Req. No. 5216 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 59th Legislature (2023) HOUSE BILL 1387 By: Bashore AS INTRODUCED An Act relating to amusements and sports; amending 3A O.S. 2021, Sections 602, 604.3, 605, and 617, which relate to the Oklahoma State A thletic Commission; defining term; removing requirement that certain funds be disbursed to promoter; providing specifications related to the position of the assistant; modifying reimbursement percentage; providing description of certain fee ; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 3A O.S. 2021, Section 602, is amended to read as follows: Section 602. A. As used in the Oklahoma State Athletic Commission Act: 1. "Administrative support" means physical resources including but not limited to office space, equipment typically found in an office, and furnishings, and duties including but not limited to the processing of Commission-directed expenditures in regard to payroll, travel, travel reimbursement, human re sources, and management of the Req. No. 5216 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Commission's funds from appropriation or the Oklahoma State Athletic Commission Revolving Fund as directed by the Commission ; 2. "Administrator" means the administrato r of the Oklahoma State Athletic Commission; 2. 3. "Amateur combative sports event " means a combative sports event in which the parti cipants have never been licensed as professionals in any combative sport; 3. 4. "Amateur combative sports practitioner " means a person who has never received or competed for any purse or other article either for the expenses of training therefor or for parti cipating in any combative sports contest or exhibition which exceeds in monies or other things of value a sum to be det ermined by the Oklahom a State Athletic Commission; 4. 5. "Amateur mixed martial artist " means a person eighteen (18) years of age or older who has never received or competed for any purse or other article either for the expenses of training therefor or for participating in any combative sport contest or professional exhibition which exceeds i n monies or other things of value a sum to be deter mined by the Oklahoma State Athletic Commission; 5. 6. "Amateur mixed martial arts " means any form of competitive pugilistic contest in w hich the participants have never been licensed as professionals in any combative sport and blows are delivered with any p art of the hands, feet, or knees and multiple Req. No. 5216 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 combative disciplines are used including grappling. Such contests take place in a rope -enclosed ring or fenced enclosed cage and are fought in timed rounds ; 6. 7. "Applicant" means any individual, club, associat ion, corporation, partnership or trust which submits to the Oklahoma State Athletic Commission an application for a license or permi t pursuant to the Oklahoma State Athletic Commission Act; 7. 8. "Booking agent" means independent contractors who act as bookers, agents, agencies and representatives who secure engagements and contracts for combative sports particip ants; 8. 9. "Boxing" means any form of competitive pugilism or unarmed combat in which a blow is usually struck which may reasonably be expected to inf lict injury, including, but not limited to, boxing, wrestling, mixed martial arts, and kickboxing, but s hall not include the martial arts as defined by the provisions of this section; 9. 10. "Broadcast" means any audio or visual transmission sent by any means of signal within this state, whether live or taped or time delayed, and includes any replays thereo f. "Broadcast" shall not include any audio or visual transmission sent by any means of signal of any professional boxing event conducted outside this state; 10. 11. "Cable system operator " means any person who makes available or provides customers a clos ed-circuit telecast which is Req. No. 5216 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 pay-per-view, including any person who does so as a direct b roadcast satellite provider or other multichannel video service provide r; 11. 12. "Closed-circuit telecast of professional combative sporting events" means telecast rights, including telev ision, cable television, or pay-per-view telecasts, acquired by pay ing a licensing fee or by paying a contractual price by a business or individual, including, but not limited to, arenas, entertainment or meeting centers, restaurants, bars, taverns, hotels , motels, clubs, and organizations, which offers the viewing of the event to the public or to private residences. Such events shall include l ocal and state professional combative sports contests and professional exhibitions as define d in this section. "Closed-circuit telecast" means any such telecast of a professional c ombative sporting event as described herein which is not intended to be ava ilable for viewing without the payment of a fee, collected for or based upon each event viewed, for the privilege of viewing the telecast, and includes pay-per-view; 12. 13. "Club" means an incorporated or unincorporated association or body of individuals vol untarily united and acting together for some common or special purpose; 13. 14. "Combative sports" means any form of competitive pugilism or unarmed combat in which a blow is u sually struck which may reasonably be expected to inflict injury, including but not limited to boxing, wrestling, mixed martial arts, and kickboxing, Req. No. 5216 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 but shall not include the martial arts (singular) as defined by the provisions of this section; 14. 