HOUSE BILL No. 4220

February 18, 2015, Introduced by Reps. Santana, Kosowski and Kivela and referred to the Committee on Regulatory Reform.

 

     A bill to amend 2004 PA 403, entitled

 

"Michigan unarmed combat regulatory act,"

 

by amending the title and sections 10, 11, 12, 22, 30, 32, 33, 35,

 

40, 41, 42, 43, 44, 46, 47, 48, 50, 52, 61, and 61a (MCL 338.3610,

 

338.3611, 338.3612, 338.3622, 338.3630, 338.3632, 338.3633,

 

338.3635, 338.3640, 338.3641, 338.3642, 338.3643, 338.3644,

 

338.3646, 338.3647, 338.3648, 338.3650, 338.3652, 338.3661, and

 

338.3661a), sections 10, 11, 12, 32, 35, 47, and 48 as amended by

 

2007 PA 196, section 22 as amended by 2010 PA 100, and section 33

 

as amended and section 61a as added by 2012 PA 546, by amending the

 

headings for chapters 1 to 6, and by adding sections 2, 71, 72, 73,

 

74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, and 87 and

 


headings for articles 1, 2, and 3; and to repeal acts and parts of

 

acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to regulate certain forms of boxing; to create certain

 

commissions and to provide certain powers and duties for the

 

conduct of certain boxing, mixed martial arts, and other unarmed

 

combat events, contests, and exhibitions; to create the Michigan

 

unarmed combat commission and establish its powers and duties; to

 

provide for the powers and duties of certain state agencies and

 

departments; to license and regulate certain promoters,

 

contestants, and other persons engaged in boxing , certain persons

 

connected to or the business of boxing , and certain persons

 

conducting certain contests and exhibitions; and mixed martial arts

 

or the business of mixed martial arts; to confer immunity under

 

certain circumstances; to provide for the conducting of certain

 

tests; to assess certain fees; to create certain funds; to

 

promulgate the Michigan unarmed combat fund and provide for the use

 

of money in the fund; to provide for the promulgation of rules; to

 

provide for penalties and remedies; and to repeal acts and parts of

 

acts.

 

                              ARTICLE 1

 

     Sec. 2. As used in this act:

 

     (a) "Commission" means the Michigan unarmed combat commission

 

created in section 20.

 

     (b) "Department" means the department of licensing and

 

regulatory affairs.

 


     (c) "Director" means the director of the department or his or

 

her designee.

 

     (d) "Mixed martial arts" means the general term that describes

 

the convergence of techniques from a variety of combative sports

 

disciplines. The term includes boxing, wrestling, judo, jujitsu,

 

kickboxing, and other combinations of techniques from different

 

disciplines of the martial arts.

 

     (e) "Professional" means an individual who is competing or has

 

competed in the past for a prize in any sport regulated under this

 

act.

 

     (f) "Rule" means a rule promulgated under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

                              ARTICLE 2

 

                           CHAPTER PART 1

 

     Sec. 10. As used in this act:article:

 

     (a) "Amateur" means a person an individual who is not

 

competing and has never competed for a money prize or who is not

 

competing and has not competed with or against a professional for a

 

prize. For a boxing contest, amateur is a person who is required to

 

be registered by USA boxing.Boxing.

 

     (b) "Commission" means the Michigan unarmed combat commission

 

created in section 20.

 

     (b) (c) "Complainant" means a person who has filed that files

 

a complaint with the department alleging that a person has violated

 

this act article or a rule promulgated or an order issued under

 

this act. article. If a complaint is made by the department, the

 

director shall designate the term means 1 or more employees of the

 


department designated by the director to act as the complainant.

 

     (d) "Department" means the department of labor and economic

 

growth.

 

     (e) "Director" means the director of the department or his or

 

her designee.

 

     (c) (f) "Employee of the department" means an individual who

 

is employed by the department or a person that is under contract to

 

the department whose duty it is to enforce the provisions of this

 

act article or rules promulgated or orders issued under this

 

act.article.

 

     (d) (g) "Fund" means the Michigan unarmed combat fund created

 

in section 22.

 

     (e) (h) "Good moral character" means good moral character as

 

determined and defined in 1974 PA 381, MCL 338.41 to 338.47.

 

     (i) "Mixed martial arts" means unarmed combat involving the

 

use of a combination of techniques from different disciplines of

 

the martial arts and includes grappling, kicking, jujitsu, and

 

striking, subject to limitations contained in this act and rules

 

promulgated under this act.

 

     Sec. 11. As used in this act:article:

 

     (a) "Physician" means that term as defined in section 17001 or

 

17501 of the public health code, 1978 PA 368, MCL 333.17001 and

 

333.17501.

 

     (b) "Prize" means something offered or given of present or

 

future value to a participant in a contest, exhibition, or match.

 

     (c) "Professional" means a person who is competing or has

 

competed in boxing or mixed martial arts for a money prize.

 


     (c) (d) "Promoter" means any a person who that produces or

 

stages any professional contest or exhibition of boxing or mixed

 

martial arts, or both, but does not include the venue where the

 

exhibition or contest is being held unless the venue contracts with

 

the individual promoter to be a co-promoter.copromoter.

 

     (d) (e) "Purse" means the financial guarantee or any other

 

remuneration for which professionals are participating in a contest

 

or exhibition and includes the professional's share of any payment

 

received for radio, television, or motion picture rights.

 

     (e) (f) "Respondent" means a licensee or other person against

 

whom which a complaint has been is filed who may be a person who is

 

or is required to be licensed under this act.article.

 

     (g) "Rule" means a rule promulgated under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (f) (h) "School", "college", or "university" does not include

 

an institution formed or operated principally to provide

 

instruction in boxing and other sports.

 

     Sec. 12. This act article does not apply to any of the

 

following:

 

     (a) Professional or amateur wrestling.

 

     (b) Amateur martial arts sports or activities.

 

     (c) Contests or exhibitions conducted by or participated in

 

exclusively by an agency of the United States government or by a

 

school, college, or university or an organization composed

 

exclusively of those entities if each participant is an amateur.

 

     (d) Amateur boxing regulated by the amateur sports act of

 

1978, 36 USC 371.

 


     (e) Boxing elimination contests regulated by section 50.

 

     (f) Amateur mixed martial arts.

 

                           CHAPTER PART 2

 

     Sec. 22. (1) The commission shall elect 1 of its members as

 

the chair of the commission. The commission may purchase and use a

 

seal. The director may promulgate rules for the administration of

 

this act article but only after first consulting with the

 

commission. The commission may request the department to promulgate

 

a rule under section 38 of the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.238. Notwithstanding the time limit

 

provided for in section 38 of the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.238, the department shall respond in

 

writing to any request for rule promulgating by the commission

 

within 30 calendar days after a request. The response shall include

 

a reason and explanation for acceptance or denial of the request.

 

     (2) The department shall promulgate rules to include all of

 

the following:

 

     (a) Number and qualifications of ring officials required at

 

any exhibition or contest.

 

     (b) Powers, duties, and compensation of ring officials.

 

     (c) Qualifications of licensees.

 

     (d) License fees not otherwise provided under this

 

act.article.

 

     (e) Any necessary standards designed to accommodate federally

 

imposed mandates that do not directly conflict with this

 

act.article.

 

     (f) A list of enhancers and prohibited substances, the

 


presence of which in a contestant is grounds for suspension or

 

revocation of the license or other sanctions.

 

     (3) An unarmed combat fund is created as a revolving fund in

 

the state treasury and administered by the director. The money in

 

the fund is to be only used for the costs of administration and

 

enforcement of this act article and for any costs associated with

 

the administration of this act, article, including, but not limited

 

to, reimbursing the department of attorney general for the

 

reasonable costs of services provided to the department under this

 

act. article. Money remaining in the fund at the end of the fiscal

 

year and interest earned shall be carried forward into the next

 

fiscal year and shall not revert to the general fund. The

 

department shall deposit into the fund all money received from the

 

regulatory and enforcement fee, license fees, event fees, and

 

administrative fines imposed under this act, article, and from any

 

other source.

