BILL ANALYSIS Ó SB 469 Page 1 SENATE THIRD READING SB 469 (Hill) As Amended July 13, 2015 Majority vote SENATE VOTE: 40-0 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Arts |6-0 |Calderon, Obernolte, | | | | |Chu, Levine, Medina, | | | | |Nazarian | | | | | | | |----------------+-----+----------------------+--------------------| |Business & |14-0 |Bonilla, Jones, | | |Professions | |Baker, Bloom, Campos, | | | | |Chang, Dodd, Eggman, | | | | |Gatto, Holden, | | | | |Mullin, Ting, Wilk, | | | | |Wood | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Nazarian, Eggman, | | SB 469 Page 2 | | |Gallagher, Eduardo | | | | |Garcia, Holden, | | | | |Jones, Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ 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. Specifically, this bill: 1)Extends the operation of the CSAC until January 1, 2020. 2)Provides that a majority of the appointed members of the CSAC Advisory Committee constitutes a quorum for the purposes of meeting. 3)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. 4)Authorizes the CSAC, in its discretion and pursuant to regulations adopted pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 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. SB 469 Page 3 5)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. 6)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. 7)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. 8)Authorizes the CSAC to additionally assess a fine up to 40% of the total purse for a violation related to the use of prohibited substances. 9)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 California Code of Regulations Section 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. SB 469 Page 4 10)Makes other technical and non-substantive changes. 11) Provides that no reimbursement is required by this bill pursuant to Section 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 because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalt12) y for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. FISCAL EFFECT: According to the Assembly Appropriations Committee, 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: 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 SB 469 Page 5 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 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." In March of this year, the Assembly Business and Professions and Arts, Entertainment, Sports, Tourism and Internet Media Committees along with the Senate Business, Professions and Economic Development Committee (Committees) conducted a joint oversight hearing to review the California State Athletic Commission, in addition to various other state entities. This bill is one of several sunset bills that are intended to implement the legislative changes recommended by Committee staff arising from that process. The recommendations are reflected in the background papers prepared by Committee staff for each agency and program reviewed. 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. Please see the policy committee analysis for a full discussion of this bill. Analysis Prepared by: SB 469 Page 6 Dana Mitchell / A.,E.,S.,T., & I.M. / (916) 319-3450 FN: 0001612