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First Substitute S.B. 25

Senator Pete Suazo proposes to substitute the following bill:


             1     
UTAH PROFESSIONAL ATHLETIC

             2     
COMMISSION ACT

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Pete Suazo

             6      This act modifies the Utah Professional Boxing Regulation Act by repealing the current act
             7      and replacing it with the Utah Professional Athletic Commission Act. The act removes the
             8      regulation of boxing and unarmed combat from the Division of Occupational and
             9      Professional Licensing and creates an independent Utah Professional Athletic Commission
             10      within the Department of Commerce. The act provides for the licensure of promoters,
             11      managers, seconds, contestants, judges, and referees. The act grants rulemaking authority
             12      to the Utah Professional Athletic Commission to govern unarmed combat. The act prohibits
             13      ultimate fighting. The act defines unlawful and unprofessional conduct and provides for
             14      penalties. The act authorizes the hiring of a director of the Utah Professional Athletic
             15      Commission. The act levies fees on ticket proceeds and broadcast revenues from contests.
             16      The act provides for funding of amateur boxing within the state. This act provides an
             17      effective date.
             18      This act affects sections of Utah Code Annotated 1953 as follows:
             19      ENACTS:
             20          13-33-101, Utah Code Annotated 1953
             21          13-33-102, Utah Code Annotated 1953
             22          13-33-201, Utah Code Annotated 1953
             23          13-33-202, Utah Code Annotated 1953
             24          13-33-203, Utah Code Annotated 1953
             25          13-33-204, Utah Code Annotated 1953


             26          13-33-205, Utah Code Annotated 1953
             27          13-33-301, Utah Code Annotated 1953
             28          13-33-302, Utah Code Annotated 1953
             29          13-33-303, Utah Code Annotated 1953
             30          13-33-304, Utah Code Annotated 1953
             31          13-33-305, Utah Code Annotated 1953
             32          13-33-401, Utah Code Annotated 1953
             33          13-33-402, Utah Code Annotated 1953
             34          13-33-403, Utah Code Annotated 1953
             35          13-33-404, Utah Code Annotated 1953
             36          13-33-405, Utah Code Annotated 1953
             37          13-33-501, Utah Code Annotated 1953
             38          13-33-502, Utah Code Annotated 1953
             39          13-33-503, Utah Code Annotated 1953
             40          13-33-504, Utah Code Annotated 1953
             41          13-33-505, Utah Code Annotated 1953
             42          13-33-506, Utah Code Annotated 1953
             43      REPEALS:
             44          58-66-101, as enacted by Chapter 11, Laws of Utah 1995
             45          58-66-102, as last amended by Chapter 77, Laws of Utah 2000
             46          58-66-201, as enacted by Chapter 11, Laws of Utah 1995
             47          58-66-301, as enacted by Chapter 11, Laws of Utah 1995
             48          58-66-302, as last amended by Chapter 77, Laws of Utah 2000
             49          58-66-303, as enacted by Chapter 11, Laws of Utah 1995
             50          58-66-401, as enacted by Chapter 11, Laws of Utah 1995
             51          58-66-501, as enacted by Chapter 11, Laws of Utah 1995
             52          58-66-502, as enacted by Chapter 11, Laws of Utah 1995
             53          58-66-503, as enacted by Chapter 83, Laws of Utah 1997
             54          58-66-601, as enacted by Chapter 11, Laws of Utah 1995
             55          58-66-602, as enacted by Chapter 11, Laws of Utah 1995
             56          58-66-603, as enacted by Chapter 11, Laws of Utah 1995


             57          58-66-604, as last amended by Chapter 77, Laws of Utah 2000
             58          58-66-605, as enacted by Chapter 11, Laws of Utah 1995
             59          58-66-606, as enacted by Chapter 11, Laws of Utah 1995
             60          58-66-607, as enacted by Chapter 11, Laws of Utah 1995
             61          58-66-608, as enacted by Chapter 11, Laws of Utah 1995
             62      Be it enacted by the Legislature of the state of Utah:
             63          Section 1. Section 13-33-101 is enacted to read:
             64     
CHAPTER 33. UTAH PROFESSIONAL ATHLETIC COMMISSION ACT

             65     
Part 1. General Provisions

             66          13-33-101. Title.
             67          This chapter is known as the "Utah Professional Athletic Commission Act."
             68          Section 2. Section 13-33-102 is enacted to read:
             69          13-33-102. Definitions.
             70          As used in this chapter:
             71          (1) "Bodily injury" means as defined in Section 76-1-601 .
             72          (2) "Commission" means the Utah Professional Athletic Commission created in this
             73      chapter.
             74          (3) "Contest" means a live match, performance, or exhibition involving persons engaged
             75      in unarmed combat.
             76          (4) "Contestant" means an individual who participates in a contest for a cash purse in any
             77      amount or for a noncash purse with more than nominal value as defined by rule.
             78          (5) "Department" means the Department of Commerce.
             79          (6) "Director" means the director of the Utah Professional Athletic Commission.
             80          (7) "Executive director" means the executive director of the Department of Commerce.
             81          (8) "Exhibition" means an engagement in which the participants show or display their
             82      skills without necessarily striving to win.
             83          (9) "Judge" means an individual qualified by training or experience to:
             84          (a) rate the performance of contestants;
             85          (b) score a contest; and
             86          (c) determine with other judges whether there is a winner of the contest or whether the
             87      contestants performed equally resulting in a draw.


