HB-4447, As Passed House, April 20, 2005
March 3, 2005, Introduced by Reps. Robertson, Baxter, Garfield, Gosselin, Taub, LaJoy, Marleau, Shaffer, Gleason, Sak, Nitz, Ball, Stahl and Lemmons, III and referred to the Committee on Regulatory Reform.
A bill to amend 2004 PA 403, entitled
"Michigan boxing regulatory act,"
by amending sections 11, 31, 33, 34, 47, 48, and 54 (MCL 338.3611,
338.3631, 338.3633, 338.3634, 338.3647, 338.3648, and 338.3654).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. As used in this act:
(a) "Physician" means that term as defined in section 17001 or
17501 of the public health code, 1978 PA 368, MCL 333.17001 and
333.17501.
(b) "Professional" means a person who is competing or has
competed in boxing for a money prize.
(c) "Promoter" means any person who produces or stages any
professional contest or exhibition of boxing, but does not include
the venue where the exhibition or contest is being held unless the
venue contracts with the individual promoter to be a co-promoter.
(d) "Purse" means the financial guarantee or any other
remuneration for which professionals are participating in a contest
or exhibition and includes the professional's share of any payment
received for radio, television, or motion picture rights.
(e) "Respondent" means a person against whom a complaint has
been filed who may be a person who is or is required to be licensed
under this act.
(f) "Rule" means a rule promulgated under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(g) "School", "college", or "university" does not include an
institution formed or operated principally to provide instruction
in boxing and other sports.
Sec.
31. (1) An By
filing an application for a license,
is a
request
for a determination of the applicant's an applicant does
both of the following:
(a) Certifies his or her general suitability, character,
integrity, and ability to participate, engage in, or be associated
with boxing contests or exhibitions. The burden of proof is on the
applicant to establish to the satisfaction of the commission and
the department that the applicant is qualified to receive a
license.
(b) (2)
By filing an application, the applicant accepts
Accepts the risk of adverse public notice, embarrassment,
criticism, financial loss, or other action with respect to his or
her application and expressly waives any claim for damages as a
result of any adverse public notice, embarrassment, criticism,
financial loss, or other action. Any written or oral statement made
by any member of the commission or any witness testifying under
oath that is relevant to the application and investigation of the
applicant is immune from civil liability for libel, slander, or any
other tort.
(3)
An applicant must demonstrate good moral character. If the
applicant
for a license is denied a license due to lack of good
moral
character, the applicant may request an administrative
hearing
before a hearing officer designated by the commission. The
commission,
after the conduct of a hearing and upon receipt of the
written
findings and proposal for decision, may approve or
recommend
and the department may issue a license to him or her if
the
commission determines that the applicant's background does not
reasonably
relate to the activity or occupation for which he or she
seeks
licensure and that the applicant has the ability at the
current
time, and is likely, to serve the public in a fair, honest,
and
open manner.
Sec. 33. (1) An application for a promoter's license must be
in writing and correctly show and define the applicant.
(2) An applicant for a promoter's license must demonstrate
good moral character. If an applicant for a promoter's license is
denied a license due to lack of good moral character, the applicant
may petition the commission for a review of the decision under
section 46.
(3) (2)
Before
any license an approval for a boxing
contest
or exhibition is granted, the applicant for a promoter's
license
a promoter must file a bond with the department in an
amount fixed by the department but not less than $20,000.00,
executed by the applicant as principal and by a corporation
qualified under the laws of this state as surety, payable to the
state of Michigan, and conditioned upon the faithful performance by
the applicant of the provisions of this act. The department shall
annually adjust the amount of the bond based upon the Detroit
consumer price index. The bond must be purchased not less than 5
days before the contest or exhibition and may be used to satisfy
payment for the professionals, costs to the department for ring
officials and physicians, and drug tests.
(4) (3)
A promoter must apply for and obtain an annual
license from the department in order to present a program of boxing
contests or exhibitions. The annual license fee is $250.00. The
department shall request, and the applicant shall provide, such
information as it determines necessary to ascertain the financial
stability of the applicant.
(5) (4)
The promoter must pay an event fee of $125.00.
(6) (5)
There is imposed a regulatory and enforcement fee
upon the promoter to assure the integrity of the sport, the public
interest, and the welfare and safety of the professionals in the
amount of 3% of the total gross receipts from the sale, lease, or
other exploitation of broadcasting, television, and motion picture
rights, but not to exceed $25,000.00 per contract, for events to
which the following apply:
(a) The event is located in a venue with a seating capacity of
over 5,000.
