[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1832 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 1832
To reform unfair and anticompetitive practices in the professional
boxing industry.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 17, 1999
Mr. Oxley (for himself, Mr. Engel, Mr. Meeks of New York, and Mr. King)
introduced the following bill; which was referred to the Committee on
Commerce, and in addition to the Committee on Education and the
Workforce, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To reform unfair and anticompetitive practices in the professional
boxing industry.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Muhammad Ali Boxing Reform Act''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Professional boxing differs from other major,
interstate professional sports industries in the United States
in that it operates without any private sector association,
league, or centralized industry organization to establish
uniform and appropriate business practices and ethical
standards. This has led to repeated occurrences of disreputable
and coercive business practices in the boxing industry, to the
detriment of professional boxers nationwide.
(2) Professional boxers are vulnerable to exploitative
business practices engaged in by certain promoters and
sanctioning bodies which dominate the sport. Boxers do not have
an established representative group to advocate for their
interests and rights in the industry.
(3) State officials are the proper regulators of
professional boxing events, and must protect the welfare of
professional boxers and serve the public interest by closely
supervising boxing activity in their jurisdiction. State boxing
commissions do not currently receive adequate information to
determine whether boxers competing in their jurisdiction are
being subjected to contract terms and business practices which
may be violative of State regulations, or are onerous and
confiscatory.
(4) Promoters who engage in illegal, coercive, or unethical
business practices can take advantage of the lack of equitable
business standards in the sport by holding boxing events in
states with weaker regulatory oversight.
(5) The sanctioning organizations which have proliferated
in the boxing industry have not established credible and
objective criteria to rate professional boxers, and operate
with virtually no industry or public oversight. Their ratings
are susceptible to manipulation, have deprived boxers of fair
opportunities for advancement, and have undermined public
confidence in the integrity of the sport.
(6) Open competition in the professional boxing industry
has been significantly interfered with by restrictive and anti-
competitive business practices of certain promoters and
sanctioning bodies, to the detriment of the athletes and the
ticket-buying public. Common practices of promoters and
sanctioning organizations represent restraints of interstate
trade in the United States.
(7) It is necessary and appropriate to establish national
contracting reforms to protect professional boxers and prevent
exploitative business practices, and to require enhanced
financial disclosures to State athletic commissions to improve
the public oversight of the sport.
(8) Whereas the Congress seeks to improve the integrity and
ensure fair practices of the professional boxing industry on a
nationwide basis, it deems it appropriate to name this reform
in honor of Muhammad Ali, whose career achievements and
personal contributions to the sport, and positive impact on our
society, are unsurpassed in the history of boxing.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to protect the rights and welfare of professional
boxers by preventing certain exploitative, oppressive, and
unethical business practices they may be subject to on an
interstate basis;
(2) to assist State boxing commissions in their efforts to
provide more effective public oversight of the sport; and
(3) to promote honorable competition in professional boxing
and enhance the overall integrity of the industry.
SEC. 4. PROTECTING BOXERS FROM EXPLOITATION.
The Professional Boxing Safety Act of 1996 (15 U.S.C. 6301 et seq.)
is amended by--
(1) redesignating section 15 as 16; and
(2) inserting after section 14 the following:
``SEC. 15. PROTECTION FROM EXPLOITATION.
``(a) Contract Requirements.--
``(1) In general.--Any contract between a boxer and a
promoter or manager shall--
``(A) include mutual obligations between the
parties;
``(B) specify a minimum number of professional
boxing matches per year for the boxer; and
``(C) set forth a specific period of time during
which the contract will be in effect, including any
provision for extension of that period due to the
boxer's temporary inability to compete because of an
injury or other cause.
``(2) 1-year limit on coercive promotional rights.--
``(A) The period of time for which promotional
rights to promote a boxer may be granted under a
contract between the boxer and a promoter, or between
promoters with respect to a boxer, may not be greater
than 12 months in length if the boxer is required to
grant such rights, or a boxer's promoter is required
to grant such rights with respect to a boxer, as a condition precedent
to the boxer's participation in a professional boxing match against
another boxer who is under contract to the promoter.
