Relates to resale of tickets to places of entertainment; provides for the regulation of boxing and wrestling relating to tickets to places of entertainment.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9181
SPONSOR: Abinanti TITLE OF BILL:
An act to amend the arts and cultural affairs law, in relation to resale
of tickets to places of entertainment; and to repeal article 25 of such
law relating thereto
PURPOSE OR GENERAL IDEA OF BILL:
This bill would establish a maximum price for the resale of tickets to
places of entertainment, and make various other changes to the law
governing ticket sales.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill would repeal Article 25 of the arts and cultural
affairs law and add a new Article 25.
Specifically, section 25.01 contains legislative findings.
Section 25.03 sets forth definitions.
Section 25.05 sets forth conduct that would constitute ticket specu-
lation and makes ticket speculation a misdemeanor.
Section 25.07 would require operators of places of entertainment to
print the established ticket price and maximum premium price on the face
of each ticket, and sets additional requirements on ticket resellers.
Section 25.09 would require every operator of a place of entertainment
having a permanent seating capacity in excess of five thousand persons
to print on each ticket, "This ticket may not be resold within one thou-
sand five hundred feet from the physical structure of this place of
entertainment under penalty of law."
Section 25.11 would prohibit ticket reselling within a buffer zone of
one thousand five hundred feet.
Section 25.13 would require the licensing of ticket resellers, and
prohibit the reselling of any ticket during the first forty-eight hours
after such ticket is first available for primary sale.
Section 25.15 would require applicants for reseller licenses to file a
bond with the secretary of state.
Section 25.17 would grant the secretary of state power to investigate
ticket resale practices.
Section 25.19 would require the recipients of resell licenses to post
the license in a conspicuous place at all times in the principal office
of such business for which it is issued.
Section 25.21 would require licensed resellers to notify the secretary
of state in the event of an office relocation.
Section 25.23 would require every such licensee under this article to
post a price list showing the established price charged by the operator
of the place of entertainment and the price being charged by such licen-
see for the resale of such ticket.
Section 25.24 would make it unlawful for any person to utilize automated
ticket purchasing software.
Section 25.25 would require licensed resellers to keep full and accurate
records of purchases and sales.
Section 25.27 would make it unlawful for any licensee under this article
to pay any commissions to employees of places of entertainment in
connection with the resale of tickets.
Section 25.29 would prohibit operators of entertainment venues from
charging more than the established ticket price, plus taxes and reason-
able service fees, and would give the attorney general concurrent juris-
diction with the district attorney.
Section 25.30 would prohibit operators of entertainment venues from
restricting the resale of any tickets included in a season ticket pack-
age as a condition of purchase; deny access to a ticket holder who
possesses a resold subscription or season ticket to a performance based
solely on the grounds that the ticket was resold; employ a form of
paperless ticketing that is not readily transferable to another customer
through a transaction independent of the operator, unless a purchaser is
given the opportunity initially to purchase the tickets in some other
form, including paper. This section would also prohibit operators from
engaging in the ticket resale business and it would require ticket oper-
ators, promoters and resellers to disclose when a seat for which a tick-
et is offered for sale has an obstructed view.
Section 25.31 would allow the department of state to deny or revoke a
license granted under this article, and impose fines, provided that the
licensee has an opportunity for a hearing.
Section 25.33 would require the attorney general to establish a toll
free telephone number through the office of the attorney general's
website in order to allow the public to make allegations of improper
ticket acquisition, distribution, or sales practices and would require
the attorney general to investigate as appropriate all credible allega-
tions. This section also allows individuals to bring an action to stop
an unlawful act or recover damages as a result of violations of this
article.
Section 25.35 sets forth criminal penalties.
Section 2 is the effective date.
JUSTIFICATION:
This legislation would enact several new provisions to protect consumers
including:
* A price cap of 20% over the established primary market price would be
set for those tickets resold on the secondary market. For both primary
and secondary ticket sales, unrestricted resale creates upward pressure
on pricing and greater potential for market manipulation; a 20% price
cap would help in addressing this problem.
* Prohibiting venue operators and their agents from employing paperless
ticketing systems that prevent consumers from transferring their tickets
independent of the operator or operator's agent, unless the operator
offers the consumer a choice of purchasing independently transferable
tickets in another form.
* Limits on operators by preventing them, or any of their agents, from
engaging in the business of ticket resale on the secondary market.
* Requiring secondary sellers to clearly identify themselves on their
website to prevent confusing and deceptive tactics such as unannounced
website "pass-throughs." The legislation would provide a new reporting
requirement for both primary and secondary ticket seller's that would
enable the State to better determine the impact of the resale market-
place on consumers, as well as to study the purchasing trends of consum-
ers.
* Requiring the Attorney General's office to assume enforcement and
regulation of the ticket resale industry through the creation of a toll
free hotline to allow consumers to report instances of abuse and decep-
tion.
* Providing stronger deterrence, by strengthening criminal penalties
including doubling the fines currently established in the Arts and
Cultural Affairs Law Section 25.35.
* Establishing a short "cooling off" period after the initial release of
tickets to the public during which the secondary market will be prohib-
ited from selling tickets. This will guarantee the public an opportunity
to purchase tickets without interference from the secondary market.
