BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 469|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 469
Author: Hill (D)
Amended: 6/1/15
Vote: 21
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 8-0, 4/27/15
AYES: Hill, Bates, Block, Galgiani, Hernandez, Jackson,
Mendoza, Wieckowski
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: State Athletic CommissionState Athletic Commission.
SOURCE: Author
DIGEST: This bill extends the operation of the California State
Athletic Commission (Commission) until January 1, 2020, and
makes changes to the laws governing the Commission's operations
and the Commission's oversight of professional and amateur
boxing, professional and amateur kickboxing, all forms and
combinations of full contact martial arts contests, including
mixed martial arts and matches or exhibitions conducted, held or
given in California.
ANALYSIS:
Existing law:
SB 469
Page 2
1) Prohibits, under 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.
(Title 15 U.S.C. § 6303)
2) Provides, under the Federal 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 and makes the Commission inoperative and
repealed on January 1, 2016. (Business and Professions Code
(BPC) § 18600 et seq.)
3) Establishes, until January 1, 2016, the Commission, renders
the Commission subject to review by the appropriate policy
committees of the Legislature and authorizes the Commission
to appoint a person exempt from civil service as Executive
Officer (EO). (BPC §§ 18602 and 18613)
4) Provides the Commission with sole direction, 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 (MMA), and matches or
exhibitions conducted, held, or given within this state.
Provides that no event shall take place without the prior
approval of the Commission and that no person shall engage in
the promotion of, or participate in, a boxing or martial arts
contest, match, or exhibition without a license, and except
in accordance with the State Act. (BPC § 18640)
5) Establishes Commission oversight for contracts between
boxers and managers and between boxers or managers and
licensed clubs and requires the original contract entered
into between managers and boxers and promoters and boxers to
be placed on file with the Commission at the time it is
approved. Provides that all disputes between the parties to
the contract, including the validity of the contract, shall
be arbitrated pursuant to the provisions of the contract.
(Title 4 California Code of Regulations (CCR) §§ 220 and 230)
6) Establishes an Advisory Committee on Medical and Safety
SB 469
Page 3
Standards (MAC) consisting of six licensed physicians
appointed by the Commission which meets for the purpose of
studying and recommending medical and safety standards for
the conduct of boxing, wrestling, and martial arts contests.
Requires a majority vote of the Commission to appoint a
person to the MAC. (BPC § 18645)
7) Provides the Commission with enforcement authority to revoke
or suspend licenses or a violation of the State Act.
Authorizes the Commission to suspend temporarily, any license
until final determination by the Commission when, in the EO's
opinion, the action is necessary to protect the public
welfare or is in the best interest of boxing or martial arts.
Provides that a suspension may be without advance hearing,
but the suspended licensee may apply to the Commission for a
hearing on the matter to determine if the suspension should
be modified or set aside. Requires an application for a
hearing to be in writing and received by the Commission
within 30 days after the date of suspension. Requires the
Commission, upon receipt of such written request, to set the
matter for hearing within 30 days. (BPC §§ 18841 and 18842)
8) Authorizes the Commission, EO or his or her duly authorized
representative to assess fines, not to exceed $2,500, for
each violation of any of the provisions of the State Act or
any of the rules and regulations of the Commission (contained
within Title 4 CCR §200-829). States that the fine may be
assessed without advance hearing, but the licensee may apply
to the Commission for a hearing on the matter if such fine
should be modified or set aside in the manner outlined above.
(BPC § 18843)
9) Provides that if a licensee fails to pay any fine assessed
within 30 days after receipt of notice by the EO, after time
for appeal has passed or after action on an appeal by the
Commission, the Commission may, without hearing, revoke or
suspend the license held by the licensee and authorize the
Attorney General (AG) to bring an action in superior court to
collect the amount due and attorney's fees. Provides that
the action shall be speedily determined by the court and
shall take precedence over all matters pending therein except
criminal cases, applications for injunction, or other matters
to which special precedence has been given by law. (BPC §
18844)
SB 469
Page 4
10)Provides that any person who otherwise violates any
provision of the State Act is guilty of a misdemeanor. (BPC
§ 18878)
11)Provides that the administration or use of any drugs,
alcohol, or stimulants, or injections in any part of the
body, either before or during a match, to or by any boxer is
prohibited. (Title 4 CCR § 303)
This bill:
1) Extends the operation of the Commission until January 1,
2020.
2) Codifies the Commission's authority to conduct drug testing
necessary to promote the health and safety of licensees by
providing that the administration or use of any drugs,
alcohol or stimulants or injections in any part of the body
or the use of any prohibited substance specified in the
Prohibited List of the World Anti-Doping Code, as promulgated
by the World Anti-Doping Agency, by a professional or amateur
boxer or martial arts fighter licensed by the Commission, is
prohibited.
3) Authorizes the Commission, in its discretion and through the
rulemaking process, to determine the necessity of exemptions
to the prohibition on prohibited substances for certain
licensees.
4) Authorizes the Commission to conduct drug testing at any
time during the period of licensure for a professional or
amateur boxer or martial arts fighter licensed by the
Commission.