(b) The promoter proposes to televise or broadcast the event
over any medium for viewing by spectators not present in the venue.
(c) The event is designed to promote professional contests in
this state.
(7) (6)
At least 10 days before the event, the promoter
shall submit the contract subject to the regulatory and enforcement
fee to the department, stating the amount of the probable total
gross receipts from the sale, lease, or other exploitation of
broadcasting, television, and motion picture rights.
(8) (7)
The money derived from the regulatory and
enforcement fee shall be deposited into the Michigan boxing fund
created in section 22 and used for the purposes described in that
section.
(9) (8)
A promoter shall, within 5 business days before a
boxing contest or exhibition, convey to the department an executed
copy of the contract relative to the boxing contest or exhibition.
The copy of the contract is exempt from disclosure under the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246,
except that the department may disclose statistical information on
the number, types, and amounts of contracts so long as information
regarding identifiable individuals or categories is not revealed.
(10) Beginning the effective date of the amendatory act that
added this subsection, a promoter's license is subject to
revocation unless at least 10% of the purse in a contest or
exhibition is withheld or escrowed until such time as the results
of the postcontest drug test, as required by this act, are
available to the department. If the drug test results confirm or
demonstrate compliance with this act, the department shall issue an
order allowing the promoter to forward to the professional the
amount withheld or escrowed. If the results do not confirm or
demonstrate compliance with this act, the department shall serve a
formal complaint on the professional under section 44(2), and the
department shall issue an order to the promoter requiring the
promoter to forward the amount withheld or escrowed to the
department. Upon receipt, the department shall deposit the money
into the fund. If after a hearing the professional is found in
violation of the act, the professional shall forfeit the amount
withheld from the purse and the professional is subject to the
penalties prescribed in section 48. However, if the formal
complaint is dismissed or any final order issued as the result of
the complaint is overturned, the department shall issue a refund to
the professional for the amount withheld.
(11) Subsection (10) does not prohibit a licensed promoter
from including a provision in a contract with a professional that
requires the promoter to withhold 10% of the purse in a contest or
exhibition until such time as the postcontest drug test results are
available to the department.
Sec. 34. (1) The director, in consultation with the
commission, may promulgate rules for the application and approval
process for promoters. Until the rules are promulgated, the
applicant shall comply with the standards described in subsection
(2).
(2) The rules regarding the application process shall include
at least the following:
(a) An initial application processing fee sufficient to cover
the costs of processing, but not less than $250.00.
(b) A requirement that background information be disclosed by
the applicant who is an individual or by the principal officers or
members and individuals having at least a 10% ownership interest in
the case of any other legal entity, with emphasis on the
applicant's
business experience. This information must include at
least
2 years of federal income tax returns of principal officers
or
members and individuals having at least a 10% ownership interest
in
the applicant and any financial information necessary to
ascertain
the financial stability of those persons. The department
shall
utilize the information described in this subdivision to
ascertain
the financial stability of the applicant.
(c) Information from the applicant concerning past and present
civil lawsuits, judgments, and filings under the bankruptcy code
that are not more than 7 years old.
(d) Any other relevant and material information considered
necessary by the director upon consultation with the commission.
(3) The department may consult with the commission on issues
related to the determination of an applicant's financial stability
and shall refer the application to the commission if clear and
convincing grounds for approval of the financial stability aspect
of the application do not exist.
(4) As part of the approval process for promoters, the
commission may require the applicant or his or her representative
to be present at a commission meeting in which the application is
considered.
Sec. 47. (1) The department shall initiate an action under
this chapter against an applicant or take any other allowable
action against the license of any contestant, promoter, or other
participant who the department determines has done any of the
following:
(a) Enters into a contract for a boxing contest or exhibition
in bad faith.
(b) Participates in any sham or fake boxing contest or
exhibition.
(c) Participates in a boxing contest or exhibition pursuant to
a collusive understanding or agreement in which the contestant
competes or terminates the boxing contest or exhibition in a manner
that is not based upon honest competition or the honest exhibition
of the skill of the contestant.
(d) Is determined to have failed to give his or her best
efforts, failed to compete honestly, or failed to give an honest
exhibition of his or her skills in a boxing contest or exhibition.
(e) Is determined to have performed an act or engaged in
conduct that is detrimental to a boxing contest or exhibition
including, but not limited to, any foul or unsportsmanlike conduct
in connection with a boxing contest or exhibition.
(f) Gambles on the outcome of a boxing contest or exhibition
in which he or she is a contestant, promoter, matchmaker, ring
official, or second.
(g) Assaults another licensee, commission member, or
department employee while not involved in or while outside the
normal course of a boxing contest or exhibition.
