Michigan Office of Administrative Hearings and Rules

Administrative Rules Division (ARD)

611 W. Ottawa Street

Lansing, MI 48909

Phone: 517-335-8658 Fax: 517-335-9512

REGULATORY IMPACT STATEMENT

and COST-BENEFT ANALYSIS (RIS)

Agency Information:

Department name:

Licensing and Regulatory Affairs

Bureau name:

Corporations, Securities, & Commercial Licensing

Name of person filling out RIS:

Mackenzie Jones

Phone number of person filling out RIS:

231-944-3225

E-mail of person filling out RIS:

JonesM52@michigan.gov

Rule Set Information:

ARD assigned rule set number:

2020-131 LR

Title of proposed rule set:

Unarmed Combat

Comparison of Rule(s) to Federal/State/Association Standard

1. Compare the proposed rules to parallel federal rules or standards set by a state or national licensing agency or

accreditation association, if any exist.

MCL 24.245(3)

RIS-Page 2

The Department of Licensing and Regulatory Affairs (“department”), Unarmed Combat Commission (“Commission”)

regulates unarmed combat events, contestants, officials, and promoters. The proposed rules are designed to allow

kickboxing and muay thai events under the Michigan Unarmed Combat Regulation Act (“Act”) regulatory structure,

improve the reliability and competency of contest officials, and improve the integrity of unarmed combat events in

Michigan. The existing rules already adhere to the Professional Boxing Safety Act, Pub. L. 104-272, 110 Stat. 3309-

13, and the Muhammad Ali Boxing Reform Act, Pub L. No. 106-210, 114 Stat. 321 (2000), for professional boxing.

Proposed R 339.204a applies to boxing, mixed martial arts, and kickboxing or muay thai events in the state. The

Professional Boxing Safety Act, 15 U.S.C. § 6308, prevents conflicts of interest among members and employees of

state boxing Commissions with promoters and establishes a “firewall” between promoters and managers of boxing

contests. In Michigan, referees, judges, and timekeepers (“contest officials”) require separate licenses under the Act

and are not members or employees of the Commission for purposes of 15 U.S.C. § 6308. There is no federal law

prohibiting conflicts of interest between contest officials, who are not employees of a boxing commission, and

promoters, contestants, seconds, trainers, or managers. Proposed R 339.204a establishes a duty of impartiality for

contest officials and limits contest officials’ communications with promoters, contestants, seconds, trainers, or

managers strictly to their assigned roles as referees, judges, or timekeepers at an event.

R 339.261(3) establishes a minimum purse for professional boxing, mixed martial arts, and kickboxing or muay thai

contests. The Muhammad Ali Boxing Reform Act, 15 U.S.C. § 6307a, requires the Association of Boxing

Commissions and Combative Sports (“ABC”) to establish “guidelines for minimum contractual provisions that should

be included in bout agreements and boxing contracts.” There is no federal law requiring minimum purse or contract

provisions for unarmed combat sports, only guidelines established by the ABC.

There is no federal law, national licensing agency, or accreditation association for mixed martial arts, kickboxing,or

muay thai events or contests.

A. Are these rules required by state law or federal mandate?

The existing rules adhere to the mandates for boxing commissions established by the federal Professional Boxing

Safety Act and the Muhammad Ali Boxing Reform Act. These acts require state boxing commissions to establish

safety standards, procedures regarding the suspension of boxers, procedures for drug testing, procedures for

disclosing interests, prohibitions against conflicts of interest, and other requirements for the sport of boxing. 15

U.S.C. § 6301 through § 6313. There are no federal mandates applicable to mixed martial arts, kickboxing, or muay

thai.

Section 22(2) of the Michigan Unarmed Combat Regulatory Act (“Act”), MCL 338.3622(2), requires the

Commission to review the ABC model rules before promulgating rules for the administration of the Act. Proposed R

339.223b, R 339.223c, R 339.225a, R 339.226b, R 339.226c, R 339.230a, R 339.230b, R 339.232a, R 339.232b, and

R 339.246b derive from the ABC unified rules for kickboxing and muay thai.

Section 22(4) of the Act, MCL 338.3622(4), requires the Commission to promulgate rules that establish the number

and qualifications of ring officials; powers, duties, and compensation of ring officials; qualifications, activities, and

responsibilities of licensees; license fees not otherwise provided under this Act; any necessary standards designed to

accommodate federally imposed mandates that do not directly conflict with the Act; a list of enhancers and prohibited

substances, the presence of which is grounds for suspension or revocation of the license or other sanctions; and

standards to protect the health and safety of contestants participating in contests or events. Proposed R 339.104, R

339.223b, R 339.223c, R 339.225a, R 339.226b, R 339.226c, R 339.230a, R 339.230b, R 339.232a, R 339.232b, and

R 339.246b are designed to fulfill the requirements under section 22(4) of the Act that allow for the administration of

kickboxing and muay thai contests or events in the State. Furthermore, proposed R 339.204a establishes a duty of

impartiality on contest officials and limits contest officials’ communications with promoters, contestants, seconds,

trainers, and managers.

Section 54a(2)(e) of the Act, MCL 338.3654a(2)(e), mandates that the Department set weight classifications for

contestants by rule. Proposed R 339.201 adds “atomweight” as a weight classification for mixed martial arts contests.

MCL 24.245(3)

RIS-Page 3

B. If these rules exceed a federal standard, please identify the federal standard or citation, describe why it is

necessary that the proposed rules exceed the federal standard or law, and specify the costs and benefits arising out

of the deviation.

Neither the existing rules nor the proposed rules exceed a federal standard.

