BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 309
                                                                  Page  1

          Date of Hearing:   August 13, 2013

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                               Susan A. Bonilla, Chair
                     SB 309 (Lieu) - As Amended:  August 5, 2013

           SENATE VOTE  :   36-3
           
          SUBJECT  :   State Athletic Commission.

           SUMMARY  :   Extends the operation of the California State  
          Athletic Commission (Commission) until 2016, which regulates  
          professional and amateur boxing, kickboxing, and martial arts  
          contests and exhibitions; enacts fee increases and spending  
          restrictions to ensure the financial sustainability and  
          appropriate operation of the Commission;  deletes the training  
          gymnasium license and creates a professional trainer's license;  
          and expands the Commission's authority to delegate and revoke  
          regulatory oversight of amateur contests.   Specifically,  this  
          bill  :   

          1) Extends the sunset date of the Commission and its executive  
             officer to January 1, 2016.

          2) Deletes annual reporting requirements related to the  
             identification of opportunities for licensees to participate  
             in major professional championship boxing contests.

          3) Deletes the obsolete requirement that only a natural person  
             be licensed as a boxer or martial arts fighter.

          4) Repeals the prohibition against a professional boxer sparring  
             for training purposes with any person not licensed as a  
             professional boxer or who does not have a sparring permit, or  
             operating under a related exemption. 

          5) Repeals the Commission's authority to issue a sparring  
             permit.

          6) Deletes requirements related to operators of a professional  
             boxers' training gymnasium. 

          7) Permits the Commission to authorize sanctioning bodies to  
             administer its rules for amateur boxing, wrestling and full  








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             contact martial arts contests, as specified, the performance  
             of which may be reviewed by the Commission annually. 

          8) Requires sanctioning bodies to provide a medical insurance  
             program satisfactory to the Commission covering all  
             contestants, and to provide a written financial report of  
             receipts and disbursements to the Commission within 90 days  
             of an event. 

          9) Authorizes the Commission, at its discretion, to rescind  
             previously approved authorization of a nonprofit boxing,  
             wrestling, or martial arts club, organization, or sanctioning  
             body to administer its rules.

          10)Repeals provisions related to the professional boxers'  
             training gymnasium license and owners and operators thereof.

          11)Requires the trainer of a professional boxer, kickboxer, or  
             matrial arts athlete to be licensed by the Commission as a  
             professional trainer, and shall possess a minimum of five  
             years' experience in combative sports.

          12)Authorizes licensed professional trainers to make  
             recommendations to the Commission as to whether or not a  
             contestant is prepared for his or her first amateur mixed  
             martial arts bout, or his or her first professional contest  
             in boxing, kickboxing, or mixed martial arts; further  
             requires the licensed professional trainer to be present in  
             the corner of the contestant unless otherwise authorized.  

          13)Requires a licensed professional trainer, fighter, boxer,  
             second, or manager to report an injury or knockout to the  
             Commission and to a database designated by the Commission, as  
             specified.  

          14)Provides that the administrative costs associated with  
             managing and distributing the neurological examination  
             account shall be limited to no more than twenty percent of  
             the prior year's contributions.

          15)Authorizes the Commission to use moneys from the neurological  
             examination account, upon appropriation by the Legislature,  
             to fund special neurological examinations and new diagnostic  
             imaging and testing, as specified.









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          16)Deletes existing clinic attendance requirements for referees  
             and physicians, and instead requires referees and physicians  
             assigned to a boxing contest to complete a clinic 

          17)Recasts provisions related to the clinic attendance  
             requirements for referees and physicians assigned to a boxing  
             contest, including deleting a provision authorizing the  
             Commission to pay travel expenses of clinic participants,  
             authorizing the clinic provider to charge a reasonable fee  
             for participation, and clarifying that the Commission may  
             offer the clinic.  

          18)Provides that the application and renewal fee for a licensed  
             professional trainer shall be $200.

          19)Authorizes the Commission to charge a $20 fee to issue  
             Federal Identification Cards and provides that cards shall be  
             reissued once every four years.