(h) Practices fraud or deceit in obtaining a license.
(2) The department, in consultation with the commission, shall
promulgate rules to provide for both of the following:
(a) The timing of drug tests for contestants.
(b) Specific summary suspension procedures for boxing
contestants and participants who test positive for drugs or fail to
submit to a drug test, under section 48(4). The rules shall include
the following:
(i) A procedure to allow the department to place the licensee
upon the national suspension list.
(ii) An expedited appeal process for the summary suspension.
(iii) A relicensing procedure following summary suspension.
(3) An employee of the department must be present at all
weigh-ins, medical examinations, contests, exhibitions, and matches
to ensure that this act and rules are strictly enforced.
(4) Each promoter shall furnish each member of the commission
present at a boxing contest or exhibition a seat in the area
immediately adjacent to the boxing contest or exhibition. An
additional seat shall be provided in the venue.
(5) The commission chair, a commission member assigned by the
chair, or a department official designated by the commission chair
shall have final authority involving any conflict at a contest,
exhibition, or match and shall advise the chief inspector in charge
accordingly. In the absence of the chair, an assigned member, or a
department official designated by the commission chair, the chief
inspector in charge shall be the final decision-making authority.
Sec. 48. (1) Upon receipt of an application for reinstatement
and the payment of an administrative fine prescribed by the
commission, the commission may reinstate a revoked license or lift
a suspension. If disciplinary action is taken against a person
under this act that does not relate to a boxing contest or
exhibition, the commission may, in lieu of suspending or revoking a
license, prescribe an administrative fine not to exceed $10,000.00.
If disciplinary action is taken against a person under this act
that relates to the preparation for a boxing contest or an
exhibition, the occurrence of a boxing contest or an exhibition, or
any other action taken in conjunction with a boxing contest or an
exhibition, the commission may prescribe an administrative fine in
an amount not to exceed 100% of the share of the purse to which the
holder of the license is entitled for the contest or exhibition or
an administrative fine not to exceed $100,000.00 in the case of any
other person. This administrative fine may be imposed in addition
to, or in lieu of, any other disciplinary action that is taken
against the person by the commission.
(2) If an administrative fine is imposed under this section,
the commission may recover the costs of the proceeding, including
investigative costs and attorney fees. The department or the
attorney general may bring an action in a court of competent
jurisdiction to recover any administrative fines, investigative and
other allowable costs, and attorney fees. The filing of an action
to recover fines and costs does not bar the imposition of other
sanctions under this act.
(3) An employee of the department, in consultation with any
commission member present, may issue an order to withhold the purse
for 3 business days due to a violation of this act or a rule
promulgated under this act. During that 72-hour time period, the
commission may convene a special meeting to determine if the action
of the employee of the department was warranted. If the commission
determines that the action was warranted, the department shall
offer to hold an administrative hearing as soon as practicable but
within at least 7 calendar days.
(4) A professional or participant in a professional boxing
contest or exhibition shall submit to a postexhibition test of body
fluids to determine the presence of controlled substances,
prohibited substances, or enhancers. The department shall
promulgate rules to set requirements regarding preexhibition tests
of body fluids to determine the presence of controlled substances,
prohibited substances, or enhancers.
(5) The promoter is responsible for the cost of the testing
performed under this section.
(6)
The director shall withhold 10% of the purse in a contest
or
exhibition until the postcontest drug tests are available to the
department.
If the results do not confirm or demonstrate compliance
with
this act, the money withheld shall be deposited into the fund.
(6) (7)
Either of the following is grounds for summary
suspension of the individual's license in the manner provided for
in section 42:
(a) A test resulting in a finding of the presence of
controlled substances, enhancers, or other prohibited substances as
determined by rule of the commission.
(b) The refusal or failure of a contestant to submit to the
drug testing ordered by an authorized person.
Sec. 54. (1) In addition to the requirements of section 53, a
person seeking a license as a professional judge shall score,
unofficially,
not fewer than 200 rounds of amateur professional
boxing. In order to fulfill the requirements of this subsection, an
applicant shall only unofficially judge contests that are approved
by the commission for that purpose. An applicant shall not receive
compensation for judging boxing contests or exhibitions under this
subsection. Scorecards shall be transmitted to the department and
the commission for review and evaluation.
(2) An employee authorized by the department or the commission
shall complete a standardized evaluation sheet for each boxing
contest or exhibition judged by a licensee. The commission shall
annually review the evaluation sheets. A commission member
attending a boxing contest or exhibition may also submit to the
department a standardized evaluation sheet.