Bill Text: CA AB1703 | 2023-2024 | Regular Session | Chaptered

California Assembly Bill 1703

Bill Title: State Athletic Commission: boxing.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 591, Statutes of 2023. [AB1703 Detail]

Download: California-2023-AB1703-Chaptered.html

Assembly Bill No. 1703

CHAPTER 591

An act to amend Section 18824 of the Business and Professions Code, relating to business.

[ Approved by Governor October 08, 2023. Filed with Secretary of State October 08, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 1703, Wendy Carrillo. State Athletic Commission: boxing.

Existing law, the Boxing Act, also known as the State Athletic Commission Act, creates within the Department of Consumer Affairs the State Athletic Commission. Existing law establishes the Boxers’ Pension Fund, a retirement fund under the exclusive control of the commission, that is funded by an assessment on tickets that is transferred to the commission following a contest or wrestling exhibition, as prescribed, and by contributions by boxers, managers, promoters, or any one or more of these persons. Existing law requires all moneys in the Boxers’ Pension Fund to be continuously appropriated to be used exclusively for the purposes and administration of the pension fund. Existing law prohibits any moneys with the Boxers’ Pension Fund from being deposited or transferred to the General Fund.

Existing law requires every person who conducts a contest or wrestling exhibition, within 72 hours after the determination of every contest or wrestling exhibition for which admission is charged and received, to furnish to the commission, among other things, a written report executed under penalty of perjury by one of the officers, showing the amount of the gross receipts, not to exceed $2,000,000, and a fee of 5% of the amount paid for admission to the contest or wrestling exhibition, but prohibits the fee from exceeding $100,000. Existing law requires the commission to report to a specified legislative committee on the fiscal impact of that $100,000 limitation.

This bill would instead require a written report executed under penalty of perjury by one of the officers, showing the amount of the gross receipts, not to exceed $4,000,000, and prohibit the fee of 5% of the amount paid for admission to the contest or wrestling exhibition from exceeding $200,000.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 18824 of the Business and Professions Code is amended to read:

18824.

(a) Except as provided in Sections 18646 and 18832, every person who conducts a contest or wrestling exhibition shall, within 72 hours after the determination of every contest or wrestling exhibition that admission is charged and received, furnish to the commission the following:

(1) A written report executed under penalty of perjury by one of the officers, showing the amount of the gross receipts, not to exceed four million dollars ($4,000,000), and the gross price for the contest or wrestling exhibition charged directly or indirectly and no matter by whom received, for the sale, lease, or other exploitation of broadcasting and television rights of the contest or wrestling exhibition, and without any deductions, except for expenses incurred for one broadcast announcer, telephone line connection, and transmission mobile equipment facility, which may be deducted from the gross taxable base when those expenses are approved by the commission.

(2) A fee of 5 percent, exclusive of any federal taxes paid thereon, of the amount paid for admission to the contest or wrestling exhibition, except that for any one contest, the fee shall not exceed the amount of two hundred thousand dollars ($200,000). The commission shall report to the Legislature on the fiscal impact of the two-hundred-thousand-dollar ($200,000) limit on fees collected by the commission for admissions revenues during its next sunset review.

(A) The amount of the gross receipts upon which the fee provided for in paragraph (2) is calculated shall not include any assessments levied by the commission under Section 18711.

(B) If the fee for any one boxing contest exceeds seventy thousand dollars ($70,000), the amount in excess of seventy thousand dollars ($70,000) shall be paid one-half to the commission and one-half to the Boxers’ Pension Fund.

(D) A fee is not due in the case of a person admitted free of charge. However, if the total number of persons admitted free of charge to a boxing, kickboxing, or martial arts contest, or wrestling exhibition exceeds 33 percent of the total number of spectators, then a fee of one dollar ($1) per complimentary ticket or pass used to gain admission to the contest shall be paid to the commission for each complimentary ticket or pass that exceeds the numerical total of 33 percent of the total number of spectators.

(E) The minimum fee for an amateur contest or exhibition shall not be less than one thousand dollars ($1,000). The minimum fee for a professional contest or exhibition shall not be less than one thousand two hundred fifty dollars ($1,250).

(3) A fee of up to 5 percent, to be established by the commission through regulations to become operative on or before July 1, 2008, and updated periodically as needed, of the gross price, exclusive of any federal taxes paid thereon, for the sale, lease, or other exploitation of broadcasting or television rights thereof, except that in no case shall the fee be less than one thousand dollars ($1,000) or more than thirty-five thousand dollars ($35,000).

(b) As used in this section, “person” includes a promoter, club, individual, corporation, partnership, association, or other organization, and “wrestling exhibition” means a performance of wrestling skills and techniques by two or more individuals, that admission is charged or is broadcast or televised, the participating individuals are not required to use their best efforts in order to win, and the winner may have been selected before the performance commences.