SB 1456: State Athletic Commission Act.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2024-09-22
Current Status:
Passed
(2024-09-22: Chaptered by Secretary of State. Chapter 486, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
Existing law, the Boxing Act, also known as the State Athletic Commission Act, the violation of which is a misdemeanor, grants the State Athletic Commission jurisdiction over all professional and amateur boxing, professional and amateur kickboxing, all forms and combinations of forms of full contact martial arts contests, including mixed martial arts, and matches or exhibitions conducted, held, or given within this state. Existing law prescribes the composition of the commission and requires the commission to appoint an executive officer. Existing law authorizes the commission to employ other personnel for the administration of the act, as specified. Existing law repeals these provisions establishing the commission, requiring it to appoint an executive officer, and authorizing it to employ other personnel on January 1, 2025.
This bill would extend that repeal date to January 1, 2029.
Existing law establishes the Advisory Committee on Medical and Safety Standards within the commission and requires the committee to consist of 6 licensed physicians and surgeons appointed by the commission.
This bill would require the committee to include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
Existing law prohibits a person from engaging in the promotion of, or participating in, a boxing or martial arts contest, match, or exhibition without a license, and requires the commission to prescribe standards as necessary for the licensure of those persons, as specified. Existing law requires an applicant for a license as a professional athlete or contestant, or for renewal of a license, to be examined by a licensed physician and surgeon, as specified. Existing regulations generally require an applicant for a license or renewal to complete various medical examinations, including specified blood tests.
This bill would require the commission to establish a review and approval process for applicants or licensees who test positive for hepatitis C, as specified. The bill would preclude the applicant or licensee from being prohibited from competing on the basis of testing positive for hepatitis C if they have been approved by the commission under that review and approval process.
Existing law requires a promoter to have a licensed physician approved by the commission in attendance at every contest, as specified. Existing regulations generally require the continued presence of at least 2 commission-appointed ringside physicians at all matches and an onsite ambulance staffed by at least one paramedic, as specified.
This bill would require the onsite ambulance to transport to a trauma center without delay a professional or amateur fighter who requires immediate medical care as ordered by a ringside physician.
Existing law requires the commission to recognize and enforce contracts between boxers or martial arts fighters and managers and between boxers or martial arts fighters and licensed clubs, as specified. Existing regulations require all contestants to be paid in full according to their contracts and prohibits the contracted purse amount paid to a boxer from being less than $100 per round.
This bill would require a professional fighter licensed under the act to be entitled to a minimum purse of $200 per round fought and would authorize the commission to raise the minimum purse amount by regulation.
Existing law requires the commission to establish a pension plan for professional boxers in this state and to establish the method by which the pension plan will be financed, as specified. To finance the pension plan, existing regulations require the promoter to contribute $0.88 on every ticket, except as specified, up to a maximum contribution of $4,600 per show. Existing law requires all contributions to finance the pension plan to be deposited in the State Treasury and credited to the Boxers Pension Fund, which is continuously appropriated to be used exclusively for the purposes and administration of the pension plan.
This bill would revise the above-referenced statutory provisions governing the method of financing the pension plan by, among other things, including an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in the state, up to a maximum contribution of $10,000 per contest. Because the bill would increase the amount of moneys to be deposited in a continuously appropriated fund, the bill would make an appropriation.
By imposing additional requirements under the act, the violation of which is a crime, this bill 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.
Existing law, the Boxing Act, also known as the State Athletic Commission Act, the violation of which is a misdemeanor, grants the State Athletic Commission jurisdiction over all professional and amateur boxing, professional and amateur kickboxing, all forms and combinations of forms of full contact martial arts contests, including mixed martial arts, and matches or exhibitions conducted, held, or given within this state. Existing law prescribes the composition of the commission and requires the commission to appoint an executive officer. Existing law authorizes the commission to employ other personnel for the administration of the act, as specified. Existing law repeals these provisions establishing the commission, requiring it to appoint an executive officer, and authorizing it to employ other personnel on January 1, 2025.
This bill would extend that repeal date to January 1, 2029.
Existing law establishes the Advisory Committee on Medical and Safety Standards within the commission and requires the committee to consist of 6 licensed physicians and surgeons appointed by the commission.
This bill would require the committee to include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
Existing law prohibits a person from engaging in the promotion of, or participating in, a boxing or martial arts contest, match, or exhibition without a license, and requires the commission to prescribe standards as necessary for the licensure of those persons, as specified. Existing law requires an applicant for a license as a professional athlete or contestant, or for renewal of a license, to be examined by a licensed physician and surgeon, as specified. Existing regulations generally require an applicant for a license or renewal to complete various medical examinations, including specified blood tests.
This bill would require the commission to establish a review and approval process for applicants or licensees who test positive for hepatitis C, as specified. The bill would preclude the applicant or licensee from being prohibited from competing on the basis of testing positive for hepatitis C if they have been approved by the commission under that review and approval process.
Existing law requires a promoter to have a licensed physician approved by the commission in attendance at every contest, as specified. Existing regulations generally require the continued presence of at least 2 commission-appointed ringside physicians at all matches and an onsite ambulance staffed by at least one paramedic, as specified.
This bill would require the onsite ambulance to transport to a trauma center without delay a professional or amateur fighter who requires immediate medical care as ordered by a ringside physician.
Existing law requires the commission to recognize and enforce contracts between boxers or martial arts fighters and managers and between boxers or martial arts fighters and licensed clubs, as specified. Existing regulations require all contestants to be paid in full according to their contracts and prohibits the contracted purse amount paid to a boxer from being less than $100 per round.
This bill would require a professional fighter licensed under the act to be entitled to a minimum purse of $200 per round fought and would authorize the commission to raise the minimum purse amount by regulation.
Existing law requires the commission to establish a pension plan for professional boxers in this state and to establish the method by which the pension plan will be financed, as specified. To finance the pension plan, existing regulations require the promoter to contribute $0.88 on every ticket, except as specified, up to a maximum contribution of $4,600 per show. Existing law requires all contributions to finance the pension plan to be deposited in the State Treasury and credited to the Boxers Pension Fund, which is continuously appropriated to be used exclusively for the purposes and administration of the pension plan.
This bill would revise the above-referenced statutory provisions governing the method of financing the pension plan by, among other things, including an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in the state, up to a maximum contribution of $10,000 per contest. Because the bill would increase the amount of moneys to be deposited in a continuously appropriated fund, the bill would make an appropriation.
By imposing additional requirements under the act, the violation of which is a crime, this bill 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.
Existing law, the Boxing Act, also known as the State Athletic Commission Act, the violation of which is a misdemeanor, grants the State Athletic Commission jurisdiction over all professional and amateur boxing, professional and amateur kickboxing, all forms and combinations of forms of full contact martial arts contests, including mixed martial arts, and matches or exhibitions conducted, held, or given within this state. Existing law establishes prescribes the composition of the commission and requires the commission to appoint an executive officer. Existing law authorizes the commission to employ other personnel for the administration of the act, as specified. Existing law repeals these provisions establishing the commission, requiring it to appoint an executive officer, and authorizing it to employ other personnel on January 1, 2020.
This bill would extend that repeal date to January 1, 2029.
Existing law establishes the Advisory Committee on Medical and Safety Standards within the commission and requires the committee to consist of 6 licensed physicians and surgeons appointed by the commission. Existing law authorizes the commission to call meetings at such times and places as it deems appropriate for the purpose of studying and recommending medical and safety standards for the conduct of boxing, wrestling, and martial arts contests.
This bill would require the committee to include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
Existing law prohibits a person from engaging in the promotion of, or participating in, a boxing or martial arts contest, match, or exhibition without a license, and requires the commission to prescribe standards as necessary for the licensure of those persons, as specified. Existing law requires an applicant for a license as a professional athlete or contestant, or for renewal of a license, to be examined by a licensed physician and surgeon, as specified. Existing regulations generally require an applicant for a license or renewal to complete various medical examinations, including specified blood tests.
This bill would require the commission to establish a review and approval process for applicants or licensees who test positive for hepatitis C, as specified. The bill would preclude the applicant or licensee from being prohibited from competing on the basis of testing positive for hepatitis C if they have been approved by the commission under that review and approval process.
Existing law requires a promoter to have a licensed physician approved by the commission in attendance at every contest, as specified. Existing regulations generally require the continued presence of at least 2 commission-appointed ringside physicians at all matches and an onsite ambulance staffed by at least one paramedic, as specified.
This bill would require the onsite ambulance to transport to a trauma center without delay a professional or amateur fighter who requires immediate medical care as ordered by a ringside physician.
Existing law requires the commission to recognize and enforce contracts between boxers or martial arts fighters and managers and between boxers or martial arts fighters and licensed clubs, as specified. Existing regulations require all contestants to be paid in full according to their contracts and prohibits the contracted purse amount paid to a boxer from being less than $100 per round.
This bill would require a professional fighter licensed under the act to be entitled to a minimum purse of $200 per round fought and would authorize the commission to raise the minimum purse amount by regulation.
Existing law requires the commission to establish a pension plan for professional boxers in this state and to establish the method by which the pension plan will be financed, as specified. To finance the pension plan, existing regulations require the promoter to contribute $0.88 on every ticket, except as specified, up to a maximum contribution of $4,600 per show. Existing law requires all contributions to finance the pension plan to be deposited in the State Treasury and credited to the Boxers Pension Fund, which is continuously appropriated to be used exclusively for the purposes and administration of the pension plan.
This bill would revise the above-referenced statutory provisions governing the method of financing the pension plan by, among other things, including an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in the state, up to a maximum contribution of $10,000 per contest. Because the bill would increase the amount of moneys to be deposited in a continuously appropriated fund, the bill would make an appropriation.
By imposing additional requirements under the act, the violation of which is a crime, this bill 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.
Existing law, the State Athletic Commission Act, grants the State Athletic Commission jurisdiction over all professional and amateur boxing, professional and amateur kickboxing, all forms and combinations of forms of full contact martial arts contests, including mixed martial arts, and matches or exhibitions conducted, held, or given within this state. Existing law establishes the Advisory Committee on Medical and Safety Standards within the commission and requires the committee to consist of 6 licensed physicians and surgeons appointed by the commission. Existing law authorizes the commission to call meetings at such times and places as it deems appropriate for the purpose of studying and recommending medical and safety standards for the conduct of boxing, wrestling, and martial arts contests.
This bill would require the committee to include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
(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 Committee on Rules, 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 Committee on Rules, 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.
(e)(1)This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
(2)Notwithstanding any other law, the repeal of this section renders the board subject to review by the appropriate policy committees of the Legislature.
SEC. 2.Section 18613 of the Business and Professions Code is amended to read:18613.(a)(1)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 the executive officer by this chapter. The appointment of the executive officer is subject to the approval of the Director of Consumer Affairs.
(2)The commission may employ a chief athletic inspector. If the commission employs a chief athletic inspector, the chief athletic inspector shall exercise the powers and perform the duties delegated by the commission and authorized by the executive officer related to the regulation of events under this chapter.
(3)The commission may employ an assistant chief athletic inspector. If the commission employs an assistant chief athletic inspector, the assistant chief athletic inspector shall assist the chief athletic inspector in exercising the powers and performing the duties delegated by the commission and authorized by the executive officer related to the regulation of events under this chapter.
(4)The commission may employ in accordance with Section 154 other personnel as may be necessary for the administration of this chapter.
(b)(1)(A)Pursuant to Section 820.2 of the Government Code, the executive officer appointed pursuant to this section shall not be liable for discretionary acts taken while performing duties pursuant to this chapter.
(B)This paragraph is declaratory of existing law and does not constitute a change in existing law.
(2)The approval of contests and the assignment of officials for contests by the executive officer under this chapter shall be considered discretionary acts pursuant to Section 820.2 of the Government Code.
(c)This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
SEC. 3.Section 18645 of the Business and Professions Code is amended to read:18645.(a)There is hereby created within the jurisdiction of the State Athletic Commission an Advisory Committee on Medical and Safety Standards.
(b)The committee shall consist of six licensed physicians and surgeons appointed by the commission, including at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties. The commission may call meetings of those physicians and surgeons at such times and places as it deems appropriate for the purpose of studying and recommending medical and safety standards for the conduct of boxing, wrestling, and martial arts contests.
(c)It shall require a majority vote of the commission to appoint a person to the committee. Each appointment shall be at the pleasure of the commission for a term not to exceed four years.
(d)A majority of the appointed members of the committee shall constitute a quorum for the purposes of meeting.
SEC. 4.Section 18645.1 is added to the Business and Professions Code, to read:18645.1.(a)(1)The commission shall establish, by regulation, a review and approval process for applicants or licensees under this chapter who test positive for hepatitis C pursuant to the required blood tests described in Section 280 of Title 4 of the California Code of Regulations.
(2)The commission may consult with the Advisory Committee on Medical and Safety Standards to establish the review and approval process described in paragraph (1).
(b)An applicant or licensee under this chapter shall not be prohibited from competing in any contest, match, or exhibition on the basis of testing positive for hepatitis C, pursuant to Section 280 of Title 4 of the California Code of Regulations, if the applicant or licensee has been approved by the commission under subdivision (a).
SEC. 5.Section 18704 is added to the Business and Professions Code, to read:18704.(a)Subject to subdivision (b), a professional fighter licensed under this chapter shall be entitled to a minimum purse of two hundred dollars ($200) per round fought.
(b)The commission may raise the minimum purse amount by regulation.
SEC. 6.Section 18708 is added to the Business and Professions Code, to read:18708.If a professional or amateur fighter licensed under this chapter or subject to the requirements of this chapter requires immediate medical care as ordered by a ringside physician, the onsite ambulance assigned to the contest, match, or exhibition shall transport the fighter to a trauma center without delay.