             88          (10) "Manager" means an individual who represents a contestant for the purposes of
             89      obtaining matches, negotiating terms and conditions of the contract under which the contestant will
             90      engage in a contest, or arranging for a second for the contestant at a contest.
             91          (11) "Promoter" means a person who engages in producing or staging contests and
             92      promotions.
             93          (12) "Promotion" means a single contest or a combination of contests that occur during
             94      the same time at the same location and that is produced or staged by a promoter.
             95          (13) (a) "Purse" means any money, prize, remuneration, or any other valuable
             96      consideration a contestant receives or may receive for participation in a contest.
             97          (b) "Purse" does not mean a trophy, medal, or similar object of nominal value as defined
             98      by rule that is received for participation in a contest.
             99          (14) "Referee" means an individual qualified by training or experience to act as the official
             100      attending a contest at the point of contact between contestants for the purpose of:
             101          (a) enforcing the rules relating to the contest;
             102          (b) stopping the contest in the event the health, safety, and welfare of a contestant or any
             103      other person in attendance at the contest is in jeopardy; and
             104          (c) to act as a judge if so designated by the commission.
             105          (15) "Second" means an individual who attends a contestant at the site of the contest
             106      before, during, and after the contest in accordance with contest rules.
             107          (16) "Serious bodily injury" is as defined in Section 76-1-601 .
             108          (17) "Total gross receipts" means the amount of the face value of all tickets sold to a
             109      particular contest plus any sums received as consideration for holding the contest at a particular
             110      location.
             111          (18) "Ultimate fighting match" means a live match in which:
             112          (a) an admission fee is charged;
             113          (b) match rules permit contestants to use a combination of boxing, kicking, wrestling,
             114      hitting, punching, or other combative, contact techniques; and
             115          (c) match rules do not:
             116          (i) incorporate a formalized system of combative techniques against which a contestant's
             117      performance is judged to determine the prevailing contestant;
             118          (ii) divide a match into two or more equal and specified time periods for a match total of


             119      no more than 50 minutes; or
             120          (iii) prohibit contestants from:
             121          (A) using anything that is not part of the human body, except for boxing gloves, to
             122      intentionally inflict serious bodily injury upon an opponent through direct contact or the expulsion
             123      of a projectile;
             124          (B) striking a person who demonstrates an inability to protect himself from the advances
             125      of an opponent;
             126          (C) biting; or
             127          (D) direct, intentional, and forceful strikes to the eyes, groin area, adam's apple area of the
             128      neck, and temple area of the head.
             129          (19) "Unarmed combat" means boxing, wrestling, or any form of competition in which a
             130      blow is usually struck which may reasonably be expected to inflict bodily injury.
             131          (20) "Unlawful conduct" means organizing, promoting, or participating in a contest which
             132      involves:
             133          (a) contestants that are not licensed under this chapter; or
             134          (b) persons other than contestants, unless the contest is conducted in accordance with the
             135      standards and regulations of USA Boxing, Inc.
             136          (21) "Unprofessional conduct" means:
             137          (a) entering into a contract for a contest in bad faith;
             138          (b) participating in any sham or fake contest;
             139          (c) participating in a contest pursuant to a collusive understanding or agreement in which
             140      the contestant competes in or terminates the contest in a manner that is not based upon honest
             141      competition or the honest exhibition of the skill of the contestant;
             142          (d) engaging in an act or conduct that is detrimental to a contest, including any foul or
             143      unsportsmanlike conduct in connection with a contest;
             144          (e) failing to comply with any limitation, restriction, or condition placed on a license; or
             145          (f) as further defined by rule by the commission.
             146          Section 3. Section 13-33-201 is enacted to read:
             147     
Part 2. Commission

             148          13-33-201. Commission -- Creation -- Appointments -- Terms -- Expenses -- Quorum.
             149          (1) There is created within the Department of Commerce the Utah Professional Athletic


