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.