BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        SB 309|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    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  
                                                                CONTINUED





                                                                     SB 309
                                                                     Page  
          2

          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  

                                                                CONTINUED





                                                                     SB 309
                                                                     Page  
          3

             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  

                                                                CONTINUED





                                                                     SB 309
                                                                     Page  
          4

             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  

                                                                CONTINUED





                                                                     SB 309
                                                                     Page  
          5

             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  

                                                                CONTINUED





                                                                     SB 309
                                                                     Page  
          6

             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  

                                                                CONTINUED





                                                                     SB 309
                                                                     Page  
          7

          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.   

                                                                CONTINUED





                                                                     SB 309
                                                                     Page  
          8

          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,  

                                                                CONTINUED





                                                                     SB 309
                                                                     Page  
          9

             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

                                   ****  END  ****
          






                                                                CONTINUED