Renames the state boxing commission as the state athletic commission; requires state athletic commission to regulate boxing and mixed martial arts contests; defines unarmed combat and mixed martial arts.

A BILL FOR AN ACT

SECTION 1. Chapter 440, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . Mixed martial arts contests and exhibitions

§440-A Conduct of contests and exhibitions; applicability of provisions. (a) All contests and exhibitions of mixed martial arts shall be conducted under the supervision and authority of the commission.

(b) Except as otherwise provided by specific statute or rule, the provisions of this chapter, including section 440-11 shall apply to a contest or exhibition of mixed martial arts.

"§440-B No rules combat, extreme or ultimate fighting, or similar contests prohibited. (a) No person shall hold, promote, or participate as a contestant in no rules combat, extreme or ultimate fighting, or similar contests. As used in this section, "no rules combat, extreme or ultimate fighting, or similar contest" means a match or exhibition performed in this State, in which the contestants:

The term does not include a contest involving the exclusive use of boxing, wrestling, kickboxing, or martial arts.

(b) In addition to any other applicable judicial remedy, a person who violates this section shall be subject to a fine of not more than $10,000 for each offense. Each day's violation or failure to comply shall be deemed a separate offense. The fines shall be levied and collected by the department.

(c) The department may bring an action in any court of this State to enjoin a person from continuing any violation of this section or doing any acts in furtherance thereof, and for any other relief that the court deems appropriate.

(d) In any proceeding before the department involving a violation of this section, there shall be a rebuttable presumption that a violation has occurred and a promoter or contestant shall have the burden of overcoming the presumption.

§440-C Rules. The commission may adopt further rules, pursuant to chapter 91, for mixed martial arts contests that it considers necessary."

SECTION 2. Section 440-1, Hawaii Revised Statutes, is amended as follows:

1. By adding four new definitions to be appropriately designated and to read:

""Mixed martial arts" means unarmed combat involving the use, subject to any applicable limitations set forth in this chapter and any rules adopted to implement it, of a combination of techniques from different disciplines of martial arts, including without limitation grappling, kicking, and striking.

"Mixed martial arts contest" means a contest or exhibition in which a mixed martial arts contestant competes with another mixed martial arts contestant for a money prize or purse or other form of compensation.

"Mixed martial arts contestant" means a person who competes for a money prize or purse or other form of compensation, in unarmed combat involving the use, subject to the applicable limitations of this chapter and rules adopted to implement it.

"Unarmed combat" includes amateur boxing contests and matches or exhibitions between professional boxers or mixed martial arts contestants."

2. By amending the definition of "club" to read:

"Club" means a promoter, corporation, joint venture, partnership, limited liability corporation, limited liability partnership, or any other type of business entity that promotes, conducts, holds, or gives a [boxing] contest. The terms "club" and "promoter" are synonymous, and may be used interchangeably.

3. By amending the definition of "commission" to read:

""Commission" means the state [boxing] athletic commission."

4. By amending the definition of "contest" to read:

""Contest" means an unarmed combat match or exhibition."

5. By amending the definition of "manager" to read:

"Manager" means any person who:

SECTION 3. Section 440-2, Hawaii Revised Statutes, is amended to read as follows:

"§440-2 Commission established. There shall be a board [which] that shall be known as the state [boxing] athletic commission of Hawaii. The commission shall consist of [five] seven members. At least one of the members shall be a member of USA Boxing, Inc. and two of the members shall be knowledgeable and experienced in the martial arts. One member shall be designated by the governor as chairperson of the commission."

SECTION 4. Section 440-5, Hawaii Revised Statutes, is amended to read as follows:

"§440-5 Deputy commissioners. The director may appoint deputy commissioners; provided that the director has the approval of the commission prior to any appointment. The director may remove deputy commissioners after consultation with the commission. The commission may direct the deputy commissioner or deputy commissioners to be present at any [boxing] contest and, in the absence of the commission or a member thereof, to superintend and control the [boxing] contest, in accordance with this chapter and the rules adopted by the commission pursuant thereto. The deputy commissioners shall make a written report to the executive officer in the manner and form prescribed by the commission of the conditions prevailing at every contest."

SECTION 5. Section 440-8.5, Hawaii Revised Statutes, is amended to read as follows:

"§440-8.5 Powers and duties of the commission. In addition to any other powers and duties authorized by law, the commission shall adopt rules pursuant to chapter 91 to provide for the following:

SECTION 6. Section 440-10, Hawaii Revised Statutes, is amended to read as follows:

"§440-10 Licenses, promoters. (a) Any individual or club may apply to the commission for a license to conduct, hold, or give [professional boxing] unarmed combat contests. The application shall be in writing, addressed to the commission, and signed by the applicant[,] or, if the applicant is a club, by a duly authorized officer, partner, or member thereof, and shall include the following:

(b) The application shall contain a recital of the facts as may be specified by the commission in order for it to determine whether [or not] the applicant possesses the necessary physical, mental, moral, and financial qualifications to entitle the applicant to a license.

