[Congressional Record (Bound Edition), Volume 145 (1999), Part 13]
[Senate]
[Pages 18322-18324]
[From the U.S. Government Publishing Office, www.gpo.gov]



                     MUHAMMAD ALI BOXING REFORM ACT

  On July 27, 1999, the Senate passed S. 305. The text follows:

                                 S. 305

       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 promoting honorable competition in professional 
     boxing and enhance the overall integrity of the industry.

     SEC 4. PROTECTING BOXERS FROM EXPLOITATION.

       (a) In General.--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 during that period, 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 Promoting, 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 
     owed) 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 boxer's promoter (or a promoter who is required to 
     be licensed under State

[[Page 18323]]

     law) to have a direct or indirect financial interest in that 
     boxer's licensed manager or management company; or
       ``(B) a licensed manager or management company (or a 
     manager or management company that, under State law, is 
     required to be licensed)--
       ``(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.''.
       (c) Effective Date.--The amendments made by subsection (a) 
     apply to contracts executed after the date of enactment of 
     this Act.

     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) inserting after section 15 the following:

     ``SEC. 16. SANCTIONING ORGANIZATIONS.

       ``(a) Objective Criteria.--A sanctioning organization 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 any 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, or who, as a result of the change is included 
     in the top 10 boxers rated by that organization, then, after 
     changing the boxer's rating, the organization shall--
       ``(1) within 5 business days 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) immediately post a copy 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 if the 
     organization does not have an address for the boxer or does 
     not have an Internet website or homepage.
       ``(d) Public Disclosure.--
       ``(1) FTC filing.--Not later than January 31 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 Posting.--In addition to submitting the 
     information required by paragraph (1) to the Federal Trade 
     Commission, a sanctioning organization shall 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 ranks boxers or 
     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.

       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) inserting after section 16 the following:

     ``SEC. 17. REQUIRED DISCLOSURES TO STATE BOXING COMMISSIONS.

       ``(a) Sanctioning Organizations.--Before sanctioning or 
     authorizing a professional boxing match in a State, a 
     sanctioning organization shall provide to the boxing 
     commission of, or responsible for regulating 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.
     A sanctioning organization that receives compensation from 
     any source to refrain from exercising its authority or 
     jurisdiction over, or withholding its sanction of, a 
     professional boxing match in any State shall provide the 
     information required by paragraphs (2) and (3) to the boxing 
     commission of that State.
       ``(b) Promoters.--Before a professional boxing match 
     organized, promoted, or produced by a promoter is held in a 
     State, the promoter shall provide to the boxing commission 
     of, or responsible for regulating 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 in writing 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;
       ``(B) all payments, gift, or benefits the promoter is 
     providing to any sanctioning organization affiliated with the 
     event; and
       ``(C) any reduction in the amount or percentage of a 
     boxer's purse after--
       ``(i) a previous agreement concerning the amount or 
     percentage of that purse has been reached between the 
     promoter and the boxer; or
       ``(ii) a purse bid held for the event.
       ``(c) Judges.--Before participating in a professional 
     boxing match as a judge in any State, an individual shall 
     provide to the boxing commission of, or responsible for 
     regulating matches in, that State a statement in writing of 
     all payments, including reimbursement for expenses, and any 
     other benefits that individual will receive from any source 
     for judging that match.
       ``(d) 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.
       ``(e) Exception.--The requirements of this section do not 
     apply in connection with a professional boxing match 
     scheduled to last less than 10 rounds.

[[Page 18324]]

       ``(f) Confidentiality of Agreements.--Neither a boxing 
     commission nor an Attorney General may disclose to the public 
     any matter furnished by a promoter under subsection (b)(1) or 
     subsection (d) except to the extent required in public legal, 
     administrative, or judicial proceedings brought against that 
     promoter under State law.''.