SEC. 7.Section 18845 of the Business and Professions Code is amended to read:18845.(a)The commission, its executive officer, or any other employee duly authorized by the executive officer may issue subpoenas for the attendance of witnesses, giving of testimony, or the production of documents before the commission, any member thereof, the executive officer, or any other duly authorized employee with the same effect as if they were issued in an action in the superior court. They may also administer oaths in all matters appertaining to their duties or connected with the administration of the affairs of the commission.
(b)No witness shall be obliged to attend at a place out of the county in which the witness resides unless the distance is less than 150 miles from the witnesss residence, except the commission or its designee may endorse on a subpoena an order requiring the attendance of such witness upon a showing that the testimony of such witness is material and necessary.
(c)Disobedience of a subpoena may be punished as a contempt by the superior court.
SEC. 8.Section 18881 of the Business and Professions Code is amended to read:18881.(a)The commission shall, consistent with the purposes of this article, establish a pension plan for professional boxers who engage in boxing contests in this state.
(b)(1)The commission shall, consistent with the purposes of this article, establish the method by which the pension plan will be financed, including those who shall contribute to the financing of the pension plan.
(2)The method of financing the pension plan shall include an assessment in the amount of one dollar ($1) on each ticket sold for a professional boxing contest held in the state, up to a maximum contribution of ten thousand dollars ($10,000) per contest.
(3)The method for financing the pension plan may include a contribution by boxers, managers, promoters, or any one or more of these persons, in an amount sufficient to finance the pension plan.
(c)Any pension plan established by the commission shall be actuarially sound.
SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(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 Committee on Rules, 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 Committee on Rules, 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.
(e)(1)This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
(2)Notwithstanding any other law, the repeal of this section renders the board subject to review by the appropriate policy committees of the Legislature.
SEC. 2.Section 18613 of the Business and Professions Code is amended to read:18613.(a)(1)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 the executive officer by this chapter. The appointment of the executive officer is subject to the approval of the Director of Consumer Affairs.
(2)The commission may employ a chief athletic inspector. If the commission employs a chief athletic inspector, the chief athletic inspector shall exercise the powers and perform the duties delegated by the commission and authorized by the executive officer related to the regulation of events under this chapter.
(3)The commission may employ an assistant chief athletic inspector. If the commission employs an assistant chief athletic inspector, the assistant chief athletic inspector shall assist the chief athletic inspector in exercising the powers and performing the duties delegated by the commission and authorized by the executive officer related to the regulation of events under this chapter.
(4)The commission may employ in accordance with Section 154 other personnel as may be necessary for the administration of this chapter.
(b)(1)(A)Pursuant to Section 820.2 of the Government Code, the executive officer appointed pursuant to this section shall not be liable for discretionary acts taken while performing duties pursuant to this chapter.
(B)This paragraph is declaratory of existing law and does not constitute a change in existing law.
(2)The approval of contests and the assignment of officials for contests by the executive officer under this chapter shall be considered discretionary acts pursuant to Section 820.2 of the Government Code.
(c)This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
SEC. 3.Section 18645 of the Business and Professions Code is amended to read:18645.(a)There is hereby created within the jurisdiction of the State Athletic Commission an Advisory Committee on Medical and Safety Standards.
(b)The committee shall consist of six licensed physicians and surgeons appointed by the commission, including at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties. The commission may call meetings of those physicians and surgeons at such times and places as it deems appropriate for the purpose of studying and recommending medical and safety standards for the conduct of boxing, wrestling, and martial arts contests.
(c)It shall require a majority vote of the commission to appoint a person to the committee. Each appointment shall be at the pleasure of the commission for a term not to exceed four years.
(d)A majority of the appointed members of the committee shall constitute a quorum for the purposes of meeting.
SEC. 4.Section 18645.1 is added to the Business and Professions Code, to read:18645.1.(a)(1)The commission shall establish, by regulation, a review and approval process for applicants or licensees under this chapter who test positive for hepatitis C pursuant to the required blood tests described in Section 280 of Title 4 of the California Code of Regulations.
(2)The commission may consult with the Advisory Committee on Medical and Safety Standards to establish the review and approval process described in paragraph (1).
(b)An applicant or licensee under this chapter shall not be prohibited from competing in any contest, match, or exhibition on the basis of testing positive for hepatitis C, pursuant to Section 280 of Title 4 of the California Code of Regulations, if the applicant or licensee has been approved by the commission under subdivision (a).
SEC. 5.Section 18704 is added to the Business and Professions Code, to read:18704.(a)Subject to subdivision (b), a professional fighter licensed under this chapter shall be entitled to a minimum purse of two hundred dollars ($200) per round fought.
(b)The commission may raise the minimum purse amount by regulation.
SEC. 6.Section 18708 is added to the Business and Professions Code, to read:18708.If a professional or amateur fighter licensed under this chapter or subject to the requirements of this chapter requires immediate medical care as ordered by a ringside physician, the onsite ambulance assigned to the contest, match, or exhibition shall transport the fighter to a trauma center without delay.
SEC. 7.Section 18845 of the Business and Professions Code is amended to read:18845.(a)The commission, its executive officer, or any other employee duly authorized by the executive officer may issue subpoenas for the attendance of witnesses, giving of testimony, or the production of documents before the commission, any member thereof, the executive officer, or any other duly authorized employee with the same effect as if they were issued in an action in the superior court. They may also administer oaths in all matters appertaining to their duties or connected with the administration of the affairs of the commission.
(b)No witness shall be obliged to attend at a place out of the county in which the witness resides unless the distance is less than 150 miles from the witnesss residence, except the commission or its designee may endorse on a subpoena an order requiring the attendance of such witness upon a showing that the testimony of such witness is material and necessary.
(c)Disobedience of a subpoena may be punished as a contempt by the superior court.
SEC. 8.Section 18881 of the Business and Professions Code is amended to read:18881.(a)The commission shall, consistent with the purposes of this article, establish a pension plan for professional boxers who engage in boxing contests in this state.
(b)(1)The commission shall, consistent with the purposes of this article, establish the method by which the pension plan will be financed, including those who shall contribute to the financing of the pension plan.
(2)The method of financing the pension plan shall include an assessment in the amount of one dollar ($1) on each ticket sold for a professional boxing contest held in the state, up to a maximum contribution of ten thousand dollars ($10,000) per contest.
(3)The method for financing the pension plan may include a contribution by boxers, managers, promoters, or any one or more of these persons, in an amount sufficient to finance the pension plan.
(c)Any pension plan established by the commission shall be actuarially sound.
SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(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 Committee on Rules, 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 Committee on Rules, 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.
(e)(1)This section shall remain in effect only until January 1, 2025, 2029, and as of that date is repealed.
(2)Notwithstanding any other law, the repeal of this section renders the board subject to review by the appropriate policy committees of the Legislature.
SEC. 2.Section 18613 of the Business and Professions Code is amended to read:18613.(a)(1)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 the executive officer by this chapter. The appointment of the executive officer is subject to the approval of the Director of Consumer Affairs.
(2)The commission may employ a chief athletic inspector. If the commission employs a chief athletic inspector, the chief athletic inspector shall exercise the powers and perform the duties delegated by the commission and authorized by the executive officer related to the regulation of events under this chapter.
(3)The commission may employ an assistant chief athletic inspector. If the commission employs an assistant chief athletic inspector, the assistant chief athletic inspector shall assist the chief athletic inspector in exercising the powers and performing the duties delegated by the commission and authorized by the executive officer related to the regulation of events under this chapter.
(4)The commission may employ in accordance with Section 154 other personnel as may be necessary for the administration of this chapter.
(b)(1)(A)Pursuant to Section 820.2 of the Government Code, the executive officer appointed pursuant to this section shall not be liable for discretionary acts taken while performing duties pursuant to this chapter.
(B)This paragraph is declaratory of existing law and does not constitute a change in existing law.
(2)The approval of contests and the assignment of officials for contests by the executive officer under this chapter shall be considered discretionary acts pursuant to Section 820.2 of the Government Code.
(c)This section shall remain in effect only until January 1, 2025, 2029, and as of that date is repealed.
SECTION 1.SEC. 3.Section 18645 of the Business and Professions Code is amended to read:18645.(a)There is hereby created within the jurisdiction of the State Athletic Commission an Advisory Committee on Medical and Safety Standards.
(b)The committee shall consist of six licensed physicians and surgeons appointed by the commission, including at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties. The commission may call meetings of those physicians and surgeons at such times and places as it deems appropriate for the purpose of studying and recommending medical and safety standards for the conduct of boxing, wrestling, and martial arts contests.
(c)It shall require a majority vote of the commission to appoint a person to the committee. Each appointment shall be at the pleasure of the commission for a term not to exceed four years.
(d)A majority of the appointed members of the committee shall constitute a quorum for the purposes of meeting.
SEC. 4.Section 18645.1 is added to the Business and Professions Code, to read:18645.1.(a)(1)The commission shall establish, by regulation, a review and approval process for applicants or licensees under this chapter who test positive for hepatitis C pursuant to the required blood tests described in Section 280 of Title 4 of the California Code of Regulations.
(2)The commission may consult with the Advisory Committee on Medical and Safety Standards to establish the review and approval process described in paragraph (1).
(b)An applicant or licensee under this chapter shall not be prohibited from competing in any contest, match, or exhibition on the basis of testing positive for hepatitis C, pursuant to Section 280 of Title 4 of the California Code of Regulations, if the applicant or licensee has been approved by the commission under subdivision (a).
SEC. 5.Section 18704 is added to the Business and Professions Code, to read:18704.(a)Subject to subdivision (b), a professional fighter licensed under this chapter shall be entitled to a minimum purse of two hundred dollars ($200) per round fought.
(b)The commission may raise the minimum purse amount by regulation.
SEC. 6.Section 18708 is added to the Business and Professions Code, to read:18708.If a professional or amateur fighter licensed under this chapter or subject to the requirements of this chapter requires immediate medical care as ordered by a ringside physician, the onsite ambulance assigned to the contest, match, or exhibition shall transport the fighter to a trauma center without delay.
SEC. 7.Section 18845 of the Business and Professions Code is amended to read:18845.(a)The commission, its executive officer, or any other employee duly authorized by the executive officer may issue subpoenas for the attendance of witnesses, giving of testimony, or the production of documents before the commission, any member thereof, the executive officer, or any other duly authorized employee with the same effect as if they were issued in an action in the superior court. They may also administer oaths in all matters appertaining to their duties or connected with the administration of the affairs of the commission.
(b)No witness shall be obliged to attend at a place out of the county in which the witness resides unless the distance is less than 150 miles from the witnesss residence, except the commission or its designee may endorse on a subpoena an order requiring the attendance of such witness upon a showing that the testimony of such witness is material and necessary.
(c)Disobedience to a supoena of a subpoena may be punished as a contempt by the superior court.
SEC. 8.Section 18881 of the Business and Professions Code is amended to read:18881.(a)The commission shall, consistent with the purposes of this article, establish a pension plan for professional boxers who engage in boxing contests in this state.
(b)(1)The commission shall, consistent with the purposes of this article, establish the method by which the pension plan will be financed, including those who shall contribute to the financing of the pension plan. The method of financing the pension plan may include, but is not limited to, assessments on tickets and contributions by boxers, managers, promoters, or any one or more of these persons, in an amount sufficient to finance the pension plan. For purposes of this section, the term sufficient means that the annual contributions shall be calculated to achieve no less than the average level of annual aggregate pension plan contributions from all sources for the period from July 1, 1981, through December 31, 1994, and adjusted thereafter to reflect changes in the Consumer Price Index for California as set forth by the Bureau of Labor Statistics.
(2)The method of financing the pension plan shall include an assessment in the amount of one dollar ($1) on each ticket sold for a professional boxing contest held in the state, up to a maximum contribution of ten thousand dollars ($10,000) per contest.
(3)The method for financing the pension plan may include a contribution by boxers, managers, promoters, or any one or more of these persons, in an amount sufficient to finance the pension plan.
(c)Any pension plan established by the commission shall be actuarially sound.
SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(a)There is hereby created within the jurisdiction of the State Athletic Commission an Advisory Committee on Medical and Safety Standards.
(b)The committee shall consist of six licensed physicians and surgeons appointed by the commission. commission, including at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties. The commission may call meetings of those physicians and surgeons at such times and places as it deems appropriate for the purpose of studying and recommending medical and safety standards for the conduct of boxing, wrestling, and martial arts contests.
(c)It shall require a majority vote of the commission to appoint a person to the committee. Each appointment shall be at the pleasure of the commission for a term not to exceed four years.
