By Oliveira, Wilson H.B. No. 2538
Substitute the following for H.B. No. 2538:
By Wilson C.S.H.B. No. 2538
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of boxing and wrestling, the imposition
1-3 of a tax on the sale of television rights, closed circuit
1-4 telecasting rights, and pay-per-view telecasting rights for boxing
1-5 and wrestling events, and the prohibition of certain types of
1-6 fighting.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Section 3, Texas Boxing and Wrestling Act
1-9 (Article 8501-1, Vernon's Texas Civil Statutes), is amended by
1-10 amending Subdivisions (9) and (10) and adding Subdivisions
1-11 (17)-(26) to read as follows:
1-12 (9) "Boxing promoter" means a person to be licensed by
1-13 the department who arranges, advertises, or conducts a boxing
1-14 contest, match, or exhibition or shows or causes to be shown in
1-15 this state a closed-circuit or pay-per-view telecast of an event
1-16 involving a professional boxer regardless of whether the telecast
1-17 originates in this state.
1-18 (10) "Wrestling promoter" means a person to be
1-19 registered with the secretary of state who arranges, advertises, or
1-20 conducts a wrestling contest, match, or exhibition or shows or
1-21 causes to be shown in this state a closed-circuit or pay-per-view
1-22 telecast of an event involving a professional wrestler regardless
1-23 of whether the telecast originates in this state.
1-24 (17) "Telecast" means a visual transmission sent by
2-1 any type of signal or other means from one location to another.
2-2 The term includes closed-circuit television, pay-per-view, and
2-3 television broadcast via satellite, cable, or any other means.
2-4 (18) "Closed-circuit telecast" means a telecast of an
2-5 event exhibited in arenas, stadiums, or other locations where
2-6 consumers pay admission to view the event.
2-7 (19) "Pay-per-view" means a telecast of an event to be
2-8 received by an individual telecast purchaser's television set for
2-9 which telecast purchasers pay to view the event.
2-10 (20) "Gross receipts" means the gross price charged,
2-11 including the face value of all tickets sold and complimentary
2-12 tickets redeemed, less sales tax for the sale or lease of
2-13 telecasting, closed-circuit, or pay-per-view rights, without any
2-14 deduction for commissions, brokerage fees, production fees,
2-15 distribution fees, advertising fees, or other expenses or charges.
2-16 (21) "Ultimate or extreme fighting" means any boxing,
2-17 wrestling, or similar match, contest, or exhibition between two or
2-18 more contestants who use their hands, feet, or both that is not
2-19 recognized or sanctioned by an officially recognized state,
2-20 regional, or national boxing or athletic authority or by a promoter
2-21 licensed by the commissioner. The term includes a fighting contest
2-22 in which any part of the contestant's body may be used as a weapon
2-23 or any means of fighting may be used with the specific purpose to
2-24 intentionally injure the other contestants in such a manner that
2-25 they may not defend themselves, and in which there is no referee.
2-26 (22) "System operator," "cable operator," or "facility
2-27 operator" means a person who broadcasts or telecasts a
3-1 closed-circuit telecast or pay-per-view telecast regardless of the
3-2 technology used to transmit or receive the broadcast or telecast.
3-3 (23) "Event" means an occurrence in which a
3-4 professional boxer or professional wrestler displays or exhibits
3-5 boxing or wrestling skills or performs or fights as a boxer or
3-6 wrestler.
3-7 (24) "Professional wrestler" means a person to be
3-8 licensed by the department who competes for a money prize, purse,
3-9 or compensation in a boxing or wrestling contest, exhibition, or
3-10 match held within the State of Texas.
3-11 (25) "Professional boxing manager" means a person to
3-12 be licensed by the commissioner who contracts or otherwise enters
3-13 into an agreement with a boxer to directly or indirectly control or
3-14 administer the boxing affairs of the boxer for compensation.
3-15 (26) "Professional wrestling manager" means a person
3-16 to be licensed by the commissioner who contracts or otherwise
3-17 enters into an agreement with a wrestler to directly or indirectly
3-18 control or administer the wrestling affairs of the wrestler for
3-19 compensation.
