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106th Congress                                           Rept. 106-449,
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
                     MUHAMMAD ALI BOXING REFORM ACT

                                _______
                                

                November 4, 1999.--Ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 1832]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 1832) to reform unfair and anticompetitive practices in 
the professional boxing industry, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................    2-
Purpose and Summary-.............................................     7
Background and Need for Legislation-.............................     8
Hearings-........................................................     9
Committee Consideration-.........................................     9
Committee Votes..................................................   10-
Committee Oversight Findings -...................................    10
Committee on Government Reform Oversight Findings-...............    10
New Budget Authority, Entitlement Authority, and Tax 
  Expenditures-..................................................    10
Committee Cost Estimate-.........................................    10
Congressional Budget Office Estimate-............................    10
Federal Mandates Statement-......................................    13
Advisory Committee Statement-....................................    13
Constitutional Authority Statement-..............................    13
Applicability to Legislative Branch-.............................    13
Section-by-Section Analysis of the Legislation -.................    13
Exchange of Committee Correspondence -...........................    17
Changes in Existing Law Made by the Bill, as Reported-...........    18
Dissenting Views -...............................................    27

                               Amendment

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS.

  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.

SEC. 3. PURPOSES.

  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.

SEC. 4. PROTECTING BOXERS FROM EXPLOITATION.

  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 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 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.

``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 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 14 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) FTC 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) FTC 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--
          ``(1) not required to file such information with such State; 
        and
          ``(2) required to file 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.''.

SEC. 5. CONFLICT OF INTEREST.

  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.''.

SEC. 6. ENFORCEMENT.

  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.''.

SEC. 7. ADDITIONAL AMENDMENTS.

  (a) Definitions.--Section 2(a) of the Professional Boxing Safety Act 
of 1996 (15 U.S.C. 6301(a)) is amended--
          (1) in paragraph (10) by striking the period at the end and 
        inserting ``, including the Virgin Islands.''; and
          (2) 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 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.''.

                          Purpose and Summary

    The purpose of H.R. 1832, the Muhammad Ali Boxing Reform 
Act, is to protect the rights and welfare of professional 
boxers on an interstate basis by preventing certain exploitive, 
oppressive, and unethical business practices, to assist State 
boxing commissions in their efforts to provide more effective 
public oversight of the sport, and to promote honorable 
competition in professional boxing and enhance the overall 
integrity of the industry.
    The Muhammad Ali Boxing Reform Act amends the Professional 
Boxing Safety Act of 1996 (15 U.S.C. 6301 et seq.) to establish 
certain minimum requirements for contracts between boxers and 
their promoters and managers. In particular, it limits 
exclusive promotional rights to a maximum of 12 months and 
prohibits a promoter or a sanctioning organization from 
requiring a boxer to grant further promotional rights in order 
to fight a match that is a mandatory bout. The bill also 
prohibits promoters from having a financial interest in the 
management of a boxer, and vice versa, although only for boxers 
who fight over 10 rounds. It requires the establishment of 
objective and consistent written criteria for the ratings of 
professional boxers and requires a publishing of any change in 
a top ten boxer's rankings.
    Sanctioning organizations are required to submit to the 
Federal Trade Commission (FTC), or post on the Internet, a 
complete description of their ratings criteria, policies, 
general sanctioning fee schedule, bylaws, and appeals 
procedure. Officers and employees of sanctioning organizations 
are prohibited from receiving any non-de minimis compensation 
or gifts from a promoter, boxer, or manager, other than their 
published fees for sanctioning a match and any reasonable 
expenses. Sanctioning organizations are required to provide to 
a State's boxing commission before a fight a statement of all 
charges, fees, and costs the organization will assess any boxer 
participating in that match, and all payments the organization 
will receive for its affiliation with the event from all 
sources.
    Promoters are required to provide to the appropriate State 
boxing commission copies of any agreements they have with a 
boxer, a statement of all expenses that will be assessed the 
boxer, any benefits the promoter is providing to sanctioning 
organizations affiliated with the event, and any reduction in a 
boxer's purse contrary to previous agreements, as well as 
disclosing other sources of revenue. These disclosures are 
protected by a confidentiality provision.
    Judges and referees are required to be certified and 
approved by State boxing commissions, and are also required to 
disclose their sources of compensation for participating in a 
fight. Unsportsmanlike conduct is added to the list of 
suspendable offenses under the Act. The Association of Boxing 
Commissions (ABC) is directed to develop and approve guidelines 
on boxing contract requirements, uniform rules, and rating 
criteria. The record keeping burden on the States is reduced by 
extending boxing licenses from two years to four years.

