August 24, 2011, Introduced by Senator HUNE and referred to the Committee on Regulatory Reform.
A bill to amend 2004 PA 403, entitled
"Michigan unarmed combat regulatory act,"
by amending sections 20 and 33 (MCL 338.3620 and 338.3633), as
amended by 2007 PA 196, and by adding section 61a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
20. (1) The Michigan unarmed combat commission ,
consisting
of is created in the
department. The commission shall
consist of the director, serving as a nonvoting ex officio member
of the commission, and 11 voting members, appointed by the governor
with
the advice and consent of the senate, is created within the
department.
The director is appointed as a nonvoting ex officio
member
of the commission. A majority of the members appointed by
the
governor shall be licensees under this act. as follows:
(a)
Four of the members shall be
licensees who have
experience,
knowledge, or background in boxing. ,
and 4
(b)
Four members shall be licensees who have experience,
knowledge, or background in mixed martial arts.
(c)
Three members shall be who are members
of the general
public.
Budgeting,
(2) The department shall provide the budgeting, procurement,
human resources, information technology, and related management
functions
of the commission. shall be performed by the department.
(3) (2)
Except as otherwise provided in
this subsection, the
11 members appointed by the governor shall serve a term of 4 years.
Of
However, of the initial members appointed under this act, the
terms
of governor shall appoint 2 of the members shall be to terms
of
4 years, the term of 2 of the
members shall be to terms
of 2
years,
and the term of 3 of the members shall be to terms of 1
year.
When so designated by the director, any board action taken on
only
a boxing or mixed martial arts matter shall only be considered
by
the appropriately licensed members and members of the general
public.
The terms of members Members appointed by the governor are
subject
to serve at the pleasure of the governor.
(4) (3)
Five Subject to subsection
(5), 7 members of the
commission constitute a quorum for the exercise of the authority
conferred
upon on the commission except that after all of the
additional
members appointed as a result of the 2007 amendatory act
that
added this clause, the quorum shall consist of 7 members.
under
this act. Subject to subsection (2),
a concurrence of (5),
approval
by at least 4 of the members, or a
concurrence of by a
majority of those members who have not participated in an
investigation or administrative hearing regarding a matter before
the
commission, is necessary to render a decision for action by the
commission.
In the case of proposed board action to be taken on a
matter
involving only boxing or only mixed martial arts and where
only
the members of the board designated for the particular sport
are
eligible to confer, the quorum shall be 4 members, 2 of whom
shall
be licensed under the appropriate sport. Under those
circumstances,
a concurrence of 3 members is necessary to render a
decision
by the commission.
(5) All of the following apply if a proposed action of the
commission is designated by the director as related only to boxing:
(a) The proposed action shall only be considered by the
commission members described in subsection (1)(a) and (c).
(b) The quorum requirement for consideration of the proposed
action is 4 members who are eligible to consider the action under
subdivision (a), 2 of whom are members described in subsection
(1)(a).
(c) Approval by at least 3 of the members who are eligible to
consider the action under subdivision (a) is required for the
commission to take that action.
(6) All of the following apply if a proposed action of the
commission is designated by the director as related only to mixed
martial arts:
(a) The proposed action shall only be considered by the
commission members described in subsection (1)(b) and (c).
(b) The quorum requirement for consideration of the proposed
action is 4 members who are eligible to consider the action under
subdivision (a), 2 of whom are members described in subsection
(1)(b).
(c) Approval by at least 3 of the members who are eligible to
consider the action under subdivision (a) is required for the
commission to take that action.
(7) (4)
A While serving as a member of the commission, an
individual shall not at any time during his or her service
as a
member
promote or sponsor any contest or
exhibition of boxing, or a
combination of those events, or have any financial interest in the
promotion or sponsorship of those contests or exhibitions. The
commission
shall meet not less than 4 times per year, and upon on
the request and at the discretion of the chair, the department
shall schedule additional interim meetings.
(8) (5)
Except as otherwise provided in section
sections 33(9)
and 61a, the records of the commission are subject to disclosure
under the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(9) (6)
Meetings of the commission are
subject to the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275.
