Department of Consumer Affairs California State Athletic Commission

Statutes and Regulations

CALIFORNIA CODE OF REGULATIONS
TITLE 4. BUSINESS REGULATIONS
DIVISION 2. STATE ATHLETIC COMMISSION

CHAPTER 1. PROFESSIONAL BOXING RULES

ARTICLE 11. ENFORCEMENT

§ 389. Appeal Procedures.

(a) A person who wishes to appeal either a fine issued pursuant to Section 18843 of the code or a temporary suspension issued pursuant to Section 18842 of the code, shall send a written request for a hearing on a form prescribed by the commission. The request shall be sent to the commission's headquarters and to the Office of the Attorney General at the address designated on the form. The form shall contain all of the following information:

(1) The person's name, address, telephone number, e-mail address if available.

(2) The date of the request.

(3) Type of license held and license number.

(4) A detailed statement showing grounds for reduction or dismissal of the fine or suspension, as applicable.

(5) A statement whether the requester is represented by an attorney. If the requester is represented by an attorney, the name, address, telephone number and e-mail address of the attorney.

(6) Whether the services of an interpreter are required and if so, for which language.

(7) The requester's signature.

The commission shall return to the requester without action any request that is incomplete because it lacks one or more of the items described above.

(b) Within 30 days after receipt of a complete request, the commission shall set the matter for hearing.

(c) A hearing shall not exceed one (1) hour. The time shall be divided evenly between the requester and the commission representative ("the parties"). Each party may make either an oral or a written statement of the case. The commission representative shall proceed first. If the requester elects to address the commission, the requester shall be placed under oath. The sequence of, and time limitations on, argument before the commission are as follows:

(1) First–the staff representative and/or deputy attorney general, who shall be limited to twenty minutes.

(2) Second–the requester and/or his or her legal counsel, who shall be limited to twenty minutes.

(3) Third–the rebuttal of the staff representative and/or deputy attorney general, which shall be limited to ten minutes.

(4) Fourth–the rebuttal of the requester and/or his or her legal counsel, which shall be limited to ten minutes.

(d) The commission bears the burden of proving his or her case by a preponderance of evidence.

(e) The commission shall serve the written decision on the parties not later than forty-five (45) calendar days after the matter has been submitted. The decision shall contain factual findings, legal conclusions, and an order describing the action taken by the commission at a duly noticed meeting.

(f) A request for hearing shall be deemed abandoned and the request dismissed if the party who appealed and requested a hearing fails to appear at a duly noticed meeting, unless the party demonstrates good cause for that failure to appear.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18842 and 18843, Business and Professions Code.

HISTORY:

1. New section filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

§ 390. Violations Of Laws Or Rules.

Any licensee who violates the laws of the State of California, with the exception of minor traffic violations, or the rules of the Athletic Commission, or who fails or refuses to comply with a valid order of a commission representative, or who conducts himself or herself at any time or place in a manner which is deemed by the commission to reflect discredit to boxing, may have his or her license revoked, or may be fined, suspended or otherwise disciplined in such manner as the commission may direct.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18870 and 18878, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section filed 12-16-94 pursuant to section 100, Title 1, California Code of Regulations (Register 94, No. 50).

§ 391. Dealing With Certain Persons Prohibited.

The commission may deny an application, or suspend or revoke any license if it finds that at any time the licensee or any partner, officer, director, stockholder, or employee thereof, in this state or elsewhere, (a) has engaged in illegal bookmaking or other illegal gambling activities, (b) has been convicted of a crime substantially related to the regulations of boxing, (c) who engages in illegal bookmaking or other illegal gambling activities, (d) who is a reputed underworld character, (e) who has been convicted of any such offense in any jurisdiction, (f) who is under suspension or revocation in any other state, or (g) is engaged in any activity or practices which are detrimental to the best interests of boxing.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18840, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§ 392. Dealing With Unlicensed Or Suspended Persons Prohibited.

No licensee shall enter into any agreement under the jurisdiction of the commission with any unlicensed person, nor shall any licensee have any such dealings related to boxing with any person or club whose license is currently under suspension, or revoked, or whose application for a license has been denied.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18843 and 18870, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§ 394. Records.