                  Background and Need for Legislation

    Boxing is perhaps the oldest sport in existence, dating 
back to the Sumerians in 2600 BC. The ancient Greeks introduced 
boxing to the Olympics in 688 BC, with participants required to 
wear protective headgear and leather hand-coverings. 
Unfortunately, the sport of boxing has been criticized for 
being rife with fraud and corruption. Recently, the Miami 
Herald reported that over 30 prizefights have been fixed or 
tainted with fraud in the last 12 years (Sunday, October 31, 
1999). Earlier this year, an investigation by the Los Angeles 
Times argued that boxing rankings are sold by sanctioning 
bodies, promoters pay for conventions for boxing's sanctioning 
bodies as thinly disguised bribes, and boxing managers make 
payments of up to twenty thousand dollars in cash to improve 
their boxers' rankings and get more lucrative cable TV fights. 
(Tuesday, May 18, 1999).
    Similar concerns have been echoed by boxing's leaders. 
Former heavyweight champion Muhammad Ali has called for Federal 
legislation to protect boxers from the ``dishonest ways'' of 
some promoters and managers. Boxing News has stated that 
``Pure, unvarnished greed is killing the game. * * *. Boxing 
desperately needs [a federal] law * * * to cut down on the 
terrible corruption.'' (July 17, 1998) Another article noted 
that ``Americans have more rights than any people on earth, but 
our fight game has degenerated into such a dirty, incestuous 
business that when you make noise, you get blackballed.'' 
(Boxing News, July, 1998)
    Three years ago, Congress enacted legislation reported by 
the Committee on Commerce to begin to clean up the sport. The 
legislation (1) required that no professional boxing match may 
be conducted without the supervision of a State authorized 
boxing commission; (2) created a uniform system of 
registration, licensing, and reporting through the Association 
of Boxing Commissions; (3) implemented procedures for mutual 
recognition, review, and appeal of boxer suspensions; (4) 
established minimum safety standards (such as a pre-fight 
physical exam by a physician, medical personnel present at 
ringside, and health insurance for boxing injuries); and (5) 
prohibited boxing commission employees from belonging to or 
receiving compensation from those who sanction, arrange, or 
promote professional boxing matches. Ironically, the Commerce 
Committee's boxing legislation took effect one day after Mike 
Tyson bit off the ear of Evander Holyfield, and one day before 
Mr. Tyson's suspension was determined. Because of the uniform 
system created, the suspension of Mr. Tyson by the Nevada 
boxing commission was recognized nationwide, preventing Mr. 
Tyson from fighting until the suspension was lifted.
    On June 29, 1999, the Subcommittee on Telecommunications, 
Trade, and Consumer Protection held a hearing on H.R. 1832, the 
Muhammad Ali Boxing Reform Act. The hearing took place just 
after an extremely controversial decision in the Holyfield-
Lewis heavyweight championship fight in which an International 
Boxing Federation (IBF) judge awarded the title to Mr. 
Holyfield, the IBF champion, instead of to Mr. Lewis, the World 
Boxing Council (WBC) champion and clear apparent winner 
according to some boxing commentators. In the words of one 
hearing witness, the decision was ``highly influenced''. 
Another witness said plainly, ``Lewis was robbed.''
    H.R. 1832 has been strongly praised by a number of 
enforcement officials and boxing journalists. Nineteen 
bipartisan U.S. State Attorney Generals signed a letter 
stating: ``[We] strongly endorse the Ali Act. * * * We believe 
this legislation will curb anti-competitive and fraudulent 
business practices and prevent blatant exploitation of 
professional boxers.'' In a 1998 editorial, the International 
Boxing Digest stated that, ``We support the new [boxing] bill, 
and urge all honest people in professional boxing to do 
likewise. Fighters need to be protected, and not simply from 
what happens in the ring. This bill does it like it's never 
done before.'' Ring Magazine concurred, stating, ``Imagine a 
world in which fighters are not taken advantage of financially, 
title shots are awarded to legitimate contenders, and bogus 
alphabet organizations slowly fade from existence. [I]f the Ali 
Act passes * * * that boxing heaven may just be located right 
here on earth.'' (December, 1998 editorial)
    The Committee believes that this legislation is needed to 
reduce corruption and conflicts of interest in boxing, to 
protect boxers from unethical practices in the sport, to assist 
the States in regulating the sport, and to increase public 
confidence in boxing's integrity. The Committee also believes 
the legislation is necessary to make various improvements to 
the Professional Boxing Safety Act of 1996 that have been 
requested by the State regulators to provide them with more 
flexibility and oversight.

                                Hearings

    The Subcommittee on Telecommunications, Trade, and Consumer 
Protection held a legislative hearing on H.R. 1832, the 
Muhammad Ali Boxing Reform Act, on June 29, 1999. The 
Subcommittee received testimony from the following witnesses: 
Mr. Gregory P. Sirb, President, Association of Boxing 
Commissions; Mr. Arlen D. Bynum, Legal Counselor, World Boxing 
Council; Mr. Dan Goossen, President, America Presents; Mr. Tony 
Holden, President, Next Media; and Mr. Alfonzo Daniels, a 
Middleweight Boxer.

