HOUSE BILL No. 4295

 

February 17, 2011, Introduced by Reps. Agema, Hooker, Pettalia, Rendon, Bumstead, Huuki, Tyler, Forlini, Glardon, Zorn, Foster, LeBlanc, Meadows, Potvin, Santana and Womack and referred to the Committee on Regulatory Reform.

 

     A bill to regulate amateur mixed martial arts; to create

 

certain commissions and provide certain powers and duties for

 

certain state agencies and departments; to license and regulate

 

certain persons engaged in, and connected to, the business of

 

amateur mixed martial arts and certain persons conducting certain

 

contests and exhibitions; to confer immunity under certain

 

circumstances; to provide for the conducting of certain tests; to

 

assess certain fees and fines; to create certain funds; to

 

promulgate rules; and to provide for penalties and remedies.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"amateur mixed martial arts regulatory act".

 

CHAPTER 1


 

     Sec. 10. As used in this act:

 

     (a) "Amateur" means an individual mixed martial artist who is

 

not competing and has never competed in a mixed martial arts

 

contest for a money prize or who is not competing and has never

 

competed with or against a professional in a mixed martial art

 

contest for a prize.

 

     (b) "Brazilian ju-jitsu", also known as "Gracie ju-jitsu",

 

means a martial art developed in Brazil by the Gracie family during

 

the mid-twentieth century with a major emphasis on ground fighting

 

and grappling.

 

     (c) "Choke" means a submission technique that restricts blood

 

flow in the carotid arteries, resulting in a competitor's either

 

tapping out or losing consciousness. Some of the most frequently

 

employed chokes are the guillotine choke, rear-naked choke, leg

 

triangle choke, and arm triangle choke.

 

     (d) "Commission" means the amateur mixed martial arts

 

commission created in section 21.

 

     (e) "Complainant" means a person who has filed a complaint

 

with the department alleging that a person has violated this act or

 

a rule promulgated or order issued under this act.

 

     (f) "Contestant" means an individual who competes in an

 

amateur mixed martial arts contest or performs or demonstrates

 

mixed martial arts in an amateur mixed martial arts exhibition.

 

     (g) "Department" means the department of energy, labor, and

 

economic growth.

 

     (h) "Director" means the director of the department.

 

     (i) "Employee of the department" means an individual employed


 

by the department or a person under contract to the commission

 

whose duty it is to enforce the provisions of this act or rules

 

promulgated or orders issued under this act.

 

     (j) "Fish-hooking" means the action of hooking or grasping and

 

pulling the inside of an opponent's cheek so as to control his or

 

her head movement.

 

     (k) "Freestyle wrestling" means an Olympic grappling sport

 

that permits contestants to attack their opponent above and below

 

the waist.

 

     (l) "Fund" means the amateur mixed martial arts fund created in

 

section 22.

 

     (m) "Good moral character" means good moral character as

 

determined and defined under 1974 PA 381, MCL 338.41 to 338.47.

 

     (n) "Grappling" means a technique of throwing, locking,

 

holding, and wrestling, as opposed to kicking and punching.

 

     (o) "Greco-Roman wrestling" means an Olympic grappling sport

 

in which all holds are applied above the waist in an attempt to

 

throw the opponent.

 

     (p) "Ground and pound" means a term that describes the barrage

 

of strikes delivered by the contestant who is in his or her

 

opponent's guard or in the mount position.

 

     Sec. 11. As used in this act:

 

     (a) "Hammer-fist" means a strike with the small finger side of

 

the fist, as if holding a hammer.

 

     (b) "Ju-jitsu" means gentle art, a traditional Japanese self-

 

defense that includes kicking, striking, kneeing, throwing,

 

choking, and joint locks.


 

     (c) "Judo" means the gentle way, a grappling art created by

 

Jigoro Kano, based on the techniques of ju-jitsu.

 

     (d) "Kickboxing" means a striking sport that permits punches,

 

kicks, and knees.

 

     (e) "Licensed professional promoter" means a person who holds

 

a current license as a promoter under the Michigan unarmed combat

 

regulatory act, 2004 PA 403, MCL 338.3601 to 338.3663.

