Section 338.3633 - Promoter's license; application; good moral character; bond; fees; submission of contract; deposit of money; disclosure of contract; drug test results.
MICHIGAN UNARMED COMBAT REGULATORY ACT (EXCERPT)
Act 403 of 2004
338.3633 Promoter's license; application; good moral character; bond; fees; submission of contract; deposit of money; disclosure of contract; drug test results.
Sec. 33.
(1) An application for a promoter's license must be in writing and correctly show and define the applicant.
(2) An applicant for a promoter's license must demonstrate good moral character. If an applicant for a promoter's license is denied a license due to lack of good moral character, the applicant may petition the commission for a review of the decision under section 46.
(3) Before an approval for a contest or exhibition is granted, a promoter must file a bond with the department in an amount fixed by the department but not less than $20,000.00, which bond shall be executed by the applicant as principal and by a corporation qualified under the laws of this state as surety, payable to the state of Michigan, and conditioned upon the faithful performance by the applicant of the provisions of this act. The department shall annually adjust the amount of the bond based upon the Detroit consumer price index. The bond must be purchased not less than 5 days before the contest or exhibition and may be used to satisfy payment for the professionals, costs to the department for ring officials and physicians, and drug tests.
(4) A promoter must apply for and obtain an annual license from the department in order to present a program of contests or exhibitions regulated by this act. The annual license fee is $250.00. The department shall request, and the applicant shall provide, such information as it determines necessary to ascertain the financial stability of the applicant.
(5) A boxing promoter shall pay an event fee of $125.00. A mixed martial arts promoter shall pay an event fee of $2,000.00.
(6) There is imposed a regulatory and enforcement fee upon the promoter to assure the integrity of the sports of boxing and mixed martial arts, the public interest, and the welfare and safety of the professionals in the amount of 3% of the total gross receipts from the sale, lease, or other exploitation of broadcasting, television, and motion picture rights, but not to exceed $25,000.00 per contract, for boxing or mixed martial arts events to which the following apply:
(a) If the event is a boxing event, the event is located in a venue with a seating capacity of over 5,000.
(b) The promoter proposes to televise or broadcast the event over any medium for viewing by spectators not present in the venue.
(c) The event is designed to promote professional boxing or mixed martial arts contests in this state.
(7) At least 10 days before the boxing or mixed martial arts event, the promoter shall submit the contract subject to the regulatory and enforcement fee to the department, stating the amount of the probable total gross receipts from the sale, lease, or other exploitation of broadcasting, television, and motion picture rights.
(8) The money derived from the regulatory and enforcement fee shall be deposited into the fund created in section 22 and used for the purposes described in that section.
(9) A promoter shall, within 5 business days before a boxing or mixed martial arts contest or exhibition, convey to the department an executed copy of the contract relative to that contest or exhibition. The copy of the contract is exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, except that the department may disclose statistical information on the number, types, and amounts of contracts so long as information regarding identifiable individuals or categories is not revealed.
(10) Beginning June 23, 2005, a promoter's license is subject to revocation unless at least 10% of the purse in a contest or exhibition, but not more than $10,000.00 per contestant, is withheld or escrowed until such time as the results of the postcontest drug test, as required by this act, are available to the department. If the drug test results confirm or demonstrate compliance with this act, the department shall issue an order allowing the promoter to forward to the professional the amount withheld or escrowed. If the results do not confirm or demonstrate compliance with this act, the department shall serve a formal complaint on the professional under section 44(2), and the department shall issue an order to the promoter requiring the promoter to forward the amount withheld or escrowed to the department. Upon receipt, the department shall deposit the money into the fund. If after a hearing the professional is found in violation of the act, the professional shall forfeit the amount withheld from the purse and the professional is subject to the penalties prescribed in section 48. However, if the formal complaint is dismissed or any final order issued as the result of the complaint is overturned, the department shall issue a refund to the professional for the amount withheld.
(11) Subsection (10) does not prohibit a licensed promoter from including a provision in a contract with a professional that requires the promoter to withhold 10% of the purse in a contest or exhibition until such time as the postcontest drug test results are available to the department.
History: 2004, Act 403, Eff. Feb. 20, 2005 ;-- Am. 2005, Act 49, Imd. Eff. June 23, 2005 ;-- Am. 2007, Act 196, Eff. Mar. 27, 2008