201 KAR 27:020reg. Tickets

      Section 1. General Requirements. (1) Any person admitted to a show or exhibition shall have a ticket except:

      (a) Commission staff, a commission member, or a member of the medical advisory panel on official business;

      (b) The promoter of the show and the promoter’s employees;

      (c) An employee of the venue at which the show is being held if the employee is working the event;

      (d) A ring official who is working the show;

      (e) A member of the press covering the show;

      (f) A contestant who is competing in the show;

      (g) A second, trainer, or manager acting on behalf of a contestant who will be competing in the show; and

      (h) A police officer, firefighter, paramedic, or emergency medical technician while on duty.

      (2) A schedule of ticket prices shall be posted conspicuously at the front of the ticket office where the show or exhibition is taking place. A ticket shall not be sold for a price greater than that charged at the place of admission or printed on the ticket.

 

      Section 2. Complimentary Tickets. (1) Absent commission approval, the number of complimentary tickets shall not exceed four (4) percent of the total of paid admission tickets.

      (2) The commission may require payment of the tax in KRS 229.031 on the number of complimentary tickets that exceed four (4) percent of the total of paid admission tickets. In determining whether or not the tax shall be paid, the commission shall consider the purpose for which all complimentary tickets were given away, including whether or not the tickets were given to or for a charitable organization, educational purpose, or military or public safety personnel.

 

      Section 3. Changes to Program or Card. (1) Any change or substitution to the card shall be posted in a conspicuous place at the ticket office when the change is made.

      (2) Any change to an advertised card shall be:

      (a) Posted at the ticket window and at the entrance to the facility immediately; and

      (b) Announced to the spectators at least (5) minutes before the first bout or match.

      (3) The posting and the announcement of the change shall include a statement that a ticket purchaser may receive a refund of the ticket purchase price if the request is made before commencement of the first bout or match.

 

      Section 4. Rain Check. Each purchaser of an admission ticket shall be given their choice of a refund or a voucher that shall be redeemed by the promoter on presentation by the purchaser if the show does not take place.

 

      Section 5. Ticket Audit. (1) Pursuant to KRS 229.041, the commission may request an audit of the tickets used for a show or exhibition to validate the tax paid pursuant to KRS 229.031.

      (2) The promoter shall retain the following for a period of one (1) year from the date of a show or exhibition unless otherwise ordered by the commission:

      (a) All unsold tickets or a certified record from a vendor that states the number of unsold tickets; and

      (b) A receipt, invoice, or other evidence that demonstrates in detail the number of tickets ordered for an event and a description of the tickets.

      (3) The promoter shall be responsible for the cost of a ticket audit if the commission determines that the amount of the tax paid pursuant to KRS 229.031 is underpaid by five (5) percent or more.

 

      Section 6. Event Report. (1) Within seventy-two (72) hours of the conclusion of a boxing, kickboxing, mixed martial arts, wrestling, or elimination event show, the promoter shall, pursuant to KRS 229.031(1), complete and submit to the commission the form Event Report. The Event Report shall state:

      (a) The event type, location, date, promoter’s name, and promoter’s license number;

      (b) The total number of tickets sold and their price, listed by category;

      (c) The total number of complimentary tickets given away;

      (d) The name and license number of each contestant and bout assistant;

      (e) The name and license number of each ring official; and

      (f) Any injuries that occurred to any person at the show or exhibition.

      (2) The Event Report shall be accompanied by a check or money order for the amount of the tax required by KRS 229.031(1).

      (3) The Event Report shall be signed under penalty of perjury.

 

      Section 7. Incorporation by Reference. (1) "Event Report", 2016, is incorporated by reference.

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Boxing and Wrestling Commission office at 911 Leawood Dr., Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m, and is available online at http://kbwa.ky.gov/Pages/Appsforms.aspx[(1) Any person admitted to any show or exhibition, except for a member or employee of the authority, an employee of the licensed promoter, an official, a representative of the press, or a contestant, shall be required to have a ticket.

      (2) Cash may not be accepted for admission by any representative of the promoter except the properly authorized ticket selling agent.

      (3) Any official, employee, or member of the authority shall be admitted to any professional show or exhibition upon showing the appropriate identification card.

 

      Section 2. Any order admission tickets purchased, printed, sold, given away or used by a club shall be submitted in writing to the authority, upon specific request of the authority.

 

      Section 3. All orders for admission tickets shall:

      (1) Designate a different color for each price class of admission ticket;

      (2) Specify that admission tickets be numbered in consecutive order for each price class ticket; and

      (3) Include a verified invoice delivered by the printer for each order of tickets printed and delivered to the promoter.

 

      Section 4. (1) A complimentary admission ticket shall be readily distinguishable from a paid admission ticket.

      (2) The authority may limit the number, or otherwise restrict the use of complimentary admission tickets and may require the payment of taxes on tickets.

      (3) The authority shall be entitled, upon request, to receive twelve (12) complimentary admission tickets, clearly marked "Not For Sale", for admission to any professional boxing, kickboxing, mixed martial arts, elimination event or wrestling show or exhibition conducted within this Commonwealth.

 

      Section 5. A schedule of ticket prices shall be posted conspicuously at the front of the ticket office and a ticket shall not be sold for any price other than the price printed on the face of the ticket.

 

      Section 6. The authority may request, pursuant to KRS 229.041, an audit of the tickets used for a show in order to validate the fees paid pursuant to KRS 229.031.

 

      Section 7. Each purchaser of an admission ticket shall be given a stub which shall be redeemed by the promoter on presentation by the purchaser if the show does not take place as published and announced].