 

     (4) Annually, the legislature shall fix the per diem

 

compensation of the members of the commission. Travel or other

 

expenses incurred by a commission member in the performance of an

 

official function shall be payable by the department under the

 

standardized travel regulations of the department of management and

 

budget.

 

     (5) The commission may affiliate with any other state or

 

national boxing or mixed martial arts commission or athletic

 

authority. The commission, upon approval of the director, may enter

 

into any appropriate reciprocity agreements.

 

     (6) The commission and department are vested with management,

 


control, and jurisdiction over all professional boxing and

 

professional mixed martial arts contests or exhibitions to be

 

conducted, held, or given within the in this state. of Michigan.

 

Except for any contests or exhibitions exempt from this act,

 

article, a contest or exhibition shall not be conducted, held, or

 

given within in this state except in compliance with this

 

act.article.

 

     (7) The requirements and standards contained in standards

 

adopted by the New Jersey state athletic control board, State

 

Athletic Control Board, N.J.A.C. 13:46-24A and 24B, as they may

 

exist on February 20, 2005, entitled the mixed martial arts unified

 

rules, dated 2000, except for the license fees described in those

 

rules, are incorporated by reference. Any requirements and

 

standards incorporated by reference in this subsection that are in

 

conflict with the requirements and standards of this act article

 

are considered superseded by the provisions of this act. article.

 

The director, in consultation with the commission, may promulgate

 

rules consistent with section 35 to alter, supplement, update, or

 

amend the standards incorporated by reference under this

 

subsection. Any references to the commission in the mixed martial

 

arts unified rules shall mean the department. The standards

 

contained in 13:46-24B.3 are not incorporated by reference.

 

                           CHAPTER PART 3

 

     Sec. 30. (1) A person shall not engage in or attempt to engage

 

in an activity regulated under this act article unless the person

 

possesses a license issued by the department or unless the person

 

is exempt from licensure under this act.article.

 


     (2) A person who that violates subsection (1) is guilty of a

 

misdemeanor punishable by a fine of not more than $500.00 or

 

imprisonment for not more than 90 days, or both.

 

     (3) A person who that violates subsection (1) a second or any

 

subsequent time is guilty of a misdemeanor punishable by a fine of

 

not more than $1,000.00 or imprisonment for not more than 1 year,

 

or both.

 

     (4) Notwithstanding the existence and pursuit of any other

 

remedy, an affected person may maintain injunctive action in a

 

court of competent jurisdiction to restrain or prevent a person

 

from violating subsection (1). If successful in obtaining

 

injunctive relief, the affected person shall be is entitled to

 

actual costs and attorney fees. As used in this subsection,

 

"affected person" means a person that is directly affected by the

 

actions of a person suspected of violating subsection (1) and

 

includes, but is not limited to, the commission, the department, or

 

a member of the general public.

 

     (5) An investigation may be conducted by the department to

 

enforce this section. A person who that violates this section is

 

subject to the strictures prescribed in this section and section

 

43.

 

     (6) The remedies under this section are independent and

 

cumulative. The use of 1 remedy by a person shall does not bar the

 

use of other lawful remedies by that person or the use of a lawful

 

remedy by another person.

 

     Sec. 32. A contest or exhibition regulated by this act under

 

this article and not exempt from this act article shall be held or

 


conducted in this state only under a promoter's license issued by

 

the department as provided for in under section 33.

 

     Sec. 33. (1) An application for a promoter's license must be

 

in writing and shall include the legal name, street address, and

 

telephone number of the applicant.

 

     (2) An applicant for a promoter's license must demonstrate

 

good moral character. If an applicant for a promoter's license is

 

denied a license due to lack of good moral character, the applicant

 

may petition the commission for a review of the decision under

 

section 46.

 

     (3) Before the department grants an approval for a contest or

 

exhibition, the promoter must file a bond with the department in an

 

amount fixed by the department but not less than $20,000.00 or more

 

than $50,000.00. The applicant shall execute the bond as principal,

 

and the bond shall be issued by a corporation qualified under the

 

laws of this state as surety, payable to the state of Michigan, and

 

conditioned on the faithful performance by the applicant of the

 

provisions of this act. article. The bond must be purchased at

 

least 5 days before the contest or exhibition and may be used to

 

satisfy payment for the professionals, costs to the department for

 

ring officials and physicians, and drug tests.

 

     (4) A promoter must apply for and obtain an annual license

 

from the department in order to present a program of contests or

 

exhibitions regulated under this act. article. The annual license

 

fee is $250.00. The department shall request, and the applicant

 

shall provide, any information that the department determines is

 

necessary to ascertain the financial stability of the applicant.

 


Section 61a applies to any information provided by an applicant

 

under this subsection.

 

     (5) A boxing promoter shall pay an event fee of $125.00. A

 

mixed martial arts promoter shall pay an event fee of $125.00.

 

     (6) Each promoter shall pay a regulatory and enforcement fee

 

to assure the integrity of the sports of boxing and mixed martial

 

arts, the public interest, and the welfare and safety of the

 

professionals. The amount of the fee is 3% of the total gross

 

receipts from the sale, lease, or other exploitation of

 

broadcasting, television, and motion picture rights for an event,

 

or $25,000.00, whichever is less, for a boxing or mixed martial

 

arts event to which any of the following apply:

 

     (a) If the event is a boxing event, the event is located in a

 

venue with a seating capacity of more than 5,000.

 

     (b) The promoter proposes to televise or broadcast the event

 

over any medium for viewing by spectators who are not present in

 

the venue.

 

     (c) The event is designed to promote professional boxing or

 

mixed martial arts contests in this state.

 

     (7) For purposes of subsection (6), at least 10 days before

 

the boxing or mixed martial arts event, the promoter shall submit

 

the contract subject to the regulatory and enforcement fee to the

 

department, stating the amount of the probable total gross receipts

 

from the sale, lease, or other exploitation of broadcasting,

 

television, and motion picture rights for the event. However, this

 

subsection does not apply to a promoter that agrees to pay a

 

regulatory and enforcement fee for the event in the amount of

 


$25,000.00, and the department receives that payment from the

 

promoter at least 1 business day before the event.

 

     (8) The department shall deposit the money received from the

 

proceeds of the regulatory and enforcement fee into the fund

 

created in section 22 and use those proceeds for the purposes

 

described in that section.

 

     (9) Within 1 business day before a boxing or mixed martial

 

arts contest or exhibition, the promoter shall deliver to the

 

department an executed copy of all of the executed contracts

 

between the promoter and the professionals participating in that

 

contest or exhibition. The copies of the contracts are exempt from

 

disclosure under the freedom of information act, 1976 PA 442, MCL

 

15.231 to 15.246, except that the department may disclose

 

statistical information on the number, types, and amounts of

 

contracts if information regarding identifiable individuals or

 

categories is not revealed.

 

     (10) The commission or department may perform drug testing on

 

a professional before or after a contest or exhibition to detect

 

the presence of alcohol, stimulants, or drugs, including, but not

 

limited to, performance enhancing drugs. A professional shall

 

submit to a urinalysis or chemical test before or after a contest

 

or exhibition if the commission, the department, or a designated

 

representative of the commission or department directs him or her

 

to do so. If a professional fails or refuses to submit to a

 

urinalysis or chemical test under this subsection, or the results

 

of the urinalysis or chemical test confirm or demonstrate the

 

professional has violated this act, article, he or she is subject

 


to disciplinary action by the commission under this act. article.

 

In addition to any other disciplinary action by the commission, if

 

the professional won the contest or exhibition or the contest or

 

exhibition was a draw, the commission may change the result of that

 

contest or exhibition to a no decision. The department may

 

promulgate rules to define the terms "stimulants" or "performance

 

enhancing drugs."

 

     Sec. 35. The director, in consultation with the commission,

 

shall promulgate rules to set standards for boxing and mixed

 

martial arts exhibitions and participants and to provide for

 

license fees for all participants in the activities regulated by

 

this act article not otherwise provided for in this act, article,

 

including, but not limited to, license fees for a physician,

 

physician's assistant, nurse practitioner, referee, judge,

 

matchmaker, timekeeper, professional, contestant, or manager or a

 

second of those persons.

