No. 34366 (Amendment): Section R359-1-501. Promoter's Responsibilities in Arranging a Contest

(Amendment)

DAR File No.: 34366
Filed: 01/15/2011 04:39:13 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed change requires new promoters to deposit a $10,000 cashier's check or bank draft with the Pete Suazo Utah Athletic Commission (PSUAC) to ensure the promoter has the financial resources and experience to conduct a successful event. The proposed rule change will also ensure the promoter is financially responsible if it permits any contestant purse deductions to pay commission license, ID, and other commission fees. Finally, the rule change prohibits any waivers on contestant medical and life insurance.

Summary of the rule or change:

The proposed change requires new promoters to deposit a $10,000 cashier's check or bank draft with the Pete Suazo Utah Athletic Commission (PSUAC). The proposed rule change will also ensure the promoter is financially responsible if it permits any contestant purse deductions to pay commission license, ID, and other commission fees. Finally, the rule change prohibits any waivers on contestant medical and life insurance.

State statutory or constitutional authorization for this rule:

• Title 63C, Chapter 11

Anticipated cost or savings to:

the state budget:

The requirement that promoters provide a cashier's check or bank draft with their event application does not impact the commission's workload in processing that application. Therefore, there are no costs or savings associated with this amendment.

local governments:

The proposed rule change will not result in any anticipated cost or savings to the local government since local government does not regulate unarmed combat.

small businesses:

The proposed rule change would require new promoters to deposit with the commission a $10,000 cashier's check or bank draft for their first five events. This would help ensure a new promoter has the financial resources to conduct a successful event. However, unless the promoter defaults on its obligations, there will be no significant costs to comply with the proposed change. Also, promoters have been responsible to pay for any contestant purse deductions, but the new language clearly states this requirement to avoid any confusion.

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

The proposed rule change will help ensure that new promoters have the means to meet their financial obligations in holding an unarmed combat event. It will primarily benefit other individuals and entities in the event the promoter defaults on these obligations.

Compliance costs for affected persons:

For a promoter who financially meets its obligations, the only additional cost would be any fees charged by a financial institution to issue a cashier's check or bank draft. This should be less than $5 per event for the first five events.

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

The commission has had problems with a few new promoters meeting their financial obligations in conducting unarmed combat events. This has required the commission to draw on the promoter's bond to pay contestant purses, officials' fees, and commission fees which is a time-consuming and lengthy process. The proposed rule change should help ensure a new promoter has the financial resources and experience prior to conducting an unarmed combat event.

Richard Montanez, Commission 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 [e-mail]

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

RULE TEXT

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 or total sum of the contestant purses, officials fees and estimated commission fees, whichever is greater. Promoters who have held less than 5 unarmed combat events in the state of Utah shall deposit an additional $10,000 minimum Cashier's Check or Bank Draft with the commission no later than 7 days prior to the event or the event may be cancelled by the commission.

(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) The promoter shall be responsible for payment of any commission fee(s) deducted from a contestant's purse, if the fees are not collected directly from the contestant at the conclusion of the bout or if the contestant fails to compete in the event.

([10]11) 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]shall also provide life insurance coverage of $10,000 for each contestant in case of death.

(d) The required medical insurance and life insurance coverage can not be waived by the contestant or any other party.

([11]12) 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 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.

(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.

 

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