(d)A majority of the appointed members of the committee shall constitute a quorum for the purposes of meeting.
|
Date
|
Status
|
|---|---|
| Sep 22, 2024 | Chaptered by Secretary of State. Chapter 486, Statutes of 2024. |
| Sep 22, 2024 | Approved by the Governor. |
| Sep 13, 2024 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 31, 2024 | Assembly amendments concurred in. (Ayes 39. Noes 0. Page 5767.) Ordered to engrossing and enrolling. |
| Aug 30, 2024 | From committee: That the Assembly amendments be concurred in. (Ayes 8. Noes 0. Page 5754.) |
| Aug 28, 2024 | Re-referred to Com. on RLS pursuant to Senate Rule 29.10(d). |
| Aug 28, 2024 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 28, 2024 | From committee: Be re-referred to Com. on B., P. & E. D. pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0. Page 5537.) Re-referred to Com. on B., P. & E. D. |
| Aug 26, 2024 | Read third time. Passed. (Ayes 77. Noes 0. Page 6537.) Ordered to the Senate. |
| Aug 19, 2024 | Read second time. Ordered to third reading. |
| Aug 15, 2024 | From committee: Do pass. (Ayes 14. Noes 0.) (August 15). |
| Aug 7, 2024 | August 7 set for first hearing. Placed on suspense file. |
| Jun 25, 2024 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 18. Noes 0.) (June 25). Re-referred to Com. on APPR. |
| Jun 19, 2024 | Read second time and amended. Re-referred to Com. on B. & P. |
| Jun 18, 2024 | From committee: Do pass as amended and re-refer to Com. on B. & P. (Ayes 6. Noes 0.) (June 18). |
| Jun 6, 2024 | Re-referred to Coms. on A., E., S., & T. and B. & P. pursuant to Assembly Rule 96. |
| Jun 3, 2024 | Referred to Coms. on B. & P. and A., E., S., & T. |
| May 24, 2024 | In Assembly. Read first time. Held at Desk. |
| May 23, 2024 | Read third time. Passed. (Ayes 37. Noes 0. Page 4184.) Ordered to the Assembly. |
| May 20, 2024 | Ordered to special consent calendar. |
| May 16, 2024 | Read second time. Ordered to third reading. |
| May 16, 2024 | From committee: Do pass. (Ayes 7. Noes 0. Page 3984.) (May 16). |
| May 10, 2024 | Set for hearing May 16. |
| May 6, 2024 | May 6 hearing: Placed on APPR suspense file. |
| Apr 26, 2024 | Set for hearing May 6. |
| Apr 22, 2024 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0. Page 3699.) (April 22). Re-referred to Com. on APPR. |
| Apr 5, 2024 | Set for hearing April 22. |
| Feb 29, 2024 | Referred to Com. on B., P. & E. D. |
| Feb 20, 2024 | From printer. May be acted upon on or after March 18. |
| Feb 16, 2024 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2024 | Unfinished Business SB1456 Ashby Concurrence | Senate Floor |
Passed |
|
| Aug 26, 2024 | SB 1456 Ashby Senate Third Reading By Berman | Assembly Floor |
Passed |
|
| Aug 15, 2024 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 25, 2024 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Business and Professions |
Passed |
|
| Jun 18, 2024 | Do pass as amended and be re-referred to the Committee on [Business and Professions] | Assembly Standing Committee on Arts, Entertainment, Sports, and Tourism |
Passed |
|
| May 23, 2024 | Special Consent SB1456 Ashby | Senate Floor |
Passed |
|
| May 16, 2024 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 6, 2024 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2024 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Orthopaedic Association | ** Support | |
| California State Athletic Commission | * Support | Jun 25, 2024 |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 1456 |
UNFINISHED BUSINESS
Bill No: SB 1456
Author: Ashby (D)
Amended: 6/19/24
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 12-0, 4/22/24
AYES: Ashby, Nguyen, Alvarado-Gil, Archuleta, Becker, Dodd, Eggman, Glazer, Niello, Roth, Smallwood-Cuevas, Wilk
NO VOTE RECORDED: Menjivar
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24
AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab
SENATE FLOOR: 37-0, 5/23/24
AYES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
NO VOTE RECORDED: Allen, Archuleta, Newman
ASSEMBLY FLOOR: 77-0, 8/26/24 - See last page for vote
SUBJECT: State Athletic Commission Act
SOURCE: Author
DIGEST:
The sunset bill for the California State Athletic Commission (Commission or CSAC), this bill extends CSAC operations by four years to January 1, 2029, authorizes the Commission to establish a process for approving competitors who test positive for hepatitis C, increases the minimum purse to $200 and authorizes the commission to increase the amount by regulation, requires an onsite ambulance to transport a competitor to the hospital if the ringside physician orders it, and increases the boxing pension plan ticket assessment.
Assembly amendments add the sunset date, add authority for the Commission to establish a process for approving competitors who test positive for hepatitis C, increase the minimum purse to $200, require an onsite ambulance to transport a competitor to the hospital if the ringside physician orders it, and increase the boxing pension plan ticket assessment to conform to the assessment for the mixed martial arts retirement benefit fund.
ANALYSIS:
Existing law:
- Regulates and licenses combat sports under the Boxing Act, or State Athletic Commission Act, administered by the Commission (Business and Professions Code (BPC) §§ 18600-18888.12)
- Establishes the Commission until January 1, 2025. (BPC § 18602)
This bill:
- Extends the operation of the Commission and its authority to hire an executive officer and specified inspectors by four years to January 1, 2029.
- Specifies that the Commission’s Advisory Committee on Medical and Safety Standards must include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
- Requires the Commission to establish, by regulation, a review and approval process for applicants or licensees who test positive for hepatitis C to compete.
- Specifies that a licensee is entitled to a minimum purse of $200 per round and authorizes the commission to increase the minimum amount in regulation.
- Requires the assigned onsite ambulance to transport a licensee to a trauma center without delay if a ringside physician orders immediate medical care.
- Specifies that the method of financing the boxing pension plan shall include an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in this state, up to a maximum contribution of $10,000 dollars.
- Makes technical and conforming changes.
- Background
In March 2024, the Senate Business, Professions and Economic Development Committee and the Assembly Business and Professions Committee (Committees) began their comprehensive sunset review oversight of ten regulatory entities including the Commission. The Committees conducted two oversight hearings. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees, and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year. The bill will be amended to reflect necessary statutory updates and the continuation of the Commission.
The Commission is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. Concerned with athlete injuries and death, the public established the Commission by initiative in 1924. The Commission is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act and the California Boxing Act or State Athletic Commission 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 (MMA) and matches or exhibitions conducted, held or given in California. 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. In 2023, the Commission supervised 150 events.
As a special fund entity, the Commission receives no General Fund support, relying solely on fees set in statute and collected from regulatory and license fees. For each event held in California that the Commission regulates, the Commission collects a “gate fee” from the event promoter, which is a 5% fee on gross ticket sales for that event, not to exceed $200,000. The Commission also collects a “TV fee” from the event promoter if the event is broadcast on television, which is a 5% fee on the revenue a promoter collects from broadcasting rights, not to exceed $35,000.
The Commission licenses a number of individuals related to the participation in, oversight for, and management of events in California. The Commission does not require any formal education requirements for licensure of fighters, promoters, managers, seconds, matchmakers, referees, judges and timekeepers. However, licensees must possess a minimum level of skill to enable them to safely compete against one another and demonstrate their ability to perform. Licensees who do not fall into the combatant category such as referees, judges, timekeepers and ringside physicians (who are approved by the Commission) must have adequate knowledge of laws and rules so as not to jeopardize the health and safety of athletes. Many of the Commission’s licensees must also pass competency exams provided by the Commission unless they are licensed in other jurisdictions. Fighters must also pass medical examinations that determine whether their health or safety may be compromised by licensure and participation in an event.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, the bill will result in ongoing special fund costs of $2.22 million and 10.7 positions to support the continued operation of the Commission’s licensing and enforcement activities beyond the current sunset of the Commission on January 1, 2025. The 2024 budget act includes these funds and position authority.
California Orthopaedic Association
OPPOSITION: (Verified 8/27/24)
None received
ARGUMENTS IN SUPPORT: The California Orthopaedic Association writes that “Since these sports do have increased risk of head and neurological damage, we think having a designated slot for a neurologist is appropriate and support the legislation.”
ASSEMBLY FLOOR: 77-0, 8/26/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Cervantes, Ortega
Prepared by: Sarah Mason / B., P. & E.D. /
8/30/24 17:27:14
**** END ****
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Angelique Ashby, Chair
2023 - 2024 Regular
Bill No: SB 1456 Hearing Date: August 30, 2024
Author: | Ashby | ||
Version: |
| ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject: State Athletic Commission: Advisory Committee on Medical and Safety Standards
SUMMARY:
The sunset bill for the California State Athletic Commission (Commission or CSAC), this bill extends CSAC operations by four years to January 1, 2029, authorizes the Commission to establish a process for approving competitors who test positive for hepatitis C, increases the minimum purse to $200 and authorizes the Commission to increase the amount by regulation, requires an onsite ambulance to transport a competitor to the hospital if the ringside physician orders it, and increases the boxing pension plan ticket assessment.
NOTE: This measure has been referred to the Committee pursuant to Senate Rule 29.10 (d) for consideration. The Committee may, by a vote of the majority, either: (1) hold the bill, or (2) return the bill to the Senate floor for consideration of the bill as amended in the Assembly.
Existing law:
- Regulates and licenses combat sports under the Boxing Act, or State Athletic Commission Act, administered by the Commission (Business and Professions Code (BPC) §§ 18600-18888.12)
- Establishes the Commission until January 1, 2025. (BPC § 18602)
This bill:
- Extends the operation of the Commission and its authority to hire an executive officer and specified inspectors by four years to January 1, 2029.
- Specifies that the Commission’s Advisory Committee on Medical and Safety Standards must include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
- Requires the Commission to establish, by regulation, a review and approval process for applicants or licensees who test positive for hepatitis C to compete.
- Specifies that a licensee is entitled to a minimum purse of $200 per round and authorizes the commission to increase the minimum amount in regulation.
- Requires the assigned onsite ambulance to transport a licensee to a trauma center without delay if a ringside physician orders immediate medical care.
- Specifies that the method of financing the boxing pension plan shall include an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in this state, up to a maximum contribution of $10,000 dollars.
- Makes technical and conforming changes.
FISCAL EFFECT:
This bill is keyed fiscal by Legislative Counsel. According to the Assembly Committee on Appropriations, the bill will result in ongoing special fund costs of $2.22 million and 10.7 positions to support the continued operation of the Commission’s licensing and enforcement activities beyond the current sunset of the Commission on January 1, 2025. The 2024 budget act includes these funds and position authority.
COMMENTS:
- Purpose. This bill is one of five sunset bills sponsored by the Author. According to the Author, “this bill is necessary to make changes to the California State Athletic Commission to improve oversight of the regulated professions under the jurisdiction of the Commission.”
- Oversight Hearings and Sunset Review of Licensing Boards and Programs. In March 2024, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of ten regulatory entities including the Commission. The Committees conducted two oversight hearings. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees, and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.
- Background on CSAC. The Commission is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. Concerned with athlete injuries and death, the public established the Commission by initiative in 1924. The Commission is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act (Federal Boxing Act) and the California Boxing Act or State Athletic Commission Act (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 (MMA) and matches or exhibitions conducted, held or given in California. 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. In 2023, the Commission supervised 150 events.
As a special fund entity, the Commission receives no General Fund support, relying solely on fees set in statute and collected from regulatory and license fees. For each event held in California that the Commission regulates, the Commission collects a “gate fee” from the event promoter, which is a 5% fee on gross ticket sales for that event, not to exceed $200,000. The Commission also collects a “TV fee” from the event promoter if the event is broadcast on television, which is a 5% fee on the revenue a promoter collects from broadcasting rights, not to exceed $35,000.
The Commission licenses a number of individuals related to the participation in, oversight for, and management of events in California. The Commission does not require any formal education requirements for licensure of fighters, promoters, managers, seconds, matchmakers, referees, judges and timekeepers. However, licensees must possess a minimum level of skill to enable them to safely compete against one another and demonstrate their ability to perform. Licensees who do not fall into the combatant category such as referees, judges, timekeepers and ringside physicians (who are approved by the Commission), must have adequate knowledge of laws and rules so as not to jeopardize the health and safety of athletes. Many of the Commission’s licensees must also pass competency exams provided by the Commission unless they are licensed in other jurisdictions. Fighters must also pass medical examinations that determine whether their health or safety may be compromised by licensure and participation in an event.
The Commission has three Committees in statute and has established sport- and issue-specific Subcommittees at its discretion over the past two years. The Advisory Committee on Medical and Safety Standards, established in statute, consists of six licensed physicians and surgeons appointed by the Commission who meet for the purpose of studying and recommending standards for contests.
- Sunset Review Oversight of the Commission. The Commission was reviewed through sunset review oversight in 2015 and 2019. Following are select issues pertaining to the Commission, along with background information concerning the particular issue.
- Retired Fighters.
Background: Pursuant to the State Act ((BPC § 18881(a)), the Commission administers a Boxers’ Pension Plan, which was originally established in 1982 and aimed at providing monetary resources to retired professional boxers. Current law specifies that if the fee on admissions for a boxing contest exceeds $70,000, the amount in excess of $70,000 shall be paid one-half to the Commission and one-half to the Boxers’ Pension Fund (BPC § 18824(a)(2)(B)). The law further requires any Boxers’ Pension Plan established by the Commission to be actuarially sound (BPC § 18881(c)). The law specifies that the Boxers’ Pension Fund is specifically not a retirement fund.
Commission regulations require a promoter to contribute $.88 on every ticket, excluding a working complimentary ticket, up to a maximum contribution of $4,600 per show, to the Boxers’ Pension Fund. (Title 4 of the California Code of Regulations (4 CCR) § 402). Regulations further specify that a participating boxer shall become vested in the amount credited to the participating boxer's regular account when they have fought in at least ten scheduled rounds per calendar year during each of four calendar years without an intervening break in service, and have fought in at least 75 scheduled rounds without a break in service.
In 2005, the Bureau of State Audits (BSA) found that the fund was poorly administered and very few boxers have or would receive benefits from the Boxers’ Pension Fund. The Auditor noted that from 2001-2004, total benefits paid to boxers were $36,000, while administrative costs were six times greater. Further, the Auditor also noted that, as of 2003, only 14 percent of licensed boxers were vested and their accounts were very low. On December 31, 2005, only 43 participants were eligible for retirement benefits totaling just $430,000. BSA recommended reducing vesting requirements and increasing the gate fees used to fund the plan. According to a report issued by BSA in January 2011, these recommendations from 2005 remained unresolved. The Commission responded to BSA’s recommendation by stating that it would conduct a study on the impact of reducing vesting requirements and pursue changes in statute or regulation or an increase in gate fees.
