Ala. Admin. Code r. 165-X-4-.03

Current through Register Vol. 43, No. 1, October 31, 2024
Section 165-X-4-.03 - Bonds
(1) Promoter's License Surety Bond.
(a) Before any promoter's license is issued authorizing the promotion of toughman matches in Alabama, the applicant shall make and deliver to the commission a security bond executed by a surety corporation authorized to transact business in this state.
(b) Any and all bond applications shall be on a form provided by the Commission, and shall be accompanied by an enforceable power of attorney. The Commission may also require certificate of "good standing" issued by the Commissioner of Insurance.
(c) If any company issuing a bond shall be removed from doing business in this state, it shall be the duty of the Commissioner of Insurance to notify the Alabama Athletic Commission within 30 days.
(d) The bond shall be in such amount as the commission may determine based upon the payment of officials' fees, fees necessary to secure the proper medical supervision of any toughman show in Alabama, and/or the estimated potential damages, penalties, taxes or expenses resulting from promotional activities contemplated in Alabama.
(e) Whenever the commission shall determine that a previously approved bond has for any cause become insufficient, the commission may require an additional bond or bonds to be given, conforming with the requirements of these rules.
1. Unless the additional promoter's license bond or bonds are given within the time fixed by written demand therefore, or if the promoter's license bond of a licensee is canceled, the license of such person shall be summarily suspended without notice or hearing.
(2) Match Permit Bond.
(a) Before any match permit is issued authorizing the sale of tickets and the ancillary contracting necessary to promote a toughman contest in Alabama, the applicant shall make and deliver to the commission a security bond executed by a surety corporation authorized to transact business in this state. The purpose of the bond is to ensure that each Contestant competing in Alabama is paid their entire purse, and that full payment of other contractual liabilities is made.
(b) Any and all bond applications shall be on a form provided by the commission, and shall be accompanied by an enforceable power of attorney. The commission may also require a certificate of 'good standing' issued by the Commissioner of Insurance.
(c) If any company issuing a bond shall be removed from doing business in this state, it shall be the duty of the Commissioner of Insurance to notify the Alabama Athletic Commission within 30 days.
(d) The bond shall be in such amount as the commission may determine based upon the estimated contractual liabilities against the licensed promoter for damages and expenses resulting from non-payment of contract liabilities, including but not limited to the total amount of each competing Contestant's purse or other services contracted for or from promotional activities conducted within Alabama.
(e) Whenever the commission shall determine that a previously approved bond has for any cause become insufficient, the commission may require additional bond or bonds to be given, conforming with the requirements of these rules.
1. Unless the additional match permit bond or bonds are given within the time fixed by written demand therefor, or if the match permit bond of a licensee is canceled, the match permit of such person shall be summarily suspended and without notice or hearing.
(3) Match Permit Application.
1. Applications for a match permit must be made in writing and received by the Commission at least thirty (30) days in advance of the date for such toughman match, contest, or exhibition. Any licensed promoter who has held a toughman match, contest, or exhibition in the state within the previous twelve months may apply for subsequent match permits no less than 15 days in advance of the proposed date of each subsequent professional mixed martial arts match, contest, or exhibition.
2. Each match permit application shall be accompanied by a non-refundable cashier's check or money order in the amount of $250.00 and made out to the Commission.
3. A match permit fee will be calculated by the Commission. Match permit fee shall be calculated at five percent (5%) of gross receipts from ticket sales to the toughman match, contest, or exhibition. For television and broadcasts, match permit fee shall be calculated at three percent (3%) of gross receipts from television and broadcast revenue for the first one million dollars ($1,000,000) of revenue and one percent (1%) of the next two million ($2,000,000). Broadcast fees will cap at fifty thousand dollars ($50,000).
(i) Ticket sales include the face value all tickets, orders, and lots sold for the event, and the fair value or face value of any promotional tickets, orders, and lots sold or provided at no cost.
(ii) The promoter must complete and submit to the Commission a Match Permit Fee Form provided by the Commission at the conclusion of the match, contest, or exhibition. The Commission will calculate the Permit Fee and notify the promoter.
(iii) Two percent (2%) of tickets may be complimentary and exempt from the match permit fee.
4. Each application for a match permit shall be accompanied with an appropriate security bond as provided for in these rules.
5. Each match permit application should be accompanied with copies of all contracts with all participants and officials, and any other contracts which the promoter has entered into for the match, contest, or exhibition.
6. Applicants for a match permit will be notified of the date, time, and place of documents submitted by the applicant will be reviewed by the Commission.
(i) Applicants or their designated and licensed representative(s) may attend the meeting and answer any questions the Commission has concerning the proposed event.
(ii) The Commission shall notify the applicant that his or her application has been approved or denied within seven (7) days of the Commission's decision.
(4) Complaints and Actions to Recover Damages.
(a) Any person claiming that he or she has been damaged by a breach of the conditions of a bond given by a licensee as provided in these rules shall notify the Commission.
(b) The Commission may take disciplinary action against the licensee.
(c) Reports of unsanctioned events shall be logged on a complaint database and given a claim number. The Executive Director or other Commission appointed representative(s) may work with the Attorney General's Office and federal, state, and/or local law enforcement agencies to terminate illegal event.
(d) Complaint against a bout result.
1. A petition to change a decision or the ruling of the chief official shall be in writing and filed by a contestant or the contestant's manager within five (5) business days from the date the decision was rendered.
2. The Commission may hold a hearing to change the decision or the ruling of the chief official at any time within fourteen (14) days from the date the decision was written. A majority of the Commissioners shall be required prior to holding a hearing.
3. If the Commission determines that any of the above occurred with regards to any contest then the decision rendered shall be changed as the Commission may direct, and shall notify the national registry of the change.
(e) Complaints against a licensee. Finality of the Decision. A decision rendered at the end of any event is final and shall not be changed unless the Commission determines that any of the following occurred:
1. There was collusion or fraud affecting the result of any contest, or,
2. The compilation of the score cards of the referee and judges reveals a clerical or mathematical error which caused the decision to be given to the wrong mixed martial artist.
3. There was a violation of the laws or rules and regulations governing toughman events in this state which affected the results of any contest.
4. The chief official may in his or her discretion change a referee's decision if, in his or her judgment, a palpable and self-evident error has been committed.
5. Video Instant-Replay. When available, video instant-replay may be used to ensure the accuracy of a fight ending sequence and at no other point in the bout. Once video instant-replay is employed, the bout, match, or exhibition is over. When used, the Chief Inspector shall review whether the cause of the bout's end was by means of legal or illegal striking. Bouts ending due to illegal (intentional or unintentional foul) shall be resolved in the manner listed in chapter 165-X-4-.08 for each distinct type of foul. The secondary referee, outside the ring, may consult with the Chief Inspector on the correct outcome of the bout, but the decision rests solely with the Chief Inspector.

Ala. Admin. Code r. 165-X-4-.03

New Rule: Filed December 27, 2013; effective January 31, 2014.
Amended by Alabama Administrative Monthly Volume XXXVI, Issue No. 09, June 29, 2018, eff. 8/4/2018.

Authors: Matt Bledsoe, Brandon Owens, Joseph B. McCormick

Statutory Authority:Code of Ala. 1975, § 41-9-1020.