Every club and manager shall maintain a full, true and accurate set of books and records in connection with all licensed activities. These records and any other records required by statute or commission rule shall be kept for at least five years and shall be open to inspection and audit by representatives of the commission upon reasonable notice.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18642, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§ 395. Financial Reports.

As a part of any investigation conducted by the commission concerning the regulation of boxing in California and for good cause shown, upon written request by the commission a licensee or applicant for a license shall submit a written financial statement to the commission made under penalty of perjury which shall include an itemization of all assets and liabilities of the licensee or applicant and such other financial information as the commission may request.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18611, 18640, 18641, 18665, 18666, 18667, 18826 and 18849, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§ 396. Financial Interest.

No club or any member, stockholder, director or officer thereof or matchmaker or assistant matchmaker shall act directly or indirectly as manager of a boxer.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18848 and 18849, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§ 397. Advances To Boxer Or Manager.

Without prior written permission of the commission, no club shall, directly or indirectly, incur any indebtedness on behalf of a boxer or manager whereby such person is obligated to repay such indebtedness.

No club at any time shall, directly or indirectly, make any loan or advance to any manager.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18849, 18853 and 18854, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section filed 12-16-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 50).

§ 398. Licensees Must Report Sham Contests.

Any person, licensed by the commission who is approached with a request or suggestion that a sham or collusive contest be entered into or that the contest shall not be conducted honestly and fairly shall immediately report the matter to the commission.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18865, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§ 399. Procedure When License Denied Or Revoked.

Any applicant who has been denied an application for a license may not file a similar application until one year from the date of the last previous denial by the commission. Any application filed within the one year period may be denied without the necessity of a hearing.

Anyone who has had his license revoked may not petition for reinstatement or apply for a new license until one year after the date of such revocation. Any petition for reinstatement filed within the one year period may be denied without the necessity of a hearing.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642, 18840 and 18841, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

ARTICLE 12. PENSION PLAN

§ 400. Professional Boxer's Pension Plan.

The commission hereby restates the professional boxer's pension plan previously established by the commission. The commission may, in its discretion, contract with a private or public entity for the administration of such plan.

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§ 401. Definitions.

(a) Account. "Account" means either the participating boxer's regular account or refund account.

(1) Regular Account. "Regular Account" means the account maintained by the commission on the records of the Plan for each participating boxer representing allocations of contributions and forfeitures, adjusted for withdrawals, income, expenses and realized and unrealized gains and losses attributable thereto.

Each boxer's regular account shall be created as of the effective date of this restated Plan on May 1, 1996. An amount equal to the actuarial equivalent, or the present value of accrued benefit ("PVAB") of a participating boxer's benefit under the Boxer's Retirement Plan as of April 30, 1996 shall be allocated to the boxer's regular account on that date. This amount in the boxer's regular account shall be referred to as the participating boxer's "grandfathered PVAB balance."

(2) Refund Account. "Refund account" means an account maintained by the commission on the records of the Plan for each boxer who has incurred a break in service and who has made contributions to the Plan under the terms of this Article. Such account shall be created as a sub-account within the Pension Fund and shall exist until January 1, 2002, in accordance with the vesting provisions of this Plan.

(b) Accrued Benefit. "Accrued benefit" means the aggregate amount in all of a participating boxer's accounts and shall include the actuarial equivalent of any participating benefit under the Plan as of April 30, 1996.

(c) Actuarial Equivalent. "Actuarial equivalent" means the equivalent in value of the accrued benefit expected to be received based upon actuarial assumptions adopted from time to time by an enrolled actuary appointed by the commission.

(d) Beneficiary. "Beneficiary" means all persons entitled under the provisions of this Plan to receive benefits after the death of a participating boxer.

(e) Boxer. "Boxer" means a licensed professional boxer.

(f) Boxers' Pension Account. "Boxers' pension account" means the fund held by the commission in the boxers' pension account established pursuant to Section 18882 of the Code for the exclusive purpose of paying benefits under this Plan.

(g) Break In Service. "Break in service" occurs when a participating boxer fails to fight at least ten (10) scheduled rounds in California during any thirty-six (36) consecutive calendar months, after July 1, 1981, and prior to age 55. A participating boxer who suffers a break in service forfeits all credit earned for rounds fought up to that date unless such participating boxer is a covered boxer at the end of the plan year in which the break in service occurs. For purposes of this Article, a boxer's service in the armed forces of the United States in a time of war or national emergency shall not be counted in determining when a break in service occurs.