(c) The commission shall not issue any license to conduct, hold, or give [boxing] contests unless it is satisfied that the applicant has complied with the conditions of this chapter, possesses the necessary qualifications for a license, [and] is the real party in interest, and intends to conduct, hold, or give the contests or matches itself. The commission shall not issue a promoter's license to an applicant if the applicant or any of the applicant's officers, partners, members, or associates have been convicted of any crime related to gambling or a crime that is directly related to the person's performance in the sport of [boxing.] unarmed combat.

(d) A license may be revoked at any time if the commission finds after a hearing that: the licensee is not the real party in interest or has not complied with this chapter or the rules of the commission; or the licensee or any of the licensee's officers, partners, members, or associates have been convicted of any crime related to gambling or a crime that is directly related to the person's performance in the sport of [boxing.] unarmed combat.

(e) Every license shall be subject to this chapter and the rules of the commission."

SECTION 7. Section 440-11, Hawaii Revised Statutes, is amended to read as follows:

"§440-11 Requirements to hold a [boxing] contest. (a) The application for a license to promote [professional boxing] unarmed combat contests shall be accompanied by a fee as provided in rules adopted by the director pursuant to chapter 91.

(b) For approval to conduct, hold, or give a [boxing] contest, a promoter shall provide proof of medical insurance for [boxers] contestants in accordance with rules adopted by the commission. All promoters shall be responsible for paying any deductible amount of the medical insurance policy.

(c) Prior to each [boxing] contest, a promoter shall provide a bond, in an amount determined by the commission, to adequately cover the promoter's obligations in conducting, holding, or giving a [boxing] contest. The bond shall be executed by the promoter as principal and by a surety company authorized to do business in the State as the surety. If the promoter fails to pay any obligations covered by the bond, any aggrieved person may file an action against the bond to recover the amount owed, in the circuit court in the circuit in which the [boxing] contest was conducted, held, or given; provided that the aggregate liability of the surety to all aggrieved persons shall not exceed the amount of the bond. Any action against the bond shall be commenced within ninety days after the [boxing] contest was conducted, held, or given.

(d) Prior to any [boxing] contest, all contracts with managers, [boxers,] contestants, and venues, including any agreement of pre-contest training funds advanced to any contestant either by the promoter or manager or any party of interest, shall be submitted by the promoter to the commission for its review and approval.

(e) Prior to any [boxing] contest, the promoter shall submit to the commission, for its review and approval, all ring records of all [boxers] contestants scheduled to participate in the contest.

(f) A promoter shall provide cashier's or certified checks made payable to each contestant for the amount due the contestant or the contestant's manager, as the case may be, in accordance with the contracts approved by the commission.

(g) A promoter shall provide to the commission written confirmation that an ambulance with paramedics and appropriate security have been obtained and will be present at all times at the venue of the [boxing] contest.

(h) Failure, refusal, or neglect of any licensed promoter to comply with this section shall result in the automatic denial to hold the [boxing] contest.

(i) Licensed promoters may engage in promotions with other licensed promoters as long as each promoter holds a valid, unexpired license and has received the written approval of the commission prior to the promotion.

(j) In addition to the payment of other fees and moneys due under this chapter, a licensed promoter shall pay:

[(j)] (k) No [boxing] contest shall be commenced without the approval of the commission pursuant to this section."

SECTION 8. Section 440-12, Hawaii Revised Statutes, is amended to read as follows:

"§440-12 Licenses, participants. (a) Any individual may apply to the commission for a license to act as a physician, referee, judge, matchmaker, manager, timekeeper, second, or [professional boxer] unarmed combat contestant to participate, either directly or indirectly, in any [boxing] contest. The application shall be in writing, addressed to the commission, and signed by the applicant. The application shall contain a recital of facts as may be specified by the commission in order for it to determine whether [or not] the applicant possesses the necessary physical, mental, and moral qualifications to entitle the applicant to a license. The commission shall adopt rules for licensure in accordance with chapter 91.

(b) In addition, the applicant for a referee, judge, manager, or second license shall take and pass a written examination as provided by the commission. The commission may exempt an applicant for a manager or second license from taking the examination, if the applicant holds a valid manager or second license in another jurisdiction with comparable [boxing] unarmed combat regulations.

