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RULE §61.40Responsibilities of the Promoter

(a) Bond and Insurance Requirements for Promoters

  (1) At the time of licensure and upon each renewal, a promoter applicant must submit to the department proof of financial responsibility by:

    (A) submitting a $15,000 surety bond written by a bonding company authorized to do business in the State of Texas guaranteeing payment of all obligations, except gross receipts taxes, arising out of events promoted by the applicant which shall remain in effect for four years after the effective cancellation date; and

    (B) submitting a $15,000 surety bond, written by a bonding company authorized to do business in the State of Texas, guaranteeing payment of gross receipts taxes owed for promoted events, which shall remain in effect for four years after the effective cancellation date.

  (2) The promoter shall provide insurance and pay all deductibles for contestants, to cover medical, surgical and hospital care with a minimum limit of $50,000 for injuries sustained while participating in a contest and $100,000 to a contestant's estate if he dies of injuries received while participating in a contest. The insurance premium and deductibles shall not be deducted from the contestant's purse. At least ten calendar days before an event, the promoter shall provide to the department for each event sponsored, a certificate of insurance showing proper coverage. The promoter shall supply to those participating in the event the proper information for filing a medical claim.

(b) A promoter shall:

  (1) Bear all financial responsibility for the event.

  (2) Provide the department written notice of all proposed event dates, ticket prices, and participants of the main event, at least 21 days before the proposed event date and obtain written department approval to promote the event before advertising or selling tickets. Promoters who have cancelled or postponed two events in sequence after having obtained department approval for the events will be required to pay the permit fee set out in §61.80(c) at the time the 21 day notice is filed. The fee will not be refunded.

  (3) Obtain written department approval for the fight card at least 10 working days before the event date in a manner prescribed by the department. The request shall contain the full legal name, address, date-of-birth, Texas contestant license number, Federal Identification number, weight, previous fight record (by supplying current results from the contestant's boxing registry recognized by the Professional Boxing Safety Act of 1996, 15 USC §§6301-6313 or from Mixed Martial Arts, LLC the national registry for MMA contestants), and number of rounds to be fought for each contestant. In addition, the department may require submission of certified birth certificates or other official evidence of identification.

  (4) Provide written notice to the department of any change in the card before the scheduled weigh-in. Notices announcing changes or substitutions in the card must also be conspicuously posted at the box office and announced from the ring before the opening bout.

  (5) Provide to the department, written notice of any change in the announced or advertised location, time or card cancellations before the scheduled weigh-in.

  (6) Provide two ringside physicians, to be assigned by the department, for each event.

  (7) Provide at least one physician to conduct pre-fight physicals. The department may require additional physicians depending on the event size. Provide a private area for the ringside physician to perform pre-fight examinations.

  (8) Assure that beverages are only allowed in paper or plastic cups at the event.

  (9) Immediately after the event, compensate the ringside physicians, timekeepers, judges, referees and contestants. Payment of percentage contracts shall be made when the amount can be determined. Payments that do not require additional accounting or auditing, shall be made in the presence of an authorized department representative.

  (10) Provide no less than two private dressing rooms of adequate size for the contestants, their licensed managers, and seconds, and separate dressing rooms for male and female contestants. Only working department employees, contract inspectors, media, physicians, working ring officials, promoter staff, manager, and seconds will be allowed in the dressing rooms.

  (11) Ensure that no alcoholic beverages or illegal drugs are in the dressing room.

  (12) Ensure the safety of the contestants, officials, and spectators.

    (A) There shall be a pre-fight plan and route to remove an injured contestant from the ring and arena. The promoter shall inform the department of the plan which shall include the name and location of a local hospital emergency room.

    (B) A sufficient number of security personnel shall be retained to maintain order.

  (13) Schedule no less than 24 or more than 60 rounds for each boxing event. No bout shall exceed 10 rounds, except a championship or title bout which shall not exceed 12 rounds. A sparring or exhibition bout shall not exceed three rounds.

  (14) Schedule no less than 6 or more than 15 bouts for each mixed martial arts event.

  (15) Ensure that the rules in §61.106 regarding equipment and gloves that apply to a particular type of event are followed and that each event is conducted in compliance with the following:

    (A) The ring apron shall be kept clear at all times of objects including, but not limited to: cameras, microphones, and advertisements. A separate camera platform at a neutral corner of the ring for use by camera operators may be provided. Camera operators may be allowed on the ring apron during rest periods, between bouts, or at the discretion of the executive director, or his designee.

    (B) No seats may be sold at the ring apron or within the technical zone.

    (C) The technical zone shall be set up for the department, according to the instructions of the executive director or his designee; provided that the guests of working officials may not enter the technical zone.

