Governor, Economic Development, Pete Suazo Utah Athletic Commission

Section R359-1-501

Promoter's Responsibilities in Arranging a Contest

Notice of Proposed Rule

(Amendment)

DAR File No.: 34408
Filed: 01/31/2011 09:56:53 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed rule change will require unarmed combat promoters to provide the commission with certified copies of any contracts, agreements, or transfers of any Internet, broadcasting, television, and motion picture rights for any contest or exhibition within seven days of any such agreements. The commission may require a surety deposit be provided to the commission to ensure these requirements are met. The commission has had difficulty ensuring promoters meet their financial obligations under its existing rules for broadcasting, television, and motion picture rights. Receiving copies of these contracts will facilitate the process and verification of payments. The proposed rule adds Internet sales to the section.

Summary of the rule or change:

The proposed rule change will require unarmed combat promoters to provide the commission with certified copies of any contracts, agreements, or transfers of any Internet, broadcasting, television, and motion picture rights for any contest or exhibition within seven days of any such agreements. The commission may require a surety deposit be provided to the commission to ensure these requirements are met.

State statutory or constitutional authorization for this rule:

• Title 63C, Chapter 11

Anticipated cost or savings to:

the state budget:

The requirement should facilitate the commission verifying and receiving the designated payments for Internet, broadcasting, television, and motion picture rights from unarmed combat promoters. The estimated annual increase in revenue is between $1,000 and $3,000.

local governments:

Local government does not regulate unarmed combat. Consequently, this proposed rule will not result in any cost or savings to local government.

small businesses:

Promoters will have to provide copies of their Internet, broadcasting, television, and motion picture rights to the commission. The cost of of providing copies of these contracts is estimated to be less than $50 per year. Unarmed combat promoters are already required to pay 3% of any of these revenues under existing rule.

persons other than small businesses, businesses, or local governmental entities:

Promoters who are individuals or partnerships will have to provide copies of their Internet, broadcasting, television, and motion picture rights to the commission. The cost of of providing copies of these contracts is estimated to be less than $50 per year. Unarmed combat promoters are already required to pay 3% of any of these revenues under existing rule.

Compliance costs for affected persons:

The cost of of providing copies of these contracts is estimated to be less than $50 per year.

Comments by the department head on the fiscal impact the rule may have on businesses:

The commission has had difficulty verifying the revenue unarmed combat promoters receive from media sales. The proposed amendment will facilitate the process of ensuring the commission receives the required revenue from these sales.

Richard Montanez, Chair

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Governor
Economic Development, Pete Suazo Utah Athletic Commission
324 S STATE ST
STE 500
SALT LAKE CITY, UT 84111

Direct questions regarding this rule to:

• Bill Colbert at the above address, by phone at 801-538-8876, by FAX at 801-538-8888, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/17/2011

This rule may become effective on:

03/24/2011

Authorized by:

Bill Colbert, Director

R359. Governor, Economic Development, Pete Suazo Utah Athletic Commission.

R359-1. Pete Suazo Utah Athletic Commission Act Rule.

R359-1-501. Promoter's Responsibilities in Arranging a Contest.

(1) Before a licensed promoter may hold a contest or single contest as part of a single promotion, the promoter shall file with the Commission an application for a permit to hold the contest not less than 15 days before the date of the proposed contest, or not less than seven days for televised contests.

(2) The application shall include the date, time, and place of the contest as well as information concerning the on-site emergency facilities, personnel, and transportation.

(3) The permit application must be accompanied by a contest registration fee determined by the Department under Section 63-38-32.

(4) Before a permit to hold a contest is granted, the promoter shall post a surety bond with the Commission in the amount of $10,000.

(5) Prior to the scheduled time of the contest, the promoter shall have available for inspection the completed physical facilities which will be used directly or indirectly for the contest. The designated Commission member shall inspect the facilities in the presence of the promoter or the promoter's authorized representative, and all deficiencies cited upon inspection shall be corrected before the contest.

(6) A promoter shall be responsible for verifying the identity, ring record, and suspensions of each contestant. A promoter shall be held responsible for the accuracy of the names and records of each of the participating contestants in all publicity or promotional material.

(7) A promoter shall be held responsible for a contest in which one of the contestants is disproportionately outclassed.

(8) Before a contest begins, the promoter shall give the designated Commission member the funds necessary for payment of contestants, referees, judges, timekeeper and the attending physician(s). The designated Commission member shall pay each contestant, referee, and judge in the presence of one witness. Payment for the attending physician(s) shall be made by the commission by the State of Utah.

(9) A promoter shall be not under the influence of alcohol or controlled substances during the contest and until all purses to the contestants and all applicable fees are paid to the commission, officials and ringside physician.

(10) At the time of an unarmed combat contest weigh-in, the promoter of a contest shall provide primary insurance coverage for each uninsured contestant and secondary insurance for each insured contestant in the amount of $10,000 for each licensed contestant to provide medical, surgical and hospital care for licensed contestants who are injured while engaged in a contest or exhibition:

(a) The term of the insurance coverage must not require the contestant to pay a deductible, for the medical, surgical or hospital care for injuries he sustains while engaged in a contest of exhibition.

(b) If a licensed contestant pays for the medical, surgical or hospital care, the insurance proceeds must be paid to the contestant or his beneficiaries as reimbursement for the payment.

(c) The promoter should provide life insurance coverage of $10,000 for each contestant in case of death.

(11) In addition to the payment of any other fees and money due under this part, the promoter shall pay the following event fees:

(a)(i) $200 for a contest or event occurring in a venue of fewer than 500 attendees;

(ii) $300 for a contest or event occurring in a venue of at least 500 attendees but fewer than 1,000 attendees;

(iii) $400 for a contest or event occurring in a venue of at least 1,000 attendees but fewer than 3,000 attendees;

(iv) $600 for a contest or event occurring in a venue of at least 3,000 attendees but fewer than 5,000 attendees;

(v) $1000 for a contest or event occurring in a venue of at least 5,000 attendees but fewer than 10,000 attendees; or

(vi) $2000 for a contest or event occurring in a venue of at least 10,000 attendees; and

(b) 3% of the first $500,000, and one percent of the next $1,000,000, of the total gross receipts from the sale, lease, or other exploitation of internet, broadcasting, television, and motion picture rights for any contest or exhibition thereof, without any deductions for commissions, brokerage fees, distribution fees, advertising, contestants' purses or any other expenses or charges, except in no case shall the fee be more than $25,000. The promoter shall notify and provide the commission with certified copies of any contracts, agreements or transfers of any internet, broadcasting, television, and motion picture rights for any contest or exhibition within seven days of any such agreements. The commission may require a surety deposit be provided to the commission to ensure these requirements are met.

(c) the applicable fees assessed by the Association of Boxing Commission designated official record keeper.

(d) the commission may exempt from the payment of all or part of the assessed fees under this section for a special contest or exhibition based on factors which include:

(i) a showcase event promoting a greater interest in contests in the state;

(ii) attraction of the optimum number of spectators;

(iii) costs of promoting and producing the contest or exhibition;

(iv) ticket pricing;

(v) committed promotions and advertising of the contest or exhibition;

(vi) rankings and quality of the contestants; and

(vii) committed television and other media coverage of the contest or exhibition.

(viii) contribution to a 501(c)(3) charitable organization.

 

KEY: licensing, boxing, unarmed combat, white-collar contests

Date of Enactment or Last Substantive Amendment: [December 22, 2010]2011

Notice of Continuation: May 10, 2007

Authorizing, and Implemented or Interpreted Law: 63C-11-101 et seq.