GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	2
HOUSE BILL 232*
 Committee Substitute Favorable 6/19/01 

Short Title:	Budget Revenue Provisions - 2001.	()	
Sponsors:	     	
Referred to:	     	
February 26, 2001

A BILL TO BE ENTITLED
AN ACT TO SET THE INSURANCE REGULATORY CHARGE, THE PUBLIC UTILITY REGULATORY FEE, AND THE ELECTRIC MEMBERSHIP CORPORATION REGULATORY FEE; TO INCREASE THE NONRESIDENT FEE FOR SEARCHING PUBLIC ARCHIVES; TO UPDATE THE REFERENCE TO THE INTERNAL REVENUE CODE; TO ACCELERATE PAYMENT OF WITHHOLDING TAXES; TO ACCELERATE PAYMENT OF SALES AND UTILITY TAXES; AND TO MAKE THE BOXING COMMISSION INDEPENDENT OF GENERAL FUND SUPPORT. 

The General Assembly of North Carolina enacts:
INSURANCE REGULATORY CHARGE
SECTION 1.(a)  The percentage rate to be used in calculating the insurance regulatory charge under G.S. 58‑6‑25 is six and one‑half percent (6.5%) for the 2001 calendar year.
SECTION 1.(b)  This section is effective when it becomes law.

REGULATORY FEE FOR UTILITIES COMMISSION
SECTION 2.(a) The percentage rate to be used in calculating the public utility regulatory fee under G.S. 62‑302(b)(2) is eleven‑hundredths percent (0.11%) for each public utility's North Carolina jurisdictional revenues earned during each quarter that begins on or after July 1, 2001.
SECTION 2.(b) The electric membership corporation regulatory fee imposed under G.S. 62‑302(b1) for the 2001‑2002 fiscal year is two hundred thousand dollars ($200,000).
SECTION 2.(c)  This section becomes effective July 1, 2001.

INCREASE NONRESIDENT SEARCH FEE
SECTION 3.(a)  G.S. 121‑5(d) reads as rewritten:
"(d)	Preservation of Permanently Valuable Records. – Public records certified by the Department of Cultural Resources as being of permanent value shall be preserved in the custody of the agency in which the records are normally kept or of the North Carolina State Archives. Any State, county, municipal, or other public official is hereby authorized and empowered to turn over to the Department of Cultural Resources any State, county, municipal, or other public records no longer in current official use, and the Department of Cultural Resources is authorized in its discretion to accept such records, and having done so shall provide for their administration and preservation in the North Carolina State Archives. When such records have been thus surrendered, photocopies, microfilms, typescripts, or other copies of them shall be made and certified under seal of the Department, upon application of any person, which certification shall have the same force and effect as if made by the official or agency by which the records were transferred to the Department of Cultural Resources; and the Department may charge reasonable fees for these copies. The Department may answer written inquiries for nonresidents of the State and for this service may charge a search and handling fee not to exceed twenty-five dollars ($25.00).The receipts from this fee shall be used to defray the cost of providing this service."
SECTION 3.(b)  This section becomes effective July 1, 2001.

UPDATE INTERNAL REVENUE CODE REFERENCE
SECTION 4.(a)  G.S. 105‑228.90(b)(1b) reads as rewritten:
"(b)	Definitions. – The following definitions apply in this Article:
…
(1b)	Code. – The Internal Revenue Code as enacted as of January 1, 2001, including any provisions enacted as of that date which become effective either before or after that date."
SECTION 4.(b)  G.S. 105‑130.5(a)(13) is repealed.
SECTION 4.(c)  Notwithstanding subsection (a) of this section, any amendments to the Internal Revenue Code enacted in 2000 that increase North Carolina taxable income for the 2000 taxable year become effective for taxable years beginning on or after January 1, 2001.
SECTION 4.(d)  Subsection (b) of this section is effective for taxable years beginning on or after January 1, 2002.  The remainder of this section is effective for taxable years beginning on or after January 1, 2001.