 

                           CHAPTER PART 4

 

     Sec. 40. A complaint which alleges that a person has violated

 

this act article or a rule promulgated or an order issued under

 

this act article shall be lodged with submitted to the department.

 

The department of attorney general, the department, the commission,

 

or any other person may file a complaint.

 

     Sec. 41. (1) The department, upon receipt of when it receives

 

a complaint, immediately shall begin its investigation of the

 

allegations of the complaint and shall open a correspondence file.

 

The department shall make a written acknowledgment of the complaint

 

within 15 days after receipt of the complaint to the person making

 


the complaint. If the complaint is made by the department, the

 

director shall designate 1 or more employees of the department to

 

act as the person making the complaint.

 

     (2) The department shall conduct the investigation required

 

under subsection (1). In furtherance of that investigation, the

 

department may request that the attorney general petition a court

 

of competent jurisdiction to issue a subpoena requiring a person to

 

appear before the department and be examined with reference to a

 

matter within the scope of the investigation and to produce books,

 

papers, or documents pertaining to the investigation.

 

     (3) The investigative unit of the department, within 30 days

 

after the department receives the complaint, shall report to the

 

director on the status of the investigation. If, for good cause

 

shown, an investigation cannot be completed within 30 days, the

 

director may extend the time in which a report may be filed.

 

     (4) If the report of the investigative unit of the department

 

does not disclose a violation of this act article or a rule

 

promulgated or an order issued under this act, article, the

 

complaint shall be closed by the department. The reasons for

 

closing the complaint shall be forwarded to the respondent and

 

complainant, who then may provide additional information to reopen

 

the complaint.

 

     (5) If the report of the investigative unit made pursuant to

 

subsection (3) discloses evidence of a violation of this act

 

article or a rule promulgated or an order issued under this act,

 

article, the department or the department of attorney general shall

 

prepare the appropriate action against the respondent which may be

 


any of the following:

 

     (a) A formal complaint.

 

     (b) A cease and desist order.

 

     (c) A notice of summary suspension subject to sections 42 and

 

48(7).

 

     (6) At any time during its investigation or after the issuance

 

of a formal complaint, the department may bring together the

 

complainant and the respondent for an informal conference. At the

 

informal conference, the department shall attempt to resolve issues

 

raised in the complaint and may attempt to aid the parties in

 

reaching a formal settlement or stipulation.

 

     Sec. 42. (1) After an investigation has been is conducted, the

 

department may issue an order summarily suspending a license based

 

on an affidavit by a person familiar with the facts set forth in

 

the affidavit, or, if appropriate, based upon on an affidavit on

 

information and belief, that an imminent threat to the integrity of

 

the sport, the public interest, and the welfare and safety of a

 

professional exists. Thereafter, After an order is issued, the

 

proceedings described in this chapter part shall be promptly

 

commenced and decided.

 

     (2) A person whose license has been is summarily suspended

 

under this section may petition the department to dissolve the

 

order. Upon receiving a petition, the department immediately shall

 

schedule a hearing to decide whether to grant or deny the requested

 

relief.

 

     (3) An administrative law hearings examiner shall grant the

 

requested relief dissolving the summary suspension order, unless

 


sufficient evidence is presented that an imminent threat to the

 

integrity of the sport, the public interest, and the welfare and

 

safety of a professional exists that requires emergency action and

 

continuation of the department's summary suspension order.

 

     (4) The record created at the hearing to dissolve a summary

 

suspension order shall become part of the record on the complaint

 

at a subsequent hearing in a contested case.

 

     (5) A summary suspension of a professional for refusal or

 

failure to submit to a drug test or for the presence of controlled

 

substances, enhancers, prohibited drugs, or other prohibited

 

substances, as described in section 48(7), 48(6), shall proceed

 

under this section.

 

     Sec. 43. (1) After an investigation has been conducted, the

 

director may order a person to cease and desist from a violation of

 

this act article or a rule promulgated or an order issued under

 

this act.article.

 

     (2) A person ordered to cease and desist may request a hearing

 

before the department if a written request for a hearing is filed

 

within 30 days after the effective date of the order.

 

     (3) Upon a violation of If a person violates a cease and

 

desist order issued under this act, article, the department of

 

attorney general may apply to a court of competent jurisdiction to

 

restrain and enjoin, temporarily or permanently, or both, a person

 

from further violating a cease and desist order.

 

     Sec. 44. (1) A summary suspension order, cease and desist

 

order, or injunctive relief issued or granted in relation to a

 

license is in addition to and not in place of an informal

 


conference; criminal prosecution; or proceeding to deny, revoke, or

 

suspend a license; or any other action authorized by this

 

act.article.

 

     (2) After an investigation has been is conducted and a formal

 

complaint prepared, the department shall serve the formal complaint

 

upon on the respondent and the complainant. At the same time, the

 

department shall serve the respondent with a notice describing the

 

compliance conference and hearing process and offering the

 

respondent a choice of 1 of the following opportunities:

 

     (a) An opportunity to meet with the department to negotiate a

 

settlement of the matter.

 

     (b) If the respondent is a licensee or registrant under this

 

act, article, an opportunity to demonstrate compliance prior to

 

holding before a contested case hearing is held.

 

     (c) An opportunity to proceed to a contested case hearing.

 

     (3) A respondent upon whom which service of a formal complaint

 

has been made pursuant to under this section may select, within 15

 

days after the receipt of notice, 1 of the options described in

 

subsection (2). If a respondent does not select 1 of those options

 

within the time period described in this section, then the

 

department shall proceed to a contested case hearing as described

 

in subsection (2)(c).

 

     (4) An informal conference may be attended by a member of the

 

commission, at the discretion of that the commission, and may

 

result in a settlement, consent order, waiver, default, or other

 

method of settlement agreed upon on by the parties and the

 

department. A settlement may include the revocation or suspension

 


of a license; censure; probation; restitution; or a penalty

 

provided for in section 48. The commission may reject a settlement

 

and require a contested case hearing.

 

     (5) An employee of the department may represent the department

 

in any contested case hearing.

 

     (6) This chapter part does not prevent a person against whom

 

which a complaint has been filed from showing compliance with this

 

act article or a rule promulgated or an order promulgated or issued

 

under this act.article.

 

     (7) If an informal conference is not held or does not result

 

in a settlement of a complaint, the department shall allow the

 

respondent an administrative hearing. A hearing under this section

 

may be attended by a member of the commission.

 

     (8) The department or the department of the attorney general

 

may petition a court of competent jurisdiction to issue a subpoena

 

which shall require the person subpoenaed to appear or testify or

 

produce relevant documentary material for examination at a

 

proceeding.

 

     Sec. 46. (1) A person that is seeking a license or renewal

 

under this act article may petition the department and the

 

commission for a review if that person does not receive a license

 

or renewal.

 

     (2) A petition submitted under subsection (1) shall be in

 

writing and shall set forth the reasons the petitioner feels the

 

licensure or renewal should be issued.

 

     (3) In considering a petition submitted under subsection (1),

 

the department and the commission may administer an alternative

 


form of testing to the petitioner or conduct a personal interview

 

with the petitioner, or both.

 

     (4) The department may issue a license or renewal if, based on

 

a review of the qualifications of the person who that submitted a

 

petition under subsection (1), the department and the commission

 

determine that the person could perform the licensed activity with

 

competence.

 

     (5) Notwithstanding any other provision of this act, article,

 

if a written grievance was lodged before the effective date of this

 

act against a person licensed under an act repealed by this act,

 

the proceedings on that grievance shall be conducted in the manner

 

prescribed in the repealed act.

 

     Sec. 47. (1) The department shall initiate an action under

 

this chapter part against an applicant or take any other allowable

 

action against the license of any contestant, promoter, or other

 

participant who the department determines has done does any of the

 

following:

 

     (a) Enters into a contract for a contest or exhibition in bad

 

faith.

 

     (b) Participates in any sham or fake contest or exhibition.