          20)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 the Commission with a proper accounting of the event,  
             including payment of specified fees.

          21)Modifies the reporting requirement for the fiscal impact of  
             the $100,000 limit on contests and wrestling exhibitions so  
             that the report is made to the Legislature during its next  
             sunset review. 

          22)Deletes conditional fee provisions related to the Boxers'  
             Pension Fund that are now obsolete.

          23)Raises the minimum fee collected by the Commission for an  
             amateur contest or exhibition from $500 to $1,000, and sets  
             the minimum fee for a professional contest or exhibition at  
             $1,250.

          24)Raises the maximum fee on broadcasting or television rights  
             collected by the Commission from $25,000 to $35,000, as  
             specified.

          25)Limits the maximum percentage of administrative costs  
             associated with investing, managing and distributing the  
             Boxers' Pension Fund to two percent (2%) of the corpus of the  








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             fund.

          26)States that no reimbursement is required 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, or changes the  
             definition of a crime.

          27)Makes various other technical and clarifying changes.

           EXISTING FEDERAL LAW  prohibits, pursuant to the Muhammad Ali  
          Boxing Reform Act (Federal Boxing Act), 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.  (15 U.S.C.  6303) 

           EXISTING STATE LAW  :

          1)Provides, pursuant to the Boxing Act, or State Athletic  
            Commission Act (State Act), for the licensing and regulation  
            of boxers, kickboxers, martial arts athletes and events held  
            in California by the Commission within the Department of  
            Consumer Affairs (DCA) and makes the Commission inoperative  
            and repealed on January 1, 2014. (Business and Professions  
            Code (BPC) Section 18600, et seq.)

          2)Provides that the Commission is comprised of seven members,  
            five members appointed by the Governor and subject to  
            confirmation by the Senate Committee on Rules confirmation,  
            one member appointed by the Senate Committee on Rules and one  
            member appointed by the Speaker of the Assembly.  Specifies  
            that efforts should be made to ensure at least four members  
            have experience in either medicine as a licensed physician or  
            surgeon specializing in neurology, neurosurgery, head trauma  
            or sports medicine, financial management, public safety, and  
            the sports regulated by the Commission.  (BPC 18602)

          3)Provides that protection of the public shall be the highest  
            priority for the Commission 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.  (BPC 18602.1)









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          4)Provides that 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 and that only a natural person  
            may be licensed as a boxer and martial arts fighter.  (BPC  
            18642)

          5)Provides that 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.  Requires  
            the Commission to review the performance of any such club or  
            organization annually.  Requires the Commission 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.  (BPC 18646)

          6)Provides that no person shall conduct or operate a  
            professional boxers' training gymnasium unless he or she has a  
            license issued by the Commission under this chapter.  (BPC  
            18653 & 18654)

          7)Requires athletes to undergo a physical examination by a  
            physician prior to a contest and requires a physician to  
            certify in writing the contestant's physical condition to  
            engage in the contest or match. Requires a contestant to  
            complete a questionnaire on which he or she discloses any  
            conditions of which the contestant is aware, including  
            pregnancy.  States if any specified condition is disclosed,  
            the physician shall not allow the contestant to compete unless  
            the physician or the contestant's personal physician, who is  
            licensed to practice medicine in the U.S., 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.  (BPC 18706)

          8)Provides that the Commission 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  








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            contestant licensed by the Commission 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 the Commission,  
            and may cover all costs associated with the examinations. (BPC  
            18711)

          9)Provides that no referee or physician 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.  Specifies that 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.  Authorizes the Commission  
            to pay any necessary and authorized travel expenses of  
            referees and physicians who attend such clinics.  (BPC 18731)

          10)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 the Commission with proper  
            accounting and payment.  (BPC 18824 (a)) 