(c) Any license to act as a physician, referee, judge, matchmaker, manager, timekeeper, second, or [professional boxer] unarmed combat contestant may be suspended or revoked, or the person otherwise disciplined by the commission after a contested case hearing held in accordance with chapter 91."

SECTION 9. Section 440-13, Hawaii Revised Statutes, is amended to read as follows:

"§440-13 License fees. (a) License fees shall be paid annually to the State by every applicant to whom a license is issued to participate in the conduct of [professional boxing] unarmed combat in any of the capacities set forth in this chapter: promoter, physician, referee, judge, matchmaker, manager, timekeeper, second, and [professional boxer.] contestant. The charge for a duplicate of a license and all fees required by this chapter shall be as provided in rules adopted by the director pursuant to chapter 91 and shall be deposited with the director to the credit of the compliance resolution fund established pursuant to section 26-9(o).

(b) The director may establish a separate schedule of license fees for participation in amateur boxing contests[,] and may waive payment of license fees for amateur boxing contests."

SECTION 10. Section 440-14, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) No [boxing] contest shall be conducted, held, or given unless all the parties participating, as designated herein, are licensed by the commission, and it shall be unlawful for any individual or club to participate in a [boxing] contest in any capacity designated herein unless the person is licensed to do so.

(b) The commission may limit the number of licenses issued for any purpose as specified in this chapter and may limit the number of [professional boxing] contests conducted, held, or given in any city, town, or in the State."

SECTION 11. Section 440-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Every individual or club holding a license to conduct, hold, or give [boxing] contests, within seventy-two hours after the determination of every [boxing] contest for which admission fees are charged and received, shall furnish to the commission a written report, duly verified, showing the number of tickets sold for the contest, the amount of the gross receipts or proceeds thereof, and other matters as the commission prescribes."

SECTION 12. Section 440-16, Hawaii Revised Statutes, is amended to read as follows:

"§440-16 Failure to report receipts. Whenever any individual or club holding a license to conduct, hold, or give [boxing] contests fails to make a report of any [boxing] contest at the time and in the manner herein prescribed, or whenever the report is unsatisfactory to the commission, the executive officer, at the licensee's expense, may examine, or cause to be examined, the books and records of the individual or club."

SECTION 13. Section 440-17, Hawaii Revised Statutes, is amended to read as follows:

"§440-17 Admission tickets. All tickets of admission to any [boxing] contest for which admission fees are charged and received shall have printed clearly upon the face thereof the purchase price of same, and no ticket shall be sold for more than the price as printed thereon."

SECTION 14. Section 440-18, Hawaii Revised Statutes, is amended to read as follows:

"§440-18 Inspectors; duties. The commission shall appoint official representatives designated as inspectors, each of whom shall receive from the commission a card or badge authorizing the person to act as inspector whenever the commission may designate the person to so act. An inspector or the executive officer shall be present at all professional boxing and mixed martial arts contests and see that this chapter and the rules are strictly observed and, as soon as practicable thereafter, shall mail or deliver to the commission the official box office statement received by the inspector or executive officer."

SECTION 15. Section 440-19, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) At each [boxing] contest there shall be in attendance a duly licensed referee designated by the commission, who shall direct and control the contest. Before starting the [boxing] contest, the referee shall ascertain from each contestant the name of the contestant's chief second and shall hold the chief second responsible for the conduct of the assistant seconds during the progress of the contest."

2. By amending subsection (c) to read:

"(c) Every referee shall warn competing [boxers] contestants of the referee's power to recommend the forfeiture of purse or purses, should there be any apparent cause for the warning."

3. By amending subsection (e) to read:

"(e) The referee shall stop the contest when either of the contestants shows a marked superiority or is apparently outclassed. The referee, at the termination of each [boxing] contest, shall render a decision."

SECTION 16. Section 440-20, Hawaii Revised Statutes, is amended to read as follows:

"§440-20 Judges; duties. The [boxing] commission [may], in its discretion, may appoint two judges to act with the referee in rendering a decision or three judges to act with a nonvoting referee in rendering a decision."

SECTION 17. Section 440-21, Hawaii Revised Statutes, is amended to read as follows:

"§440-21 Physician; duties. Every individual or club holding a license to conduct, hold, or give [boxing] contests shall have in attendance at every [boxing] contest at least two physicians licensed to practice medicine in the State and duly licensed hereunder, who shall observe the physical condition of the contestants and advise the referee with regard thereto and, one hour before each contestant enters the ring, certify in writing as to the physical condition of the contestant to engage in the [boxing] contest. A report of the medical examination shall be filed with the commission not later than twenty-four hours after the termination of the [boxing] contest. In addition, at least one physician shall immediately examine every contestant who was knocked down or who sustained a severe beating about the head during the contest and shall file a written medical opinion within twenty-four hours of the contest to the executive officer."