* Prohibiting the use of automated ticket purchasing software, presently
used by unscrupulous speculators to purchase tickets at initial sale
before the general public. While the use of this software is typically
banned by policies of ticket issuers and venue operators, this statutory
prohibition would allow the State to intervene to further protect
consumers.
* Making permanent ACAL § 25.11, which relates to ticket office buffer
zones.
PRIOR LEGISLATIVE HISTORY:
New Assembly Bill;
2013-2014: S210;
2011-2012: S5039
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on and after May 16, 2015.
STATE OF NEW YORK
________________________________________________________________________
9181
IN ASSEMBLY
February 2, 2016
___________
Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
tee on Tourism, Parks, Arts and Sports Development
AN ACT to amend the arts and cultural affairs law, in relation to resale
of tickets to places of entertainment; and to repeal article 25 of
such law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Article 25 of the arts and cultural affairs law is REPEALED
2 and a new article 25 is added to read as follows:
3 ARTICLE 25
4 TICKETS TO PLACES OF ENTERTAINMENT
5 Section 25.01. Legislative findings.
6 25.03. Definitions.
7 25.05. Ticket speculators.
8 25.07. Ticket prices.
9 25.09. Additional printing on tickets.
10 25.11. Resales of tickets within buffer zone.
11 25.13. Licensing of ticket resellers.
12 25.15. Bond.
13 25.17. Supervision and regulation.
14 25.19. Posting of license or certificate.
15 25.21. Change of office location.
16 25.23. Posting of price lists; information to purchaser.
17 25.24. Automated ticket purchasing software.
18 25.25. Records of purchases and sales.
19 25.27. Commissions to employees of places of entertainment.
20 25.29. Unlawful charges in connection with tickets.
21 25.30. Operator prohibitions.
22 25.31. Suspension or revocation of licenses.
23 25.33. Enforcement.
24 25.35. Criminal penalties.
25 § 25.01. Legislative findings. The legislature finds and declares that
26 transactions involving tickets for admission to places of entertainment
27 are a matter of public interest and subject to the supervision of New
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00843-03-6
A. 9181 2
1 York and the appropriate political subdivisions of the state for the
2 purpose of safeguarding the public against fraud, extortion, and similar
3 abuses.
4 The legislature further finds that many ticket resellers advertise and
5 sell tickets to places of entertainment within the boundaries of New
6 York state often from locations outside the state, without adhering to
7 the provisions of this article. The legislature objects to any claim
8 that businesses domiciled outside New York state are exempted from this
9 statute when selling tickets to events occurring in New York state,
10 regardless of the territories of origin of both the buyer and seller. It
11 is the legislature's intent that all governmental bodies charged with
12 enforcement of this article, including the attorney general of New York
13 state have the authority to regulate the activities of all persons
14 reselling tickets to venues located within this state to the full extent
15 of the state's powers under the federal and state constitutions and that
16 this article be construed in light of this purpose.
17 § 25.03. Definitions. As used in this article the term:
18 1. "Entertainment" means all forms of entertainment including, but not
19 limited to, theatrical or operatic performances, concerts, motion
20 pictures, all forms of entertainment at fair grounds, amusement parks
21 and all types of athletic competitions including football, basketball,
22 baseball, boxing, tennis, hockey, and any other sport, and all other
23 forms of diversion, recreation or show.
24 2. "Established price" means the price fixed at the time of sale by
25 the operator of any place of entertainment for admission thereto, which
26 must be printed or endorsed on each ticket of admission.
27 3. "Maximum premium price" means any premium or price in excess of the
28 established price printed or endorsed on the ticket pursuant to section
29 25.07 of this article, plus lawful taxes, so that the ultimate price of
30 the purchase of any such ticket to a place of entertainment shall not
31 exceed the sum of the established price plus twenty percent of the
32 established price.
33 4. "Not-for-profit organization" means a domestic corporation incorpo-
34 rated pursuant to or otherwise subject to the not-for-profit corporation
35 law, a charitable organization registered with the department of law, a
36 religious corporation as defined in section sixty-six of the general
37 construction law, a trustee as defined in section 8-1.4 of the estates,
38 powers and trusts law, an institution or corporation formed pursuant to
39 the education law, a special act corporation created pursuant to chapter
40 four hundred sixty-eight of the laws of eighteen hundred ninety-nine, as
41 amended, a special act corporation formed pursuant to chapter two
42 hundred fifty-six of the laws of nineteen hundred seventeen, as amended,
43 a corporation authorized pursuant to an act of congress approved January
44 fifth, nineteen hundred five, (33 stat. 599), as amended, a corporation
45 established by merger of charitable organizations pursuant to an order
46 of the supreme court, New York county dated July twenty-first, nineteen
47 hundred eighty-six and filed in the department of state on July twenty-
48 ninth, nineteen hundred eighty-six, or a corporation having tax exempt
49 status under section 501 (c) (3) of the United States Internal Revenue
50 Code, and shall further be deemed to mean and include any federation of
51 charitable organizations.
52 5. "Operator" means any person who owns, operates, or controls a place
53 of entertainment or who promotes or produces an entertainment.
54 6. "Place of entertainment" means any privately or publicly owned and
55 operated entertainment facility such as a theatre, stadium, arena, race-
56 track, museum, amusement park, or other place where performances,
A. 9181 3
1 concerts, exhibits, athletic games or contests are held for which an
2 entry fee is charged.
