[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1832 Enrolled Bill (ENR)]
H.R.1832
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
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,

51082f9d9ad065a75ec0b5f91d1e835ab3445a52868168acec431a121574677d

This Act may be cited as the ``Muhammad Ali Boxing Reform Act''.

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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.

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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.

bea7bf3418507c0c86d146073d4fbbc4547ba2e79d593e6331e072dbc3016051

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 (ABC)
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.
``(c) Protection from Coercive Contracts with Broadcasters.--
Subsection (a) of this section applies to any contract between a
commercial broadcaster and a boxer, or granting any rights with respect
to that boxer, involving a broadcast in or affecting interstate
commerce, regardless of the broadcast medium. For the purpose of this
subsection, any reference in subsection (a)(1)(B) to `promoter' shall
be considered a reference to `commercial broadcaster'.
``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) Federal trade commission 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) Federal trade commission 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.''.

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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.''.

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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.''.

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(a) Definitions.--Section 2(a) of the Professional Boxing Safety
Act of 1996 (15 U.S.C. 6301(a)) is amended--
(1) in paragraph (9) by inserting after ``match.'' the
following: ``The term `promoter' does not include a hotel, casino,
resort, or other commercial establishment hosting or sponsoring a
professional boxing match unless--
``(A) the hotel, casino, resort, or other commercial
establishment is primarily responsible for organizing,
promoting, and producing the match; and
``(B) there is no other person primarily responsible for
organizing, promoting, and producing the match.'';
(2) in paragraph (10) by striking the period at the end and
inserting ``, including the Virgin Islands.''; and
(3) 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.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

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Muhammad Ali Boxing Reform Act — HR. 1832

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