This law states that certain bonds must be in place to ensure payments are made in a specific order of importance: first for taxes and fines owed to the state, then for medical insurance and pension fund contributions, assessments for specific medical exams, competitors' prize money, ticket refunds, and fees for various contest officials. If a contest is canceled without a good reason, the bond must cover costs related to the contest's approval. The commission will decide on the specifics of the bond payments.
The bonds required under this article shall guarantee, in order of priority, the payment of all taxes and fines due and payable to the state, the payment of contributions for medical insurance and to the pension fund, the payment of assessments for neurological examinations, as specified in subdivision (c) of Section 18711, the payment of the purses to the competitors, the repayment to consumers of purchased tickets, the payment of fees to the referees, judges, timekeepers, and physicians, and in the event of the cancellation of a contest or match approved by the commission without good cause, an amount determined by the commission which does not exceed the commission’s actual cost in connection with the approval of the contest or match. The circumstances and allocation of bond payment shall be determined by the commission.
