Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Oliveira                                     H.B. No. 2538

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of boxing and wrestling.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 3, Texas Boxing and Wrestling Act

 1-5     (Article 8501-1, Vernon's Texas Civil Statutes), is amended to read

 1-6     as follows:

 1-7                 (9)  "Boxing promoter" means a person to be licensed by

 1-8     the commissioner who arranges, advertises, or conducts a boxing

 1-9     contest, match, or exhibition, or shows or causes to be shown in

1-10     Texas a closed circuit or pay-per-view telecast of any match

1-11     involving any professional participant whether or not the telecast

1-12     originates in Texas.

1-13                 (10)  "Telecast" means any visual transmission sent by

1-14     any means of signal within, into, for or from this State.  It

1-15     includes closed circuit television, pay per view and television

1-16     broadcast via satellite, cable or any other means.

1-17                 (11) [(10)]  "Wrestling promoter" means a person to be

1-18     licensed by [registered with] the commissioner [secretary of state]

1-19     who arranges, advertises, or conducts a wrestling contest, match,

1-20     or exhibition, or shows or causes to be shown in Texas a closed

1-21     circuit or pay-per-view telecast of any match involving any

1-22     professional participant whether or not the telecast originates in

1-23     Texas.

1-24                 (12) [(11)]  "Elimination tournament boxing promoter"

 2-1     means a person licensed by the commissioner [department] who

 2-2     arranges, advertises, or conducts an elimination tournament.

 2-3                 (13) [(12)]  "Elimination tournament" means a boxing

 2-4     contest in which elimination tournament contestants compete in a

 2-5     series of matches until only one contestant remains in each weight

 2-6     category.

 2-7                 (14) [(13)]  "Elimination tournament contestant" means

 2-8     a person who competes in an elimination tournament.

 2-9                 (15) [(14)]  "Championship tournament" means an

2-10     international, state, regional, or national elimination tournament

2-11     that allows the winners of another elimination tournament to

2-12     compete for a championship in each weight category.

2-13                 (16) [(15)]  "Regional tournament" means an elimination

2-14     tournament that allows an elimination tournament contestant from

2-15     outside the immediate area where the tournament is held to compete

2-16     against local tournament contestants.

2-17                 (17) [(16)]  "Local tournament" means an elimination

2-18     tournament that allows only a resident of this state to compete.

2-19                 (18)  "Closed circuit telecast" means any telecast

2-20     which is not intended to be available for viewing without the

2-21     payment of a fee, collected for or based upon such event viewed for

2-22     the privilege of viewing the telecast.  Closed circuit telecast

2-23     includes telecasts of events projected into arenas, stadiums, and

2-24     places where consumers pay to view the event.

2-25                 (19)  "Pay-per-view" means any telecast which is not

2-26     intended to be available for viewing without the payment of a fee,

2-27     collected for or based upon such event viewed for the privilege of

2-28     viewing the telecast.  Pay-per-view events include telecasts of

2-29     events projected into individual consumer homes where consumers pay

2-30     to view the event.

 3-1                 (20)  "Gross revenue of gross receipts" means the gross

 3-2     price charged for the sale or lease of telecasting, closed circuit

 3-3     or pay-per-view rights without any deduction for commissions,

 3-4     brokerage fees, production fees, distribution fees, production

 3-5     fees, advertising or other expenses or charges, and shall include

 3-6     the face value of all tickets sold and complimentary tickets

 3-7     redeemed.

 3-8                 (21)  "Professional wrestling" means any performance of

 3-9     wrestling skills and techniques by two or more professional

3-10     wrestlers, to which any admission is charged. Participating

3-11     wrestlers may not be required to use their best efforts in order to

3-12     win, the winner may have been selected before the performance

3-13     commences and contestants compete for valuable consideration.  Such

3-14     contests take place in a rope-enclosed ring and are fought in timed

3-15     rounds.

3-16                 (22)  "Ultimate fighting, Ultimate Fighting

3-17     Championship. or extreme fighting" means any boxing or wrestling

3-18     match, contest or exhibition, between two or more contestants, with

3-19     or without protective headgear, who use their hands, without

3-20     gloves, or their feet, or both, and who compete for a financial

3-21     prize or any item of pecuniary value, and which match, contest, or

3-22     exhibition is not recognized by and not sanctioned by any

3-23     officially recognized state, regional or national boxing or

3-24     athletic sanctioning authority, or any promotor duly licensed by

3-25     the commissioner of the Texas Department of Licensing and

3-26     Regulation.