 

     (c) Participates in a contest or exhibition pursuant to a

 

collusive understanding or agreement in which the contestant

 

competes or terminates the contest or exhibition in a manner that

 

is not based upon on honest competition or the honest exhibition of

 

the skill of the contestant.

 

     (d) Is determined to have failed to give his or her best

 

efforts, failed to compete honestly, or failed to give an honest

 


exhibition of his or her skills in a contest or exhibition.

 

     (e) Is determined to have performed an act or engaged in

 

conduct that is detrimental to a contest or exhibition, including,

 

but not limited to, any foul or unsportsmanlike conduct in

 

connection with a contest or exhibition.

 

     (f) Gambles on the outcome of a contest or exhibition in which

 

he or she is a contestant, promoter, matchmaker, ring official, or

 

second.

 

     (g) Assaults another licensee, commission member, or

 

department employee while not involved in or while outside the

 

normal course of a contest or exhibition.

 

     (h) Practices fraud or deceit in obtaining a license.

 

     (2) The department, in consultation with the commission, shall

 

promulgate rules to provide for both of the following:

 

     (a) The timing of drug tests for contestants.

 

     (b) Specific summary suspension procedures for contestants and

 

participants who test positive for drugs or who fail to submit to a

 

drug test , under section 48(4). The rules shall include the

 

following:

 

     (i) A procedure to allow the department to place the licensee

 

upon on the national suspension list.

 

     (ii) An expedited appeal process for the summary suspension.

 

     (iii) A relicensing procedure following summary suspension.

 

     (3) An employee of the department must be present at all

 

weigh-ins, medical examinations, contests, exhibitions, and matches

 

to ensure that this act article and rules are strictly enforced.

 

     (4) Each promoter shall furnish each member of the commission

 


present at a contest or exhibition a seat in the area immediately

 

adjacent to the contest or exhibition. An additional seat shall be

 

provided in the venue.

 

     (5) The commission chair, a commission member assigned by the

 

chair, or a department official designated by the commission chair

 

shall have final authority involving any conflict at a contest,

 

exhibition, or match and shall advise the chief inspector in charge

 

accordingly. In the absence of the chair, an assigned member, or a

 

department official designated by the commission chair, the chief

 

inspector in charge shall be is the final decision-making

 

authority.

 

     Sec. 48. (1) Upon receipt of If it receives an application for

 

reinstatement and the payment of an administrative fine prescribed

 

by the commission, the commission may reinstate a revoked license

 

or lift a suspension. If disciplinary action is taken against a

 

person under this act article that does not relate to a contest or

 

exhibition, the commission may, in lieu of suspending or revoking a

 

license, prescribe an administrative fine not to exceed $10,000.00.

 

If disciplinary action is taken against a person under this act

 

article that relates to the preparation for a contest or an

 

exhibition, the occurrence of a contest or an exhibition, or any

 

other action taken in conjunction with a contest or an exhibition,

 

the commission may prescribe an administrative fine in an amount

 

not to exceed 100% of the share of the purse to which the holder of

 

the license is entitled for the contest or exhibition or an

 

administrative fine not to exceed $100,000.00 in the case of any

 

other person. This administrative fine may be imposed in addition

 


to, or in lieu of, any other disciplinary action that is taken

 

against the person by the commission.

 

     (2) If an administrative fine is imposed under this section,

 

the commission may recover the costs of the proceeding, including

 

investigative costs and attorney fees. The department or the

 

attorney general may bring an action in a court of competent

 

jurisdiction to recover any administrative fines, investigative and

 

other allowable costs, and attorney fees. The filing of an action

 

to recover fines and costs does not bar the imposition of other

 

sanctions under this act.article.

 

     (3) An employee of the department, in consultation with any

 

commission member present, may issue an order to withhold the purse

 

for 3 business days due to a violation of this act article or a

 

rule promulgated under this act. article. During that 72-hour time

 

period, the commission may convene a special meeting to determine

 

if the action of the employee of the department was warranted. If

 

the commission determines that the action was warranted, the

 

department shall offer to hold an administrative hearing as soon as

 

practicable but within at least 7 calendar days.

 

     (4) A professional or participant in a professional contest or

 

exhibition shall submit to a postexhibition test of body fluids to

 

determine the presence of controlled substances, prohibited

 

substances, or enhancers. The department shall promulgate rules to

 

set requirements regarding preexhibition tests of body fluids to

 

determine the presence of controlled substances, prohibited

 

substances, or enhancers.

 

     (5) The promoter is responsible for the cost of the testing

 


performed under this section.

 

     (6) Either of the following is grounds for summary suspension

 

of the individual's license in the manner provided for in section

 

42:

 

     (a) A test resulting in a finding of the presence of

 

controlled substances, enhancers, or other prohibited substances as

 

determined by rule of the commission.

 

     (b) The refusal or failure of a contestant to submit to the

 

drug testing ordered by an authorized person.

 

                           CHAPTER PART 5

 

     Sec. 50. (1) Boxing elimination contests in which all of the

 

following apply are exempt from this act:article:

 

     (a) The contestants compete for prizes only in elimination

 

contests and are not also professional boxers competing in 4 or

 

more rounds of nonelimination boxing.

 

     (b) Each bout is scheduled to consist of 3 or fewer 1-minute

 

rounds, with contests conducted on no more than 2 consecutive

 

calendar days.

 

     (c) Competing contestants are prohibited from boxing for more

 

than 12 minutes on each contest day.

 

     (d) The contestants participating in the elimination contest

 

are insured by the promoter for all medical and hospital expenses

 

to be paid to the contestants to cover injuries sustained in the

 

contest.

 

     (e) A physician is in attendance at ringside and the physician

 

has authority to stop the contest for medical reasons.

 

     (f) All contestants pass a physical examination given by a

 


physician, a licensed physician's assistant, or a certified nurse

 

practitioner before the contest.

 

     (g) A preliminary breath test is administered to each

 

contestant which indicates a blood alcohol content of .02% or less.

 

     (h) The promoter conducts the elimination contest in

 

compliance with the following:

 

     (i) A contestant who has lost by a technical knockout is not

 

permitted to compete again for a period of 30 calendar days or

 

until the contestant has submitted to the promoter the results of a

 

physical examination equivalent to that required of professional

 

boxers.

 

     (ii) The ringside physician examines a contestant who has been

 

knocked out in an elimination contest or whose fight has been

 

stopped by the referee because he or she received hard blows to the

 

head that made him or her defenseless or incapable of continuing

 

immediately after the knockout or stoppage. The ringside physician

 

may recommend post-fight neurological examinations, which may

 

include computerized axial tomography (CAT) scans or magnetic

 

resonance imaging (MRI), to be performed on the contestant

 

immediately after the contestant leaves the location of the

 

contest. The promoter shall not permit the contestant to compete

 

until a physician has certified that the contestant is fit to

 

compete. If the physician recommended further neurological

 

examinations, the promoter shall not permit the contestant to

 

compete until the promoter receives copies of examination reports

 

demonstrating that the contestant is fit to compete.

 

     (iii) The promoter requires that a contestant who has sustained

 


a severe injury or knockout in an elimination contest be examined

 

by a physician. The promoter shall not permit the contestant to

 

compete until the physician has certified that the contestant has

 

fully recovered.

 

     (iv) The promoter does not permit a contestant to compete in an

 

elimination contest for a period of not less than 60 days if he or

 

she has been knocked out or has received excessive hard blows to

 

the head that required the fight to be stopped.

 

     (v) A contestant who has been knocked out twice in a period of

 

3 months or who has had excessive head blows causing a fight to be

 

stopped is not permitted by a promoter to participate in an

 

elimination contest for a period of not less than 120 days from the

 

second knockout or stoppage.

 

     (vi) A contestant who has been knocked out or had excessive

 

hard blows to the head causing a fight to be stopped 3 times

 

consecutively in a period of 12 months is not permitted by a

 

promoter to participate in an elimination contest for a period of 1

 

year from the third knockout.

 

     (vii) Before resuming competition after any of the periods of

 

rest prescribed in subparagraphs (iv), (v), and (vi), a promoter

 

requires the contestant to produce a certification by a physician

 

stating that the contestant is fit to take part in an elimination

 

contest.

