[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1832 Placed on Calendar Senate (PCS)]
Calendar No. 421
106th CONGRESS
1st Session
H. R. 1832
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 9, 1999
Received
November 19, 1999
Read twice and placed on the calendar
_______________________________________________________________________
AN ACT
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) 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 violate State regulations, or are onerous and confiscatory.
(3) 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.
(4) 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.
(5) Open competition in the professional boxing industry
has been significantly interfered with by restrictive and
anticompetitive 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.
(6) It is necessary and appropriate to establish national
contracting reforms to protect professional boxers and prevent
exploitive business practices, and to require enhanced
financial disclosures to State athletic commissions to improve
the public oversight of the sport.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to protect the rights and welfare of professional
boxers on an interstate basis by preventing certain exploitive,
oppressive, and unethical business practices;
(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--
(1) by redesignating sections 9 through 15 as sections 17
through 23, respectively; and
(2) by inserting after section 8 the following new
sections:
``SEC. 9. CONTRACT REQUIREMENTS.
``Within 2 years after the date of the enactment of the Muhammad
Ali Boxing Reform Act, the Association of Boxing Commissions shall
develop and shall approve by a vote of no less than a majority of its
member State boxing commissioners, guidelines for minimum contractual
provisions that should be included in bout agreements and boxing
contracts. It is the sense of the Congress that State boxing
commissions should follow these ABC guidelines.
``SEC. 10. PROTECTION FROM COERCIVE CONTRACTS.
``(a) General Rule.--
``(1)(A) A contract provision shall be considered to be in
restraint of trade, contrary to public policy, and
unenforceable against any boxer to the extent that it--
``(i) is a coercive provision described in
subparagraph (B) and is for a period greater than 12
months; or
``(ii) is a coercive provision described in
subparagraph (B) and the other boxer under contract to
the promoter came under that contract pursuant to a
coercive provision described in subparagraph (B).
``(B) A coercive provision described in this subparagraph
is a contract provision that grants any rights between a boxer
and a promoter, or between promoters with respect to a boxer,
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 to another promoter, as a condition precedent to the
boxer's participation in a professional boxing match against
another boxer who is under contract to the promoter.
``(2) This subsection shall only apply to contracts entered
into after the date of the enactment of the Muhammad Ali Boxing
Reform Act.
``(3) No subsequent contract provision extending any rights
or compensation covered in paragraph (1) shall be enforceable
against a boxer if the effective date of the contract
containing such provision is earlier than 3 months before the
expiration of the relevant time period set forth in paragraph
(1).
``(b) Promotional Rights Under Mandatory Bout Contracts.--No boxing
service provider may require a boxer to grant any future promotional
rights as a requirement of competing in a professional boxing match
that is a mandatory bout under the rules of a sanctioning organization.
``SEC. 11. SANCTIONING ORGANIZATIONS.
``(a) Objective Criteria.--Within 2 years after the date of the
enactment of the Muhammad Ali Boxing Reform Act, the Association of
Boxing Commissions shall develop and shall approve by a vote of no less
than a majority of its member State boxing commissioners, guidelines
for objective and consistent written criteria for the ratings of
professional boxers. It is the sense of the Congress that sanctioning
bodies and State boxing commissions should follow these ABC guidelines.
``(b) Appeals Process.--A sanctioning organization shall not be
entitled to receive any compensation, directly or indirectly, in
connection with a boxing match, until it provides the boxers with
notice that the sanctioning organization shall, within 7 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 Association
of Boxing Commissions.
``(c) Notification of Change in Rating.--A sanctioning organization
shall not be entitled to receive any compensation, directly or
indirectly, in connection with a boxing match, until, with respect to a
change in the rating of a boxer previously rated by such organization
in the top 10 boxers, the organization--
``(1) posts a copy, within 7 days of such change, on its
Internet website or home page, if any, including an explanation
of such change, for a period of not less than 30 days; and
``(2) provides a copy of the rating change and explanation
to an association to which at least a majority of the State
boxing commissions belong.
