No. 32920 (Amendment): Section R859-1-501. Promoter's Responsibility in Arranging Contests - Permit Fee, Bond, Restrictions

(Amendment)

DAR File No.: 32920
Filed: 09/01/2009 04:51:17 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The current rule language states that fees are determined by the number of seats in a venue. The commission has in practice set its fees, based on the number of occupied seats. The proposed rule amendment will clarify that fees are set and based on the number of attendees at an event.

Summary of the rule or change:

The proposed amendment will clarify existing rule language and state that fees are set and based on the number of attendees at an event.

State statutory or constitutional authorization for this rule:

• Title 63C, Chapter 11

Anticipated cost or savings to:

the state budget:

The proposed rule incorporates existing policy that fees are set by the number of attendees at an event, rather than the number of seats, some of which could be unoccupied. It would also establish a maximum ceiling on broadcast revenue fees consistent with the fees charged by competing state commissions. The state could conceivably lose money for a large pay-per-view event, from what would be charged under the current rule language. However, since the current rule language does not contain a maximum fee ceiling, it could make large pay-per-view events noncompetitive in Utah when compared to other states. However, to date, the state has never hosted an unarmed combat event that would have been impacted by this proposed ceiling in broadcast fees.

local governments:

The proposed rule incorporates existing policy that fees are set by the number of attendees at an event, rather than the number of seats, some of which could be unoccupied. The proposed ceiling in pay per view fees will not impact local government revenue. Consequently, there are no anticipated costs or savings since this proposed amendment will not impact local government.

small businesses:

The proposed rule incorporates existing policy that fees are set by the number of attendees at an event, rather than the number of seats, some of which could be unoccupied. It would also establish a maximum ceiling on broadcast revenue fees consistent with the fees charged by competing state commissions. Small businesses could conceivably lose money for a large pay-per-view event, from what would be charged under the current rule language. However, since the current rule language does not contain a maximum fee ceiling, it could make large pay-per-view events noncompetitive in Utah when compared to other states. However, to date, the state has never hosted an unarmed combat event that would have been impacted by this proposed ceiling in broadcast fees.

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

The proposed rule incorporates existing policy that fees are set by the number of attendees at an event, rather than the number of seats, some of which could be unoccupied. It would also establish a maximum ceiling on broadcast revenue fees consistent with the fees charged by competing state commissions. Large businesses could conceivably lose money for a large pay-per-view event, from what would be charged under the current rule language. However, since the current rule language does not contain a maximum fee ceiling, it could make large pay-per-view events noncompetitive in Utah when compared to other states. However, to date, the state has never hosted an unarmed combat event that would have been impacted by this proposed ceiling in broadcast fees.

Compliance costs for affected persons:

The net total increased annual cost to local businesses or individuals is anticipated to be zero.

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

The proposed rule incorporates existing policy that fees are set by the number of attendees at an event, rather than the number of seats, some of which are likely unoccupied. It would also establish a maximum ceiling on broadcast revenue fees consistent with the fees charged by competing state commissions. The state could conceivably lose money for a large pay-per-view event, from what would be charged under the current rule language. However, since the current rule language does not contain a maximum fee ceiling, it could make large pay-per-view events noncompetitive in Utah when compared to other states. However, to date, the state has never hosted an unarmed combat event that would have been impacted by this proposed ceiling in broadcast fees.

Alan Dayton, PSUAC Chair

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

Sports Authority (Utah)
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:

10/15/2009

This rule may become effective on:

10/22/2009

Authorized by:

Bill Colbert, Secretary, PSUAC

RULE TEXT

R859. Sports Authority (Utah), Pete Suazo Utah Athletic Commission.

R859-1. Pete Suazo Utah Athletic Commission Act Rule.

R859-1-501. 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 money for payment of contestants, referees, judges, and the attending physician. The designated Commission member shall pay each contestant, referee, judge, and physician in the presence of one witness.

(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 also have 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) $100 for a contest or event occurring in a venue of fewer than 200 attendees;[seats;]

(ii) $200 for a contest or event occurring in a venue of at least 200 attendees but fewer than 500 attendees;[seats;]

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

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

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

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

(viii) $2000 for a contest or event occurring in a venue of at least 10,000 attendees;[seats;] 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 [each]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: 2009

Notice of Continuation: May 10, 2007

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

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