Senate Study Bill 3192 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LABOR AND BUSINESS RELATIONS BILL BY CHAIRPERSON COURTNEY) A BILL FOR An Act relating to the regulation of professional and 1 amateur mixed martial arts matches and events by the labor 2 commissioner and providing penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5823SC (4) 83 ak/nh

S.F. _____ Section 1. Section 90A.1, Code 2009, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 2A. “Mixed martial arts match” means a 3 professional or amateur mixed martial arts match or event that 4 is open to the public. 5 Sec. 2. Section 90A.1, subsections 3 and 4, Code 2009, are 6 amended to read as follows: 7 3. “Official” means a person who is employed as a referee, 8 judge, timekeeper, or match physician for a boxing or 9 wrestling match or event covered by this chapter . 10 4. “Participant” means a person involved in the boxing 11 or wrestling a match or event covered by this chapter, and 12 includes contestants, seconds, managers, and similar event 13 personnel. 14 Sec. 3. Section 90A.1, subsection 6, Code 2009, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . c. Organizes, holds, advertises, or 17 otherwise conducts a mixed martial arts match. 18 Sec. 4. Section 90A.2, subsection 1, Code 2009, is amended 19 to read as follows: 20 1. A person shall not act as a promoter of a professional 21 boxing or wrestling match or a mixed martial arts match without 22 first obtaining a license from the commissioner. This 23 subsection shall not apply to a person distributing a 24 closed-circuit, pay-per-view, or similarly distributed signal 25 to a person acting as a promoter or to a person viewing the 26 signal in a private residence. 27 Sec. 5. Section 90A.4, Code 2009, is amended to read as 28 follows: 29 90A.4 Match promoter responsibility. 30 The A promoter , as defined in section 90A.1, subsection 31 6 , paragraph “a” , shall be responsible for the conduct of 32 all officials and participants at a professional boxing 33 or wrestling match or event covered by this chapter . The 34 commissioner may reprimand, suspend, deny, or revoke the 35 -1- LSB 5823SC (4) 83 ak/nh 1/ 5

S.F. _____ participation of any promoter, official, or participant for 1 violations of rules adopted by the commissioner. Rulings or 2 decisions of a promoter or an official are not decisions of the 3 commissioner and are not subject to procedures under chapter 4 17A. The commissioner may take action based upon the rulings 5 or decisions of a promoter or an official. This section shall 6 not apply to a promoter as defined in section 90A.1, subsection 7 6, paragraph “b” . 8 Sec. 6. Section 90A.5, subsection 1, paragraphs c and h, 9 Code 2009, are amended to read as follows: 10 c. A boxer contestant fails to pass a prefight physical 11 examination. 12 h. A match promoter, professional boxer contestant , or 13 participant is in violation of rules adopted pursuant to 14 section 90A.7. 15 Sec. 7. Section 90A.5, subsection 1, Code 2009, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . i. A contestant does not present adequate 18 proof of age pursuant to section 90A.12. 19 Sec. 8. Section 90A.6, subsection 1, unnumbered paragraph 20 1, Code 2009, is amended to read as follows: 21 The commissioner may suspend, deny, revoke, annul, or 22 withdraw a license, registration, or authority to participate 23 in a professional boxing or wrestling match or mixed martial 24 arts match if any of the following occur: 25 Sec. 9. Section 90A.9, subsection 1, Code 2009, is amended 26 to read as follows: 27 1. The promoter of a professional boxing or wrestling match 28 or event or a mixed martial arts match shall, within twenty 29 days after the match or event, furnish to the commissioner a 30 written report stating the number of tickets sold, the gross 31 amount of admission proceeds of the professional boxing or 32 wrestling match or event , and other matters the commissioner 33 may prescribe by rule. The value of complimentary tickets in 34 excess of five percent of the number of tickets sold shall 35 -2- LSB 5823SC (4) 83 ak/nh 2/ 5