          11)Establishes a fee of five percent (5%) of the amount paid for  
            admission to the contest or wrestling exhibition, not to  
            exceed the amount of one hundred thousand dollars ($100,000)  
            to be paid to the Commission by every person who conducts a  
            contest or wrestling exhibition for which admission is charged  
            and received.  Requires the Commission to provide a 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.  States that 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.  Establishes a fee of up  
            to five percent for the sale, lease, or other exploitation of  
            broadcasting or television rights thereof to be paid to the  
            Commission by every person who conducts a contest or wrestling  
            exhibition, with the minimum fee being one thousand dollars  
            ($1,000) and the maximum being twenty-five thousand dollars  








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            ($25,000).  (BPC 18824) 

          12)Establishes requirements for promoters to pay into the  
            Pension Fund.  States that the Pension Fund is a retirement  
            fund and provides that no more than 20 percent (20%) of the  
            annual contribution in the previous two years shall be used  
            for administrative costs associated with investing, managing  
            and distributing the Pension Fund.  (BPC 18882)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of this bill  . This bill would extend the sunset date  
            of the Commission by two years to 2016, and enact financial  
            reforms that include fee updates and spending restrictions to  
            ensure the financial sustainability of the Commission, which  
            nearly went bankrupt in 2012. The bill also deletes the  
            training gymnasium license, creates a professional trainer's  
            license, and expands the Commission's authority to delegate  
            and revoke regulatory oversight of amateur contests.  The  
            contents of this bill are the result of the 2013 joint sunset  
            review process, and are without opposition.  This bill is  
            author-sponsored.
           
           2)Author's statement  .  According to the author, "This bill is  
            necessary to extend the sunset date of the Commission in order  
            to continue the regulation of boxing, kickboxing and MMA  
            [mixed martial arts] in California.  The continued regulation  
            will help to ensure that the Commission's mission of  
            protecting the public is in place for an additional [two]  
            years.  

            "There have been concerns raised for the past number of years  
            about significant and ongoing problems with the way this  
            Commission does business but that in order to ensure the  
            protection, health, welfare and safety of the athletes and  
            fighters licensed by the Commission who participate in sports  
            and events the Commission oversees, the Commission should  
            continue to operate.  Federal Law, the Muhammad Ali Boxing  
            Reform Act (Boxing 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,  








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            in addition to added revenue for the state and a boon to the  
            local economy where events take place."    

           3)About the California State Athletic Commission  . The Commission  
            is responsible for protecting the health and safety of its  
            licensees: boxers, kickboxers and martial arts athletes.   
            Established by initiative in 1924, the Commission provides  
            direction, management, control of and jurisdiction over  
            professional and amateur boxing, professional and amateur  
            kickboxing, 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.  The  
            Commission oversees licensing, prohibited substance testing,  
            and event regulation.  Functionally, the Commission consists  
            of four components; licensing, enforcement, regulating events  
            and administering a pension fund.  

             The Commission is responsible for implementation and  
             enforcement of the Federal Muhammad Ali Boxing Reform Act  
             (Federal Boxing Act) and the California Boxing Act or State  
             Athletic Commission Act (State Act).  The Commission  
             establishes requirements for licensure, issues and renews  
             licenses, approves and regulates events, assigns ringside  
             officials, investigates complaints received, and enforces  
             applicable laws by issuing fines and suspending or revoking  
             licenses.  In 2012, the Commission supervised close to 200  
             events.  The Commission licenses a number of individuals  
             related to the participation in, oversight for and management  
             of events in California. 

             The Commission is comprised of seven members appointed by the  
             Governor, Senate and Assembly.  The Commission meets roughly  
             six times per year, and is subject to the Bagley-Keene Open  
             Meeting Act. The Commission is funded by regulatory and  
             license fees, including capped percentages of "gate fees" and  
             "TV fees" for regulated events.  Its budget authority for  
             FY2012-13 was $1.939 million, although its FY 2014-15 budget  
             is less than $1.2 million. 

           4)The sunset review process  .  A "sunset review" is essentially a  
            performance review of a government entity, usually driven by  
            the statutory expiration date of that's entity's authority to  
            operate.  The review focuses on how well the entity is  
            performing relative to its goals, considering its  
            cost-effectiveness and measuring its successes and failures.  