2. Compare the proposed rules to standards in similarly situated states, based on geographic location, topography,

natural resources, commonalities, or economic similarities.

Thirty-eight states regulate some form of kickboxing or muay thai as an unarmed combat sport. Among the 38 states,

24 states regulate both amateur and professional kickboxing or muay thai. The proposed rules will allow both amateur

and professional mixed martial arts events to be conducted in Michigan. The Commission looked at states within the

Great Lakes Region and Pennsylvania, Ohio, and Wisconsin that already regulate kickboxing and or muay thai. See:

State of Pennsylvania: 58 Pa. Code § 25.1 through 58 Pa. Code § 27.3.

State of Ohio: OAC 3773-1-01 through OAC 3773-9-06.

State of Wisconsin: Wis. Admin. Code § SPS 192.56 through SPS 192.92.

Each state sets its safety standards, weight classes, and standards of conduct during kickboxing or muay thai boxing

contests. Some of the states do not have established standards of conduct during a kickboxing or muay thai contest but

allow for kickboxing competition to occur in the state. Other states adopt or mirror the ABC’s model rules.

Also, each state establishes licensing requirements for contestants, officials, and promoters. Each state has minimal

conflicts of interest restrictions for contest officials, because each state’s athletic commission directly appoints contest

officials.

When developing R 339.261(3), the Commission looked at several different states that require a minimum purse by

contract that promoters are required to pay to contestants in professional unarmed combat contests. The Commission

looked at the minimum purse requirements in states with a small market for unarmed combat events and in states with

a large market for unarmed combat events. Alabama, Georgia, and Washington D.C. have a small market for unarmed

combat events. California and Pennsylvania are states with a large market for unarmed combat events. Alabama and

California require a minimum purse of $100 per contracted round to be paid to professional contestants. Washington

D.C. and Georgia require a minimum purse of $50 per contracted round, and Pennsylvania has a flat minimum of $50

per contest. R 339.261(3) would set the minimum purse at $100 per contracted round.

A. If the rules exceed standards in those states, please explain why and specify the costs and benefits arising out of

the deviation.

If the proposed kickboxing and muay thai rules exceed the standards in other jurisdictions' rules, it is because those

jurisdictions have not adopted the ABC model rules. The ABC model rules provide consistency and uniformity to

health and safety standards applicable to unarmed combat competition throughout the country. There are no known

costs associated with adopting the ABC model rules, and the Commission is unaware of how many states have

adopted the model rules for kickboxing and muay thai.

The minimum purse requirement in R 339.261(3) exceeds Washington D.C., Georgia, and Pennsylvania’s minimum

purse requirement. The minimum $100 purse per contracted round is consistent with Alabama and California’s

minimum purse requirement. One of the Commission's professional members, who is a former championship boxer,

stated that $100 per contracted round is consistent with current industry practice. Additionally, the Commission has

seen contracts for professional contests in Michigan set at $1 where promoters also require contestants to sell tickets

in a separate contract or agreement that is not disclosed to the department, contrary to the requirements of section 33

(9) of the Act, MCL 338.3633(9). Selling tickets as a factor in determining the amount of the purse a contestant

receives is prohibited by section 54a(2)(bb) of the Act, MCL 338.3654a(2)(bb). Setting a minimum purse for

professional contests helps discourage these undisclosed, illegal agreements. While this rule may increase costs for a

promoter, the minimum $100 purse per contracted round is customary for the industry and would marginally impact

a promoter’s ability to promote unarmed combat contests.

3. Identify any laws, rules, and other legal requirements that may duplicate, overlap, or conflict with the proposed

rules.

MCL 24.245(3)

RIS-Page 4

The Commission is unaware of other laws, rules, or legal requirements that duplicate or conflict with the proposed

rules.

A. Explain how the rules have been coordinated, to the extent practicable, with other federal, state, and local laws

applicable to the same activity or subject matter. This section should include a discussion of the efforts undertaken

by the agency to avoid or minimize duplication.

The proposed rules do not duplicate, overlap, or conflict with other federal, state, or local laws, rules, or other legal

requirements.

4. If MCL 24.232(8) applies and the proposed rules are more stringent than the applicable federally mandated

standard, provide a statement of specific facts that establish the clear and convincing need to adopt the more

stringent rules.

Section 32(8) of the Administrative Procedures Act, MCL 24.232(8), does not apply.

5. If MCL 24.232(9) applies and the proposed rules are more stringent than the applicable federal standard,

provide either the Michigan statute that specifically authorizes the more stringent rules OR a statement of the

specific facts that establish the clear and convincing need to adopt the more stringent rules.

Section 32(9) of the Administrative Procedures Act, MCL 24.232(9), does not apply.

Purpose and Objectives of the Rule(s)

6. Identify the behavior and frequency of behavior that the proposed rules are designed to alter.

MCL 24.245(3)

RIS-Page 5

The Commission and department are vested with management, control, and jurisdiction over all professional boxing,

professional or amateur mixed martial arts, and all other unarmed combat contests or events in the state. See MCL

338.3622(8). The Act and the unarmed combat rules currently do not provide for safety standards, procedures, or a

regulatory structure that allow for kickboxing and muay thai events to safely occur in the state. R 339.101(1)(i) and

(l), R 339.104, R 339.203(5), R 339.223b, R 339.223c, R 339.225a, R 339.226b, R 339.226c, R 339.230a, R

339.230b, R 339.232a, R 339.232b, and R 339.246b would establish safety standards, procedures, and a regulatory

approval process for kickboxing and muay thai events similar to those already in place for boxing and mixed martial

arts events in Michigan.

