BILL ANALYSIS Ó
SB 309
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Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 309 (Lieu) - As Amended: August 5, 2013
Policy Committee: Arts Vote: 6-0
B&P 14-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill extends the sunset date of the State Athletic
Commission and makes various changes to the commission's
authority, operations, and funding. Specifically, this bill:
1) Extends the sunset date of the Commission and its
executive officer by two years, to January 1, 2016.
2) Permits the commission to authorize sanctioning bodies
to administer its rules for amateur boxing, wrestling and
full contact martial arts contests, as specified, and to be
subject to annual performance review by the commission.
3) Requires the trainer of a professional boxer, kickboxer,
or matrial arts athlete to be licensed by the commission as
a professional trainer, and establishes a $200 license
application fee and renewal fee.
4) Authorizes the commission to charge a $20 fee to issue
Federal Identification Cards, and provides that cards shall
be reissued once every four years.
5) 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.
6) Raises the maximum fee on broadcasting or television
rights collected by the Commission from $25,000 to $35,000.
7) Limits the maximum percentage of administrative costs
SB 309
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associated with investing, managing and distributing the
Boxers' Pension Fund to two percent of the corpus of the
fund.
FISCAL EFFECT
1)Continues, for two years, special fund base expenditures of
$1.2 million (Athletic Commission Fund) supporting five
positions, offset by $1.4 million in revenues, based on the
2013-14 Budget Act. Additional ongoing costs of about $50,000
for of one-half position to administer the professional
trainers' licensing program.
2)Increased revenues totaling approximately $290,000 annually
(Athletic Commission Fund) from increased event fees,
trainers' licenses, and federal identification cards.
COMMENTS
1) Background and Purpose . Established by initiative in
1924, the commission is responsible for protecting the
health and safety of its licensees: boxers, kickboxers and
martial arts athletes. 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.
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 2012-13. The commission is
currently operating according to a solvency plan implemented
in 2012 to address this shortfall.
In April 2013, the Legislature conducted sunset reviews on 15
regulatory boards within the Department of Consumer Affairs,
including the commission. SB 309 is intended to implement
some of the legislative changes to the commission recommended
in a staff report done for this review and discussed in the
public hearing.
SB 309
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The bill extends the commission's sunset date by two years, to
2016, and enacts financial reforms, including fee updates and
spending restrictions to ensure the financial sustainability
of the commission. 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.
2) There is no opposition to this bill .
3)Prior Legislation . SB 543 (Price)/Chapter 448 of 2011,
extended the commission sunset date from January 1, 2012 to
January 1, 2014.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081