 

     (f) "Mixed martial arts" means a general term that describes

 

the convergence of techniques from a variety of combative sports

 

disciplines, including boxing, wrestling, judo, ju-jitsu,

 

kickboxing, and others. Mixed martial arts techniques include the

 

use of Brazilian ju-jitsu, chokes, freestyle wrestling, grappling,

 

pankration, Greco-Roman wrestling, shooting, ground and pound,

 

hammer-fist, judo, ju-jitsu, kickboxing, and muay Thai. Mixed

 

martial arts techniques do not include the use of fish-hooking and

 

spiking.

 

     (g) "Muay Thai" means a pure striking art in which blows are

 

delivered with the hands, feet, knees, and elbows.

 

     (h) "Pankration" means an ancient style of Greek wrestling and

 

boxing in which kicks, throws, and joint locks are used.

 

     (i) "Participant" means a referee, judge, matchmaker, or

 

timekeeper, a contestant, or a manager or second of a contestant.

 

     (j) "Physician" means that term as defined in section 17001 or

 

17501 of the public health code, 1978 PA 368, MCL 333.17001 and

 

333.17501.

 

     (k) "Professional" means an individual who is competing or has

 

competed in the past in any professional sport for a money prize.


 

     (l) "Promoter" means any person who produces or stages any

 

contest or exhibition of amateur mixed martial arts, but does not

 

include the venue where the exhibition or contest is being held

 

unless the venue contracts with the individual promoter to be a co-

 

promoter.

 

     (m) "Respondent" means a person against whom a complaint has

 

been filed including a person who is or is required to be licensed

 

under this act.

 

     (n) "Rule" means a rule promulgated under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (o) "School", "college", or "university" does not include an

 

institution formed or operated principally to provide instruction

 

in amateur mixed martial arts and other sports.

 

     (p) "Shoot" means a wrestling technique in which a competitor

 

attempts to capture his or her opponent's legs and take him or her

 

off his or her feet.

 

     (q) "Spike" or "spiking" means, after lifting and inverting an

 

opponent, attempting to slam him or her headfirst into the canvas.

 

     (r) "Strikes" means a cumulative number of punches

 

administered by a contestant to his or her opponent.

 

CHAPTER 2

 

     Sec. 20. This act does not apply to any of the following:

 

     (a) Amateur wrestling.

 

     (b) Amateur martial arts sports or activities held by a public

 

or private school.

 

     (c) Contests or exhibitions conducted by or participated in

 

exclusively by an agency of the United States government or by a


 

school, college, or university, or an organization composed

 

exclusively of those entities, if each contestant is an amateur.

 

     Sec. 21. (1) The amateur mixed martial arts commission is

 

created in the department. The commission shall consist of 7 voting

 

members appointed by the governor. The purpose of the commission is

 

to administer, enforce, and regulate a program of amateur mixed

 

martial arts.

 

     (2) The commission is an independent and autonomous entity

 

within the department. The department shall control budgeting,

 

procurement, human resources, information technology, and related

 

management functions of the commission.

 

     (3) The commission shall consist of the director, serving as a

 

nonvoting ex officio member of the commission, and 7 voting members

 

appointed by the governor with the advice and consent of the

 

senate, as follows:

 

     (a) Four voting members who are licensees under this act.

 

However, subject to subsection (4), an initial member of the

 

commission who meets any of the following is considered a licensee

 

for purposes of this subdivision:

 

     (i) Is certified or otherwise approved by a national

 

organization that certifies or otherwise approves individuals in

 

the amateur mixed martial arts.

 

     (ii) Has actively engaged in amateur mixed martial arts or

 

taught in an educational institution that prepares applicants for

 

licensure, or a combination of both, for not less than the 2 years

 

immediately preceding his or her appointment.

 

     (b) Three voting members who are members of and represent the


 

general public.

 

     (4) Beginning 3 years after the effective date of this act, an

 

initial member of the commission described in subsection (3)(a)(i)

 

or (ii) is not considered a licensee for purposes of subsection

 

(3)(a) unless he or she has obtained a license under this act

 

within that period.

 

     (5) The governor shall appoint the initial members of the

 

commission to serve for the following terms of office:

 

     (a) Two of the members who are licensees and 1 of the members

 

representing the general public, 4 years.