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          As a result of the sunset review process, which includes the  
            production of a detailed report noting problems and  
            suggestions for change as well as a public hearing, the  
            Legislature may choose to let the entity expire, or extend its  
            sunset date for a period of time (usually for four years)  
            often in conjunction with other legislative reforms.  Sunset  
            review is traditionally conducted jointly by the Senate  
            Business, Professions & Economic Development (BPED) and  
            Assembly Business, Professions and Consumer Protection  
            Committees. 

          In April 2013, this Committee, BPED, and other committees  
            conducted joint oversight hearings to review 15 regulatory  
            boards within the DCA, including the Commission.  This bill is  
            intended to implement some of the legislative changes to the  
            Commission recommended in BPED's staff report and discussed in  
            the public hearing.  The Commission's last sunset review was  
            in 2011.  

           5)Prior problems with the Commission; prior BSA audit findings  .  
            After the reconstitution of the Commission in 2007 and its  
            2011 sunset review, reports of problems with the Commission  
            continued to be raised, the most substantial stemming from the  
            Commission's near bankruptcy in 2012.  As a result, a solvency  
            plan based on a combination of measures to reduce expenditures  
            and increase revenues was put into place and a new Executive  
            Officer was hired in November 2012.

          The Bureau of State Audits (BSA) reported on improper  
            governmental activities by agencies and employees of the state  
            in 2012, highlighting overpayment by the Commission to 18  
            part-time field inspector staff totaling $118,700 from January  
            2009 through December 2010, because it inappropriately paid  
            them an hourly overtime rate rather than an hourly  
            straight-time rate for work they performed.  BSA completed a  
            subsequent review of the Commission in response to a request  
            by the Joint Legislative Audit Committee (JLAC) in June 2012,  
            the results of which are contained in a report published March  
            2013 "State Athletic Commission:  Its Ongoing Administrative  
            Struggles Call Its Future Into Question".  

          The 2013 BSA report found that: (1) the Commission's solvency  
            plan may not be practical; (2) the Commission does not track  
            information about projected revenue and expenditures in a  








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            manner conducive to proper budgeting; (3) the Commission does  
            not receive all of the revenue due from events and athletes;  
            (4) inspectors may not perform necessary health and safety  
            regulatory functions at events; and, (5) the Pension Fund is  
            still not administered properly.  Simultaneously, the DCA  
            conducted an internal audit of the Commission, which found  
            numerous deficiencies in Commission operations, particularly  
            those related to event regulation and revenue reconciling for  
            events.   

           6)Recent improvements at the Commission  .  Since the 2011 sunset  
            review of the Commission, a number of administrative  
            improvements have been made, primarily since November 2012  
            when the Commission hired a new Executive Officer. 
            
            Those improvements include: increasing outreach to retired  
            boxers eligible to draw from the Pension Fund; completing a  
            strategic plan for 2013-15; improving standardized cash  
            handling procedures; creating standard operating procedures in  
            an administrative manual for field staff; holding and tracking  
            inspector trainings; instituting a more efficient system for  
            assigning staff to events; issuing required federal ID's to  
            athletes prior to events; and issuing laptops to field staff  
            to improve eligibility compliance and information processing.   
     

           7)Remaining issues raised by the 2013 sunset review process  .   
            Despite recent improvements, many concerns remain unresolved  
            and new issues have arisen. The 2013 sunset review report on  
            the Commission outlined twenty-one separate issues for  
            discussion by the participating committees.

          The major issues raised in the 2013 sunset report are:

              a)   Budget problems, use of existing funds and financial  
               sustainability  .  The Commission is funded through  
               regulatory and license fees, including fees based on event  
               receipts from ticket sales and television broadcasting  
               rights.  In June 2012, the DCA budget staff reported to  
               Commission members that it faced a deficit of nearly  
               $700,000 by the end of FY 2013.  

