BILL NUMBER: SB 247 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 23, 2006
AMENDED IN ASSEMBLY AUGUST 7, 2006
AMENDED IN ASSEMBLY JUNE 27, 2006
AMENDED IN ASSEMBLY JUNE 15, 2006
AMENDED IN ASSEMBLY MAY 31, 2006
AMENDED IN ASSEMBLY SEPTEMBER 2, 2005
AMENDED IN ASSEMBLY JUNE 28, 2005
AMENDED IN SENATE APRIL 18, 2005
INTRODUCED BY Senator Perata
(Principal coauthors: Assembly Members Nunez and Plescia)
(Coauthors: Senators Figueroa, Florez, and Kuehl)
(Coauthors: Assembly Members Cohn and Sharon Runner)
FEBRUARY 15, 2005
An act to amend Sections 18600, 18602, 18613, 18618, 18646, 18706,
18711, 18822, 18824, 18880, and 18882 of, to add Sections 18602.5
and 18828 to, and to repeal Section 18603 of, the Business and
Professions Code, relating to the Boxing Act.
LEGISLATIVE COUNSEL'S DIGEST
SB 247, as amended, Perata The Boxing Act.
Existing law, the Boxing Act, creates the State Athletic
Commission and makes it responsible for licensing and regulating
boxing, kickboxing, and martial arts matches. A violation of the act
is a crime.
Existing law gives the commission specified duties and powers,
including requiring the commission to appoint an executive officer.
Under existing law, the provisions creating the commission become
inoperative on July 1, 2006, and are repealed on January 1, 2007.
Existing law also provides for the Boxers' Pension Fund, a
continuously appropriated fund, into which contributions to the
boxers' pension plan are deposited.
This bill would provide that the Boxing Act may also be referred
to as the State Athletic Commission Act. The bill would, as of
January 1, 2007, reestablish the commission and provide for the
appointment of an executive officer, and would make these provisions
inoperative and repeal them on July 1, 2009, and January 1, 2010,
respectively. The bill would provide for the executive
officer in office bureau chief on December 31,
2006, to retain the serve in the executive
officer position through June 30, 2007, and change the
replacement would specify the appointment
procedure for that officer position .
The bill would decrease the membership of the commission to 7 and
would revise the composition and membership requirements for the
commission.
Existing law requires the commission to furnish annually to the
Senate Committee on Business and Professions and the Assembly
Committee on Governmental Organization a report indicating the amount
of assessment collected from each promoter and the purposes for
which the moneys were expended.
This bill would instead require that, on or before July 30, 2010,
a specified report be made to the Governor and the Legislature on the
condition of the State Athletic Commission Neurological Examination
Account and the Boxers' Pension Fund. The bill would also require the
commission to adopt and then submit to the Governor and the
Legislature a strategic plan with specified information by September
30, 2008, a report on the status of the adoption of the strategic
plan on or before September 30, 2007 during
the next regularly scheduled sunset review after January 1, 2007
, and a report on the implementation of the strategic plan
by August 1, 2009 on or before September 30,
2009 .
Existing law requires certain physical examinations to be made
upon an athlete regulated by the act as a condition of licensure and
prior to a contest or match.
This bill would revise those provisions related to the physical
examinations of licensees and contestants, including certain
examination requirements, as specified.
Existing law requires every person conducting a contest or
wrestling exhibition to, within 72 hours after the determination of a
contest or exhibition for which admission is charged and received,
furnish the commission with a report under penalty of perjury that
includes specified information regarding the receipts and price for
the event. Existing law imposes specified fees with respect to
athletic contests or matches regulated by the commission, including a
fee of up to 5% of the gross price for the sale, lease, or other
exploitation of broadcasting or television rights for a contest or
wrestling exhibition, with specified exceptions. Existing law also
imposes a $1 per ticket fee for persons admitted free of
change charge if the complimentary passes exceed
25% of the total number of spectators.