 

     (2) As part of the physical examination given before the

 

boxing elimination contest, the physician, licensed physician's

 

assistant, certified nurse practitioner, or other trained person

 

shall administer a preliminary breath test in compliance with

 


standards imposed in rules promulgated by the department of state

 

police regarding equipment calibration and methods of

 

administration. The promoter shall keep a log of preliminary breath

 

test results of contestants on file at its place of business for at

 

least 3 years after the date of administration of the test. These

 

results shall be made available to law enforcement officials upon

 

request.

 

     Sec. 52. (1) A person that is seeking a license under this act

 

article as a judge or referee may be required to satisfactorily

 

pass an examination or training program acceptable to the

 

department.

 

     (2) A person that is seeking a license under this act article

 

as a judge, referee, or contestant shall pass a physical

 

examination that is performed by a licensed physician, a licensed

 

physician's assistant, or a certified nurse practitioner acceptable

 

to the department and the commission.

 

     (3) Until the expiration of 1 year after the effective date of

 

this act, the department shall issue an equivalent license without

 

an examination to a person who that is licensed in any capacity

 

under former article 8 of the occupational code, 1980 PA 299, on

 

the effective date of this act upon application on a form provided

 

by the department.

 

                           CHAPTER PART 6

 

     Sec. 61. Except as rescinded, rules promulgated under former

 

article 8 of the occupational code, 1980 PA 299, MCL 339.801 to

 

339.814, retain authorization under this act.article.

 

     Sec. 61a. A record or portion of a record, material,

 


information, or other data received, prepared, used, or retained by

 

the department or commission under this act article that includes a

 

trade secret or commercial, financial, or proprietary information

 

of a licensee or license applicant, and that the licensee or

 

applicant requests in writing be treated as confidential by the

 

department or commission, is not subject to the freedom of

 

information act, 1976 PA 442, MCL 15.231 to 15.246. As used in this

 

section, "trade secret or commercial, financial, or proprietary

 

information" means information that has not been publicly

 

disseminated or that is unavailable from other sources, the release

 

of which might cause the licensee or applicant significant

 

competitive harm.

 

                              ARTICLE 3

 

     Sec. 71. As used in this article:

 

     (a) "Amateur" means an individual mixed martial artist who is

 

not competing and has never competed in a mixed martial arts

 

contest for a prize or who is not competing and has never competed

 

with or against a professional in a mixed martial arts contest for

 

a prize.

 

     (b) "Applicant" means an individual who applies for a license

 

under this article.

 

     (c) "Contest" does not include a mixed martial arts

 

exhibition.

 

     (d) "Contestant" means an individual who competes in an

 

amateur mixed martial arts contest or event.

 

     (e) "Event" means a program of 1 or more individual amateur

 

mixed martial arts contests.

 


     (f) "Fund" means the amateur mixed martial arts fund created

 

in section 74.

 

     (g) "License" means the document issued to an individual under

 

this article that enables him or her to engage in an activity that

 

would otherwise be prohibited under this article. The term includes

 

an initial license and any renewal license issued to an individual.

 

     (h) "Medical professional" means a physician as defined in

 

section 17001 or 17501 of the public health code, 1978 PA 368, MCL

 

333.17001 and 333.17501.

 

     (i) "Mixed martial arts exhibition" means a performance or

 

demonstration of mixed martial arts that meets all of the

 

following:

 

     (i) The performance or demonstration is held at a promoter's

 

gym, dojo, or similar training facility or at a training center.

 

     (ii) Participants in the performance or demonstration do not

 

pay a fee to participate.

 

     (iii) Spectators do not pay a fee to attend the performance or

 

demonstration.

 

     (j) "Prize" means money or another form of compensation or

 

reward offered or given to a contestant. The term does not include

 

a watch, medal, article of jewelry, trophy, or ornament that is

 

suitably inscribed to show that it is given for participation in a

 

contest or event and costs $200.00 or less.

 

     (k) "Promoter" means an individual who produces or stages an

 

amateur mixed martial arts contest or event. The term does not

 

include the venue where a contest or event is held unless the venue

 

contracts with the individual promoter to be a copromoter.

 


     (l) "Proper medical clearance" means a certification by a

 

medical professional that a contestant is fit to compete in a

 

contest.

 

     (m) "Training center" means an institution formed or operated

 

principally to provide instruction in mixed martial arts.

 

     Sec. 72. This article does not apply to any of the following:

 

     (a) Amateur wrestling.

 

     (b) Amateur martial arts sports or activities held by and at a

 

public or private training center.

 

     (c) A mixed martial arts exhibition.

 

     (d) A contest or event conducted by or participated in

 

exclusively by an agency of the United States government, by a

 

school, college, or university, or by an organization composed

 

exclusively of those entities, if each contestant is an amateur.

 

     Sec. 73. (1) The commission shall establish appropriate

 

disciplinary sanctions against licensees or other individuals who

 

violate this article or rules promulgated under this article.

 

     (2) The commission shall meet as often as necessary to fulfill

 

its duties under this article.

 

     (3) While serving as a member of the commission, an individual

 

shall not promote or sponsor any contest or event of amateur mixed

 

martial arts or have any financial interest in an entity that

 

promotes or sponsors any amateur mixed martial arts contests or

 

events.

 

     Sec. 74. (1) Except as provided in section 73(1) concerning

 

the authority of the commission, the department is responsible for

 

administering and enforcing this article. All of the following

 


apply to the department's enforcement of this article:

 

     (a) In enforcing this article, the department may initiate an

 

administrative or court action against an applicant or licensee or

 

take any other action against a licensee or his or her license that

 

is authorized under this article for a violation of this article.

 

     (b) The department shall not take any action against an

 

applicant, licensee, or license under subdivision (a) more than 1

 

year after the occurrence of the violation of this article that is

 

the subject of the department's action.

 

     (2) The amateur mixed martial arts fund is created in the

 

state treasury. All of the following apply to the fund:

 

     (a) The department shall deposit into the fund all money

 

received from application fees, registration fees, license fees,

 

and administrative fines imposed under this article.

 

     (b) The state treasurer shall direct the investment of the

 

fund. The state treasurer shall credit to the fund interest and

 

earnings from fund investments.

 

     (c) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (d) The department is the administrator of the fund for

 

auditing purposes.

 

     (e) The department shall expend money from the fund, upon

 

appropriation, to administer and enforce this article and for its

 

expenditures under this article.

 

     (3) The director shall promulgate rules to set standards for

 

mixed martial arts exhibitions and to protect the health and safety

 

of contestants participating in contests and exhibitions. The

 


director may promulgate any additional rules he or she considers

 

necessary to administer and enforce this article. The director

 

shall promulgate any rules described in this subsection under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     Sec. 75. (1) An individual shall not hold or conduct an

 

amateur mixed martial arts contest or event in this state or engage

 

in any other activity regulated under this article unless the

 

individual holds a promoter's license under this article or the

 

individual is exempt from licensure under this article.

 

     (2) An individual seeking a license under this article shall

 

submit a license application to the department, in writing and

 

under oath, accompanied by a nonrefundable application processing

 

fee and an annual license fee. The application shall be made on a

 

form provided by the department and shall include the legal name,

 

street address, and telephone number of the applicant and any other

 

information reasonably required by the department.

 

     (3) An annual license under this article shall expire on

 

September 30 of the calendar year following the year the license

 

was issued.

 

     (4) Beginning on the effective date of this article, the

 

nonrefundable application fee required under this section is

 

$100.00 and the annual license fee required under this section is

 

$300.00. Beginning 1 year after the effective date of this article,

 

the director may biannually adjust the amount of the fees described

 

in this section based on the increase or decrease for the

 

immediately preceding 6-month period in the Detroit consumer price

 


index as reported by the United States Department of Labor.

 

     Sec. 76. By filing an application for a license under this

 

article, an applicant does both of the following:

 

     (a) Certifies his or her general suitability, character,

 

integrity, and ability to participate in, engage in, or be

 

associated with amateur mixed martial arts contests or events. The

 

burden of proof is on the applicant to establish that the applicant

 

possesses suitability, character, and integrity and is qualified to

 

promote and participate in mixed martial arts amateur contests or

 

events.

