By Celeste Franco
On October 8, 2023, Governor Newsom signed AB 1136 (Haney) (Chapter 466, Statutes of 2023) to add Article 17 (commencing with section 18888) to Chapter 2 of Division 8 of the Business and Professions Code. AB 1136 creates a Mixed Martial Arts Retirement Benefit Fund similar to the Boxers’ Pension Fund established by this Commission in 1982. This would be the world’s first retirement benefit fund for Mixed Martial Arts (MMA). At its March 6, 2023, meeting, the California State Athletic Commission (CSAC) discussed whether to sponsor or take further actions regarding the bill.
California Business and Professions Code section 18888 states that MMA fighters may suffer extraordinary disabilities in the normal course of their trade, and the purpose of the MMA Fund is to protect these athletes from health hazards in this course.
AB 1136 further provided that the Commission would establish a method of funding. Business and Professions Code section 18888.2 entails the specific methods of funding, which include an assessment of ticket sales for MMA contests held in California, revenue from special interest license plates and other commission-branded items, and contributions by MMA fighters, managers, or promoters in an amount sufficient to finance the MMA Fund.
The bill states that a participating martial artist would become “vested in the amount credited to the participating martial artist’s regular account in the MMA Fund” when they have fought in at least 39 scheduled rounds in commissioned-sanctioned contests and become 50 years old. AB 1136 allows the Commission to award an early retirement benefit. Business and Professions section 18888.5(b)(1) permits the Commission, at its discretion, to award early retirement benefits for individuals younger than 50 years old for vocational, education, training, or medical needs.
The bill requires the Commission to inform eligible participating martial artists about their right to receive benefits from the MMA Fund. Business and Professions section 18888.6(d) explains that the Commission is to notify those eligible about (1) the date when the right to receive the benefits from the MMA Fund vest and the amount that has accrued as of that date; (2) the date which the individual will first be able to receive benefits; (3) procedure which the individual will be able to claim benefits; (4) procedure which the individual will be notified annually of the accrued benefits; and (5) ability of the individual to designate one or more beneficiaries of the individuals benefits upon their death.