GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 555

Short Title:  North Carolina Boxing Commission.	(Public)

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Sponsors: Representatives Black; and Hensley.

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Referred to:  Business and Labor, if favorable, Finance.

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March 27, 1995

A BILL TO BE ENTITLED
AN ACT TO CREATE A NORTH CAROLINA BOXING COMMISSION.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 143 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 68.
"North Carolina State Boxing Commission.
"§ 143-650.  Legislative findings and declarations.
The General Assembly finds and declares to be the public policy of this State that it is in the best interest of the public and of boxing that boxing should be subject to an effective and efficient system of strict control and regulation in order to:
(1)	Protect the safety and well-being of participants in boxing; and
(2)	Promote the public confidence and trust in the regulatory process and the conduct of boxing.
To further the public confidence and trust, the provisions of this Article are designed to regulate all persons, practices, and associations related to the operation of any boxing event, performance, or contest held in North Carolina.
"§ 143-651.  Definitions.
As used in this Article:
(1)	'Announcer' means any person who engages in the act of announcing a boxing match.
(2)	'Board' means the Medical Advisory Board of the State Boxing Commission.
(3)	'Boxer' means any person who engages as a participant in a boxing match.
(4)	'Boxing match' means a match where the participants engage in the use of boxing techniques (using the fist only), and where the object of a match is to win by decision, knockout (KO), or technical knockout (TKO).
(5)	'Broadcast' means any audio or visual transmission sent by any means of signal within, into, or from this State, whether live, by tape, or time delayed, and includes any replays thereof.
(6)	'Closed-circuit telecast' means any telecast which is not intended to be available for viewing without the payment of a fee collected for or based upon each event viewed for the privilege of viewing the telecast, and includes the term 'pay per view'.  This definition includes, but is not limited to, telecasts to arenas, bars, clubs, entertainment or meeting centers, and private residences.
(7)	'Commission' means the North Carolina State Boxing Commission.
(8)	'Contest' means a boxing match in which the participants strive earnestly to win.
(9)	'Contestant' means any person who engages as a participant in a boxing match.
(10)	'Exhibition' means a boxing match where the participants display their boxing skills and technique without necessarily striving to win.
(11)	'He' or 'his' shall also mean 'she' or 'her'.
(12)	'Judge' means a person who has a vote in determining the winner of any match or contest.
(13)	'License' means any person, club, corporation, or organization licensed under this Article by the Commission to conduct, hold, or give boxing matches or exhibitions.
(14)	'Licensee' means a person to whom a license has been issued pursuant to the provisions of this Article.
(15)	'Manager' means any person and includes any officer, director, employee, or stockholder of a corporate manager who controls or administers the boxing affairs of any contestant, and who:
a.	By contract, agreement, or other arrangement with any person undertakes or has undertaken to represent in any way the interest of the contestant in any professional boxing contest in which the boxer is to participate as a contestant, and is entitled under that contract, agreement, or arrangement to receive monetary or other compensation for his services, without regard to the sources of the compensation, except that the term 'manager' shall not be construed to mean any attorney licensed to practice in this State whose participation in the activities is restricted solely to his representing the interests of a professional boxer as his client;
b.	Directs or controls the professional boxing activities of any professional boxer; or
c.	Receives or is entitled to receive a percentage of the gross purse or gross income of any professional boxing contest.
(16)	'Match' means any boxing contest or exhibition, and includes any event, engagement, sparring or practice session, show or program where the public is admitted and in which there is intended to be physical contact, whether an exhibition or contest.  This definition does not include training or practice sessions when no admission is charged.
(17)	'Matchmaker' means a person through whom matches are arranged for participants and who otherwise assists participants in procuring engagement dates for boxing.
(18)	'Natural person' means an individual.
(19)	'Participant' means any person who engages in a match or exhibition and performs as a boxer.
(20)	'Person' means an individual, group of individuals, business, corporation, partnership, or any other individual or collective entity.
(21)	'Physician' means an individual licensed to practice medicine in this State.
(22)	'Professional' means any person who has received or competed for any purse or other article or thing of value for participating in a boxing match.