             The Commission is currently operating according to a solvency  
               plan implemented in 2012 to address its significant budget  
               shortfall, however, this plan may not be feasible in the  








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               long term because the Commission is authorized to spend  
               less than $1.2 million in FY 2014/15.  Substantial cuts to  
               the Commission budget may be impacting its ability to  
               protect fighters and effectively regulate the sports within  
               its jurisdiction: budget cuts have led to layoffs, fewer  
               inspectors at regulated events and numerous executive  
               management vacancies.  

             It has been difficult for the Commission to adequately  
               predict revenues over time in the manner that other  
               licensing boards do, given the fluid nature of the  
               Commission licensing revenues and fluctuations in the  
               sports that may dictate when events do or do not take  
               place. In order to ensure that the Commission has the  
               resources to safely monitor events and uses those funds  
               appropriately, this bill would increase certain licensing  
               and event fees, and limit the administrative costs that may  
               be charged to certain funds:

               i)     Impose a $20 fee once every four years on athletes  
                 for the Commission to issue a federal ID card.  The  
                 Commission contends that this fee is actually less than  
                 the cost of issuance, but sufficient to deter athletes  
                 from carelessly losing and replacing the cards. 
               ii)    Limit the administrative costs associated with  
                 managing and distributing the neurological examination  
                 account to no more than twenty percent of the prior  
                 year's contributions.
               iii)   Grant authority to the Commission to contract with a  
                 third party to conduct training sessions for officials  
                 and clarify that the third party may charge attendees a  
                 fee, while removing the authority of the Commission  to  
                 pay necessary travel expenses of referees and physicians  
                 who attend such clinics.
               iv)    Raise the minimum fee collected by the Commission  
                 for an amateur contest or exhibition from $500 to $1,000,  
                 and specify that the minimum fee due to the Commission  
                 for a professional event is $1,250.  According to the  
                 author, these fees are viewed as a modest increase with  
                 industry support, and are aimed to help improve the  
                 Commission's finances so it can continue regulating  
                 contests properly.  A more precise analysis of actual  
                 costs will be undertaken by the Commission in the future.  

               v)     Raise the maximum limit for fees on broadcasting or  








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                 television rights that may be collected by the Commission  
                 from $25,000 to $35,000.  According to the author, this  
                 fee is the lowest, or equal to the lowest, such  
                 regulatory fee in the nation, meaning that the fee  
                 increase enacted by this bill should not change the  
                 incentive promoters have to hold events in California.   
               vi)    Limit the administrative costs associated with  
                 investing, managing and distributing the Pension Fund to  
                 two percent (2%) of the corpus of the fund.

              b)   Accountability in training of professional athletes  .   
               Current law requires the Commission to oversee licensed  
               fighters and the individuals that train them.  The State  
               Act requires that a professional boxer only spar with an  
               individual possessing a sparring permit, and that gyms  
               track sparring and report it to the Commission.  The  
               Commission reported in its Sunset Report that the  
               requirement for approval of, and reporting from, a sparring  
               partner is unique to California and is not practical.  This  
               requirement has not historically been complied with in  
               California, and may be impossible for the Commission to  
               enforce given its current resources.  

             Instead, the Commission has recommended that it instead  
               monitor professional trainers as a new licensing category.   
               The Professional Trainer would be licensed by the  
               Commission, pay a fee, and would have to sign off on the  
               application of any professional fighter making his or her  
               debut.  This additional accountability measure would allow  
               the Commission to evaluate possible poor performance of the  
               fighter and take action against not only the fighter but  
               also the Professional Trainer associated with that fighter.  
                

             Accordingly, this bill would:
               i)     Delete the professional boxers' training gymnasium  
                 license, and related requirements for owners or operators  
                 of such gymnasiums.
               ii)    Institute a professional trainer's license with a  
                 $200 licensing fee and establish accountability measures  
                 for professional trainers to report an athlete injury to  
                 the Commission prior to a bout.       

              c)   Delegation of Commission authority for overseeing  
               amateur sports.   The Commission has the "sole direction,  








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               management, control of, and jurisdiction over all  
               professional and amateur boxing, professional and amateur  
               kickboxing, all forms and combinations of forms of full  
               contact martial arts contests, including mixed martial  
               arts, and matches or exhibitions conducted, held, or given  
               within this state".  Current law allows the Commission to  
               delegate its authority to oversee amateur sports to a  
               qualified nonprofit organization if the Commission  
               determines that the nonprofit "meets or exceeds the safety  
               and fairness standards of the Commission."  Many  
               sanctioning outfits are actually for-profit organizations  
               but often have national or international authority over a  
               particular sport.  California is unique in requiring that a  
               delegated authority have nonprofit status.  
                