3 7. "Physical structure" means the place of entertainment, or in the
4 case where a structure either partially or wholly surrounds the place of
5 entertainment, such surrounding structure.
6 8. "Resale" means any sale of a ticket for entrance to a place of
7 entertainment located within the boundaries of the state of New York
8 other than a sale by the operator or the operator's agent who is
9 expressly authorized to make first sales of such tickets. Resale shall
10 include sales by any means, including in person, or by means of tele-
11 phone, mail, delivery service, facsimile, internet, email or other elec-
12 tronic means, where the venue for which the ticket grants admission is
13 located in New York state. Except as provided in sections 25.11 and
14 25.27 of this article, the term "resale" shall not apply to any person,
15 firm or corporation which purchases any tickets solely for their own use
16 or the use of their invitees, employees and agents or which purchases
17 tickets on behalf of others and resells such tickets to such invitees,
18 employees and agents or others at or less than the established price.
19 Similarly, the term "resale" shall not apply to any not-for-profit
20 organization, or person acting on behalf of such not-for-profit organ-
21 ization, as long as any profit realized from ticket reselling is wholly
22 dedicated to the purposes of such not-for-profit organization.
23 9. "Ticket" means any evidence of the right of entry to any place of
24 entertainment.
25 10. "Ticket office" means a building or other structure located other
26 than at the place of entertainment, at which the operator or the opera-
27 tor's agent offers tickets for first sale to the public.
28 § 25.05. Ticket speculators. Any person who:
29 1. Conducts on or in any street in a city or in the county of Nassau
30 the business of selling or offering for sale any ticket of admission or
31 any other evidence of the right of entry to any performance or exhibi-
32 tion in or about the premises of any theatre or concert hall, place of
33 public amusement, circus or common show; or
34 2. Solicits on or in any street in a city or in the county of Nassau
35 by words, signs, circulars or other means any person to purchase any
36 such ticket or other evidence of the right of entry; or
37 3. In or from any building, store, shop, booth, yard, garden or in or
38 from any opening, window, door, hallway, corridor or in or from any
39 place of ingress or egress to or from any building, place of business,
40 store, shop, booth, yard or garden in a city or in the county of Nassau
41 indicates, holds out or offers for sale to any person or persons on or
42 in the street by word of mouth, crying, calling, shouting or other means
43 that such ticket or other evidence of the right of entry may be
44 purchased in such building, store, shop, booth, yard, garden or any
45 other place; or
46 4. In or from any such place or places in a city or in the county of
47 Nassau solicits by word of mouth, crying, calling, shouting or other
48 means any person on or in the street to purchase any such ticket or
49 other evidence of the right of entry, is guilty of a misdemeanor.
50 § 25.07. Ticket prices. 1. Every operator of a place of entertainment
51 shall, if a price be charged for admission thereto, print or endorse on
52 the face of each such ticket the established price. Such operator shall
53 likewise be required to print or endorse on each ticket the maximum
54 premium price at which such ticket or other evidence of the right of
55 entry may be resold or offered for resale. It shall be unlawful for any
A. 9181 4
1 person, firm or corporation to resell or offer to resell any ticket to
2 any place of entertainment for more than the maximum premium price.
3 2. Notwithstanding any other provision of law, any person, firm or
4 corporation, regardless of whether or not licensed under this article,
5 that resells tickets or facilitates the resale or resale auction of
6 tickets between independent parties by any means, must guarantee to each
7 purchaser of such resold tickets that the person, firm or corporation
8 will provide a full refund of the amount paid by the purchaser (includ-
9 ing, but not limited to, all fees, regardless of how characterized) if
10 any of the following occurs: (a) the event for which such ticket has
11 been resold is cancelled, provided that if the event is cancelled then
12 actual handling and delivery fees need not be refunded as long as such
13 previously disclosed guarantee specifies that such fees will not be
14 refunded; (b) the ticket received by the purchaser does not grant the
15 purchaser admission to the event described on the ticket, for reasons
16 that may include, without limitation, that the ticket is counterfeit or
17 that the ticket has been cancelled by the issuer due to non-payment, or
18 that the event described on the ticket was cancelled for any reason
19 prior to purchase of the resold ticket, unless the ticket is cancelled
20 due to an act or omission by such purchaser; or (c) the ticket fails to
21 conform to its description as advertised unless the buyer has pre-ap-
22 proved a substitution of tickets.
23 3. Prior to the payment of a refund it shall be the obligation of the
24 seller and purchaser to first make a good faith effort to remedy any
25 disputes where the seller and purchaser have agreed to terms established
26 by the licensee or website manager for the disposition of disputes as a
27 condition to facilitate the transaction.
28 § 25.09. Additional printing on tickets. Every operator of a place of
29 entertainment having a permanent seating capacity in excess of five
30 thousand persons shall, if a price be charged for admission thereto,
31 print or endorse in a clear and legible manner on each ticket, "This
32 ticket may not be resold within one thousand five hundred feet from the
33 physical structure of this place of entertainment under penalty of law".
34 § 25.11. Resales of tickets within buffer zone. 1. No person, firm,
35 corporation or not-for-profit organization, whether or not domiciled,
36 licensed or registered within the state, shall resell, offer to resell
37 or solicit the resale of any ticket to any place of entertainment having
38 a permanent seating capacity in excess of five thousand persons within
39 one thousand five hundred feet from the physical structure of such place
40 of entertainment, or a ticket office.