 

     (b) One of the members who is a licensee and 1 of the members

 

representing the general public, 3 years.

 

     (c) One of the members who is a licensee and 1 of the members

 

representing the general public, 2 years.

 

     (6) Except as provided in subsection (5), members of the

 

commission shall serve for a term of 4 years.

 

     (7) Five members of the commission constitute a quorum for the

 

exercise of the authority of the commission. The agreement of at

 

least 4 of the members, or the agreement of a majority of those

 

members who have not participated in an investigation or

 

administrative hearing regarding a matter before the commission, is

 

necessary for a commission action or decision.

 

     (8) While serving as a member of the commission, an individual

 

shall not promote or sponsor any contest or exhibition of amateur

 

mixed martial arts or have any financial interest in the promotion

 

or sponsorship of any contest or exhibition of amateur mixed

 

martial arts. However, this prohibition does not apply to a member


 

involved in a charity event promoting the sport or in an awards

 

event naming the best in sport.

 

     (9) The commission shall meet at least 4 times per year and

 

shall in the discretion of the chair schedule additional interim

 

meetings.

 

     (10) The records of the commission are subject to the freedom

 

of information act, 1976 PA 442, MCL 15.231 to 15.246.

 

     (11) Meetings of the commission are subject to the open

 

meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     Sec. 22. (1) The commission shall elect 1 of its members as

 

the chair of the commission. The commission may have and use a

 

seal. The department may promulgate rules for the administration of

 

this act, but only after first consulting with the commission. The

 

commission may request the department to promulgate a rule under

 

section 38 of the administrative procedures act of 1969, 1969 PA

 

306, MCL 24.238. Notwithstanding the time limit provided for in

 

section 38 of the administrative procedures act of 1969, 1969 PA

 

306, MCL 24.238, the department shall respond in writing to any

 

request for rule promulgation by the commission within 30 calendar

 

days after a request. The response shall include a reason and

 

explanation for acceptance or denial of the request.

 

     (2) An amateur mixed martial arts fund is created as a

 

revolving fund in the state treasury. The director shall administer

 

the fund. The director shall use the money in the fund only for the

 

costs of enforcement of this act and for any costs associated with

 

the administration of this act, including, but not limited to,

 

reimbursing the department of attorney general for the reasonable


 

costs of services provided to the department under this act. Money

 

remaining in the fund at the end of the fiscal year and interest

 

earned shall be carried forward into the next fiscal year and shall

 

not revert to the general fund. The department shall deposit into

 

the fund all money received from license fees, regulatory and

 

enforcement fees, event fees, and administrative fines imposed

 

under this act and money received from any other source. The

 

department is the administrator of the fund for auditing purposes.

 

     (3) Annually, the legislature shall fix the per diem

 

compensation of the members of the commission. The department shall

 

reimburse a commission member for travel or other expenses incurred

 

in the performance of an official function pursuant to the

 

standardized travel regulations of the department of technology,

 

management, and budget.

 

     (4) The commission may affiliate with any other state or

 

national mixed martial arts commission or athletic authority. If

 

approved by the director, the commission may enter into any

 

appropriate reciprocity agreements with those commissions or

 

authorities.

 

     (5) The commission and department are vested with supervision,

 

control, and jurisdiction over all amateur mixed martial arts

 

contests or exhibitions that are conducted, held, or given in this

 

state. Except for a contest or exhibition that is exempt from this

 

act, a person shall not conduct, hold, or give a contest or

 

exhibition in this state except in compliance with this act.

 

     (6) In consultation with the commission, the director shall

 

promulgate the following rules:


 

     (a) Rules to establish the procedures and standards of the

 

conduct of amateur mixed martial arts contests or exhibitions under

 

this act. The rules may, in whole or in part, adopt by reference

 

any existing standards considered appropriate by the director and

 

the commission.

 

     (b) Rules to impose annual and participant license fees for

 

participants. The participant license fee for a contestant shall

 

not exceed $20.00 for a contest or exhibition.

 

     (c) Rules for the application and approval process for

 

promoters under section 34.

 

     (d) Rules for certain drug and disease tests and summary

 

suspension procedures under section 47(2).

