BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 469 (Hill) - State Athletic Commission
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|Version: April 22, 2015 |Policy Vote: B., P. & E.D. 8 - |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: May 28, 2015 |Consultant: Mark McKenzie |
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SUSPENSE FILE. AS AMENDED.
Bill
Summary: SB 469 would extend the sunset on the California State
Athletic Commission (Commission) and the term of its executive
officer until January 1, 2020. The bill would also explicitly
authorize the Commission to conduct drug testing of licensees,
and to enforce contracts between fighters and managers and
between fighters and licensed clubs.
Fiscal Impact (as approved on May 28, 2015):
Projected expenditures of approximately $1.6 million annually
(primarily from the Athletic Commission Fund), supporting 10.7
PY, until January 1, 2020, fully offset by annual fee revenues
of approximately $1.7 million.
Costs of approximately $115,000 in 2016-17 and $107,000
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annually ongoing for .5 PY of staff time and expenses related
to additional drug tests. (Athletic Commission Fund)
Estimated one-time costs of up to $50,000 in 2015-16 to
develop and adopt regulations providing for exceptions to drug
testing requirements. (Athletic Commission Fund)
Unknown increases in fine revenues for violations related to
the use of prohibited substances. (Athletic Commission Fund)
Background: 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 either
another state's commission or on sovereign tribal land.
Existing state law, the Boxing Act, or State Athletic Commission
Act, provides for the licensing and regulation of boxers,
kickboxers, martial arts athletes, and events held in California
by the California State Athletic Commission within the
Department of Consumer Affairs (DCA), and sunsets the Commission
on January 1, 2016. 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 2014, the Commission
supervised 128 events, and has supervised over 40 so far in
2013.
The Commission is supported solely from licensing and regulatory
fees set in statute. In addition to licensing fees, the
Commission collects a "gate fee" from the event promoter, which
is a 5% fee on gross ticket sales for that event, not to exceed
$100,000, for each regulated event held in California. The
Commission also collects a "TV fee" from the event promoter if
the event is broadcast on television, which is a 5% fee on the
revenue a promoter collects from broadcasting rights, not to
exceed $35,000. The Commission receives over 70% of its revenue
from these fees.
As part of its disciplinary authority, the Commission partners
with the Attorney General's Office (AG) when license
revocations, suspension or application denials are appealed.
The Commission also conducts arbitrations for its licensees when
disputes arise within either the boxer-manager or boxer-promoter
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agreements and has sole authority over these arbitration
proceedings.
Proposed Law:
SB 469 would extend the sunset on the Commission and its
executive officer until January 1, 2020, and make the following
changes to the State Athletic Commission Act:
Prohibit the use of any drugs, alcohol, stimulants, or
injections, or the use of any prohibited substance specified
in the Prohibited List of the World Anti-Doping Code, by a
licensed professional or amateur boxer or martial arts
fighter.
Authorize the Commission to adopt regulations to provide for
exemptions to this prohibition for certain licensees.
Explicitly authorize the Commission to conduct drug testing of
licensees at any time, and to collect blood and urine
specimens to detect the presence of any prohibited substances.
Collection of specimens must occur in the presence of
Commission personnel.
Authorize the Commission to assess a fine equal to ___ percent
of the total purse for a violation related to the use of
prohibited substances.
Require the Commission to recognize and enforce contracts
between boxers or martial arts fighters and managers, and
between boxers or fighters and licensed clubs.
Require that all contract disputes be arbitrated by the
Commission, and authorize cost recovery from the parties
subject to the proceedings.
Clarify that a majority of the appointed members of the
Commission's Advisory Committee on Medical and Safety
Standards constitutes a quorum for purposes of meeting.
Related
Legislation: This bill is one of five measures introduced this
session by the Senate Business, Professions, and Economic
Development Committee to extend the sunset on licensing boards
within DCA - including SB 465 (Hill), SB 466 (Hill), SB 467
(Hill), and SB 468 (Hill). Five additional bills that extend
the sunset on DCA licensing boards and bureaus are being
considered by the Assembly this year.
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Staff
Comments: Staff notes approximately $1.7 million in licensing
and regulatory fees are projected to be deposited in the
Athletic Commission Fund in the current year and 2015-16 budget
year, which is more than adequate to support projected
expenditures of approximately $1.45 million from the Fund. The
Fund is expected to have a reserve of approximately $1 million
at the end of the 2015-16 fiscal year, which is sufficient to
support the additional expenditures related to this bill while
maintaining a healthy reserve for the duration of the sunset
period.
Recommended Amendments: The bill should be amended to fill in
the blank on page 6, line 16 to specify the percentage of the
total purse that would be a penalty for violations related to
the use of prohibited substances.
Author amendments (as adopted on May 28, 2015): Author's
amendments would specify that the Commission may assess a fine
of 40 percent of the total purse for violations related to the
use of prohibited substances.
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