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.
