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S.B. 108






Sponsor: Ed P. Mayne

             6      This act modifies the Pete Suazo Athletic Commission Act. The act reinstates a percentage
             7      license fee on broadcast revenues and modifies the percentage license fee on admission
             8      revenues. The act provides for a portion of license fees received from professional boxing
             9      contests or exhibitions to be deposited in the Commerce Service Fund as a dedicated credit
             10      to be used by the commission to award grants to organizations which promote amateur
             11      boxing in the state. The act expands the commission's rulemaking authority to provide a
             12      process for the application and awarding of grants. The act authorizes the commission to
             13      exempt from the payment of license fees one contest or exhibition per year.
             14      This act affects sections of Utah Code Annotated 1953 as follows:
             15      AMENDS:
             16          13-33-304, as last amended by Chapter 9, Laws of Utah 2001, Second Special Session
             17      Be it enacted by the Legislature of the state of Utah:
             18          Section 1. Section 13-33-304 is amended to read:
             19           13-33-304. Additional fee for license of promoter.
             20          (1) In addition to the payment of any other fees and money due under this chapter, every
             21      promoter shall pay a license fee of [5%]:
             22          (a) 3% of the total gross receipts from admission fees to each live contest or exhibition,
             23      exclusive of any other state or federal tax or tax imposed by any political subdivision of this
             24      state[.]; and
             25          (b) 3% of total gross receipts from the sale, lease, or other exploitation of broadcasting,
             26      television, and motion picture rights for each contest or exhibition.
             27          (2) The [fee] license fees due under Subsection (1) shall be calculated without any

             28      deductions for commissions, brokerage fees, distribution fees, advertising, contestants' purses, or
             29      any other expenses or charges.
             30          (3) One-half of license fees collected under Subsection (1)(a) from professional boxing
             31      contests or exhibitions shall be deposited in the Commerce Service Fund as a dedicated credit to
             32      be used by the commission to award grants to organizations which promote amateur boxing in the
             33      state.
             34          [(3) The] (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             35      Act, the commission shall adopt rules:
             36          (a) requiring that the number and face value of all complimentary tickets be reported; [and]
             37          (b) governing the treatment of complimentary tickets for the purposes of computing gross
             38      receipts from admission fees under Subsection (1)[.];
             39          (c) governing the manner in which applications for grants under Subsection (3) may be
             40      submitted to the commission; and
             41          (d) establishing standards for awarding grants under Subsection (3) to organizations which
             42      promote amateur boxing in the state.
             43          (5) For the purpose of creating a greater interest in contests in the state, the commission
             44      may exempt from the payment of license fees under this section one contest or exhibition in each
             45      calendar year, intended as a showcase event. The commission shall select the contest or exhibition
             46      to be exempted based on factors which include:
             47          (a) attraction of the optimum number of spectators;
             48          (b) costs of promoting and producing the contest or exhibition;
             49          (c) ticket pricing;
             50          (d) committed promotions and advertising of the contest or exhibition;
             51          (e) rankings and quality of the contestants; and
             52          (f) committed television and other media coverage of the contest or exhibition.

Legislative Review Note
    as of 1-8-02 4:52 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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