This bill would instead require the report by a person conducting
a contest or wrestling exhibition to be made within 5 working days of
the event. The bill would require that the fee of up to 5% of the
gross price paid for the broadcasting rights be no more than
$10,000 less than $1,000 or more than $25,000 ,
would allow the commission to promulgate regulations to
change periodically update the amount of the
fee, as specified, raises to 33% the number of spectators that may be
admitted without paying the additional fee, and would make other
related changes. The bill would allow the commission to enter into a
contract to sanction, supervise, or provide other services for a
contest under the act for which these fees do not apply only if the
contract provides for appropriate compensation to the commission. The
bill would also limit the administrative costs associated with the
Boxers' Pension Fund to no more than 20% of the average annual
contribution to the fund in the previous 2 years, as specified.
Existing law provides that a license under the act may be renewed
any time prior to December 31 of the year it was issued.
This bill would provide that a license issued on and after January
1, 2007, shall expire one year from the date of issue, and would
provide for additional requirements for license renewal.
Because this bill would revise certain requirements of the act,
the violation of which would be a crime, it would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 18600 of the Business and Professions Code is
amended to read:
18600. This chapter shall be known and may be cited as the Boxing
Act or the State Athletic Commission Act.
Whenever a reference is made to the Boxing Act or the State
Athletic Commission Act by the provisions of any statute, it is to be
construed as referring to the provisions of this chapter.
SEC. 2. Section 18602 of the Business and Professions Code is
amended to read:
18602. (a) Except as provided in this section, there is in the
Department of Consumer Affairs the State Athletic Commission, which
consists of seven members. Five members shall be appointed by the
Governor, one member shall be appointed by the Senate Rules
Committee, and one member shall be appointed by the Speaker of the
Assembly.
The members of the commission appointed by the Governor are
subject to confirmation by the Senate pursuant to Section 1322 of the
Government Code.
No person who is currently licensed, or who was licensed within
the last two years, under this chapter may be appointed or
reappointed to, or serve on, the commission.
(b) In appointing commissioners under this section, the Governor,
the Senate Rules Committee, and the Speaker of the Assembly shall
make every effort to ensure that at least four of the members of the
commission shall have experience and demonstrate expertise in one of
the following areas:
(1) A licensed physician or surgeon having expertise or
specializing in neurology, neurosurgery, head trauma, or sports
medicine. Sports medicine includes, but is not limited to,
physiology, kinesiology, or other aspects of sports medicine.
(2) Financial management.
(3) Public safety.
(4) Past experience in the activity regulated by this chapter,
either as a contestant, a referee or official, a promoter, or a venue
operator.
(c) Each member of the commission shall be appointed for a term of
four years. All terms shall end on January 1. Vacancies occurring
prior to the expiration of the term shall be filled by appointment
for the unexpired term. No commission member may serve more than two
consecutive terms.
(d) Notwithstanding any other provision of this chapter, members
first appointed shall be subject to the following terms:
(1) The Governor shall appoint two members for two years, two
members for three years, and one member for four years.
(2) The Senate Committee on Rules shall appoint one member for
four years.
(3) The Speaker of the Assembly shall appoint one member for four
years.
(4) The appointing powers, as described in subdivision (a), may
appoint to the commission a person who was a member of the prior
commission prior to the repeal of that commission on July 1, 2006.
(e) This section shall become inoperative on July 1, 2009, and as
of January 1, 2010, is repealed, unless a later enacted statute,
which becomes operative on or before January 1, 2010, deletes or
extends the dates on which it becomes inoperative and is repealed.
The repeal of this section renders the commission subject to the
review required by Division 1.2 (commencing with Section 473).
SEC. 3. Section 18602.5 is added to the Business and Professions
Code, to read:
18602.5. (a) The commission shall adopt and submit a strategic
plan to the Governor and the Legislature on or before September 30,
2008. The commission shall also submit a report to the Governor and
the Legislature on the status of the adoption of the strategic plan
on or before September 30 during the
commission's next regularly scheduled sunset review after January 1
, 2007. The strategic plan shall include, but shall not be
limited to, efforts to resolve prior State Athletic Commission
deficiencies in the following areas:
(1) Regulation of the profession, what fees should be paid for
this regulation, and the structure and equity of the fees charged.
(2) The effect and appropriateness of contracts made pursuant to
Section 18828.
(3) Costs to train officials ringside
physicians, referees, timekeepers, and judges .
(4) Steps that need to be taken to ensure sufficient sources of
revenue and funding.
(5) Necessity for review and modification of organizational
procedures, the licensing process, and the complaint process.
