BILL ANALYSIS                                                                                                                                                                                                    

                                                                     SB 469  

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          Date of Hearing:  August 19, 2015


                                 Jimmy Gomez, Chair

          SB 469  
          (Hill) - As Amended July 13, 2015

          |Policy       |Arts, Entertainment, Sports,   |Vote:|6 - 0        |
          |Committee:   |Tourism, and Internet Media    |     |             |
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          |             |Business and Professions       |     |14 - 0       |
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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   


          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  


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          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  

          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:


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          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.


          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)  


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