SECTION 18. Section 440-22, Hawaii Revised Statutes, is amended to read as follows:

"§440-22 Sham [boxing] contest; forfeiture of license. Any individual or club who conducts, holds, or gives or participates in any sham or fake [boxing] contest, knowing [the same] it to be a sham or fake, shall forfeit the license issued in accordance with this chapter, and the license shall be canceled and declared void by the commission. The individual or club and any officers, partners, or members of the club shall not thereafter be entitled to receive and shall not be given another license."

SECTION 19. Section 440-23, Hawaii Revised Statutes, is amended to read as follows:

"§440-23 Sham [boxing] contest; penalty against contestant. Any contestant who knowingly participates in any sham or false [boxing] contest shall be suspended by the [boxing] commission for not less than twelve months from the date of the offense from further participation in any [boxing] contest held or given under this chapter and may be permanently disqualified from further participation in any [boxing] contest held or given under this chapter."

SECTION 20. Section 440-27, Hawaii Revised Statutes, is amended to read as follows:

"§440-27 Financial interest in contestant prohibited. (a) No commission member or staff, appointee, or any individual or club holding a license to conduct, hold, or give [boxing] contests, nor any officer, partner, or member, may receive any compensation from any person who sanctions, arranges, or promotes professional boxing or mixed martial arts contests; nor shall they have, either directly or indirectly, any financial interest in any contestant competing in any [boxing] contest that they conduct, hold, or give.

(b) For purposes of this section, the term "compensation" shall not include funds held in escrow for payment to another person in connection with a professional boxing or mixed martial arts contest. The prohibition set forth in this section shall not apply to any contract entered into, or any reasonable compensation received, by the commission to supervise a professional boxing or mixed martial arts contest in this State or another state."

SECTION 21. Section 440-28, Hawaii Revised Statutes, is amended to read as follows:

"§440-28 Wages of contestant; prepayment prohibited. All moneys paid to a contestant for services, as money prize, reward, compensation, or otherwise, shall be considered wages. No contestant shall be paid for services before a [boxing] contest, provided that with the approval of the commission, a promoter may advance sums of money for training purposes."

SECTION 22. Section 440-33, Hawaii Revised Statutes, is amended to read as follows:

"§440-33 Disposition of receipts. All moneys received by the [boxing] commission shall be deposited by the director of commerce and consumer affairs with the director of finance to the credit of the [general] compliance resolution fund of the State."

SECTION 23. Section 440-35, Hawaii Revised Statutes, is amended to read as follows:

"§440-35 Not to apply to army, air force, navy, national guard, or police activities league. This chapter shall not apply to any [boxing] contest held as a recreational activity by army, air force, navy, or national guard personnel, or the police activities league, when the contest is held under the supervision of a recreational officer of the army, air force, navy, or national guard, or a police activities league staff member."

SECTION 24. Section 440-36, Hawaii Revised Statutes, is amended to read as follows:

"§440-36 Revocation; suspension; fine. (a) In addition to any other actions authorized by law, the commission shall have the power to revoke or suspend the license of any individual or club licensed under any of the classifications designated in this chapter, or fine the licensee, or both, for any cause authorized by law, including but not limited to the following:

(b) The manager and second may be held responsible for all violations of this chapter by a [boxer] contestant whom they manage, second, train, or serve as an agent for and may be subject to license revocation or suspension, or a fine, or any combination thereof, irrespective of whether any disciplinary action is taken against the [boxer.] contestant.

(c) Any individual or club in violation of this chapter shall be fined not more than $5,000 for each violation.

(d) In addition to the penalties provided in this chapter, any individual or club found in violation of any of the above may be prohibited from engaging in any [boxing] unarmed combat activities in the State for a period in conformity with that set forth in section 92-17."

SECTION 25. Chapter 440, Hawaii Revised Statutes, is amended by changing its title to read as follows:

"[Boxing Contests] Unarmed Combat"

SECTION 26. Chapter 440D, Hawaii Revised Statutes, is repealed.

SECTION 27. Chapter 440, Hawaii Revised Statutes, is amended by designating sections 440-1, 440-2, 440-5, 440-6, 440-7, 440-8, 440-8.5, 440-10, 440-12 through 440-23, 440-27, 440-28, and 440-30 through 440-37 as part I, entitled "General Provisions".

SECTION 28. The regulation of mixed martial arts contests shall not occur until rules are adopted, pursuant to chapter 91, Hawaii Revised Statutes, and section 1 of this Act, or March 1, 2007, whichever first occurs.

SECTION 29. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 30. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 31. This Act shall take effect upon its approval.