``(d) Public Disclosure.--
``(1) FTC filing.--A sanctioning organization shall not be
entitled to receive any compensation directly or indirectly in
connection with a boxing match unless, not later than January
31 of each year, it submits to the Federal Trade Commission and
to the ABC--
``(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 for
a boxer's rating; 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.
``SEC. 12. REQUIRED DISCLOSURES TO STATE BOXING COMMISSIONS BY
SANCTIONING ORGANIZATIONS.
``A sanctioning organization shall not be entitled to receive any
compensation directly or indirectly in connection with a boxing match
until it provides to the boxing commission responsible for regulating
the match in a State a 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.
``SEC. 13. REQUIRED DISCLOSURES FOR PROMOTERS.
``(a) Disclosures to the Boxing Commissions.--A promoter shall not
be entitled to receive any compensation directly or indirectly in
connection with a boxing match until it provides to the boxing
commission responsible for regulating the match in a State a statement
of--
``(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) 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;
``(B) all payments, gifts, or benefits the promoter is
providing to any sanctioning organization affiliated with the
event; and
``(C) any reduction in a boxer's purse contrary to a
previous agreement between the promoter and the boxer or a
purse bid held for the event.
``(b) Disclosures to the Boxer.--A promoter shall not be entitled
to receive any compensation directly or indirectly in connection with a
boxing match until it provides to the boxer it promotes--
``(1) the amounts of any compensation or consideration that
a promoter has contracted to receive from such match;
``(2) 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
``(3) any reduction in a boxer's purse contrary to a
previous agreement between the promoter and the boxer or a
purse bid held for the event.
``(c) Information To Be Available to State Attorney General.--A
promoter shall make information required to be disclosed under this
section available to the chief law enforcement officer of the State in
which the match is to be held upon request of such officer.
``SEC. 14. REQUIRED DISCLOSURES FOR JUDGES AND REFEREES.
``A judge or referee shall not be entitled to receive any
compensation, directly or indirectly, in connection with a boxing match
until it provides to the boxing commission responsible for regulating
the match in a State a statement of all consideration, including
reimbursement for expenses, that will be received from any source for
participation in the match.
``SEC. 15. CONFIDENTIALITY.
``(a) In General.--Neither a boxing commission or an Attorney
General may disclose to the public any matter furnished by a promoter
under section 13 except to the extent required in a legal,
administrative, or judicial proceeding.
``(b) Effect of Contrary State Law.--If a State law governing a
boxing commission requires that information that would be furnished by
a promoter under section 13 shall be made public, then a promoter is
not required to file such information with such State if the promoter
files such information with the ABC.
``SEC. 16. JUDGES AND REFEREES.
``No person may arrange, promote, organize, produce, or fight in a
professional boxing match unless all referees and judges participating
in the match have been certified and approved by the boxing commission
responsible for regulating the match in the State where the match is
held.''.
SEC. 5. CONFLICT OF INTEREST.
Section 17 of the Professional Boxing Safety Act of 1996 (15 U.S.C.
6308) (as redesignated by section 4 of this Act) is amended--
(1) in the first sentence by striking ``No member'' and
inserting ``(a) Regulatory Personnel.--No member''; and
(2) by adding at the end 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) Exceptions.--Paragraph (1)--
``(A) does not prohibit a boxer from acting as his
own promoter or manager; and
``(B) only applies to boxers participating in a
boxing match of 10 rounds or more.
``(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; or
``(B) the receipt of a gift or benefit of de
minimis value.''.
SEC. 6. ENFORCEMENT.
Subsection (b) of section 18 of the Professional Boxing Safety Act
of 1996 (15 U.S.C. 6309) (as redesignated by section 4 of this Act) is
amended--
(1) in paragraph (1) by inserting a comma and ``other than
section 9(b), 10, 11, 12, 13, 14, or 16,'' after ``this Act'';
(2) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(3) by inserting after paragraph (1) the following:
``(2) Violation of antiexploitation, sanctioning
organization, or disclosure provisions.--Any person who
knowingly violates any provision of section 9(b), 10, 11, 12,
13, 14, or 16 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 a violation occurs in connection with a
professional boxing match the gross revenues for which
exceed $2,000,000, an additional amount which bears the
same ratio to $100,000 as the amount of such revenues
compared to $2,000,000, or both.''; and
(4) in paragraph (3) (as redesignated by paragraph 2 of
this subsection) by striking ``section 9'' and inserting
``section 17(a)''; and
(5) by adding at the end 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.