 

     (7) The department shall promulgate rules to address all of

 

the following:

 

     (a) Number and qualifications of ring officials required at

 

any exhibition or contest.

 

     (b) Powers, duties, and compensation of ring officials.

 

     (c) Qualifications of licensees.

 

     (d) Any necessary standards designed to accommodate federally

 

imposed mandates that do not directly conflict with this act.

 

     (e) A list of enhancers and prohibited substances, the

 

presence of which in a contestant is grounds for suspension or

 

revocation of a license or other sanctions.

 

CHAPTER 3

 

     Sec. 30. (1) A person shall not engage in an activity

 

regulated under this act unless the person is licensed by the

 

department to engage in that activity or unless the person is


 

exempt from licensure under this act.

 

     (2) A person that violates subsection (1) is guilty of a

 

misdemeanor punishable by a fine of not more than $500.00 or

 

imprisonment for not more than 93 days, or both.

 

     (3) A person that violates subsection (1) a second or any

 

subsequent time is guilty of a misdemeanor punishable by a fine of

 

not more than $1,000.00 or imprisonment for not more than 1 year,

 

or both. A person that knowingly allows a professional to

 

participate as a contestant in an amateur mixed martial arts

 

contest with an amateur is guilty of a felony punishable by a fine

 

of $10,000.00 per incident or imprisonment for not more than 3

 

years, or both.

 

     (4) An affected person may maintain injunctive action in a

 

court of competent jurisdiction to restrain or prevent a person

 

from violating subsection (1). If successful in obtaining

 

injunctive relief, the affected person is entitled to actual costs

 

and attorney fees. As used in this subsection, "affected person"

 

means a person directly affected by the actions of a person

 

suspected of violating this act and includes, but is not limited

 

to, the commission, the department, or a member of the general

 

public.

 

     (5) An investigation may be conducted by the department to

 

enforce this act. A person that violates this act is subject to the

 

penalties and remedies described in this section and section 43.

 

     (6) The remedies under this section are independent and

 

cumulative. The use of a remedy by a person under this section does

 

not bar the pursuit of any other lawful remedy by that person or


 

the pursuit of a lawful remedy by any other person.

 

     Sec. 31. By filing an application for licensure, an applicant

 

does both of the following:

 

     (a) Certifies his or her general suitability, character,

 

integrity, and ability to participate, engage in, or be associated

 

with amateur mixed martial arts contests or exhibitions. The burden

 

of proof is on the applicant to establish to the satisfaction of

 

the commission that the applicant is qualified to participate in

 

mixed martial arts amateur contests or exhibitions.

 

     (b) Accepts the risk of adverse public notice, embarrassment,

 

criticism, financial loss, or other action with respect to his or

 

her application and expressly waives any claim for damages as a

 

result of any adverse public notice, embarrassment, criticism,

 

financial loss, or other action. Any member of the commission or

 

any witness testifying under oath regarding an application and

 

investigation of the applicant is immune from civil liability for

 

libel, slander, or any other tort in connection with any written or

 

oral statement made by that person.

 

     Sec. 32. A person shall not hold or conduct an amateur mixed

 

martial arts contest or exhibition in this state without a

 

promoter's license issued by the department under section 33.

 

     Sec. 33. (1) An application for a promoter's license shall be

 

in writing and shall include the legal name, street address, and

 

telephone number of the applicant and any other information

 

reasonably required by the department. If the applicant is a

 

licensed professional promoter, a copy of his or her license under

 

the Michigan unarmed combat regulatory act, 2004 PA 403, MCL


 

338.3601 to 338.3663.

 

     (2) An applicant for a promoter's license who is not a

 

licensed professional promoter shall demonstrate good moral

 

character to receive a license. If the applicant is denied a

 

license due to a lack of good moral character, the applicant may

 

petition the commission for a review of the decision under section

 

46.

 

     (3) A promoter shall apply for and obtain an annual license

 

from the department in order to present a program of amateur mixed

 

martial arts contests or exhibitions. The annual license fee is

 

$300.00. Unless the applicant is a licensed professional promoter,

 

the department shall request, and the applicant shall provide, any

 

information the commission determines is necessary to ascertain the

 

financial stability of the applicant.