                        Committee Consideration

    On September 24, 1999, the Subcommittee on 
Telecommunications, Trade, and Consumer Protection met in open 
markup session to consider H.R. 1832 and approved the bill for 
Full Committee consideration, amended, by a roll call vote of 
15 yeas to 1 nay. On September 29, 1999, the Full Committee met 
in open markup session and ordered H.R. 1832 favorably reported 
to the House, amended, by voice vote, a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House requires 
the Committee to list the record votes on the motion to report 
legislation and amendments thereto. There were no recorded 
votes taken in connection with ordering H.R. 1832 reported. An 
Amendment by Mr. Oxley, #1, to: (1) replace the 5 year time 
limit on boxing contracts with a prohibition on sequential 
coercive contracts; (2) reduce the time period for sanctioning 
bodies to respond to rating criteria questions from 14 days to 
7 days; and (3) add a provision to encourage State boxing 
commissions to disclose to boxers relevant health and safety 
risks, particularly with regard to the potential for brain 
injuries and the advisability of obtaining periodic CAT scans, 
was agreed to by a voice vote. An Amendment by Mr. Rush, #2, to 
strike the provisions imposing penalties on persons who 
violated the disclosure and conflict of interest provisions of 
the Act, was not agreed to by a voice vote. A motion by Mr. 
Bliley to order H.R. 1832 reported to the House, amended, was 
agreed to by a voice vote, a quorum being present.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

           Committee on Government Reform Oversight Findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
1832, the Muhammad Ali Boxing Reform Act, would result in no 
new or increased budget authority, entitlement authority, or 
tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 2, 1999.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1832, the Muhammad 
Ali Boxing Reform Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark Hadley 
(for federal costs), Shelley Finlayson (for the state and local 
impact), and Jean Wooster (for the private-sector impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1832--Muhammad Ali Boxing Reform Act

    Summary: H.R. 1832 aims to protect professional boxers from 
unfair business practices of managers and promoters. The bill 
would require the Association of Boxing Commissioners to 
establish guidelines for minimum provisions that should be 
included in boxing contracts: prohibit managers and promoters 
from having shared financial interests; and require the Federal 
Trade Commission (FTC) to provide information about 
organizations that sanction professional boxing matches. H.R. 
1832 would allow the FTC to charge the sanctioning 
organizations fees to offset the costs of providing such 
information. The bill also would make violations of certain 
provisions of the Professional Boxing Safety Act of 1996 
federal crimes. Finally, the bill would clarify that federal 
laws that regulate boxing also apply in the United States 
Virgin Islands.
    Based on information from the FTC, CBO estimates that 
enacting H.R. 1832 would have no significant impact on the 
federal budget. Implementing the bill would require far less 
than $500,000 a year in additional discretionary spending 
during the 2000-2004 period. That cost would be at least 
partially offset by fees, resulting in little or no net impact. 
H.R. 1832 would affect direct spending and receipts, so pay-as-
you-go procedures would apply, but CBO estimates that those 
effects would also be less than $500,000 a year.
    H.R. 1832 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA), however, CBO 
estimates that the cost of complying with this mandate would 
not be significant and would not exceed that threshold 
established in that act ($50 million in 1996, adjusted annually 
for inflation).
    H.R. 1832 would impose several private-sector mandates on 
the boxing industry, mainly on promoters and on organizations 
that sanction professional boxers. In general, the new mandates 
on promoters are aimed at protecting boxers from exploitation. 
The bill also would impose disclosure requirements on 
sanctioning organizations. CBO estimates that the total direct 
costs of the private-sector mandates identified in this bill 
would not exceed the statutory threshold established in UMRA 
($100 million in 1996, adjusted annually for inflation) in any 
of the next five years.
    Estimated cost to the Federal Government: Based on 
information from the FTC, CBO estimates that enacting H.R. 1832 
would require new spending subject to appropriations of far 
less than $500,000 a year during the 2000-2004 period, and that 
such amounts would be at least partially offset by collections 
of fees. The costs of this legislation fall within budget 
function 370 (commerce and housing credit).
    Enacting H.R. 1832 could increase governmental receipts 
from the collection of criminal fines, but CBO estimates that 
any such increase would be less than $500,000 annually. 
Criminal fines are deposited in the Crime Victims Fund and are 
spent in subsequent years. Thus, any change in direct spending 
from the fund would also amount to less than $500,000 annually.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. CBO 
estimates that any increases in governmental receipts and 
direct spending would each total less than $500,000 a year.
    Estimated impact on state, local, and tribal governments: 
H.R. 1832 contains an intergovernmental mandate as defined in 
UMRA, but CBO estimates that complying with the mandate would 
not result in significant additional costs to states. State 
boxing commissions would be required to establish procedures to 
ensure that no boxer is permitted to box while under suspension 
in any state due to unsportsmanlike conduct. Current law 
already requires state boxing commissions to have procedures in 
place to prevent boxers suspended for other reasons from boxing 
in their states. Therefore, CBO estimates that the additional 
costs to states to comply with this new requirement would not 
be significant. Enactment of the bill would impose no other 
costs on state, local, or tribal governments.
    Estimated impact on the private sector: H.R. 1832 would 
impose several private-sector mandates on the boxing industry. 
The most costly mandate would put a one-year limit on certain 
contracts between a boxer and a promoter, or between promoters 
with respect to a boxer. The one-year limitation would apply to 
those situations where a promoter secures promotional rights 
from a boxer (or another promoter) as a condition for that 
boxer to compete in a particular bout. Based on information 
from industry sources, CBO expects that this limitation could 
impose costs, in the form of lost revenues, on only a few 
promoters.
    The bill would require sanctioning organizations to make 
several new disclosures to regulators and others in the boxing 
industry. In addition, H.R. 1832 would impose mandates with 
minimal costs on the Association of Boxing Commissioners, 
mangers, licensees, matchmakers, judges, and referees. Based on 
information from representatives of the boxing industry, CBO 
estimates that the total direct costs of the private-sector 
mandates identified in this bill would not exceed the statutory 
threshold established in UMRA ($100 million in 1996, adjusted 
annually for inflation) in any of the next five years.
    Previous CBO estimate: On May 17, 1999, CBO transmitted a 
cost estimate of S. 305, the Muhammad Ali Boxing Reform Act, as 
ordered by the Senate Committee on Commerce, Science, and 
Transportation on May 5, 1999. That bill also would have no 
significant budgetary impact.
    Estimate prepared by: Federal costs: Mark Hadley; impact on 
state, local, and tribal governments: Shelly Finlayson; impact 
on the private sector: Jean Wooster.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 designates the short title of the Act as the 
``Muhammad Ali Boxing Reform Act''.