    (D) All emergency medical personnel and portable medical equipment shall be located within the technical zone during the event. There must be a resuscitator, oxygen, stretcher, a certified ambulance, neck brace, defibrillator, backboard, portable suction, and an emergency medical technician on site for all contests. The executive director, or his designee, may require additional medical personnel and equipment depending on the number of matches scheduled.

    (E) The judges' chairs shall be high enough that their shoulders shall be no lower than the ring floor. Physician ringside seats shall be in the neutral corner(s).

    (F) There shall be at least one, but no more than three, authorized promoter representative(s) at ringside at all times. Only the promoter's representative(s), department officials, the press, physicians, representatives of sanctioning bodies, and judges shall sit at the ringside tables. For purposes of this subparagraph, assignees are not representatives of the promoter.

  (16) Pay by check or money order the licensing fee of any contestant or manager who intends to participate in a scheduled combative sports event and who is not licensed at the time of the event weigh-in.

  (17) Supervise the activities of employees to ensure that promoted events are conducted in compliance with this chapter and applicable statutes.

  (18) Ensure that all advertising concerning an event he promotes accurately describes the event and does not include the names of any person or entity, other than the promoter, as a presenter of the event.

(c) Contract requirements between Promoter and Contestant.

  (1) The promoter for an event shall have contracts with contestants executed in triplicate on department forms showing the amount of guarantee or percentage promised the number and time limit of rounds, when and where the contestants are scheduled to appear, weight category, and other pertinent details governing the event. If applicable, the compensation section must include the specifics of television, radio and cable rights. The contract must define and provide for agreement on compensation if the opponent fails to appear at the weigh-in or bout. All contracts must state the dollar amount or percentage withheld for expenses, taxes, advances, sanctions or any other items the promoter seeks to subtract from a contestant's purse.

  (2) The promoter shall furnish one executed copy of the contract to the contestants or their managers, retain one, and submit one to the department.

  (3) All required information must be typed or legibly printed, and the contestant and promoter shall initial any changes or addenda.

(d) Tickets

  (1) All tickets shall have printed on each half, the price including any service surcharge or handling fee, and event date.

  (2) Roll tickets with consecutive numbers shall be sold only at the box office on the day of the event.

  (3) If there is no ticket manifest, tickets of different prices shall be printed on different colored ticket stock.

  (4) The promoter shall submit a verified report to the department of tickets delivered to any outlet or event sponsor. The report shall account for any known overprints, changes, or extras and must be on a department-approved form.

  (5) Tickets shall not be sold for more than the actual capacity of the location where the event is held.

  (6) All tickets shall be torn in half and one half returned to the ticket holder at the entrance gate. The other half shall be immediately deposited in a sealed container, where it is to remain until the department's representative witnesses the opening of the container. No one shall pass through the gate without having their ticket torn or shall occupy a seat unless holding a ticket half or have a working pass or credential with a specific seat assignment indicated on them. Passes and or credentials may not be sold or bartered.

  (7) If a main event or special added attraction is postponed or cancelled for any reason, the promoter shall promptly refund ticket sales. A special added attraction is the appearance of any person or persons at any combative sports event whose reputation or ability is calculated to increase attendance. Tickets in the hands of ticket services shall be returned to the promoter not later than when the box office at the combative sports event site has closed.

  (8) Promoters shall hold tickets of every description used for any event, including deadwood, for at least 30 days after the event. The tickets shall be kept in separate packages for each event for audit purposes.

  (9) The promoter shall be responsible to pay the gross receipts tax for complimentary tickets issued in excess of 25%.

  (10) Gross receipts taxes shall be calculated as 3% of the face value of all tickets sold plus 3% of the face value of all complimentary tickets issued in excess of 25%.

  (11) Tickets shall be accounted for after the event and the executive director, or his designee, may review the process, and may check the number of gate ticket containers and their seals or padlocks.

(e) A promoter shall submit to the department a tax report and a 3% gross receipts tax payment within three business days of an event.

(f) In the event of a departmental audit of a tax report authorized by §2052.152, of the Texas Occupations Code, a person subject to the financial audit shall make available used tickets, deadwood and additional exhibits to the department in the form and at a time established by the executive director, or his designee.

Source Note: The provisions of this §61.40 adopted to be effective October 1, 2000, 25 TexReg 9941; amended to be effective December 1, 2003, 28 TexReg 10445; amended to be effective February 1, 2005, 30 TexReg 378; amended to be effective February 1, 2006, 31 TexReg 481; amended to be effective December 1, 2007, 32 TexReg 8470; amended to be effective October 15, 2010, 35 TexReg 9081; amended to be effective March 1, 2013, 38 TexReg 1141; amended to be effective June 17, 2013, 38 TexReg 3781; amended to be effective January 1, 2014, 38 TexReg 9505; amended to be effective September 1, 2015, 40 TexReg 5145; amended to be effective March 1, 2022, 47 TexReg 910

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