             150      Commission consisting of five members.
             151          (2) (a) The commission members shall be appointed by the executive director.
             152          (b) The commission members may not be licensees under this chapter.
             153          (c) The names of all persons appointed to the commission shall be submitted to the
             154      governor for confirmation or rejection.
             155          (3) (a) Except as required by Subsection (3)(b), as terms of current members expire, the
             156      executive director shall appoint each new member or reappointed member to a four-year term.
             157          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director shall,
             158      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             159      members are staggered so that approximately half of the commission is appointed every two years.
             160          (c) A member may not serve more than two consecutive terms, and a member who ceases
             161      to serve on the commission may not serve again on the commission until after the expiration of
             162      a two-year period beginning from that cessation of service.
             163          (d) (i) When a vacancy occurs in the membership for any reason, the replacement shall be
             164      appointed for the unexpired term.
             165          (ii) After filling that term, the replacement member may be appointed for only one
             166      additional full term.
             167          (e) If a commission member fails or refuses to fulfill the responsibilities and duties of a
             168      commission member, including the attendance at commission meetings, the executive director,
             169      with the approval of the commission, may remove the commission member and replace the
             170      member in accordance with this section.
             171          (4) A majority of the commission members constitutes a quorum. A quorum is sufficient
             172      authority for the commission to act.
             173          (5) (a) (i) Members who are not government employees shall receive no compensation or
             174      benefits for their services, but may receive per diem and expenses incurred in the performance of
             175      the member's official duties at the rates established by the Division of Finance under Sections
             176      63A-3-106 and 63A-3-107 .
             177          (ii) Members may decline to receive per diem and expenses for their service.
             178          (b) (i) State government officer and employee members who do not receive salary, per
             179      diem, or expenses from their agency for their service may receive per diem and expenses incurred
             180      in the performance of their official duties at the rates established by the Division of Finance under


             181      Sections 63A-3-106 and 63A-3-107 .
             182          (ii) State government officer and employee members may decline to receive per diem and
             183      expenses for their service.
             184          (6) The commission shall annually designate one of its members to serve as chair for a
             185      one-year period.
             186          Section 4. Section 13-33-202 is enacted to read:
             187          13-33-202. Commission duties.
             188          The commission shall:
             189          (1) purchase and use a seal;
             190          (2) adopt rules for the administration of this chapter in accordance with Title 63, Chapter
             191      46a, Administrative Rulemaking Act;
             192          (3) prepare all forms of contracts between sponsors, licensees, promoters, and contestants;
             193      and
             194          (4) hold hearings relating to matters under its jurisdiction, including violations of this
             195      chapter or rules promulgated under this chapter.
             196          Section 5. Section 13-33-203 is enacted to read:
             197          13-33-203. Director of commission.
             198          (1) The commission shall employ a director to conduct the business of the commission,
             199      who must not be a member of the commission.
             200          (2) The director serves at the pleasure of the commission.
             201          Section 6. Section 13-33-204 is enacted to read:
             202          13-33-204. Inspectors.
             203          (1) The commission may appoint one or more official representatives to be designated as
             204      inspectors which shall serve at the pleasure of the commission.
             205          (2) Each inspector must receive from the commission a card authorizing that inspector to
             206      act as an inspector for the commission.
             207          (3) An inspector may not promote or sponsor any contest.
             208          (4) Each inspector is entitled to receive a fee approved by the commission for the
             209      performance of duties under this chapter.
             210          Section 7. Section 13-33-205 is enacted to read:
             211          13-33-205. Affiliation with other commissions.


             212          The commission shall have the authority to affiliate with any other state or national boxing
             213      commission or athletic authority.
             214          Section 8. Section 13-33-301 is enacted to read:
             215     
Part 3. Licensing

             216          13-33-301. Licensing.
             217          (1) A license is required for a person to act as or to represent that the person is a:
             218          (a) promoter;
             219          (b) manager;
             220          (c) contestant;
             221          (d) second;
             222          (e) referee; or
             223          (f) judge.
             224          (2) The commission shall issue to a person who qualifies under this chapter a license in
             225      the classifications of:
             226          (a) promoter;
             227          (b) manager;
             228          (c) contestant;
             229          (d) second;
             230          (e) referee; or
             231          (f) judge.
             232          (3) All h [ licensing and permit fees ] MONEYS h collected pursuant to this section and
             232a      Sections 13-33-304
             233      h [ and ] , h 13-33-403 h , AND 13-33-504 h shall be deposited in the Commerce Service Fund.
             234          (4) Each applicant for licensure as a promoter shall:
             235          (a) submit an application in a form prescribed by the commission;
             236          (b) pay the fee determined by the department under Section 63-38-3.2 ;
             237          (c) provide to the commission evidence of financial responsibility which shall include
             238      financial statements and other information that the commission may reasonably require to
             239      determine that the applicant or licensee is able to competently perform as and meet the obligations
             240      of a promoter in this state;
             241          (d) produce information, documentation, and assurances as may be required to establish
             242      by a preponderance of the evidence the applicant's reputation for good character, honesty, integrity,