Section 2. Findings

    Section 2 sets forth the findings for the Act.

Section 3. Purposes

    Section 3 sets forth the purposes of the Act. The purposes 
include protecting professional boxers from exploitive and 
unethical business practices, assisting State boxing 
commissions (including the Association of Boxing Commissions) 
in providing more effective public oversight of boxing, and 
promoting competition and integrity in boxing.

Section 4. Protecting boxers from exploitation

    Section 4 amends the Professional Boxing Safety Act of 1996 
to add several new sections.
    Contract Requirements (Sec. 9).--A new section 9 directs 
the ABC to develop and approve by a vote of a majority of the 
commissioners guidelines for minimum contractual provisions to 
be included in bout agreements and boxing contracts. The bill 
as introduced contained a number of statutory minimum 
requirements for contracts between boxers and promoters, 
including mutual obligations between the parties, a minimum 
number of professional boxing matches per year for the boxer, 
and a specific period of time during which the contract will be 
in effect, including any provision for extension of that period 
due to the boxer's temporary inability to compete because of an 
injury or other cause. The Committee reported bill permits more 
long term flexibility by the States in determining appropriate 
standard contract provisions over time. However, the Committee 
expects that the ABC will look at these types of issues and 
adopt standard minimum contract provisions that the States 
should then follow.
    Protection from Coercive Contracts (Sec. 10).--New section 
10 protects boxers from coercive contracts. Coercive contracts 
are deemed unenforceable against boxers. A contract contains a 
coercive provision if it gives a promoter (other than the 
boxer's current promoter) any rights over a boxer as a 
condition for such boxer to be able to participate in a 
particular boxing match, and the rights are for a period 
greater than 12 months or the boxer would be fighting against 
another boxer who has given rights to such promoter as a 
condition for participating in a particular boxing match. Thus, 
if a promoter owns the rights to a champion, and a second boxer 
wants to fight the champion, then the champion's promoter can 
acquire the rights to the second boxer, but only for up to 12 
months. The promoter cannot then require a third boxer to grant 
any rights as a condition for fighting that second boxer during 
that period of time. It further provides that the 12 month 
period of time can not be extended in a manner that is 
enforceable against a boxer if such extension is made earlier 
than 3 months before the 12 month period expires. With respect 
to mandatory bouts required of a boxer to maintain a boxing 
title or standing, if a boxer is required to compete in a 
mandatory bout under the rules of a sanctioning organization, 
then no future promotional rights can be required of such boxer 
as a condition for participating in such bout.
    Sanctioning Organizations (Sec. 11).--The bill creates new 
section 11 governing sanctioning organizations, requiring the 
ABC within 2 years of enactment to develop and approve by a 
majority vote guidelines for objective and consistent written 
criteria for the ratings of boxers. This section is intended to 
help establish uniform and standard rules for rating boxing. 
The Committee expects that the States and sanctioning bodies 
will follow the ABC guidelines governing the ranking of boxers. 
To help enforce this section, the provision requires a 
sanctioning organization, in order to enforce the receipt of 
any compensation in connection with a boxing match, to provide 
to a boxer and the ABC (within 7 days of a request questioning 
that boxer's ratings) a written explanation of the 
organization's ratings criteria and the reasons for that 
particular boxer's ratings. With respect to boxers that a 
sanctioning organization ranksin its top ten in a particular 
weight class, if the organization subsequently changes the rating of 
such boxers, it must explain why such rating was changed and provide a 
copy of the change and explanation to the ABC and post it on an 
Internet website. Each year, sanctioning organizations must provide to 
the FTC a complete description of their ratings criteria, policies, and 
general sanctioning fee lists, the organization's bylaws, their appeals 
procedures regarding a boxer's rating, and a list of the organization's 
officials who vote on boxer ratings. Organizations must promptly notify 
the FTC of any material change in any of these policies or procedures. 
In lieu of such submissions to the FTC, an organization can fulfill 
this disclosure requirement by posting the same information on an 
Internet website that is generally accessible to the general public 
with the information available in an easily usable and understandable 
format.
    Required Disclosures to State Boxing Commissions by 
Sanctioning Organizations (Sec. 12).--The bill creates new 
section 12 which requires sanctioning organizations to provide 
to the State boxing commission responsible for regulating a 
match a statement of all expenses that the organization will 
assess any boxer in the match. This disclosure is intended to 
include any charge made to the boxer's promoter or manager that 
would come out of a boxer's purse or other earnings. The 
organization is also required to disclose to such State 
commission any payments or other benefits the organization 
expects to receive from any source because of its affiliation 
with the event.
    Required Disclosures for Promoters (Sec. 13).--The bill 
creates new section 13 to require boxing promoters to disclose 
to the appropriate State boxing commission copies of any 
written agreements the promoter has made with the participating 
boxers, a statement that there are no other written or oral 
existing agreements between such parties, any benefits provided 
by the promoter to any sanctioning organizations affiliated 
with the event, any charges that will be deducted from any of 
the boxer's earnings (such as any training expenses or promoter 
fees), and any reduction in a boxer's earnings contrary to a 
previous agreement between a promoter and such boxer or 
contrary to a bid on a boxing purse held for an event. A 
promoter is required to provide to the boxer a detailed 
disclosure of the specific amounts of any compensation or other 
benefits a promoter is receiving from a match, any charges that 
will be deducted from the boxer's earnings from the match, and 
any reduction in the boxer's earnings contrary to a previous 
agreement. All of the disclosures under this new section are 
required to be made available upon request to law enforcement 
officials of the State in which the match is held.
    Required Disclosures for Judges and Referees (Sec. 14).--
The bill creates new section 14 to require judges and referees 
to disclose to the appropriate boxing commission a statement of 
all benefits (including any reimbursement) received from any 
source for participation in a boxing match.
    Confidentiality (Sec. 15).--The bill creates new section 15 
to prohibit State boxing commissions and Attorney Generals from 
disclosing any information which a promoter has furnished under 
the new section 13 except to the extent required in a legal, 
administrative, or judicial proceeding. If a State law normally 
requires that the disclosures under section 13 be made public 
(other than in such proceedings), then a promoter is not 
required to furnish suchinformation to the State or State 
boxing commission, but may instead file such information with the ABC.
    Judges and Referees (Sec. 16).--The bill creates new 
section 16 requiring that all referees and judges that 
participate in boxing matches must be certified and approved by 
the appropriate State boxing commission.