3-20 SECTION 2. Section 4(c), Texas Boxing and Wrestling Act
3-21 (Article 8501-1, Vernon's Texas Civil Statutes), is amended to read
3-22 as follows:
3-23 (c) The commissioner is authorized to promulgate rules and
3-24 regulations and hold administrative hearings in accordance with
3-25 Chapter 2001, Government Code, and Article 9100, Revised Statutes
3-26 [the Administrative Procedure and Texas Register Act (Article
3-27 6252-13a, Vernon's Texas Civil Statutes)]. The commissioner shall
4-1 promulgate any and all reasonable rules and regulations which may
4-2 be necessary for the purpose of enforcing the provisions of this
4-3 Act. The commissioner is authorized to promulgate rules and
4-4 regulations governing professional kickboxing contests or
4-5 exhibitions, which shall be fought on the basis of the best efforts
4-6 of the contestants. The commissioner shall have the power and
4-7 authority to revoke or suspend the license or permit of any judge,
4-8 professional boxer, professional wrestler, professional boxing
4-9 manager, professional wrestling manager, referee, timekeeper,
4-10 second, wrestling promoter, or boxing promoter for violations of
4-11 any rule or regulation promulgated pursuant to this Act or for the
4-12 violation of any provision of this Act, and may deny an application
4-13 for a license when the applicant does not possess the requisite
4-14 qualifications.
4-15 SECTION 3. Section 5, Texas Boxing and Wrestling Act
4-16 (Article 8501-1, Vernon's Texas Civil Statutes), is amended to read
4-17 as follows:
4-18 Sec. 5. JUDICIAL REVIEW. (a) Any party to the hearing
4-19 aggrieved by the decision or order of the commissioner may secure
4-20 judicial review thereof in the [following] manner provided by
4-21 Article 9100, Revised Statutes [:]
4-22 [(1) The petition must be filed in a district court of
4-23 Travis County, Texas, within 30 days after the decision or order of
4-24 the commissioner becomes final.]
4-25 [(2) The filing of a petition for review shall not
4-26 itself stay the effect of the decision or order complained of, but
4-27 the commissioner or the reviewing court may order a stay upon
5-1 appropriate terms and if a stay is so granted no supersedeas bond
5-2 shall be required.]
5-3 [(3) Service of process. The petition for review
5-4 shall be served on the commissioner and upon all parties of record
5-5 in any hearing before the commissioner in respect to the matter for
5-6 which review is sought. After service of such petition upon the
5-7 commissioner and within the time permitted for filing an answer or
5-8 as soon thereafter as the record is made available to the
5-9 commissioner, the commissioner shall certify to the district court
5-10 in which such petition is filed the record of the proceedings to
5-11 which the petition refers. The cost of preparing and certifying
5-12 such record shall be paid to the commissioner by the petitioner and
5-13 taxed as part of the cost in the case, to be paid as directed by
5-14 the court upon final determination of said cause.]
5-15 [(4) The review of any decision or order of the
5-16 commissioner shall be tried by the court without a jury in the same
5-17 manner as civil actions generally, but no evidence shall be
5-18 admissible which was not adduced at the hearing on the matter
5-19 before the commissioner or officially noticed in record of such
5-20 hearing.]
5-21 [(5) The burden of proof shall be on the plaintiff.
5-22 The reviewing court may affirm the action complained of or remand
5-23 the matter to the commissioner for further proceedings.]
5-24 [(6) Appeals from any final judgment may be taken by
5-25 either party in the manner provided for in civil actions generally,
5-26 but no appeal bond shall be required of the commissioner].
5-27 SECTION 4. Section 6, Texas Boxing and Wrestling Act
6-1 (Article 8501-1, Vernon's Texas Civil Statutes), is amended to read
6-2 as follows:
6-3 Sec. 6. PENALTIES. (a) A person who violates a provision
6-4 of this Act or any rule or regulation of the department or
6-5 commissioner commits a Class B [A] misdemeanor.
6-6 (b) Any person who violates any provision of this Act or the
6-7 rules and regulations of the department or commissioner may be
6-8 assessed an administrative [a civil] penalty to be paid to the
6-9 State of Texas in an amount not to exceed $10,000 [$1,000] for each
6-10 such violation [as the court may deem proper].
6-11 (c) Whenever it appears that any person has violated or is
6-12 threatening to violate any of the provisions of this Act or of the
6-13 rules and regulations of the department or commissioner, either the
6-14 attorney general or the department may cause a civil suit to be
6-15 instituted either for injunctive relief to restrain such person
6-16 from continuing the violation or threat of violation or for
6-17 assessment and recovery of the civil penalty or for both. Venue
6-18 for such suit shall be in the district courts of Travis County,
6-19 Texas.