             243      and responsibility, which shall include information, documentation, and assurances that the
             244      applicant:
             245          (i) has not and at the time of application is not associating or consorting with a person
             246      engaging in illegal activity to the extent that the association or consorting represents a threat to the
             247      conduct of contests in the public's interest within the state, or a threat to the health, safety, and
             248      welfare of the applicant or a licensed contestant;
             249          (ii) has not been convicted of a crime in any jurisdiction which the commission determines
             250      by the nature of the crime and circumstances surrounding the crime should disqualify the applicant
             251      from licensure in the public interest;
             252          (iii) is not associating or consorting with a person who has been convicted of a felony in
             253      any jurisdiction to the extent that the association or consorting represents a threat to the conduct
             254      of contests in the public's interest within the state, or a threat to the health, safety, and welfare of
             255      the applicant or a licensed contestant;
             256          (iv) is not associating or consorting with a person engaging in illegal gambling or similar
             257      pursuits to the extent that the association or consorting represents a threat to the conduct of
             258      contests in the public's interest within the state, or a threat to the health, safety, and welfare of the
             259      applicant or a licensed contestant;
             260          (v) is not engaging in illegal gambling with respect to sporting events or gambling with
             261      respect to the promotions the applicant is promoting;
             262          (vi) has not been found in an administrative, criminal, or civil proceeding to have engaged
             263      in or attempted to engage in any fraud or misrepresentation in connection with a contest or any
             264      other sporting event;
             265          (vii) has not been found in an administrative, criminal, or civil proceeding to have violated
             266      or attempted to violate any law with respect to a contest in any jurisdiction or any law, rule, or
             267      order relating to the regulation of contests in this state or any other jurisdiction;
             268          (e) acknowledge in writing to the commission receipt, understanding, and intent to comply
             269      with this chapter and the rules made under this chapter; and
             270          (f) if requested by the commission or the director, meet with the commission or the
             271      director to examine the applicant's qualifications for licensure.
             272          (5) Each applicant for licensure as a contestant shall:
             273          (a) be not less than 18 years of age at the time the application is submitted to the


             274      commission;
             275          (b) submit an application in a form prescribed by the commission;
             276          (c) pay the fee established by the department under Section 63-38-3.2 ;
             277          (d) provide a certificate of physical examination, dated not more than 60 days prior to the
             278      date of application for license, in a form provided by the commission, completed by a licensed
             279      physician and surgeon certifying that the applicant is free from any physical or mental condition
             280      that indicates the applicant should not engage in activity as a contestant;
             281          (e) provide the commission with an accurate history of all matches that the applicant has
             282      engaged in since becoming a contestant, including information on whether the applicant won or
             283      lost each contest, and the matches in which there was a knockout or technical knockout;
             284          (f) produce information, documentation, and assurances as may be required to establish
             285      by a preponderance of the evidence the applicant's reputation for good character, honesty, integrity,
             286      and responsibility, which shall include information, documentation, and assurances that the
             287      applicant:
             288          (i) has not and at the time of application is not associating or consorting with a person
             289      engaging in illegal activity to the extent that the association or consorting represents a threat to the
             290      conduct of contests in the public's interest within the state, or a threat to the health, safety, and
             291      welfare of the applicant or a licensed contestant;
             292          (ii) has not been convicted of a crime in any jurisdiction which the commission determines
             293      by the nature of the crime and circumstances surrounding that crime should disqualify the applicant
             294      from licensure in the public interest;
             295          (iii) is not associating or consorting with any person who has been convicted of a felony
             296      in any jurisdiction to the degree that the commission finds that the association or consorting
             297      represents a threat to the conduct of contests in the public's interest within the state, or a threat to
             298      the health, safety, and welfare of the applicant or a licensed contestant;
             299          (iv) is not associating or consorting with a person engaging in illegal gambling or similar
             300      pursuits or a person gambling with respect to the promotion for which the applicant is receiving
             301      a license to the extent that the association or consorting represents a threat to the conduct of
             302      contests in the public's interest within the state, or a threat to the health, safety, and welfare of the
             303      applicant or a licensed contestant;
             304          (v) is not engaging in illegal gambling with respect to sporting events or gambling with