 

     (4) If an applicant is a licensed professional promoter, the

 

department shall issue a promoter license to the applicant if the

 

applicant submits an application, including a copy of the

 

applicant's license under the Michigan unarmed combat regulatory

 

act, 2004 PA 403, MCL 338.3601 to 338.3663, and the application

 

processing fee described in section 34(2)(a).

 

     (5) For the purpose of assuring the integrity of the sport,

 

the public interest, and the welfare and safety of the

 

participants, each promoter shall pay a regulatory and enforcement

 

fee of 2% of the gross ticket sales or $300.00, whichever is

 

greater, for each amateur mixed martial arts contest or exhibition

 

presented by the promoter during the 1-year period beginning on the

 

effective date of this act. The promoter shall submit a


 

standardized reporting form of gross ticket sales and fee, in the

 

form determined by the department, to the department not less than

 

5 business days after the event date. The department shall deposit

 

the fee into the fund created in section 22. At the end of the 12-

 

month period described in this subsection, the department shall

 

report to the legislature the amount of revenue generated by the

 

fee imposed under this subsection.

 

     (6) After the expiration of the 1-year period described in

 

subsection (5), a promoter shall pay an event fee, in an amount

 

determined by the department, to pay for the inspection and the

 

officials at each event.

 

     Sec. 34. (1) The director, in consultation with the

 

commission, may promulgate rules for the application and approval

 

process for promoters. Until the rules are promulgated, the

 

applicant shall comply with the standards described in subsection

 

(2).

 

     (2) The rules regarding the application process shall include

 

at least the following:

 

     (a) An initial application processing fee, in an amount

 

sufficient to cover the costs of processing, but not less than

 

$300.00.

 

     (b) A requirement for disclosure of background information by

 

the applicant if the applicant is an individual, or by the

 

principal officers or members and individuals who have at least a

 

10% ownership interest if the applicant is any other legal entity,

 

with emphasis on the applicant's business experience.

 

     (c) Information from the applicant that is not more than 7


 

years old concerning past and present civil lawsuits, judgments,

 

and filings under the bankruptcy code.

 

     (d) Any other relevant and material information considered

 

necessary by the director after consultation with the commission.

 

     (3) As part of the approval process for promoters, the

 

commission may require that the applicant or his or her

 

representative is present at the commission meeting at which a

 

review described in section 33(2) or 46 is considered.

 

CHAPTER 4

 

     Sec. 40. The department of attorney general, the department,

 

the commission, or any other person may file a written complaint

 

with the commission alleging that a person has violated this act or

 

a rule promulgated or an order issued under this act. The

 

commission shall forward any complaint filed under this section to

 

the department for investigation.

 

     Sec. 41. (1) If the department receives a complaint described

 

in section 40, the department immediately shall begin an

 

investigation of the allegations of the complaint and shall open a

 

correspondence file for tracking purposes. The department shall

 

acknowledge the complaint in writing within 30 days after it

 

receives the complaint. If the department submitted the complaint,

 

the department shall designate 1 or more employees of the

 

department to investigate and report all findings.

 

     (2) The department shall conduct the investigation required

 

under subsection (1). As part of that investigation, the department

 

may request that the attorney general petition a court of competent

 

jurisdiction to issue a subpoena requiring a person to appear


 

before the department and be examined with reference to any matter

 

within the scope of the investigation and to produce books, papers,

 

or documents pertaining to the investigation.

 

     (3) Within 60 days after the department receives a complaint

 

described in section 40, the investigative unit of the department

 

shall report to the director on the status of the investigation

 

under subsection (2). If, for good cause shown, the investigation

 

cannot be completed within 60 days, the department may extend the

 

60-day time period for filing the report.

 

     (4) If the report of the investigative unit of the department

 

does not disclose a violation of this act or a rule promulgated or

 

an order issued under this act, the department shall close the

 

complaint. The department shall provide its reasons for closing the

 

complaint to the respondent and complainant, who then may provide

 

additional information to reopen the complaint.