ACCELERATE PAYMENT OF WITHHOLDING TAXES
SECTION 5.(a)  G.S. 105‑163.6(b) reads as rewritten:
"(b)	Quarterly. – An employer who withholds an average of less than one hundred dollars ($100.00) of State income taxes from wages each month shall file a return and pay the withheld taxes on a quarterly basis. A quarterly return covers a calendar quarter and is due by the last day of the month following the end of the quarter."
SECTION 5.(b)  G.S. 105‑163.6(c) reads as rewritten:
"(c)	Monthly. – An employer who withholds an average of at least one hundred dollars ($100.00) but less than two thousand dollars ($2,000) from wages each month shall file a return and pay the withheld taxes on a monthly basis. A return for the months of January through November is due by the 15th day of the month following the end of the month covered by the return. A return for the month of December is due the following January 31."
SECTION 5.(c)  In order to pay for its costs of postage, printing, and computer programming to implement this section, the Department of Revenue may withhold not more than seventy‑five thousand dollars ($75,000) from collections under Article 4 of Chapter 105 of the General Statutes during the first two quarters of the 2001‑2002 fiscal year.
SECTION 5.(d)  It is the intent of the General Assembly that the revenue generated by the acceleration of these withholding taxes be credited to the Savings Reserve Account.
SECTION 5.(e)  Subsection (c) of this section becomes effective July 1, 2001. The remainder of this section becomes effective April 1, 2002, and applies to payments of withheld income taxes made on or after that date.

ALLOW TELEFILE FOR WITHHOLDING PAYERS
SECTION 5.1.(a)  By April 1, 2002, the Department of Revenue must offer employers the option of filing and paying withheld taxes by telephone. Employers who prefer to file and pay by traditional means are not required to use this new option for filing or paying withheld taxes.
SECTION 5.1.(b)  In order to pay for its costs of postage, printing, and computer programming to implement this section, the Department of Revenue may withhold not more than one hundred fifty thousand dollars ($150,000) from collections under Article 4 of Chapter 105 of the General Statutes during the 2001‑2002 fiscal year.
SECTION 5.1.(c)  This section is effective when it becomes law.