(6) Outdated information technology.
(7) Unorganized and improper accounting.
(8) Miscalculations at events, a lack of technology to record
proper calculations, and funding issues.
(9) The health and safety of the participants and the public in
attendance at events regulated under this chapter, including costs of
examinations under Section 18711.
(b) The commission shall solicit input from the public, the State
Auditor, the Little Hoover Commission, the Center for Public Interest
Law, and others as necessary in preparing and adopting the strategic
plan.
(c) The commission shall report on progress in implementing the
strategic plan to the Director of Consumer Affairs, the Governor, and
the Legislature by August 1 on or before
September 30 , 2009.
SEC. 4. Section 18603 of the Business and Professions Code is
repealed.
SEC. 5. Section 18613 of the Business and Professions Code is
amended to read:
18613. (a) (1) To assure the continuity and stable transition as
the commission is reformed on January 1, 2007, the executive
officer in place person serving as the bureau chief
on December 31, 2006, shall be reappointed on
serve as the executive officer beginning January
1, 2007, for a term through June 30, 2007. On or before June 30,
2007, but not earlier than June 1, 2007, the commission shall
determine whether to retain the services of the executive
officer who was in place person who was serving as the
bureau chief on December 31, 2006, or to follow the procedure
set forth in paragraph (2) of this subdivision to appoint a new
executive officer. During the period between January 1, 2007, and
June 30, 2007, any inconsistent provisions of this section
notwithstanding, the executive officer may be terminated for cause
upon the affirmative vote of a majority of the members of the
commission.
(2) If at any time the position of executive officer becomes
vacant, the commission shall appoint an executive officer by
submission to the director of three names of individuals to serve as
executive officer. The director shall approve the executive officer
from among those individuals. The commission shall fix the
compensation of the executive officer. The executive officer shall
carry out the duties as prescribed by this chapter and additional
duties as may be delegated by the commission. The commission shall
have the exclusive right to terminate the employment of the executive
officer upon the affirmative vote of a majority of the commission
members.
(2) The commission shall appoint a person exempt from civil
service who shall be designated as an executive officer and who shall
exercise the powers and perform the duties delegated by the
commission and vested in him or her by this chapter. The appointment
of the executive officer is subject to the approval of the Director
of Consumer Affairs.
(3) The commission may employ in accordance with Section 154 other
personnel as may be necessary for the administration of this
chapter.
(b) This section shall become inoperative on July 1, 2009, and, as
of January 1, 2010, is repealed, unless a later enacted statute,
which becomes effective on or before January 1, 2010, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 6. Section 18618 of the Business and Professions Code is
amended to read:
18618. The commission shall furnish to the Governor and the
Legislature a report, on or before July 30, 2010, on the following:
(a) The condition of the State Athletic Commission Neurological
Examination Account. This report shall include the amount of the
assessment collected from each promoter pursuant to Section 18711,
the purposes for which moneys in the account are expended, and
findings and recommendations on the amounts, appropriateness, and
effectiveness of these assessments. The report shall also include a
recommendation on the viability and need for creating a medical
database that would be used for identifying trends in medical records
and data associated with injuries and deaths related to competing.
(b) The condition of the Boxers' Pension Fund. This report shall
include a recommendation on whether the fund should be continued and,
if so, whether it should be expanded to include all athletes
licensed under this chapter and appropriate fees paid into the fund.
SEC. 7. Section 18646 of the Business and Professions Code is
amended to read:
18646. (a) This chapter applies to all amateur boxing, wrestling,
and full contact martial arts contests.
(b) The commission may, however, authorize a nonprofit boxing,
wrestling, or martial arts club or organization, upon approval of its
bylaws, to administer its rules for amateur boxing, wrestling, and
full contact martial arts contests, and may, therefore, waive direct
commission application of laws and rules, including licensure,
subject to the commission's affirmative finding that the standards
and enforcement of similar rules by that club or organization meet or
exceed the safety and fairness standards of the commission. The
commission shall review the performance of any such club or
organization annually.
(c) Every contest subject to this section shall be preceded by a
physical examination, specified by the commission, of every
contestant. A physician shall be in attendance at the contest. There
shall be a medical insurance program satisfactory to the commission
provided by the amateur club or organization in effect covering all
contestants. The commission shall review compliance with these
requirements.