 

     (b) Accepts the risk of adverse public notice, embarrassment,

 

criticism, financial loss, or other action with respect to his or

 

her application and expressly waives any claim for damages as a

 

result of any adverse public notice, embarrassment, criticism,

 

financial loss, or other action.

 

     Sec. 77. (1) An applicant is ineligible to receive a

 

promoter's license under this article if he or she meets any of the

 

following:

 

     (a) He or she was convicted of a felony that involved

 

violence, theft, fraud, or an element of financial dishonesty under

 

the laws of this state or any other jurisdiction in the United

 

States in the 5-year period preceding the application.

 

     (b) He or she has an unsatisfied tax lien in the amount of at

 

least $5,000.00 under any federal, state, or local law at the time

 

of the application.

 

     (c) He or she submitted an application for a license under

 

this article that contained false information.

 


     (2) If the department does not issue an initial or renewal

 

license to an individual under this article, he or she may petition

 

the department and the commission for a review. The petition must

 

be in writing and set forth the reasons the petitioner believes

 

that the department should issue a license to him or her. The

 

department may issue a license to the petitioner if, based on a

 

review of the qualifications of the individual who submitted the

 

petition, the department and the commission determine that the

 

individual could perform as a promoter with competence.

 

     Sec. 78. (1) An individual who fails to renew a license on or

 

before its expiration date shall not hold or conduct an amateur

 

mixed martial arts contest or event or advertise, operate, or use

 

the title "promoter" or "amateur promoter" after the expiration

 

date printed on the license.

 

     (2) An individual who fails to renew a license on or before

 

its expiration date is permitted to renew the license within 60

 

days after the expiration date by meeting all requirements for

 

licensure under this article, paying the required license fee, and

 

paying a late renewal fee in the amount of $30.00. After that 60-

 

day period, the individual may only obtain a license under this

 

article by complying with the requirements of section 75.

 

     (3) Except as provided in subsection (4) or otherwise provided

 

in this article, an individual may seek reinstatement of a license

 

under this article by filing an application on a form provided by

 

the department, paying the application processing fee and annual

 

license fee, and filing a petition with the department that states

 

the reasons reinstatement is appropriate and includes evidence that

 


the individual can and is likely to serve the public in the

 

regulated activity with competence and in conformance with all

 

other requirements prescribed by law, rule, or an order of the

 

department.

 

     (4) If a license is revoked or suspended by the department

 

under this article, the department may reinstate the revoked

 

license or lift a suspension if it receives an application for

 

reinstatement and is paid any administrative fine assessed by the

 

commission.

 

     Sec. 79. (1) In addition to the fees described in section 75,

 

a licensee shall pay a regulatory and enforcement fee of $200.00

 

for each amateur mixed martial arts event presented by the

 

promoter. The department shall deposit regulatory and enforcement

 

fees it receives under this section in the fund. By December 1 of

 

each year, the department shall report to the legislature the

 

amount of revenue generated by the regulatory and enforcement fee

 

in the preceding state fiscal year.

 

     (2) A licensee who presents an amateur mixed martial arts

 

event in this state must comply with all of the following:

 

     (a) At least 5 business days before the event, pay the

 

regulatory and enforcement fee described in subsection (1) and

 

provide notice to the department that describes the event. The

 

department shall prescribe the form and contents of the notice

 

described in this subdivision.

 

     (b) Pay all obligations related to the normal course of

 

promoting an amateur mixed martial arts event, including, but not

 

limited to, venue rent and judge, medical professional, referee,

 


and timekeeper fees.

 

     (c) Arrange for a medical professional to attend the event for

 

purposes of subsection (3)(k), and arrange for an alternate medical

 

professional to attend the event if the original medical

 

professional is unable to attend the event. The licensee shall

 

include the name of the medical professional and alternate medical

 

professional described in this subdivision in the notice provided

 

to the department under subdivision (a).

 

     (d) Maintain records of the amateur mixed martial arts event

 

for at least 1 year after the date of the scheduled event and make

 

those records available to the department or law enforcement

 

officials on request.

 

     (3) A licensee presenting an amateur mixed martial arts event

 

in this state shall ensure that all of the following are met in the

 

conduct of the event:

 

     (a) Except as provided in subdivision (b), each individual

 

contest consists of not more than 3 rounds, of not more than 3

 

minutes' duration, with at least a 1-minute rest period between

 

each round.

 

     (b) Each individual national or international championship

 

contest consists of not more than 5 rounds, of not more than 5

 

minutes' duration, with at least a 1-minute rest period between

 

each round.

 

     (c) Each contestant wears gloves, supplied by the promoter,

 

that weigh at least 4 ounces and not more than 8 ounces.

 

     (d) The referee examines the gloves worn by each contestant

 

before and during a contest. If the referee finds that a glove is

 


misplaced, lumpy, broken, roughed, or otherwise unfit, the

 

contestant must change the glove before the start of the contest.

 

     (e) Before a contestant participates in a contest, he or she

 

is weighed and placed in the appropriate weight class. As used in

 

this subdivision and subdivision (f), "weight class" means 1 of the

 

following:

 

     (i) Flyweight, if he or she weighs 125.9 pounds or less.

 

     (ii) Bantamweight, if he or she weighs 126 pounds or more and

 

not more than 135 pounds.

 

     (iii) Featherweight, if he or she weighs 135.1 pounds or more

 

and not more than 145 pounds.

 

     (iv) Lightweight, if he or she weighs 145.1 pounds or more and

 

not more than 155 pounds.

 

     (v) Welterweight, if he or she weighs 155.1 pounds or more and

 

not more than 170 pounds.

 

     (vi) Middleweight, if he or she weighs 170.1 pounds or more and

 

not more than 185 pounds.

 

     (vii) Light heavyweight, if he or she weighs 185.1 pounds or

 

more and not more than 205 pounds.

 

     (viii) Heavyweight, if he or she weighs 205.1 pounds or more and

 

not more than 265 pounds.

 

     (ix) Super heavyweight, if he or she weighs more than 265

 

pounds.

 

     (f) a contestant only participates in a contest with another

 

contestant who meets 1 of the following:

 

     (i) The second contestant is in the same weight class.

 

     (ii) The second contestant is in the next higher weight class,

 


if the first contestant agrees to participate with that heavier

 

contestant.

 

     (g) Professional mixed martial artists who are subject to the

 

Michigan unarmed combat regulatory act, 2004 PA 403, MCL 338.3601

 

to 338.3663, do not participate as contestants in a contest.

 

     (h) A contestant does not participate in a contest unless the

 

contestant has submitted medical certification of negative results

 

for hepatitis B and C and HIV tests conducted within the 180-day

 

period preceding the scheduled contest or event.

 

     (i) A female contestant does not participate in a contest

 

unless the contestant has submitted the results of a pregnancy test

 

performed on the contestant within the 7-day period preceding the

 

event and the results of that pregnancy test are negative.

 

     (j) An individual is not allowed to participate as a

 

contestant without proper medical clearance.

 

     (k) The event does not take place or continue without a

 

medical professional and an ambulance at the event.

 

     (l) The event does not take place or continue without a trained

 

and competent referee.

 

     (m) An individual is not allowed to participate in a contest

 

if there is any reason to suspect that he or she is impaired or has

 

used or uses performance-enhancing drugs. As used in this

 

subdivision:

 

     (i) "Impaired" means the inability or immediately impending

 

inability of an individual to safely participate in an amateur

 

mixed martial arts contest or event due to his or her substance

 

abuse, chemical dependency, or use of drugs or alcohol that does

 


not constitute substance abuse or chemical dependency.

 

     (ii) "Chemical dependency" means that term as defined in

 

section 16106a of the public health code, 1978 PA 368, MCL

 

333.16106a.

 

     (iii) "Substance abuse" means that term as defined in section

 

16106a of the public health code, 1978 PA 368, MCL 333.16106a.

 

     (n) A professional is not allowed to participate as a

 

contestant in the event.