             305      respect to a contest in which the applicant will participate;
             306          (vi) has not been found in an administrative, criminal, or civil proceeding to have engaged
             307      in or attempted to have engaged in any fraud or misrepresentation in connection with a contest or
             308      any other sporting event;
             309          (vii) has not been found in an administrative, criminal, or civil proceeding to have violated
             310      or attempted to violate any law with respect to contests in any jurisdiction or any law, rule, or order
             311      relating to the regulation of contests in this state or any other jurisdiction;
             312          (g) acknowledge in writing to the commission receipt, understanding, and intent to comply
             313      with this chapter and the rules made under this chapter; and
             314          (h) if requested by the commission or the director, meet with the commission or the
             315      director to examine the applicant's qualifications for licensure.
             316          (6) Each applicant for licensure as a manager or second shall:
             317          (a) submit an application in a form prescribed by the commission;
             318          (b) pay a fee determined by the department under Section 63-38-3.2 ;
             319          (c) produce information, documentation, and assurances as may be required to establish
             320      by a preponderance of the evidence the applicant's reputation for good character, honesty, integrity,
             321      and responsibility, which shall include information, documentation, and assurances that the
             322      applicant:
             323          (i) has not and at the time of application is not associating or consorting with a person
             324      engaging in illegal activity to the extent that the association or consorting represents a threat to the
             325      conduct of contests in the public's interest within the state, or a threat to the health, safety, and
             326      welfare of the applicant or a licensed contestant;
             327          (ii) has not been convicted of a crime in any jurisdiction which the commission determines
             328      by the nature of the crime and circumstances surrounding that crime should disqualify the applicant
             329      from licensure in the public interest;
             330          (iii) is not associating or consorting with any person who has been convicted of a felony
             331      in any jurisdiction to the degree that the commission finds that the association or consorting
             332      represents a threat to the conduct of contests in the public's interest within the state, or a threat to
             333      the health, safety, and welfare of the applicant or a licensed contestant;
             334          (iv) is not associating or consorting with a person engaging in illegal gambling or similar
             335      pursuits or a person gambling with respect to the promotion for which the applicant is receiving


             336      a license to the extent that the association or consorting represents a threat to the conduct of
             337      contests in the public's interest within the state, or a threat to the health, safety, and welfare of the
             338      applicant or a licensed contestant;
             339          (v) is not engaging in illegal gambling with respect to sporting events or gambling with
             340      respect to a contest in which the applicant is participating;
             341          (vi) has not been found in an administrative, criminal, or civil proceeding to have engaged
             342      in or attempted to have engaged in any fraud or misrepresentation in connection with a contest or
             343      any other sporting event;
             344          (vii) has not been found in an administrative, criminal, or civil proceeding to have violated
             345      or attempted to violate any law with respect to a contest in any jurisdiction or any law, rule, or
             346      order relating to the regulation of contests in this state or any other jurisdiction;
             347          (d) acknowledge in writing to the commission receipt, understanding, and intent to comply
             348      with this chapter and the rules made under this chapter; and
             349          (e) if requested by the commission or director, meet with the commission or the director
             350      to examine the applicant's qualifications for licensure.
             351          (7) Each applicant for licensure as a referee or judge shall:
             352          (a) submit an application in a form prescribed by the commission;
             353          (b) pay a fee determined by the department under Section 63-38-3.2 ;
             354          (c) produce information, documentation, and assurances as may be required to establish
             355      by a preponderance of the evidence the applicant's reputation for good character, honesty, integrity,
             356      and responsibility, which shall include information, documentation, and assurances that the
             357      applicant:
             358          (i) has not and at the time of application is not associating or consorting with a person
             359      engaging in illegal activity to the extent that the association or consorting represents a threat to the
             360      conduct of contests in the public's interest within the state, or a threat to the health, safety, and
             361      welfare of the applicant or a licensed contestant;
             362          (ii) has not been convicted of a crime in any jurisdiction which the commission determines
             363      by the nature of the crime and circumstances surrounding the crime should disqualify the applicant
             364      from licensure in the public interest;
             365          (iii) is not associating or consorting with any person who has been convicted of a felony
             366      in any jurisdiction to the extent that the association or consorting represents a threat to the conduct


             367      of contests in the public's interest within the state, or a threat to the health, safety, and welfare of
             368      the applicant or a licensed contestant;
             369          (iv) is not associating or consorting with a person engaging in illegal gambling or similar
             370      pursuits or a person gambling with respect to the promotion for which the applicant is receiving
             371      a license to the extent that the association or consorting represents a threat to the conduct of
             372      contests in the public's interest within the state, or a threat to the health, safety, and welfare of the
             373      applicant or a licensed contestant;
             374          (v) is not engaging in illegal gambling with respect to sporting events or gambling with
             375      respect to a contest in which the applicant is participating;
             376          (vi) has not been found in an administrative, criminal, or civil proceeding to have engaged
             377      in or attempted to have engaged in any fraud or misrepresentation in connection with a contest or
             378      any other sporting event;
             379          (vii) has not been found in an administrative, criminal, or civil proceeding to have violated
             380      or attempted to violate any law with respect to contests in any jurisdiction or any law, rule, or order
             381      relating to the regulation of contests in this state or any other jurisdiction;
             382          (d) acknowledge in writing to the commission receipt, understanding, and intent to comply
             383      with this chapter and the rules made under this chapter;
             384          (e) provide evidence satisfactory to the commission that the applicant is qualified by
             385      training and experience to competently act as a referee or judge in a contest; and
             386          (f) if requested by the commission or the director, meet with the commission or the
             387      director to examine the applicant's qualifications for licensure.
             388          Section 9. Section 13-33-302 is enacted to read:
             389          13-33-302. Term of license -- Expiration -- Renewal.
             390          (1) (a) The commission shall issue each license under this chapter in accordance with a
             391      two-year renewal cycle established by rule.
             392          (b) The commission may by rule extend or shorten a renewal period by as much as one
             393      year to stagger the renewal cycles it administers.
             394          (2) At the time of renewal, the licensee shall show satisfactory evidence of compliance
             395      with renewal requirements established by rule by the commission.
             396          (3) Each license automatically expires on the expiration date shown on the license unless
             397      the licensee renews it in accordance with the rules established by the commission.