(d) Any club or organization which conducts, holds, or gives
amateur contests pursuant to this section, which collects money for
the event, shall furnish a written financial report of receipts and
disbursements within 90 days of the event.
(e) The commission has the right to have present without charge or
restriction such representatives as are necessary to obtain
compliance with this section.
(f) The commission may require any additional notices and reports
it deems necessary to enforce the provisions of this section.
SEC. 8. Section 18706 of the Business and Professions Code is
amended to read:
18706. (a) Not later than at the weigh-in time, which shall be
not more than 30 hours prior to the beginning of the first event, the
physician provided for in Section 18705 shall conduct a physical
examination of the contestant and certify in writing as to the
contestant's physical condition to engage in the contest or match.
(1) The commission shall make the contestants' medical records
available to the physician and the physician shall review the
contestant's medical records as part of the certification of the
contestant's physical condition.
(2) The physician shall determine whether the contestant may have
any knowledge, manifestations, symptoms, or prior history of a
physical condition that may affect the contestant's ability to
perform or present a potential threat to the contestant's health as a
result of competing in the contest or match. The contestant shall
complete a questionnaire developed by the commission. The contestant
shall be asked to disclose on the questionnaire any conditions of
which the contestant is aware, including, but not limited to, any of
the following:
(A) Significant weight gain or loss and any change in weight in
the seven days prior to the contest.
(B) Neuromuscular condition, including peripheral nerves, muscle
problems, and brain problems.
(C) Pregnancy.
(D) Bone fractures and all forms of arthritis.
(E) Any condition related to vision or changes in hearing
function.
(F) Heart condition or other cardiovascular condition.
(G) Pulmonary or respiratory condition.
(H) Renal or urological condition.
(I) Hematological condition, including manifestations of any
unusual bleeding or bruising.
If any condition is disclosed under this paragraph, the physician
shall not allow the contestant to compete unless the physician or, at
the contestant's discretion, the contestant's personal physician,
who is licensed to practice medicine in the United States, has
conducted a physical examination and determined that the specific
condition does not affect the contestant's ability to perform or
present a potential threat to the contestant's health as a result of
competing in the contest or match.
(3) The questionnaire shall be developed by the commission through
promulgated regulations in consultation with qualified medical
professionals.
(4) Nothing in this chapter may be construed to require a
contestant to submit to a pregnancy test.
(b) On the day of the event, and no later than one hour before the
contestants enter the ring, the physician provided for in Section
18705 shall conduct a brief reexamination and certify in writing as
to the contestant's physical condition to engage in the contest or
match. This reexamination shall include an evaluation of any
significant changes since the physical examination provided under
subdivision (a).
(c) A report of the medical examinations shall be filed with the
commission not later than 24 hours after the termination of the
contest or match. The physician's report of the examination shall
include specific mention as to the condition of the contestant's
heart, nerves and brain.
SEC. 9. Section 18711 of the Business and Professions Code is
amended to read:
18711. (a) (1) (A) The commission shall require, as a
condition of licensure and as a part of the application process, the
examination by a licensed physician and surgeon who specializes in
neurology and neurosurgery of each applicant for a license as a
professional athlete or contestant licensed under this chapter or, if
for the renewal of a license, this examination every year, in
addition to any other medical examinations. Upon
(i) Upon initial licensure, the
examination shall include tests and examinations designed to detect
physical conditions that could place the athlete or contestant at
risk for serious injury or permanent or temporary impairment of any
bodily function. These tests or examinations shall include, but not
be limited to, a neurological examination or a neuro-psychological
examination, a brain imaging scan, and an electrocardiogram (EKG).
The physician may recommend any additional tests or evaluations he or
she deems necessary. For
(ii) For renewal of a license,
the physician shall determine the tests or evaluations necessary, if
any. The
(iii) The commission may require
an athlete or contestant licensed under this chapter to undergo
additional neurological tests where, based on the totality of the
athlete's or contestant's records, it appears the athlete or
contestant may be at risk of cognitive impairment. On
(iv) On the basis of a physical
examination under this subdivision, and any additional tests that are
conducted, the physician may recommend to the commission whether the
applicant may be permitted to be licensed in California or not. The
executive officer shall review these recommendations and report any
denials of licensure. If, as a result of these recommendations, the
executive officer refuses to grant the applicant a license or to
renew a license, the applicant shall not compete in California until
the denial has been overruled by the commission as provided in this
chapter.