(23)	'Promoter' means any person and includes any officer, director, employee, or stockholder of a corporate promoter who produces, arranges, stages, holds, or gives any match in North Carolina involving a professional participant or shows or causes to be shown in North Carolina a closed-circuit telecast of any match involving any professional participant whether or not the telecast originates in North Carolina.
(24)	'Referee' means the official who shall enter and remain in the ring for the duration of a match and shall enforce the rules and maintain order in the ring.
(25)	'Ring official' means any person who performs an official function for the duration of a match.
(26)	'Second' means any person who will work or be present in the corner of a participant for the duration of a match.
(27)	'Timekeeper' means any person who will operate the clock or watch for the duration of a match for the purpose of keeping the official time of the match.
"§ 143-652.  State Boxing Commission: creation; organization.
(a)	Creation. – The North Carolina State Boxing Commission is hereby created within the Department of the Secretary of State to regulate the sport of boxing in North Carolina.  The Commission shall consist of five members, appointed as follows:
(1)	One member shall be appointed by the Governor for an initial term of two years;
(2)	One member shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate for an initial term of one year, in accordance with G.S. 120-121;
(3)	One member shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives for an initial term of one year; and
(4)	Two members shall be appointed by the Secretary of State.  One shall serve for an initial term of three years, and the other shall serve for an initial term of two years.
Terms for all members of the Commission except for the initial appointments shall be for three years.
The Secretary of State shall designate which member of the Commission is to serve as chairman.  A member of the Commission may be removed from office by the Secretary of State for cause.  Each member before entering upon his duties shall take and subscribe an oath to perform the duties of his office faithfully, impartially, and justly to the best of his ability.  A record of these oaths shall be filed in the Department of the Secretary of State.
(b)	Vacancies. – Members shall serve until their successors are appointed and have been qualified.  Any vacancy in the membership of the Commission shall be filled in the same manner as the original appointment.  Vacancies for members appointed by the General Assembly shall be filled in accordance with G.S. 120-122.  A vacancy in the membership of the Commission other than by expiration of term shall be filled for the unexpired term only.
(c)	Meetings. – Meetings of the Commission shall be called by the chairman or by any two members of the Commission, and meetings shall be held at least quarterly.  Any three members of the Commission shall constitute a quorum at any meeting.  Action may be taken and motions and resolutions adopted by the Commission at any meeting by the affirmative vote of a majority of the members of the Commission present at a meeting at which a quorum exists.  Any or all members may participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication by which all members participating may simultaneously hear each other during the meeting.  A member participating in the meeting by this means is deemed to be present in person at the meeting.
(d)	Civil Penalties. – The Commission may issue an order against a licensee or other person who willfully violates any provision of this Article, imposing a civil penalty of up to five thousand dollars ($5,000) for a single violation or of up to twenty-five thousand dollars ($25,000) for multiple violations in a single proceeding or a series of related proceedings.  No order under this subsection may be entered without prior notice and an opportunity for a contested case hearing conducted pursuant to Article 3 of Chapter 150B of the General Statutes.
(e)	Rule-Making Authority of the Commission. – The Commission shall have the exclusive authority to issue rules for the regulation of the conduct, promotion, and performances of boxing matches and exhibitions in this State and closed-circuit telecast of the events made in, into, or from this State.  The rules shall be issued pursuant to the provisions of Chapter 150B of the General Statutes and may include, without limitation, the following subjects:
(1)	Requirements for issuance of licenses and permits required by this Article;
(2)	Regulation of ticket sales;
(3)	Physical requirements for contestants, including classification by weight and skill;
(4)	Supervision of matches and exhibitions by licensed physicians and referees;
(5)	Collection and payment of gross receipts taxes;
(6)	Insurance and bonding requirements;
(7)	Compensation of participants and licensees;
(8)	Contracts and financial arrangements;
(9)	Prohibition of dishonest, unethical, and injurious practices; and
(10)	Facilities.
(f)	Enforcement of Article. – The Secretary of State in his discretion may assign employees of the Department of the Secretary of State who are sworn law enforcement officers to investigate and assist the Commission with the administration of this Article.  These officers shall have jurisdiction throughout the State, and shall have all the power and authority possessed by a law enforcement officer when executing arrest warrants.