(h) Covered boxer. "Covered boxer" means a participating boxer who has satisfied the vesting requirements of section 405(a).

(i) Forfeiture. "Forfeiture" means the reallocation within the Plan of that portion of a participating boxer's regular account that is not vested prior to the date on which the boxer incurs a break in service.

(k) Participating Boxer. "Participating Boxer" means a licensed professional boxer who participates in a contest after July 1, 1981, and who is or may become eligible to receive a benefit under the Plan, or whose beneficiary may be eligible to receive any such benefit, and who has not incurred a break in service. A boxer who has incurred a break in service shall nonetheless be deemed a "participating boxer" for any year after that break in service in which the boxer participates in a contest.

(l) Plan Year. "Plan year" means the calendar year. The first plan year for this restated Plan shall be the period between May 1 and December 31, 1996.

(m) Suspense Account. "Suspense account" means the account provided for in the funding and allocation provisions of this Plan.

(n) Vested. "Vested" means that the participating boxer or the participating boxer's beneficiary has an unconditional, nonforfeitable right in the participating boxer's accrued benefit.

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of subsections (a)(1)-(a)(3) and (c) filed 7-11-94; operative 7-11-94 (Register 94, No. 28).

3. Repealer and new section heading, section and NOTE filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

4. Amendment of subsection (a), repealer of subsection (a)(2), subsection renumbering, and repealer of subsection (i) filed 6-17-97; operative 6-17-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 25).

5. Amendment of subsection (a)(2) filed 12-4-98 as an emergency; operative 12-4-98 (Register 98. No. 49). A Certificate of Compliance must be transmitted to OAL by 4-5-99 or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsection (a)(2) and amendment of Note refiled 4-2-99 as an emergency; operative 4-2-99 (Register 99, No. 14). A Certificate of Compliance must be transmitted to OAL by 8-2-99 or emergency language will be repealed by operation of law on the following day.

7. Reinstatement of section as it existed prior to 4-2-99 emergency amendment by operation of Government Code section 11346.1(f) (Register 99, No. 42).

8. Amendment of subsection (a)(2) and amendment of NOTE: filed 10-13-99; operative 10-13-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 42).

9. Amendment of subsection (k) filed 11-1-2001; operative 12-1-2001 (Register 2001, No. 44).

§ 402. Eligibility For Participation

Any professional boxer who fights in a commission-approved contest shall be required to have contributions made to the Plan and shall participate in allocations of contributions and forfeitures in the Plan beginning with the first fight in which such requirements are met. The boxer shall sign a waiver of privacy rights to the extent necessary to enable the commission to locate the boxer in order to assure the boxer's receipt of benefits under the Plan. Any boxer who was participating in the Plan prior to May 1, 1996 shall continue to participate in the Plan and share in allocations to the boxer's accounts under the terms of this article.

(a) Effect of Break In Service On Current Participation.

Any boxer who incurs a break in service prior to becoming a covered boxer shall cease to be a participating boxer in the Plan. If the participating boxer is a covered boxer pursuant to this Plan at the time he incurs a break in service, then such participating boxer's accounts shall be placed on inactive status, and the participating boxer shall not continue to share in the allocation of contributions but shall continue to receive allocations of the Plan's forfeitures and investment results.

(b) Determination of Eligibility.

The commission shall determine the eligibility of each boxer for participation in the Plan based upon information gathered for the commission by the commission staff. Each such determination shall be conclusive and binding on all persons. Any misrepresentation by a boxer, manager, promoter, or beneficiary shall be grounds for the denial, suspension or discontinuance of benefits, in whole or in part, or for the cancellation or recovery of benefit payments made in reliance thereon by the commission. Each participating boxer shall participate in the Plan until such time as the boxer incurs a break in service or begins receiving all or a portion of his accrued benefit from the Plan.

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and NOTE filed 4-26-96; operative 5-1-96 pursuant to Government Code Section 11343.4(d) (Register 96, No. 17).

§ 403. Funding And Contributions.

(a) Contributions.