41 2. No person, firm, corporation or not-for-profit organization, wheth-
42 er or not domiciled, licensed or registered within the state, shall
43 resell, offer to resell or solicit the resale of any ticket to any place
44 of entertainment having a permanent seating capacity of five thousand or
45 fewer persons within five hundred feet from the physical structure or
46 ticket office of such place of entertainment, provided however that
47 current licensees and those seeking a license under this article are
48 exempt from such buffer zone when operating out of a permanent physical
49 structure.
50 3. Notwithstanding subdivisions one and two of this section, an opera-
51 tor may designate an area within the property line of such place of
52 entertainment for the lawful resale of tickets only to events at such
53 place of entertainment by any person, firm, corporation or not-for-pro-
54 fit organization, whether or not domiciled, licensed or registered with-
55 in the state.
A. 9181 5
1 4. For purposes of this section, "ticket office" means a building or
2 other structure located other than at the place of entertainment, at
3 which the operator or the operator's agent offers tickets for first sale
4 to the public.
5 § 25.13. Licensing of ticket resellers. 1. No person, firm or corpo-
6 ration shall resell or engage in the business of reselling any tickets
7 to a place of entertainment or operate an internet website or any other
8 electronic service that provides a mechanism for two or more parties to
9 participate in a resale transaction or that facilitates resale trans-
10 actions by the means of an auction, or own, conduct or maintain any
11 office, branch office, bureau, agency or sub-agency for such business
12 without having first procured a license or certificate for each location
13 at which business will be conducted from the secretary of state. Any
14 operator or manager of a website that serves as a platform to facilitate
15 resale, or resale by way of a competitive bidding process, solely
16 between third parties and does not in any other manner engage in resales
17 of tickets to places of entertainment shall be exempt from the licensing
18 requirements of this section. The department of state shall issue and
19 deliver to such applicant a certificate or license to conduct such busi-
20 ness and to own, conduct or maintain a bureau, agency, sub-agency,
21 office or branch office for the conduct of such business on the premises
22 stated in such application upon the payment by or on behalf of the
23 applicant of a fee of five thousand dollars and shall be renewed upon
24 the payment of a like fee annually. Such license or certificate shall
25 not be transferred or assigned, except by permission of the secretary of
26 state. Such license or certificate shall run to the first day of January
27 next ensuing the date thereof, unless sooner revoked by the secretary of
28 state. Such license or certificate shall be granted upon a written
29 application setting forth such information as the secretary of state may
30 require in order to enable him or her to carry into effect the
31 provisions of this article and shall be accompanied by proof satisfac-
32 tory to the secretary of state of the moral character of the applicant.
33 2. No operator's agent shall sell or convey tickets to any secondary
34 ticket reseller owned or controlled by the operator's agent.
35 2-a. No ticket seller shall resell any ticket during the first forty-
36 eight hours after such ticket is first available for primary sale;
37 provided that such restriction shall not apply with respect to season
38 tickets or bundled series tickets. No ticket seller shall sell or resell
39 any ticket that such seller does not own at the time of the offer or
40 sale. The provisions of this subdivision shall not apply to venues
41 containing less than six thousand seats.
42 3. The operator or the promoter shall determine whether a seat for
43 which a ticket is for sale has an obstructed view, and shall disclose
44 such obstruction. Every sale or resale of such ticket shall include a
45 disclosure of such obstructed view.
46 4. If any licensee under this section demonstrates that their business
47 provides a service to facilitate ticket transactions without charging
48 any fees, surcharges or service charges above the established price, on
49 every transaction, except a reasonable and actual charge for the deliv-
50 ery of tickets, then the fees for licensing under this section shall be
51 waived.
52 § 25.15. Bond. The secretary of state shall require the applicant for
53 a license to file with the application therefor a bond in due form to
54 the people of New York in the penal sum of twenty-five thousand dollars,
55 with two or more sufficient sureties or a duly authorized surety compa-
56 ny, which bond shall be approved by the secretary of state. Each such
A. 9181 6
1 bond shall be conditioned that the obligor will not be guilty of any
2 fraud or extortion, will not violate directly or indirectly any of the
3 provisions of this article or any of the provisions of the license or
4 certificate provided for in this article, will comply with the
5 provisions of this article and will pay all damages occasioned to any
6 person by reason of any misstatement, misrepresentation, fraud or deceit
7 or any unlawful act or omission of such obligor, his or her agents or
8 employees, while acting within the scope of their employment, made,
9 committed or omitted in connection with the provisions of this article
10 in the business conducted under such license or caused by any other
11 violation of this article in carrying on the business for which such
12 license is granted. One or more recoveries or payments upon such bond
13 shall not vitiate the same but such bond shall remain in full force and
14 effect, provided, however, that the aggregate amount of all such recov-
15 eries or payments shall not exceed the penal sum thereof. Before the
16 secretary shall draw upon such bond, the secretary shall issue a deter-
17 mination in writing which shall include the basis of such action. The
18 secretary shall notify in writing the licensee of any such determination
19 and shall afford the licensee an opportunity to respond within twenty
20 days of the receipt of such determination. In no event may the bond be
21 drawn upon in less than twenty-five days after the service of a determi-
22 nation to the licensee. Such written notice may be served by delivery
23 thereof personally to the licensee, or by certified mail to the last
24 known business address of such licensee. Only upon such determination of
25 the secretary shall moneys be withdrawn from the bond. Upon the
26 commencement of any action or actions against the surety upon any such
27 bond for a sum or sums aggregating or exceeding the amount of such bond
28 the secretary of state shall require a new and additional bond in like
29 amount as the original one, which shall be filed with the department of
30 state within thirty days after the demand therefor. Failure to file
31 such bond within such period shall constitute cause for the revocation
32 of the license pursuant to section 25.31 of this article theretofore
33 issued to the licensee upon whom such demand shall have been made. Any
34 suit or action against the surety on any bond required by the provisions
35 of this section shall be commenced within one year after the cause of
36 action shall have accrued.