3-27                 (23)  "System operator" "cable operator" or "facility

3-28     operator" means any person who broadcasts or telecasts a closed

3-29     circuit telecast or pay per view event regardless of the technology

3-30     used to transmit or receive the broadcast or telecast.

 4-1                 (24)  "Event" means any occurrence in which a boxer,

 4-2     wrestler, or kick boxer displays or exhibits his skills, performs

 4-3     or fights.

 4-4           SECTION 2.  Section 4 of the Texas Boxing Act (Article

 4-5     8501-1, Vernon's Texas Civil States), is amended to read as

 4-6     follows:

 4-7           (c)  The commissioner is authorized to promulgate rules and

 4-8     regulations and hold administrative hearings in accordance with the

 4-9     Administrative Procedure [and Texas Register] Act (Government Code,

4-10     Chapter 2001 [(Article 6252-13a, Vernon's Texas Civil Statutes])

4-11     and Article 9100, Vernons Texas Civil Statutes.  The commissioner

4-12     shall promulgate any and all reasonable rules and regulations which

4-13     may be necessary for the purpose of enforcing the provisions of the

4-14     Boxing and Wrestling Act.  The commissioner is authorized to

4-15     promulgate rules and regulations governing professional kickboxing

4-16     contests or exhibitions which shall be fought on the basis of the

4-17     best efforts of the contestants.  The commissioner shall have the

4-18     power and authority to revoke or suspend the license or permit of

4-19     any judge, boxer, manager, referee, timekeeper, second, or boxing

4-20     promoter for violations of any rule or regulation promulgated

4-21     pursuant to this Act or for the violation of any provision of this

4-22     Act, and may deny an application for a license when the applicant

4-23     does not possess the requisite qualifications.

4-24           [(e)  In the conduct of any administrative hearing held

4-25     pursuant to this Act, the commissioner may administer oaths to

4-26     witnesses, receive evidence, and issue subpoenas and subpoenas

4-27     duces tecum to compel the attendance of witnesses and the

4-28     production of papers and documents related to matters under

4-29     investigation.  Administrative hearings shall be held in conformity

4-30     with the Administrative Procedure and Texas Register Act

 5-1     (Government Code, Chapter 2001 Article 6252-13a, Vernon's Texas

 5-2     Civil Statutes).]

 5-3           SECTION 3.  Section 5 of the Texas Boxing Act (Article

 5-4     8501-1, Vernon's Texas Civil Statutes) is amended to read as

 5-5     follows:

 5-6           [(a)]  Any party to the hearing aggrieved by the decision or

 5-7     order of the commissioner may secure judicial review as prescribed

 5-8     by the Administrative Procedure Act, Government Code 2001,

 5-9     subchapter G CONTESTED CASES: JUDICIAL REVIEW and Article 9100,

5-10     Vernons Texas Civil Statutes.  Judicial review shall be by the

5-11     substantial evidence rule.  [thereof in the following manner:]

5-12                 [(1)  The petition must be filed in a district court of

5-13     Travis County, Texas, within 30 days after the decision or order of

5-14     the commissioner becomes final.]

5-15                 [(2)  The filing of a petition for review shall not

5-16     itself stay the effect of the decision or order complained of, but

5-17     the commissioner or the reviewing court may order a stay upon

5-18     appropriate terms and if a stay is so granted no supersedeas bond

5-19     shall be required.]

5-20                 [(3)  Service of process.  The petition for review shall

5-21     be served on the commissioner and upon all parties of record in any

5-22     hearing before the commissioner in respect to the matter for which

5-23     review is sought.  After service of such petition upon the

5-24     commissioner and within the time permitted for filing an answer or

5-25     as soon thereafter as the record is made available to the

5-26     commissioner, the commissioner shall certify to the district court

5-27     in which such petition is filed the record of the proceedings to

5-28     which the petition refers.  The cost of preparing and certifying

5-29     such record shall be paid to the commissioner by the petitioner and

5-30     taxed as part of the cost in the case, to be paid as directed by

 6-1     the court upon final determination of said case.]