Section 5. Conflict of interest

    The bill further amends the Professional Boxing Safety Act 
of 1996, in the former section 9 (now section 17) which 
prohibited conflicts of interest between boxing regulators and 
boxers, by adding a new provision creating similar firewalls 
between boxers and their promoters and managers. Specifically, 
the new provision prohibits promoters from having any direct or 
indirect financial interest in the management of a boxer, and 
prohibits managers from having any direct or indirect financial 
interest in the promotion of a boxer. The provision also 
prohibits managers from being employed or receiving benefits 
from a promoter in connection with a boxer except as specified 
under the manager's contract with the boxer. These newly added 
firewalls only apply to boxers that are engaging in fights of 
10 rounds or more, as many boxers that fight fewer rounds 
cannot afford to have separate managers and promoters. These 
firewalls do not apply where a boxer chooses to act as his or 
her own promoter or manager. The new provision also prohibits 
sanctioning organizations from receiving any benefits or gifts, 
directly or indirectly, from a promoter, boxer, or manager, 
except of de minimus value or as payment of a published fee and 
any connected reasonable expenses where such payment and 
expenses are reported to the appropriate boxing commission.

Section 6. Enforcement

    A new enforcement provision is added to the Professional 
Boxing Safety Act (to previous section 10, now section 18), 
which makes any person who knowingly violates the new 
requirements of this Act subject to imprisonment of up to a 
year, and fines of up to $100,000. If the violation is in 
connection with a boxing match which generates gross revenues 
in excess of $2,000,000, then the maximum fine is increased 
proportionately. For example, if all the sales and television 
revenues of a boxing match amount to $6,000,000 in revenues, 
then the maximum fine would be $300,000. States are also now 
allowed to bring civil actions on behalf of their residents for 
violations of this Act, and boxers are allowed to bring private 
rights of action to recover any damages suffered because of a 
violation of the Act (including reasonable attorneys fees).

Section 7. Additional amendments

    The bill makes several additional amendments to the 
Professional Boxing Safety Act. The Committee recognizes that 
the Virgin Islands should be included in the definition of 
``State''. Several new definitions are also added to section 2. 
Section 7 is amended to add unsportsmanlike conduct to the list 
of offenses for which a boxer is suspended nationwide. It is 
expected that this provision will only be applied for egregious 
cases of unsportsmanlike conduct. Section 6 is amended to only 
require that boxers renew their licenses every four years 
instead of every two years, to reduce the record keeping 
burdens on the States. Section 7 is amended to expand the 
parties which are allowed to appeal their suspensions to 
include boxing service providers. Section 4 is amended to allow 
the ABC (or any other entity to which a majority of the State 
boxing commission belongs to) to supervise a boxing match 
directly, in lieu of a State boxing commission. Section 6 is 
further amended to express the sense of Congress that State 
boxing commissions should, when issuing identification cards to 
boxers, make appropriate health and safety disclosures, 
including the risks associated with boxing, including the risk 
and frequency of brain injury and the advisability of 
undergoing medical procedures designed to detect brain injury 
(such as CAT scans).

