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House Bills 4335 and 4336 (enrolled)Contact: Office of Policy and Legislative Affairs Agency: Licensing and Regulatory Affairs
New Boxing Regulation Law
Committees: House Regulatory Reform, Senate Economic Development, Small Business & Regulatory Reform
Date Introduced: March 12, 2003
Date Enrolled: November 9, 2004
Date of Analysis: September 24, 2003
Position: The Department of Labor and Economic Growth supports the bill.
Description of Bill: The bill creates the Boxing Regulatory Act. A 7-member Boxing Commission is created and Article 8 of the Occupational Code is repealed. The director of the Department of Labor and Economic Growth would be an ex officio non-voting member of the Commission. The duties of the department and the commission are outlined. Fees are established for promoters and events. The Michigan Boxing Fund is created and is to be used for administration and enforcement. An applicant is required to demonstrate good moral character. A promoter is required to file a bond of not less than $20,000 with the department. Procedures for receiving, investigating, and hearing complaints are provided. Many administrative functions from the Occupational Code are carried over to the new bill. The current Occupational Code language relating to boxing elimination contests is also carried over. Insurance requirements are increased from the current level of $1,000 to $50,000. There will no longer be a differentiation between the length of rounds for men’s and women’s boxing. Rounds will be three minutes in length in both cases.
The Senate committee amended the bill to incorporate a regulatory fee for televised events held in venues with at least 5,000 seating capacity. The fee would be 3% of ticket sales with a maximum amount of $25,000 for a single event. The concept of the amendment was suggested by the department. The Senate substitute also makes the department director a non-voting member of the Commission. The original bill made the director a voting member.
The companion bill, House Bill 4336, amends the Penal Code to refer to the proposed Boxing Regulatory Act.
Summary of Arguments
The proposal provides a good balance between the perceived need in the boxing industry for a stronger Commission and maintaining appropriate regulatory authority and discretion for the department.
Although the incorporation of the regulatory fee requested by the department is a constructive step, the fee is limited to televised events in the state’s largest venues. Televised bouts held at smaller venues, like casinos, would not be required to pay the fee. As a result, revenue may be insufficient to finance the department’s increased regulatory responsibilities under the bill.
department has concerns about the capacity of the proposed regulatory fee to
generate sufficient revenue to finance increased department regulation under
the bill. If the bill sponsor
is correct and stronger boxing regulation in
Other Pertinent Information:
Similar proposals have been made in past legislative sessions. Representative Raczkowski was the sponsor of these bills in previous sessions. This is the first time a proposal like this has advanced.
Administrative Rules Impact:
New rules would be required. The department is required to consult with the Commission in promulgating rules. Rules promulgated under current Article 8 of the Occupational Code would retain authorization under the bill.
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