BILL ANALYSIS Ó
SB 469
Page 1
Date of Hearing: July 7, 2015
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Susan Bonilla, Chair
SB 469(Hill) - As Amended June 1, 2015
NOTE: This bill was double referred, having been previously
heard by the Assembly Committee on Arts, Entertainment, Sports,
Tourism, and Internet Media on June 30, 2015, and approved on a
6-0 vote.
SENATE VOTE: 40-0
SUBJECT: State Athletic Commission.
SUMMARY: Extends the operation of the California State Athletic
Commission (CSAC) until January 1, 2020 and implements the
CSAC's sunset review oversight hearing recommendations,
including authority for drug testing and fines, the authority to
recover arbitration costs, and other technical and clarifying
changes.
EXISTING LAW:
1)Establishes, until January 1, 2016, the California State
Athletic Commission (CSAC) within the Department of Consumer
Affairs (DCA) to license and regulate boxers, kickboxers,
martial arts athletes, and events held in California.
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(Business and Professions Code (BPC) § 18600 - 18887)
2)Establishes an Advisory Committee on Medical and Safety
Standards within CSAC as follows: (BPC § 18645)
a) The committee consists of six licensed physicians and
surgeons appointed by the CSAC;
b) The CSAC may call meetings of the committee at times and
places as it deems appropriate for the purpose of studying
and recommending medical and safety standards for the
conduct of boxing, wrestling, and martial arts contests;
and,
c) Appointing a person to the committee requires a majority
vote of the CSAC. Each appointment is at the pleasure of
the CSAC for a term not to exceed four years.
3)Authorizes the CSAC, its executive officer, or the executive
officer's duly authorized representative to assess fines not
to exceed two thousand five hundred dollars ($2,500) for each
violation of any of the provisions of the Boxing Act or any of
the CSAC's rules and regulations. Fines may be assessed
without advance hearing, but the licensee may apply to the
CSAC for a hearing on the matter if the fine should be
modified or set aside. The application for a hearing must be
in writing and must be received by the CSAC within 30 days
after service of notice of the fine. Upon receipt of the
written request, the CSAC must set the matter for hearing
within 30 days. (BPC § 18843)
4)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, California Code of Regulations (CCR) § 303)
THIS BILL:
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5)Extends the operation of the CSAC until January 1, 2020.
6)Provides that a majority of the appointed members of the CSAC
Advisory Committee constitutes a quorum for the purposes of
meeting.
7)Prohibits the administration or use of any drugs, alcohol,
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 adopted by the World
Anti-Doping Agency, by a professional or amateur boxer or
martial arts fighter licensed by the CSAC.
8)Authorizes the CSAC, in its discretion and pursuant to
regulations adopted pursuant to the Administrative Procedure
Act (Chapter 3.5 (commencing with § 11340) of Part 1 of
Division 3 of Title 2 of the Government Code), to determine
the necessity of exemptions to the use of a prohibited
substance for licensees.
9)Authorizes the CSAC to conduct testing at any time during the
period of licensure for a professional or amateur boxer or
martial arts fighter licensed by the CSAC.
10)
Authorizes the CSAC to collect blood and urine specimens from a
professional or amateur boxer or martial arts fighter licensed
by the CSAC to detect the presence of any prohibited
substances. Collection of specimens must be done in the
presence of authorized CSAC personnel.
11)
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Provides that a professional or amateur boxer or martial arts
fighter licensed by the CSAC, for which the presence of a
prohibited substance is detected through testing by the CASC,
is subject to penalties under the Boxing Act.
12)
Authorizes the CSAC to additionally assess a fine equal to 40
percent of the total purse for a violation of related to the
use of prohibited substances.
13)
Requires the CSAC to recognize and enforce contracts between
boxers or martial arts fighters and managers and between
boxers or martial arts fighters and licensed clubs. Contracts
must be executed on printed forms approved by the commission.
The CSAC may recognize or enforce a contract not on its
printed form if entered into in another jurisdiction. No
other contract or agreement may be recognized or enforced by
the CSAC. All disputes between the parties to the contract,
including the validity of the contract, must be arbitrated by
the CSAC pursuant to the provisions of the contract. Subject
to 4 CCR § 227, a person who seeks arbitration of a contract
must send a written request to the CSAC's headquarters and to
the office of the Attorney General. The CSAC may seek cost
recovery related to arbitration proceedings from the parties
to the proceedings.
14)
Makes other technical and non-substantive changes.
15) Provides
that no reimbursement is required by this bill pursuant to § 6
of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
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because this act creates a new crime or infraction, eliminates
a crime or infraction, or changes the penalt16) y for a
crime or infraction, within the meaning of § 17556 of the
Government Code, or changes the definition of a crime within
the meaning of § 6 of Article XIII B of
the California Constitution.