R 339.201(3)(a) would add the atomweight weight classification for mixed martial arts contests. Atomweight is a new

weight classification popularized in women’s mixed martial arts contests. Currently, those who weigh up to 105

pounds are classified as strawweight, and there is a great disparity in physical skill that is unsafe for the contestants

that weigh up to 105 pounds.

The Commission determined that the amateur experience requirement in R 339.203 was too rigid and needs to instead

afford the Commission and the department the flexibility to allow an amateur to obtain a professional license that

matches his or her skill set and talent. R 339.203(3)(c), (4)(c), and (5)(c) would allow individuals who have

experience in one unarmed combat profession to use it towards obtaining licensure for another unarmed combat

profession.

The Commission has received complaints from the public and contestants alleging favoritism from contest officials

towards certain promoters, contestants, managers, trainers, and seconds. Proposed R 339.204a is designed to prevent

actual or perceived conflicts of interest that contest officials may have with promoters, managers, seconds, trainers, or

contestants by requiring each contest official to remain impartial and limit their communication with contest

participants to only that necessary to satisfy their role as a contest official.

Currently, there is no threshold amount that a promoter is required to pay professional unarmed combat contestants.

The Commission is aware of a practice where promoters set the purse amount for a professional contract at $1 and

make separate agreements with contestants, which are not disclosed to the department, that require contestants to sell

tickets in exchange for a percentage of the sale of the tickets. Selling tickets as a factor in determining the amount of

the purse a contestant receives is prohibited by section 54a(2)(bb) of the Act, MCL 338.3654a(2)(bb). Entering into

separate agreements with a contestant without disclosing them to the department is contrary to the requirements of

section 33(9) of the Act, MCL 338.3633(9). The frequency of this misconduct is unknown, because the burden to

disclose contracts is on a promoter. The minimum purse requirement in proposed R 339.261(3) will help discourage

this practice that has the potential to jeopardize the welfare of professional contestants.

Proposed R 339.205a, R 339.226, R 339.230, and R 339.232 would update the unarmed combat rules related to mixed

martial arts to render them consistent with the ABC’s model rules for mixed martial arts. R 339.226 would add a new

type of contest result, and R 339.230 would change the judging criteria for mixed martial arts to render it more

consistent with the judging criteria in the ABC model rules. R 339.205a and R 339.232 would make changes to terms

to render them consistent with the ABC model rules and standard industry terminology.

A. Estimate the change in the frequency of the targeted behavior expected from the proposed rules.

MCL 24.245(3)

RIS-Page 6

Because of the growth of the sport in the state and public comments the Commission has received, the Commission

anticipates that there will be an increase in event applications for kickboxing and muay thai events in the state

following the promulgation of R 339.101(1)(i) and (l), R 339.104, R 339.203(5), R 339.223b, R 339.223c, R

339.225a, R 339.226b, R 339.226c, R 339.230a, R 339.230b, R 339.232a, R 339.232b, and R 339.246b.

Under proposed R 339.201(3)(a), promoters may promote contests in a new classification for those weighing up to

105 pounds. The frequency of a change is indeterminate. Atomweight is not a weight classification recognized in the

current rules that create a large weight class disparity in competition between mixed martial arts contestants.

Individuals that have experience and talent in one unarmed combat contest will be qualified to apply for professional

licenses in other unarmed combat sports because of R 339.203 subrule (3)(c), (4)(c), and (5)(c).

The Commission expects that there will be fewer complaints questioning the impartiality of contest officials during

unarmed combat contests because of R 339.204a.

The Commission expects that professional contestants will receive fair compensation through the minimum purse

requirements in R 339.261(3), which will also discourage the use of side contracts requiring the sale of event tickets

already prohibited by the Act.

A referee may declare a double knockout if the referee determines that both contestants are in a condition that might

subject the contestants to severe injury under proposed R 339.226a. Under R 339.230, judges will be required to

judge mixed martial arts contests consistent with the judging criteria set forth in the ABC model rules for mixed

martial arts. There will be no change in behavior or practice based on the adoption of R 339.205a and R 339.232,

since these rules would only change the terminology used in the rules.

B. Describe the difference between current behavior/practice and desired behavior/practice.

MCL 24.245(3)

RIS-Page 7

Currently, no kickboxing or muay thai events are occurring in Michigan because of a lack of a regulatory structure

and safety standards for these unarmed combat sports. Proposed R 339.101(1)(i) and (l), R 339.104, R 339.203(5), R

339.223b, R 339.223c, R 339.225a, R 339.226b, R 339.226c, R 339.230a, R 339.230b, R 339.232a, R 339.232b, and

R 339.246b will allow kickboxing and muay thai events to safely occur in Michigan and will allow promoters to seek

approval for these unarmed combat events through the established application process.

Atomweight is not a weight classification recognized in the current rules resulting in a large disparity within the

strawweight classification between mixed martial arts contestants. Under R 339.201(3)(a), promoters may promote

mixed martial arts contests using a new classification for those weighing up to 105 pounds.

Currently, the amateur experience requirement in R 339.203 is rigid and prevents individuals with experience in one

unarmed combat sport to transfer their experience and skills towards professional licensure in another unarmed

combat sport . R 339.203 subrule (3)(c), (4)(c), and (5)(c) will allow those with the requisite amateur experience in

one unarmed combat sport to obtain a professional license in a different unarmed combat sport.