ACCELERATE PAYMENT OF SALES AND UTILITY TAXES
SECTION 6.(a)  G.S. 105‑164.16 is amended by deleting the phrase "twenty thousand dollars ($20,000)" each time it appears and substituting the phrase "ten thousand dollars ($10,000)".
SECTION 6.(b)  G.S. 105‑164.16(c) is repealed.
SECTION 6.(c)  G.S. 105‑241(b) reads as rewritten:
"(b)	Electronic Funds Transfer. – Payment by electronic funds transfer is required as provided in this subsection.
(1)	Corporate estimated taxes. – A corporation that is required under the Code to pay its federal-estimated corporate income tax by electronic funds transfer must pay its State‑estimated tax by electronic funds transfer as provided in G.S. 105‑163.40.
(2)	Semimonthly taxes. – A taxpayer that is required to pay sales tax on a semimonthly schedule must pay the tax by electronic funds transfer.
(3)	Large tax payments. – Except as  otherwise provided in this subsection, the Secretary shall not require a taxpayer to pay a tax by electronic funds transfer unless, during the applicable period for that tax, the average amount of the taxpayer's required payments of the tax was at least twenty thousand dollars ($20,000) a month. The twenty thousand dollar ($20,000) threshold applies separately to each tax. The applicable period for a tax is a 12‑month period, designated by the Secretary, preceding the imposition or review of the payment requirement. The requirement that a taxpayer pay a tax by electronic funds transfer remains in effect until suspended by the Secretary. Every 12 months after requiring a taxpayer to pay a tax by electronic funds transfer, the Secretary must determine whether, during the applicable period for that tax, the average amount of the taxpayer's required payments of the tax was at least twenty thousand dollars ($20,000) a month. If it was not, the Secretary must suspend the requirement that the taxpayer pay the tax by electronic funds transfer and must notify the taxpayer in writing that the requirement has been suspended."
SECTION 6.(d)  Article 9 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑263.1. Semimonthly payment schedule.
Taxpayers who are required to pay taxes on a semimonthly basis must pay the tax twice a month and must file a return monthly as provided in this section. One semimonthly payment covers the period from the first day of the month through the 15th day of the month. The other semimonthly payment covers the period from the 16th day of the month through the last day of the month. The semimonthly payment for the period that ends on the 15th day of the month is due by the 25th day of that month. The semimonthly payment for the period that ends on the last day of the month is due by the 10th day of the following month. A return covers both semimonthly payment periods. The return is due by the 20th day of the month following the month of the payment periods covered by the return. A taxpayer is not subject to interest on or penalties for an underpayment for a semimonthly payment period if the taxpayer timely pays at least ninety-five percent (95%) of the amount due for each semimonthly payment period and includes the underpayment with the monthly return for those semimonthly payment periods."
SECTION 6.(e)  G.S. 105‑116(b) reads as rewritten:
"(b)	Report and Payment. – The tax imposed by this section is payable semimonthly or quarterly as specified in this subsection.  An electric power company  must pay tax semimonthly and file a report monthly in accordance with G.S. 105‑263.1. A water company or a public sewerage company must file a report and pay tax quarterly. A quarterly report covers a calendar quarter and is due by the last day of the month that follows the quarter covered by the report. 
A taxpayer must submit a report on a form provided by the Secretary. The report must include the taxpayer's gross receipts from all property it owned or operated during the reporting period in connection with its business taxed under this section and must contain the following information:
(1)	The taxpayer's gross receipts for the reporting period from business inside and outside this State, stated separately.
(2)	The taxpayer's gross receipts from commodities or services described in subsection (a) that are sold to a vendee subject to the tax levied by this section or to a joint agency established under Chapter 159B of the General Statutes or a city having an ownership share in a project established under that Chapter.
(3)	The amount of and price paid by the taxpayer for commodities or services described in subsection (a) that are purchased from others engaged in business in this State and the name of each vendor.
(4)	For an electric power company the entity's gross receipts from the sale within each city of the commodities and services described in subsection (a).
A taxpayer must report its gross receipts on an accrual basis. If a taxpayer's report does not state the taxpayer's taxable gross receipts derived within a city, the Secretary must determine a practical method of allocating part of the taxpayer's taxable gross receipts to the city."
SECTION 6.(f)  G.S. 105‑120(b) reads as rewritten:
"(b)	Report and Payment. – The tax imposed by this section is payable semimonthly and a report is due monthly in accordance with G.S. 105‑263.1. 
 The report must state the company's gross receipts for the reporting period from providing local telecommunications service and from providing local telecommunications service within each city served. If a company's report does not state the company's taxable gross receipts derived within a city, the Secretary must determine a practical method of allocating part of the company's taxable gross receipts to the city. A company must report its gross receipts on an accrual basis."
SECTION 6.(g)  G.S. 105‑187.43 reads as rewritten:
"§ 105‑187.43.  Payment of the tax.
	The tax imposed by this Article is payable semimonthly and a return is due monthly in accordance with G.S. 105‑263.1.  The tax imposed by this Article on piped natural gas delivered to a sales or transportation customer accrues when the gas is delivered. The tax payable on piped natural gas received by a person who has direct access to an interstate pipeline for consumption by that person accrues when the gas is received.
		"
SECTION 6.(h)  The Secretary of Revenue must review the thresholds in G.S. 105‑163.6 for accelerated payment of withheld taxes to evaluate the efficiency, burden, and level of compliance under the current law. The Secretary must take steps to assure taxpayer compliance and must report the results of the study and any recommendations to the Revenue Laws Study Committee by April 1, 2002.
SECTION 6.(i)  It is the intent of the General Assembly that the revenue generated by the tax collection efficiencies enacted by this section be credited to the Savings Reserve Account.
SECTION 6.(j)  In order to pay for its costs of postage, printing, and computer programming to implement this section, the Department of Revenue may withhold not more than seventy‑five thousand dollars ($75,000) from collections under Article 4 of Chapter 105 of the General Statutes during the first two quarters of the 2001‑2002 fiscal year.
SECTION 6.(k)  This section becomes effective January 1, 2002, and applies to taxes levied on or after that date.