                The Commission has delegated its regulatory oversight  
               responsibilities for amateur boxing and MMA to two  
               different nonprofit organizations; USA Boxing, Inc., and  
               the California Amateur Mixed Martial Arts Organization  
               (CAMO), respectively.

               There have been several issues with USA Boxing that raised  
               some concern regarding the oversight of amateur boxing.  In  
               2009, the Commission suspended USA Boxing's authorization  
               to regulate amateur boxing for three weeks in response to  
               media reports of improprieties including underage alcohol  
               consumption and gambling at USA Boxing sanctioned events,  
               and concern for the health and safety of amateur athletes.   
               That delegation was reinstated after the Commission staff  
               negotiated stricter requirements regarding safety,  
               background checks, reporting and record keeping.  The  
               Commission voted to place USA Boxing on probation until  
               June 2010.  In 2013, the Commission informed USA Boxing  
               that it would be randomly assigning Commission inspectors  
               to USA Boxing sanctioned events to ensure regulatory  
               compliance and safety at those events.

               Issues regarding delegated oversight of MMA have been  
               raised as well.  For example, when CAMO was first created  
               and received authority from the Commission to oversee  
               amateur MMA, CAMO founders reported that there was no  
               consensus on safety standards for amateur MMA and that it  
               was unnecessary and even dangerous for the fighters to wear  
               headgear. According to the author, the Commission never  
               adopted regulations to clearly outline the difference  








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               between professional and amateur regulations prior to  
               delegating its authority, and even struggled with the  
               definition of what constitutes "full contact" and should  
               therefore be regulated.  

               While CAMO presented substantial regulations and clear  
               standards for the components necessary to oversee amateur  
               MMA, the author is concerned that the Commission had not  
               yet developed comprehensive standards, or even fully  
               considered the viewpoints of all major stakeholders, when  
               it delegated oversight authority to CAMO.  Moreover, the  
               licensing fee structure established by CAMO exceeds any of  
               the fees collected by the Commission.  In fact, many groups  
               determined to be under CAMO's regulatory authority oppose  
               its fee structure, stating that its high fees are  
               prohibitive for certain events.  

               BSA has also reported that the Commission may be able to  
               generate operating revenue by regulating amateur MMA itself  
               rather than delegating its authority to CAMO.  

               The author believes that the Commission's authority needs  
               to be updated to ensure that it has the ability to suspend  
               or replace organizations it selects to oversee and  
               administer amateur events. Accordingly, this bill would:

               i)     Clarify that a "sanctioning body" is one of the  
                 eligible organizations to which the Commission may  
                 delegate its authority for oversight of amateur sports,  
                 and authorizes the Commission to revoke the authority for  
                 a previously authorized nonprofit club, organization or  
                 sanctioning body to administer its rules for amateur  
                 boxing, wrestling, and full contact martial arts  
                 contests.  

              d)   Limited sunset extension  .  Taking into consideration the  
               severity of the problems encountered in the recent past  
               with the Commission and the strong improvement it has shown  
               since November 2012, and in light of the many changes  
               recommended as a result of the sunset review process and  
               the issues that remain unresolved, the author has adopted a  
               limited sunset extension of two years for the Commission  
               and its Executive Officer.  This would allow the Commission  
               to continue its work, but with the certainty that the  
               Legislature will review its performance in 2015 to ensure  








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               that the improvement continues or else it will take other  
               appropriate action. 