15. "Combative sports practitioner" means a person who competes or spars in a combative spor ts event and includes boxers, kickboxers, mixed martial artists and wrestlers; 15. 16. "Commission" means the Oklahoma State Athletic Commission; 16. 17. "Contest" means a combative sports event in which it is reasonable to anticipate that the participants striv e earnestly in good faith to win; 17. 18. "Corner person" means, but shall not be limited to, a trainer, a second, or any other individual who attends the participant during a match; 18. 19. "Event" means a combative sports contest or exhibition including but not limited to a match, bout, contest, show or tournament; 19. 20. "Exhibition" means a combative sports event in which the participants show or display t heir skill by sparring without necessarily striving to win; 20. 21. "Judge" means an individual other than a r eferee who shall have a vote in determining the winner o f any contest; 21. 22. "Kickboxing" means any form of competitive pugilistic professional contest or exhibition in which blows are delivered with Req. No. 5216 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the hand and any part of the foot. Such contests or exhi bitions take place in a rope -enclosed ring and are f ought in timed rounds; 22. 23. "License" means a certificate issued by the Commission to participants of sanctioned professional combative sports contests, professional exhibitions, and amateur mixed martial arts contests and is a mandatory requirement fo r participation in suc h events; 23. 24. "Manager" means an individual who controls or administers the affairs of any professional combative sports participant, including acting as a booking agent. "Manager" shall include the representative of a manager a s defined by the Commission; 24. 25. "Martial arts" means any form of karate, kung fu, t ae kwon-do, or any other form of martial or self -defense art; 25. 26. "Matchmaker" means an individual who brings together professional combative sports participants or arranges profession al combative sports contests or professional exhibitions; 26. 27. "Participant" means an individual who takes part in a combative sports event; 27. 28. "Pay-per-view telecasts of professional combative sports events" means telecasts offered by cable tele vision companies to subscribers at a cost in addition to the monthl y cable television subscription rate. Such events shall include local and state Req. No. 5216 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 professional combative sports contests and professional ex hibitions as defined in this section; 28. 29. "Person" means any individual, partnership, limited liability company, club, association, corporation, trust or other entity; 29. 30. "Physician" means an individual licensed under the laws of this state to engage in the general practice of medicine or osteopathic medicine; 30. 31. "Professional combative sports practition er" means an individual eighteen (18) years of age or older who competes for money, prizes, or purses, or who teaches, instructs, or assists in the practice of combative sports or sparring as a means of obtaining pecuniary gain; 31. 32. "Professional combative sports event" means a combative sports event in which the participants are paid a purse; 32. 33. "Professional mixed martial arts " means any form of competitive pugilistic contest in which the participants are paid a purse and blows are delivered wi th any part of the hands, feet, elbows, or knees and multiple combative disciplines are used to include grappling. Such contests take place in a rope -enclosed ring or fenced enclosed cage and are fought in timed rounds; 33. 34. "Promote" or "promoting" means producing, staging, sponsoring, organizing or otherwise holding a combative sports event whether or not the event is open to the public; Req. No. 5216 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 34. 35. "Promoter" means any individual, wheth er a resident or nonresident of Oklahoma, or club or corporation, w hether domesticated or not domesticated in Oklahoma, that produces or stages professional contests, amateur mixed martial arts contests, or professional exhibitions co nducted within this st ate and shall include any officer, director, or employees as define d by the Commission; 35. 36. "Pugilism" means combative sports or the skill or practice of fighting with the fists; 36. 37. "Purse" means the financial guarantee or any other remuneration or thing of value for which a combative sports practitioner participates in a professional combative sports event and shall include the participant 's share of any payment received for radio broadcasting, television, including cable t elevision, pay- per-view television, and closed-circuit television, and motion picture rights. "Purse" shall also include gate receipts and any other prizes; 37. 38. "Ring official" means any individual who performs an official function during the progres s of a combative sports event or amateur mixed martial arts event including but not limit ed to timekeepers, judges, referees, and attending physicians; 38. 39. "Sanctioning permit" means a permit issued by the Commission to promoters who make application for official approval Req. No. 5216 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of professional combative sports events and amateur mixed martial arts events; 39. 40. "Sparring" means to engage in a form of combative sport with jabbing or feinting movements, and the exchange of few heavy blows, such as occurs in a practice or exhibition boxing match; 40. 