(v) The commission may waive the requirement for a brain imaging
scan or an EKG if a brain imaging scan or EKG was completed as part
of the licensing requirements in another state, the commission
determines that this brain imaging scan or EKG creates a reliable
baseline for the athlete or contestant, and the commission has been
provided with a copy of the brain imaging scan or EKG reports.
(vi) This subparagraph shall become inoperative on the date the
regulations adopted by the commission pursuant to subparagraph (B)
become operative.
(B) On and after January 1, 2008, all professional athletes
licensed under this chapter shall be required by the commission to
complete a medical examination process, which shall include the
completion of specific medical examinations, to be determined by the
commission through regulations, as a condition of initial licensure
and license renewal. This medical examination process may include
examinations required under current law and any additional medical
examinations determined to be medically necessary. In adopting the
medical examination process, the commission shall consider the health
and safety of contestants, the medical necessity of any examinations
required, and the financial aspects of requiring those medical
examinations.
(2) In the absence of any pertinent untoward medical event, the
commission may, in its discretion, on forms prescribed by the
commission, accept tests or evaluations that are equivalent to
those described in paragraph (1) and that have been completed
within one year of licensure or completed as part of
licensure in another state to meet the requirements of this
subdivision. The commission may waive the requirement for a brain
imaging scan or an EKG if a brain imaging scan or EKG has been
completed as part of licensure in another state, the commission
determines that this creates a reliable baseline for the athlete or
contestant, and the commission has been provided a copy of the
reports of those exams. to meet the requirements of
this subdivision.
(3) (A) Any medical records obtained, reviewed, or created under
this chapter shall be utilized only for purposes of administering
this chapter. The commission and any physician may not disclose the
athlete's medical records without a signed authorization from the
athlete, except that the commission may disclose those records to
other state licensing boards and commissions to which the athlete has
applied for licensure or has an enforcement action pending, or upon
court order in a criminal or civil action.
(B) The After the adoption of
regulations to establish a process for participating in medical
research studies, the commission may use medical information for
purposes of participating in medical research studies of the effects
on the human body of contests and exhibitions regulated under this
chapter. However, medical information shall not include any personal
identifying information on any contestant, including, but not limited
to, the contestant's name, address, telephone number, social
security number, license number, federal identification number, or
any other information identifying the contestant. The medical
information shall only be provided if the licensed athlete has
consented in writing to participating in the research study. The
regulations adopted by the commission shall include a process to
ensure that no conflic ts of interest arise regarding
which medical examinations are required to be completed by
contestants.
(b) If an applicant for licensure as a professional athlete under
this chapter undergoes a neurological examination for purposes of
licensure within the 120-day period immediately preceding the normal
expiration of that license, the applicant shall not be required to
undergo an additional neurological examination within the following
12 consecutive month license period unless the commission, for cause,
orders that the examination be taken. The commission shall notify
all commission approved physicians and referees that the commission
has the authority to order any professional athlete to undergo a
neurological examination.
(c) The cost of the examinations required by this section shall be
paid from assessments on any one or more of the following: promoters
of professional matches, managers, and professional athletes or
other contestants licensed under this chapter. The rate and manner of
assessment shall be set by the commission, and may cover all costs
associated with the requirements of this section. This assessment
shall be imposed on all contests approved by the commission under
this chapter. As of July 1, 1994, all moneys received by the
commission pursuant to this section shall be deposited in and
credited to the State Athletic Commission Neurological Examination
Account which is hereby created in the General Fund.
(d) Whenever a reference is made to the Boxers' Neurological
Examination Account, it is to be construed as referring to the State
Athletic Commission Neurological Examination Account.
SEC. 10. Section 18822 of the Business and Professions Code is
amended to read:
18822. (a) For licenses issued before January 1, 2007, a license
may be renewed at any time prior to midnight on December 31 of the
year in which it was issued. If not renewed, the license shall expire
at that time.