S.F. _____ be included in the gross admission receipts. Within twenty 1 days of the match or event, the promoter shall pay to the 2 treasurer of state a tax of five percent of its total gross 3 admission receipts, after deducting state sales tax, from the 4 sale of tickets of admission to the professional boxing or 5 wrestling match or event. 6 Sec. 10. Section 90A.11, Code 2009, is amended to read as 7 follows: 8 90A.11 License penalty penalties —— cease and desist order . 9 1. A person who acts as a professional boxing or wrestling 10 match promoter , as defined in section 90A.1 , without first 11 obtaining a license commits a serious misdemeanor . In addition 12 to criminal penalties, the promoter and shall be liable to the 13 state for the taxes and penalties pursuant to section 90A.9. 14 2. a. Notwithstanding the procedural requirements of 15 chapter 17A, the commissioner may issue an order to cease and 16 desist a match or event if the criteria of this subsection 17 are met. The county sheriff shall assist with service and 18 enforcement of the commissioner’s order to cease and desist if 19 requested by the commissioner. The provisions of chapter 17A 20 shall apply after enforcement of the order to cease and desist. 21 b. The commissioner may issue an order to cease and desist a 22 match or event if all of the following have occurred: 23 (1) The commissioner conducted an investigation and 24 determined a promoter is organizing, advertising, holding, 25 or conducting an event or match that is within the scope of 26 section 90A.2. 27 (2) The promoter has not applied for or has been denied a 28 license. 29 (3) The deadline to file a timely license application has 30 passed. 31 3. a. A person who acts as a promoter without first 32 obtaining a license is subject to a civil penalty of not more 33 than ten thousand dollars for each violation. 34 b. The commissioner shall notify the unlicensed promoter 35 -3- LSB 5823SC (4) 83 ak/nh 3/ 5

S.F. _____ of a proposed civil penalty by service in the same manner as 1 an original notice or by certified mail. If within fifteen 2 business days from the receipt of the notice, the unlicensed 3 promoter fails to file a notice of contest in accordance with 4 rules adopted by the commissioner pursuant to chapter 17A, the 5 penalty as proposed shall be deemed final agency action for 6 purposes of judicial review. 7 c. The commissioner shall notify the department of revenue 8 upon final agency action regarding the assessment of a civil 9 penalty against an unlicensed promoter. Interest shall be 10 calculated on the penalty from the date of final agency action. 11 d. Judicial review of final agency action pursuant to 12 this section may be sought in accordance with the terms of 13 section 17A.19. If no petition for judicial review is filed 14 within sixty days after service of the final agency action 15 of the commissioner, the commissioner’s findings of fact and 16 final agency action shall be conclusive in connection with any 17 petition for enforcement which is filed by the commissioner 18 after the expiration of the sixty-day period. The clerk of 19 court, unless otherwise ordered by the court, shall enter a 20 decree enforcing the final agency action and shall transmit 21 a copy of the decree to the commissioner and the unlicensed 22 promoter named in the petition. 23 e. Civil penalties recovered pursuant to this section shall 24 be remitted by the commissioner to the treasurer of state for 25 deposit in the general fund of the state. 26 Sec. 11. Section 90A.12, Code 2009, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 3. A person shall not be a contestant in a 29 mixed martial arts match unless the contestant is twenty-one 30 years of age or older. Each contestant shall submit to 31 the commissioner a certified birth certificate, or similar 32 document, validating the contestant’s date of birth prior to 33 the match in order to verify the contestant’s eligibility. 34 -4- LSB 5823SC (4) 83 ak/nh 4/ 5

S.F. _____ EXPLANATION 1 This bill places the regulation of amateur and professional 2 mixed martial arts (MMA) matches and events under the authority 3 of the labor commissioner. 4 An MMA match is defined as a professional or amateur MMA 5 match or event that is open to the public. The definition 6 of “promoter” is expanded to include a person who organizes, 7 holds, advertises, or conducts professional or amateur MMA 8 matches. 9 Under Code section 90A.4, promoters are accountable for the 10 conduct of all officials and participants at MMA matches and 11 events. 12 Pursuant to Code section 90A.5(1), as amended by the bill, 13 the commissioner may suspend an MMA match or event if an MMA 14 contestant does not pass a required prefight physical exam; if 15 a promoter, contestant, or participant is in violation of any 16 rules; or if an MMA contestant fails to present adequate proof 17 of age in order to compete. 18 The commissioner also has the authority in certain 19 circumstances as presented in Code section 90A.6(1) to revoke, 20 deny, or withdraw a license for or deny participation in an MMA 21 match or event. 22 Promoters are required to pay taxes on the gross receipts of 23 MMA matches and events. The process and tax are described in 24 Code section 90A.9(1). 25 The bill amends Code section 90A.11 to authorize the labor 26 commissioner to impose civil penalties not to exceed $10,000 27 per violation for acting as a promoter without a license. 28 The labor commissioner may issue a cease and desist order to 29 prevent a promoter from holding an unlicensed event or match. 30 The bill provides that an MMA contestant must be at least 21 31 years of age, and provide proof thereof pursuant to new Code 32 section 90A.12(3). 33 -5- LSB 5823SC (4) 83 ak/nh 5/ 5