make boxing commission independent/additional duties
SECTION 7.(a)  Article 68 of Chapter 143 of the General Statutes, G.S. 143‑650 through G.S. 143‑658, is recodified as Chapter 85D of the General Statutes, G.S. 85D‑1 through G.S. 85D‑11, and is entitled "Boxing, Kickboxing, Toughman, Wrestling, and Mixed Martial Arts".
SECTION 7.(b)  Chapter 85D of the General Statutes, as recodified in this section, reads as rewritten:
"Chapter 85D.
"Boxing, Kickboxing, Toughman, Wrestling, and Mixed Martial Arts.
"§ 85D‑1.  Legislative findings and declarations.
The General Assembly finds and declares to be the public policy of this State that it is in the best interest of the public that boxing, kickboxing, toughman, wrestling, and mixed martial arts matches should be subject to an effective and efficient system of strict control and regulation in order to:
(1)	Protect the safety and well‑being of participants and the public.
(2)	Promote the public confidence and trust in the regulatory process and the conduct of these matches.
To further the public confidence and trust, the provisions of this Chapter are designed to regulate all persons, practices, and associations related to the operation of any live boxing, kickboxing, toughman, wrestling, or mixed martial arts event, performance, or contest held in North Carolina.
"§ 85D‑2.  Definitions.
The following definitions apply in this Chapter:
(1)	Amateur. – A person who is not receiving or competing for and has never received or competed for any purse or other article or thing of value for participating in a match.
(2)	Announcer. – Any person who engages in the act of announcing a  match.
(3)	Boxer. – Any person who engages as a participant in a boxing match.
(4)	Boxing match. – A match where the participants engage in the use of full contact boxing techniques (using the fist only), and where the object of a match is to win by decision, knockout (KO), or technical knockout (TKO).
(5)	Commission. – The North Carolina State Boxing Commission.
(6)	Contest. – A  match in which the participants strive to win.
(7)	Contestant. – Any person who engages as a participant in a boxing, kickboxing, toughman, wrestling, or mixed martial arts match.
(8)	Exhibition. – A  match where the participants display their  skills and technique without necessarily striving to win.
(9)	Judge. – A person who has a vote in determining the winner of any match or contest.
(10)	Kickboxer. – Any person who engages as a participant in a kickboxing match.
(11)	Kickboxing match. – A match in which the participants engage in full contact martial arts fighting techniques using the hands and the feet, and where the object of the match is to win by decision, knockout (KO), or technical knockout (TKO).
(12)	Licensee. – Any person, club, corporation, organization, or association to whom a license has been issued pursuant to the provisions of this Chapter.
(13)	Manager. – Any person who controls or administers the boxing, kickboxing, toughman, wrestling, or mixed martial arts affairs of any contestant, and who:
a.	By contract, agreement, or other arrangement with any person undertakes or has undertaken to represent in any way the interest of the contestant in any  contest in which the boxer, kickboxer, wrestler, or mixed martial arts contestant is to participate as a contestant, and is entitled under that contract, agreement, or arrangement to receive monetary or other compensation for his services, without regard to the sources of the compensation. The term "manager" shall not be construed to mean any attorney licensed to practice in this State whose participation in the activities is restricted solely to representing the interests of a participant as a client.
b.	Directs or controls the  activities of any participant.
c.	Receives or is entitled to receive a percentage of the gross purse or gross income of any participant in a match.
(14)	Match. – Any boxing, kickboxing, toughman, wrestling, or mixed martial arts contest or exhibition, and includes any event, engagement, sparring or practice session, show or program where the public is admitted and in which there is intended to be physical contact, whether an exhibition or contest. This definition does not include training or practice sessions when no admission is charged.