Contributions shall be assessed as follows:

The promoter shall contribute 88 cents ($.88) on every ticket, excluding a working complimentary ticket as described in Section 264, up to a maximum contribution of $4,600 per show.

(b) Formula for Allocation of Contributions.

(1) One half (1/2) of the contributions for the plan year shall be allocated among the regular accounts of participating boxers who have not incurred a break in service as of the last day of the plan year in the proportion that each such boxer's scheduled rounds fought for the plan year bears to the total scheduled rounds fought in the plan year; and

(2) One half (1/2) of the contributions for the plan year shall be allocated among the regular accounts of participating boxers who have not incurred a break in service as of the last day of the plan year in the proportion that each such boxer's total purses for the plan year bears to the total purses paid for all fights fought by participating boxers in the plan year.

(c) Formula for Allocation of Forfeitures.

Contributions shall be allocated to each participating boxer's account on the last day of the plan year in the following proportions:

Forfeitures which become available in a plan year for allocation shall be allocated to each participating boxer's account on the last day of the plan year in the following proportions:

(1) One half (1/2) of the forfeitures shall be allocated among all regular accounts as of the last day of the plan year in the plan year in the proportion that each such regular account bears to the total regular accounts in the Plan; and

(2) One half (1/2) of the forfeitures shall be added to the boxer, promoter and manager contributions for the plan year and shall be allocated among the regular accounts of participating boxers who have fought in the current plan year according to the formula set forth in subsection (b) above.

(d) Forfeiture and Reallocation of Unvested Amounts.

If any participating boxer incurs a break in service prior to becoming a covered boxer, then such participating boxer's regular account shall be held in a suspense account on the records of the Plan after incurring such break in service until such time as it shall be forfeited and reallocated.

Suspense account balances shall be forfeited and reallocated under the Formula set forth in subsection (c) above, as of the last day of the plan year following the plan year in which the participating boxer completes a break in service.

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881 and 18882, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and NOTE filed 4-26-96; operative 5-1-96 pursuant to Government code section 11343.4(d) (Register 96, No. 17).

3. Amendment of subsection (a) and repealer of subsections (a)(1)-(a)(3) and (e)-(e)(4) filed 6-17-97; operative 6-17-97 pursuant to Government code section 11343.4(d) (Register 97, No. 25).

4. Amendment of subsection (a) and amendment of Note filed 7-23-99 as an emergency; operative 7-23-99 (Register 99, No. 30). A Certificate of Compliance must be transmitted to OAL by 11-22-99 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 7-23-99 order, including further amendment of subsection (a), transmitted to OAL 8-30-99 and filed 10-13-99 (Register 99, No.42).

6. Amendment of subsection (c)(2) filed 11-1-2001; operative 12-1-2001 (Register 2001, No. 44).

§ 404. Valuation And Earning.

(a) Valuation of The Pension Fund.

The assets of the pension fund shall be valued annually at fair market value on the last day of the plan year. The commission shall determine the net worth of the assets of the pension fund at their fair market value on the last day of the plan year.

(b) Order of Adjustment.

Subject to the provisions governing allocations of contributions and valuation, the commission shall adjust the accounts as of the last day of the plan year as follows, in the order stated:

(1) First, the accounts shall reflect proportionately any adjustment of fair market value of assets in the manner provided in subsection (c) below;

(2) Second, the commission shall allocate proportionately any income or loss in the manner provided in subsection (c) below;

(3) Third, the commission shall deduct all fees and expenses for the administration of the Plan;

(4) Fourth, the commission shall allocate contributions in the manner provided in Section 403(b);

(5) Fifth, the commission shall allocate forfeitures in the manner provided in Section 403(b).

(c) Allocation Of Investment Results.

As of the last day of each plan year, the income or loss attributable to the assets of the pension fund, reduced by expenses incurred since the last day of the prior plan year, shall be allocated to the accounts of the participating boxers who had unpaid balances in their accounts as of such date in proportion to the balances in such accounts as of the last day of the prior plan year, after reducing such prior plan year balances by amounts withdrawn or distributed since the last day of the prior plan year, if any.

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and NOTE filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

3. Amendment of subsection (b)(5) and repealer of subsection (b)(6) filed 6-17-97; operative 6-17-97 pursuant to Government Code section 11343.4(d) (Register 97, No.25).