6-20 SECTION 5. Section 8, Texas Boxing and Wrestling Act
6-21 (Article 8501-1, Vernon's Texas Civil Statutes), is amended by
6-22 amending Subsections (a)-(c) and adding Subsection (j) to read as
6-23 follows:
6-24 (a) A person may not act as a boxing or wrestling promoter
6-25 or an elimination tournament boxing promoter until the person has
6-26 been licensed by the department under this Act. [A person may not
6-27 act as a wrestling promoter until the person has registered with
7-1 the secretary of state.]
7-2 (b) The application for a boxing promoter's or wrestling
7-3 promoter's license shall be made upon a form furnished by the
7-4 commissioner and shall be accompanied by the license fee set by
7-5 the commission. The application for a boxing promoter's or
7-6 wrestling promoter's license shall be accompanied by a surety bond
7-7 subject to the approval of the commissioner and conditioned on the
7-8 payment of the tax imposed under Sections [Section] 11, 11A, 11B,
7-9 and 11C of this Act. The commissioner shall fix the sum of the
7-10 surety bond, but the sum may not be less than $300.
7-11 (c) The licensing [registration] of a wrestling promoter
7-12 shall be made on a form furnished by the commissioner [secretary
7-13 of state] and shall be accompanied by the licensing [registration]
7-14 fee set by the commissioner [secretary of state] in an amount
7-15 reasonably necessary to cover the administrative costs of licensing
7-16 [registration]. The license [registration] application shall be
7-17 accompanied by a $5,000 surety bond to be filed with the
7-18 commissioner [secretary of state].
7-19 (j) A boxing or wrestling promoter may not knowingly or
7-20 intentionally make a false or fraudulent report required under this
7-21 Act.
7-22 SECTION 6. Section 9, Texas Boxing and Wrestling Act
7-23 (Article 8501-1, Vernon's Texas Civil Statutes), is amended by
7-24 amending Subsection (a) and adding Subsection (d) to read as
7-25 follows:
7-26 (a) No person shall act as a professional boxer,
7-27 professional wrestler, [manager of a] professional boxing manager,
8-1 professional wrestling manager [boxer], referee, judge, second,
8-2 timekeeper, or matchmaker until he has been licensed pursuant to
8-3 this Act.
8-4 (d) It is a violation of this Act to furnish false
8-5 information on a license application.
8-6 SECTION 7. Section 10(a), Texas Boxing and Wrestling Act
8-7 (Article 8501-1, Vernon's Texas Civil Statutes), is amended to read
8-8 as follows:
8-9 (a) The commissioner is authorized to promulgate rules and
8-10 regulations setting forth reasonable qualifications for an
8-11 applicant seeking a license as a boxing promoter, wrestling
8-12 promoter, professional boxing manager, professional wrestling
8-13 manager, matchmaker, professional boxer, professional wrestler,
8-14 judge, referee, second, or timekeeper.
8-15 SECTION 8. Article 1, Texas Boxing and Wrestling Act
8-16 (Article 8501-1, Vernon's Texas Civil Statutes), is amended by
8-17 amending Section 11 and adding Sections 11A, 11B, 11C, 12, and 13
8-18 to read as follows:
8-19 Sec. 11. LIVE EVENT [GROSS RECEIPTS] TAX. (a) A tax is
8-20 imposed on any [Any] person who conducts an event [a boxing match,
8-21 contest, or exhibition], including an elimination tournament,
8-22 wherein an admission fee is charged. The tax is imposed at a rate
8-23 of three percent of the total gross receipts obtained from the
8-24 event.
8-25 (b) The person shall furnish to the department, not later
8-26 than the 21st day after the date on which the event terminates,
8-27 [within 72 hours after the termination of the event] a duly
9-1 verified report on a form furnished by the department showing the
9-2 number of tickets sold, prices charged, and amount of gross
9-3 receipts obtained from the event. A cashier's check or money order
9-4 made payable to the State of Texas in the amount of the tax imposed
9-5 by this section on [three percent of] the total gross receipts of
9-6 the event shall be attached to the verified report.
9-7 Sec. 11A. CLOSED-CIRCUIT TELECAST PERMIT AND TAX.
9-8 (a) [(b)] Any person who charges an admission fee for exhibiting
9-9 a simultaneous telecast of any event [live, spontaneous, or current
9-10 boxing match, contest, or exhibition] on a closed circuit telecast
9-11 must possess a boxing promoter's license or a wrestling promoter's
9-12 license issued pursuant to this Act and must obtain a permit for
9-13 each closed circuit telecast shown in Texas.