Currently, there is no express requirement for a contest official to remain impartial in the Act or the rules. However,

impartiality is implied in the list of actions the department may take against the license of a contest official in section

47 of the Act, MCL 338.3647. The Commission lacks control over which qualified contest officials a promoter lists on

his or her Request for Event form for an unarmed combat event. Proposed R 339.204a imposes a duty of impartiality

on contest officials and limits contest officials’ communications with promoters, contestants, seconds, trainers, or

managers.

Section 11(g) of the Act, MCL 338.3611(g), defines “purse” as “a prize or any other remuneration offered to

contestants to compete in a contest or event, including payment received for radio, television, motion picture rights, or

other media.” Currently, the purse in professional contracts can be any dollar amount negotiated between a promoter

and contestant or contestant’s manager so long as tickets are not a factor in determining the purse. The minimum

purse requirement in R 339.261(3) will set the baseline purse amount in professional contracts at $100 per contracted

round.

Currently, a referee cannot declare a double knockout under R 339.226a. Under Rule 339.230, judges would be

required to judge mixed martial arts using criteria set forth in the ABC model rule set for mixed martial arts. There

would be no change in behavior or practice because of the promulgation of R 339.205a and R 339.232, since those

rules would only change the terminology used.

C. What is the desired outcome?

MCL 24.245(3)

RIS-Page 8

The desired outcome of R 339.101(1)(i) and (l), R 339.104, R 339.203(5), R 339.223b, R 339.223c, R 339.225a, R

339.226b, R 339.226c, R 339.230a, R 339.230b, R 339.232a, R 339.232b, and R 339.246b is to allow for the

promotion of kickboxing and muay thai events in the state.

The desired outcome of R 339.201(3)(a) is to allow atomweight contests to occur at mixed martial arts events and

encourage more participation in mixed martial arts events by women.

The desired outcome of R 339.203 subrule (3)(c), (4)(c), and (5)(c) is to provide more flexibility to those with

experience and skill in one amateur unarmed combat sport to obtain a professional unarmed combat license in a

different unarmed combat sport.

The desired outcome of R 339.204a is to increase the integrity of unarmed combat contests and events by expressly

requiring the impartiality of contest officials.

The desired outcome of R 339.261(3) is to prevent illegal and secret side contracts and ensure that professional

contestants receive fair compensation for displaying their unarmed combat skills.

The desired outcome of R 339.205a, R 339.226, R 339.230, and R 339.232 is to increase the safety of mixed martial

arts contests while also rendering the rules of engagement for such contests consistent with the ABC model rules for

mixed martial arts and standard industry terminology.

7. Identify the harm resulting from the behavior that the proposed rules are designed to alter and the likelihood

that the harm will occur in the absence of the rule.

MCL 24.245(3)

RIS-Page 9

Currently, the Commission does not sanction or approve muay thai or kickboxing events in the state. Without rules of

engagement or a regulatory structure in place, promoters cannot capitalize on the market for professional kickboxing

or muay thai events in the state. The frequency of requests for muay thai or kickboxing event approval is

indeterminate, but the Commission receives public comment regularly at Commission meetings from individuals

expressing support for allowing muay thai and kickboxing events in the state. Without R 339.101(1)(i) and (l), R

339.104, R 339.203(5), R 339.223b, R 339.223c, R 339.225a, R 339.226b, R 339.226c, R 339.230a, R 339.230b, R

339.232a, R 339.232b, and R 339.246b there is a barrier to the promotion of kickboxing and muay thai events in

Michigan.

Similarly, without the appropriate weight classifications, promoters cannot capitalize on the market for contests

between mixed martial arts contestants that would fall within the atomweight classification. Atomweight classification

is a new weight classification for women’s mixed martial arts contests. Without R 339.201(3)(a) there is a barrier to

the promotion of atomweight contests in mixed martial arts events and to the participation of women in mixed martial

arts.

After the adoption of the amateur experience requirement for professional unarmed combat contestants in 2018-105

LR, the Commission received two complaints from amateur contestants wishing to obtain a professional designation

who demonstrated their competence in one or more unarmed combat sports. R 339.203 subrule (3)(c), (4)(c), would

offer flexibility to those trying to demonstrate the requisite experience to obtain a professional unarmed combat

license in a different sport.

The Commission received complaints from the public alleging favoritism towards promoters and other event

participants from contest officials before, during, and after unarmed combat contests. Without R 339.204a that would

expressly require the impartiality of contest officials, the Commission is limited in its authority to ensure fair

competition in unarmed combat contests.

Without R 339.261(3), professional contestants may be subject to illegal and secret side agreements with promoters

and may not be fairly compensated for their display of unarmed combat skills in the ring or cage.

There is no tangible harm that R 339.205a, R 339.226, R 339.230, and R 339.232 aim to address. R 339.205a, R

339.226, R 339.230, and R 339.232 are designed to render the rules more consistent with standard industry practice,

the ABC model rules for mixed martial arts, and those states that adopted the model rules.

A. What is the rationale for changing the rules instead of leaving them as currently written?

Without the proposed rules, kickboxing and muay thai events could not occur safely in the state, and atomweight

mixed martial arts contests could not occur in the state, potentially excluding certain female contestants from

competition. Furthermore, the current professional unarmed combat license experience requirements prevents amateur

unarmed combat contestants from obtaining a professional license in a different unarmed combat sport where their

skill and experience in another unarmed combat sport could be more advantageous.

Fair competition supports the continued economic viability of unarmed combat events in Michigan and attracts

contestants, promoters, and matchmakers and their business to the state. Without a rule addressing contest officials’

impartiality, the integrity of contest results will be questioned, and even the appearance of impropriety between

contest officials and event participants will undermine fair competition.