 6-2                 [(4)  The review of any decision or order of the

 6-3     commissioner shall be tried by the court without a jury in the same

 6-4     manner as civil actions generally, but no evidence shall be

 6-5     admissible which was not adduced at the hearing on the matter

 6-6     before the commissioner or officially noticed in record of such

 6-7     hearing.]

 6-8                 [(5)  The burden of proof shall be on the plaintiff.

 6-9     The reviewing court may affirm the action complained of or remand

6-10     the matter to the commissioner for further proceedings.]

6-11                 [(6)  Appeals from any final judgment may be taken by

6-12     either party in the manner provided for in civil actions generally,

6-13     but no appeal bond shall be required of the commissioner.]

6-14           SECTION 4.  Section 6 of the Texas Boxing Act (Article

6-15     8501-1, Vernon's Texas Civil Statutes) is amended to read as

6-16     follows:

6-17           (a)  A person who violates a provision of this Act or any

6-18     rule or regulation of the department or the commissioner commits a

6-19     Class A misdemeanor.

6-20           (b)  Any person who violates any provision of this Act or the

6-21     rules and regulations of the department or the commissioner may be

6-22     assessed an administrative [a civil] penalty to be paid to the

6-23     State of Texas in an amount not to exceed $1,000 for each such

6-24     violation [as the court may deem proper].

6-25           (c)  Whenever it appears that any person has violated or is

6-26     threatening to violate any of the provisions of this Act or of the

6-27     rules and regulations of the department or the commissioner, either

6-28     the attorney general or the department may cause a civil suit to be

6-29     instituted either for injunctive relief to restrain such person

6-30     from continuing the violation or threat of violation or for

 7-1     assessment and recovery of the civil penalty or for both.  Venue

 7-2     for such suit shall be in the district courts of Travis County,

 7-3     Texas.

 7-4           (d)  Any promoter, facility owner or operator, or system

 7-5     operator who intentionally makes a false or fraudulent report

 7-6     required pursuant to this act shall be guilty of a class A

 7-7     misdemeanor.

 7-8           (e)  Any promoter, facility owner or operator or system

 7-9     operator who intentionally fails to make a report of or to pay the

7-10     taxes as required by this act shall be guilty of a class A

7-11     Misdemeanor.

7-12           SECTION 5.  Section 8 of the Texas Boxing Act (Article

7-13     8501-1, Vernon's Texas Civil Statutes) is amended to read as

7-14     follows:

7-15           (a)  A person state may not act as a boxing or wrestling

7-16     promoter or an elimination tournament boxing promoter until the

7-17     person has been licensed by the commissioner under this Act.  [A

7-18     person may not act as a wrestling promoter until the person has

7-19     registered with the secretary of.]

7-20           (b)  The application for a boxing or wrestling promoter's

7-21     license shall be made upon a form furnished by the commissioner and

7-22     shall be accompanied by the license fee set by the commission.  The

7-23     application for a boxing or wrestling promoter's license shall be

7-24     accompanied by a surety bond subject to the approval of the

7-25     commissioner and conditioned on the payment of the tax imposed

7-26     under Section 11 of this Act.  The commissioner shall fix the sum

7-27     of the surety bond, but the sum may not be less than $300.

7-28           (c)  The licensing [registration] of a wrestling promoter

7-29     shall be made on a form furnished by the Commissioner [secretary of

7-30     state] and shall be accompanied by the licensing [registration] fee

 8-1     set by the Commissioner [secretary of state] in an amount

 8-2     reasonably necessary to cover the administrative costs of licensing

 8-3     [registration].  The licensing [registration] application shall be

 8-4     accompanied by a $5,000 surety bond to be filed with the

 8-5     Commissioner [secretary of state].

 8-6           SECTION 6.  Section 9 of the Texas Boxing Act (Article

 8-7     8501-1, Vernon's Texas Civil Statutes) is amended to read as

 8-8     follows:

 8-9           (b)  No person shall act as a professional wrestler, manager

8-10     of a professional wrestler, referee, judge, timekeeper, or

8-11     matchmaker until he has been licensed pursuant to this Act.

