Report 2012-117 Recommendation 10 Responses

Report 2012-117: State Athletic Commission: Its Ongoing Administrative Struggles Call Its Future Into Question (Release Date: March 2013)

Recommendation #10 To: Athletic Commission, State

To ensure that it accurately collects revenue, the commission should seek legislation, with the assistance of Consumer Affairs, that requires promoters to submit their broadcast contracts and authorizes the commission to impose penalties on those promoters who refuse to submit these contracts. Once the commission has received a sufficient number of broadcast contracts, it needs to conduct an analysis to determine whether the maximum fee of $25,000 on broadcast contracts is appropriate in light of the amounts of the contracts or whether the fee structure should be increased through a change in state law.

6-Month Agency Response

The Commission disagrees with this recommendation and we are respectfully submitting to the BSA that asking the Legislature to raise the TV tax cap is all the Commission is planning to do on this recommendation.

Further explantion can be found in the Commission's 90 day response.

California State Auditor's Assessment of 6-Month Status: Resolved

Although the Commission will not require promoters to submit broadcast contracts, the legislation that recently became law--Chapter 370, Statutes of 2013--increases the maximum fee for broadcast contracts and thus resolves our recommendation.

60-Day Agency Response

The commission does not believe that promoters will submit broadcast contracts; however, the commission is pursuing legislation to increase the maximum fee for broadcast contracts.

California State Auditor's Assessment of 60-Day Status: Pending

The commission is not pursuing legislation to require promoters to submit broadcast contracts. Instead, the commission is seeking legislation to increase the fees charged to promoters.

All Recommendations in 2012-117

Agency responses received after June 2013 are posted verbatim.