             398          Section 10. Section 13-33-303 is enacted to read:
             399          13-33-303. Grounds for denial of license -- Disciplinary proceedings -- Reinstatement.
             400          (1) The commission shall refuse to issue a license to an applicant and shall refuse to renew
             401      or shall revoke, suspend, restrict, place on probation, or otherwise act upon the license of a licensee
             402      who does not meet the qualifications for licensure under this chapter.
             403          (2) The commission may refuse to issue a license to an applicant and may refuse to renew
             404      or may revoke, suspend, restrict, place on probation, issue a public or private reprimand to, or
             405      otherwise act upon the license of any licensee in any of the following cases:
             406          (a) the applicant or licensee has engaged in unlawful or unprofessional conduct, as defined
             407      by statute or rule under this chapter;
             408          (b) the applicant or licensee has been determined to be mentally incompetent for any
             409      reason by a court of competent jurisdiction; or
             410          (c) the applicant or licensee is unable to practice the occupation or profession with
             411      reasonable skill and safety because of illness, drunkenness, excessive use of drugs, narcotics,
             412      chemicals, or any other type of material, or as a result of any other mental or physical condition,
             413      when the licensee's condition demonstrates a threat or potential threat to the public health, safety,
             414      or welfare.
             415          (3) Any licensee whose license under this chapter has been suspended, revoked, or
             416      restricted may apply for reinstatement of the license at reasonable intervals and upon compliance
             417      with any conditions imposed upon the licensee by statute, rule, or terms of the license suspension,
             418      revocation, or restriction.
             419          (4) The commission may issue cease and desist orders:
             420          (a) to a licensee or applicant who may be disciplined under Subsection (1) or (2); and
             421          (b) to any person who otherwise violates this chapter or any rules adopted under this title.
             422          (5) (a) The commission may not take disciplinary action against any person for unlawful
             423      or unprofessional conduct under this title, unless the commission initiates an adjudicative
             424      proceeding regarding the conduct within four years after the conduct is reported to the commission,
             425      except under Subsection (5)(b).
             426          (b) The commission may not take disciplinary action against any person for unlawful or
             427      unprofessional conduct more than ten years after the occurrence of the conduct, unless the
             428      proceeding is in response to a civil or criminal judgment or settlement and the proceeding is


             429      initiated within one year following the judgment or settlement.
             430          (6) Notwithstanding the provisions of Title 63, Chapter 46b, Administrative Procedures
             431      Act, the commission shall have the authority to immediately suspend the license of a contestant
             432      at such time and for such period that the commission believes is necessary to protect the health,
             433      safety, and welfare of the contestant, other contestants, or the public. The commission shall
             434      establish by rule appropriate procedures to invoke the suspension and to provide a suspended
             435      contestant a right to a hearing before the commission with respect to the suspension within a
             436      reasonable time after the suspension.
             437          Section 11. Section 13-33-304 is enacted to read:
             438          13-33-304. Additional fees for license of promoter.
             439          (1) In addition to the payment of any other fees and money due under this chapter, every
             440      promoter shall pay a license fee of:
             441          (a) 4% of the total gross receipts from admission fees to each live contest or exhibition,
             442      exclusive of any other state or federal tax or tax imposed by any political subdivision of this state;
             443      and
             444          (b) 4% of the total gross receipts from the sale, lease, or other exploitation of broadcasting,
             445      television, and motion picture rights for each contest or exhibition.
             446          (2) The fees due under Subsection (1) shall be calculated without any deductions for
             447      commissions, brokerage fees, distribution fees, advertising, contestants' purses, or any other
             448      expenses or charges.
             449          (3) The commission shall adopt rules:
             450          (a) requiring that the number and face value of all complimentary tickets be reported; and
             451          (b) governing the treatment of complimentary tickets for the purposes of computing gross
             452      receipts from admission fees under Subsection (1)(a).
             453          Section 12. Section 13-33-395 is enacted to read:
             454          13-33-305. Transition of licenses.
             455          (1) A license that was issued by the Division of Occupational and Professional Licensing
             456      under Title 58, Chapter 66, Utah Professional Boxing Regulation Act, prior to July 1, 2001, shall:
             457          (a) be considered a valid license under this chapter until the expiration date indicated on
             458      the license;
             459          (b) be subject to the provisions of this chapter, including provisions relating to disciplinary


