1997 Regular Session
By: Senator(s) Gollott
Senate Bill 2694
AN ACT TO PROVIDE THAT A PERSON MUST BE LICENSED AS A PROMOTER BY THE MISSISSIPPI ATHLETIC COMMISSION IN ORDER TO PRODUCE OR STAGE A PROFESSIONAL BOXING MATCH IN MISSISSIPPI OR IN ORDER TO SHOW IN MISSISSIPPI A PROFESSIONAL BOXING MATCH BY A CLOSED CIRCUIT OR PAY-PER-VIEW TELECAST; TO PROVIDE THAT A PROMOTER WHO IS CONDUCTING CLOSED CIRCUIT OR PAY-PER-VIEW EVENT THAT IS TAXED PURSUANT TO THIS ACT SHALL POST A BOND CONDITIONED THAT THE PROMOTER WILL CONDUCT HIMSELF IN ACCORDANCE WITH THE LAWS OF THE STATE OF MISSISSIPPI, THE RULES AND REGULATIONS PRESCRIBED BY THE MISSISSIPPI ATHLETIC COMMISSION AND THAT HE WILL PROMPTLY PAY ALL TAXES WHEN DUE; TO PROVIDE THAT THE PROMOTER OF A CLOSED CIRCUIT OR PAY-PER-VIEW TELECAST SHALL OBTAIN A PERMIT FOR SUCH TELECAST FROM THE COMMISSION; TO PROVIDE FOR A TAX ON CLOSED CIRCUIT AND PAY-PER-VIEW TELECASTS TO BE COLLECTED BY THE MISSISSIPPI ATHLETIC COMMISSION; TO PROVIDE PENALTIES FOR VIOLATIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. As used in this act:
(a) "Boxing" means to compete with the fists.
(b) "Broadcast" means any audio or visual transmission sent by any means of signal within, into for from this state.
(c) "Closed circuit telecast" means any telecast which is not intended to be available for viewing without the payment of a fee, collected for or based upon such event viewed, for the privilege of viewing the telecast and includes pay-per-view telecasts.
(d) "Commission" means the Mississippi Athletic Commission.
(e) "Contest" means a boxing engagement in which the participants strive earnestly to win.
(f) "Face value" means the dollar value of a ticket or order, which value shall reflect the dollar amount that the customer is required to pay, or in the case of complementary tickets, would have been required to pay to purchase a ticket with equivalent seating priority, in order to view the match
(g) "Gross receipts" means the gross price charged for the sale or lease of broadcasting, closed circuit or pay-per-view rights without any deduction for commissions, brokerage fees, production fees, distribution fees, production fees, advertising or other expenses or charges, and shall include the face value of all tickets sold and complimentary tickets redeemed.
(h) "Match" means any boxing contest or exhibition and shall include, but not be limited to, sparring or practice sessions to which the public is admitted for a fee.
(i) "Person" means an individual, corporation partnership, association or other organization.
(j) "Professional" means a person who has received or competed for any purse or other article or value for participating in a match.
(k) "Promoter" means any person who produces arranges, stages, holds or gives any match in Mississippi involving a professional participant, or shows or causes to be shown in Mississippi a closed circuit or pay-per-view telecast of any match involving any professional participant whether or not the telecast originates in Mississippi.
SECTION 2. (1) No person may act as or perform the services of a promoter without first obtaining a license to do so from the commission. The fee for a promoter's license shall be as provided for in Section 75-75-105, Mississippi Code of 1972.
(2) A promoter's license may be issued to a natural person a corporation or a partnership; provided however, that each officer or partner shall submit an application for a permit and only those officers or partners whose applications are on file with the commission shall be entitled to negotiate or sign contracts regarding matches conducted or shown in this state.
SECTION 3. (1) Prior to conducting an event which is subject to the tax provided for in Section 5 of this act, a promoter shall enter into a bond payable to the commission in an amount of not less than Five Thousand Dollars ($5,000.00) or equal to the projected amount of the tax if the commission determines that the projected amount of the tax will be greater than Five Thousand Dollars ($5,000.00). The bond shall be conditioned that the promoter will conduct himself in accordance with the laws of the State of Mississippi, that he will comply with the rules and regulations prescribed by the commission, and that he will promptly pay all taxes due pursuant to Section 5 of this act.