``(e) Enforcement Against Federal Trade Commission, State Attorneys
General, Etc.--Nothing in this Act authorizes the enforcement of--
``(1) any provision of this Act against the Federal Trade
Commission, the United States Attorney General, or the chief
legal officer of any State for acting or failing to act in an
official capacity;
``(2) subsection (d) of this section against a State or
political subdivision of a State, or any agency or
instrumentality thereof; or
``(3) section 10 against a boxer acting in his capacity as
a boxer.''.
SEC. 7. ADDITIONAL AMENDMENTS.
(a) Definitions.--Section 2(a) of the Professional Boxing Safety
Act of 1996 (15 U.S.C. 6301(a)) is amended--
(1) in paragraph (10) by striking the period at the end and
inserting ``, including the Virgin Islands.''; and
(2) by adding at the end the following:
``(11) Effective date of the contract.--The term `effective
date of the contract' means the day upon which a boxer becomes
legally bound by the contract.
``(12) Boxing service provider.--The term `boxing service
provider' means a promoter, manager, sanctioning body,
licensee, or matchmaker.
``(13) Contract provision.--The term `contract provision'
means any legal obligation between a boxer and a boxing service
provider.
``(14) 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.
``(15) Suspension.--The term `suspension' includes within
its meaning the revocation of a boxing license.''.
(b) State Boxing Commission Procedures.--Section 7(a)(2) of the
Professional Boxing Safety Act of 1996 (15 U.S.C. 6306(a)(2)) is
amended--
(1) in subparagraph (C) by striking ``or'';
(2) in subparagraph (D) by striking ``documents.'' at the
end and inserting ``documents; or''; and
(3) by adding at the end the following:
``(E) unsportsmanlike conduct or other
inappropriate behavior inconsistent with generally
accepted methods of competition in a professional
boxing match.''.
(c) Renewal Period for Identification Cards.--Section 6(b)(2) of
the Professional Boxing Safety Act of 1996 (15 U.S.C. 6305(b)(2)) is
amended by striking ``2 years.'' and inserting ``4 years.''.
(d) Review of Suspensions.--Section 7(a)(3) of the Professional
Boxing Safety Act of 1996 (15 U.S.C. 6306(a)(3)) is amended by striking
``boxer'' and inserting ``boxer, licensee, manager, matchmaker,
promoter, or other boxing service provider''.
(e) Alternative Supervision.--Section 4 of the Professional Boxing
Safety Act of 1996 (15 U.S.C. 6303) is amended--
(1) by striking ``No person'' and inserting ``(a) No
person''; and
(2) by inserting at the end thereof the following:
``(b) For the purpose of this Act, if no State commission is
available to supervise a boxing match according to subsection (a),
then--
``(1) the match may not be held unless it is supervised by
an association of boxing commissions to which at least a
majority of the States belong; and
``(2) any reporting or other requirement relating to a
supervising commission allowed under this section shall be
deemed to refer to the entity described in paragraph (1).''.
(f) Health and Safety Disclosures.--Section 6 of the Professional
Boxing Safety Act of 1996 (15 U.S.C. 6305) is amended by adding at the
end the following new subsection:
``(c) Health and Safety Disclosures.--It is the sense of the
Congress that a boxing commission should, upon issuing an
identification card to a boxer under subsection (b)(1), make a health
and safety disclosure to that boxer as that commission considers
appropriate. The health and safety disclosure should include the health
and safety risks associated with boxing, and, in particular, the risk
and frequency of brain injury and the advisability that a boxer
periodically undergo medical procedures designed to detect brain
injury.''.
Passed the House of Representatives November 8, 1999.
Attest:
JEFF TRANDAHL,
Clerk.
Calendar No. 421
106th CONGRESS
1st Session
H. R. 1832
_______________________________________________________________________
AN ACT
To reform unfair and anticompetitive practices in the professional
boxing industry.
_______________________________________________________________________
November 19, 1999
Read twice and placed on the calendar