§ 405. Vesting.

(a) Vesting.

A participating boxer shall become vested in the amount credited to the participating boxer's regular account when the participating boxer has:

(1) Fought in at least ten (10) scheduled rounds per calendar year during each of four (4) calendar years without an intervening break in service; and

(2) Has fought in at least seventy-five (75) scheduled rounds without a break in service.

(b) Scheduled Rounds for Vesting.

A participating boxer shall be credited for fighting in one (1) round for each scheduled round of professional boxing fought in California in a commission-approved bout as part of a contest in which at least one (1) round was commenced after June 30, 1978; provided however, that the boxer must fight in at least twenty (20) scheduled rounds in the thirty-six (36) calendar month period following July 1, 1981, in order to receive any credit for scheduled rounds fought beginning after June 30, 1978 but prior to July 1, 1981.

(c) Refund of Unvested Pre-1996 Boxer Contributions.

A separate refund account shall be created on the records of the Plan as of May 1, 1996, which shall contain all unvested boxer contributions made prior to May 1, 1996, for all boxers who have incurred a break in service as of April 30, 1996 under the terms of the Plan as it existed prior to such date. The commission will continue to invest and safeguard those assets within the investment vehicle in which it is investing the participating boxers and covered boxers accounts.

On or after May 1, 1996 a participating boxer who has not vested but who has contributed a portion of his purse (under the provisions of this Plan in this article in effect prior to May 1, 1996), and who has incurred a break in service may request a refund from the commission of the pre-1996 amounts contributed by him, plus 6% interest up to May 1, 1996 and plus his share of applicable earnings allocated to his account since that date. No boxer who has vested and become a covered boxer is eligible for such a refund. All amounts not claimed by these boxers before January 1, 2000, shall constitute forfeitures and shall be allocated in accordance with Section 403(c), in three (3) equal installments for the plan years ending December 31, 1999, December 31, 2000, and December 31, 2001.

(d) Lost Beneficiary.

If, according to the records of the commission, a participating boxer has reached age 50 and the participating boxer or his or her beneficiary has not made a claim for benefits, the participating boxer's accrued benefit shall be held until the last day of the third plan year after the participating boxer reached age 50, at which time it shall be reallocated pursuant to Section 403(c); provided, however, that if a claim is later made by the participating boxer or beneficiary for the forfeited benefit, the commission shall reinstate the amount of the vested account balance that had been forfeited, unadjusted by any gains or losses attributable to such amount. Such reinstatement shall be made from the contributions for such year of reinstatement, prior to the allocation of contributions to accounts for the year of reinstatement.

(e) Vesting of Pre-1996 Regular Account Balance.

Each participating boxer who is not a covered boxer as of May 1, 1996 shall continue to accrue credit towards vesting in his regular account balance under the terms of this Plan. In the event a participating boxer with a regular account balance attributable to pre-1996 contributions incurs a break in service before becoming a covered boxer, the portion of such boxer's regular account balance attributable to amounts other than boxer contributions, if any, shall be placed in the suspense account and shall be reallocated with other forfeitures under the terms of this restated Plan.

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY:

1. New section filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

2. Amendment of subsection (c) filed 12-4-98 as an emergency; operative 12-4-98 (Register 98. No. 49) A Certificate of Compliance must be transmitted to OAL by 4-5-99 or emergency language will be repealed by operation of law on the following day.

3. Amendment of subsection (c) refiled 4-2-99 as an emergency; operative 4-2-99 (Register 99, No. 14). A Certificate of Compliance must be transmitted to OAL by 8-2-99 or emergency language will be repealed by operation of law on the following day.

4. Reinstatement of section as it existed prior to 4-2-99 emergency amendment by operation of Government Code section 11346.1(f) (Register 99, No. 42).

5. Amendment of subsection (c) filed 10-13-99; operative 10-13-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 42).

6. Amendment of subsection (d) filed 8-30-2010; operative 9-29-2010 (Register 2010, No. 36).

§ 406. Determination Of Benefits.

(a) Measure of Benefits.

The benefit distributable to a covered boxer upon retirement or to the covered boxer's beneficiary in the event of the covered boxer's death, shall be the value of the participating boxer's accrued benefit as of the last day of the plan year coinciding with or next following the date of death or attainment of age 50.

