SECTIONS 18880-18887 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 18880-18887

18880. (a) The Legislature finds and declares all of the following:
(1) That professional athletes licensed under this chapter, as a
group, for many reasons, do not retain their earnings, and are often
injured or destitute, or both, and unable to take proper care of
themselves, whether financially or otherwise, and that the enactment
of this article is to serve a public purpose by making provisions for
a needy group to insure a modicum of financial security for
professional athletes.
(2) Athletes licensed under this chapter may suffer extraordinary
disabilities in the normal course of their trade. These may include
acute and chronic traumatic brain injuries, resulting from multiple
concussions as well as from repeated exposure to a large number of
subconcussive punches, eye injuries, including retinal tears, holes,
and detachments, and other neurological impairments.
(3) The pension plan of the commission is part of the state's
health and safety regulatory scheme, designed to protect boxers
licensed under this chapter from the health-related hazards of their
trade. The pension plan addresses those health and safety needs,
recognizing the disability and health maintenance expenses those
needs may require.
(4) The regulatory system of California is interrelated with the
conduct of the trade in every jurisdiction. Athletes licensed under
this chapter participate in contests in other states and many
athletes who are based in those other jurisdictions may participate
in California on a single-event basis.
(5) The outcomes and natures of fights in other jurisdictions are
relevant to California regulatory jurisdiction and are routinely
monitored for health and safety reasons, so that, for example, a
knockout of an athlete licensed under this chapter in another
jurisdiction is paid appropriate heed with respect to establishing a
waiting period before that athlete may commence fighting in
California.
(6) The monitoring of other jurisdictions is an integral part of
the health and safety of California athletes licensed under this
chapter due to the interstate nature of the trade, and therefore the
regulatory scheme for contests and athletes under this chapter should
reflect this accordingly.
(b) The provisions of this article pertain only to professional
boxers licensed under this chapter.

18881. (a) The commission shall, consistent with the purposes of
this article, establish a pension plan for professional boxers who
engage in boxing contests in this state.
(b) The commission shall, consistent with the purposes of this
article, establish the method by which the pension plan will be
financed, including those who shall contribute to the financing of
the pension plan. The method of financing the pension plan may
include, but is not limited to, assessments on tickets and
contributions by boxers, managers, promoters, or any one or more of
these persons, in an amount sufficient to finance the pension plan.
For purposes of this section, the term "sufficient" means that the
annual contributions shall be calculated to achieve no less than the
average level of annual aggregate pension plan contributions from all
sources for the period from July 1, 1981, through December 31, 1994,
and adjusted thereafter to reflect changes in the Consumer Price
Index for California as set forth by the Bureau of Labor Statistics.
(c) Any pension plan established by the commission shall be
actuarially sound.

18882. (a) At the time of payment of the fee required by Section
18824, a promoter shall pay to the commission all amounts scheduled
for contribution to the pension plan. If the commission, in its
discretion, requires pursuant to Section 18881, that contributions to
the pension plan be made by the boxer and his or her manager, those
contributions shall be made at the time and in the manner prescribed
by the commission.
(b) All contributions to finance the pension plan shall be
deposited in the State Treasury and credited to the Boxers' Pension
Fund, which is hereby created. Notwithstanding the provisions of
Section 13340 of the Government Code, all moneys in the Boxers'
Pension Fund are hereby continuously appropriated to be used
exclusively for the purposes and administration of the pension plan.
(c) The Boxers' Pension Fund is a retirement fund, and no moneys
within it shall be deposited or transferred to the General Fund.
(d) The commission has exclusive control of all funds in the
Boxers' Pension Fund. No transfer or disbursement in any amount from
this fund shall be made except upon the authorization of the
commission and for the purpose and administration of the pension
plan.
(e) Except as otherwise provided in this subdivision, the
commission or its designee shall invest the money contained in the
Boxers' Pension Fund according to the same standard of care as
provided in Section 16040 of the Probate Code. The commission has
exclusive control over the investment of all moneys in the Boxers'
Pension Fund. Except as otherwise prohibited or restricted by law,
the commission may invest the moneys in the fund through the
purchase, holding, or sale of any investment, financial instrument,
or financial transaction that the commission in its informed opinion
determines is prudent.
(f) The administrative costs associated with investing, managing,
and distributing the Boxers' Pension Fund shall be limited to no more
than 20 percent of the average annual contribution made to the fund
in the previous two years, not including any investment income
derived from the corpus of the fund. Diligence shall be exercised by
administrators in order to lower the fund's expense ratio as far
below 20 percent as feasible and appropriate. The commission shall
report to the Joint Committee on Boards, Commissions, and Consumer
Protection on the impact of this provision during the next regularly
scheduled sunset review after January 1, 2007.

18884. (a) A promoter may, but is not required to, add to the price
of each ticket sold for a professional boxing contest, an amount
specifically designated on the ticket for contribution as a donation,
either or both, to the pension plan established pursuant to Section
18881. The additional amount shall not be subject to the admissions
tax required by Section 18824 or any other deductions. Nothing in
this section shall authorize the addition of such amounts to less
than all the tickets sold for the professional boxing contest
involved. The promoter shall pay additional contributions collected
in accordance with Section 18881.
(b) Any additional contributions received pursuant to this section
shall not be considered to offset any of the contributions required
by the commission under Section 18881.

18887. In addition to any other form in which retirement benefits
may be distributed under the pension plan, the commission may, in its
discretion, award to a covered boxer a medical early retirement
benefit in the amount contained in the covered boxers' pension plan
account at the time the commission makes this award and in the manner
provided in the regulations governing the boxers' pension plan. This
benefit shall be in lieu of a pension.