During the 2013 sunset review oversight of the Commission, questions were raised as to whether a lump sum payment was a proper benefit to a fighter, or whether there were potentially more appropriate means by which to assist these athletes like providing health insurance benefits, connecting fighters to coverage for medical services, or directing retired boxers to medical coverage options like Covered California so they are able to receive ongoing, consistent medical treatment that is not likely covered by a one-time payment. During the 2019 sunset review oversight of the Commission, it noted that it had increased Pension Plan distributions to qualified retired boxers, despite the obstacles in locating potential claimants. At the time, there were almost 300 covered boxers and almost $3.8 million in fund assets, with 11 boxers paid just over $176,000 in 2018. The Commission advised that establishing a MMA Pension Plan was outlined in its Strategic Plan, but questions were raised at the time about how a MMA Pension Plan would be structured, given its specificity for boxers, as well as the general challenges associated with underfunded pensions.
At its March 2023 meeting, it was reported that the Commission had deposited $65,597.14 to the Boxers’ Pension Fund in the current fiscal year and that the Fund has approximately $4.658 million as of the beginning of 2023.
In 2023, the Commission sponsored AB 1136 (Carrillo, Chapter 466, Statutes of 2023) to establish a MMA Retirement Benefit Fund. The MMA Fund is financed by any of the following:
- An assessment in the amount of one dollar ($1) on each ticket sold for a professional MMA contest held in the state. The amount may be raised to up to $2 through regulations.
- Revenue through the sale of special interest license plates and other commission-branded items, including, but not limited to, sport paraphernalia and souvenirs.
- Contributions by martial artists, managers, promoters, or any one or more of these persons, in an amount sufficient to finance the MMA Fund.
The MMA Fund fighter eligibility and vesting requirements are outlined in the State Act, rather than regulations, as the Boxers’ Pension Fund administration is outlined.
The Commission has requested a number of changes related to these programs, including changes aimed at increasing revenue for the Boxers’ Pension Fund.
Recommendations: The Commission should advise the Committees whether there are better means by which to assist retired boxers lead a healthy life after years of participation in the sport and ensure that they receive important medical care. The Commission should provide an update about the ability for the Commission’s current structure and revenues to support this important work. The Commission should provide an update on formal, ongoing outreach efforts to boxers and future efforts to MMA athletes. The Commission should provide an update on necessary statutory changes to the State Act related to these funds and programmatic efforts. The Committees should evaluate whether current statute and regulations meet the intended purpose of assisting retired athletes. This bill specifies that the method of financing the boxing pension plan shall include an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in this state, up to a maximum contribution of $10,000 dollars.
- Minimum Purse.
- Minimum Purse.
Background: In response to concerns that athletes were not provided a minimum purse for fighting and exploitation by promoters who may pay them as little as $1.00 instead of an industry minimum, the Commission promulgated regulations to set a minimum purse amount of $100 per round. The Commission believes this amount should be updated to $200 and included in the State Act.
Recommendations: The Commission should update the Committees on this effort. The Committees may wish to update the Act to ensure that fighters are provided appropriate compensation. This bill specifies that a licensee is entitled to a minimum purse of $200 per round and authorizes the commission to increase the minimum amount in regulation.
- Ambulance Transport.
Background: Commission regulations require an ambulance staffed by at least one paramedic is available at the site during and after an event and that it remains on site until released by a ringside physician. Commission regulations require an ambulance at events, concerns have been raised that fighter safety is significantly impacted when paramedics do not transport injured fighters in a timely manner to receive critical care. It would be helpful for the Committees to understand what discussions the Commission has held with stakeholders to ensure that fighter safety is prioritized and that appropriate judgment is made swiftly to protect these individuals. It would be helpful for the Committees to understand what steps need to be taken so that injured fighters are transported from events as necessary.
Recommendations: The Commission should update the Committees on necessary updates to state law to ensure that injured fighters receive proper, timely care. This bill requires the assigned onsite ambulance to transport a licensee to a trauma center without delay if a ringside physician orders immediate medical care.
- Technical Changes.
Background: There may be a number of technical statutory changes or updates, which may improve the Commission’s operations.
Recommendations: The Committees may wish to amend the Act to include technical clarifications. This bill makes various technical and conforming changes.
- Arguments in Support. The California Orthopaedic Association writes that “Since these sports do have increased risk of head and neurological damage, we think having a designated slot for a neurologist is appropriate and support the legislation.”
SUPPORT AND OPPOSITION:
Support:
California Orthopaedic Association
Opposition:
None received
-- END --
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 1456 |
UNFINISHED BUSINESS
Bill No: SB 1456
Author: Ashby (D)
Amended: 6/19/24
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 12-0, 4/22/24
AYES: Ashby, Nguyen, Alvarado-Gil, Archuleta, Becker, Dodd, Eggman, Glazer, Niello, Roth, Smallwood-Cuevas, Wilk
NO VOTE RECORDED: Menjivar
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24
AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab
SENATE FLOOR: 37-0, 5/23/24
AYES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
NO VOTE RECORDED: Allen, Archuleta, Newman
ASSEMBLY FLOOR: 77-0, 8/26/24 - See last page for vote
SUBJECT: State Athletic Commission Act
SOURCE: Author
DIGEST:
The sunset bill for the California State Athletic Commission (Commission or CSAC), this bill extends CSAC operations by four years to January 1, 2029, authorizes the Commission to establish a process for approving competitors who test positive for hepatitis C, increases the minimum purse to $200 and authorizes the commission to increase the amount by regulation, requires an onsite ambulance to transport a competitor to the hospital if the ringside physician orders it, and increases the boxing pension plan ticket assessment.
Assembly amendments add the sunset date, add authority for the Commission to establish a process for approving competitors who test positive for hepatitis C, increase the minimum purse to $200, require an onsite ambulance to transport a competitor to the hospital if the ringside physician orders it, and increase the boxing pension plan ticket assessment to conform to the assessment for the mixed martial arts retirement benefit fund.
ANALYSIS:
Existing law:
- Regulates and licenses combat sports under the Boxing Act, or State Athletic Commission Act, administered by the Commission (Business and Professions Code (BPC) §§ 18600-18888.12)
- Establishes the Commission until January 1, 2025. (BPC § 18602)
This bill:
- Extends the operation of the Commission and its authority to hire an executive officer and specified inspectors by four years to January 1, 2029.
- Specifies that the Commission’s Advisory Committee on Medical and Safety Standards must include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
- Requires the Commission to establish, by regulation, a review and approval process for applicants or licensees who test positive for hepatitis C to compete.
- Specifies that a licensee is entitled to a minimum purse of $200 per round and authorizes the commission to increase the minimum amount in regulation.
- Requires the assigned onsite ambulance to transport a licensee to a trauma center without delay if a ringside physician orders immediate medical care.
- Specifies that the method of financing the boxing pension plan shall include an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in this state, up to a maximum contribution of $10,000 dollars.
- Makes technical and conforming changes.
- Background
In March 2024, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of ten regulatory entities including the Commission. The Committees conducted two oversight hearings. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees, and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year. The bill will be amended to reflect necessary statutory updates and the continuation of the Commission.
The Commission is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. Concerned with athlete injuries and death, the public established the Commission by initiative in 1924. The Commission is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act and the California Boxing Act or State Athletic Commission 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 (MMA) and matches or exhibitions conducted, held or given in California. 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. In 2023, the Commission supervised 150 events.
As a special fund entity, the Commission receives no General Fund support, relying solely on fees set in statute and collected from regulatory and license fees. For each event held in California that the Commission regulates, the Commission collects a “gate fee” from the event promoter, which is a 5% fee on gross ticket sales for that event, not to exceed $200,000. The Commission also collects a “TV fee” from the event promoter if the event is broadcast on television, which is a 5% fee on the revenue a promoter collects from broadcasting rights, not to exceed $35,000.
The Commission licenses a number of individuals related to the participation in, oversight for, and management of events in California. The Commission does not require any formal education requirements for licensure of fighters, promoters, managers, seconds, matchmakers, referees, judges and timekeepers. However, licensees must possess a minimum level of skill to enable them to safely compete against one another and demonstrate their ability to perform. Licensees who do not fall into the combatant category such as referees, judges, timekeepers and ringside physicians (who are approved by the Commission) must have adequate knowledge of laws and rules so as not to jeopardize the health and safety of athletes. Many of the Commission’s licensees must also pass competency exams provided by the Commission unless they are licensed in other jurisdictions. Fighters must also pass medical examinations that determine whether their health or safety may be compromised by licensure and participation in an event.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, the bill will result in ongoing special fund costs of $2.22 million and 10.7 positions to support the continued operation of the Commission’s licensing and enforcement activities beyond the current sunset of the Commission on January 1, 2025. The 2024 budget act includes these funds and position authority.
California Orthopaedic Association
OPPOSITION: (Verified 8/27/24)
None received
ARGUMENTS IN SUPPORT: The California Orthopaedic Association writes that “Since these sports do have increased risk of head and neurological damage, we think having a designated slot for a neurologist is appropriate and support the legislation.”
ASSEMBLY FLOOR: 77-0, 8/26/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Cervantes, Ortega
Prepared by: Sarah Mason / B., P. & E.D. /
8/28/24 12:44:01
**** END ****
SENATE THIRD READING
STR Bill Id:SB 1456
Author:(Ashby)
As Amended Ver:June 19, 2024
Majority vote
SUMMARY
This bill extends the operation of the California State Athletic Commission (Commission), within the Department of Consumer Affairs (DCA), by four years to January 1, 2029, and makes various changes to statute governing the Commission.
Major Provisions
- Extends the operation of the commission and its authority to hire an executive officer and specified inspectors by four years to January 1, 2029.
- Specifies that the commission's Advisory Committee on Medical and Safety Standards must include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
- Requires the commission to establish, by regulation, a review and approval process for applicants or licensees who test positive for hepatitis C to compete.
- Specifies that a licensee is entitled to a minimum purse of $200 per round and authorizes the commission to increase the minimum amount in regulation.
- Requires the assigned onsite ambulance to transport a licensee to a trauma center without delay if a ringside physician orders immediate medical care.
- Specifies that the method of financing the boxing pension plan shall include an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in this state, up to a maximum contribution of $10,000 dollars.
- Makes technical and conforming changes.
COMMENTS
The Commission is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. Concerned with athlete injuries and death, the public established the Commission by initiative in 1924. The Commission is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act (Federal Boxing Act) and the California Boxing Act or State Athletic Commission Act (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 (MMA) and matches or exhibitions conducted, held or given in California. 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. In 2023, the Commission supervised 150 events.
As a special fund entity, the Commission receives no General Fund support, relying solely on fees set in statute and collected from regulatory and license fees. For each event held in California that the Commission regulates, the Commission collects a "gate fee" from the event promoter, which is a 5% fee on gross ticket sales for that event, not to exceed $200,000. The Commission also collects a "TV fee" from the event promoter if the event is broadcast on television, which is a 5% fee on the revenue a promoter collects from broadcasting rights, not to exceed $35,000.
The Commission licenses a number of individuals related to the participation in, oversight for, and management of events in California. The Commission does not require any formal education requirements for licensure of fighters, promoters, managers, seconds, matchmakers, referees, judges and timekeepers. However, licensees must possess a minimum level of skill to enable them to safely compete against one another and demonstrate their ability to perform. Licensees who do not fall into the combatant category such as referees, judges, timekeepers and ringside physicians (who are approved by the Commission) must have adequate knowledge of laws and rules so as not to jeopardize the health and safety of athletes. Many of the Commission's licensees must also pass competency exams provided by the Commission unless they are licensed in other jurisdictions. Fighters must also pass medical examinations that determine whether their health or safety may be compromised by licensure and participation in an event.
The Commission has three Committees in statute and has established sport- and issue-specific Subcommittees at its discretion over the past two years. The Advisory Committee on Medical and Safety Standards, established in statute, consists of six licensed physicians and surgeons appointed by the Commission who meet for the purpose of studying and recommending standards for contests.
The current Commission mission statement, as stated in its 2019-2023 Strategic Plan, is as follows:
"The California State Athletic Commission is dedicated to the health, safety and welfare of participants in regulated competitive sporting events, through ethical and professional service."
The Commission is in the process of updating its Strategic Plan for 2024-2028.
According to the Author
"This bill is necessary to make changes to the California State Athletic Commission to improve oversight of the regulated professions under the jurisdiction of the Commission."
Arguments in Support
According to the California Orthopedic Association in support, "Since these sports do have increased risk of head and neurological damage, we think having a designated slot for a neurologist is appropriate and support the legislation."
Arguments in Opposition
None on file.
FISCAL COMMENTS
Ongoing special fund of $2.22 million (Athletic Commission Fund) and 10.7 positions to support the continued operation of the Commission's licensing and enforcement activities beyond the current sunset of the Commission on January 1, 2025.
The 2024 budget act includes these funds and position authority.
VOTES
SENATE FLOOR: 37-0-3
YES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Allen, Archuleta, Newman
ASM ARTS, ENTERTAINMENT, SPORTS, AND TOURISM: 6-0-1
YES: Gipson, Wallis, Mike Fong, Lackey, McKinnor, Santiago
ABS, ABST OR NV: Valencia
ASM BUSINESS AND PROFESSIONS: 18-0-0
YES: Berman, Flora, Alanis, Bains, Juan Carrillo, Chen, Dixon, Grayson, Irwin, Jackson, Low, Lowenthal, McKinnor, Stephanie Nguyen, Pellerin, Sanchez, Soria, Zbur
ASM APPROPRIATIONS: 14-0-1
YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Pellerin, Ta, Villapudua
ABS, ABST OR NV: Jim Patterson
UPDATED
VERSION: June 19, 2024
CONSULTANT: Brian Anderson / A.,E.,S., & T. / (916) 319-3450 FN: 0004067
Date of Hearing: August 7, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
SBPCA Bill Id:SB 1456
Author:(Ashby) – As Amended Ver:June 19, 2024
Policy Committee: | Arts, Entertainment, Sports, and Tourism | Vote: | 6 - 0 |
Business and Professions | 18 - 0 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill extends the operation of the California State Athletic Commission (Commission), within the Department of Consumer Affairs (DCA), by four years to January 1, 2029, and makes various changes to statute governing the Commission.