Sec. 33. (1) An application for a promoter's license must be
in
writing and correctly show and define shall include the legal
name, street address, and telephone number of 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) Before the department grants an approval for a contest or
exhibition, is
granted, a the promoter must file a bond with the
department in an amount fixed by the department but not less than
$20,000.00,
which $20,000.00 or more than
$50,000.00. The applicant
shall
execute the bond shall be executed
by the applicant as
principal, and the bond shall be issued by a corporation qualified
under the laws of this state as surety, payable to the state of
Michigan,
and conditioned upon on 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 at
least 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) A promoter must apply for and obtain an annual license
from the department in order to present a program of contests or
exhibitions
regulated by under this act. The annual license fee is
$250.00. The department shall request, and the applicant shall
provide,
such any information as it that the department determines
is necessary to ascertain the financial stability of the applicant.
Section 61a applies to any information provided by an applicant
under this subsection.
(5) A boxing promoter shall pay an event fee of $125.00. A
mixed martial arts promoter shall pay an event fee of
$2,000.00.$125.00.
(6)
There is imposed Each
promoter shall pay a regulatory and
enforcement
fee upon the promoter to assure the integrity of the
sports of boxing and mixed martial arts, the public interest, and
the
welfare and safety of the professionals. in the The amount of
the fee is 3% of the total gross receipts from the sale, lease, or
other exploitation of broadcasting, television, and motion picture
rights for an event, but not to exceed or
$25,000.00, per
contract,
whichever
is less, for a boxing
or mixed martial arts events event
to which all of the following apply:
(a) If the event is a boxing event, the event is located in a
venue
with a seating capacity of over more
than 5,000.
(b) The promoter proposes to televise or broadcast the event
over any medium for viewing by spectators who are not present in
the venue.
(c) The event is designed to promote professional boxing or
mixed martial arts contests in this state.
(7)
At For purposes of
subsection (6), at least 10 days before
the boxing or mixed martial arts 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 for the event. However, this
subsection does not apply to a promoter that agrees to pay a
regulatory and enforcement fee for the event in the amount of
$25,000.00, and the department receives that payment from the
promoter at least 1 business day before the event.
(8)
The department shall deposit the money derived received
from
the proceeds of the regulatory and enforcement fee shall be
deposited
into the fund created in section 22
and used use those
proceeds for the purposes described in that section.
(9)
A promoter shall, within 5 business days Within 1 business
day before a boxing or mixed martial arts contest or exhibition,
convey
the promoter shall deliver to the department an executed
copy
of the contract relative to all
of the executed contracts
between the promoter and the professionals participating in that
contest
or exhibition. The copy copies
of the contract contracts
are 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 if information regarding identifiable
individuals or categories is not revealed.
(10)
Beginning June 23, 2005, a promoter's license is subject
to
revocation unless at least 10% of the purse in a contest or
exhibition,
but not more than $10,000.00 per contestant, 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.The commission may perform
drug testing on a professional before or after a contest or
exhibition to detect the presence of alcohol, stimulants, or drugs,
including, but not limited to, performance enhancing drugs. A
professional shall submit to a urinalysis or chemical test before
or after a contest or exhibition if the commission or a
representative of the commission directs him or her to do so. If a
professional fails or refuses to submit to a urinalysis or chemical
test under this subsection, or the results of the urinalysis or
chemical test confirm or demonstrate the professional has violated
this act, he or she is subject to disciplinary action by the
commission under this act. In addition to any other disciplinary
action by the commission, if the professional won the contest or
exhibition or the contest or exhibition was a draw, the commission
may change the result of that contest or exhibition to a no
decision.
(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. 61a. A record or portion of a record, material,
information, or other data received, prepared, used, or retained by
the department or commission under this act that includes a trade
secret or commercial, financial, or proprietary information of a
licensee or license applicant, and that the licensee or applicant
requests in writing be treated as confidential by the department or
commission, is not subject to the freedom of information act, 1976
PA 442, MCL 15.231 to 15.246. As used in this section, "trade
secret or commercial, financial, or proprietary information" means
information that has not been publicly disseminated or that is
unavailable from other sources, the release of which might cause
the licensee or applicant significant competitive harm.