37 § 25.17. Supervision and regulation. The secretary of state shall have
38 power, upon complaint of any person or on his or her own initiative, to
39 investigate the business, business practices and business methods of any
40 such licensee which relates to this state's or any other state's ticket
41 resale law, or in regards to ticket resale practices generally. Each
42 such licensee shall be obliged, on the reasonable request of the secre-
43 tary of state, to supply such information as may be required concerning
44 his or her business, business practices or business methods provided
45 that the information requested is related to the complaint which forms
46 the basis of such investigation. Each operator of any place of enter-
47 tainment shall also be obliged, on request of the secretary of state, to
48 supply such information as may be required concerning the business,
49 business practices or business methods of any licensee provided that the
50 information requested is related to the complaint which forms the basis
51 of such investigation. The secretary of state shall have the power to
52 promulgate such rules and regulations as may be deemed necessary for the
53 enforcement of this article.
54 § 25.19. Posting of license or certificate. Immediately upon the
55 receipt of the license or certificate issued pursuant to this article by
56 the secretary of state, the licensee named therein shall cause such
A. 9181 7
1 license to be posted and at all times displayed in a conspicuous place
2 in the principal office of such business for which it is issued, and
3 shall cause the certificate for each branch office, bureau, agency or
4 sub-agency to be posted and at all times displayed in a conspicuous
5 place in such branch office, bureau, agency or sub-agency for which it
6 is issued, so that all persons visiting such principal office, branch
7 office, bureau, agency or sub-agency may readily see the same, and if
8 such licensee does business on the internet, to provide a hyperlink
9 displayed in a conspicuous manner to a scanned copy of such license.
10 Such license or certificate shall at all reasonable times be subject to
11 inspection by the secretary of state or his or her authorized inspec-
12 tors. It shall be unlawful for any person, firm, partnership or corpo-
13 ration holding such license or certificate to post such license or
14 certificate or to permit such certificate to be posted upon premises
15 other than those described therein or to which it has been transferred
16 pursuant to the provisions of this article or unlawfully to alter,
17 deface or destroy any such license or certificate.
18 § 25.21. Change of office location. In the event of a change in the
19 location of the premises covered by license or certificate issued under
20 this article, the department of state shall be duly notified in writing
21 of such change within twenty-four hours thereafter. The secretary of
22 state shall cause to be written or stamped across the face of such
23 license or certificate a statement to the effect that the holder of such
24 license has removed on the date stated in such written notice such prin-
25 cipal office, branch office, bureau, agency or sub-agency from the place
26 originally described in such license or certificate to the place
27 described in such written notice, and such license or certificate with
28 the endorsement thereon shall be returned to the licensee named therein.
29 No tickets shall be sold at any place other than places for which a
30 license or certificate provided for by this article has been issued and
31 posted.
32 § 25.23. Posting of price lists; information to purchaser. 1. In
33 every principal office or branch office, bureau, agency or sub-agency of
34 any licensee under this article, there shall be conspicuously posted and
35 at all times displayed a price list showing the established price
36 charged by the operator of the place of entertainment for which a ticket
37 is being sold by such licensee, together with the price being charged by
38 such licensee for the resale of such ticket, so that all persons visit-
39 ing such place may readily see the same. The licensee shall also on
40 request furnish each purchaser of a ticket with a receipt showing the
41 same information. Further, if the licensee conducts business through the
42 use of the internet, the same price list, or hyperlink to the same,
43 shall be conspicuously displayed on the internet page on which tickets
44 are accessed. In addition the licensee shall publish in a conspicuous
45 place, or hyperlink to on the internet a statement clearly detailing the
46 required guarantees required by section 25.07 of this article.
47 2. (a) An online resale marketplace shall post a clear and conspicuous
48 notice on the website of such online resale marketplace that the website
49 is for the secondary sale of tickets and shall require that the user
50 confirm having read such notice before starting any transaction. No
51 operator or its agent shall transfer a prospective ticket purchaser
52 through any means to a secondary seller without providing a clear and
53 conspicuous disclosure appropriate for the selling platform that informs
54 the prospective purchaser that the ticket offered is in the secondary
55 market.
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1 (b) No operator or operator's agent or any person who is employed by
2 such operator or operator's agent shall resell or engage in the business
3 of reselling any tickets of admission or any other evidence of the right
4 of entry to a theatre, place of amusement or entertainment, or other
5 places where public exhibitions, games, contests or performances are
6 held. The provisions of this paragraph shall not apply to donations made
7 by the operator or operator's agent, when there is no compensation
8 provided, to individuals or charitable organizations where the tickets
9 are for personal use or charitable purposes.