5) Authorizes the Commission to assess a fine equal to 40% of
the purse for a violation of the prohibited substances
provisions outlined above.
6) Clarifies that a majority of the appointed members of the
MAC constitute a quorum for the purposes of meeting.
7) Codifies the Commission's existing authority to recognize
and enforce contracts between boxers and managers and between
SB 469
Page 5
boxers and licensed clubs and extends those provisions to
include martial arts fighters. Clarifies that all disputes
between the parties to the contract, including the validity
of the contract, shall be arbitrated by the Commission
pursuant to the provisions of the contract. Authorizes the
Commission to seek cost recovery related to arbitration
proceedings.
Background
This bill is one of five "sunset bills" the author is sponsoring
this session. According to the author, this bill is necessary
to extend the sunset date of the Commission 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. According to the author,
the Federal 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, in
addition to added revenue for the state and a boon to the local
economy where events take place.
The Commission is responsible for protecting the health and
safety of its licensees: boxers, kickboxers, and other martial
arts athletes. The Commission, now comprised of seven members,
is also responsible for implementation and enforcement of the
Federal Boxing Act and the State Act. It provides direction,
management, and control for professional and amateur boxing,
professional and amateur kickboxing, and all forms and
combinations of full contact martial arts contests, including
MMA and matches or exhibitions conducted, held or given in
California. The Commission has four main functions: licensing,
enforcement, regulating events and administering the
Professional Boxers' Pension Fund. In 2014, the Commission
supervised 128 events. As of March 2015, the Commission has so
far supervised 38 events, including 18 boxing, eight MMA, one
kickboxing.
The Commission has direct disciplinary authority to issue
immediate suspensions and fines to ensure violations by
Commission licensees are handled and reported quickly. The
Commission also has the ability to issue cease and desist orders
SB 469
Page 6
for unauthorized, illegal events in addition to the suspensions
and license revocations for violations of the State Act and
accompanying Commission regulations and rules. The Commission
partners with the Office of the 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 agreements and
has sole authority over these arbitration proceedings. The
Commission's citation and fine option allows the Commission to
penalize licensees rather than pursue formal discipline for less
serious offenses, or offenses where probation or license
revocation is not appropriate.
The State Act creates the MAC consisting of six licensed
physicians who are appointed by the Commission. This is the
body the Commission looks to for guidance on key safety issues
and meets to study, discuss and recommend standards for
contests. This MAC rarely meets because of issues related to
how many people constitute a quorum for purposes of an open
meeting but should meet far more frequently, as these physicians
typically know the landscape of the fighting world and can help
the Commission better promote fighter health and safety.
Particularly with all of the new studies and research
documenting traumatic brain injury and technological advances to
assess these injuries, it is important for the Commission to
know what steps it may need to take to stay on top of licensee
health based on the advice of the MAC.
The Commission currently has one of the most thorough drug
testing programs in the regulated combat sports landscape, but
maintaining this important effort has high costs associated with
it. The Commission's cite and fine ability allows for
punishment to licensees for violations of the law that while
significant, may not be serious enough to warrant license
suspension. Fines are used as a penalty and are usually
accompanied by a suspension or order to correct conduct. They
are commonly issued against fighters for using prohibited
substances and conduct that brings discredit to combative sports
or the Commission. The Commission's current fines may not be
deterring certain activity and may not be strong enough to make
any kind of impact to professional fighters receiving high
salaries. The Commission has also struggled to establish
consistency in its citation and fine program, sometimes
assigning small fines to certain fighters for some violations
SB 469
Page 7
and large fines to others for similar violations. Some athletes
receive over six figures to participate in bouts, and paying a
$2500 fine for use of an illegal substance does not make a dent
in their earnings, thus potentially perpetuating use of the
banned drugs without any noticeable penalty. Making it clear in
the State Act, rather than just within the Commission's rules,
that using prohibited substances on the World Anti-Doping
Agency's prohibited list is also prohibited in California, while
also increasing the amount the Commission may assess for a
violation, serves to maintain the integrity of these bouts and
protect the participants. When a fighter uses performance
enhancing substances they can not only harm themselves but may
also do more damage to an opponent than they otherwise would
have and establishing deterrents to this practice assists the
Commission in fulfilling its oversight responsibilities.
The Commission is responsible for arbitration between licensees
and managers or promoters when contract disputes arise. The
Commission absorbs costs related to arbitration for contract
disputes that it oversees that may impede its ability to
maintain a healthy fund balance. The Commission utilizes the
services of the AG to conduct arbitration proceedings and is
then billed for these services at a rate that is not feasible
for the Commission to pay on an ongoing basis, as the Commission
has consistently exceeded its AG expenditure authority but at
the same time has a statutory requirement to assist fighters
through this process. This bill seeks to allow for cost
recovery while ensuring that any payment for arbitration does
not serve as a deterrent to licensees seeing arbitration by the
Commission.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Senate Appropriations Committee:
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
annually ongoing for .5 PY of staff time and expenses related
to additional drug tests. (Athletic Commission Fund)
SB 469
Page 8
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)
SUPPORT: (Verified6/1/15)
None received
OPPOSITION: (Verified6/1/15)
None received
Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104
6/1/15 16:23:45
**** END ****