Specifically, this bill authorizes the Commission to establish a process for approving competitors who test positive for hepatitis C, increases the minimum payment to athletes from $100 to $200 per round and authorizes the Commission to further increase the amount by regulation, requires an onsite ambulance to transport a competitor to the hospital if the ringside physician orders it, and increases the boxing pension plan ticket assessment in the amount of $1 on each ticket sold for a professional boxing contest held in this state, up to a maximum contribution of $10,000 dollars.
FISCAL EFFECT:
Ongoing special fund of $2.22 million (Athletic Commission Fund) and 10.7 positions to support the continued operation of the Commission’s licensing and enforcement activities beyond the current sunset of the Commission on January 1, 2025.
The 2024 budget act includes these funds and position authority.
COMMENTS:
Background. Current law regulates and licenses combat sports under the Boxing Act, also known as the State Athletic Commission Act, and establishes the State Athletic Commission, until January 1, 2025. The Commission is responsible for implementing and enforcing the Federal Muhammad Ali Boxing Reform Act and the state Boxing Act. Under the Commission’s purview are 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 held in California. For these sports, the Commission has four main functions: licensing, enforcement, regulating events, and administering two retirement funds, the Professional Boxers’ Pension Fund and the Mixed Martial Arts Retirement Benefit Fund.
Like other boards and commissions under DCA, the State Athletic Commission is subject to a sunset review process periodically, whereby the Assembly Committee on Business and Professions and the Senate Committee on Business, Professions and Economic Development hold joint sunset review oversight hearings to review the state’s licensing boards. These hearings result in recommendations, which are often incorporated into the reauthorizing statute of a board or commission.
This bill is the sunset bill for the Commission and makes changes recommended during the joint sunset review of the Commission.
Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081
Date of Hearing: June 25, 2024
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Marc Berman, Chair
SBPCA Bill Id:SB 1456
Author:(Ashby) – As Amended Ver:June 19, 2024
NOTE: This bill is double referred and passed the Assembly Arts, Entertainment, Sports, and Tourism Committee as amended on June 18, 2024, by of a vote of 6-0-1.
SENATE VOTE: 37-0
SUBJECT: State Athletic Commission Act
SUMMARY: Extends the California State Athletic Commission by four years to January 1, 2025, authorizes the commission to establish a process for approving competitors who test positive for hepatitis C, increases the minimum purse to $200 and authorizes the commission to increase the amount by regulation, requires an onsite ambulance to transport a competitor to the hospital if the ringside physician orders it, and increases the boxing pension plan ticket assessment.
EXISTING LAW:
- Regulates and licenses combat sports under the Boxing Act, also known as the State Athletic Commission Act. (Business and Professions Code (BPC) §§ 18600-18887)
- Establishes the State Athletic Commission, until January 1, 2025, within the Department of Consumer Affairs (DCA) to administer and enforce the Boxing Act. (BPC § 18602)
- Defines “club” and “promoter” synonymously to mean a corporation, partnership, association, individual, or other organization which conducts, holds, or gives a boxing or martial arts contest, match, or exhibition. (BPC § 18622)
- Defines a professional or amateur boxer or martial arts fighter as one who engages in a boxing or martial arts contest and who possesses fundamental skills in their respective sport. (BPC § 18623)
- Defines “contest” and “match” synonymously to mean professional and amateur boxing, kickboxing, and martial arts exhibitions, and mean a fight, prizefight, boxing contest, pugilistic contest, kickboxing contest, martial arts contest, or sparring match, between two or more persons, where full contact is used or intended that may result or is intended to result in physical harm to the opponent. (BPC § 18625(a))
- Defines an amateur contest or match to include a contest or match where full contact is used, even if unintentionally. (BPC § 18625(b)(1))
- Provides that an amateur contest or match does not include light contact karate, tae kwon do, judo, or any other light contact martial arts as approved by the commission and recognized by the International Olympic Committee as an Olympic sport. (BPC § 18625(b)(2))
- Defines “martial arts” as any form of karate, kung fu, tae kwon do, kickboxing or any combination of full contact martial arts, including mixed martial arts, or self-defense conducted on a full contact basis where a weapon is not used. (BPC §18627(a))
- Defines “kickboxing” as any form of boxing in which blows are delivered with the hand and any part of the leg below the hip, including the foot. (BPC § 18627(b))
- Defines “full contact” as the use of physical force in a martial arts contest that may result or is intended to result in physical harm to the opponent, including any contact that does not meet the definition of light contact or noncontact. (BPC § 18627(c))
- Defines “manager” as any person who does any of the following:
- By contract, agreement, or other arrangement with any person, undertakes or has undertaken to represent in any way the interest of any professional boxer, or martial arts fighter in procuring, or with respect to the arrangement or conduct of, any professional contest in which the boxer or fighter is to participate as a contestant; except that the term “manager” shall not be construed to mean any attorney licensed to practice in this state whose participation in these activities is restricted to representing the legal interests of a professional boxer or fighter as a client. Otherwise, an attorney shall be licensed as a manager in order to engage in any of the activities described in this section. (BPC § 18628(a))
- Directs or controls the professional boxing or martial arts activities of any professional boxer or martial arts fighter. (BPC § 18628(b))
- Receives or is entitled to receive more than 10 percent of the gross purse of any professional boxer or martial arts fighter for any services relating to such person’s participation in a professional contest. (BPC § 18628(c))
- Is an officer, director, shareholder, or member of any corporation or organization which receives, or is entitled to receive more than 10% of the gross purse of any professional boxer or martial arts fighter for any services relating to the person’s participation in a professional contest. (BPC § 18628(d))
- Creates the Advisory Committee on Medical and Safety Standards within the commission, consisting of six licensed physicians and surgeons appointed by the commission, to study and recommend medical and safety standards for the conduct of boxing, wrestling, and martial arts contests. (BPC § 18645)
- Requires any person applying for a license or the renewal of a license as a professional boxer or as a professional martial arts fighter to present documentary evidence satisfactory to CSAC that the applicant has been administered a clinical laboratory test to detect the presence of antibodies both to the human immunodeficiency virus (HIV) and to hepatitis C virus (HCV) and to detect the presence of the antigen of hepatitis B virus (HBV) within 30 days prior to the date of the application and that the results of all three tests are negative. (BPC § 18712(a))
- Requires a promoter to contribute $.88 on every ticket, excluding a working complimentary ticket, up to a maximum contribution of $4,600 per show, to the boxing pension plan. (CCR tit. 4 § 403(a))
THIS BILL:
- Extends the operation of the commission and its authority to hire an executive officer and specified inspectors by four years to January 1, 2029.
- Specifies that the commission’s Advisory Committee on Medical and Safety Standards must include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
- Requires the commission to establish, by regulation, a review and approval process for applicants or licensees who test positive for hepatitis C to compete.
- Specifies that a licensee is entitled to a minimum purse of $200 per round and authorizes the commission to increase the minimum amount in regulation.
- Requires the assigned onsite ambulance to transport a licensee to a trauma center without delay if a ringside physician orders immediate medical care.
- Specifies that the method of financing the boxing pension plan shall include an assessment in the amount of $1 on each ticket sold for a professional boxing contest held in this state, up to a maximum contribution of $10,000 dollars.
- Makes technical and conforming changes.
FISCAL EFFECT: According to the Senate Appropriations Committee, the 2024-25 Governor’s Budget provides approximately $2.22 million (Athletic Commission Fund) and 10.7 positions to support the continued operation of the commission’s licensing and enforcement activities.
COMMENTS:
Purpose. This bill is sponsored by the author. According to the author, “this bill is necessary to make changes to the California State Athletic Commission to improve oversight of the regulated professions under the jurisdiction of the Commission.”
Background. Each year, the Assembly Committee on Business and Professions and the Senate Committee on Business, Professions and Economic Development hold joint sunset review oversight hearings to review the licensing boards under the Department of Consumer Affairs (DCA). The DCA boards are responsible for protecting consumers and the public and regulating the professionals they license. The sunset review process provides an opportunity for the Legislature, DCA, boards, and stakeholders to discuss the performance of the boards and make recommendations for improvements.
Each board subject to review has an enacting statute that has a repeal date, which means each board requires an extension before the repeal date. This bill is one of the “sunset” bills that are intended to extend the repeal date of the boards undergoing sunset review, as well as include the recommendations from the sunset review oversight hearings.
This year, there are five sunset review bills authored by the Assembly Committee on Business and Professions and five sunset review bills authored by the Chair of the Senate Business, Professions and Economic Development Committee.
California State Athletic Commission. The commission is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. Concerned with athlete injuries and death, the public established the commission by initiative in 1924. The commission is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act and the state Boxing Act or State Athletic Commission 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 (MMA) and matches or exhibitions conducted, held or given in California. The commission has four main functions: licensing, enforcement, regulating events, and administering two “pension” funds, the Professional Boxers’ Pension Fund and the Mixed Martial Arts Retirement Benefit Fund.
More 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. In 2023, the Commission supervised 150 events.
The current Commission mission statement, as stated in its 2019-2023 Strategic Plan, is as follows:
The California State Athletic Commission is dedicated to the health, safety and welfare of participants in regulated competitive sporting events, through ethical and professional service.
The Commission is in the process of updating its Strategic Plan for 2024-2028.
Current Related Legislation. AB 3251 (Committee on Business and Professions), which is pending in the Senate, is the sunset bill for the California Board of Accountancy.
AB 3252 (Committee on Business and Professions), which is pending in the Senate, is the sunset bill for the Court Reporters Board.
AB 3253 (Committee on Business and Professions), which is pending in the Senate, is the sunset bill for the Board for Professional Engineers, Land Surveyors, and Geologists.
AB 3254 (Committee on Business and Professions), which is pending in the Senate, is the sunset bill for the Cemetery and Funeral Bureau.
AB 3255 (Committee on Business and Professions), which is pending in the Senate, is the sunset bill for the Board of Vocational Nursing and Psychiatric Technicians.
SB 1452 (Ashby), which is pending in this committee, is the sunset bill for the California Architects Board and the Landscape Architects Technical Committee.
SB 1453 (Ashby), which is pending in this committee, is the sunset bill for the Dental Board of California.
SB 1454 (Ashby), which is pending in this committee, is the sunset bill for the Bureau of Security and Investigative Services.
SB 1455 (Ashby), which is pending in this committee, is the sunset bill for the Contractors’ State License Board.
Prior Related Legislation. AB 1136 (Haney), Chapter 466, Statutes of 2023, established the Mixed Martial Arts Retirement Benefit Fund.
AB 1703 (Wendy Carrillo), Chapter 591, Statutes of 2023, increases the cap on the 5% fee on gate admissions that the commission may collect from a combative sports promotion from $100,000 to $200,000.
AB 1523 (Low), Chapter 464, Statutes of 2019, extended the operation of the CSAC until January 1, 2024, and authorizes the Commission to hire a chief athletic inspector and assistant chief athletic inspector.
SB 439 (Hill), Chapter 316, Statutes of 2015, extended the operation of the Commission until January 1, 2020, and made changes to the laws governing the Commission’s operations and the Commission’s oversight of professional and amateur combat sports, as specified, held or given in California.
SB 309 (Lieu), Chapter 370, Statutes of 2013, extended the operation of the Commission until 2016.
AB 1186 (Bonilla), Chapter 506, Statutes of 2013, clarified that the Commission is authorized to regulate all forms of full contact martial arts contests involving participants 18 years of age or younger, including all forms and combinations of forms of full contact martial arts contests deemed by the Commission to be similar, and that an amateur contest includes a contest where full contact is used, even if unintentionally.
AB 2100 (Alejo) of 2012, which was held in the Assembly Appropriations Committee, would have required that the Commission, in consultation with the Association of Boxing Commissions, to establish and enforce a professional code of conduct, as specified, and that persons seeking payment as promoters must make specified disclosures to the Commission prior to being compensated.
SB 543 (Price), Chapter 448, Statutes of 2011, extended the Commission sunset date for 2 years, from January 1, 2012 to January 1, 2014.
SB 294 (Negrete McLeod), Chapter 695, Statutes of 2010, extended the Commission sunset date for one year, from January 1, 2011 to January 1, 2012.
SB 963 (Ridley-Thomas), Statutes of 2008, extended the Commission sunset date from July 1, 2009 to January 1, 2011.
SB 247 (Perata), Chapter 465, Statutes of 2006, reestablished the Commission on January 1, 2007, as an independent board through July 1, 2009.
ARGUMENTS IN SUPPORT:
The California Orthopaedic Association writes in support of adding “a neurologist to the State Athletic Commission Advisory Committee of Medical and Safety Standards… Since these sports do have increased risk of head and neurological damage, we think having a designated slot for a neurologist is appropriate and support the legislation.”
ARGUMENTS IN OPPOSITION:
None on file
SUNSET ISSUES FOR CONSIDERATION:
In preparation for the sunset hearings, committee staff publishes background papers that identify outstanding issues relating to the entity being reviewed. The background papers are available on the Committee’s website: https://abp.assembly.ca.gov/jointsunsethearings. While all of the issues identified in the background paper remain available for discussion, the following are currently being addressed in the amendments to this bill or otherwise actively discussed:
- Issue #2: Retired Fighters. The commission administers a Boxers’ Pension Plan, which was originally established in 1982 aimed at providing monetary resources to retired professional boxers. Current law, specifies that, if the fee on admissions for a boxing contest exceeds $70,000, the amount in excess of $70,000 shall be paid one-half to the commission and one-half to the Boxers’ Pension Fund. The law further requires any Boxers’ Pension Plan established by the commission to be actuarially sound. The law specifies that the Boxers’ Pension Fund is specifically not a retirement fund.