A minimum purse amount for professional contests helps discourage promoters from entering into secret contracts

with contestants that require contestants to sell tickets to the event as part of their purse and better protect a

professional contestant’s rights under the Act.

8. Describe how the proposed rules protect the health, safety, and welfare of Michigan citizens while promoting a

regulatory environment in Michigan that is the least burdensome alternative for those required to comply.

MCL 24.245(3)

RIS-Page 10

The proposed rules are intended to allow the promotion of safe kickboxing and muay thai contests in the state,

expressly require that contest officials remain impartial, and foster an environment of compliance with laws and rules

that apply to contracts between promoters and professional contestants. The proposed rules set rules of engagement

and standards of conduct for kickboxing or muay thai contests that promote fair competition, prevent contracts

providing for contestant compensation based on ticket sales, and increase the welfare of professional contestants.

9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.

There are no rules in the affected rule set that are obsolete or unnecessary. The Commission rescinded rules that were

obsolete or unnecessary in 2018-105 LR.

Fiscal Impact on the Agency

Fiscal impact is an increase or decrease in expenditures from the current level of expenditures, i.e. hiring additional staff,

higher contract costs, programming costs, changes in reimbursements rates, etc. over and above what is currently

expended for that function. It does not include more intangible costs for benefits, such as opportunity costs, the value of

time saved or lost, etc., unless those issues result in a measurable impact on expenditures.

10. Please provide the fiscal impact on the agency (an estimate of the cost of rule imposition or potential savings

for the agency promulgating the rule).

There would be little to no cost in implementing the proposed rules. The Commission may instead see an increase in

revenue because of new kickboxing and muay thai events being held in the state.

11. Describe whether or not an agency appropriation has been made or a funding source provided for any

expenditures associated with the proposed rules.

The Commission does not anticipate the current level of expenditure to increase or decrease because of these rules.

Therefore, the Commission has not made an agency appropriation.

12. Describe how the proposed rules are necessary and suitable to accomplish their purpose, in relationship to the

burden(s) the rules place on individuals. Burdens may include fiscal or administrative burdens, or duplicative

acts.

There will be no financial burden on the Commission for administering the proposed rules, and there are no

duplicative acts. The burdens associated with the promotion of an unarmed combat event are established by statute.

Any additional burdens imposed by the rules are necessary to ensure public safety and welfare, compliance,

uniformity, and fairness with respect to unarmed combat events within the confines of the Act.

A. Despite the identified burden(s), identify how the requirements in the rules are still needed and reasonable

compared to the burdens.

The rules are reasonable, because they protect contestants, officials, and other participants in an unarmed combat

event from injury and exploitation. Furthermore, the proposed rules further the goal of increasing fair competition by

requiring the impartiality of contest officials involved in unarmed combat events. They also make it more difficult for

a promoter to enter into an illegal side agreement with a contestant that requires them to sell tickets to an unarmed

combat event as part of their compensation.

Impact on Other State or Local Governmental Units

13. Estimate any increase or decrease in revenues to other state or local governmental units (i.e. cities, counties,

school districts) as a result of the rule. Estimate the cost increases or reductions for other state or local

governmental units (i.e. cities, counties, school districts) as a result of the rule. Include the cost of equipment,

supplies, labor, and increased administrative costs in both the initial imposition of the rule and any ongoing

monitoring.

The proposed rules affect licensees and unarmed combat contests under the Act. The rules do not affect other state

departments or local government revenues or costs. It is possible that the ability to promote muay thai or kickboxing

events in Michigan might result in a slight increase in indirect revenue generated by participants and spectators who

attend these events.

14. Discuss any program, service, duty, or responsibility imposed upon any city, county, town, village, or school

district by the rules.

MCL 24.245(3)

RIS-Page 11

The proposed rules do not impose any program, service, duty, or responsibility on any city, county, town, village, or

school district.

A. Describe any actions that governmental units must take to be in compliance with the rules. This section should

include items such as record keeping and reporting requirements or changing operational practices.

There are no required actions that other governmental units must take to be in compliance with the proposed rules.

15. Describe whether or not an appropriation to state or local governmental units has been made or a funding

source provided for any additional expenditures associated with the proposed rules.

These rules do not require any additional appropriations to state or local governmental units.

Rural Impact

16. In general, what impact will the rules have on rural areas?

These rules will apply uniformly throughout Michigan and will have no direct or indirect impact on rural areas.

A. Describe the types of public or private interests in rural areas that will be affected by the rules.

There are no public or private interests in rural areas affected by these rules. The rules apply to all of Michigan,

regardless of public or private demographics.

Environmental Impact

17. Do the proposed rules have any impact on the environment? If yes, please explain.

These rules focus on the regulation of the unarmed combat industry and will have no impact on the environment.

Small Business Impact Statement

18. Describe whether and how the agency considered exempting small businesses from the proposed rules.

The Commission did not consider exempting small businesses from the proposed rules, because the proposed rules

will not disproportionately affect small businesses. The proposed rules will equally affect all to whom they apply,

regardless of the size of the business. Promoters are no more or no less likely to meet the requirements of the

proposed rules based on their business size. Therefore, the rules require equal application across all business sizes.

19. If small businesses are not exempt, describe (a) the manner in which the agency reduced the economic impact

of the proposed rules on small businesses, including a detailed recitation of the efforts of the agency to comply

with the mandate to reduce the disproportionate impact of the rules upon small businesses as described below (in

accordance with MCL 24.240(1)(a-d)), or (b) the reasons such a reduction was not lawful or feasible.