41. "Telecast promoter" means any promoter w ho shows or causes to be shown in this state a closed -circuit telecast of any professional combative sports event conducted in this state. "Telecast promoter" shall not include a cable sys tem operator; 41. 42. "Trainer" means an individual who assists, c oaches, or instructs any professional combative sports practitioner or amateur mixed martial artist with respect to physical conditioning, strategy, techniques, or pre paration for competiti on, professional combative sports contests, or professional exhibit ions; and 42. 43. "Vendor" means any individual, firm, organization, club, or corporation that participates in the conduct of a professional combative sports event or amateur mixed martial arts event conducted in this state by offering for sale food or merchandise, including, but not limited to, wearing apparel, alcoholic and nonalcoholic beverages, souvenirs, and programs. B. The Commission may define any term which is not defined in the Oklahoma State Athletic Commission Act. SECTION 2. AMENDATORY 3A O.S. 2021, Section 604.3, is amended to read as follows: Req. No. 5216 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 604.3 A. The Oklahoma State Athletic Commission, its administrator or any ot her employee authorize d by the Commission may order the promoter to withhold any part of a purse or other mone y belonging or payable to any combative sports practitioner or second if, in the judgment of the Commission, administrator or employee: 1. The practitioner is not comp eting honestly or to the best of the practitioner's skill and ability, or the practition er otherwise violates any rules or regul ations adopted by the Commission or any provisions of the Oklahoma Athletic Commission Act; and 2. The second violates any rule s or regulations adopted by the Commission or any provisions of the Oklahoma Athletic Co mmission Act. B. Money ordered withheld pursuant to this section shall be deposited in the Oklahoma State Athletic Commission Revolving Fund Security Account. The Com mission shall hold a hearing at i ts next regularly scheduled meeting to dispose of the m atter. If it is determined that the pra ctitioner or second is entitled to his or her share of the purse or other money, the funds shall be moved to the Oklahoma State Athletic Commission Revolving Fun d and disbursed to the practitioner or second. If it i s determined that the practitioner or second is not entitled to his or her share of the purse or other money, the funds shall be moved to the Okla homa State Athletic Commission Revolving Fund and disbursed to the promoter. Req. No. 5216 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 3. AMENDATORY 3A O.S. 2021, Section 605, is amended to read as follows: Section 605. A. The Oklahoma State Athl etic Commission may employ an administrator to oversee the organization and activities of the Commission and to ensure compliance with rules p romulgated by the Commission. The administrator shall perform such other duties as the Commission may prescribe. The salary of the administrator shall be set by the C ommission. The position of administrator shall be an unclassified position. B. The Commission may employ an assistant to keep records of all proceedings relating to professional combative sports , amateur kickboxing, and amateur mixed martial arts and to preserve all books, documents, and papers belonging to the Commission. The assistant shall perform such othe r duties as the Commission may prescribe. The salary of the as sistant shall be set by the Commission. The position of the assistant shall be an u nclassified position. The Commission may employ such other personnel as necessary, subject to statutory full-time-equivalent (FTE) limits applicable to the State Department of Health. C. The State Department of Health shall provide administrative support for the Commission, including, but not limited to, office space, equipment, and furnish ings, payroll and employee benefit administration and processing, and travel and expense reimbursement, and shall manage the Commission's funds at the direction of the Req. No. 5216 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Commission. The State Department of Health shall be entitled to reimbursement for the a ctual cost of providing said administrative support to the Commission from the Oklahoma State Athletic Commission Revolving Fund; provided that said reimbursement shall not exceed in any year ten five percent (10%) (5%) of the total revenue deposited in the fund in the preceding fiscal year received from fees, administrative fines, reimbursements, bond proceeds and sale of materials, but not including cash bonds held in trust by the Commission. Upon a written directive of expenditure from Commission funds signed by a majority of the Commission members or the Commission administrator, the State Department of Health shall process and make payment for said expenditure from Commission funds within fifteen (15) business days of receipt of the written directive from the Oklahoma State Department of Health Athletic Commission. All other Commission-directed Commission-incurred expenditures shall be processed according to State D epartment of Health policy. D. Employees of the Commission shall be considered unclassified employees of the State Department of Health only for the purpose of administrative support provided by the State Department of Hea lth as prescribed in subsection C of this section. Persons employed by the Commission shall serve at the direction and pleasure of the Commission