(b) A license issued on or after January 1, 2007, shall expire 12
months after issuance, on the last day of the 12th month. To renew an
unexpired license, the licenseholder shall, on or before midnight of
the day on which the license would otherwise expire, apply for
renewal on a form prescribed by the commission and pay the prescribed
renewal fee. If the licenseholder is a boxer or martial arts
contestant, the renewal application shall also be accompanied by the
required medical examinations and test results. Renewal of an
unexpired license shall continue the license in effect for one year
from the expiration date of the license, when it shall again expire
if it is not renewed.
SEC. 11. Section 18824 of the Business and
Professions Code is amended to read:
18824. (a) (1) Except as provided in Sections 18646 and 18832,
every person who conducts a contest or wrestling exhibition shall,
within five working days after the determination of every contest or
wrestling exhibition for which admission is charged and received,
furnish to the commission a written report executed under penalty of
perjury by one of the officers, showing the amount of the gross
receipts, not to exceed two million dollars ($2,000,000), and the
gross price for the contest or wrestling exhibition charged directly
or indirectly and no matter by whom received, for the sale, lease, or
other exploitation of broadcasting and television rights of the
contest or wrestling exhibition, and without any deductions, except
for expenses incurred for one broadcast announcer, telephone line
connection, and transmission mobile equipment facility, which may be
deducted from the gross taxable base when those expenses are approved
by the commission.
(A) The person shall also, within the same time, pay to the
commission a fee of 5 percent, exclusive of any federal taxes paid
thereon, of the amount paid for admission to the contest or wrestling
exhibition, except that, for any one contest, the fee shall not
exceed the amount of one hundred thousand dollars ($100,000).
(B) The person shall also, at the same time, pay to the commission
a fee of up to 5 percent of the gross price as described above for
the sale, lease, or other exploitation of broadcasting or television
rights thereof, which fee, except as provided in paragraph (2), shall
be no more than ten thousand dollars ($10,000) and no less than one
thousand dollars ($1,000). The minimum fee for an amateur contest or
exhibition shall not be less than five hundred dollars ($500). The
amount of the gross receipts upon which the fee provided for in this
section is calculated shall not include any assessments levied by the
commission under Section 18711.
The fee on admission shall apply to the amount actually paid for
admission and not to the regular established price.
No fee is due in the case of a person admitted free of charge.
However, if the total number of persons admitted free of charge to a
contest or exhibition under this chapter exceeds 33 percent of the
total number of spectators, then a fee of one dollar ($1) per
complimentary ticket or pass used to gain admission to the contest
shall be paid to the commission for each complimentary ticket or pass
that exceeds the numerical total of 33 percent of the total number
of spectators.
(2) The commission may promulgate regulations to change the amount
of the fee charged under subparagraph (B) of paragraph (1). In no
case shall the fee be more than 5 percent of the gross price as
described above for the sale, lease, or other exploitation of
broadcasting or television rights thereof.
(b) If the fee on admissions for any one contest exceeds seventy
thousand dollars ($70,000), the amount in excess of seventy thousand
dollars ($70,000) shall be paid one-half to the commission and
one-half to the Boxers' Pension Fund.
(c) As used in this section, "person" includes a promoter, club,
individual, corporation, partnership, association, or other
organization, and "wrestling exhibition" means a performance of
wrestling skills and techniques by two or more individuals, to which
admission is charged or which is broadcast or televised, in which the
participating individuals are not required to use their best efforts
in order to win, and for which the winner may have been selected
before the performance commences.
SEC. 11. Section 18824 of the Business
and Professions Code is amended to read:
18824. (a) Except as
provided in Sections 18646 and 18832, every person who conducts a
contest or wrestling exhibition shall, within 72 hours
five working days after the determination of
every contest or wrestling exhibition for which admission is charged
and received, furnish to the commission a the
following:
(1) A written report executed
under penalty of perjury by one of the officers, showing the amount
of the gross receipts, not to exceed two million dollars
($2,000,000), and the gross price for the contest or wrestling
exhibition charged directly or indirectly and no matter by whom
received, for the sale, lease, or other exploitation of broadcasting
and television rights of the contest or wrestling exhibition, and
without any deductions, except for expenses incurred for one
broadcast announcer, telephone line connection, and transmission
mobile equipment facility, which may be deducted from the gross
taxable base when those expenses are approved by the commission.