Commission regulations require a promoter to contribute $.88 on every ticket, excluding a working complimentary ticket, up to a maximum contribution of $4,600 per show, to the Boxers’ Pension Fund. Regulations further specify that a participating boxer shall become vested in the amount credited to the participating boxer's regular account when they have fought in at least ten scheduled rounds per calendar year during each of four calendar years without an intervening break in service, and have fought in at least 75 scheduled rounds without a break in service.
In 2005, the Bureau of State Audits (BSA) found that the fund was poorly administered and very few boxers have or would receive benefits from the Boxers’ Pension Fund. The Auditor noted that from 2001-2004, total benefits paid to boxers were $36,000, while administrative costs were six times greater. Further, the Auditor also noted that, as of 2003, only 14 percent of licensed boxers were vested and their accounts were very low. On December 31, 2005, only 43 participants were eligible for retirement benefits totaling just $430,000. BSA recommended reducing vesting requirements and increasing the gate fees used to fund the plan. According to a report issued by BSA in January 2011, these recommendations from 2005 remained unresolved. The commission responded to BSA’s recommendation by stating that it would conduct a study on the impact of reducing vesting requirements and pursue changes in statute or regulation or an increase in gate fees.
During the 2013 sunset review oversight of the commission, questions were raised as to whether a lump sum payment was a proper benefit to a fighter, or whether there were potentially more appropriate means by which to assist these athletes like providing health insurance benefits, connecting fighters to coverage for medical services, or directing retired boxers to medical coverage options like Covered California so they are able to receive ongoing, consistent medical treatment that is not likely covered by a one-time payment. During the 2019 sunset review oversight of the commission, it noted that it had increased Pension Plan distributions to qualified retired boxers, despite the obstacles in locating potential claimants. At the time, there were almost 300 covered boxers and almost $3.8 million in fund assets, with 11 boxers paid just over $176,000 in 2018. The commission advised that establishing a MMA Pension Plan was outlined in its Strategic Plan, but questions were raised at the time about how a MMA Pension Plan would be structured, given its specificity for boxers, as well as the general challenges associated with underfunded pensions.
A May 2023 Los Angeles Times article, “California created the nation’s only pension for aging boxers. But it’s failing many of them”, found that the pension plan does not have enough money to pay all unclaimed pensions without reducing the amount of money received by fighters who become eligible in future years - with just $294,000 set aside for the $2.1 million owed to boxers who haven't been paid. Many boxers have not claimed them because, in many cases according to the article, they were unaware that they were even eligible for a pension. While the commission has made recent efforts to advertise this benefit to boxers, the article states that the commission has waited until a boxer turns 50 before attempting to contact them for the first time, and by then, the vast majority of addresses are no longer current. The article found that approximately 200 boxers could have claimed a pension last year, but only 12 of them did so. The article also noted that the commission’s contracted pension administrator, Benefit Resources, has raised alarms in the past about the impact of too many boxers coming forward with late claims in the same year which creates uncertainty and instability in the fund.
A subsequent Los Angeles Times article in March 2024, “After losing a world champion boxer’s pension records, California finally admits error”, highlighted action taken by the commission at its March 4, 2024 meeting to pay a retired boxer a lump sum payment after previously denying payment, only to learn that the fighter’s pension records had somehow been lost.
In 2023, the commission sponsored AB 1136 (Carrillo), Chapter 466, Statutes of 2023, to establish a MMA Retirement Benefit Fund. The MMA Fund is financed by any of the following:
- An assessment in the amount of one dollar ($1) on each ticket sold for a professional MMA contest held in the state. The amount may be raised to up to $2 through regulations.
- Revenue through the sale of special interest license plates and other commission-branded items, including, but not limited to, sport paraphernalia and souvenirs.
- Contributions by martial artists, managers, promoters, or any one or more of these persons, in an amount sufficient to finance the MMA Fund.
The MMA Fund fighter eligibility and vesting requirements are outlined in the State Act, rather than regulations, as the Boxers’ Pension Fund administration is outlined. The commission has requested a number of changes related to these programs, including changes aimed at increasing revenue for the Boxers’ Pension Fund.
Staff Recommendation: The commission should advise the committees whether there are better means by which to assist retired boxers lead a healthy life after years of participation in the sport and ensure that they receive important medical care. The commission should provide an update about the ability for the commission’s current structure and revenues to support this important work. The commission should provide an update on formal, ongoing outreach efforts to boxers and future efforts to MMA athletes. The commission should provide an update on necessary statutory changes to the State Act related to these funds and programmatic efforts. The committees should evaluate whether the current statute and regulations meets the intended purpose of assisting retired athletes.
Commission Response: The Commission plans to engage and offer financial literacy education to athletes in addition to not in lieu of the financial assistance offered by the pension/benefit funds. The Commissions revenues fluctuate but providing pension/benefit funds remains a top priority.
Sunset Recommendation: None at this time—discussions are still ongoing.
- Issue #3: Codification of Regulations and State Act Modernization. The State Act was written decades ago and, while updates have been made over the years, structural changes to ensure efficient Commission operations may be needed. Additionally, much of the athlete safety and provisions governing events, contracts, and fighter well-being are outlined in regulations rather than in the State Act. The Commission has historically been hindered in updating its regulations quickly due to delays in the process and general timeframes that may not allow the Commission to make appropriate changes in a timely manner.
Staff Recommendation. The Commission should work with the Committees to amend the State Act as necessary in order to modernize the law and further promote the clear and effective regulation of events, prioritizing the safety and welfare of athlete licensees.
Commission Response: Codification of regulations would be helpful to the Commission, especially with pending regulations. In addition, Hepatitis C treatments are now different than when the Boxing Act was last amended on this statute, and an amendment recognizing new treatments would be welcome.
Sunset Recommendation: Authorize the commission to develop a process for approving fighters who may have hepatitis C antibodies but are otherwise contagious and include the following issues:
- Minimum Purse. In response to concerns that athletes were not provided a minimum purse for fighting and exploitation by promoters who may pay them as little as $1.00 instead of an industry minimum, the commission promulgated regulations to set a minimum purse amount of $100 per round. The commission believes this amount should be updated to $200 and included in the State Act.
Recommendations: Increase the minimum purse to $200 and authorize the Commission to increase that amount in regulations.
- Ambulance Transport. Commission regulations require an ambulance staffed by at least one paramedic is available at the site during and after an event and that it remains on site until released by a ringside physician. Commission regulations require an ambulance at events, but concerns have been raised that fighter safety is significantly impacted when paramedics do not transport injured fighters in a timely manner to receive critical care. It would be helpful for the committees to understand what discussions the commission has held with stakeholders to ensure that fighter safety is prioritized and that appropriate judgment is made swiftly to protect these individuals. It would be helpful for the committees to understand what steps need to be taken so that injured fighters are transported from events as necessary.
Recommendations: Require the onsite ambulance to take fighters to the hospital if the ringside physician orders it.
- Issue #5: Fluidity in Revenues. The commission is not able to adequately predict revenues over time in the manner that other licensing boards do, given the fluid nature of the commission licensing revenues and fluctuations in the sports that may dictate when events do or do not take place. The budget process requires that estimates be made many months in advance in order for the commission’s spending authority to be approved. The commission faces a completely different fund situation depending on events that are held in California.
The issue of the commission’s staffing has continued to be of concern during past sunset review oversight discussions, audits, and budget discussions about appropriate expenditures. Athletic inspectors in particular perform a critical function in overseeing the safety of events and well-being of licensees at events. Inspectors facilitate key aspects of an event, including all of the pre-bout activities like weigh-ins and proper hand wrapping and ensuring only authorized individuals are in locker rooms. Inspectors also must be present in order for fighters to get paid after a fight. If too few athletic inspectors are assigned to an event, key fighter safety protections may be overlooked.
Due to the COVID-19 pandemic and issuance of a statewide directive to prohibit all major gatherings, all major sporting events were cancelled, which in turn impacted the commission’s ability to generate revenue mid-way through fiscal year 2019-20 and throughout 2020-21. During this time, the Commission’s revenue dropped to approximately $1.8 million in 2019-20 and to only $894,000 in 2020-21. During this time, the commission relied on its fund reserves and various cost saving measures to support its operations during the height of the pandemic. Between fiscal years 2019-20 and 2020-21, the commission’s fund reserves sharply dropped from $1.6 million (12.1 months in reserve) in 2019-20 to $757,000 (4.0 months in reserve) by the end of 2020-21.
In 2021-22, major combat sporting events were allowed to resume in California and the commission generated roughly $1.9 million in revenues, a significant improvement from the prior year. However, the commission required additional spending authority of $340,000 to pay the Office of the Attorney General for unanticipated litigation costs which further depleted the commission’s fund reserves to $343,000 (1.7 months in reserve) by the end of the fiscal year. Based on expenditure and revenue projections, the commission is anticipated to generate $1.9 million in revenues and expend approximately $2.4 million, which will cause a fund insolvency of $79,000.
The commission sponsored AB 1703 (Carrillo), Chapter 591, Statutes of 2023, which increased the cap on the amount of admissions revenue that promoters must report from $2,000,000 to $4,000, and increased the cap on the admissions revenue fee from $100,000 to $200,000. The commission believes this will help to ensure that it remains solvent, however, with rising costs of doing business for state agencies, increased administrative workload at the commission level related to a new MMA Fund and a long overdue business modernization project, as well as other important initiatives the commission is undertaking (such as working to provide financial literacy information to fighters), it would be helpful for the committees to understand what additional resources, revenues, and adjustments the commission needs to continue its critical work.
Staff Recommendation: The commission should explain whether it can effectively protect fighters and oversee events with its current spending authority and other staffing needs it has to improve operations and promote fighter safety. The commission should advise the committees if its inability to adjust expenditures on an ongoing basis, as well as budget process delays in changing its spending authority on a regular basis, impede its health and safety efforts.
Commission Response: The Commission requests a continuous appropriation. As the Legislature has noted multiple times, the Commission has very unpredictable revenue.
The expenditures are also unpredictable in regard to events. The stable expenditures of office staff, rent, and Pro Rata are only about half of the total expenditures. The remaining expenditures fluctuates based on the industry. If the Commission has a high-volume year, expenditures (as well as revenue) will be higher. Budgeting for the sports entertainment industry among the Commissions 43 licensed promoters is an educated guess at best. A continuous appropriation would be prudent and helpful.
Sunset Recommendation: None at this time—discussions are ongoing.
- Issue #8: Technical Changes. There are instances in the State Act where technical clarifications may improve commission operations and application of the statutes governing the commission’s work.
Staff Recommendation: The committees may wish to amend the Act to include technical clarifications.
Commission Response: The Commission agrees with Technical Changes.
Sunset Recommendation: Include technical changes.
- Issue #9: Continued Regulation by the Commission. California’s professional and amateur boxers, kickboxers and mixed martial arts athletes are better served with appropriate oversight by a commission, and the state benefits from holding these events in California. If the commission goes away, large scale events held in communities throughout the state will not happen, taking with them the economic windfall to local businesses. Most significantly, fighting will still take place, in an underground, unregulated environment that is not conducive to protecting athletes and promoting career opportunities and abilities of many young people. The most important work of the commission happens on the ground level, managing and overseeing events and promoting the well-being of the competitors participating in combat sporting events in California. While the commission has struggled with certain functions over the years like ensuring retired fighters receive benefits, the current membership and management have shown a commitment to improve the commission’s overall efficiency and effectiveness and are working cooperatively with the Legislature and the committees to bring about necessary changes.
Staff Recommendation: The commission should be continued, and reviewed again on a future date to be determined.
Sunset Recommendation: Extend the commission by four years.
REGISTERED SUPPORT:
California Orthopaedic Association
REGISTERED OPPOSITION:
None on file
Analysis Prepared by: Vincent Chee / B. & P. / (916) 319-3301
Date of Hearing: June 18, 2024
ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, AND TOURISM
Mike Gipson, Chair
SBPCA Bill Id:SB 1456
Author:(Ashby) – As Introduced Ver:February 16, 2024
SENATE VOTE: 37-0
SUBJECT: State Athletic Commission: Advisory Committee on Medical and Safety Standards
SUMMARY: This bill specifies that the California State Athletic Commission (CSAC or Commission) Advisory Committee on Medical and Safety Standards include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
Specifically, this bill:
- Specifies that the Commission must include on the Advisory Committee on Medical and Safety Standards at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
EXISTING LAW:
- Regulates and licenses combat sports under the Boxing Act, or State Athletic Commission Act, administered by the Commission. (Business and Professions Code (BPC) Sections 18600-18887)
- Establishes the Commission, under the Department of Consumer Affairs, consisting of seven members. This section shall remain in effect only until January 1, 2025, and as of that date is repealed. (BPC 18602)
- Defines “contest” and “match” synonymously to mean professional and amateur boxing, kickboxing, and martial arts exhibitions, and mean a fight, prizefight, boxing contest, pugilistic contest, kickboxing contest, martial arts contest, or sparring match, between two or more persons, where full contact is used or intended that may result or is intended to result in physical harm to the opponent. (BPC 18625(a))
- Requires every promoter who conducts a boxing or martial arts contest or wrestling exhibition and charges admission to, within 72 hours after the determination of the contest or exhibition, give the commission the following:
- A written report showing the amount of the gross receipts, not to exceed $4,000,000, and the gross price for (1) the contest or exhibition charged directly or indirectly and (2) the price for the sale, lease, or other exploitation of broadcasting and television rights of the contest or wrestling exhibition without any deductions, except as specified. (BPC 18824(a)(1))
- A fee of 5% of the amount paid for admission to the contest or wrestling exhibition, but no more than $200,000. The commission shall report to the Legislature on the fiscal impact of the $200,000 limit on fees collected by the commission for admissions revenues during its next sunset review. (BPC 18824(a)(2))
- A fee of up to 5% of the gross price for the sale, lease, or other exploitation of broadcasting or television rights, but no less than $1,000 or more than $35,000.