(15)	Matchmaker. – A person through whom matches are arranged for participants and who otherwise assists participants in procuring engagement dates for a match.
(15a)	Mixed martial arts contestant. – Any person who competes or participates in a mixed martial arts match.
(15b)	Mixed martial arts match. – A match where the participants engage in full contact martial arts techniques, and a fee for viewing the match is charged or solicited, or a purse or prize is awarded to the contestant.
(16)	Natural person. – An individual.
(17)	Participant. – Any person who engages in a match.
(18)	Person. – An individual, group of individuals, business, corporation, limited liability company, partnership, or any other individual or collective entity.
(19)	Physician. – An individual licensed to practice medicine in this State.
(20)	Professional. – Any person who is licensed as a professional boxer under the federal Professional Boxing Safety Act of  1996, P.L. 104-272.
(21)	Promoter. – Any person who produces, arranges, stages, holds, or gives any match in North Carolina involving a professional participant.
(21a)	Purse. – Any remuneration paid to a contestant as consideration for that contestant's participation in an event.
(22)	Referee. – The official who  enters and remains in the ring for the duration of a match and  enforces the rules and maintains order in the ring.
(23)	Ring official. – Any person who performs an official function for the duration of a match.
(23a)	Sanctioned amateur. – A person who competes in a sanctioned amateur match.
(23b)	Sanctioned amateur match. – Any boxing or kickboxing match regulated by an amateur sports organization that has been recognized and approved by the North Carolina State Boxing Commission.
(24)	Second. – Any person who will work or be present in the corner of a participant for the duration of a match.
(25)	Timekeeper. – Any person who will operate the clock or watch for the duration of a match for the purpose of keeping the official time of the match.
(25a)	Toughman contestant. – Any person who competes in a toughman event.
(25b)	Toughman event. – An elimination program of matches in which (i) the contestants are not professional boxers, (ii) the finalist receives a purse or other article of value, (iii) the participants engage in the use of full contact boxing techniques, and (iv) the object of each match is to win by decision, knockout (KO), or technical knockout (TKO).
(25c)	Wrestling contestant. – Any person who competes or participates in a wrestling event.
(25d)	Wrestling match. – A match where the participants engage in full contact wrestling techniques, and a fee for viewing the match is charged or solicited, or a purse or prize is awarded to the contestant.
(26)	Ultimate warrior match. – A match where the participants use any combination of boxing, kicking, wrestling, hitting, punching, or other combative, contact techniques and which combination of techniques is not specifically authorized by and conducted pursuant to this Chapter.
"§ 85D‑3.  State Boxing Commission.
(a)	Creation. – The North Carolina State Boxing Commission is  established to regulate in North Carolina live  boxing, kickboxing, toughman, wrestling, or mixed martial arts matches, whether professional, amateur, sanctioned amateur, or toughman events, in which admission is charged for viewing, or the contestants compete for a purse or prize of value greater than twenty‑five dollars ($25.00). The Commission is subject to the provisions of Chapter 93B of the General Statutes. The Commission shall consist of  eight voting members. All the members shall be residents of North Carolina and shall meet requirements for membership under the Professional Boxing Safety Act of  1996, P.L. 104-272. The members shall be appointed as follows:
(1)	One voting member shall be appointed by the  Governor.
(2)	 Two voting members shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the  Senate, in accordance with G.S. 120‑121.
(3)	Two voting members shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of  Representatives.
	
