BILL ANALYSIS                                                                                                                                                                                                    



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          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,     |                    |








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          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Quirk, Rendon, |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          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.










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          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.









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          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  








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          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:                                             








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                          Dana Mitchell / A.,E.,S.,T., & I.M. / (916)  
                          319-3450                                          
            FN: 0001612