- Specifies that, if the fee on admissions for a boxing contest exceeds $70,000, the amount in excess of $70,000 shall be paid one-half to the commission and one-half to the Boxers’ Pension Fund. (BPC 18824(a)(2)(B))
- Establishes within the jurisdiction of the Commission an Advisory Committee on Medical and Safety Standards. This committee consists of six licensed physicians and surgeons appointed by the Commission for a term not to exceed four years, with the purpose of studying and recommending medical and safety standards for the conduct of boxing, wrestling, and martial arts contests. (BPC 18645)
FISCAL EFFECT: According to the Senate Appropriations Committee, the 2024-25 Governor’s Budget provides approximately $2.22 million (Athletic Commission Fund) and 10.7 positions to support the continued operation of the commission’s licensing and enforcement activities.
COMMENTS:
- Author’s Statement. According to the author, “This bill is necessary to make changes to the California State Athletic Commission to improve oversight of the regulated professions under the jurisdiction of the Commission.”
- Background. The Commission is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. Concerned with athlete injuries and death, the public established the Commission by initiative in 1924. The Commission is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act (Federal Boxing Act) and the California Boxing Act or State Athletic Commission Act (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 (MMA) and matches or exhibitions conducted, held or given in California. 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. In 2023, the Commission supervised 150 events.
As a special fund entity, the Commission receives no General Fund support, relying solely on fees set in statute and collected from regulatory and license fees. For each event held in California that the Commission regulates, the Commission collects a “gate fee” from the event promoter, which is a 5% fee on gross ticket sales for that event, not to exceed $200,000. The Commission also collects a “TV fee” from the event promoter if the event is broadcast on television, which is a 5% fee on the revenue a promoter collects from broadcasting rights, not to exceed $35,000.
The Commission licenses a number of individuals related to the participation in, oversight for, and management of events in California. The Commission does not require any formal education requirements for licensure of fighters, promoters, managers, seconds, matchmakers, referees, judges and timekeepers. However, licensees must possess a minimum level of skill to enable them to safely compete against one another and demonstrate their ability to perform. Licensees who do not fall into the combatant category such as referees, judges, timekeepers and ringside physicians (who are approved by the Commission) must have adequate knowledge of laws and rules so as not to jeopardize the health and safety of athletes. Many of the Commission’s licensees must also pass competency exams provided by the Commission unless they are licensed in other jurisdictions. Fighters must also pass medical examinations that determine whether their health or safety may be compromised by licensure and participation in an event.
The Commission has three Committees in statute and has established sport- and issue-specific Subcommittees at its discretion over the past two years. The Advisory Committee on Medical and Safety Standards, established in statute, consists of six licensed physicians and surgeons appointed by the Commission who meet for the purpose of studying and recommending standards for contests
- Retired fighters. The Commission administers a Boxers’ Pension Plan, which was originally established in 1982 and aimed at providing monetary resources to retired professional boxers. The law specifies that the Boxers’ Pension Fund is specifically not a retirement fund.
Commission regulations require a promoter to contribute $.88 on every ticket, excluding a working complimentary ticket, up to a maximum contribution of $4,600 per show, to the Boxers’ Pension Fund. (Title 4 of the California Code of Regulations (4 CCR) § 402). Regulations further specify that a participating boxer shall become vested in the amount credited to the participating boxer's regular account when they have fought in at least ten scheduled rounds per calendar year during each of four calendar years without an intervening break in service, and have fought in at least 75 scheduled rounds without a break in service.
In 2005, the Bureau of State Audits (BSA) found that the fund was poorly administered and very few boxers have or would receive benefits from the Boxers’ Pension Fund. The Auditor noted that from 2001-2004, total benefits paid to boxers were $36,000, while administrative costs were six times greater. Further, the Auditor also noted that, as of 2003, only 14 percent of licensed boxers were vested and their accounts were very low. On December 31, 2005, only 43 participants were eligible for retirement benefits totaling just $430,000. BSA recommended reducing vesting requirements and increasing the gate fees used to fund the plan. According to a report issued by BSA in January 2011, these recommendations from 2005 remained unresolved. The Commission responded to BSA’s recommendation by stating that it would conduct a study on the impact of reducing vesting requirements and pursue changes in statute or regulation or an increase in gate fees.
During the 2013 sunset review oversight of the Commission, questions were raised as to whether a lump sum payment was a proper benefit to a fighter, or whether there were potentially more appropriate means by which to assist these athletes like providing health insurance benefits, connecting fighters to coverage for medical services, or directing retired boxers to medical coverage options like Covered California so they are able to receive ongoing, consistent medical treatment that is not likely covered by a one-time payment. During the 2019 sunset review oversight of the Commission, it noted that it had increased Pension Plan distributions to qualified retired boxers, despite the obstacles in locating potential claimants. At the time, there were almost 300 covered boxers and almost $3.8 million in fund assets, with 11 boxers paid just over $176,000 in 2018. The Commission advised that establishing a MMA Pension Plan was outlined in its Strategic Plan, but questions were raised at the time about how a MMA Pension Plan would be structured, given its specificity for boxers, as well as the general challenges associated with underfunded pensions.
At its March 2023 meeting, it was reported that the Commission had deposited $65,597.14 to the Boxers’ Pension Fund in the current fiscal year and that the Fund has approximately $4.658 million as of the beginning of 2023.
In 2023, the Commission sponsored AB 1136 (Haney, Chapter 466, Statutes of 2023) to establish a MMA Retirement Benefit Fund. The MMA Fund is financed by any of the following:
- An assessment in the amount of one dollar ($1) on each ticket sold for a professional MMA contest held in the state. The amount may be raised to up to $2 through regulations.
- Revenue through the sale of special interest license plates and other commission-branded items, including, but not limited to, sport paraphernalia and souvenirs.
- Contributions by martial artists, managers, promoters, or any one or more of these persons, in an amount sufficient to finance the MMA Fund.
The MMA Fund fighter eligibility and vesting requirements are outlined in the Act, rather than regulations, as the Boxers’ Pension Fund administration is outlined.
The Commission has requested a number of changes related to these programs, including changes aimed at increasing revenue for the Boxers’ Pension Fund.
- Arguments in support. According to the California Orthopedic Association in support, “Since these sports do have increased risk of head and neurological damage, we think having a designated slot for a neurologist is appropriate and support the legislation.”
- Committee amendments. On March 12, 2024, the Commission participated in a Sunset Review Oversight Hearing, where issues and recommendations for the Commission were identified. The following committee amendments include some of the recommendations provided in the background paper, put together by the Senate Committee on Business, Professions, and Economic Development, and the Assembly Committee on Business and Professions, as well as other technical changes.
- Move back the sunset date of the Commission from January 1, 2025 to January 1, 2029.
- Codify an increase of the minimum purse for fighters regulated under the Boxing Act, or State Athletic Commission Act (State Act), administered by the California State Athletic Commission (CSAC or Commission) (BPC 18600-18887) from $100 to $200 per round, with the Commission able to raise the minimum purse through regulation.
- Increase in statute contributions to the Boxers’ Pension Fund from $0.88 to $1.00 per ticket, matching how contributions were put in place for the Mixed Martial Arts Retirement Benefit Fund (MMA Fund) by AB 1136 (Haney) in 2023 (BPC 18888.2), and increasing the maximum contribution from $4,600 to $10,000.
- Add in statute that in the event that a fighter needs immediate medical care as ordered by the Commission ringside physician, that the onsite ambulance assigned to the event shall transport, without delay, to a trauma hospital.
- BPC 18845 (c) has a typographical error that stating that, “Disobedience to a supoena may be punished as a contempt by the superior court.” The amended section should read, “Disobedience of a subpoena may be punished as a contempt by the superior court.”
- Amend the State Act to recognize that treatments for Hepatitis C would allow a fighter to compete safely without risk of transmitting the virus to another fighter. Fighters undergo antigen/antibody tests during licensing. These tests can detect Hepatitis C even if there is minimal to no risk of passing the virus to an opponent. The amendment will allow the Commission to establish, by regulation, a review and approval process for applicants or licensees under this chapter that test positive for hepatitis C pursuant to the required blood tests described in Section 280 of Title 4 of the California Code of Regulations. The commission may consult with the Advisory Committee on Medical and Safety Standards to establish the review and approval process
- Double-referral. Should the bill pass from this committee, it will be re-referred to the Assembly Committee on Business and Professions.
- Prior and related legislation:
- AB 1136 (Haney), Chapter 466, Statutes of 2023, required the Commission to establish the Mixed Martial Arts Retirement Benefit Fund (MMA Fund), and to establish a method for financing the MMA Fund, including by a specified assessment on tickets to events under the commission’s jurisdiction, by revenue generated through the sale of special interest license plates and other commission-branded items, including, but not limited to, sport paraphernalia and souvenirs, and by contributions from mixed martial artists, managers, promoters, or any one or more of these persons.
- AB 1703 (Carrillo), Chapter 591, Statutes of 2023, increased the cap on the amount of admissions revenue that promoters must report from $2,000,000 to $4,000,000, and increased the cap on the admissions revenue fee from $100,000 to $200,000.
- SB 1443 (Roth), Chapter 625, Statutes of 2022, extended the sunset date for the Commission from January 1, 2024 to January 1, 2025.
- AB 1523 (Assembly Committee on Business and Professions), Chapter , Statutes of 2019, extended the sunset date for the Commission from January 1, 2020 to January 1, 2024, and authorized the commission to employ a chief athletic inspector and an assistant chief athletic inspector.
- SB 469 (Hill), Chapter 316, Statutes of 2015, extended the sunset date for the Commission from January 1, 2016 to January 1, 2020. The bill also prohibited the administration or use of any drugs, alcohol, stimulants, or injections in any part of the body or the use of any specified prohibited substances by a professional or amateur boxer or martial arts fighter licensed by the commission. It authorized the commission to conduct testing at any time during the period of licensure to ensure compliance with the prohibition, and made a licensee in violation of the prohibition subject to a fine of up to 40% of the value of the total purse.
REGISTERED SUPPORT / OPPOSITION:
Support
California Orthopedic Association
Opposition
None on file.
Analysis Prepared by: Brian V. Anderson, Jr. / A.,E.,S., & T. / (916) 319-3450
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 1456 |
THIRD READING
Bill No: SB 1456
Author: Ashby (D)
Introduced: 2/16/24
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 12-0, 4/22/24
AYES: Ashby, Nguyen, Alvarado-Gil, Archuleta, Becker, Dodd, Eggman, Glazer, Niello, Roth, Smallwood-Cuevas, Wilk
NO VOTE RECORDED: Menjivar
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24
AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab
SUBJECT: State Athletic Commission: Advisory Committee on Medical and Safety Standards
SOURCE: Author
DIGEST:
This bill specifies that the California State Athletic Commission (CSAC or Commission) Advisory Committee on Medical and Safety Standards include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
ANALYSIS:
Existing law:
- Regulates and licenses combat sports under the Boxing Act, or State Athletic Commission Act, administered by the Commission (Business and Professions Code (BPC) §§ 18600-18887)
- Establishes the Commission until January 1, 2025. (BPC § 18602)
This bill:
Specifies that the CSAC Advisory Committee on Medical and Safety Standards include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
Background
In March 2024, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of ten regulatory entities including the Commission. The Committees conducted two oversight hearings. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees, and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year. The bill will be amended to reflect necessary statutory updates and the continuation of the Commission.
The Commission is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. Concerned with athlete injuries and death, the public established the Commission by initiative in 1924. The Commission is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act (Federal Boxing Act) and the California Boxing Act or State Athletic Commission Act (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 (MMA) and matches or exhibitions conducted, held or given in California. 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. In 2023, the Commission supervised 150 events.
As a special fund entity, the Commission receives no General Fund support, relying solely on fees set in statute and collected from regulatory and license fees. For each event held in California that the Commission regulates, the Commission collects a “gate fee” from the event promoter, which is a 5% fee on gross ticket sales for that event, not to exceed $200,000. The Commission also collects a “TV fee” from the event promoter if the event is broadcast on television, which is a 5% fee on the revenue a promoter collects from broadcasting rights, not to exceed $35,000.
The Commission licenses a number of individuals related to the participation in, oversight for, and management of events in California. The Commission does not require any formal education requirements for licensure of fighters, promoters, managers, seconds, matchmakers, referees, judges and timekeepers. However, licensees must possess a minimum level of skill to enable them to safely compete against one another and demonstrate their ability to perform. Licensees who do not fall into the combatant category such as referees, judges, timekeepers and ringside physicians (who are approved by the Commission) must have adequate knowledge of laws and rules so as not to jeopardize the health and safety of athletes. Many of the Commission’s licensees must also pass competency exams provided by the Commission unless they are licensed in other jurisdictions. Fighters must also pass medical examinations that determine whether their health or safety may be compromised by licensure and participation in an event.
The Commission has three Committees in statute and has established sport- and issue-specific Subcommittees at its discretion over the past two years. The Advisory Committee on Medical and Safety Standards, established in statute, consists of six licensed physicians and surgeons appointed by the Commission who meet for the purpose of studying and recommending standards for contests.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
The 2024-25 Governor’s Budget provides approximately $2.22 million (Athletic Commission Fund) and 10.7 positions to support the continued operation of the commission’s licensing and enforcement activities.
SUPPORT: (Verified 5/16/24)
California Orthopaedic Association
OPPOSITION: (Verified 5/16/24)
None received
ARGUMENTS IN SUPPORT: The California Orthopaedic Association writes:
“Since these sports do have increased risk of head and neurological damage, we think having a designated slot for a neurologist is appropriate and support the legislation.”
Prepared by: Sarah Mason / B., P. & E.D. /
5/17/24 11:56:27
**** END ****
SENATE COMMITTEE ON
Senator Anna Caballero, Chair
2023 - 2024 Regular Session
SB 1456 (Ashby) - State Athletic Commission: Advisory Committee on Medical and Safety Standards
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
SB 1456 is the sunset bill for the California State Athletic Commission (CSAC) and is intended to make changes recommended during the joint sunset review of the commission.