(4)	One voting member shall be appointed by the Tribal Council of the Eastern Band of the  Cherokee.
(5)	One  voting member shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, in accordance with G.S. 120‑121, from nominations made by the North Carolina Medical Society, which shall nominate two licensed physicians for the position.
(6)	One  voting member shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the  Senate, in accordance with G.S. 120‑121, from nominations made by the North Carolina Medical Society, which shall nominate two licensed physicians for the position.
The member appointed pursuant to subdivision (4) of subsection (a) of this section may serve on the Commission only if an agreement exists and remains in effect between the Tribal Council of the Eastern Band of the Cherokee and the Commission authorizing the Commission to regulate professional boxing matches within the Cherokee Indian Reservation as provided by the Professional Boxing Safety Act of  1996, P.L. 104-272.
The two  members appointed pursuant to subdivisions  (5) and (6) of subsection (a) of this section shall advise the Commission on matters concerning the health and physical condition of boxers and health issues relating to the conduct of exhibitions and boxing matches. They may prepare and submit to the Commission for its consideration and approval any rules that in their judgment will safeguard the physical welfare of all participants engaged in boxing.
Terms for all members of the Commission shall be for three years.
 The members of the Commission shall elect from among themselves a chair to serve a one-year term.  Each member before entering upon the duties of a member shall take and subscribe an oath to perform the duties of the office faithfully, impartially, and justly to the best of the member's ability. (b)	Vacancies. – Members shall serve until their successors are appointed and have been qualified. Any vacancy in the membership of the Commission shall be filled in the same manner as the original appointment. Vacancies for members appointed by the General Assembly shall be filled in accordance with G.S. 120‑122. A vacancy in the membership of the Commission other than by expiration of term shall be filled for the unexpired term only.
(c)	Meetings. – Meetings of the Commission shall be called by the chair or by any two members of the Commission, and meetings shall be held at least quarterly. Any three voting members of the Commission shall constitute a quorum at any meeting. Action may be taken and motions and resolutions adopted by the Commission at any meeting by the affirmative vote of a majority of the members of the Commission present at a meeting at which a quorum exists. Any or all members may participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication by which all members participating may simultaneously hear each other during the meeting. A member participating in the meeting by this means is deemed to be present in person at the meeting.
(d)	Rule‑Making Authority of the Commission. – The Commission shall have the exclusive authority to approve and issue rules for the regulation of the conduct, promotion, and performances of live boxing, kickboxing, wrestling, mixed martial arts, sanctioned amateur, amateur, and toughman matches and exhibitions in this State. The rules shall be issued pursuant to the provisions of Chapter 150B of the General Statutes and may include, without limitation, the following subjects:
(1)	Requirements for issuance of licenses and permits required by this Chapter.
(2)	Regulation of ticket sales.
(3)	Physical requirements for contestants, including classification by weight and skill.
(4)	Supervision of matches and exhibitions by licensed physicians and referees.
(5)	Insurance and bonding requirements.
(6)	Compensation of participants and licensees.
(7)	Contracts and financial arrangements.
(8)	Prohibition of dishonest, unethical, and injurious practices.
(9)	Facilities.
(10)	Approval of sanctioning amateur sports organizations.
(11)	Procedures and requirements for compliance with the Professional Boxing Safety Act of  1996, P.L. 104-272.
		