FISCAL EFFECT: According to the Senate Appropriations Committee
analysis dated May 28, 2015, this bill has projected
expenditures of approximately $1.6 million annually, supporting
10.7 PY, until January 1, 2020, fully offset by annual fee
revenues of approximately $1.7 million. It will have 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. There are also estimated one-time costs of up to $50,000
in 2015-16 to develop and adopt regulations providing for
exceptions to drug testing requirements. This bill will also
generate unknown increases in fine revenues for violations
related to the use of prohibited substances.
COMMENTS:
Purpose. This bill is author sponsored. According to the
author, "[this bill] in particular 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. 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.
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. While the Commission has faced some
administrative and front office challenges in the past, the real
work that they do, and do really well, is on the ground level at
the events. From the medical walk-through to checking the ring
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or cage to ensuring the fighter immediately undergoes a medical
exam to staff ensuring that a fighter gets paid on the spot;
this is where the Commission excels and it is important for
regulation of events to continue to ensure the highest degree of
safety for the many individuals participating in these sports."
Background. In March of this year, the Assembly Business and
Professions Committee and the Senate Business, Professions and
Economic Development Committee (Committees) conducted joint
oversight hearings to review 12 regulatory entities: California
Accountancy Board; California Architects Board and Landscape
Architects Committee; California State Athletic Commission;
Board of Barbering and Cosmetology; Cemetery and Funeral Bureau;
Contractors State License Board; Dental Board of California;
Board for Professional Engineers, Land Surveyors and Geologists;
Board of Registered Nursing; Bureau of Security and
Investigative Services and; Board of Vocational Nursing and
Psychiatric Technicians.
This bill is one of several sunset bills that are intended to
implement the legislative changes recommended by Committee
staff. The recommendations are reflected in the background
papers prepared by Committee staff for each agency and program
reviewed.
Medical Advisory Committee Quorum. It is currently unclear how
many Medical Advisory Committee members must be present for a
quorum. A quorum is required for governing bodies to meet and
conduct official business or take official action such as voting
on agenda items. Therefore, this bill clarifies that a majority
of the appointed members of the committee constitutes a quorum.
Use of Performance Enhancing Substances and Drug Testing Costs.
The CSAC's current fines ($2,500) may not be high enough to
deter the use of prohibited substances by professional fighters
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receiving high salaries. The CSAC has also struggled to
establish consistency in its citation and fine program,
sometimes assigning small fines to certain fighters for some
violations and large fines to others for similar violations.
Some athletes receive over six figures to participate in bouts,
and a $2,500 fine for use of a prohibited substance may not feel
like a penalty. The CSAC reports that having this option will
provide a greater level of deterrence for highly paid athletes.
Other states like Nevada take between three and 40 percent of a
fighter's purse for the event where the violation occurs.
Therefore, this bill codifies the CSAC's authority to conduct
drug testing. It also provides that the CSAC can provide
exemptions for the use of prohibited substances (arising out of
the issue of therapeutic exemptions for the medically necessary
use of a prohibited substance). To ensure proper deterrence and
the ability to recoup expenses for drug testing, this bill also
allows the commission to take 40 percent of a fighter's purse if
the fighter is caught using a banned substance.
Arbitration Cost Recovery. The CSAC is responsible for
arbitration between licensees and managers or promoters when
contract disputes arise. The CSAC absorbs costs related to
arbitration for contract disputes that it oversees that may
impede its ability to maintain a healthy fund balance.
The CSAC utilizes the services of the Attorney General (AG) to
conduct arbitration proceedings, but is then billed for the
services at a rate that is not feasible for the CSAC to pay on
an ongoing basis. The CSAC has exceeded its allotted AG
expenditure authority but is still required to assist fighters
through the process. The question was raised as to whether
parties involved should absorb certain costs, ensuring that any
payment for arbitration does not serve as a deterrent to
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licensees seeing arbitration.
As a result, this bill codifies the CSAC's existing authority to
recognize and enforce contracts between boxers and managers and
between boxers and licensed clubs and extends those provisions
to include martial arts fighters. This bill also clarifies that
all disputes between the parties to the contract, including the
validity of the contract, must be arbitrated by the Commission
pursuant to the provisions of the contract and authorizes the
Commission to seek cost recovery related to arbitration
proceedings.
Sunset Extension. While the CSAC has struggled with basic
operational and administrative functions in the past, the
current membership and management have shown a commitment to
improving the CSAC's efficiency and effectiveness and are
working cooperatively with the Legislature and the Committees to
bring about necessary changes. As a result, this bill extends
the operation of the CSAC until January 1, 2020.
Prior Related Legislation. SB 309 (Lieu), Chapter 370, Statutes
of 2013, extended the sunset date for the CSAC to January 1,
2016 and addressed issues raised during sunset review.
AMENDMENT:
To ensure the CSAC is able to use the new penalty for using a
prohibited substance up to 40 percent, the author should make
the following technical amendment:
Page 6, line 14, strike: "equal" and insert: up
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REGISTERED SUPPORT:
Ultimate Fighting Championship
REGISTERED OPPOSITION:
None on file.
Analysis Prepared by:Vincent Chee / B. & P. / (916) 319-3301