 

     (5) If the report of the investigative unit made under

 

subsection (3) discloses evidence of a violation of this act or a

 

rule promulgated or an order issued under this act, the department

 

or the department of attorney general shall prepare the appropriate

 

action against the respondent, which may include any of the

 

following:

 

     (a) A formal complaint.

 

     (b) A cease and desist order.

 

     (c) A notice of summary suspension under section 42.

 

     (6) At any time during its investigation or after the issuance

 

of a formal complaint, the department may bring together the

 

complainant and the respondent for an informal conference. At the


 

informal conference, the department shall attempt to resolve issues

 

raised in the complaint and may attempt to aid the parties in

 

reaching a formal settlement or stipulation.

 

     Sec. 42. (1) After it conducts an investigation under section

 

41, the department may issue an order summarily suspending a

 

license based on an affidavit by a person familiar with the facts

 

set forth in the affidavit or, if appropriate, based on an

 

affidavit on information and belief that an imminent threat to the

 

integrity of the sport of mixed martial arts, the public interest,

 

or the welfare and safety of a contestant exists.

 

     (2) A person whose license is summarily suspended under this

 

section, including a contestant described in subsection (6), may

 

petition the department to dissolve the suspension order. After

 

receiving a petition to dissolve a suspension order, the department

 

immediately shall do either of the following:

 

     (a) Schedule a hearing to decide whether to grant or deny the

 

requested relief.

 

     (b) If the suspended person is a promoter, advise the person

 

that he or she may request a third party arbitration under

 

subsection (3).

 

     (3) A promoter whose license is summarily suspended under this

 

section may seek arbitration in lieu of a hearing before an

 

administrative law examiner if the arbitrator is affiliated with a

 

professional arbitration entity and is approved by both the

 

promoter and the department. Each party is responsible for a share

 

of the cost of the arbitrator in accordance with the applicable

 

rules of arbitration.


 

     (4) After the hearing or arbitration concerning a petition to

 

dissolve a suspension order under subsection (2), the

 

administrative law hearings examiner or arbitrator shall dissolve

 

the summary suspension order unless sufficient evidence is

 

presented that an imminent threat to the integrity of the sport,

 

the public interest, or the welfare and safety of a contestant

 

exists that requires emergency action and continuation of the

 

department's summary suspension order.

 

     (5) The record created at a hearing to dissolve a summary

 

suspension order is considered part of the record of the complaint

 

at any subsequent hearing in a contested case.

 

     (6) Subsections (2) through (5) apply to a summary suspension

 

order suspending a contestant for refusal to submit to a drug test

 

or a test for the presence of controlled substances, enhancers,

 

prohibited drugs, or other prohibited substances.

 

     Sec. 43. (1) If the department conducts an investigation under

 

section 41, the department after the investigation may order a

 

person to cease and desist violating this act or a rule promulgated

 

or order issued under this act.

 

     (2) A person ordered to cease and desist under subsection (1)

 

may request a hearing on that order by filing a written request for

 

a hearing with the department within 30 days after the effective

 

date of the order.

 

     (3) If a person violates a cease and desist order issued under

 

this act, the department of attorney general may apply to a court

 

of competent jurisdiction to restrain and enjoin, temporarily or

 

permanently, or both, the person from further violating the cease


 

and desist order.

 

     Sec. 44. (1) A summary suspension order, cease and desist

 

order, or injunctive relief issued or granted under this chapter

 

concerning a license is in addition to and not in place of an

 

informal conference; criminal prosecution; proceeding to deny,

 

revoke, or suspend a license; or any other action authorized under

 

this act.

 

     (2) If the department conducts an investigation and prepares

 

or receives a formal complaint under section 41, the department

 

shall serve the formal complaint on the respondent and the

 

complainant. At the same time, the department shall serve the

 

respondent with a notice describing the compliance conference and

 

hearing process and offering the respondent a choice of 1 of the

 

following options:

 

     (a) An opportunity to meet with the department to negotiate a

 

settlement of the matter.

 

     (b) If the respondent is a licensee under this act, an

 

opportunity to demonstrate compliance before the department holds a

 

contested case hearing.

 

     (c) An opportunity to proceed to a contested case hearing.