"§ 85D‑4.  Ultimate warrior matches prohibited.
Ultimate warrior matches, whether the participants are professionals or amateurs, are prohibited. No person shall promote, conduct, or engage in ultimate warrior matches. This section shall not preclude boxing, kickboxing, toughman, wrestling, or mixed martial arts as regulated in this Chapter."§ 85D‑5.  Licensing and permitting.
(a)	License and Permit Required. – Except for sanctioned amateur matches, it is unlawful for any person to act in this State as an announcer, contestant, judge, manager, matchmaker, promoter, referee, timekeeper, or second unless the person is licensed to do so under this Chapter. It is unlawful for a promoter to present a match in this State, other than a sanctioned amateur match, unless the promoter has a permit issued under this  Chapter to do so. The Commission has the exclusive authority to issue, deny, suspend, or revoke any license or permit provided for in this  Chapter.
(b)	License. – All licenses issued under this Chapter shall be valid only during the calendar year in which they are issued, except contestant licenses shall be valid for one year from the date of issuance. A license for an announcer, contestant, judge, matchmaker, referee, timekeeper, or second shall be issued only to a natural person. A natural person shall not transfer or assign a license or change it into another name. A license for a manager or promoter may be issued to a corporation or partnership; provided, however, that all officers or partners shall submit an application for individual licensure, and only those officers or partners who are licensed shall be entitled to negotiate or sign contracts. The addition of a new officer or partner during the license period shall necessitate the filing of an application for individual licensure by the new officer or partner.
An applicant for a license shall file with the Commission the appropriate nonrefundable fee and any forms, documents, medical examinations, or exhibits the Commission may require in order to properly administer this Chapter. The information requested shall include the date of birth and social security number of each applicant as well as any other personal data necessary to positively identify the applicant and may include the requirement of verification of any documents the Commission deems appropriate. A person may not participate under a fictitious or assumed name in any match unless the person has first registered the name with the Commission.
(b1)	Upon payment of the required fee as provided in G.S. 85D-6, the Commission shall issue a federal identification card to each boxer as required by the federal Professional Boxing Safety Act of 1996, P.L. 104-272.
(b2)	 All promoters shall report all bout agreements and payments to officials to the Commission.
(c)	Bonds. – An applicant for a promoter's license must submit, in addition to any other forms, documents, or exhibits requested by the Commission, a surety bond payable to the Commission for the benefit of any person injured or damaged by (i) the promoter's failure to comply with any provision of this Chapter or any rules adopted by the Commission or (ii) the promoter's failure to fulfill the obligations of any contract related to the holding of a match. The surety bond shall be a cash bond or be issued by a company licensed by the State Department of Insurance to do bond business in this State in an amount to be no less than five thousand dollars ($5,000). The amount of the surety bond shall be negotiable upon the sole discretion of the Commission. All surety bonds shall be upon forms approved by the Secretary of Crime Control and Public Safety and supplied by the Commission. Any applicant seeking licensure as a promoter shall either (i) provide major medical coverage from an insurance company licensed by the State Department of Insurance to provide medical insurance in this State in an amount not less than two thousand five hundred dollars ($2,500) for each fighter or (ii) provide a cash bond for medical expenses in an amount not less than two thousand five hundred dollars ($2,500) for each fighter.
(d)	Permit. – A permit issued to a promoter under this  Chapter is valid for a single match. An applicant for a permit shall file with the Commission the appropriate nonrefundable fee and any forms or documents the Commission may require.
"§ 85D‑6.  Fees; State Boxing Commission Revenue Account.
(a)	License Fees. – The Commission shall collect the following license fees:

	Announcer	$ 50.00
	Contestant	$ 25.00
	Judge	$ 50.00
	Manager	$100.00
	Matchmaker	$200.00
	Promoter	$300.00
	Referee	$ 50.00
	Timekeeper	$ 50.00
	Second	$ 25.00
	Federal I.D. card	$25.00.
The annual license renewal fees shall not exceed the initial license fees.
(b)	Permit Fees. – The Commission may establish a fee schedule for permits issued under this Chapter. The fees may vary depending on the seating capacity of the facility to be used to present a match. The fee may not exceed the following amounts: 

	Seating Capacity	Fee Amount
	Less than 2,000	$150.00
	2,000 – 5,000	$250.00
	For each additional 5,000	$350.00.
In addition to the permit fees required in this subsection, the Commission may charge either a fee equal to ten percent (10%) of the total purse of each professional boxing event, or the permit fee authorized in this subsection, whichever is greater.
(b1)	Exemption. – Any professional wrestling event solely organized, promoted, and managed by staff and volunteers of an exempt organization under section 501(c)(3) of the Code and for which a promoter or manager is not paid, shall be exempt from the fees imposed in this section.
	
(d)	The Commission may charge the public reasonable fees associated with the cost of copying, reproducing, or otherwise supplying the public with documents or information related to the functions of the Commission. The fees shall not exceed the actual cost of printing and mailing the documentation, including the cost of purchasing or leasing and maintaining copying equipment. These fees may be changed from time to time, but a schedule of fees shall be available on request at all times. 
"§ 85D‑7.  Contracts and financial arrangements.
Any contract between licensees and related to a boxing match or exhibition held or to be held in this State must meet the requirements of administrative rules as set forth by the Commission. Any contract which does not satisfy the requirements of the administrative rules shall be void and unenforceable. All contracts shall be in writing. 
"§ 85D‑8.  Sanctioned amateur matches.
In addition to the other applicable provisions of this  Chapter, a sanctioned amateur match shall be conducted pursuant to the rules of the sports organization sanctioning the boxing match or exhibition.
"§ 85D‑9.   Penalties and enforcement.
(a)	Civil Penalties. – The  Commission may issue an order against a licensee or other person who willfully violates any provision of this  Chapter, or any rules adopted by the Commission, imposing a civil penalty of up to five thousand dollars ($5,000) for a single violation or of up to twenty‑five thousand dollars ($25,000) for multiple violations in a single proceeding or a series of related proceedings. No order under this subsection may be entered without giving the licensee or other person 15 days' prior notice and an opportunity for a contested case hearing conducted pursuant to Article 3 of Chapter 150B of the General Statutes.
The clear proceeds of civil penalties imposed pursuant to this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.
(b)	Criminal Penalties. – A willful violation of any provision of this  Chapter or rules adopted by the Commission shall constitute a Class 2 misdemeanor.  The Attorney General of North Carolina, or the Attorney General's designee, shall have concurrent jurisdiction with the district attorneys of this State to prosecute violations of this Chapter.(c)	Injunction. –  The Commission may in its own name seek injunctive relief in the General Court of Justice to restrain any violation or anticipated violation of the provisions of this Chapter or rules adopted by the Commission.
(d)	The Commission shall be entitled to the services of the Attorney General of North Carolina in enforcing the provisions of this Chapter or may employ an attorney to assist and represent it in enforcement of specific matters.
"§ 85D-10.  Expenses of Commission members; Commission finances.
(a)	Each member of the Commission shall be entitled to receive travel and expense reimbursement as authorized by G.S. 93B-5 for similar boards.
(b)	All funds received by the Commission under the provisions of this Chapter shall be deposited by the treasurer of the Commission or any other officer or staff employee the Commission designates in such depository and under such security as the Commission may direct. All expenses incurred by the Commission shall be paid out of funds derived from permitting, licensing, or renewal of licenses or from other fees herein provided and shall be paid by the treasurer upon vouchers drawn by the Executive Director. The Commission shall have the power to determine necessary expenses, and to fix the compensation for board employees and for professional services. The State of North Carolina shall not be liable for the compensation of any Commission members or officers. Payment of expenses and salaries pursuant to administration of this Chapter shall not exceed the available funds of the Commission. All Commission receipts and disbursements shall be subject to audit and accounting procedures established by the State for similar boards.
"§ 85D-11.  Personnel.
The Commission shall hire a person to serve as Executive Director of the Commission. The Executive Director may hire staff whom shall be employed at the discretion of the Executive Director. If necessary, the Executive Director may train and contract with independent contractors for the purpose of regulating and monitoring events, issuing licenses, collecting fees, enforcing rules, and administering the duties of the Commission. The Executive Director may initiate and review criminal background checks on persons requesting to work as independent contractors for the Commission or persons applying to be licensed by the Commission."
SECTION 7.(c)  The North Carolina State Boxing Commission may adopt temporary rules to implement this act. Upon the adoption of temporary rules, the administrative rules adopted by the Secretary of State that govern the North Carolina Boxing Commission are repealed. The Commission shall own the equipment and supplies in the inventory of the Commission on January 1, 2002, and shall rent State‑owned office space in accordance with G.S. 93B‑7.
SECTION 7.(d)  This section becomes effective January 1, 2002.