9-14 (b) A tax is imposed on a person who charges an admission
9-15 fee for exhibiting a simultaneous telecast of an event on a
9-16 closed-circuit telecast shown in Texas. The tax is imposed at a
9-17 rate of three percent of the gross receipts obtained from the
9-18 exhibition of the telecast in Texas.
9-19 (c) The person [gross receipts tax described in Section
9-20 11(a) herein is applicable to said telecast, and the boxing
9-21 promoter] shall furnish to the department, not later than the 21st
9-22 day after the date on which the event is telecast, [within 72
9-23 hours after the event] a duly verified report on a form furnished
9-24 by the department showing the number of tickets sold, prices
9-25 charged, and amount of gross receipts obtained from the event. A
9-26 cashier's check or money order made payable to the State of Texas
9-27 in the amount of the tax imposed by this section on the total gross
10-1 receipts subject to the tax [due] shall be attached to the verified
10-2 report.
10-3 (d) The promoter shall notify the commissioner of the names
10-4 and addresses of all facilities in Texas to or through which the
10-5 closed-circuit telecast will be shown not later than the 14th day
10-6 before the date of the closed-circuit event and shall provide daily
10-7 updates to the commissioner of any additions and deletions of
10-8 facilities in Texas to which the event will be telecast.
10-9 (e) This section applies to telecasts shown in Texas
10-10 regardless of the location of the event.
10-11 Sec. 11B. TELEVISION RIGHTS TAX. (a) Any person who sells
10-12 television broadcast rights of an event held in Texas must possess
10-13 a boxing or wrestling promoter's license issued under this Act.
10-14 (b) A tax is imposed on a person who sells television
10-15 broadcast rights of an event held in Texas. The tax imposed is an
10-16 amount equal to the lesser of:
10-17 (1) three percent of the gross receipts obtained by
10-18 the person from the sale of the television broadcast rights; or
10-19 (2) $50,000.
10-20 (c) The person shall furnish to the department, not later
10-21 than the 21st day after the date on which the event is televised, a
10-22 duly verified report on a form furnished by the department which
10-23 shows the gross receipts of the person from the sale of the
10-24 television broadcast rights of the event. A cashier's check or
10-25 money order made payable to the State of Texas in the amount of the
10-26 tax imposed under this section shall be attached to the verified
10-27 report.
11-1 (d) This section applies only to an event held in Texas.
11-2 (e) This section applies only to the sale of television
11-3 broadcast rights in which the event is not simultaneously shown in
11-4 a pay-per-view telecast.
11-5 Sec. 11C. PAY-PER-VIEW PERMIT AND TAX. (a) Any person who
11-6 sells pay-per-view telecast rights for an event that is shown in
11-7 Texas must possess a boxing or wrestling promoter's license issued
11-8 under this Act and must obtain a permit for each pay-per-view
11-9 telecast shown in Texas.
11-10 (b) A tax is imposed on a person who sells pay-per-view
11-11 telecast rights for an event that is shown in Texas. The tax
11-12 imposed is an amount equal to the lesser of:
11-13 (1) three percent of the gross receipts obtained by
11-14 the person from the sale of the pay-per-view telecast rights; or
11-15 (2) $50,000.
11-16 (c) The person shall furnish to the department, not later
11-17 than the 21st day after the date on which the event is telecast, a
11-18 duly verified report on a form furnished by the department which
11-19 shows the gross receipts of the person from the sale of the
11-20 pay-per-view telecast rights of the event, including the number of
11-21 pay-per-view orders sold in Texas and the price of each order. A
11-22 cashier's check or money order made payable to the State of Texas
11-23 in the amount of the tax imposed under this section shall be
11-24 attached to the verified report.
11-25 (d) The tax imposed by this section is applicable to the
11-26 gross receipts from the sale of the telecast rights derived from
11-27 Texas subscribers, regardless of the location of the event.
12-1 Sec. 12. CLOSED-CIRCUIT AND PAY-PER-VIEW TELECAST REPORTS BY
12-2 SYSTEM, CABLE, AND FACILITY OPERATORS. (a) Each system operator,
12-3 cable operator, or facility operator whose facilities are used to
12-4 telecast an event as a closed-circuit or pay-per-view telecast
12-5 shall, not later than the 15th day after the date of the telecast,
12-6 file a report with the commissioner stating the number of orders to
12-7 view the event sold in Texas and the price per order.