(b) Nonliability.

The commission does not guarantee the pension fund, the participating boxers or their beneficiaries against loss of or depreciation in value of any right or benefit that any of them may acquire under the terms of this Plan. All of the benefits payable hereunder shall be paid or provided for solely from the pension fund.

(c) Methods of Payment.

The commission, with respect to any benefit, is authorized:

(1) To pay benefits directly from the pension fund in a lump sum or installments;

(2) To invest the amount of the accrued benefit in an installment contract or annuity for the benefit of the covered boxer or the participating boxer's beneficiary by conversion of existing contracts or otherwise. Such installment contract, endorsed as nontransferable, may be distributed to the covered boxer or the covered boxer's beneficiary;

(3) To distribute to the covered boxer the contracts on the covered boxer's life; in such event, if the vested interest of the covered boxer is less than the value of contracts to be distributed, then the commission may reduce their net value to the amount of the vested interest by making a policy loan or allowing the participating boxer to purchase the excess contract value; or

(4) Any combination of the preceding methods.

(d) Payment of Benefits.

(1) When a covered boxer either reaches age 50 or dies, the commission shall determine the boxer's accrued benefit on the last day of the plan year (or a valuation date as of the date the participating boxer became entitled to benefits hereunder, if the commission orders a special valuation to be made or if the accounts are segregated individual accounts). The covered boxer shall be provided with a nontransferable, fixed or variable installment contract of such type and from such insurer as the trustee shall select, payable over a period of years not to exceed the greater of thirty (30) years, the covered boxer's life expectancy or the joint expectancy of the covered boxer and the covered boxer's designated beneficiary. The payments shall be substantially equal in amount and shall occur at least annually.

(2) A covered boxer may, for good cause shown, petition the commission in writing to receive one of the following alternative methods of payment:

(a) Lump Sum

A single lump sum distribution of the covered boxer's accrued benefit in cash or in-kind.

(b) Installments.

Cash payments in quarterly installments of substantially equal designated amounts or of a designated percentage of the value of the covered boxer's accrued benefit payable over a five year term, which shall not exceed the covered boxer's remaining life expectancy or over the joint life expectancy of the covered boxer and the covered boxer's designated beneficiary.

(3) For purposes of subsection (d), "good cause" means the covered boxer's terminal illness or disability retirement, or the situation where it is objectively imprudent to purchase an annuity contract.

(e) Commencement Of Payment Of Benefits.

Distribution of the funds due to a covered boxer shall be made to such covered boxer as soon as is administratively feasible after the last day of the plan year in which the covered boxer reaches age 50 or dies or meets other applicable early retirement distribution criteria and without unreasonable delay unless due to causes beyond the control of the commission, its trustee or other appointed fiduciary.

(f) Vocational Early Retirement Benefit.

A covered boxer may ask the commission to convert all or a portion of the covered boxer's accrued benefit to a vocational education benefit. This request shall be made by the covered boxer on or after the covered boxer has reached the age of 36 and has retired from boxing, as evidenced by unconditional surrender or cancellation of the boxer's license. The commission may, in its discretion, grant such petition in whole or in part.

If the commission grants the petition, it may pay all or a portion of the covered boxer's accrued benefit for education or vocational training. The commission shall make such payments directly to an institution approved by the Bureau for Private Postsecondary and Vocational Education, or its equivalent in another state or jurisdiction, on a periodic basis as billed by the institution and where the institution submits evidence satisfactory to the commission that the boxer is maintaining satisfactory attendance at the institution.

(g) Amount of Death Benefits.

Upon the death of a covered boxer prior to age 50, the covered boxer's accounts shall become payable to the covered boxer's beneficiary.

(h) Designation Of Beneficiary.

Each participating boxer shall have the right to designate, on forms provided by the commission, a beneficiary or beneficiaries to receive the participating boxer's death benefits, and shall have the right, at any time, to revoke such designation or to substitute another such beneficiary or beneficiaries without the consent of any beneficiary; provided, however, that a married participating boxer and spouse must both designate any non-spouse beneficiary or beneficiaries. The commission shall file all beneficiary designations with the trustee and with the insurer insofar as they affect any insurance contracts on the participating boxer's life.