 

     (o) If an individual lost a mixed martial arts contest or

 

exhibition by a technical knockout in the 30-day period preceding

 

the event, he or she is not allowed to participate as a contestant

 

unless he or she submits the results of a physical examination to

 

the promoter that indicate that he or she is fit to compete.

 

     (p) The medical professional at the event determines the

 

status of a contestant who is knocked out in an amateur mixed

 

martial arts contest or whose fight is stopped by the referee

 

because he or she received hard blows to the head that made him or

 

her defenseless or incapable of continuing immediately after the

 

knockout or stoppage. The medical professional may recommend post-

 

fight neurological examinations, which may include performing

 

computerized axial tomography (CAT) scans or magnetic resonance

 

imaging (MRI) on the contestant immediately after the contestant

 

leaves the event venue.

 

     (q) A contestant described in subdivision (p) does not compete

 

in another contest without proper medical clearance.

 

     (r) If a medical professional recommended further neurological

 

examinations of a contestant under subdivision (p), the contestant

 


does not compete in another contest until the promoter receives

 

copies of the examination reports and the reports demonstrate that

 

the contestant is fit to compete.

 

     (s) A contestant who sustains a severe injury or knockout in a

 

contest is examined by a medical professional and is not permitted

 

to compete in another contest until a medical professional

 

certifies that the contestant is fully recovered.

 

     (t) An individual who meets all of the following does not

 

participate as a contestant:

 

     (i) He or she participated in a contest or exhibition in the

 

60-day period preceding the event.

 

     (ii) In the contest or exhibition described in subparagraph

 

(i), he or she was knocked out or the contest or exhibition was

 

stopped because he or she received excessive hard blows to the

 

head.

 

     (u) An individual who meets all of the following does not

 

participate as a contestant:

 

     (i) He or she participated in multiple contests or exhibitions

 

before the event.

 

     (ii) In any 90-day period, he or she was knocked out twice or 2

 

of his or her contests or exhibitions were stopped because he or

 

she received excessive hard blows to the head.

 

     (iii) The second knockout or stoppage described in subparagraph

 

(ii) occurred in the 120-day period preceding the event.

 

     (v) An individual who meets all of the following does not

 

participate as a contestant:

 

     (i) He or she participated in multiple contests or exhibitions

 


before the event.

 

     (ii) In any 12-month period, he or she was knocked out in 3

 

consecutive contests or exhibitions or 3 consecutive contests or

 

exhibitions were stopped because he or she received excessive hard

 

blows to the head.

 

     (iii) The third knockout or stoppage described in subparagraph

 

(ii) occurred in the 1-year period preceding the event.

 

     (w) If an individual was not allowed to participate as a

 

contestant in an earlier event because he or she met the

 

requirements of subdivision (t), (u), or (v) at the time of that

 

earlier event, he or she does not participate as a contestant

 

unless he or she provides the promoter with proper medical

 

clearance.

 

     (x) Each contestant is insured for at least $10,000.00 for any

 

medical and hospital expenses, including deductibles paid by the

 

contestant, to cover injuries sustained in a contest and for at

 

least $10,000.00 to be paid in accordance with the statutes of

 

descent and distribution of individual property if the contestant

 

dies as a result of injuries received in a contest.

 

     (y) Each contestant is at least 18 years of age.

 

     (z) A contestant does not participate at more than 1 contest

 

at an event.

 

     (aa) Each contestant in a contest is the same sex.

 

     (bb) An individual does not participate as a contestant if he

 

or she participated in another contest in the 7-day period

 

preceding the event.

 

     (cc) The results of each contest are reported to the

 


department within 48 hours after the conclusion of the event.

 

     Sec. 80. (1) Before he or she participates in a contest or

 

exhibition, a contestant shall register with the department by

 

submitting a registration form with the department, that includes

 

his or her name, address, date of birth, and social security

 

number, accompanied by a nonrefundable registration processing fee

 

in the amount of $25.00 and an annual registration fee in the

 

amount of $25.00. A registration under this section expires at the

 

end of the calendar year in which the contestant submitted the

 

registration form. The department may prescribe the form and

 

contents of the registration form.

 

     (2) The department shall assign a registration number to each

 

contestant that submits a registration form under subsection (1).

 

     (3) In any notice, report, or other communication with the

 

department or commission that identifies or refers to a specific

 

contestant, including, but not limited to, the report of the

 

results of each contest under section 79(3)(cc), a licensee shall

 

include the registration number of that contestant assigned under

 

subsection (2).

 

     (4) The department may revoke a contestant's registration if

 

he or she violates this section or provides false information in

 

his or her registration form.

 

     Sec. 81. (1) An individual who does any of the following is

 

subject to the remedies and penalties described in this section:

 

     (a) Violates this article or a rule promulgated or order

 

issued under this article.

 

     (b) Practices fraud or deceit in obtaining a license.

 


     (c) Practices fraud, deceit, or dishonesty in performing his

 

or her duties as a promoter.

 

     (d) Practices false advertising.

 

     (e) Fails to comply with a subpoena issued under this article.

 

     (f) Fails to provide requested documents or records to the

 

department.

 

     (g) Violates or fails to comply with a stipulation or

 

settlement agreement with or a final order issued by the department

 

or commission.

 

     (h) Aids or abets another individual in promoting an amateur

 

mixed martial arts contest without a license.

 

     (i) Fails to pay any obligation related to the normal course

 

of promoting an amateur mixed martial arts event, including, but

 

not limited to, venue rent or judge, medical professional, referee,

 

or timekeeper fees.

 

     (j) Enters into a contract for an amateur mixed martial arts

 

contest or event in bad faith.

 

     (k) Gambles on the outcome of an amateur mixed martial arts

 

contest or event of which he or she is a promoter.

 

     (l) Fails to file current address information with the

 

department.

 

     (m) Assaults another licensee, a commission member, or an

 

employee of the department.

 

     (n) Tampers with or coerces another promoter's contestants.

 

     (2) If a licensee violates this article or a rule or order

 

promulgated or issued under this article, the department may take 1

 

or more of the following actions:

 


     (a) Place a limitation on his or her license.

 

     (b) Suspend his or her license.

 

     (c) Deny him or her a license or renewal of a license.

 

     (d) Revoke his or her license.

 

     (e) Assess an administrative fine under section 87.

 

     (f) Censure the licensee.

 

     (g) Require that he or she pay restitution, based on proofs

 

submitted to and findings made by the hearings examiner after a

 

contested case. If restitution is required and the individual is a

 

licensee, the department may suspend his or her license until the

 

restitution is paid.

 

     (3) An individual who violates this article is guilty of a

 

misdemeanor punishable by imprisonment for not more than 93 days or

 

a fine of not more than $500.00, or both.

 

     (4) An individual who violates this article a second or any

 

subsequent time is guilty of a misdemeanor punishable by

 

imprisonment for not more than 1 year or a fine of not more than

 

$1,000.00, or both.

 

     (5) An individual who knowingly allows a professional to

 

participate as a contestant in an amateur mixed martial arts

 

contest with an amateur is guilty of a felony punishable by

 

imprisonment for not more than 3 years or a fine of $10,000.00 per

 

incident, or both.

 

     (6) The department may bring an injunctive action in a court

 

of competent jurisdiction to restrain or prevent an individual from

 

violating this article. If successful in obtaining injunctive

 

relief, the department is entitled to its costs and reasonable

 


attorney fees.

 

     (7) The department may conduct an investigation to enforce

 

this article. An individual who violates this article is subject to

 

the penalties and remedies described in this section.

 

     (8) The penalties and remedies under this section are

 

independent and cumulative. The imposition of a remedy or penalty

 

against an individual under this section does not bar the pursuit

 

of any lawful remedy by that individual or the pursuit of a lawful

 

remedy by any other person against that individual.

 

     Sec. 82. (1) Any person may file a written complaint with the

 

department alleging that an individual has violated this article or

 

a rule promulgated or an order issued under this article.

 

     (2) If the department receives a complaint described in

 

subsection (1), the department immediately shall begin and pursue

 

an investigation of the allegations of the complaint. The

 

department shall acknowledge the complaint in writing within 15

 

days after it receives the complaint.

