BILL ANALYSIS Ó SB 469 Page 1 Date of Hearing: August 19, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 469 (Hill) - As Amended July 13, 2015 ----------------------------------------------------------------- |Policy |Arts, Entertainment, Sports, |Vote:|6 - 0 | |Committee: |Tourism, and Internet Media | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Business and Professions | |14 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill extends the operation of the State Athletic Commission (CSAC), from January 1, 2016 until January 1, 2020, and implements the commission's sunset review oversight hearing SB 469 Page 2 recommendations, including: 1)Authorizing the commission, in its discretion and pursuant to regulations, to determine the necessity of exemptions to the use of a prohibited substance for licensees. 2)Authorizing 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 CSAC. 3)Authorizing the commission to collect blood and urine specimens from a licensed professional or amateur boxer or martial arts fighter to detect the presence of any prohibited substances. 4)Providing 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. 5)Authorizing the commission to additionally assess a fine of up to 40% of the total purse for a violation related to the use of prohibited substances. 6)Requires the commission to recognize and enforce contracts between boxers or martial arts fighters and managers and contracts between boxers or martial arts fighters and licensed clubs. All disputes between the parties to the contract, including the validity of the contract, must be arbitrated by the commission, which may seek cost recovery from the parties related to arbitration proceedings. FISCAL EFFECT: SB 469 Page 3 Extends, for four years, the commission's base expenditures-currently about $1.6 million and including 10.7 positions. An additional one-half position, at an annual cost of $55,000 will be needed to implement the additional requirements of this bill. [Athletic Commission Fund] Based on an assumption of 50 additional drug tests annually, costs will be about $60,000. The commission also anticipates minor annual cost recovery from arbitrations. COMMENTS: Background and Purpose. 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, including the Athletic Commission. This is one of several sunset bills 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. According to the analysis by the Assembly Business and Professions Committee, while the commission has struggled with basic operational and administrative functions in the past, the current membership and management have shown a commitment to improving the commission'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. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 SB 469 Page 4