(i) Absence Of Valid Designation Of Beneficiaries.

If, upon the death of a covered boxer or beneficiary, there is no valid designation of beneficiary on file, the commission shall designate the covered boxer's survivors and issue as the beneficiary, in order of priority according to the California Probate Code.

The determination of the commission as to which persons, if any, qualify within the aforementioned categories shall be final and conclusive upon all persons. The commission may seek a declatory judgment of a court of local jurisdiction to determine the identity of beneficiaries and their respective shares at the expense of the beneficiary's accounts.

(j) Distributions To Incapacitated Covered Boxers.

If a covered boxer or beneficiary who is entitled to a payment under the Plan is deemed incapable of personally receiving the payment, the commission or its trustee may make all benefit distributions to the persons or institutions which are providing for the care and maintenance of the covered boxer or beneficiary and continue to make distributions to them until a duly appointed legal representative of the covered boxer or beneficiary makes a claim for the payment. Payments made pursuant to the terms of this subsection shall constitute a distribution to the covered boxer or beneficiary entitled thereto, and shall immediately discharge the commission, the Plan and the pension fund or any further liability therefor.

NOTE:Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881 and 18882, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and NOTE filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

3. Change without regulatory effect amending subsection (f) filed 7-21-98 pursuant to section 100, title 1, California Code of Regulations (Register 98, No. 30).

4. Amendment of subsections (a)(d)(1), (e) and (g) filed 5-12-2009; operative 5-12-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 20).

§ 407. Benefit Claims and Appeals.

(a) Request for Information.

Any participating boxer or beneficiary may request information from the commission concerning rights or benefits under this article. The executive officer or his designee shall respond, in writing, not to exceed thirty (30) days, unless the failure to respond results from matters reasonably beyond the Administrator's control.

(b) Claim For Benefits.

The commission shall inform a claimant in writing within 30 days after receiving a claim whether the claim is complete and includes all information and documents necessary to establish the claim. The commission shall provide a written decision within 60 days after receipt of a complete claim. A written decision on each claim for benefits shall be provided to the person making the claim. If the claim is denied in any respect, the decision shall set forth the specific reasons for such denial, written in plain English, including:

(1) Specific references to pertinent Plan provisions on which the denial is based:

(2) An explanation of the Plan's review procedure for denied claims.

(c) Review of Denied Claim.

Within ninety (90) days after receipt of decision denying a claim for benefits, the covered boxer or beneficiary making the claim or his/her authorized representative may file a written request for review. The commission shall notify the claimant that it has received the request for review and that the claimant may submit, within thirty (30) days from the date of the notification, a written statement and documents to give whatever facts or evidence the claimant feels bears upon the claim, review pertinent documents and records and submit issues and comments in writing. The commission shall make a full review of the record, including the written and oral information submitted by the claimant. Within thirty (30) days of the claimant's deadline to provide information, the commission shall render a decision and if the claim is again denied, the commission shall set forth the specific reasons for such denial written in plain English. Such decision shall contain the same information required by the subsection (b), above.

(d) Time.

The filing of a claim or receipt of a notice of decision and any event starting a time period shall be deemed to commence with personal delivery signed for by the claimant or by affidavit of personal service, or the date of actual receipt for certified or registered mail (or date returned if delivery is refused or a claimant has moved without giving the commission, or its agents a forwarding address).

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and NOTE filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§ 408. Plan Administration.

(a) Expenses.

The members of the commission shall receive no compensation from the boxer's pension account for administering the pension plan, but the boxers' pension account shall reimburse the commission for all necessary direct expenses incurred in carrying out its maintenance of the Plan. The commission shall pay any necessary direct expenses, including reasonable pension consulting fees incurred by it in administering the Plan out of the Plan's funds. All direct administrative expenses, including actuarial certification fees, trust accounting fees, and commission and expenses related to the investment of the boxer's Pension Account shall be directly assessable and shall be paid out of the boxer's pension accounts.

Expenses related to the restatement and implementation of this Article, including any extraordinary actuarial, design and consulting fees, costs of locating lost boxers' beneficiaries and costs of preparing summary plan descriptions in English and Spanish shall be reimbursed to the commission from the Plan, but only out of and limited to the funds that the commission's enrolled actuary certifies exceeds the cumulative grandfathered PVAB balances (actuarial equivalent of the Plan's benefit and refund obligations) as of April 30, 1996.