 

     (3) For purposes of its investigation under this section, the

 

department may administer oaths; take testimony under oath; require

 

the appearance and testimony of witnesses, including the production

 

of books, records, or other documents; or request that the attorney

 

general petition a court of competent jurisdiction to issue a

 

subpoena requiring a person to appear before the department and be

 

examined with reference to any matter within the scope of the

 

investigation and to produce books, papers, or documents pertaining

 

to the investigation.

 

     (4) If the department determines after conducting an

 


investigation under this section that there is not sufficient

 

evidence that there was a violation of this article or a rule

 

promulgated or an order issued under this article by the

 

respondent, the department shall close the complaint. The

 

department shall provide its reasons for closing the complaint to

 

the complainant, who then may provide additional information to

 

reopen the complaint, and to the respondent.

 

     (5) If the department determines after conducting an

 

investigation under this section that there is sufficient evidence

 

that there was a violation of this article or a rule promulgated or

 

an order issued under this article by the respondent, the

 

department or the department of attorney general shall take

 

appropriate action against the respondent, which may include any of

 

the following:

 

     (a) Issuing a formal complaint.

 

     (b) Obtaining a cease and desist order.

 

     (c) Issuing an order of summary suspension under section 83.

 

     (d) Seeking injunctive relief under section 81(6).

 

     (6) At any time during its investigation or after it issues a

 

formal complaint, the department may meet with the complainant and

 

the respondent for an informal conference. At the meeting, the

 

department shall attempt to resolve issues raised in the complaint

 

and may attempt to aid the parties in reaching a formal settlement

 

or stipulation.

 

     Sec. 83. (1) After it conducts an investigation under section

 

82, the department may issue an order summarily suspending a

 

license based on an affidavit by a person familiar with the facts

 


set forth in the affidavit or, if appropriate, based on an

 

affidavit on information and belief that an imminent threat to the

 

integrity of the sport of amateur mixed martial arts, the public

 

interest, or the welfare and safety of a contestant exists.

 

     (2) If a promoter's license is summarily suspended under this

 

section, the promoter may petition the department to dissolve the

 

suspension order. After receiving a petition to dissolve a

 

suspension order, the department shall immediately schedule a

 

hearing to decide whether to grant or deny the requested relief.

 

     (3) After the hearing concerning a petition to dissolve a

 

suspension order under subsection (2), the administrative law

 

hearings examiner shall dissolve the summary suspension order

 

unless sufficient evidence is presented that an imminent threat to

 

the integrity of the sport, the public interest, or the welfare and

 

safety of a contestant exists that requires emergency action and

 

continuation of the department's summary suspension order.

 

     (4) The record created at a hearing to dissolve a summary

 

suspension order is considered part of the record of the complaint

 

at any subsequent hearing in a contested case.

 

     Sec. 84. (1) If the department conducts an investigation under

 

section 82, the department after the investigation may order a

 

person to cease and desist violating this article or a rule

 

promulgated or order issued under this article.

 

     (2) A person ordered to cease and desist under subsection (1)

 

may request a hearing on that order by filing a written request for

 

a hearing with the department within 30 days after the effective

 

date of the order.

 


     (3) If a person violates a cease and desist order issued under

 

this article, the department of attorney general may apply to a

 

court of competent jurisdiction to restrain and enjoin, temporarily

 

or permanently, or both, the person from further violating the

 

cease and desist order.

 

     Sec. 85. (1) A summary suspension order under section 83, a

 

cease and desist order under section 84, or injunctive relief

 

issued or granted in an action under section 81(6) concerning a

 

license is in addition to and not in place of an informal

 

conference; criminal prosecution; proceeding to impose a remedy

 

described in section 81(2); or any other action authorized under

 

this article.

 

     (2) If the department conducts an investigation and prepares

 

or receives a formal complaint under section 82, the department

 

shall serve the formal complaint on the respondent and the

 

complainant. At the same time, the department shall serve the

 

respondent with a notice describing the compliance conference and

 

hearing process and offering the respondent a choice of 1 of the

 

following options:

 

     (a) An opportunity to meet with the department to negotiate a

 

settlement of the matter.

 

     (b) If the respondent is a licensee under this article, an

 

opportunity to demonstrate compliance before the department holds a

 

contested case hearing.

 

     (c) An opportunity to proceed to a contested case hearing.

 

     (3) A respondent who is served with a formal complaint under

 

this section may select, within 15 days after receiving the notice,

 


1 of the options described in subsection (2). If the respondent

 

does not notify the department of the selection of 1 of those

 

options within the time period described in this subsection, the

 

department shall proceed with a contested case hearing as described

 

in subsection (2)(c).

 

     (4) At the discretion of the department, a member of the

 

commission may attend an informal conference described in

 

subsection (2)(a). The conference may result in a settlement,

 

consent order, waiver, default, or other method of settlement

 

agreed on by the parties and the department. A settlement may

 

include any remedy under section 81(2) or any other remedy

 

authorized under this article. The commission may reject a

 

settlement and require a contested case hearing.

 

     (5) An employee of the department may represent the department

 

in any contested case hearing.

 

     (6) This section does not prevent a person against whom a

 

complaint is filed from showing compliance with this article or a

 

rule promulgated or order issued under this article.

 

     (7) The department or the department of the attorney general

 

may petition a court of competent jurisdiction to issue a subpoena

 

to require the person subpoenaed to appear or testify or produce

 

relevant documentary material for examination at a proceeding.

 

     Sec. 86. (1) At the conclusion of a contested case hearing

 

conducted under section 85, the administrative law hearings

 

examiner shall submit a hearing report that includes findings of

 

fact and conclusions of law to the department, the department of

 

attorney general, and the commission. The examiner may recommend in

 


the hearing report the assessment of a penalty or remedy under this

 

article.

 

     (2) An administrative law hearings examiner shall submit a

 

copy of a hearing report prepared under subsection (1) to the

 

complainant and to the respondent.

 

     (3) Within 60 days after it receives an administrative law

 

hearings examiner's hearing report, the commission shall meet and

 

determine what penalty or remedy is appropriate. The commission

 

shall make its determination based on the administrative law

 

hearings examiner's report. The examiner shall make a transcript of

 

a hearing or a portion of the transcript available to the

 

commission on request. If a transcript or a portion of the

 

transcript is requested, the commission shall make its

 

determination of the penalty or remedy to assess under this article

 

at a meeting held within 60 days after it receives the transcript

 

or portion of the transcript.

 

     (4) If the commission does not determine which penalty or

 

remedy to assess within the time period described in subsection

 

(3), the director may determine the appropriate remedy or penalty

 

and issue a final order.

 

     (5) A member of the commission who has participated in an

 

investigation or administrative hearing on a complaint filed with

 

the department or who has attended an informal conference shall not

 

participate in making a final determination in a proceeding on that

 

complaint.

 

     Sec. 87. (1) If a licensee violates this article or a rule or

 

order promulgated or issued under this article, the department may

 


impose an administrative fine on the licensee, in an amount of not

 

more than $10,000.00 per violation. The commission may impose the

 

administrative fine in addition to, or in lieu of, any other

 

penalty or remedy under this article, including, but not limited

 

to, the penalties and remedies described in section 81, based on

 

proofs submitted to and findings made by the hearings examiner

 

after a contested case.

 

     (2) If the department imposes an administrative fine under

 

this section, the department may also recover the costs of the

 

proceeding, including investigative costs, court costs, and

 

reasonable attorney fees. The department or the attorney general

 

may bring an action in a court of competent jurisdiction to recover

 

any administrative fines, investigative and other allowable costs,

 

court costs, and reasonable attorney fees. The filing of an action

 

to recover administrative fines and costs does not bar the

 

imposition of other penalty or remedy under this article.

 

     Enacting section 1. Sections 62 and 63 of the Michigan unarmed

 

combat regulatory act, 2004 PA 403, MCL 338.3662 and 338.3663, are

 

repealed.

 

     Enacting section 2. This amendatory act takes effect 90 days

 

after the date it is enacted into law.