The person shall also, within the same time, pay to the
commission a
(2) A fee of 5 percent, exclusive
of any federal taxes paid thereon, of the amount paid for admission
to the contest or wrestling exhibition, except that for any one
boxing contest, the fee shall not exceed the
amount of one hundred thousand dollars ($100,000) , and a
fee of up to 5 percent of the gross price as described above for the
sale, lease, or other exploitation of broadcasting or television
rights thereof, except that in no case shall the fee be less than one
thousand dollars ($1,000). The minimum fee for an amateur contest or
exhibition shall not be less than five hundred dollars ($500)
. The commission shall report to the Joint Committee
on Boards, Commissions, and Consumer Protection on the fiscal impact
of the one hundred thousand dollar ($100,000) limit on fees collected
by the commission for admissions revenues.
(A) The amount of the gross
receipts upon which the fee provided for in this section
paragraph (2) is calculated shall not include
any assessments levied by the commission under Section 18711.
The fee on admission shall apply to the amount actually paid for
admission and not to the regular established price.
No fee is due in the case of a person admitted free of charge.
However, if the total number of persons admitted free of charge to a
boxing, kickboxing, or martial arts contest or wrestling exhibition
exceeds 25 percent of the total number of spectators, then a fee of
one dollar ($1) per complimentary ticket or pass used to gain
admission to the contest shall be paid to the commission for each
complimentary ticket or pass that exceeds the numerical total of 25
percent of the total number of spectators.
(b)
(B) (i) If the fee on
admissions for any one boxing contest exceeds seventy
thousand dollars ($70,000), the amount in excess of seventy thousand
dollars ($70,000) shall be paid one-half to the commission and
one-half to the Boxers' Pension Fund.
(c)
(ii) If the report required by subdivision (b) of Section 18618
recommends that the Boxers' Pension Fund shall be expanded to include
all athletes licensed under this chapter, the commission, by
regulation, shall require, for all contests where the fee exceeds
seventy thousand dollars ($70,000), the amount in excess of seventy
thousand dollars ($70,000) shall be paid one-half to the commission
and one-half to the Boxers' Pension Fund only if all athletes
licensed under this chapter are made eligible for the Boxers' Pension
Fund.
(C) The fee shall apply to the amount actually paid for admission
and not to the regular established price.
(D) No fee is due in the case of a person admitted free of charge.
However, if the total number of persons admitted free of charge to a
boxing, kickboxing, or martial arts contest, or wrestling exhibition
exceeds 33 percent of the total number of spectators, then a fee of
one dollar ($1) per complimentary ticket or pass used to gain
admission to the contest shall be paid to the commission for each
complimentary ticket or pass that exceeds the numerical total of 33
percent of the total number of spectators.
(E) The minimum fee for an amateur contest or exhibition shall not
be less than five hundred dollars ($500).
(3) A fee of up to 5 percent, to be established by the commission
through regulations to become operative on or before July 1, 2008,
and updated periodically as needed, of the gross price, exclusive of
any federal taxes paid thereon, for the sale, lease, or other
exploitation of broadcasting or television rights thereof, except
that in no case shall the fee be less than one thousand dollars
($1,000) or more than twenty-five thousand dollars ($25,000).
(b) As used in this section, "person" includes a
promoter, club, individual, corporation, partnership, association, or
other organization, and "wrestling exhibition" means a performance
of wrestling skills and techniques by two or more individuals, to
which admission is charged or which is broadcast or televised, in
which the participating individuals are not required to use their
best efforts in order to win, and for which the winner may have been
selected before the performance commences.
SEC. 12. Section 18828 is added to the Business and Professions
Code, to read:
18828. (a) The commission may enter into a contract to sanction,
supervise, or provide other services for contests under this chapter
for which the fees under this chapter do not apply only if the
contract provides for a payment to the commission for reasonable and
necessary services provided under the contract.
(b) It is the intent of the Legislature that payment under
subdivision (a) shall include the following:
(1) Consideration of costs incurred by the commission.
(2) A contribution into the Boxers' Pension Fund of not less than
20 percent of the commission's costs under paragraph (1).
(3) A contribution into the State Athletic Commission Neurological
Examination Account of not less than 20 percent of the commission's
costs under paragraph (1).