8-12           (c) [(b)]  The application for a license shall be made upon a

8-13     form furnished by the commissioner and shall be accompanied by the

8-14     license fee.

8-15           (d)  It is a violation of this Act to furnish false

8-16     information on a license application.

8-17           (e) [(c)]  Revenue obtained from license fees shall be

8-18     deposited to the credit of the General Revenue Fund.

8-19           SECTION 7.  Section 10 of the Texas Boxing Act (Article

8-20     8501-1, Vernon's Texas Civil Statutes) is amended to read as

8-21     follows:

8-22           (b)  The commissioner is authorized to promulgate rules and

8-23     regulations setting forth reasonable qualifications for an

8-24     applicant seeking a license as a wrestler, wrestling promoter,

8-25     wrestling manager, matchmaker, judge or referee.

8-26           (c) [(b)]  The commissioner may after investigation and

8-27     hearing deny an application for a license when the applicant has

8-28     failed to meet the established qualifications or has violated any

8-29     provision of this Act or any rule or regulation issued pursuant to

8-30     this Act.

 9-1           (d) [(c)]  The commissioner may waive any license requirement

 9-2     for an applicant with a valid license from another state with which

 9-3     this state has a reciprocity agreement.

 9-4           SECTION 8.  Section 11 of the Texas Boxing Act (Article

 9-5     8501-1, Vernon's Texas Civil Statutes) is amended to read as

 9-6     follows:

 9-7           Sec. 11.  GROSS TAX RECEIPTS OR REVENUE AND REPORTING

 9-8     REQUIREMENTS.  (a)  LIVE CONTEST HELD IN TEXAS:  Any person who

 9-9     conducts a boxing or wrestling match, contest, or exhibition,

9-10     including an elimination tournament, wherein an admission fee is

9-11     charged, shall furnish to the department within 21 calendar days

9-12     (including weekends) [72 hours] after the termination of the event,

9-13     a duly verified report on a form furnished by the department

9-14     showing the number of tickets sold, prices charged, and amount of

9-15     gross receipts obtained from the event.  A cashier's check or money

9-16     order made payable to the State of Texas in the amount of three

9-17     percent of the total gross receipts of the event shall be attached

9-18     to the verified report.

9-19           (b)  CLOSED CIRCUIT TELECASTS: Any person who charges an

9-20     admission fee for exhibiting a simultaneous telecast of any event

9-21     regulated by this Act [live, spontaneous, or current boxing match,

9-22     contest, or exhibition] on a closed circuit telecast in Texas must

9-23     possess a [boxing] promoter's license issued pursuant to this Act

9-24     and must obtain a permit for each closed circuit telecast shown in

9-25     Texas.  The gross receipts tax described in Section 11(a) e [herein

9-26     is applicable to said telecast, and the boxing] promoter shall

9-27     furnish to the department within 21 calendar days (including

9-28     weekends) [72 hours] after the event a duly verified report on a

9-29     form furnished by the department showing the number of tickets

9-30     sold, prices charged, and amount of gross receipts obtained from

 10-1    the event.  A cashier's check or money order made payable to the

 10-2    State of Texas in the amount of the tax due shall be attached to

 10-3    the verified report.  This section applies to telecasts shown in

 10-4    Texas regardless of the origin of the event.

 10-5                (1)  Under this section, the promoter shall notify the

 10-6    commissioner of the names and addresses of all facilities to or

 10-7    through which the closed circuit telecast will be shown fourteen

 10-8    (14) days prior to the date of the closed circuit event, and shall

 10-9    provide daily updates to the commissioner of any additions and

10-10    deletions of facilities.

10-11          (c)  TELEVISION RIGHTS: Any person who sells television

10-12    broadcast rights of a boxing or wrestling match, contest, or

10-13    exhibition must possess a boxing or wrestling promoters license

10-14    issued pursuant to this Act.  This section applies to the sale of

10-15    television rights wherein the event is not simultaneously shown in

10-16    a pay-per-view format.  A three percent tax of the television

10-17    rights is applicable to such telecasts.  However, such tax on

10-18    television broadcasts shall not exceed $50,000 per event.  The

10-19    boxing or wrestling promoter shall furnish to the Department within

10-20    21 calendar days (including weekends) after the event is televised,

10-21    a duly verified report on a form furnished by the department which

10-22    shows the gross revenue to the promoter for television rights of

10-23    the event.  This section applies only to an event held in Texas.  A

10-24    cashier's check or money order made payable to the State of Texas

10-25    in the amount of the tax due shall be attached to the verified

10-26    report.