``(B) A promoter exercising promotional rights with
respect to such boxer during the 12-month period
beginning on the day after the last day of the
promotional right period described in subparagraph (A)
may not secure exclusive promotional rights from the
boxer's opponents as a condition of participating in a
professional boxing match against the boxer, and any
contract to the contrary--
``(i) shall be considered to be in
restraint of trade and contrary to public
policy; and
``(ii) unenforceable.
``(C) Nothing in this paragraph shall be construed
as pre-empting any State law concerning interference
with contracts.
``(3) Promotional rights under mandatory bout contracts.--
Neither a promoter nor a sanctioning organization may require a
boxer, in a contract arising from a professional boxing match
that is a mandatory bout under the rules of the sanctioning
organization, to grant promotional rights to any promoter for a
future professional boxing match.
``(b) Employment as Condition of Promotion, Etc.--No person who is
a licensee, manager, matchmaker, or promoter may require a boxer to
employ, retain, or provide compensation to any individual or business
enterprise (whether operating in corporate form or not) recommended or
designated by that person as a condition of--
``(1) such person's working with the boxer as a licensee,
manager, matchmaker, or promoter;
``(2) such person's arranging for the boxer to participate
in a professional boxing match; or
``(3) such boxer's participation in a professional boxing
match.
``(c) Enforcement.--
``(1) Promotion agreement.--A provision in a contract
between a promoter and a boxer, or between promoters with
respect to a boxer, that violates subsection (a) is contrary to
public policy and unenforceable at law.
``(2) Employment agreement.--In any action brought against
a boxer to recover money (whether as damages or as money owned)
for acting as a licensee, manager, matchmaker, or promoter for
the boxer, the court, arbitrator, or administrative body before
which the action is brought may deny recovery in whole or in
part under the contract as contrary to public policy if the
employment, retention, or compensation that is the subject of
the action was obtained in violation of subsection (b).''.
(b) Conflicts of Interest.--Section 9 of such Act (15 U.S.C. 6308)
is amended by--
(1) striking ``No member'' and inserting ``(a) Regulatory
Personnel.--No member''; and
(2) adding at the end thereof the following:
``(b) Firewall Between Promoters and Managers.--
``(1) In general.--It is unlawful for--
``(A) a promoter to have a direct or indirect
financial interest in the management of a boxer; or
``(B) a manager--
``(i) to have a direct or indirect
financial interest in the promotion of a boxer;
or
``(ii) to be employed by or receive
compensation or other benefits from a promoter,
except for amounts received as consideration under the
manager's contract with the boxer.
``(2) Exception for self-promotion and management.--
Paragraph (1) does not prohibit a boxer from acting as his own
promoter or manager.''.
SEC. 5. SANCTIONING ORGANIZATION INTEGRITY REFORMS.
(a) In General.--The Professional Boxing Safety Act of 1996 (15
U.S.C. 6301 et seq.), as amended by section 4 of this Act, is amended
by--
(1) redesignating section 16, as redesignated by section 4
of this Act, as section 17; and
(2) by inserting after section 15 the following:
``SEC. 16. SANCTIONING ORGANIZATIONS.
``(a) Objective Criteria.--A sanctioning organization that
sanctions professional boxing matches on an interstate basis shall
establish objective and consistent written criteria for the ratings of
professional boxers.
``(b) Appeals Process.--A sanctioning organization shall establish
and publish an appeals procedure that affords a boxer rated by that
organization a reasonable opportunity, without the payment of any fee,
to submit information to contest its rating of the boxer. Under the
procedure, the sanctioning organization shall, within 14 days after
receiving a request from a boxer questioning that organization's rating
of the boxer--
``(1) provide to the boxer a written explanation of the
organization's criteria, its rating of the boxer, and the
rationale or basis for its rating (including a response to any
specific questions submitted by the boxer); and
``(2) submit a copy of its explanation to the President of
the Association of Boxing Commissions of the United States and
to the boxing commission of the boxer's domiciliary State.