                  Exchange of Committee Correspondence

                  Committee on Education and the Workforce,
                                  Washington, DC, November 1, 1999.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Chairman Bliley: I am writing regarding H.R. 1832, the 
Muhammad Ali Boxing Reform Act, which is within the 
jurisdiction of the Committee on Commerce and in addition the 
Committee on Education and the Workforce. The bill amends the 
Professional Boxing Safety Act. I have no objection to this 
bill being scheduled under suspension of the House Rules. The 
Committee on Commerce ordered the bill favorably reported on 
September 29, 1999.
    Given the impending adjournment and since I support the 
reported bill, I do not intend to call a full Committee meeting 
to consider this bill; however, the Committee does hold an 
interest in preserving its jurisdiction with respect to issues 
raised in the bill and its jurisdictional prerogatives in 
future legislation. As such, Members of the Education and the 
Workforce would expect to be represented should the provisions 
of this bill be considered in a conference with the Senate.
    I would appreciate the inclusion of this letter in the 
Report you file to accompany this bill. I thank you for your 
attention to this matter and look forward to swift passage of 
H.R. 1832.
            Sincerely,
                                           Bill Goodling, Chairman.
                                ------                                

                                     Committee on Commerce,
                                  Washington, DC, November 2, 1999.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Bill: Thank you for your letter regarding your 
Committee's jurisdictional interest in H.R. 1832, the Muhammad 
Ali Boxing Reform Act.
    In the past, our committees have worked cooperatively in 
the enactment of the Professional Boxing Safety Act, and I 
acknowledge your role as an additional committee of 
jurisdiction. I appreciate your cooperation in moving the bill 
to the House floor expeditiously and agree that your decision 
to forgo further action on the bill will not prejudice the 
Committee on Education and the Workforce with respect to its 
jurisdictional prerogatives on this or similar legislation. 
Further, I will support your request for conferees should this 
bill be the subject of a House-Senate conference. I will also 
insert a copy of your letter and this response in the 
Committee's report on the bill and the Congressional Record 
when H.R. 1832 is considered by the House.
    Thank you again for your cooperation.
            Sincerely,
                                              Tom Bliley, Chairman.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                 PROFESSIONAL BOXING SAFETY ACT OF 1996

           *       *       *       *       *       *       *



SEC. 2. DEFINITIONS.

  For purposes of this Act:
          (1) * * *

           *       *       *       *       *       *       *

          (10) State.--The term ``State'' means each of the 50 
        States, Puerto Rico, the District of Columbia, and any 
        territory or possession of the United States[.] , 
        including the Virgin Islands.
          (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.

           *       *       *       *       *       *       *


SEC. 4. BOXING MATCHES IN STATES WITHOUT BOXING COMMISSIONS.

  (a) No person may arrange, promote, organize, produce, or 
fight in a professional boxing match held in a State that does 
not have a boxing commission unless the match is supervised by 
a boxing commission from another State and subject to the most 
recent version of the recommended regulatory guidelines 
certified and published by the Association of Boxing 
Commissions as well as any additional relevant professional 
boxing regulations and requirements of such other State.
  (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).

           *       *       *       *       *       *       *


SEC. 6. REGISTRATION.

  (a) * * *
  (b) Identification Card.--
          (1) * * *
          (2) Renewal.--Each professional boxer shall renew his 
        or her identification card at least once every [2] 4 
        years.

           *       *       *       *       *       *       *

  (c) Health and Safety Disclosures.--It is the sense of 
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.

SEC. 7. REVIEW.

  (a) Procedures.--Each boxing commission shall establish each 
of the following procedures:
          (1) * * *
          (2) Procedures to ensure that, except as provided in 
        subsection (b), no boxer is permitted to box while 
        under suspension from any boxing commission due to--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) failure of a drug test; [or]
                  (D) the use of false aliases, or falsifying, 
                or attempting to falsify, official 
                identification cards or [documents.] documents; 
                or
                  (E) unsportsmanlike conduct or other 
                inappropriate behavior inconsistent with 
                generally accepted methods of competition in a 
                professional boxing match.
          (3) Procedures to review a suspension where appealed 
        by a [boxer] boxer, licensee, manager, matchmaker, 
        promoter, or other boxing service provider, including 
        an opportunity for a boxer to present contradictory 
        evidence.

           *       *       *       *       *       *       *


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 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 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.

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 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 14 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) FTC 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) FTC 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--
          (1) not required to file such information with such 
        State; and
          (2) required to file 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.

SEC. [9.] 17. CONFLICTS OF INTEREST.

  [No member] (a) Regulatory Personnel.--No member or employee 
of a boxing commission, no person who administers or enforces 
State boxing laws, and no member of the Association of Boxing 
Commissions may belong to, contract with, or receive any 
compensation from, any person who sanctions, arranges, or 
promotes professional boxing matches or who otherwise has a 
financial interest in an active boxer currently registered with 
a boxer registry. For purposes of this section, the term 
``compensation'' does not include funds held in escrow for 
payment to another person in connection with a professional 
boxing match. The prohibition set forth in this section shall 
not apply to any contract entered into, or any reasonable 
compensation received, by a boxing commission to supervise a 
professional boxing match in another State as described in 
section 4.
  (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.