 

CHAD E. MILLER, Chairman

DAVID A. DICKERSON, Secretary

      APPROVED BY AGENCY: July 14, 2016

      FILED WITH LRC: July 15, 2016 at noon

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held August 24, 2016, at 4:00 p.m., at the Office of Occupations and Professions, 911 Leawood Drive, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing no later than five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. The hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted if received at or before 11:59 p.m. on August 31, 2016. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation by the above date to the contact person.

      CONTACT PERSON: Barry Dunn, Executive Director, Office of Legal Services, Public Protection Cabinet, 500 Mero Street, 5th Floor, Frankfort, Kentucky 40601, phone [phone], fax [phone], email [e-mail].

 

Regulatory Impact Analysis and Tiering Statement

 

Contact Person: Barry Dunn

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation sets requirements for tickets and ticket reporting.

      (b) The necessity of this administrative regulation: This regulation is necessary to provide standards for ticket sales and to ensure ticket sales are properly reported for taxing purposes.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: This regulation conforms with KRS 229.171, which grants the Kentucky Boxing and Wrestling Commission ("KBWC") authority to control and manage shows and exhibitions. KRS 229.180 also authorizes the KBWC to adopt and promulgate, amend, or abrogate any and all rules and regulations considered by it necessary or expedient for the performance of its functions as provided in KRS Chapter 229. KRS 229.031(1) imposes a tax of the greater of twenty-five (25) dollars or five (5) percent upon the gross receipts collected by a person conducting an event under the jurisdiction of the commission. KRS 229.041 permits the commission to inspect a person’s books to ensure compliance with the tax.

      (d) How this administrative regulation currently assists or will assist in the effective administrative of the statutes: This regulation establishes a process to ensure taxes are paid in accordance with statute.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: This amendment clarifies reporting requirements and ticket selling practices. The amendment also adds certain requirements to the incorporated Event Report form.

      (b) The necessity of the amendment to this administrative regulation: The amendment is necessary to protect consumers and ensure promoters are paying taxes properly.

      (c) How the amendment conforms to the content of the authorizing statutes: This regulation conforms with KRS 229.171, which grants the KBWC authority to control and manage shows and exhibitions. KRS 229.180 also authorizes the KBWC to adopt and promulgate, amend, or abrogate any and all rules and regulations considered by it necessary or expedient for the performance of its functions as provided in KRS Chapter 229. KRS 229.031(1) imposes a tax of the greater of twenty-five (25) dollars or five (5) percent upon the gross receipts collected by a person conducting an event under the jurisdiction of the commission. KRS 229.041 permits the commission to inspect a person’s books to ensure compliance with the tax.

      (d) How the amendment will assist in the effective administrative of the statues: This amendment clarifies the ticket reporting and selling process to ensure taxes are paid in accordance with statute.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: This regulation impacts the Boxing and Wrestling Commission, promoters and consumers. The Commission grants around 1,250 licenses in a given year.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Promoters will be required to report additional information to the commission on the Event Report, including any injuries that occurred at the event. Otherwise, the requirements are substantively the same.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): No cost will accrue to any entity to comply with this amendment.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Promoters will benefit from a better understanding of ticket reporting. The commission will have to spend less time and resources concerning ticket reporting.

      (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

      (a) Initially: No additional costs will occur in compliance with this amendment.

      (b) On a continuing basis: No additional costs will occur in compliance with this amendment.

      (6) What is the source of the funding to be used for implementation and enforcement of this administrative regulation: Funding for the implementation and enforcement of this regulation will come from restricted funds obtained through the licensing and fees established in 201 KAR 27:008, fines assessed in 201 KAR 27:021, 201 KAR 27:105, and the tax on shows required by KRS 229.031.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: No additional costs will accrue as a result of this amendment.

      (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: This regulation establishes a tax on tickets sold, provided by statute. It also establishes a fee for a ticket audit to be paid by the promoter for the cost of an audit, if one is required.

      (9) TIERING: Is tiering applied? Tiering is not applied due to the fact the taxes on all ticket sales are the same.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Kentucky Boxing and Wrestling Commission.

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. The statutory authority for this administrative regulation is KRS 229.031, 229.041, 229.171, and 229.180.

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. This regulation will generate about $50,000 in revenue from taxes sold on tickets, which is approximately the same amount as is currently generated.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This regulation will generate around $50,000 in the first year, which is approximately the same amount as is currently generated.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This regulation will generate about $50,000 in revenue from taxes sold on tickets, which is approximately the same amount as is currently generated. The commission is, however, taking proactive steps in an attempt to increase the popularity of combat sports, which will lead to additional revenue.

      (c) How much will it cost to administer this program for the first year? The KWBC does not anticipate any net change in the cost to administer this program in the first year.

      (d) How much will it cost to administer this program for subsequent years? The KWBC does not anticipate any net change in the cost to administer this program in subsequent years.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-): 0

      Expenditures (+/-): 0

      Other Explanation: None.

Notation

      RELATES TO: KRS 229.031, 229.041, 229.171, 229.180[(1)]

      STATUTORY AUTHORITY: KRS 229.031, 229.041, 229.171, 229.180[(1)]

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 229.171(1) authorizes the commission to exercise sole jurisdiction over all boxing, kickboxing, mixed martial arts, and wrestling shows, exhibitions, and licensees in the commonwealth. KRS 229.031(1) imposes a tax of the greater of twenty-five (25) dollars or five (5) percent upon the gross receipts collected by a person conducting an event under the jurisdiction of the commission[authority]. KRS 229.041 permits the commission[authority] to inspect a person’s books to ensure compliance with the tax.[KRS 229.180(1) authorizes the authority to promulgate administrative regulations necessary to implement KRS Chapter 229.] This administrative regulation sets forth rules and procedures governing the sale of tickets to events and shows in the commonwealth.