(g)	Compensation. – None of the members of the Commission shall receive compensation for serving on the Commission.  However, members of the Commission may be reimbursed for their expenses in accordance with the provisions of Chapter 138 of the General Statutes.
(h)	Executive Director. – The Secretary of State shall appoint an executive director for the State Boxing Commission chosen from a list of nominees submitted to him by the Commission who shall be responsible to and serve at the pleasure of the Secretary of State.  The executive director shall perform any duties described in the administrative rules adopted by the Commission.
(i)	State Boxing Commission Revenue Fund. – There is created a special fund to be known as the State Boxing Commission Revenue Fund.  Monies collected pursuant to the provisions of this Article shall be deposited into the fund and applied to the administration of the Article.
"§ 143-653.  Medical Advisory Board.
(a)	Creation. – A Medical Advisory Board is established within the Department of the Secretary of State to advise the Commission on matters concerning the health and physical condition of boxers and health issues relating to the conduct of exhibitions and boxing matches.  The Medical Advisory Board shall consist of five members, each licensed to practice medicine in this State, appointed as follows:
(1)	One member shall be appointed by the Governor for an initial term of two years;
(2)	One member shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, in accordance with G.S. 120-121, for an initial term of one year;
(3)	One member shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, in accordance with G.S. 120-121, for an initial term of one year; and
(4)	Two members shall be appointed by the Secretary of State.  One shall be for an initial term of three years, the other shall be for an initial term of two years.
Terms of members of the Board other than initial terms shall be for three years.  The Secretary of State shall designate which member of the Board is to serve as chairman.  A member of the Board may be removed from office by the Secretary of State for cause.  Each member before entering upon his duties shall take and subscribe an oath to perform the duties of his office faithfully, impartially, and justly to the best of his ability.  A record of these oaths shall be filed in the Department of the Secretary of State.
(b)	Vacancies. – Members shall serve until their successors are appointed and have been qualified.  Any vacancy in the membership of the Board shall be filled in the same manner as the original appointment.  Vacancies for members appointed by the General Assembly shall be filled in accordance with G.S. 120-122.  A vacancy in the membership of the Board other than by expiration of term shall be filled for the unexpired term only.
(c)	Meetings. – Meetings of the Board shall be called by its chairman or by any two members of the Board, and meetings shall be held at least quarterly.  Any three members of the board shall constitute a quorum at any meeting.  Action may be taken and motions and resolutions adopted by the Board at any meeting by the affirmative vote of a majority of the members of the Board present at a meeting at which a quorum exists.  Any or all members may participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication by which all members participating may simultaneously hear each other during the meeting.  A member participating in a meeting by this means is deemed to be present in person at the meeting.
(d)	Responsibilities and Duties of the Board. – The Board shall serve in an advisory capacity to the Commission, and from time to time may prepare and submit to the Commission for its consideration and approval any additional rules, regulations, and standards of examination as in its judgment will safeguard the physical welfare of all participants engaged in a boxing match.
(e)	Compensation. – None of the members of the Board shall receive compensation for serving on the Board.  However, members of the Board may be reimbursed for their expenses in accordance with the provisions of Chapter 138.
"§ 143-654.  Licensing and permitting.
(a)	The Commission has the exclusive authority to issue, deny, suspend, or revoke any license or permit provided for in this Article.
(b)	It is unlawful for any person to act in this State as an announcer, contestant, judge, manager, matchmaker, promoter, referee, timekeeper, or second unless he is licensed to do so under this Article.
(c)	A license for an announcer, contestant, judge, matchmaker, referee, timekeeper, or second shall be issued only to a natural person.  A natural person shall not transfer or assign his license or change it into another name.  A license for a manager or promoter may be issued to a corporation or partnership; provided however, that all officers or partners shall submit an application for individual licensure, and only those officers or partners who are licensed shall be entitled to negotiate or sign contracts.  The addition of a new officer or partner during the license period shall necessitate the filing of an application for individual licensure by the new officer or partner.