(2) As an alternative to entering into a bond as required by this section, a promoter may, subject to the same conditions of conduct required for bonds, deposit with the commission the equivalent amount of the bond required in cash or securities. The only securities allowable for this purpose are those which may legally be purchased by a bank or for trust funds, having a market value not less than that of the required bond. The deposit made pursuant to this section shall be returned to the promoter sixty (60) days after the event for which it was posted if all the conditions of conduct have been met by the promoter.
SECTION 4. The promoter of a closed circuit or pay-per-view telecast of a professional boxing match must first apply for, and the commission must approve, a permit for such a telecast. The application for a permit shall be on forms prescribed by the commission and shall contain the date of the broadcast, the origination address of the broadcast, a statement that the applicant acknowledges responsibility for the payment of taxes to the commission, the time frame by which the post-event tax reports must be filed, the portion of the closed circuit and pay-per-view rights for which the promoter is acknowledging responsibility and such other information as the commission may consider necessary to carry out the provisions of this act. There shall be no charge by the commission for a permit issued for a closed circuit or pay-per-view telecast. The permit shall be filed at least thirty (30) days prior to the date of the broadcast.
SECTION 5. (1) If the Mississippi distribution rights for a closed circuit or pay-per-view telecast that is to be viewed in this state are in whole owned by, sold to, acquired by or held by any person who intends to or subsequently sells or in some other manner extends such rights in part to another, then such person shall be considered to be a promoter and shall, prior to the telecast, obtain a license to act as such from the commission; provided, however, that the commission may provide by rule, for additional promoters to participate in the distribution rights and share in the liability for tax payment pursuant to this section. Closed circuit and pay-per-view telecasts of a boxing match shall not be telecast from, or into Mississippi except under the auspices of a promoter who has received a permit from the commission to act as a promoter in this state and such promoter shall be responsible for filing the appropriate reports and tax payments with the commission.
(2) In the case of closed circuit telecasts other than pay-per-view, the promoter shall notify the commission of the names and addresses of all facilities to or through which the closed circuit telecast will be shown fourteen (14) days prior to the date of the closed circuit event, and shall provide daily updates to the commission of any additions and deletions of facilities.
(3) Any person or facility owner or operator intending to show the closed circuit telecast, whether or not an admission fee is charged, shall receive authorization to show the telecast for the promoter prior to the telecast. The showing of a closed circuit telecast without the authorization of the promoter is prohibited.
(4) In the case of facilities at or through which the closed circuit telecast was shown, other than a system operator's pay-per-view facilities, the promoter shall, within eight (8) calendar days after the telecast, file with the commission a written report containing the name, address, telephone number, contact person and the details of the payment arrangement for the rights to receive the telecast for each facility to which the broadcast was transmitted. The written report shall be accompanied by a tax payment in an amount equal to five percent (5%) of the total amount paid to the promoter for the right to broadcast the telecast. The commission may require the owner or operator of the facility where the telecast is being shown to file a report containing the information regarding the amount paid to the promoter for the right to broadcast the telecast, the quality of the audio and video signal and such other information as the commission may require.
(5) In the case of a system operator's pay-per-view facilities at or through which a closed circuit telecast was shown, the promoter shall, within fifteen (15) calendar days following receipt of a notice of tax payment due by the commission, pay to the commission a tax payment in an amount equal to five percent (5%) of the total gross receipts excluding any federal, state or local taxes. The commission shall require the system operator to file reports containing information regarding the number of orders sold and the price charged for such orders and such other information as the commission shall require.
(6) Taxes collected by the commission pursuant to this section shall be deposited into the special fund created pursuant to Section 75-75-114, Mississippi Code of 1972.
SECTION 6. Any promoter, facility owner or operator, or system operator who intentionally makes a false or fraudulent report required pursuant to this act shall be guilty of a misdemeanor, and, upon conviction thereof, shall be punished as provided in Section 99-19-31, Mississippi Code of 1972.
SECTION 7. Any promoter, facility owner or operator or system operator who intentionally fails to make a report of to pay the taxes as required by this act shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished as provided by Section 99-19-31.
SECTION 8. This act shall take effect and be in force from and after July 1, 1997.