 

     (3) A respondent who is served with a formal complaint under

 

this section may select, within 15 days after receiving the notice,

 

1 of the options described in subsection (2). If the respondent

 

does not notify the department of the selection of 1 of those

 

options within the time period described in this subsection, the

 

department shall proceed with a contested case hearing as described

 

in subsection (2)(c).


 

     (4) At the discretion of the department, a member of the

 

commission may attend an informal conference described in

 

subsection (2)(a). The conference may result in a settlement,

 

consent order, waiver, default, or other method of settlement

 

agreed on by the parties and the department. A settlement may

 

include the revocation or suspension of a license; censure;

 

probation; restitution; or a penalty under section 48. The

 

commission may reject a settlement and require a contested case

 

hearing.

 

     (5) An employee of the department may represent the department

 

in any contested case hearing.

 

     (6) This chapter does not prevent a person against whom a

 

complaint has been filed from showing compliance with this act or a

 

rule promulgated or order issued under this act.

 

     (7) The department or the department of the attorney general

 

may petition a court of competent jurisdiction to issue a subpoena

 

to require the person subpoenaed to appear or testify or produce

 

relevant documentary material for examination at a proceeding.

 

     Sec. 45. (1) At the conclusion of a contested case hearing

 

conducted under section 44, the administrative law hearings

 

examiner shall submit a hearing report that includes findings of

 

fact and conclusions of law to the department, the department of

 

attorney general, and the commission. The examiner may recommend in

 

the hearing report the assessment of sanctions under section 48.

 

     (2) An administrative law hearings examiner shall submit a

 

copy of a hearing report prepared under subsection (1) to the

 

complainant and to the respondent.


 

     (3) Within 60 days after it receives an administrative law

 

hearings examiner's hearing report, the commission shall meet and

 

determine what penalties under section 48 to assess. The commission

 

shall make its determination based on the administrative law

 

hearings examiner's report. The examiner shall make a transcript of

 

a hearing or a portion of the transcript available to the

 

commission on request. If a transcript or a portion of the

 

transcript is requested, the commission shall make its

 

determination of the penalty or penalties to assess under section

 

48 at a meeting held within 60 days after it receives the

 

transcript or portion of the transcript.

 

     (4) If the commission does not determine which penalty or

 

penalties to assess within the time period described in subsection

 

(3), the director may determine the appropriate penalty and issue a

 

final order.

 

     (5) A member of the commission who has participated in an

 

investigation or administrative hearing on a complaint filed with

 

the department or who has attended an informal conference shall not

 

participate in making a final determination in a proceeding on that

 

complaint.

 

     Sec. 46. (1) A person seeking a license or renewal under this

 

act may petition the department and the commission for a review if

 

that person does not receive a license or renewal.

 

     (2) A petition for a review submitted under subsection (1)

 

shall be in writing and shall set forth the reasons the petitioner

 

believes that the licensure or renewal should be issued.

 

     (3) The department may issue a license or renewal if, based on


 

a review of the qualifications of the person who submitted a

 

petition for a review under subsection (1), the department and the

 

commission determine that the person could perform the licensed

 

activity with competence.

 

     Sec. 47. (1) The department shall initiate an action under

 

this chapter against an applicant or take any other lawful action

 

against the license of any contestant, promoter, or other

 

participant who the department determines has done any of the

 

following:

 

     (a) Entered into a contract for an amateur mixed martial arts

 

contest or exhibition in bad faith.

 

     (b) Participated in any sham or fake amateur mixed martial

 

arts contest or exhibition.

 

     (c) Participated in an amateur mixed martial arts contest or

 

exhibition pursuant to a collusive understanding or agreement in

 

which the contestant competes or terminates the amateur mixed

 

martial arts contest or exhibition in a manner that is not based on

 

honest competition or the honest exhibition of the skill of the

 

contestant.

 

     (d) Failed to give his or her best efforts, failed to compete

 

honestly, or failed to give an honest exhibition of his or her

 

skills in an amateur mixed martial arts contest or exhibition.

 

     (e) Performed an act or engaged in conduct that is detrimental

 

to an amateur mixed martial arts contest or exhibition, including,

 

but not limited to, any foul or unsportsmanlike conduct in

 

connection with an amateur mixed martial arts contest or

 

exhibition.


