of licensure
and as a part of the application process, each applicant for
a license as a professional athlete or contestant licensed by
CSAC to undergo an examination by a licensed physician and
surgeon who specializes in neurology and neurosurgery.
Provides that the cost of the examinations 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. Provides that
the rate and manner of assessment shall be set by CSAC, and
may cover all costs associated with the examinations.
10.Requires applicants for a license or renewal of a license as
a professional boxer or professional martial arts fighter to
undergo blood tests to detect the presence of antibodies both
to the human immunodeficiency virus (HIV) and to hepatitis C
virus (HCV) and to detect the presence of the antigen of
hepatitis B virus (HBV) within 30 days prior to the date of
the application. Requires the results of all three tests to
be negative.
11.Provides that no referee or physician shall be assigned to a
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boxing contest who has not participated in a clinic sponsored
by CSAC in accordance with Business and Professions Code
Section 18731, in the preceding six months. Specifies that
clinics shall include, among other things, the subjects of
the rules of CSAC, the recognition and diagnosis of serious
or life-threatening, boxing-related and neurological injuries
and disorders, and refereeing a bout. Authorizes CSAC to pay
any necessary and authorized travel expenses of referees and
physicians who attend such clinics.
12.Establishes a five working day timeline for every person who
conducts a contest or wrestling exhibition for which
admission is charged and received to provide CSAC with proper
accounting and payment.
13.Establishes a fee of 5%, of the amount paid for admission to
the contest or wrestling exhibition, not to exceed the amount
of $100,000 to be paid to CSAC by every person who conducts a
contest or wrestling exhibition for which admission is
charged and received. Requires CSAC to provide a report to
the Legislature on the fiscal impact of the $100,000 limit on
fees collected by CSAC for admissions revenues. States that
if the fee for any one boxing contest exceeds $70,000, the
amount in excess of $70,000 shall be paid one-half to CSAC
and one-half to the Boxers' Pension Fund. Establishes a fee
of up to 5% for the sale, lease, or other exploitation of
broadcasting or television rights thereof to be paid to CSAC
by every person who conducts a contest or wrestling
exhibition. Specifies that the minimum fee shall be $1,000
or and maximum shall be $25,000.
14.Provides that an inspector or other representative of CSAC
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. Requires the inspector
or other CSAC representative to immediately mail the official
statement of gross receipts received by him/her from the
promoter to CSAC.
15.Makes various findings and declarations about the importance
of providing a pension to professional boxers and establishes
a Boxers' Pension Fund financed by an assessment on tickets,
contribution by boxers, managers, promoters or a combination
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thereof.
16.Establishes requirements for promoters to pay into the
Boxers' Pension Fund. Specifies that all contributions to
finance the Fund shall be deposited in the State Treasury and
credited to the Fund, all monies in which are continuously
appropriated for the purposes of administering the Fund.
States that the Fund is a retirement fund and provides that
no more than 20% of the annual contribution in the previous
two years shall be used for administrative costs associated
with investing, managing and distributing the Fund.
This bill:
1. Makes various technical and clarifying changes.
2. Extends CSAC's sunset date two years to January 1, 2016.
3. Deletes a number of reporting requirements.
4. Adds "sanctioning body" to the list of eligible organizations
to which CSAC may delegate its authority for oversight of
amateur sports. Authorizes CSAC to revoke the authority for
a previously authorized nonprofit boxing, wrestling, or
martial arts club or organization or sanctioning body to
administer its rules for amateur boxing, wrestling, and full
contact martial arts contests.
5. Replaces a professional boxers' training gymnasium license,
and requirements for an owner or operator of a professional
boxers' training gymnasium to report an injury or a knockout
to CSAC, with a professional trainer's license and
accountability measures for professional trainers to report
athlete injury to CSAC prior to a bout. Establishes the
application and renewal fee for a licensed professional
trainer as $200.
6. Provides that the administrative costs associated with
managing and distributing the neurological examination
account shall be limited to no more than 20% of the prior
year's contributions.
7. Requires CSAC in its discretion, to use monies from the State
Athletic Commission Neurological Examination Account to fund
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special neurological examinations and explore new diagnostic
imaging and testing to be used in relation to the
examinations required by this bill.
8. Authorizes CSAC to contract with a third party to conduct
officials training sessions. Clarifies that the third party
may charge attendees a fee. Removes the authority in current
law for CSAC to pay any necessary travel expenses of referees
and physicians who attend such clinics.
9. Authorizes CSAC to charge a $20 fee to issue federal
identification cards and provides that cards shall be
reissued once every four years.
10.Changes the required timeline from five working days to 72
hours for every person who conducts a contest or wrestling
exhibition for which admission is charged and received to
provide CSAC with proper accounting and payment.
11.Raises the minimum fee collected by CSAC for an amateur event
or contest from $500 to $1,000. Clarifies that the minimum
fee collected by CSAC for a professional event is $1,250.
12.Raises the maximum broadcasting fee collected by CSAC from
$25,000 to $35,000.
13.Limits the administrative costs associated with investing,
managing and distributing the Boxers' Pension Fund to 2% of
the corpus of the fund.
