BILL ANALYSIS
AB 52
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 52 (Cedillo)
As Amended August 18, 2000
Majority vote
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|ASSEMBLY: | |(June 1, 1999) |SENATE: |29-6 |(August 24, |
| | | | | |2000) |
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(vote not relevant)
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|COMMITTEE VOTE: |12-3 |(August 29, 2000) |RECOMMENDATION: |Concur |
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Original Committee Reference: Hum. S.
SUMMARY : Establishes a maximum fee on admission receipts paid
to the California Athletic Commission (commission) by promoters
for any one boxing contest.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Provide that the 5% fee be paid to the commission shall not
exceed $100,000 for any one boxing contest.
2)Provides that if the admission for any single boxing contest
exceeds $70,000, 50% of the amount in excess of $70,000 shall
be deposited in the Boxer's Pension Plan (plan), and 50% of
the amount in excess of $70,000 shall be paid to the
commission.
3)Sunsets the provisions of this bill as of January 1, 2006, and
requires the commission to report to the Legislature on the
impact and effect of the provisions of this bill by December
31, 2004.
EXISTING LAW :
1) Establishes the commission within the State Department of
Consumer
Affairs with responsibility to develop rules and regulations
governing boxing and martial arts.
AB 52
Page 2
2) Requires the promoter or other organization conducting a
boxing, kickboxing, martial arts, or wrestling contest to pay
the commission a fee of 5% of the amount actually paid for
admission to a contest, except that the fee may never be less
than $1,000 for a professional contest and $500 for an
amateur contest.
3) Requires the promoter or other organization conducting a
contest, within 72 hours after a contest for which admission
is charged and received, to furnish a written report to the
commission showing the number of tickets issued or sold for
the contest, the amount of the gross receipts or value of the
tickets, and the gross price charged directly or indirectly,
for the sale, lease, or other broadcasting or television
rights of the contest.
4) Requires the commission to administer a pension plan for
boxers who engage in boxing contests in this state.
AS PASSED THE ASSEMBLY , this bill provided that individuals who
would otherwise have been eligible for various health programs
but for their immigration status, would continue to be eligible
for those programs, as specified.
FISCAL EFFECT : Unknown
COMMENTS : Earlier this year, the author introduced another bill
(AB 2937) on this subject that likewise sought to address the
concerns raised in several news articles that profiled the
dissatisfaction of boxing promoters with the 5% fee on state
boxing event admission receipts. This was most discussed in
relation to the negotiations surrounding a championship boxing
match that was recently held at the Staples Arena in Los
Angeles. Since the initial news articles appeared, the deal for
the championship fight was finalized and took place as scheduled
on June 17, 2000. (AB 2937 was never heard by the Assembly
Governmental Organization Committee.)
The commission is responsible for regulating professional and
amateur boxing and professional and amateur full-contact martial
arts. There are approximately 100 professional boxing events,
150 amateur boxing events, and 70 professional/amateur
full-contact martial arts events held each year in California.
The regulatory process attempts to maximize the health and
AB 52
Page 3
safety of athletes and ensures that events are fair and
competitive.
The commission also oversees the Professional Boxer's Pension
Plan. The plan is defined as a "contribution" plan that is now
based on a per-ticket assessment of $.88 per ticket for each
event (boxing and otherwise) paid by the promoter. The funds
are now administered by First Union Securities. There are
currently 400 vested boxers which means they are eligible for
benefits at age 55. To date, the commission has refunded
$404,542 to boxers who have had a break in service and do not
meet the vesting criteria. The amount of $25,533 has been
returned to boxers who are permanently disabled.
Analysis Prepared by : George Wiley / G.O. / (916) 319-2531
FN: 0007032