10 § 25.24. Automated ticket purchasing software. 1. The term "automated
11 ticket purchasing software" shall mean, any machine, device, computer
12 program or computer software that navigates or runs automated tasks on
13 retail ticket purchasing websites in order to bypass security measures
14 to purchase tickets.
15 2. It shall be unlawful for any person to utilize automated ticket
16 purchasing software to purchase tickets.
17 3. Any person who knowingly utilizes automated ticket purchasing soft-
18 ware in order to bypass security measures to purchase tickets shall be
19 subject to a civil penalty in an amount of no less than five hundred
20 dollars and no more than one thousand dollars for each such violation
21 and shall forfeit all profits made from the sale of any such unlawfully
22 obtained tickets.
23 4. Any person who intentionally maintains any interest in or maintains
24 any control of the operation of automated ticket purchasing software to
25 bypass security measures to purchase tickets shall be subject to a civil
26 penalty in an amount of no less than seven hundred fifty dollars and no
27 more than one thousand five hundred dollars for each such violation and
28 shall forfeit all profits made from the sale of any such unlawfully
29 obtained tickets.
30 5. Any person who is subject to a civil penalty under this section and
31 has been assessed a penalty under this section in the previous five
32 years shall be guilty of a violation and may be fined no less than one
33 thousand dollars and no more than five thousand dollars for each such
34 violation and shall forfeit all profits from the sale of any such unlaw-
35 fully obtained tickets. In addition, a person convicted of a violation
36 under this section may be required to forfeit any and all equipment used
37 in the unlawful purchasing of tickets.
38 6. The attorney general shall have jurisdiction to enforce the
39 provisions of this section in accordance with the powers granted to him
40 or her by section sixty-three of the executive law.
41 7. In addition to the power given to the attorney general to enforce
42 the provisions of this section, any place of entertainment, as defined
43 by section 23.03 of this chapter, or any aggrieved party that has been
44 injured by wrongful conduct prescribed by this section may bring an
45 action to recover all actual damages suffered as a result of any of such
46 wrongful conduct. The court in its discretion may award damages up to
47 three times the amount of actual damages. The court may enjoin the
48 respondent from any and all activity prohibited under this section. The
49 court may also award reasonable attorney's fees and costs. Any penalty
50 or recovery authorized by this section may be recovered in a class
51 action.
52 § 25.25. Records of purchases and sales. 1. Every licensee shall at
53 all times keep full and accurate sets of records showing: (a) the prices
54 at which all tickets have been bought and sold by such licensee; and (b)
55 the names and addresses of the person, firm or corporation from whom
56 they were bought. Operators offering for initial sale tickets by means
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1 of an auction shall maintain a record of the price when known and the
2 number of tickets and types of seats offered through auction. These
3 records shall be made available upon request to the state attorney
4 general, the secretary of state, or other governmental body with the
5 express authority to enforce any section of this article; provided,
6 however, that the records required to be maintained by this section
7 shall be considered proprietary in nature and shall be governed by the
8 protections set forth in subdivision five of section eighty-nine of the
9 public officers law. These records shall be retained for a period of not
10 less than ten years.
11 2. Twice annually, on June thirtieth and December thirty-first, every
12 licensee that resells tickets or facilitates the resale or resale
13 auction of tickets between independent parties by any and all means
14 shall report to the department of state the total number of, and average
15 resale or average final resale auction price of, all tickets to each
16 ticketed event, provided, however, that repeat performances of a single
17 event, and multiple events that are part of a season-long performance
18 shall be treated as a single event for the purposes of the reporting
19 requirement of this subdivision. The information required to be reported
20 by this section shall be considered proprietary in nature and shall be
21 governed by the protections set forth in subdivision five of section
22 eighty-nine of the public officers law, and shall be used exclusively
23 for analytical purposes by the consumer protection board.
24 3. Every operator of a place of entertainment shall make public the
25 percentage of tickets to a place of entertainment that will be made
26 available to the public. At the time of the initial sale of tickets, the
27 operator shall make public the total number and locations of tickets,
28 and the percentage of tickets sold at such initial public sale.
29 § 25.27. Commissions to employees of places of entertainment. No
30 licensee, other person or entity, whether or not domiciled, licensed or
31 registered within the state, shall pay to any officer or employee of any
32 place of entertainment, any commission, gratuity or bonus in connection
33 with the sale, delivery or payment of tickets or in connection with the
34 business being done by such licensee, other person or entity, whether or
35 not domiciled, licensed or registered within the state, in tickets of
36 admission to such place.
37 § 25.29. Unlawful charges in connection with tickets. 1. No operator
38 of any place of entertainment, or his or her agent, representative,
39 employee or licensee shall, if a price be charged for admission thereto,
40 exact, demand, accept or receive, directly or indirectly, any premium or
41 price in excess of the established price plus lawful taxes whether
42 designated as price, gratuity or otherwise; provided, however: (a) noth-
43 ing in this article shall be construed to prohibit a reasonable service
44 charge by the operator or agents of the operator for special services,
45 including but not limited to, sales away from the box office, credit
46 card sales or delivery; and (b) nothing in this article shall be
47 construed to prohibit an operator or its agent from offering for initial
48 sale tickets by means of an auction.