Small businesses are not specifically exempt from the requirements of the proposed rules, because the Commission

does not believe the rules will disproportionately affect small businesses. Further, the Commission believes that the

application of the proposed rules to both small and large businesses alike is essential to ensuring the health, safety,

and general welfare of unarmed combat contestants, participants, and the public and to ensuring the integrity of

unarmed combat events statewide.

A. Identify and estimate the number of small businesses affected by the proposed rules and the probable effect on

small businesses.

According to a report generated by the Commission’s licensing database, there are 16 active promoter licenses. The

report separates the promoter licenses by business and individual. As of October 19, 2021, six businesses hold an

active promoter licenses, and 10 individuals hold an active promoter license. The number of promoters that fall

within the definition of “small business” is unknown. The Commission does not collect the data necessary to

determine if a promoter falls within the definition of “small business” in section 7a of the Administrative Procedures

Act, MCL 24.207a. As noted in questions 18 and 19, the department does not anticipate that the proposed rules will

have a disproportionate impact on small businesses.

B. Describe how the agency established differing compliance or reporting requirements or timetables for small

businesses under the rules after projecting the required reporting, record-keeping, and other administrative costs.

The Commission did not establish differing compliance or reporting requirements or timetables for small businesses

under the proposed rules.

MCL 24.245(3)

RIS-Page 12

C. Describe how the agency consolidated or simplified the compliance and reporting requirements for small

businesses and identify the skills necessary to comply with the reporting requirements.

The Commission did not consolidate or simplify the compliance and reporting requirements necessary to comply

with the proposed rules for small businesses. No specific skills are necessary to comply with the standards

established by the proposed rules.

D. Describe how the agency established performance standards to replace design or operation standards required

by the proposed rules.

The proposed rules are not designed to replace design or operations standards. The proposed rules are designed to

allow kickboxing and muay thai events in the state, expressly require the impartiality of contest officials, and provide

for the safe and efficient administration of the Act.

20. Identify any disproportionate impact the proposed rules may have on small businesses because of their size or

geographic location.

As mentioned in response to question 19a, the Commission does not collect data necessary to determine if a

promoter falls within the definition of “small business” in section 7a of the Administrative Procedures Act, MCL

24.207a. Unarmed combat events occur throughout the state regardless of the size or geographic location of a

promoter’s business.

21. Identify the nature of any report and the estimated cost of its preparation by small businesses required to

comply with the proposed rules.

The proposed rules do not establish any new reports for promoters or small businesses. It is unknown whether any of

the promoters licensed under the Act fall under the definition of a “small business.” The rules apply to all promoters

licensed in this state, regardless of whether the promoter is a “small business.” Promoters are required to submit a

report on a form provided by the department under section 54a(2)(aa) of the Act, MCL 338.3654a, that details contest

results and any recommendations from a physician regarding the health of contestants that competed in an event. The

cost of this report is minimal, because the form provided by the department is the same for all unarmed combat

events.

22. Analyze the costs of compliance for all small businesses affected by the proposed rules, including costs of

equipment, supplies, labor, and increased administrative costs.

The proposed rules will not result in an increase in the costs associated with the purchase of equipment or supplies

nor will they result in increased administrative costs. There may be an increased cost associated with the minimum

purse requirement for professional contestants, but, as described in response to question 2a, the $100 per contracted

round is an established industry standard for professional contests.

23. Identify the nature and estimated cost of any legal, consulting, or accounting services that small businesses

would incur in complying with the proposed rules.

The Commission does not believe that legal, consulting, or accounting services are required for small businesses to

ensure compliance with the proposed rules.

24. Estimate the ability of small businesses to absorb the costs without suffering economic harm and without

adversely affecting competition in the marketplace.

The Commission believes that a small business will be able to fully absorb the costs associated with the changes to

the rules.

25. Estimate the cost, if any, to the agency of administering or enforcing a rule that exempts or sets lesser

standards for compliance by small businesses.

The proposed rules do not exempt or set lesser standards for compliance by small businesses. There is no additional

cost to the agency beyond its current operational cost.

26. Identify the impact on the public interest of exempting or setting lesser standards of compliance for small

businesses.

There could be a large negative impact on the public interest if small businesses were exempt or held to a lesser

standard than large businesses in the unarmed combat industry. The standards established by the proposed rules are

intended to protect the health, safety, and welfare of unarmed combat contestants, increase fairness and impartiality,

and encourage the expansion of unarmed combat contests and events in Michigan. The Commission does not believe

that differing requirements or a blanket exemption from the application of the proposed rules would be consistent

with the goals and purposes of the Act. Exempting or establishing different standards for small businesses would be

inconsistent with Act and federal law.

MCL 24.245(3)

RIS-Page 13

27. Describe whether and how the agency has involved small businesses in the development of the proposed rules.

Small businesses were not involved in the formulation of the proposed rules. The Department consulted with and

received the advice of the Commission’s Rules Advisory Committee in developing the proposed rules.

A. If small businesses were involved in the development of the rules, please identify the business(es).

No small businesses were involved in the formulation of the proposed rules.

