BILL ANALYSIS
Appropriations Committee Fiscal Summary
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| |AB 52 (Cedillo) |
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|Hearing Date: 8/7/2000 |Amended: 7/6/2000 |
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|Consultant: Maureen Brooks |Policy Vote: B. & P. 6-1 |
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BILL SUMMARY: AB 52 limits the fee that promoters of
boxing events must pay to the state to $50,000 and provides
that if the fee exceeds $35,000, one-half of the amount
over $35,000 will go to the Boxers' Pension Account. These
provisions will sunset January 1, 2006 and the Athletic
Commission must report to the Legislature by December 31,
2004 on the impact on Commission revenues and the Boxer's
Pension Account as a result of AB 52.
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02
2002-03 Fund
Boxing fee --------unknown revenue or loss-----------
General
STAFF COMMENTS: This bill may meet the criteria to be
placed on the Suspense file if any fight is hosted in
California with ticket sales totaling more than $1 million.
The actual impact on the state will depend on the number
of boxing matches which will be held in California as a
result of the fee cap, compared with the bouts held in
California which would have been held here without the
passage of this bill.
Existing law requires promoters to pay a fee to the state
equal to 5% of the total amount paid for admission to
boxing events, and there is no cap. For example, if
admissions totaled $2 million, under current law the state
would receive 5% or $100,000. Under the provisions of AB
52, the State Athletic Commission would receive $42,500
(with an additional $7,500 put into the pension account),
therefore a revenue loss of $50,000 would result.
Several other states have fees less than California. New
York has a 3% fee with a $50,000 cap, New Jersey has a
$100,000 cap and Nevada has a 4% fee. Until earlier this
year when Oscar de la Hoya fought at Staples Center in Los
Angeles, California had not hosted a major title boxing
event in 26 years. However, that fight had ticket sales of
$8 million which provided the state with revenue of
$400,000. If AB 52 had been enacted, the state would have
received only $50,000.
Staff notes that an increasing number of fights held in
California are taking place on Indian Reservations. When
fights are held on reservations, the state does not receive
5% of ticket sales, but only a flat fee of $1,500. In
addition, there are no contributions made to the Boxers
Pension Fund and the rounds fought on Indian land do not
count toward the vesting requirements.
The Boxers Pension Account is supported by 88 cents per
ticket sold, up to a maximum of $4,600 per event. To date,
there is approximately $3 million in that fund and 400
vested boxers who will be eligible for benefits at age 55.