 

     (f) Gambled on the outcome of an amateur mixed martial arts

 

contest or exhibition in which he or she is a contestant, promoter,

 

matchmaker, ring official, or second.

 

     (g) Assaulted another licensee, commission member, or employee

 

of the department while not involved in or while outside the normal

 

course of an amateur mixed martial arts contest or exhibition.

 

     (h) Practiced fraud or deceit in obtaining a license.

 

     (2) The department, in consultation with the commission, shall

 

promulgate rules to provide for the following:

 

     (a) The timing of random drug tests for contestants.

 

     (b) Requirements for HIV and hepatitis B and C testing for

 

contestants, conducted at intervals of not more than 12 months.

 

     (c) Specific summary suspension procedures for amateur mixed

 

martial arts contestants who test positive for drugs or fail to

 

submit to a drug test. The rules shall include the following:

 

     (i) A procedure to allow the commission to place the licensee

 

upon the national suspension list.

 

     (ii) An expedited appeal process for the summary suspension.

 

     (iii) A relicensing procedure following summary suspension.

 

     (3) An employee of the department must be present at all

 

weigh-ins, medical examinations, contests, and exhibitions to

 

ensure that this act and rules promulgated under this act are

 

strictly enforced.

 

     (4) Each promoter shall provide each member of the commission

 

present at an amateur mixed martial arts contest or exhibition with

 

a seat in the area immediately adjacent to the amateur mixed

 

martial arts contest or exhibition. The promoter shall also provide


 

an additional seat in the venue to the member.

 

     (5) The commission chair, a commission member assigned by the

 

commission chair, or a department official designated by the

 

commission chair has final authority involving any conflict at a

 

contest or exhibition and shall advise the chief inspector in

 

charge if he or she exercises that authority. In the absence of the

 

chair, an assigned member, or a department official designated by

 

the commission chair, the chief inspector in charge is the final

 

decision-making authority.

 

     Sec. 48. (1) If it receives an application for reinstatement

 

and the payment of an administrative fine prescribed by the

 

commission, the commission may reinstate a revoked license or lift

 

a suspension.

 

     (2) If disciplinary action is taken against a person under

 

this act that does not relate to an amateur mixed martial arts

 

contest or exhibition, the commission may, in lieu of suspending or

 

revoking a license, prescribe an administrative fine that does not

 

exceed $5,000.00. If disciplinary action is taken against a person

 

under this act that relates to the preparation for an amateur mixed

 

martial arts contest or an exhibition, the occurrence of an amateur

 

mixed martial arts contest or an exhibition, or any other action

 

taken in conjunction with an amateur mixed martial arts contest or

 

an exhibition, the commission may prescribe an administrative fine

 

that does not exceed $15,000.00 for any other person. The

 

commission may impose the administrative fine in addition to, or in

 

lieu of, any other disciplinary action that is taken against the

 

person by the commission.


 

     (3) If an administrative fine is imposed under this section,

 

the commission may recover the costs of the proceeding, including

 

investigative costs and attorney fees. The department or the

 

attorney general may bring an action in a court of competent

 

jurisdiction to recover any administrative fines, investigative and

 

other allowable costs, and attorney fees. The filing of an action

 

to recover fines and costs does not bar the imposition of other

 

penalties under this act.

 

CHAPTER 5

 

     Sec. 50. (1) Each participant shall obtain a participant

 

license from the department before participating either directly or

 

indirectly in an amateur mixed martial arts contest or exhibition.

 

     (2) An application for a participant license shall be in

 

writing, shall be verified by the applicant, and shall set forth

 

those facts requested by and conform to the rules promulgated by

 

the department in consultation with the commission.

 

     (3) The department shall issue an identification card with

 

each contestant's license.

 

     (4) The commission or a member of the commission has standing

 

to contest the issuance or nonissuance of an exhibition or other

 

license by written or electronic communication to the department.

 

     Sec. 51. (1) The department may require that a person seeking

 

a license under this act as a judge or referee satisfactorily pass

 

an examination or training program acceptable to the department.

 

     (2) A contestant seeking a license under this act as a

 

contestant shall pass a physical examination that is performed by a