             460      action against the license; and
             461          (c) not be renewed under Title 58, Occupations and Professions.
             462          (2) Upon the expiration of a license described in Subsection (1), a person desiring to
             463      continue licensure in the profession shall meet the same requirements as those required for new
             464      licensure under Section 13-33-301 .
             465          Section 12. Section 13-33-401 is enacted to read:
             466     
Part 4. Control of Contests

             467          13-33-401. Jurisdiction of commission.
             468          (1) The commission has and is vested with the sole direction, management, control, and
             469      jurisdiction over all contests or exhibitions of unarmed combat to be conducted, held, or given
             470      within this state, and no contest or exhibition may be conducted, held, or given within this state
             471      except in accordance with the provisions of this chapter.
             472          (2) Any contest involving a form of Oriental unarmed self-defense must be conducted
             473      pursuant to rules for that form which are approved by the commission before the contest is
             474      conducted, held, or given.
             475          Section 13. Section 13-33-402 is enacted to read:
             476          13-33-402. Ultimate fighting prohibited.
             477          (1) Ultimate fighting matches are prohibited.
             478          (2) Any person who publicizes, promotes, conducts, or engages in an ultimate fighting
             479      match is:
             480          (a) guilty of a class A misdemeanor as provided in Section 76-9-705 ; and
             481          (b) subject to license revocation under this chapter.
             482          Section 14. Section 13-33-403 is enacted to read:
             483          13-33-403. Permit to hold contest or promotion -- Bond required.
             484          (1) An application to hold a contest or multiple contests as part of a single promotion shall
             485      be made by a licensed promoter to the commission on forms provided by the commission.
             486          (2) The application shall be accompanied by a contest fee determined by the department
             487      under Section 63-38-3.2 .
             488          (3) Before a permit to hold a contest or promotion is granted, the applicant shall post a
             489      surety bond with the commission in an amount and form determined by the commission, providing
             490      for forfeiture and subsequent disbursement of the proceeds from the bond if the applicant fails to


             491      comply with the requirements of this chapter or rules made under this chapter relating to the
             492      promotion or conduct of the contest or promotion.
             493          (4) The commission may approve or deny approval to hold a contest or promotion
             494      permitted under this chapter. Approval shall be granted upon a determination by the commission
             495      that:
             496          (a) the promoter of the contest or promotion is properly licensed;
             497          (b) a bond meeting the requirements of Subsection (3) has been posted by the promoter
             498      of the contest or promotion; and
             499          (c) the contest or promotion will be held in accordance with this chapter and rules made
             500      under this chapter.
             501          Section 15. Section 13-33-404 is enacted to read:
             502          13-33-404. Rules for the conduct of contests.
             503          (1) The commission shall adopt rules in accordance with the provisions of Title 63,
             504      Chapter 46a, Utah Administrative Rulemaking Act, for the conduct of contests in the state.
             505          (2) The rules shall include authority for stopping contests, impounding purses with respect
             506      to contests when there is a question with respect to the contest, contestants, or any other licensee
             507      associated with the contest, and reasonable and necessary provisions to ensure that all obligations
             508      of a promoter with respect to any promotion or contest are paid in accordance with agreements
             509      made by the promoter.
             510          Section 16. Section 13-33-405 is enacted to read:
             511          13-33-405. HIV and drug tests.
             512          The commission shall adopt rules in accordance with the provisions of Title 63, Chapter
             513      46a, Utah Administrative Rulemaking Act for HIV and drug testing of contestants which include:
             514          (1) provisions under which contestants shall produce evidence based upon competent
             515      laboratory examination that they are HIV negative as a condition of participating as a contestant
             516      in any contest; and
             517          (2) provisions under which contestants shall be subject to random drug testing before or
             518      after participation in a contest, and sanctions, including barring participation in a contest or
             519      withholding a percentage of any purse, that shall be placed against a contestant testing positive for
             520      alcohol or any other drug that in the opinion of the commission is inconsistent with the safe and
             521      competent participation of that contestant in a contest.