Cost-Benefit Analysis of Rules (independent of statutory impact)

28. Estimate the actual statewide compliance costs of the rule amendments on businesses or groups.

The regulatory structure of the Act places a majority of the costs of scheduling and safely conducting an unarmed

combat event on a licensed promoter. The responsibility for organizing and advertising the event and complying with

the rules of engagement for kickboxing or muay thai events will primarily be borne by promoters. Section 33 of the

Act, MCL 338.3633, details the costs to obtain a promoter’s license and a bond in the required amount. It also sets

forth the regulatory enforcement fee and the application costs for all unarmed combat events. A new promoter that

conducts a kickboxing or muay thai event in the state will pay a $300 annual license fee, $500 event application fee

for each event, 3% of the total gross receipts from any contracts for the sale, lease, or other exploitation of

broadcasting, television, and motion picture rights or other media for the event (not to exceed $25,000), and the cost

of a bond that covers not less than $20,000 or more than $50,000 of damages by the promoter for nonpayment of any

liabilities associated with the event. In addition, the Act requires promoters to pay event insurance policy premiums

that cover at least $50,000.00 of a contestant’s medical and hospital expenses related to injuries sustained in the

contest or event and at least $50,000.00 if the contestant dies because of injuries sustained in a contest or event. See

MCL 338.3655. These costs are set by the Act and apply to all unarmed combat events, not just kickboxing, and

muay thai events.

Also, under R 339.261, promoters would be required to pay professional unarmed combat contestants $100 per

contracted round. Under section 54(2)(a) and (b) of the Act, MCL 338.3654a(2)(a) and (b), the duration of regular

mixed martial arts contests is limited to not more than three rounds and not more than five rounds for championship

mixed martial arts contests. Thus, under proposed R 339.261, promoters that promote a professional mixed martial

arts contest would be required to pay a professional contestant a minimum of $300 or $500 to each professional

contestant. Similarly, under section 54(2)(a) and (b) of the Act, MCL 338.3654a(2)(a) and (b), the duration of regular

boxing contests is limited to not more than ten rounds and twelve rounds for championship boxing contests. Under

proposed R 339.261, promoters that promote professional boxing contests would be required to pay a minimum of

$1,000 to $1,200 to each professional boxing contestant. Under proposed R 339.104, promoters that contract with

professional kickboxing or muay thai contestants would be required to pay the same minimum purse amount as they

would be required to pay professional boxing contestants. As discussed in response to question 2a, $100 per

contracted round is considered the industry standard and is the minimum amount a promoter would pay under the

proposed rules to professional contestants who compete in the state.

A. Identify the businesses or groups who will be directly affected by, bear the cost of, or directly benefit from the

proposed rules.

The Act places the burden and costs of conducting an unarmed combat event in Michigan on the promoter.

Contestants and contest officials who participate in kickboxing or muay thai events must pay licensing fees under

sections 33a and 33b of the Act, MCL 338.3633a and MCL 338.3633b. Professional unarmed combat contestants

may benefit from the minimum purse requirements of proposed R 339.104. However, as mentioned in the answer to

question 2a, the minimum $100 per contracted round is an industry standard for a minimum purse amount paid to a

professional contestant.

B. What additional costs will be imposed on businesses and other groups as a result of these proposed rules (i.e.

new equipment, supplies, labor, accounting, or recordkeeping)? Please identify the types and number of businesses

and groups. Be sure to quantify how each entity will be affected.

The exact number of new promotors or current promoters that plan to promote kickboxing or muay thai events in the

state is unknown. Except for what is detailed in the answer to question 28, there are no additional costs imposed on

promoters by these proposed rules.

MCL 24.245(3)

RIS-Page 14

29. Estimate the actual statewide compliance costs of the proposed rules on individuals (regulated individuals or

the public). Include the costs of education, training, application fees, examination fees, license fees, new

equipment, supplies, labor, accounting, or recordkeeping.

Sections 33a and 33b of the Act, MCL 338.3633a and MCL 338.3633b, detail the license application costs for all

unarmed combat contestant licenses and contest officials. Kickboxing or muay thai contestants who wish to compete

in the state are required to obtain a contestant license and pay a $45 application fee and an annual license fee of $45.

Anyone who wishes to obtain a participant license must pay a $30 application fee and any of the following annual

licensing renewal fees, depending on the license type: referees - $150, judges - $70, matchmakers - $150, and

timekeepers - $70.

A. How many and what category of individuals will be affected by the rules?

The Commission anticipates that there will be an increase in contestant and participant license applications for

kickboxing and muay thai events in the state. However, the exact number of new kickboxing or muay thai contestant

or participant licenses is unknown.

As of October 8, 2021, there are 90 actively licensed professional boxing contestants and 71 actively licensed

professional mixed martial arts contestants.

As of October 12, 2021, there are 12 actively licensed referees, 25 actively licensed judges, and eight actively

licensed timekeepers. These individuals are defined as “contest officials” in R 339.101(b).

B. What qualitative and quantitative impact do the proposed changes in rules have on these individuals?

Those individuals who have trained in kickboxing and muay thai gyms in Michigan would have an opportunity to

compete locally and further their amateur or professional unarmed combat careers. Also, those who have trained in

kickboxing and muay thai gyms would be able to contribute to the growth of the kickboxing and muay thai sports in

Michigan by obtaining a participant license. The quantitative impact on the sports of kickboxing and muay thai is

unknown, because the Commission does not know how many new license applications will be submitted by

promoters, contestants, and other event participants.

R 339.203(3)(c), (4)(c), and (5)(c) will allow contestants who wish to compete in professional contests in a different

unarmed combat sport that they did not originally train or compete in to apply to do so using experience and skill

obtained in another unarmed combat sport. This will save contestants and managers time and money. The

Commission knows of two circumstances where more flexibility in licensing qualifications would have allowed an

amateur contestant to compete in a different professional unarmed combat sport, but the exact number of amateur

unarmed combat contestants this proposed rule would impact is unknown.

Under proposed R 339.204a, contest officials will be held to a higher standard to ensure their impartiality during

unarmed combat contests. This will prevent unfair competition or the appearance of unfair competition. There is no

known quantitative impact because of proposed R 339.204a. Contest officials may face a penalty if they are found to

have violated proposed R 339.204a through the complaint process outlined in chapter 4 of the Act, MCL 338.3640 to

MCL 339.3649a.