     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, 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), 9(c), 15, 
     16, 17, or 18 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 the gross revenues in excess of 
     $2,000,000 bears to $2,000,000,
     or both.'';
       (3) striking in ``section 9'' in paragraph (3), as 
     redesignated, and inserting ``section 9(a)''; and
       (4) 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 that involves such practices;
       ``(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, 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 15 against a boxer acting in his capacity as 
     a boxer.''.

     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) 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.''.
       (c) State Boxing Commission Procedures.--Section 7(a)(2) of 
     such Act (15 U.S.C. 6306(a)(2)) is amended by--
       (1) striking ``or'' in subparagraph (C);
       (2) 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.''.
       (d) Standardized Physical Examinations.--Section 5(1) of 
     the Professional Boxing Safety Act of 1996 (15 U.S.C. 
     6304(1)) is amended by inserting after ``examination'' the 
     following: ``, based on guidelines endorsed by the American 
     Medical Association, including a circulo-respiratory check 
     and a neurological examination,''.
       (e) CAT Scans.--Section 6(b)(2) of the Professional Boxing 
     Safety Act of 1996 (15 U.S.C. 6305(b)(2)) is amended by 
     inserting before the period the following: ``and, with 
     respect to such renewal, present proof from a physician that 
     such boxer has taken a computerized axial tomography (CAT) 
     scan within the 30-day period preceding that date on which 
     the renewal application is submitted and that no brain damage 
     from boxing has been detected.

     SEC. 9. REQUIREMENTS FOR CONTRACTS BETWEEN BOXERS AND 
                   BROADCASTING COMPANIES.

       (a) In General.--The Professional Boxing Safety Act of 1996 
     (15 U.S.C. 6301 et seq.), as amended by section 6, is 
     amended--
       (1) by redesignating section 18, as redesignated by section 
     6 of this Act, as section 19; and
       (2) by inserting after section 17 the following:

     ``SEC. 18. CONTRACTS BETWEEN BOXERS AND BROADCASTING 
                   COMPANIES.

       ``(a) Contract Requirements.--Any contract between a boxer 
     and a broadcaster for the broadcast of a boxing match in 
     which that boxer is competing shall--
       ``(1) include mutual obligations between the parties; and
       ``(2) specify either--
       ``(A) the number of bouts to be broadcast; or
       ``(B) the duration of the contract.
       ``(b) Prohibitions.--A broadcaster may not--
       ``(1) require a boxer to employ a relative or associate of 
     the broadcaster in any capacity as a condition of entering 
     into a contract with the broadcaster;
       ``(2) have a direct or indirect financial interest in the 
     boxer's manager or management company; or
       ``(3) make a payment, or provide other consideration (other 
     than of a de minimus amount or value) to a sanctioning 
     organization or any officer or employee of such an 
     organization in connection with any boxer with whom the 
     broadcaster has a contract, or against whom a boxer with whom 
     a broadcaster has a contract is competing.
       ``(c) Notification of Reduction in Agreed Amount.--If a 
     broadcaster has a contract with a boxer to broadcast a match 
     in which that boxer is competing, and the broadcaster reduces 
     the amount it agreed to pay the boxer under that contract 
     (whether unilaterally or by mutual agreement), the 
     broadcaster shall notify, in writing within 48 hours after 
     the reduction, the supervising State commission for that 
     match of the reduction.
       ``(d) Enforcement.--
       ``(1) contract.--A provision in a contract between a 
     broadcaster and a boxer that violates subsection (a) is 
     contrary to public policy and unenforceable at law.
       ``(2) Prohibitions; Notification.--For enforcement of 
     subsections (b) and (c), see section 10.''.
       (b) Broadcaster Defined.--Section 2 of the Professional 
     Boxing Safety Act of 1996 (15 U.S.C. 6301), as amended by 
     section 8 of this Act, is amended by adding at the end 
     thereof the following:
       ``(13) Broadcaster.--The term `broadcaster' means any 
     person who is a licensee as that term is defined in section 
     3(24) of the Communications Act of 1934 (47 U.S.C. 
     153(24)).''.

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