and shall answer directly to the Commission administrator and the Commission. Req. No. 5216 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. The administrator, the assi stant, and any other employees of the Commission or any persons related to said employees within the third degree by either consanguinity or affinity shall be prohibited from promoting, sponsoring, or having any pecuniary interest in any professional combative sports event, amateur kickboxing event, or amateur mixed martial arts event regulated by the C ommission with the exception of medical p ersonnel. SECTION 4. AMENDATORY 3A O.S. 2021, S ection 617, is amended to read as follows : Section 617. A. Except as otherwise provided in the Oklahoma State Athletic Commission Act, in addition to the payment of any other fees and monies due pursuant to the Oklahoma State A thletic Commission Act and the rules promulgated by the Oklahoma State Athletic Commission, an assessme nt equal to five percent (5%) of the total gross receipts of any profession al combative sports event, amateur mixed martial arts event or amateur kickbox ing event conducted in this state, exclusive of any federal tax or tax impos ed by any political subdivi sion of this state, shall be hereby levied and shall be remitted by every p romoter and vendor to the Oklahoma State Athletic Commission. B. The assessment established in subsection A of this section shall not exceed Thirty -five Thousand Dollars ($35,000.0 0). C. Promoters of professional boxing events, professional mixed martial arts events, amateur mixed martial arts events and amateur Req. No. 5216 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 kickboxing events shall pay the greater of the five -percent assessment levied pursuant to subs ection A of this section or Four Hundred Fifty Dollars ($450.00) to the Commission. D. Promoters of professional wrestling events shall pay the greater of the five-percent assessment levied pursuant to subsection A of this section or Eighty Dollars ($80.0 0) to the Commission. E. For the purpose of this section, total gross receipts of every promoter shall include: 1. The face value of all tickets sold; and 2. Proceeds from a ven dor, or the promoter 's gross price charged for the sale of food, alcoholic a nd nonalcoholic beverages, or merchandise, including, but not limited to, wearing apparel, souvenirs and programs. F. For professional combative sports events , amateur mixed martial arts events or, and amateur kickboxing events at which admission tickets are not sold by the promoter, the promoter shall remit an assessment equal to five percent (5%) of the revenues received by the promot er for the event, historically known as a site fee. G. For the purpose of this section, total gross receipts of every vendor shall include the gross price charged for the sale of food, alcoholic and nonalcoholic beverages, and merchandise including, but not limited to, wearing apparel, souv enirs, and programs, excluding that portion paid to any promoter. Req. No. 5216 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 H. Payment of the a ssessment on gross receipts , unless otherwise specified, shall be due within five (5) business days after the holding of the professio nal combative sports event , amateur mixed martial arts event or amateur kickboxing event and shall be accompanied by a re port in such form as shall b e prescribed by the Oklahoma State Athletic Commission. I. A promoter shall not issue complimentary ticket s for more than ten percent (10%) o f the seats for any event. The promoter shall be responsible to pay the five -percent assessment levied pursuant to subsection A of this section on total receipts as prescribed in this sec tion for any complimentary ticket s in excess of ten percent (10%). All complimentary tickets must clearly indicate on the ticket that it is a complimenta ry ticket and state the value of the complimentary ticket. The face value of a complimentary ticket s hall be equal to like tickets sol d in that particular section of the venue. The complimentary tickets that are exempt from the five -percent assessment le vied pursuant to subsection A of this section shall be those tickets with the lowest face value. J. Complimentary tickets shall not be given to a sponsor, elected official, person or any entity that gives the promoter of any event anything of value, inclu ding but not limited to mone y, in- kind goods or services, or advertising. Req. No. 5216 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 K. The first payment of the assessment on gross income recei ved from the sale of motion picture rights shall be due at the end of the month after the date of the sale of the motion picture rights, and further payments shall be due every thirty (30) days thereafter, during the presentation of the picture, and shall be accompanied by a gross receipts report in such form as shall be prescribed by the Oklahoma State Athletic Commission. L. Except as otherwise prov ided in the Oklahoma State Athletic Commission Act, in addition to the pay ment of any other fees and monies due pursuant to the Oklahoma State Athletic Commission Act and the rules promulgated by the Oklahoma State Athletic Comm ission, an assessment in an amount of five percent (5%) of the total gross receipts of every telecast promoter shall be levied. Total gross receipts shall include the gr oss price charged for the sale, lease, or other use of broadcasting, including, but no t limited to, radio, television, including cable television, pay-per-view television, and closed-circuit television, or