Under proposed R 339.261, professional contestants would be guaranteed a purse of $100 per contracted round if

they compete in a professional contest. Professional contestants would also benefit from the minimum purse

requirement of $100 per contracted round, because it sets a baseline for negotiations with promoters.

30. Quantify any cost reductions to businesses, individuals, groups of individuals, or governmental units as a result

of the proposed rules.

There are no cost reductions to businesses, individuals, groups of individuals, or governmental units because of these

rules.

31. Estimate the primary and direct benefits and any secondary or indirect benefits of the proposed rules. Please

provide both quantitative and qualitative information, as well as your assumptions.

MCL 24.245(3)

RIS-Page 15

The Commission drafted these proposed rules to ensure that the rules align with the requirements of the Act and

standard industry practice, that the law is administered consistently and effectively at unarmed combat events, to

promote participant and public safety and welfare at unarmed combat events, and increase the competitiveness and

fairness of events. The primary benefits are the promotion of new unarmed combat sports in the state, an increase in

the fairness and integrity of competition, and the potential reduction in injuries. The Commission may see increased

revenue from event and license applications related to kickboxing or muay thai events in the state. Based on the little

data available to the Commission, any other quantitative benefit is unknown.

32. Explain how the proposed rules will impact business growth and job creation (or elimination) in Michigan.

The proposed rules may impact business growth or job creation. The Commission anticipates that these rules will

attract new promotion of kickboxing and muay thai events in the state that fosters growth and job creation in the

unarmed combat industry.

33. Identify any individuals or businesses who will be disproportionately affected by the rules as a result of their

industrial sector, segment of the public, business size, or geographic location.

The rules will not disproportionately impact any individuals or small businesses because of their industrial sector, a

segment of the public, business size, or geographic location.

34. Identify the sources the agency relied upon in compiling the regulatory impact statement, including the

methodology utilized in determining the existence and extent of the impact of the proposed rules and a cost-

benefit analysis of the proposed rules.

Information relating to the number of licensees under the Act was acquired through the Corporations, Securities, and

Commercial Licensing Bureau licensing database. The cost and numbers were generated based on licensing

information and reviewing the proposed rules and the Act.

A. How were estimates made, and what were your assumptions? Include internal and external sources, published

reports, information provided by associations or organizations, etc., that demonstrate a need for the proposed

rules.

Estimates and assumptions were made by reviewing the Act, the proposed rules, the ABC model rules, other

jurisdictions’ rules, and seeking the advice of members of the Unarmed Combat Commission with relevant industry

experience. Any numbers generated for the regulatory impact statement and cost-benefit analysis were extracted from

the Corporations, Securities and Commercial Licensing Bureau’s licensing database.

Alternative to Regulation

35. Identify any reasonable alternatives to the proposed rules that would achieve the same or similar goals.

A reasonable alternative for proposed R 339.204a is to require the Commission to appoint contest officials to attend

events instead of promoters. The appearance of impropriety between promoters and contest officials would be

eliminated since the Commission would randomly appoint contest officials to attend an unarmed combat event.

Furthermore, requiring the Commission to appoint contest officials to unarmed combat events would be a practice

consistent with most state athletic commissions that are responsible for regulating unarmed combat sports in the

United States. The Commission determined that the alternative would conflict with Section 54a(1)(f) of the Act,

MCL 338.3654a(1)(f). Section 54a(1)(f) requires a promoter to arrange for contest officials to attend an unarmed

combat event. Therefore, a rule that requires the Commission to appoint a contest official to attend events is not

possible because it would conflict with the Act.

No other reasonable alternatives have been identified that would achieve the same or similar goals of the proposed

rules.

A. Please include any statutory amendments that may be necessary to achieve such alternatives.

Section 54a(1)(f) of the Act, MCL 338.3654a(1)(f), will need to be rescinded and replaced with a requirement that

the Commission appoints contest officials at random.

36. Discuss the feasibility of establishing a regulatory program similar to that proposed in the rules that would

operate through private market-based mechanisms. Please include a discussion of private market-based systems

utilized by other states.

The Commission is unaware of similar programs or private market-based systems in other states, and the federal law

imposes some restrictions for professional boxing contests or events.

MCL 24.245(3)

RIS-Page 16

37. Discuss all significant alternatives the agency considered during rule development and why they were not

incorporated into the rules. This section should include ideas considered both during internal discussions and

discussions with stakeholders, affected parties, or advisory groups.

The alternative described in response to question 35 was not included in the proposed rules, because it would conflict

with section 54a(1)(f) of the Act, MCL 338.3654a(1)(f). There were no other reasonable alternatives presented to or

suggested by the Commission and rules subcommittee. A draft of the proposed rules was circulated to the entire

Unarmed Combat Commission, and individual feedback was provided to the Department and the Unarmed Combat

Commission Rules Subcommittee.

Additional Information

38. As required by MCL 24.245b(1)(c), please describe any instructions regarding the method of complying with

the rules, if applicable.

There are no specific instructions or methods of complying with the rules. The Commission believes that the rules

make plain what is required of promoters, contestants, and officials who conduct or participate in unarmed combat

events that take place under the regulatory structure of the Act. Should these rules go into effect, questions relating to

compliance with the rules should be addressed to the Commission or the department. If necessary, changes will be

made to the event and licensing forms and instructions once the rules are promulgated. In addition, notice and a

summary of the changes will be posted to the Commission’s website, www.mi.gov/ucc.

MCL 24.245(3)