(b) Powers and Duties.

The primary responsibility of the commission under this article is to administer the Plan for the exclusive benefit of the boxers and their beneficiaries, subject to the specific terms of this article. The commission shall administer the Plan in accordance with its terms and shall have the power and discretion to construe the terms of this article and to determine all questions arising in connection with the administration, interpretation, and application of the Plan. Any such determination by the commission shall be conclusive and binding upon all persons. The commission shall have all powers necessary or appropriate to accomplish the duties under this Plan.

The commission shall be charged with the duties of the general administration of the Plan, including, but not limited to, the following:

(1) The discretion to determine questions relating to the eligibility of boxers to participate or remain a participating boxer or a covered boxer hereunder and to receive benefits under the Plan;

(2) To compute, certify, and direct the amount and the kind of benefits to which any covered boxer shall be entitled hereunder;

(3) To maintain all necessary records for the administration of the Plan;

(4) To interpret the provisions of the Plan consistent with the law and these rules;

(5) To determine the size and type of any contract to be purchased from any insurer, if any, and to designate the insurer from which such contract shall be purchased;

(6) To prepare and distribute to participating boxers information concerning their rights and obligations, including a summary plan description stating the requirements and benefits of the Plan in English and Spanish, using commonly spoken language to the extent possible, which shall be sent to each manager and to each boxer at appropriate times by the Pension Plan Committee or the commission staff, including at the time of initial licensure and renewal.

(7) To place the funds in the pension plan in trust and to select a trustee to invest and administer the funds.

(c) Annual Pension Report.

The executive officer shall present an annual pension report draft to the commission, which shall review it and issue a final annual pension report. The final annual pension report shall be a public document and shall include:

(1) The financial condition of the pension fund, including present value, net income or losses by source over the previous twelve (12) months, gains or losses realized by sales of assets or disposition;

(2) Number of currently covered boxers;

(3) The number of covered boxers drawing benefits and the total amount expended by category of benefits (i.e., normal retirement, death, annuity conversion, or vocational early retirement);

(4) The number of applicants denied requested benefits and the numbers and dispositions of requests for reconsideration and commission appeals;

(5) Itemized administrative or other deductions from the pension fund; and,

(6) Other information that the commission deems appropriate.

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY:

1. New section filed 4-26-96; operative 5-1-96 pursuant to Government code section 11343.4(d) (Register 96, No. 17).

§ 409. Transfer Or Assignment Of Benefits.

Subject to the exceptions provided below and as otherwise specifically permitted by law, neither the assets or benefits under this Plan nor the pension fund shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge. Any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void. Nor shall any such benefits in any manner be liable for or subject to the debts, contracts, liabilities or torts of the person entitled to such benefits.

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and NOTE filed 4-26-96; operative 5-1-96 pursuant to Government code section 11343.4(d) (Register 96, No. 17).

§ 410. Time For Filing Claim. [Repealed.]

NOTE: Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government code section 11343.4(d) (Register 96, No. 17).

§ 412. Amendment Of Plan. [Repealed.]

NOTE:Authority cited: Sections 18611 and 18882, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§ 413. Actuarial Reevaluation. [Repealed.]

NOTE:Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§ 415. Limitation Of Liability. [Repealed.]

NOTE:Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§ 416. Termination Of Plan. [Repealed.]

NOTE:Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY:

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

ARTICLE 13. TRAINING GYMNASIUMS

§ 495. Gymnasium License.

All professional boxers' training gymnasiums licensed by the commission shall post the license in a conspicuous place.

NOTE:Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18653, Business and Professions Code.

HISTORY:

1. New article 13 and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§ 496. Monthly Sparing Report.

To assure accuracy and accountability, owners of licensed professional boxing gymnasiums shall submit to the commission, on a monthly basis, the following information on licensed boxers or holders of sparring permits who have been knocked-out or injured at the gymnasium: the name and license number of each boxer, trainer and sparring partner, the nature of any injuries to the boxer or sparring partner, and whether headgear was used.

NOTE: Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18643 and 18654, Business and Professions Code.

HISTORY:

1. New section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).