(d)	Any applicant for a license under this Article shall file with the Commission the appropriate nonrefundable fee, and any forms, documents, medical examinations, or exhibits as the Commission may require in order to properly administer this Article.  The information requested shall include the date of birth and social security number of each applicant as well as any other personal data necessary to positively identify the applicant and may include the requirement of verification of any documents the Commission deems appropriate.  A person may not participate under a fictitious or assumed name in any match unless he has first registered the name with the Commission.
(e)	The Commission shall collect the following license fees:
Announcer	$50.00
Contestant	$25.00
Judge	$50.00
Manager	$100.00
Matchmaker	$200.00
Promoter	$300.00
Referee	$50.00
Timekeeper	$50.00
Second	$25.00.
(f)	An applicant for a promoter's license must submit, in addition to any other forms, documents, or exhibits, a surety bond in an amount to be no less than five thousand dollars ($5,000).  The Commission may also require an additional surety bond be filed when the projected liability for the taxes specified in G.S. 143-656 for any match could exceed five thousand dollars ($5,000) or a base amount set by the Commission.  The amount of the surety bond shall be negotiable upon the sole discretion of the Commission or executive director.
(g)	All surety bonds shall be upon forms approved by the Secretary of State and supplied by the Commission.
(h)	It is unlawful for any person to hold a boxing match or exhibition to be held in this State or act as promoter of a closed-circuit telecast unless the person first applies for a permit for each match or exhibition or telecast on forms provided by the Commission.  The Commission must issue a permit before any match or exhibition or telecast can be lawfully held or telecast.  The Commission shall set the requirements and standards for the issuance of the permits.
(i)	A willful violation of this section shall constitute a Class 2 misdemeanor.
"§ 143-655.  Contracts and financial arrangements.
(a)	Any contract between a boxer and any other licensee, any contract involving a boxing match or exhibition held or to be held in this State, and any contract involving the broadcast or telecast by radio, television, or motion picture of matches which originate in North Carolina or are telecast via closed circuit, including pay-per-view, in, from, or into North Carolina must meet the requirements of administrative rules as set forth by the Commission.  Any contract which does not satisfy the requirements of the administrative rules shall be void and unenforceable.  All contracts shall be in writing.
(b)	Whenever it appears to the Commission that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this section or any rule or order hereunder, the Commission may in its discretion bring an action in any court of competent jurisdiction to enjoin those acts or practices and to enforce compliance with this Article or any rule or order issued pursuant to this Article.
(c)	A willful violation of this section shall constitute a Class 2 misdemeanor.
"§ 143-656.  Gross receipts; closed-circuit television.
(a)	The promoter of a boxing match or exhibition in this State or closed-circuit telecast of a boxing match or exhibition from, in, or into this State shall collect and pay six percent (6%) of the total gross receipts from ticket sales and closed-circuit telecast sales in North Carolina to the event, exclusive of any federal, State, or local taxes, to the State Boxing Commission Revenue Fund.
(b)	Within eight calendar days following a boxing match or exhibition held in this State or the closed-circuit telecast of a boxing match or exhibition from, in, or into this State, the promoter of the event shall file with the Commission a written report, on a form prescribed by the Commission, identifying the date and location of the event, the name of the promoter of the event, and the gross receipts from sales in North Carolina of tickets to the event or from closed-circuit telecast sales.  The promoter shall deliver to the Commission along with the report the gross receipts tax collected pursuant to subsection (a) of this section.
(c)	Any promoter who willfully makes a false and fraudulent report under this section is guilty of perjury and, upon conviction, is subject to punishment as provided by law.  Any promoter who willfully fails or refuses to make a report or to collect and pay over the taxes required by subsection (a) of this section or who refuses to permit the Commission to examine the books and records relating to any boxing match or exhibition or closed-circuit telecast is guilty of a Class 2 misdemeanor.
(d)	No closed-circuit telecast of a boxing match or exhibition shall be made in, into, or from this State except under the direction and control of a promoter licensed by the Commission.
(e)	The Commission, by rule, shall establish procedures for the payment of taxes and filing of reports, and shall prescribe penalties for late filing of reports and late payment of taxes."
Sec. 2.  This act becomes effective January 1, 1996.