motion picture rights of combative sports or amateur mixed martial arts contests, events, or exhibitions conducted within this state, wi thout any deductions for commissions, brokerage fees, distribution fees, advertising, or other expenses or charges. M. 1. In the case of facilities at or through which the closed-circuit telecast is shown other than a cable system operator's pay-per-view facilities, the telecast pr omoter shall, Req. No. 5216 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 within eight (8) days after the telecast, inclusive of maili ng time, file with the Commission a written report detailing the nam e, address, telephone number, contact person 's name, and the details of the payment arrangement for the right to r eceive the telecast for each facility to which the broadcast was transmitt ed. 2. The report shall be accom panied by the assessment payment required under subsection L of this section, excluding any federal, state or local taxes . 3. The Commission may req uire the owner or operator of the facility where the telecast is being sho wn to file a report containing information regarding the amount paid to the telecast promoter for the right to broadcast the telecast, the quality of the audio and video signal, and any other information the Commission deems appropriate. N. 1. In the case of a cable system operator 's pay-per-view facilities at or through which a closed-circuit telecast was shown within the state, the telecast promoter sha ll, within thirty (30) days following receipt of the notice of the assessment from the Commission, cause to be filed with the Commissio n the assessment required pursuant to subsection L of this section, excluding any federal, state, or local taxes. 2. The cable system operator shall withhold from the proceeds due to the telecast promoter the assessment pa yment required pursuant to subsection L of this section and remit th e assessment to Req. No. 5216 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the Commission on behalf of the telecast promoter. The cable system operator shall not be liable for the remittance of the assessment fee required pursuant to subsection L of this section from any proceeds due to the cable system operator from its pay-per-view events. 3. The Commission shall require the cable system operat or to file reports containin g information regarding the number of orders sold and the price charged fo r orders and any other informatio n the Commission deems appropriate. 4. Cable system operators shall not be liable to the Commission for the assessment p ayment required under subsec tion L of this section. Nothing in this section shall be deemed to preven t a cable system operator from bi lling its customer for the assessme nt payment. 5. The Commission shall, upon request, provide the telecast promoter with a report detailing the numb er of orders and the assessment payment due. O. Any promoter who willfull y makes a false and fraudulent report under this section is guilty o f perjury and, upon conviction, is subject to punishment as provided by law. This pen alty shall be in addition to any other penalties imposed in this section. P. Gross receipts reports s igned under oath shall also inclu de: 1. The name of the promoter; Req. No. 5216 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The professional combative sports event , amateur mixed martial arts event or amateu r kickboxing event sanctioni ng permit number; 3. The promoter's business address and any license or p ermit number required of such pro moter by law; 4. Gross receipts a s specified by this section, during the period specified by this section; and 5. Such further information as the O klahoma State Athletic Commission may require to enable it to compute corr ectly and collect the assessment levied pursuant to this section. Q. In addition to the information required on reports, the Oklahoma State Athletic Comm ission may request, and the promoter shall furnish, any information deemed necessary for a correct computation of the assessment levied pursuant to this section. R. All levies pursuant to this section shall be collected by the Commission and shall be plac ed to the credit of the Okla homa State Athletic Commission Revolving Fund. S. The monies collected fr om the assessment levied pursuant to the provisions of this section shall be in addition to all other revenues and funds received by the Oklahoma State At hletic Commission. T. The promoter shall compute and pay to the Oklahoma State Athletic Commission th e required assessment due. If th e payment of the assessment is not postmarked or delivered to the Oklahoma State Req. No. 5216 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Athletic Commission as specified in subs ections H through L of this section, whichever is appropriate, the assessment shall be delinquent from such date. U. It shall be the d uty of every promoter required to make a gross receipts report and pay any assessment pursuant to the provisions of this section to keep and preserve suitable records and documents which may be necessary to determine the am ount of assessment due as will su bstantiate and prove the accuracy of such reports. All such records shall be preserved for a period of three (3) years, unless the Oklahoma State At hletic Commission, in writing, has authorized their destruction or disposa l at an earlier date, and shall be open to examination at any time by the Oklahoma State Athletic Commission or by any of its authorized employees. SECTION 5. This act shall become effective November 1, 2023. 59-1-5216 CMA 12/06/22