``(c) Notification of Change in Rating.--If a sanctioning
organization changes its rating of a boxer who is included, before the
change, in the top 10 boxers rated by that organization, then, within
14 days after changing the boxer's rating, the organization shall--
``(1) mail notice of the change and a written explanation
of the reasons for its change in that boxer's rating to the
boxer at the boxer's last known address;
``(2) post a copy, within the 14-day period, of the notice
and the explanation on its Internet website or homepage, if
any, for a period of not less than 30 days; and
``(3) mail a copy of the notice and the explanation to the
President of the Association of Boxing Commissions.
``(d) Public Disclosure.--
``(1) FTC filing.--Not later than January 31st of each
year, a sanctioning organization shall submit to the Federal
Trade Commission--
``(A) a complete description of the organization's
ratings criteria, policies, and general sanctioning fee
schedule;
``(B) the bylaws of the organization;
``(C) the appeals procedure of the organization;
and
``(D) a list and business address of the
organization's officials who vote on the ratings of
boxers.
``(2) Format; updates.--A sanctioning organization shall--
``(A) provide the information required under
paragraph (1) in writing, and, for any document greater
than 2 pages in length, also in electronic form; and
``(B) promptly notify the Federal Trade Commission
of any material change in the information submitted.
``(3) FTC to make information available to public.--The
Federal Trade Commission shall make information received under
this subsection available to the public. The Commission may
assess sanctioning organizations a fee to offset the costs it
incurs in processing the information and making it available to
the public.
``(4) Internet alternative.--In lieu of submitting the
information required by paragraph (1) to the Federal Trade
Commission, a sanctioning organization may provide the
information to the public by maintaining a website on the
Internet that--
``(A) is readily accessible by the general public
using generally available search engines and does not
require a password or payment of a fee for full access
to all the information;
``(B) contains all the information required to be
submitted to the Federal Trade Commission by paragraph
(1) in an easy to search and use format; and
``(C) is updated whenever there is a material
change in the information.''.
(b) Conflict of Interest.--Section 9 of such Act (15 U.S.C. 6308),
as amended by section 4 of this Act, is amended by adding at the end
thereof the following:
``(c) Sanctioning Organizations.--
``(1) Prohibition on receipts.--Except as provided in
paragraph (2), no officer or employee of a sanctioning
organization may receive any compensation, gift, or benefit directly or
indirectly from a promoter, boxer, or manager.
``(2) Exceptions.--Paragraph (1) does not apply to--
``(A) the receipt of payment by a promoter, boxer,
or manager of a sanctioning organization's published
fee for sanctioning a professional boxing match or
reasonable expenses in connection therewith if the
payment is reported to the responsible boxing
commission under section 17; or
``(B) the receipt of a gift or benefit of de
minimis value.''.
(c) Sanctioning Organization Defined.--Section 2 of the
Professional Boxing Safety Act of 1996 (15 U.S.C. 6301) is amended by
adding at the end thereof the following:
``(11) Sanctioning organization.--The term `sanctioning
organization' means an organization that sanctions professional
boxing matches in the United States--
``(A) between boxers who are residents of different
States; or
``(B) that are advertised, otherwise promoted, or
broadcast (including closed circuit television) in
interstate commerce.''.
SEC. 6. PUBLIC INTEREST DISCLOSURES TO STATE BOXING COMMISSIONS.
(a) In General.--The Professional Boxing Safety Act of 1996 (15
U.S.C. 6301 et seq.), as amended by section 5 of this Act, is amended
by--
(1) redesignating section 17 as redesignated by section 5
of this Act, as section 18; and
(2) by inserting after section 16 the following:
``SEC. 17. REQUIRED DISCLOSURES TO STATE BOXING COMMISSIONS.