SEC. [10.] 18. ENFORCEMENT.

  (a) Injunctions.--Whenever the Attorney General of the United 
States has reasonable cause to believe that a person is engaged 
in a violation of this Act, the Attorney General may bring a 
civil action in the appropriate district court of the United 
States requesting such relief, including a permanent or 
temporary injunction, restraining order, or other order, 
against the person, as the Attorney General determines to be 
necessary to restrain the person from continuing to engage in, 
sanction, promote, or otherwise participate in a professional 
boxing match in violation of this Act.
  (b) Criminal Penalties.--
          (1) Managers, promoters, matchmakers, and 
        licensees.--Any manager, promoter, matchmaker, and 
        licensee who knowingly violates, or coerces or causes 
        any other person to violate, any provision of this Act, 
        other than section 9(b), 10, 11, 12, 13, 14, or 16, 
        shall, upon conviction, be imprisoned for not more than 
        1 year or fined not more than $20,000, or both.
          (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.
          [(2)] (3) Conflict of interest.--Any member or 
        employee of a boxing commission, any person who 
        administers or enforces State boxing laws, and any 
        member of the Association of Boxing Commissions who 
        knowingly violates section [9] 17(a) of this Act shall, 
        upon conviction, be imprisoned for not more than 1 year 
        or fined not more than $20,000, or both.
          [(3)] (4) Boxers.--Any boxer who knowingly violates 
        any provision of this Act shall, upon conviction, be 
        fined not more than $1,000.
  (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.

SEC. [11.] 19. NOTIFICATION OF SUPERVISING BOXING COMMISSION.

  Each promoter who intends to hold a professional boxing match 
in a State that does not have a boxing commission shall, not 
later than 14 days before the intended date of that match, 
provide written notification to the supervising boxing 
commission designated under section 4. Such notification shall 
contain each of the following:
          (1) * * *

           *       *       *       *       *       *       *


SEC. [12.] 20. STUDIES.

  (a) Pension.--The Secretary of Labor shall conduct a study on 
the feasibility and cost of a national pension system for 
boxers, including potential funding sources.

           *       *       *       *       *       *       *


SEC. [13.] 21. PROFESSIONAL BOXING MATCHES CONDUCTED ON INDIAN 
                    RESERVATIONS.

  (a) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) * * *

           *       *       *       *       *       *       *


SEC. [14.] 22. RELATIONSHIP WITH STATE LAW.

  Nothing in this Act shall prohibit a State from adopting or 
enforcing supplemental or more stringent laws or regulations 
not inconsistent with this Act, or criminal, civil, or 
administrative fines for violations of such laws or 
regulations.

SEC. [15.] 23. EFFECTIVE DATE.

  The provisions of this Act shall take effect on January 1, 
1997, except as follows:
          (1) Section 9 shall not apply to an otherwise 
        authorized boxing commission in the Commonwealth of 
        Virginia until July 1, 1998.
          (2) Sections 5 through 9 shall take effect on July 1, 
        1997.

