BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 469|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                UNFINISHED BUSINESS 


          Bill No:  SB 469
          Author:   Hill (D)
          Amended:  7/13/15  
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  8-0, 4/27/15
           AYES:  Hill, Bates, Block, Galgiani, Hernandez, Jackson,  
            Mendoza, Wieckowski
           NO VOTE RECORDED:  Berryhill

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SENATE FLOOR:  40-0, 6/2/15
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner,  
            Stone, Vidak, Wieckowski, Wolk

           ASSEMBLY FLOOR:  80-0, 8/31/15 - See last page for vote

           SUBJECT:   State Athletic Commission


          SOURCE:    Author

          DIGEST:   This bill extends the operation of the California  
          State Athletic Commission (Commission) until January 1, 2020 and  
          makes changes to the laws governing the Commission's operations  
          and the Commission's oversight of professional and amateur  
          boxing, professional and amateur kickboxing, all forms and  
          combinations of full contact martial arts contests, including  
          mixed martial arts and matches or exhibitions conducted, held or  








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          given in California.  

          Assembly Amendments are technical and clarifying.

          ANALYSIS:    Existing federal law, The Muhammad Ali Boxing  
          Reform Act (Federal Boxing 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.  (Title 15 U.S.C. § 6303) 

          Existing state law, the Boxing Act, or State Athletic Commission  
          Act (State Act), provides for the licensing and regulation of  
          boxers, kickboxers, martial arts athletes and events held in  
          California by the Commission within the Department of Consumer  
          Affairs and makes the Commission inoperative and repealed on  
          January 1, 2016.  (Business and Professions Code § 18600 et  
          seq.)

          This bill:

          1)Extends the operation of the Commission until January 1, 2020.  


          2)Codifies the Commission's authority to conduct drug testing  
            necessary to promote the health and safety of licensees by  
            providing that the administration or use of any drugs, alcohol  
            or 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 promulgated by the World  
            Anti-Doping Agency, by a professional or amateur boxer or  
            martial arts fighter licensed by the Commission, is  
            prohibited.  

          3)Authorizes the Commission, in its discretion and through the  
            rulemaking process, to determine the necessity of exemptions  
            to the prohibition on prohibited substances for certain  
            licensees.

          4)Authorizes 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 Commission. 









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          5)Authorizes the Commission to collect blood and urine specimens  
            from a professional or amateur boxer or martial arts fighter  
            licensed by the Commission in order to detect the presence of  
            any prohibited substances.  Requires collection of specimens  
            to be done in the presence of authorized Commission personnel.

          6)Authorizes the Commission to assess a fine up to 40% of the  
            purse for a violation of the prohibited substances provisions  
            outlined above.   

          7)Clarifies that a majority of the appointed members of the  
            Commission's Advisory Committee on Medical and Safety  
            Standards constitute a quorum for the purposes of meeting.

          8)Codifies the Commission'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.  Clarifies that all disputes  
            between the parties to the contract, including the validity of  
            the contract, shall be arbitrated by the Commission pursuant  
            to the provisions of the contract.  Authorizes the Commission  
            to seek cost recovery related to arbitration proceedings.

          Background
          
          In 2015, the Senate Business, Professions and Economic  
          Development Committee and the Assembly Business and Professions  
          Committee (Committees) conducted joint oversight hearings to  
          review 12 regulatory entities including the Commission.  This  
          bill is intended to implement legislative changes as recommended  
          by staff of the Committees reflected in a Background Paper on  
          the Commission, as well as the discussion stemming from an  
          oversight hearing on the Commission. 

          This bill 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.  The Federal Boxing 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  








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          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.  

          Concerned with athlete injuries and death, the public  
          established the Commission by initiative in 1924.  The  
          Commission is responsible for protecting the health and safety  
          of its licensees: boxers, kickboxers, and other martial arts  
          athletes.  The Commission, now comprised of seven members, is  
          also responsible for implementation and enforcement of the  
          Federal Boxing Act and the State Act.  It provides direction,  
          management, and control for professional and amateur boxing,  
          professional and amateur kickboxing, and all forms and  
          combinations of full contact martial arts contests, including  
          mixed martial arts and matches or exhibitions conducted, held or  
          given in California.  The Commission has four main functions:  
          licensing, enforcement, regulating events and administering the  
          Professional Boxers' Pension Fund (Pension Fund).  Specifically,  
          the Commission establishes requirements for licensure, issues  
          and renews licenses, approves and regulates events, assigns  
          ringside officials, investigates complaints received, and  
          enforces applicable laws by issuing fines and suspending or  
          revoking licenses. 

          During the review of the Commission, the following major issues  
          were discussed; recommendations for each issue comprise the  
          significant policy changes proposed in this bill to the State  
          Act and Commission operations.

          Medical Advisory Committee quorum.  Based on concerns that the  
          Commission's Advisory Committee on Medical and Safety Standards  
          (MAC) is not always able to establish a quorum based on member  
          vacancies, this bill clarifies that a majority of the appointed  
          members of the MAC constitute a quorum for the purposes of  
          ensuring that this key entity responsible for advising on  
          critical safety issues is able to meet regularly.  

          Technical changes to improve the effectiveness of the State Act  
          and Commission operations, use of performance enhancing  
          substances and drug testing costs.  The Commission currently has  
          one of the most thorough drug testing programs in the regulated  
          combat sports landscape, but maintaining this important effort  








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          has high costs associated with it.  It was determined that the  
          Commission's current fines may not be deterring certain activity  
          and may not be strong enough to make any kind of impact to  
          professional fighters receiving high salaries.  Some athletes  
          receive over six figures to participate in bouts, and paying a  
          $2,500 fine for use of an illegal substance does not make a dent  
          in their earnings, thus potentially perpetuating use of the  
          banned drugs without any noticeable penalty.  This bill enhances  
          the Commission's ability to conduct drug testing and authorizes  
          the Commission to assess a fine up to 40% of the total purse for  
          a violation of the prohibited substances provisions as a means  
          of deterring illegal substance use.

          Arbitration cost recovery. The Commission is responsible for  
          arbitration between licensees and managers or promoters when  
          contract disputes arise.  The Commission absorbs costs related  
          to arbitration for contract disputes that it oversees that may  
          impede its ability to maintain a healthy fund balance.  The  
          Commission utilizes the services of the Attorney General (AG) to  
          conduct arbitration proceedings and is then billed for these  
          services at a rate that is not feasible for the Commission to  
          pay on an ongoing basis.  The Commission has exceeded its AG  
          expenditure authority yet has a statutory requirement to assist  
          fighters through this process.  Based on a recommendation in the  
          Background Paper, this bill codifies the Commission'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, shall be arbitrated by  
          the Commission pursuant to the provisions of the contract and  
          authorizes the Commission to seek cost recovery related to  
          arbitration proceedings.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          According to the Assembly Committee on Appropriations, this bill  
          will require an additional one-half position, at an annual cost  
          of $55,000 to implement new requirements.  Based on an  
          assumption of 50 additional drug tests annually, the Committee  








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          estimated costs related to those provisions of this bill to be  
          around $60,000.  The Committee noted that the Commission  
          anticipates minor annual cost recovery from arbitrations.


          SUPPORT:   (Verified8/31/15)


          None received


          OPPOSITION:   (Verified8/31/15)


          None received

           ASSEMBLY FLOOR:  80-0, 8/31/15
           AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

          Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104
          8/31/15 18:03:11


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