``(a) Sanctioning Organizations.--Before sanctioning a professional
boxing match in a State, a sanctioning organization shall provide to
the boxing commission of, or responsible for sanctioning matches in,
that State a written statement of--
``(1) all charges, fees, and costs the organization will
assess any boxer participating in that match;
``(2) all payments, benefits, complimentary benefits, and
fees the organization will receive for its affiliation with the
event, from the promoter, host of the event, and all other sources; and
``(3) such additional information as the commission may
require.
``(b) Promoters.--Before a professional boxing match organized,
promoted, or produced by a promoter is held in a State, the promoter
shall provide a statement in writing to the boxing commission of, or
responsible for sanctioning matches in, that State--
``(1) a copy of any agreement in writing to which the
promoter is a party with any boxer participating in the match;
``(2) a statement made under penalty of perjury that there
are no other agreements, written or oral, between the promoter
and the boxer with respect to that match; and
``(3) a statement in writing of--
``(A) all fees, charges, and expenses that will be
assessed by or through the promoter on the boxer
pertaining to the event, including any portion of the
boxer's purse that the promoter will receive, and
training expenses; and
``(B) all payments, gift, or benefits the promoter
is providing to any sanctioning organization affiliated
with the event.
``(c) Information To Be Available to State Attorney General.--A
promoter shall make information received under this section available
to the chief law enforcement officer of the State in which the match is
to be held upon request.
``(d) Exception.--The requirements of this section do not apply in
connection with a professional boxing match scheduled to last less than
10 rounds.''.
SEC. 7. ENFORCEMENT.
Section 10 of the Professional Boxing Safety Act of 1996 (15 U.S.C.
6309) is amended by--
(1) inserting a comma and ``other than section 9(b), 15,
16, or 17,'' after ``this Act'' in subsection (b)(1);
(2) redesignating paragraphs (2) and (3) of subsection (b)
as paragraphs (3) and (4), respectively, and inserting after
paragraph (1) the following:
``(2) Violation of anti-exploitation, sanctioning
organization, or disclosure provisions.--Any person who
knowingly violates any provision of section 9(b), 15, 16, or 17
of this Act shall, upon conviction, be imprisoned for not more
than 1 year or fined not more than--
``(A) $100,000; and
``(B) if the violations occur in connection with a
professional boxing match the gross revenues for which
exceed $2,000,000, such additional amount as the court
finds appropriate,
or both.''; and
(3) adding at the end thereof the following:
``(c) Actions by States.--Whenever the chief law enforcement
officer of any State has reason to believe that a person or
organization is engaging in practices which violate any requirement of
this Act, the State, as parens patriae, may bring a civil action on
behalf of its residents in an appropriate district court of the United
States--
``(1) to enjoin the holding of any professional boxing
match which the practice involves;
``(2) to enforce compliance with this Act;
``(3) to obtain the fines provided under subsection (b) or
appropriate restitution; or
``(4) to obtain such other relief as the court may deem
appropriate.
``(d) Private Right of Action.--Any boxer who suffers economic
injury as a result of a violation of any provision of this Act may
bring an action in the appropriate Federal or State court and recover
the damages suffered, court costs, and reasonable attorneys fees and
expenses.''.
SEC. 8. PROFESSIONAL BOXING SAFETY ACT AMENDMENTS.
(a) Definitions.--Section 2 of the Professional Boxing Safety Act
of 1996 (15 U.S.C. 6301), as amended by section 5(c) of this Act, is
amended by adding at the end thereof the following:
``(12) Suspension.--The term `suspension' includes within
its meaning the revocation of a boxing license.''.
(b) State Boxing Commission Procedures.--Section 7(a)(2) of such
Act (15 U.S.C. 6306(a)(2)) is amended--
(1) by striking ``or'' in subparagraph (C);
(2) by striking ``documents.'' at the end of subparagraph
(D) and inserting ``documents; or''; and
(3) adding at the end thereof the following:
``(E) unsportsmanlike conduct or other
inappropriate behavior inconsistent with generally
accepted methods of competition in a professional
boxing match.''.
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