                            DISSENTING VIEWS

    We have a number of concerns regarding H.R. 1832, as 
reported by the Committee on Commerce.
    First, we take issue with sections 2 and 3 of the bill 
regarding the congressional findings and purposes. These 
sections unnecessarily denigrate promoters without there having 
been any formal fact finding investigation as to whether these 
statements are justified. We understand that what support there 
is consists principally of allegations from boxers and 
managers, who naturally are in an adverse economic relationship 
with promoters. To take these allegations as true, and to give 
these allegations the imprimatur of the United States Congress, 
is simply unfair without a formal independent fact finding 
investigation. These findings and purposes, to the extent they 
denigrate all promoters, are not necessary and we would ask 
that the inflammatory language be removed.
    Second, the legislation takes away a boxer's and promoter's 
freedom to contract. As Americans, one of the most fundamental 
freedoms which we enjoy is the freedom to contract if we 
determine that an agreement is in our best economic interest. 
Baseball players sign seven (7) year contracts, but this bill 
would limit a boxer's freedom to contract to five (5) years at 
the most and in certain instances, it would limit him to one 
(1) year, and in other instances, would prevent him from 
signing with a promoter altogether. While we can imagine 
certain situations where an uneducated boxer might be duped 
into signing an agreement which is not in his best economic 
interest, it seems to us that if the boxer is represented by a 
licensed attorney or a manager who is licensed by a state 
athletic commission, and the boxer and his attorney or manager 
want to sign a six-year deal with a promoter because they have 
determined that it is in their best interest, or if they want 
to sign with a promoter for two years so that they get a shot 
at the title, then this Congress should not stand in the way of 
their freedom to contract. Accordingly, I would propose an 
additional exception providing that the limitations on the 
freedom to contract do not apply if the boxer is adequately 
represented in his negotiations with the promoter.
    Third, the legislation states that a promoter shall not be 
entitled to receive any compensation in connection with a 
boxing match until it provides certain information to the 
boxing commission and the boxer. While we do not take issue 
with a promoter being required to provide relevant information, 
we simply do not see how you can stop a promoter from receiving 
the benefit of, for example, a letter of credit which is being 
used to pay the boxer his purse, nor do we see the wisdom of 
preventing the boxer from being paid simply because the 
promoter has not provided the required information. In other 
words, this section should be revised to impose an obligation 
on the promoter to provide relevant information and if he does 
not, there should be a reasonable sanction.
    Furthermore, we do not understand the logic of requiring a 
promoter to file every contract he has with a boxer with the 
commission. Suppose that a boxer has fought for a promoter 
twenty (20) times and in each contract the boxer gets clip 
rights that extend for ten (10) years. Under this provision, 
the promoter would have to file not only the bout agreement for 
the applicable bout, but each of the 20 other bout agreements 
with the commission. Also, a promoter may have a sponsorship 
deal with a boxer or a merchandise deal. It will be extremely 
burdensome on promoters to have to file all these contracts 
with the commission. The bottom line is that the promoter 
should have to file the applicable bout agreement for the bout 
and provide a written certification that there are no other 
agreements with the boxer regarding the match.
    We also do not understand the reasoning behind requiring 
the promoter to disclose to the boxer how much compensation or 
consideration a promoter has contracted to receive for a match. 
The boxer and the promoter's interests are adverse and the 
boxer is not entitled to this information. This information can 
also be misleading and make a boxer think that a promoter is 
actually retaining this revenue as profit. The promoter must, 
however, pay not only all of the boxers' purses from such 
revenue as well as any fees to other promoters, but also all of 
the other expenses of the bout, and then the promoter either 
makes a profit or incurs a loss on the fight.Additionally, the 
promoter has the overhead of his company which he must pay for a bottom 
line profit or loss. The boxer simply is not entitled to this 
information because he is not taking the risk of the promotion. If, 
however, the boxer is getting an upside payment or is receiving part of 
the profit from the promotion, then of course the promoter should have 
to disclose the relevant information to the boxer so that he can verify 
that he is receiving what he is entitled to.
    Fourth, we are concerned with section 5 of the bill because 
it would also eliminate the freedom to contract. We understand 
that for certain promotions, promoters, boxers and managers 
sometimes enter into joint venture arrangements whereby they 
agree to share their compensation. For example, in exchange for 
a piece of promoter's profit in a promotion, the boxer and 
manager may agree to share a portion of the purse. In other 
situations, the amount of the guaranteed purse is reduced in 
consideration for a piece of the upside after certain revenue 
targets are met. We believe that there is nothing wrong with 
this practice provided that the boxer is adequately 
represented. Accordingly, we would provide an exception to this 
section so that it is not applicable if the boxer is adequately 
represented by an attorney provided that the relationship 
between the promoter and the manager is disclosed to the boxer. 
This would allow for the flexibility to enter into more complex 
arrangements like joint ventures on promotions.
    Fifth, we take issue with section 6 of the bill with 
respect to the imposition of criminal penalties. We believe 
that the civil remedies are more than adequate and there has 
been no demonstration that criminal sanctions are warranted. If 
civil remedies subsequently prove to be inadequate, Congress 
can then address at that time the need for criminal sanctions. 
This bill generally affects the contractual rights of promoters 
and boxers and the remedy for a violation should be a 
contractual one, not criminal.
    Sixth, the bill as currently drafted only applies to 
promoters, yet the version which was passed by the Senate also 
imposed rules regulating the contractual relationship between 
broadcasters and boxers. It is well known that certain 
broadcasters have been entering into exclusive long term 
relationships with boxers. In these cases, the broadcasters 
become the de facto promoter of the boxer, but they are not 
licensed and do not have to disclose their contracts with the 
boxers or report to the athletic commissions. In certain well 
publicized instances, boxers who have signed with two different 
broadcasters have been precluded from fighting each other 
because neither broadcaster is willing to allow their boxer to 
fight on the other broadcaster's network. When this same 
situation arises between two rival promoters, the rules of the 
sanctioning organizations provides the mechanism of a purse 
offer, i.e., the public auction of the promotional rights to a 
fight, so that the boxers can fight each other. We submit that 
the rules adopted by the Senate with respect to broadcasters 
should not only be adopted here, but also they should be 
expanded to provide for same disclosures imposed on promoters 
to the athletic commissions. Additionally, we should create a 
mechanism, similar to a purse offer, so that the boxers who are 
signed with different broadcasters be allowed to fight each 
other.
    Finally, after soccer, boxing is probably the second most 
recognized sport internationally. Because of the global nature 
of the sport, we are very concerned that our rules will impose 
an undue burden on U.S. promoters, whereas foreign promoters 
will not be subject to these rules. These rules will place U.S. 
promoters at a disadvantage with their foreign competitors. For 
example, these rules will not prevent a foreign promoter's 
freedom to contract under the laws of a foreign country or 
prevent a foreign promoter from entering into more flexible 
financial arrangements with their boxers. We would urge that 
these rules be expanded to govern, to the extent possible, the 
activities of foreign promoters if they are exploiting bouts in 
the United States. This will help to level the playing field 
and will help to ensure that U.S. promoters do not take their 
promotions abroad.

                                   Edolphus Towns.
                                   Bobby L. Rush.