             522          Section 17. Section 13-33-501 is enacted to read:
             523     
Part 5. Miscellaneous Provisions

             524          13-33-501. Additional fee for funding of amateur boxing.
             525          (1) In addition to the payment of any other fees or taxes required by this chapter, a
             526      promoter shall pay to the commission a fee of $1.00 for each ticket sold for admission to a live
             527      contest or exhibition which is held in this state.
             528          (2) The money collected pursuant to Subsection (1) shall be deposited in the General Fund
             529      as dedicated credits to be used by the commission to award grants to organizations which promote
             530      amateur boxing in this state.
             531          (3) The commission shall adopt rules governing the manner in which:
             532          (a) the fees required by Subsection (1) must be paid;
             533          (b) applications for grants may be submitted to the commission; and
             534          (c) the standards to be used to award grants to organizations which promote amateur
             535      boxing in this state.
             536          (4) Any funding available for the purposes of this section shall be nonlapsing.
             537          Section 18. Section 13-33-502 is enacted to read:
             538          13-33-502. Reports to commission.
             539          (1) Every promoter shall, within 10 days after the completion of any contest or exhibition
             540      for which an admission fee is charged, furnish to the commission a verified written report showing:
             541          (a) the number of tickets sold or issued for the contest or exhibition;
             542          (b) the amount of the:
             543          (i) gross receipts from admission fees without any deductions for commissions, brokerage
             544      fees, distribution fees, advertising, contestants' purses, or any other expenses or charges; and
             545          (ii) gross receipts derived from the sale, lease, or other exploitation of broadcasting,
             546      motion picture, and television rights of such contest or exhibition without any deductions for
             547      commissions, brokerage fees, distribution fees, advertising, contestants' purses, or any other
             548      expenses or charges; and
             549          (c) any other matters prescribed by rule.
             550          (2) The promoter shall, at the same time as submitting the report required by Subsection
             551      (1), pay to the commission the fees required by Sections 13-33-304 and 13-33-501 .
             552          Section 19. Section 13-33-503 is enacted to read:


             553          13-33-503. Contracts.
             554          Before a contest is held, a copy of the signed contract or agreement between the promoter
             555      of the contest and each contestant shall be filed with the commission. Approval of the contract's
             556      terms and conditions shall be obtained from the commission as a condition precedent to the
             557      contest.
             558          Section 20. Section 13-33-504 is enacted to read:
             559          13-33-504. Withholding of purse.
             560          (1) The commission, the director, or any other agent authorized by the commission may
             561      order a promoter to withhold any part of a purse or other money belonging or payable to any
             562      contestant, manager, or second if, in the judgment of the commission, director or other agent:
             563          (a) the contestant is not competing honestly or to the best of his skill and ability or the
             564      contestant otherwise violates any rules adopted by the commission or any of the provisions of this
             565      chapter; or
             566          (b) the manager or second violates any rules adopted by the commission or any of the
             567      provisions of this chapter.
             568          (2) This section does not apply to any contestant in a wrestling exhibition who appears not
             569      to be competing honestly or to the best of his skill and ability.
             570          (3) Upon the withholding of any part of a purse or other money pursuant to this section,
             571      the commission shall immediately schedule a hearing on the matter, provide adequate notice to all
             572      interested parties, and dispose of the matter as promptly as possible.
             573          (4) If it is determined that a contestant, manager, or second is not entitled to any part of
             574      his share of the purse or other money, the promoter shall pay the money over to the commission.
             575          Section 21. Section 13-33-505 is enacted to read:
             576          13-33-505. Penalty for unlawful conduct.
             577          A person who engages in unlawful conduct, as defined in Section 13-33-102 , is guilty of
             578      a class A misdemeanor.
             579          Section 22. Section 13-33-506 is enacted to read:
             580          13-33-506. Exemptions.
             581          The provisions of this chapter do not apply to:
             582          (1) any amateur contests or exhibitions of unarmed combat or any combination thereof
             583      conducted by or participated in exclusively by any school, college, or university or by any


             584      association or organization of a school, college, or university, when each participant in the contests
             585      or exhibitions is a bona fide student in the school, college, or university; or
             586          (2) exhibitions of Oriental unarmed self-defense in which no dangerous blow is intended
             587      to be struck.
             588          Section 23. Repealer.
             589          This act repeals:
             590          Section 58-66-101, Title.
             591          Section 58-66-102, Definitions.
             592          Section 58-66-201, Commission.
             593          Section 58-66-301, Licensing.
             594          Section 58-66-302, Term of license -- Expiration -- Renewal.
             595          Section 58-66-303, Exemptions from licensure.
             596          Section 58-66-401, Grounds for denial of license -- Disciplinary proceedings.
             597          Section 58-66-501, Unlawful conduct.
             598          Section 58-66-502, Unprofessional conduct.
             599          Section 58-66-503, Ultimate fighting prohibited.
             600          Section 58-66-601, Authority.
             601          Section 58-66-602, Approval to hold contest.
             602          Section 58-66-603, Contracts.
             603          Section 58-66-604, Rules.
             604          Section 58-66-605, HIV testing -- Testing of body fluids of professional contestants --
             605      Sanctions for tests positive for alcohol or drugs.
             606          Section 58-66-606, Supervision of contests -- Payment of staff.
             607          Section 58-66-607, Disposition of monies withheld from purse of professional
             608      contestant.
             609          Section 58-66-608, Report of gross receipts -- 5% state event tax on gross receipts.
             610          Section 24. Effective date.
             611          This act takes effect on July 1, 2001.


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