           8)Arguments in support  .  The Center for Public Interest Law  
            (CPIL), , writes "CPIL has closely monitored the Commission's  
            many woes over the past several years - specifically, multiple  
            sunset reviews and reconstitution of the Commission's  
            membership in 2007, numerous external audits whose  
            recommendations have gone unheeded, its impending insolvency  
            approximately one year ago, and very critical audits released  
            earlier this year by the Bureau of State Audits (BSA) and  
            [DCA], not to mention [the Senate Business, Professions and  
            Economic Development Committee's] background paper during the  
            Commission's sunset review hearing in April 2013. A year ago,  
            CPIL would not have supported extension of this Commission  
            under its prior staff leadership. The Commission's precarious  
            financial condition, coupled with the BSA and DCA audits,  
            called into question the ability of the Commission and its  
            staff to handle even the most basic and ministerial duties  
            effectively and efficiently. 

          "However, new Commissioner Executive Officer Andy Foster has  
            made many changes to the Commission's procedures on a number  
            of levels. Among many other changes, the Commission - under  
            Mr. Foster's leadership - now tracks specific event revenues  
            and expenses to show how much money is made or lost per event;  
            has balanced its 2012-13 budget and is working on a long-term  
            financial plan to ensure solvency; has reduced the number of  
            athletic inspectors who attend each match, and assigned them  
            based on their location and the location of the match to  
            reduce travel costs; and held two training sessions for  
            athletic inspectors. In a very short time, Mr. Foster has  
            decisively addressed significant shortcomings in many areas,  
            and we believe he deserves a chance to continue to tackle the  
            deficiencies identified by BSA and DCA?.[W]e will take a  
            position on the bill later in the summer should circumstances  
            warrant. However, we wanted you to know of our support for the  
            Commission's continued existence under the leadership of Andy  
            Foster."  

          According to promoter Roy Englebrecht Promotions/Fight Club OC,  
            "As one of the longest stakeholders in the CSAC, I have  
            watch[ed] the ups and a lot of the downs that have existed  
            over the past 20 years. But I have NEVER been more excited and  
            pleased to see the tremendous change that has come to CSAC  








                                                                  SB 309
                                                                 Page  16

            since the hiring of Executive Officer Andy Foster nearly one  
            year ago. For the first time in many years, I am proud to be a  
            fight promoter in California, and realize that the future of  
            our sport and the business that I love is finally heading in  
            the right direction under Andy Foster. Thank you for your  
            support and vote in favor of SB 309."

           9)Double-referral  .  This bill was previously heard by the  
            Assembly Arts, Entertainment, Sports, Tourism and Internet  
            Media Committee on June 25, 2013, and passed out on a 6-0  
            vote.

           10)Previous legislation  . SB 543 (Price, Chapter 448, Statutes of  
            2011) extended the Commission's sunset date for two years,  
            from January 1, 2012 to January 1, 2014.

          AB 2100 (Alejo) of 2012 would have required that the Commission  
            establish and enforce, in consultation with the Association of  
            Boxing Commissioners, a professional code of conduct in  
            relation to mixed martial arts contestants, and that persons  
            seeking payment as promoters must make specified disclosures  
            to the Commission prior to being compensated.  AB 2100 failed  
            passage in the Assembly Appropriations Committee.  

          SB 294 (Negrete McLeod) (Chapter 695, Statutes of 2010) extended  
            the Commission's sunset date for one year, from January 1,  
            2011 to January 1, 2012.

          SB 963 (Ridley-Thomas) (Chapter 385, Statutes of 2008) extended  
            the Commission's sunset date for two years, from July 1, 2009  
            to January 1, 2011.  

          SB 247 (Perata) (Chapter 465, Statutes of 2006) reconstituted  
            the Commission on January 1, 2007 as an independent board  
            through July 1, 2009, following its sunset in July 2006.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Center for Public Interest Law (CPIL) 
          Roy Englebrecht Promotions/ Fight Club OC

           Opposition 
           








                                                                  SB 309
                                                                  Page  17

          None on file. 

           Analysis Prepared by  :    Hank Dempsey / B.,P. & C.P. / (916)  
          319-3301