10-27          (d)  PAY-PER-VIEW EVENTS: A promoter who charges or receives

10-28    a fee for having an event seen on a pay-per-view telecast that is

10-29    shown in this state, utilizing a cable television system, satellite

10-30    dish or any other means of transmitting or receiving the telecast,

 11-1    shall pay three percent of the promoter's gross revenue

 11-2    attributable to the individual's or entity's pay-per-view telecast

 11-3    fees, exclusive of federal, state, or local tax.  This tax is

 11-4    applicable to the gross revenue from the telecast derived from

 11-5    Texas subscribers, regardless of the origin of the event.  The

 11-6    promoter shall furnish to the Department within 21 calendar days

 11-7    (including weekends) after the event is broadcast, a duly verified

 11-8    report on a form furnished by the department which shows the number

 11-9    of orders sold and the price per order derived from viewership in

11-10    Texas.  A cashier's check or money order made payable to the State

11-11    of Texas in the amount of the tax due shall be attached to the

11-12    verified report.

11-13                (1)  Each system operator, cable operator, or facility

11-14    operator whose facilities are utilized to telecast an event under

11-15    this Act shall, within 15 calendar days (including weekends)

11-16    following the date of the telecast, file a report with the

11-17    Commissioner stating the number of orders sold in Texas and the

11-18    price per order.

11-19                (2)  If an event is sold by the number of rounds

11-20    fought, each system operator, cable operator, or facility operator

11-21    shall report to the Commissioner the price per round, the number of

11-22    orders sold in Texas and the number of rounds fought.

11-23                (3)  System operators, cable operators, or facility

11-24    operators are not responsible for payment of taxes under this Act.

11-25          (e)  The commissioner shall provide forms for reporting under

11-26    this section.

11-27          (f)  The department may audit reports filed under this

11-28    section.

11-29          (g) [ c)]  Revenue obtained from the gross receipts taxes

11-30    imposed under this section shall be deposited to the credit of the

 12-1    General Revenue Fund.

 12-2          [(d)  The department may audit a report filed under

 12-3    Subsection (a) of this section made by a person conducting an

 12-4    elimination tournament under this section.]

 12-5          SECTION 9.  New Article 3, Section 21 of the Texas Boxing Act

 12-6    (Article 8501-1, Vernon's Texas Civil Statutes) is added to read as

 12-7    follows:

 12-8                          ARTICLE 3 PROHIBITIONS

 12-9          Sec. 21.   (a)  Ultimate or extreme fighting is prohibited in

12-10    the State of Texas.

12-11          (b)  Anyone who promotes or participates in ultimate

12-12    fighting, or anyone who serves as an agent, principal partner,

12-13    publicist, vendor, producer, referee, or contractor of or for

12-14    ultimate fighting is guilty of a class "A" misdemeanor.

12-15          (c)  Any medical personnel who administers to, treats or

12-16    assists any participants of ultimate or extreme fighting shall not

12-17    be subject to the provisions of this section.

12-18          (d)  No license or permit will be issued for any contests

12-19    known as "ultimate fighting" or any activities similar in nature.

12-20    For purposes of this Act, "ultimate fighting" shall mean a contest

12-21    or bout whereby any part of the contestant's body may be used as a

12-22    weapon or any means of fighting may be used with the specific

12-23    purpose to intentionally injure the other contestants in such a

12-24    manner that they may not defend themselves and in which there is no

12-25    referee.  No person, partnership, organization, corporation,

12-26    limited liability company or association shall conduct, compete or

12-27    otherwise participate in any contest or bout as defined in this

12-28    section and Section 3.

12-29          SECTION 10.  This Act takes effect September 1, 1997.

12-30          SECTION 11.  The importance of this legislation and the

 13-1    crowded condition of the calendars in both houses create an

 13-2    emergency and an imperative public necessity that the

 13-3    constitutional rule requiring bills to be read on three several

 13-4    days in each house be suspended, and this rule is hereby suspended.