49 2. In any prosecution under this section the attorney general shall
50 have concurrent jurisdiction with any district attorney and in any such
51 prosecution he or she or his or her deputy shall exercise all the powers
52 and perform all the duties which the district attorney would otherwise
53 be authorized to exercise or perform therein.
54 § 25.30. Operator prohibitions. 1. A ticket is a license, issued by
55 the operator of a place of entertainment, for admission to the place of
56 entertainment at the date and time specified on the ticket, subject to
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1 the terms and conditions as specified by the operator. Notwithstanding
2 any other provision of law to the contrary, it shall be prohibited for
3 any operator of a place of entertainment, or operator's agent, to:
4 (a) restrict by any means the resale of any tickets included in a
5 subscription or season ticket package as a condition of purchase, as a
6 condition to retain such tickets for the duration of the subscription or
7 season ticket package agreement, or as a condition to retain any
8 contractually agreed upon rights to purchase future subscription or
9 season ticket packages that are otherwise conferred in the subscription
10 or season ticket agreement;
11 (b) deny access to a ticket holder who possesses a resold subscription
12 or season ticket to a performance based solely on the grounds that such
13 ticket has been resold; or
14 (c) employ a form of paperless ticketing that is not readily transfer-
15 able to another customer through a transaction that is independent of
16 the operator or operator's agent, unless a purchaser is given the option
17 at the time of first public sale to purchase the same tickets at the
18 same established price in some other form, including, but not limited
19 to, paper tickets, that is readily transferable through a transaction
20 that is independent of the operator or operator's agent, provided howev-
21 er, that nothing in this paragraph shall prohibit the operator or opera-
22 tor's agent from imposing a nominal surcharge on paperless tickets.
23 2. Additionally, nothing in this article shall be construed to prohib-
24 it an operator of a place of entertainment from maintaining and enforc-
25 ing any policies regarding conduct or behavior at or in connection with
26 their venue. Further, nothing in this article shall be construed to
27 prohibit an operator of a place of entertainment of six thousand seats
28 or less, or such operator's agent, from restricting the resale of tick-
29 ets that are offered at a promotional or discounted price, for free, or
30 for persons with disabilities. An operator shall be permitted to revoke
31 or restrict season tickets for reasons relating to violations of venue
32 policies, including but not limited to, attempts by two or more persons
33 to gain admission to a single event with both the cancelled tickets
34 originally issued to a season ticket holder and those tickets re-issued
35 as part of a resale transaction, and to the extent the operator may deem
36 necessary for the protection of the safety of patrons or to address
37 fraud or misconduct.
38 3. No operator or operator's agent or any person who is employed by
39 such operator or operator's agent shall resell or engage in the business
40 of reselling any tickets of admission or any other evidence of the right
41 of entry to a theatre, place of amusement or entertainment, or other
42 places where public exhibitions, games, contests or performances are
43 held. This provision shall not apply to donations made by the operator
44 or operator's agent, when there is no compensation provided, to individ-
45 uals or charitable organizations where the tickets are for personal use
46 or charitable purposes.
47 4. The operator or the promoter shall determine whether a seat for
48 which a ticket is for sale has an obstructed view, and shall disclose
49 such obstruction. If the operator or promoter discloses that a seat for
50 which a ticket is for sale has an obstructed view, it shall be the
51 responsibility of the secondary ticket reseller to disclose such
52 obstruction upon the resale of such ticket. Such obstruction shall not
53 include an obstruction of view caused by a person, or persons, seated in
54 an adjacent seat, or seats, or occupying an aisle; or an obstruction of
55 view caused by an object or objects placed upon an adjacent seat or
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1 seats, or in an aisle; or an obstruction of view that is de minimus or
2 transitory in nature.
3 § 25.31. Suspension or revocation of licenses. 1. Powers of department
4 of state. The department of state may deny an application or may revoke
5 or suspend a license issued pursuant to this article, impose a fine not
6 exceeding one thousand dollars per violation payable to the department
7 of state, issue a reprimand and order restitution upon proof to the
8 satisfaction of the secretary of state that the holder thereof has: (a)
9 violated any provision of this article or any rule or regulation adopted
10 hereunder; (b) made a material misstatement in the application for such
11 license; (c) engaged in fraud or fraudulent practices; (d) demonstrated
12 untrustworthiness or incompetency; or (e) been convicted of a serious
13 offense or misdemeanor which, in the discretion of the secretary, bears
14 such a relationship to licensure as to constitute a bar to licensure or
15 renewal.
16 2. Determination of department of state. In the event that the depart-
17 ment of state shall revoke or suspend any such license, or impose any
18 fine or reprimand on the holder thereof, its determination shall be in
19 writing and officially signed. The original of such determination, when
20 so signed, shall be filed with the department of state and copies there-
21 of shall be served personally or by certified mail upon the licensee or
22 applicant and addressed to the principal place of business of such
23 licensee.