Fiscal Impact:
The 2024-25 Governor’s Budget provides approximately $2.22 million (Athletic Commission Fund) and 10.7 positions to support the continued operation of the commission’s licensing and enforcement activities.
Background:
CSAC is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. CSAC is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act (Federal Boxing Act) and the California Boxing Act or State Athletic Commission Act (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 (MMA) and matches or exhibitions conducted, held or given in California. CSAC 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. In 2023, the Commission supervised 150 events.
CSAC licenses a number of individuals related to the participation in, oversight for, and management of events in California. CSAC does not require any formal education requirements for licensure of fighters, promoters, managers, seconds, matchmakers, referees, judges and timekeepers. However, licensees must possess a minimum level of skill to enable them to safely compete against one another and demonstrate their ability to perform. Licensees who do not fall into the combatant category such as referees, judges, timekeepers and ringside physicians (who are approved by the CSAC) must have adequate knowledge of laws and rules so as not to jeopardize the health and safety of athletes. Many of the CSAC’s licensees must also pass competency exams provided by the Commission unless they are licensed in other jurisdictions. Fighters must also pass medical examinations that determine whether their health or safety may be compromised by licensure and participation in an event.
Proposed Law:
Specifies that the CSAC Advisory Committee on Medical and Safety Standards include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties.
Related Legislation:
SB 1452 (Ashby, 2024) is the California Architects Board and Landscape Architects Technical Committee sunset bill. SB 1452 is pending in this committee.
SB 1453 (Ashby, 2024) is the Dental Board of California sunset bill. SB 1453 is pending in this committee.
SB 1454 (Ashby, 2024) is the Bureau of Security and Investigative Services sunset bill. SB 1454 is pending in this committee.
SB 1455 (Ashby, 2024) is the Contractors State License Board sunset bill. SB 1455 is pending in this committee.
AB 3251 (Assembly Business and Professions Committee, 2024) is the Board of Accountancy sunset bill. AB 3251 is pending in the Assembly Appropriations Committee.
AB 3252 (Assembly Business and Professions Committee, 2024) is the Court Reporters Board sunset bill. AB 3252 is pending in the Assembly Appropriations Committee.
AB 3253 (Assembly Business and Professions Committee, 2024) is the Board for Professional Engineers, Land Surveyors and Geologists sunset bill. AB 3253 is pending in the Assembly Appropriations Committee.
AB 3254 (Assembly Business and Professions Committee, 2024) is the Cemetery and Funeral Bureau sunset bill. AB 3254 is pending in the Assembly Appropriations Committee.
AB 3255 (Assembly Business and Professions Committee, 2024) is the Board of Vocational Nursing and Psychiatric Technicians sunset bill. AB 3255 is pending in the Assembly Appropriations Committee.
-- END --
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Angelique Ashby, Chair
2023 - 2024 Regular
Bill No: Hearing Date: April 22, 2024
Author: | |||
Version: | February 16, 2024 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Sarah Mason | ||
Subject:
SUMMARY:
Specifies that the California State Athletic Commission (CSAC or Commission) Advisory Committee on Medical and Safety Standards include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties
Existing law:
- Regulates and licenses combat sports under the Boxing Act, or State Athletic Commission Act, administered by the Commission (Business and Professions Code (BPC) §§ 18600-18887)
- Establishes the Commission until January 1, 2025. (BPC § 18602)
This bill specifies that the California State Athletic Commission (CSAC or Commission) Advisory Committee on Medical and Safety Standards include at least one licensed physician and surgeon certified in neurology by a specialty board that is a member board of the American Board of Medical Specialties
FISCAL EFFECT:
Unknown. This bill is keyed fiscal by Legislative Counsel.
COMMENTS:
- Purpose. This bill is one of five sunset bills sponsored by the Author. According to the Author, “this bill is necessary to make changes to the California State Athletic Commission to improve oversight of the regulated professions under the jurisdiction of the Commission.”
- Oversight Hearings and Sunset Review of Licensing Boards and Programs. In March 2024, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of ten regulatory entities including the Commission. The Committees conducted two oversight hearings. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees, and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.
- Background on CSAC. The Commission is responsible for protecting the health and safety of its licensees: boxers, kickboxers, and other martial arts athletes. Concerned with athlete injuries and death, the public established the Commission by initiative in 1924. The Commission is responsible for implementation and enforcement of the Federal Muhammad Ali Boxing Reform Act (Federal Boxing Act) and the California Boxing Act or State Athletic Commission Act (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 (MMA) and matches or exhibitions conducted, held or given in California. 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. In 2023, the Commission supervised 150 events.
As a special fund entity, the Commission receives no General Fund support, relying solely on fees set in statute and collected from regulatory and license fees. For each event held in California that the Commission regulates, the Commission collects a “gate fee” from the event promoter, which is a 5% fee on gross ticket sales for that event, not to exceed $200,000. The Commission also collects a “TV fee” from the event promoter if the event is broadcast on television, which is a 5% fee on the revenue a promoter collects from broadcasting rights, not to exceed $35,000.
The Commission licenses a number of individuals related to the participation in, oversight for, and management of events in California. The Commission does not require any formal education requirements for licensure of fighters, promoters, managers, seconds, matchmakers, referees, judges and timekeepers. However, licensees must possess a minimum level of skill to enable them to safely compete against one another and demonstrate their ability to perform. Licensees who do not fall into the combatant category such as referees, judges, timekeepers and ringside physicians (who are approved by the Commission) must have adequate knowledge of laws and rules so as not to jeopardize the health and safety of athletes. Many of the Commission’s licensees must also pass competency exams provided by the Commission unless they are licensed in other jurisdictions. Fighters must also pass medical examinations that determine whether their health or safety may be compromised by licensure and participation in an event.
The Commission has three Committees in statute and has established sport- and issue-specific Subcommittees at its discretion over the past two years. The Advisory Committee on Medical and Safety Standards, established in statute, consists of six licensed physicians and surgeons appointed by the Commission who meet for the purpose of studying and recommending standards for contests.
- Sunset Review Oversight of the Commission. The Commission was reviewed through sunset review oversight in 2015 and 2019. Due to the constraints of the COVID-19 pandemic on legislative business, the legislature extended the BSIS’s sunset date, by one year, until January 1, 2025, in order to allow for a comprehensive review schedule. Following are select issues pertaining to the Commission, along with background information concerning the particular issue. As the committees, the Commission, DCA, and stakeholders continue to discuss statutory changes necessary to improve operations at CSAC, following are issues that may be addressed through legislation or continued discussion, as raised during the Sunset Review Oversight Hearing of the Commission, and those contained in the staff background paper.
- Retired Fighters.
Background: Pursuant to the State Act ((BPC § 18881(a)), the Commission administers a Boxers’ Pension Plan, which was originally established in 1982 and aimed at providing monetary resources to retired professional boxers. Current law specifies that if the fee on admissions for a boxing contest exceeds $70,000, the amount in excess of $70,000 shall be paid one-half to the Commission and one-half to the Boxers’ Pension Fund (BPC § 18824(a)(2)(B)). The law further requires any Boxers’ Pension Plan established by the Commission to be actuarially sound (BPC § 18881(c)). The law specifies that the Boxers’ Pension Fund is specifically not a retirement fund.
Commission regulations require a promoter to contribute $.88 on every ticket, excluding a working complimentary ticket, up to a maximum contribution of $4,600 per show, to the Boxers’ Pension Fund. (Title 4 of the California Code of Regulations (4 CCR) § 402). Regulations further specify that a participating boxer shall become vested in the amount credited to the participating boxer's regular account when they have fought in at least ten scheduled rounds per calendar year during each of four calendar years without an intervening break in service, and have fought in at least 75 scheduled rounds without a break in service.
In 2005, the Bureau of State Audits (BSA) found that the fund was poorly administered and very few boxers have or would receive benefits from the Boxers’ Pension Fund. The Auditor noted that from 2001-2004, total benefits paid to boxers were $36,000, while administrative costs were six times greater. Further, the Auditor also noted that, as of 2003, only 14 percent of licensed boxers were vested and their accounts were very low. On December 31, 2005, only 43 participants were eligible for retirement benefits totaling just $430,000. BSA recommended reducing vesting requirements and increasing the gate fees used to fund the plan. According to a report issued by BSA in January 2011, these recommendations from 2005 remained unresolved. The Commission responded to BSA’s recommendation by stating that it would conduct a study on the impact of reducing vesting requirements and pursue changes in statute or regulation or an increase in gate fees.
During the 2013 sunset review oversight of the Commission, questions were raised as to whether a lump sum payment was a proper benefit to a fighter, or whether there were potentially more appropriate means by which to assist these athletes like providing health insurance benefits, connecting fighters to coverage for medical services, or directing retired boxers to medical coverage options like Covered California so they are able to receive ongoing, consistent medical treatment that is not likely covered by a one-time payment. During the 2019 sunset review oversight of the Commission, it noted that it had increased Pension Plan distributions to qualified retired boxers, despite the obstacles in locating potential claimants. At the time, there were almost 300 covered boxers and almost $3.8 million in fund assets, with 11 boxers paid just over $176,000 in 2018. The Commission advised that establishing a MMA Pension Plan was outlined in its Strategic Plan, but questions were raised at the time about how a MMA Pension Plan would be structured, given its specificity for boxers, as well as the general challenges associated with underfunded pensions.
At its March 2023 meeting, it was reported that the Commission had deposited $65,597.14 to the Boxers’ Pension Fund in the current fiscal year and that the Fund has approximately $4.658 million as of the beginning of 2023.
In 2023, the Commission sponsored AB 1136 (Carrillo, Chapter 466, Statutes of 2023) to establish a MMA Retirement Benefit Fund. The MMA Fund is financed by any of the following:
- An assessment in the amount of one dollar ($1) on each ticket sold for a professional MMA contest held in the state. The amount may be raised to up to $2 through regulations.
- Revenue through the sale of special interest license plates and other commission-branded items, including, but not limited to, sport paraphernalia and souvenirs.
- Contributions by martial artists, managers, promoters, or any one or more of these persons, in an amount sufficient to finance the MMA Fund.
The MMA Fund fighter eligibility and vesting requirements are outlined in the Act, rather than regulations, as the Boxers’ Pension Fund administration is outlined.
The Commission has requested a number of changes related to these programs, including changes aimed at increasing revenue for the Boxers’ Pension Fund.
Recommendations: The Commission should advise the Committees whether there are better means by which to assist retired boxers lead a healthy life after years of participation in the sport and ensure that they receive important medical care. The Commission should provide an update about the ability for the Commission’s current structure and revenues to support this important work. The Commission should provide an update on formal, ongoing outreach efforts to boxers and future efforts to MMA athletes. The Commission should provide an update on necessary statutory changes to the State Act related to these funds and programmatic efforts. The Committees should evaluate whether the current statute and regulations meets the intended purpose of assisting retired athletes.
- Codification of Commission Regulations and State Act Modernization.
Background: The State Act was written decades ago and, while updates have been made over the years, structural changes to ensure efficient Commission operations may be needed. Additionally, much of the athlete safety and provisions governing events, contracts, and fighter well-being are outlined in regulations rather than in the State Act. The Commission has historically been hindered in updating its regulations quickly due to delays in the process and general timeframes that may not allow the Commission to make appropriate changes in a timely manner.
Recommendations: The Commission should work with the Committees to amend the State Act as necessary in order to modernize the law and further promote the clear and effective regulation of events, prioritizing the safety and welfare of athlete licensees.
- Minimum Purse.
- Minimum Purse.
Background: In response to concerns that athletes were not provided a minimum purse for fighting and exploitation by promoters who may pay them as little as $1.00 instead of an industry minimum, the Commission promulgated regulations to set a minimum purse amount of $100 per round. The Commission believes this amount should be updated to $200 and included in the State Act.
Recommendations: The Commission should update the Committees on this effort. The Committees may wish to update the Act to ensure that fighters are provided appropriate compensation.
- Ambulance Transport.
Background: Commission regulations require an ambulance staffed by at least one paramedic is available at the site during and after an event and that it remains on site until released by a ringside physician. Commission regulations require an ambulance at events, concerns have been raised that fighter safety is significantly impacted when paramedics do not transport injured fighters in a timely manner to receive critical care. It would be helpful for the Committees to understand what discussions the Commission has held with stakeholders to ensure that fighter safety is prioritized and that appropriate judgment is made swiftly to protect these individuals. It would be helpful for the Committees to understand what steps need to be taken so that injured fighters are transported from events as necessary.
Recommendations: The Commission should update the Commission on necessary updates to state law to ensure that injured fighters receive proper, timely care.
- Technical Changes.
Background: There may be a number of technical statutory changes or updates, which may improve the CAB operations. For example, the CAB would like to require that licensees who have an email address of file with the CAB maintain that email address to maximize the online licensing and renewal system and provide more timely updates to its licensing population, Additionally, the CAB requests to revise code sections to include gender neutral language.
Recommendations: The Committees may wish to amend the Act to include technical clarifications.
- Arguments in Support. The California Orthopaedic Association writes that “Since these sports do have increased risk of head and neurological damage, we think having a designated slot for a neurologist is appropriate and support the legislation.”
SUPPORT AND OPPOSITION:
Support:
California Orthopaedic Association
Opposition:
None received
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Discussed in Hearing
Senate Floor
Senate Standing Committee on Business, Professions and Economic Development
Assembly Floor
Assembly Standing Committee on Business and Professions
Assembly Standing Committee on Arts, Entertainment, Sports, and Tourism
Senate Standing Committee on Business, Professions and Economic Development
Senate Standing Committee on Business, Professions and Economic Development
Senate Standing Committee on Business, Professions and Economic Development
Bill Author
Bill Co-Author(s):