12-8 (b) If the telecast of an event is sold by the number of
12-9 rounds fought, each system operator, cable operator, or facility
12-10 operator shall report to the commissioner the price per round, the
12-11 number of orders sold in Texas, and the number of rounds fought.
12-12 (c) A facility operator, cable operator, or system operator
12-13 may not intentionally make a false or fraudulent report required
12-14 under this Act.
12-15 (d) A system operator, cable operator, or facility operator
12-16 is not responsible for payment of taxes under this Act.
12-17 Sec. 13. TAX ADMINISTRATION. (a) The commissioner shall
12-18 provide forms for reporting under Sections 11, 11A, 11B, 11C, and
12-19 12 of this Act.
12-20 (b) The department may audit reports filed under Sections
12-21 11, 11A, 11B, 11C, and 12 of this Act.
12-22 (c) The commissioner by rule shall determine a specified
12-23 percentage of the total revenues obtained from the taxes imposed by
12-24 Sections 11, 11A, 11B, and 11C of this Act not to exceed the lesser
12-25 of 20 percent of the total annual revenues or $50,000 annually to
12-26 be deposited into a separate account in the general revenue fund to
12-27 be known as the Texas Boxing and Wrestling Sports Fund. The
13-1 remainder of the revenue [Revenue] obtained from the [gross
13-2 receipts] taxes imposed by [under] this Act [section] shall be
13-3 deposited to the credit of the General Revenue Fund.
13-4 (d) The commissioner shall adopt rules for awarding grants
13-5 from the Texas Boxing and Wrestling Sports Fund. [The department
13-6 may audit a report filed under Subsection (a) of this section made
13-7 by a person conducting an elimination tournament under this
13-8 section.]
13-9 SECTION 9. The Texas Boxing and Wrestling Act (Article
13-10 8501-1, Vernon's Texas Civil Statutes) is amended by adding Article
13-11 3 to read as follows:
13-12 ARTICLE 3. ULTIMATE FIGHTING PROHIBITED
13-13 Sec. 21. ULTIMATE FIGHTING. (a) Ultimate or extreme
13-14 fighting is prohibited in the State of Texas.
13-15 (b) A person may not promote, sponsor, attend, or
13-16 participate in ultimate or extreme fighting or serve as an agent,
13-17 principal partner, publicist, vendor, producer, referee, or
13-18 contractor of or for ultimate or extreme fighting.
13-19 (c) This section does not apply to a health care
13-20 professional who administers to, treats, or assists in the
13-21 treatment of a participant in ultimate or extreme fighting.
13-22 (d) A license or permit may not be issued by the state or
13-23 any governmental entity for a contest of "ultimate fighting" or
13-24 "extreme fighting" or a similar contest.
13-25 SECTION 10. Section 4(e), Texas Boxing and Wrestling Act
13-26 (Article 8501-1, Vernon's Texas Civil Statutes), is repealed.
13-27 SECTION 11. (a) Except as provided by Subsections (c) and
14-1 (d), this Act takes effect September 1, 1997.
14-2 (b) The commissioner of licensing and regulation shall adopt
14-3 rules for licensing professional wrestlers, professional wrestling
14-4 managers, and wrestling promoters under the Texas Boxing and
14-5 Wrestling Act (Article 8501-1, Vernon's Texas Civil Statutes), as
14-6 amended by this Act, not later than December 1, 1997.
14-7 (c) A person who is required to be licensed as a
14-8 professional wrestler, professional wrestling manager, wrestling
14-9 promoter, or boxing promoter because of the changes in law made by
14-10 this Act to the Texas Boxing and Wrestling Act (Article 8501-1,
14-11 Vernon's Texas Civil Statutes) is not required to obtain a license
14-12 until March 1, 1998.
14-13 (d) The taxes imposed on the sale of television and
14-14 pay-per-view rights by Sections 11B and 11C, Texas Boxing and
14-15 Wrestling Act (Article 8501-1, Vernon's Texas Civil Statutes), as
14-16 added by this Act, apply only to boxing and wrestling events held
14-17 on or after January 1, 1998.
14-18 SECTION 12. The importance of this legislation and the
14-19 crowded condition of the calendars in both houses create an
14-20 emergency and an imperative public necessity that the
14-21 constitutional rule requiring bills to be read on three several
14-22 days in each house be suspended, and this rule is hereby suspended.