24 3. No license shall be suspended or revoked nor shall any fine or
25 reprimand be imposed, nor shall any application be denied, until after
26 an opportunity for a hearing had before an officer or employee of the
27 department of state designated for such purpose by the secretary of
28 state upon notice to the licensee or applicant of at least ten days. The
29 notice shall be served by certified mail and shall state the date and
30 place of hearing and set forth the ground or grounds constituting the
31 charges against the licensee or the reasons for the proposed denial of
32 the application. The licensee or applicant shall have the opportunity to
33 be heard in his or her defense either in person or by counsel and may
34 produce witnesses and testify on his or her behalf. A stenographic
35 record of the hearing shall be taken and preserved. The hearing may be
36 adjourned from time to time. The person conducting the hearing shall
37 make a written report of his or her findings and a recommendation to the
38 secretary of state for decision. The secretary of state shall review
39 such findings and the recommendation and, after due deliberation, shall
40 issue an order accepting, modifying or rejecting such recommendation and
41 dismissing the charges or suspending or revoking the license or imposing
42 a fine or reprimand upon the licensee. For the purpose of this article,
43 the secretary of state or any officer or employee of the department of
44 state designated by him or her, may administer oaths, take testimony,
45 subpoena witnesses and compel the production of books, papers, records
46 and documents deemed pertinent to the subject of investigation.
47 § 25.33. Enforcement. 1. The attorney general shall establish a toll-
48 free telephone number and accept through its website allegations from
49 the public of improper ticket acquisition, distribution or sales prac-
50 tices, including deceptive practices, corruption, fraud or irregular
51 practices with respect to ticket sales for events in New York state or
52 with respect to tickets sold to residents of the state. The attorney
53 general shall prominently display on its website information regarding
54 the hotline. The attorney general shall investigate as appropriate all
55 credible allegations received regarding improper ticket acquisition,
56 distribution or sales practices.
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1 2. Notwithstanding any right of action granted to any governmental
2 body pursuant to this chapter, any person who has been injured by reason
3 of a violation of this article may bring an action in his or her own
4 name to enjoin such unlawful act, an action to recover his or her actual
5 damages or fifty dollars, whichever is greater, or both such actions.
6 The court may award reasonable attorney's fees to a prevailing plain-
7 tiff.
8 § 25.35. Criminal penalties. 1. (a) Any person, firm, corporation or
9 other entity, whether or not domiciled, licensed or registered within
10 the state, which is convicted of violating section 25.27 or 25.29 of
11 this article shall be guilty of a class A misdemeanor punishable by a
12 fine not to exceed two thousand dollars or four times the amount of the
13 defendant's gain, to be determined pursuant to the procedures set forth
14 in section 400.30 of the criminal procedure law, whichever is greater,
15 or by a term of imprisonment not to exceed one year, or by both such
16 fine and imprisonment.
17 (b) Any person, firm, corporation or other entity, whether or not
18 domiciled, licensed, or registered within the state, which is convicted
19 of violating section 25.27 or 25.29 of this article, when the value of
20 the commission, gratuity, bonus, premium or price unlawfully paid or
21 accepted exceeds one thousand dollars for an event as defined in section
22 23.03 of this chapter, whether or not such payment is for tickets to a
23 single performance of that event, shall be guilty of a class E felony,
24 punishable by a term of imprisonment in accordance with the penal law,
25 or by a fine of ten thousand dollars or four times the amount of the
26 defendant's gain, to be determined pursuant to the procedures set forth
27 in section 400.30 of the criminal procedure law, whichever is greater,
28 or by both such fine and imprisonment.
29 2. Any person, firm or corporation which is convicted of violating
30 section 25.05 of this article shall be guilty of a misdemeanor punisha-
31 ble by a term of imprisonment not to exceed one year or by a fine not to
32 exceed one thousand five hundred dollars on the first conviction; three
33 thousand dollars on the second conviction; and four thousand dollars, on
34 each subsequent conviction or by both such fine and imprisonment.
35 3. Any person, firm or corporation which is convicted of knowingly
36 violating subdivision one of section 25.07 or section 25.13 or section
37 25.15 of this article shall be guilty of a misdemeanor punishable by a
38 term of imprisonment not to exceed one hundred eighty days or by a fine
39 not to exceed one thousand dollars on the first conviction; two thousand
40 dollars on the second conviction; and four thousand dollars on each
41 subsequent conviction or by both such fine and imprisonment.
42 4. Notwithstanding any other penalty which may be imposed for any
43 other violation of this article, any person, firm or corporation which
44 is convicted of violating section 25.11 of this article shall be guilty
45 of a violation punishable by a fine not to exceed four hundred dollars
46 on the first conviction; five hundred dollars on the second conviction;
47 and one thousand dollars on each subsequent conviction.
48 5. Any person, firm or corporation which is convicted of violating
49 section 25.05 of this article shall be guilty of a violation punishable
50 by a fine not to exceed one thousand dollars.
51 6. Any person, firm or corporation which is convicted of violating any
52 other section of this article shall be guilty of a violation punishable
53 by a fine not to exceed five hundred dollars.
54 7. Notwithstanding any other provision to the contrary, when the fines
55 included in this section are imposed on a firm, corporation or other
56 entity that is not a single person, such fines may be imposed at up to
A. 9181 13
1 two times the amount otherwise allowed, or, where applicable, three
2 times the amount of the defendant's gain.
3 § 2. This act shall take effect immediately and shall be deemed to
4 have been in full force and effect on and after May 15, 2016.