(c) A contestant's participation in a contest subject to this
section shall be deemed to be a commission-approved contest for
purposes of participation in the Boxers' Pension Plan.
SEC. 13. Section 18880 of the Business and Professions Code is
amended to read:
18880. (a) The Legislature finds and declares all of the
following:
(1) That professional athletes licensed under this chapter, as a
group, for many reasons, do not retain their earnings, and are often
injured or destitute, or both, and unable to take proper care of
themselves, whether financially or otherwise, and that the enactment
of this article is to serve a public purpose by making provisions for
a needy group to insure a modicum of financial security for
professional athletes.
(2) Athletes licensed under this chapter may suffer extraordinary
disabilities in the normal course of their trade. These may include
acute and chronic traumatic brain injuries, resulting from multiple
concussions as well as from repeated exposure to a large number of
subconcussive punches, eye injuries, including retinal tears, holes,
and detachments, and other neurological impairments.
(3) The pension plan of the commission is part of the state's
health and safety regulatory scheme, designed to protect boxers
licensed under this chapter from the health-related hazards of their
trade. The pension plan addresses those health and safety needs,
recognizing the disability and health maintenance expenses those
needs may require.
(4) The regulatory system of California is interrelated with the
conduct of the trade in every jurisdiction. Athletes licensed under
this chapter participate in contests in other states and many
athletes who are based in those other jurisdictions may participate
in California on a single-event basis.
(5) The outcomes and natures of fights in other jurisdictions are
relevant to California regulatory jurisdiction and are routinely
monitored for health and safety reasons, so that, for example, a
knockout of an athlete licensed under this chapter in another
jurisdiction is paid appropriate heed with respect to establishing a
waiting period before that athlete may commence fighting in
California.
(6) The monitoring of other jurisdictions is an integral part of
the health and safety of California athletes licensed under this
chapter due to the interstate nature of the trade, and therefore the
regulatory scheme for contests and athletes under this chapter should
reflect this accordingly.
(b) The provisions of this article pertain only to professional
boxers licensed under this chapter.
SEC. 14. Section 18882 of the Business and Professions Code is
amended to read:
18882. (a) At the time of payment of the fee required by Section
18824, a promoter shall pay to the commission all amounts scheduled
for contribution to the pension plan. If the commission, in its
discretion, requires pursuant to Section 18881, that contributions to
the pension plan be made by the boxer and his or her manager, those
contributions shall be made at the time and in the manner prescribed
by the commission.
(b) All contributions to finance the pension plan shall be
deposited in the State Treasury and credited to the Boxers' Pension
Fund, which is hereby created. Notwithstanding the provisions of
Section 13340 of the Government Code, all moneys in the Boxers'
Pension Fund are hereby continuously appropriated to be used
exclusively for the purposes and administration of the pension plan.
(c) The Boxers' Pension Fund is a retirement fund, and no moneys
within it shall be deposited or transferred to the General Fund.
(d) The commission has exclusive control of all funds in the
Boxers' Pension Fund. No transfer or disbursement in any amount from
this fund shall be made except upon the authorization of the
commission and for the purpose and administration of the pension
plan.
(e) Except as otherwise provided in this subdivision, the
commission or its designee shall invest the money contained in the
Boxers' Pension Fund according to the same standard of care as
provided in Section 16040 of the Probate Code. The commission has
exclusive control over the investment of all moneys in the Boxers'
Pension Fund. Except as otherwise prohibited or restricted by law,
the commission may invest the moneys in the fund through the
purchase, holding, or sale of any investment, financial instrument,
or financial transaction that the commission in its informed opinion
determines is prudent.
(f) The administrative costs associated with investing, managing,
and distributing the Boxers' Pension Fund shall be limited to no more
than 20 percent of the average annual contribution made to the fund
in the previous two years, not including any investment income
derived from the corpus of the fund. Diligence shall be exercised by
administrators in order to lower the fund's expense ratio as far
below 20 percent as feasible and appropriate. The commission
shall report to the Joint Committee on Boards, Commissions, and
Consumer Protection on the impact of this provision during the next
regularly scheduled sunset review after January 1, 2007.
SEC. 15. No reimbursement is required by this act 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 penalty
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.