Background
This bill is one of six "sunset bills" the author is sponsoring
this session. According to the author's office, this bill is
necessary to extend the sunset date of CSAC in order to continue
the regulation of boxing, kickboxing and MMA in California. The
continued regulation will help to ensure that CSAC's mission of
protecting the public is in place for an additional four years.
In 2013, the Senate Business, Professions and Economic
Development (BPED) Committee conducted oversight hearings to
review 15 regulatory boards within the DCA: CSAC; Board of
Barbering and Cosmetology; State Board of Chiropractic
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Examiners; Board of Guide Dogs for the Blind; Certification
Organization of Interior Design; Medical Board of California
(MBC) and Registered Dispensing Opticians within the MBC;
California Board of Occupational Therapy; State Board of
Optometry; Osteopathic Medical Board of California; Naturopathic
Medicine Committee; Physical Therapy Board of California;
Respiratory Care Board of California; Speech-Language Pathology,
Audiology, Hearing Aid Dispensers Board; and the Veterinary
Medical Board.
The Senate BPED Committee began its review of these licensing
agencies in March and conducted three days of hearings. This
bill, and the accompanying sunset bills are intended to
implement legislative changes as recommended in the Committee's
Background Issue Papers for the agencies reviewed by the
Committee this year. For a detailed summary of the background,
issues, and recommendations relating to CSAC, refer to the
Senate BPED Committee analysis.
Comments
The author states that he has been concerned for the past number
of years about significant and ongoing problems with the way
CSAC does business but that in order to ensure the protection,
health, welfare and safety of the athletes and fighters licensed
by CSAC, who participate in sports and events CSAC oversees,
CSAC should continue to operate. According to the author,
federal law (Muhammad Ali Boxing Reform Act) prohibits events
from taking place in a state without a regulatory commission
unless the fight is regulated by either another state's
commission or on sovereign tribal land. Regulated events result
in higher levels of protection for fighters than unauthorized or
illegal events, in addition to added revenue for the state and a
boon to the local economy where events take place.
Related Legislation
SB 304 (Price) makes various changes to the Medical Practice Act
and to the Medical Board of California.
SB 305 (Price) extends, until January 1, 2018, the provisions
establishing the Naturopathic Medicine Committee and the
Respiratory Care Board (RCB), and extends the term of the
executive officers of the RCB and the Board of Optometry.
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Specifies that the Osteopathic Medical Board is subject to
review by the appropriate policy committees of the Legislature.
Exempts individuals who have performed pulmonary function tests
in Los Angeles county facilities for at least 15 years, from
licensure as a respiratory care therapist. Specifies that any
board under the Department of Consumer Affairs is authorized to
receive certified records from a local or state agency to
complete an applicant or licensee investigation and authorizes
them to provide those records to the board.
SB 306 (Price) extends, until January 1, 2018, the provisions
establishing the Board of Chiropractic Examiners, the
Speech-Language Pathology and Audiology and Hearing Aid
Dispensers Board (SLPAHADB), the Physical Therapy Board (PTB)
and the Board of Occupational Therapy and extends the terms of
the executive officers of the PTB and the SLPAHADB. Also
subjects the boards to be reviewed by the appropriate policy
committees of the Legislature.
SB 307 (Price) extends, until January 1, 2016, the provisions
establishing the Veterinary Medical Board (VMB) and the term of
the executive officer of the VMB. Makes other changes regarding
the inspection authority of the VMB as it pertains to veterinary
premises, the membership and responsibility of the
Multidisciplinary Committee of the VMB, and the requirements for
veterinary assistants regarding access to controlled substances.
SB 308 (Price) extends until January 1, 2018, the provisions
establishing the Interior Design Law, and the Board of Guide
Dogs for the Blind. Extends until January 1, 2016, the
provisions establishing the Board of Barbering and Cosmetology
and the term of the executive officer of the Board. Makes other
changes regarding interior design and the regulatory programs of
the boards, as specified.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Projected expenditures of $1.125 million (Athletic
Commission Fund) supporting 5.0 PY (personnel year) of staff,
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offset by $1.39 million in revenues, based on the Governor's
proposed 2013-14 Budget. CSAC is currently in an austerity
mode to build a small reserve to remain solvent. These
amounts include a proposed budget reduction of $814,000 and
4.6 PY.
Increased event fee revenues of approximately $184,000
annually (Athletic Commission Fund) as a result of increasing
the minimum fee for amateur events from $500 to $1,000,
establishing a minimum fee of $1,250 for professional events,
and increasing the maximum broadcasting/TV fee from $25,000
to $35,000 per event.
New revenues of approximately $100,000 annually (Athletic
Commission Fund) related to the replacement of the boxer's
training gymnasium license with a new professional trainer's
licensing program.
New revenues of approximately $4,000 annually (Athletic
Commission Fund) related to the fee charged for issuance of
federal identification cards.
Expenditures of approximately $46,000 annually (Athletic
Commission Fund) for .5 PY, Associate Government Program
Analyst, to administer the professional trainer's licensing
program.
No net change in expenditures associated with the changes to
the authorized administrative expenditure cap related to the
Boxer's Pension Fund. This change is intended to alleviate
fluctuations in spending authority.
MW:d 5/23/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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