S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4188
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 2, 2011
                                      ___________
       Introduced  by  M.  of  A.  GABRYSZAK, COOK, JACOBS, CYMBROWITZ, JAFFEE,
         DINOWITZ, REILLY, SCHIMEL -- Multi-Sponsored by -- M.  of  A.  BARRON,
         CAHILL,  COLTON, DESTITO, GIGLIO, GLICK, GOTTFRIED, MAISEL, MAYERSOHN,
         PEOPLES-STOKES, PERRY, SWEENEY, TOWNS, WEISENBERG  --  read  once  and
         referred  to the Committee on Tourism, Parks, Arts and Sports Develop-
         ment
       AN ACT to amend the arts and cultural affairs law, in  relation  to  the
         resale  of  tickets  to places of entertainment; and to repeal certain
         provisions 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.    Section  25.01 of the arts and cultural affairs law, as
    2  amended by chapter 61 of the  laws  of  2007,  is  amended  to  read  as
    3  follows:
    4    S 25.01. Legislative findings. The legislature finds and declares that
    5  transactions  involving tickets for admission to places of entertainment
    6  are a matter of public interest and subject to the  supervision  of  New
    7  York  and  the  appropriate  political subdivisions of the state for the
    8  purpose of safeguarding the public against fraud, extortion,  EXORBITANT
    9  RATES and similar abuses.
   10    The legislature further finds that many ticket resellers advertise and
   11  sell  tickets  to  places  of entertainment within the boundaries of New
   12  York state often from locations outside the state, without  adhering  to
   13  the  provisions  of  this  article. The legislature objects to any claim
   14  that businesses domiciled outside New York state are exempted from  this
   15  statute  when  selling  tickets  to  events occurring in New York state,
   16  regardless of the territories of origin of both the buyer and seller. It
   17  is the legislature's intent that all governmental  bodies  charged  with
   18  enforcement  of this article, including the attorney general of New York
   19  state have the authority to  regulate  the  activities  of  all  persons
   20  reselling tickets to venues located within this state to the full extent
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07770-01-1
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    1  of the state's powers under the federal and state constitutions and that
    2  this article be construed in light of this purpose.
    3    THE  LEGISLATURE  FURTHER  FINDS THAT CIRCUMSTANCES OCCASIONALLY ARISE
    4  THAT PRECLUDE THE USE OF TICKETS PURCHASED IN ADVANCE  AND  THAT  PEOPLE
    5  NEED TO RECOVER THEIR EXPENSES. IT IS THE INTENT OF THE LEGISLATURE THAT
    6  ENFORCEMENT  OF  THIS ARTICLE SHALL ALSO DIFFERENTIATE BETWEEN THOSE WHO
    7  WOULD LAWFULLY RECOVER THEIR EXPENSES AND THOSE WHO WOULD GAIN  SUBSTAN-
    8  TIAL PROFITS FROM UNLAWFUL RESELLING OF TICKETS.
    9    S  2.  Subdivision 3 of section 25.03 of the arts and cultural affairs
   10  law is REPEALED and a new subdivision 3 is added to read as follows:
   11    3. "MAXIMUM PREMIUM PRICE" MEANS ANY PREMIUM OR PRICE IN EXCESS OF THE
   12  ESTABLISHED PRICE PRINTED OR ENDORSED ON THE TICKET PURSUANT TO  SECTION
   13  25.07  OF THIS ARTICLE, PLUS LAWFUL TAXES, SO THAT THE ULTIMATE PRICE TO
   14  THE PURCHASE OF ANY SUCH TICKET TO A PLACE OF  ENTERTAINMENT  SHALL  NOT
   15  EXCEED  THE SUM OF THE ESTABLISHED PRICE PLUS TEN DOLLARS OR TWENTY-FIVE
   16  PERCENT OF THE ESTABLISHED  PRICE,  WHICHEVER  IS  GREATER  PLUS  LAWFUL
   17  TAXES.
   18    S  3.  The  opening paragraph of subdivision 1 of section 25.03 of the
   19  arts and cultural affairs law is designated  paragraph  (a)  and  a  new
   20  paragraph (b) is added to read as follows:
   21    (B)  NO  PRODUCER OR PROMOTER OF A FORM OF ENTERTAINMENT OR ANYONE WHO
   22  IS EMPLOYED BY SUCH PRODUCER OR PROMOTER SHALL RESELL OR ENGAGE  IN  THE
   23  BUSINESS  OF RESELLING ANY TICKETS OF ADMISSION OR ANY OTHER EVIDENCE OF
   24  THE RIGHT OF ENTRY TO A THEATRE, PLACE OF AMUSEMENT OR ENTERTAINMENT, OR
   25  OTHER PLACES WHERE PUBLIC EXHIBITIONS, GAMES, CONTESTS  OR  PERFORMANCES
   26  ARE  HELD. NOTHING IN THIS ARTICLE SHALL BAN A PRODUCER OR PROMOTER FROM
   27  RESELLING TICKETS THAT HAVE BEEN PREVIOUSLY PURCHASED BY BONA FIDE  NON-
   28  ASSOCIATED INDIVIDUALS.
   29    S 4. Section 25.07 of the arts and cultural affairs law, as amended by
   30  chapter 61 of the laws of 2007, is amended to read as follows:
   31    S 25.07. Ticket  prices. 1. Every operator of a place of entertainment
   32  shall, if a price be charged for admission thereto, print or endorse  on
   33  the  face  of  each  such  ticket  the  established price[, or the final
   34  auction price if such ticket was sold or resold by auction  through  the
   35  operator  or  its  agent].   SUCH OPERATOR SHALL LIKEWISE BE REQUIRED TO
   36  PRINT OR ENDORSE ON EACH TICKET THE MAXIMUM PREMIUM PRICE AT WHICH  SUCH
   37  TICKET  OR OTHER EVIDENCE OF THE RIGHT OF ENTRY MAY BE RESOLD OR OFFERED
   38  FOR RESALE.
   39    2. MAXIMUM PREMIUM PRICE. IT SHALL BE UNLAWFUL FOR ANY PERSON, FIRM OR
   40  CORPORATION TO RESELL OR OFFER TO RESELL ANY  TICKET  TO  ANY  PLACE  OF
   41  ENTERTAINMENT FOR MORE THAN THE MAXIMUM PREMIUM PRICE.
   42    3.  TICKETS  TO ANY PLACE OF ENTERTAINMENT MAY NOT BE RESOLD UNTIL ONE
   43  MONTH AFTER THE DATE OF THE INITIAL PURCHASE OF SUCH TICKET.
   44    4. EVERY OPERATOR OF A PLACE OF ENTERTAINMENT SHALL PRINT ON THE TICK-
   45  ET ANY OBSTRUCTION OR LIMITATION THAT MAY EXIST.
   46    5. EVERY OPERATOR OF A PLACE OF ENTERTAINMENT SHALL  MAKE  PUBLIC  THE
   47  PERCENTAGE  OF  TICKETS  TO  A  PLACE OF ENTERTAINMENT THAT WILL BE MADE
   48  AVAILABLE TO THE PUBLIC. AT THE TIME OF THE INITIAL SALE OF TICKETS, THE
   49  OPERATOR SHALL MAKE PUBLIC THE TOTAL NUMBER AND  LOCATIONS  OF  TICKETS,
   50  AND THE PERCENTAGE OF TICKETS SOLD AT SUCH INITIAL PUBLIC SALE.
   51    [2.]  6.  Notwithstanding any other provision of law, any person, firm
   52  or corporation, regardless of whether or not licensed under  this  arti-
   53  cle, that resells tickets or facilitates the resale or resale auction of
   54  tickets between independent parties by any means, must guarantee to each
   55  purchaser  of  such  resold tickets that the person, firm or corporation
   56  will provide a full refund of the amount paid by the purchaser  (includ-
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    1  ing,  but  not limited to, all fees, regardless of how characterized) if
    2  any of the following occurs: (a) the event for  which  such  ticket  has
    3  been  resold  is cancelled, provided that if the event is cancelled then
    4  actual  handling  and delivery fees need not be refunded as long as such
    5  previously disclosed guarantee specifies that  such  fees  will  not  be
    6  refunded;  (b)  the  ticket received by the purchaser does not grant the
    7  purchaser admission to the event described on the  ticket,  for  reasons
    8  that  may include, without limitation, that the ticket is counterfeit or
    9  that the ticket has been cancelled by the issuer due to non-payment,  or
   10  that  the  event  described  on  the ticket was cancelled for any reason
   11  prior to purchase of the resold ticket, unless the ticket  is  cancelled
   12  due  to an act or omission by such purchaser; or (c) the ticket fails to
   13  conform to its description as advertised unless the  buyer  has  pre-ap-
   14  proved a substitution of tickets.
   15    [3.] 7. Prior to the payment of a refund it shall be the obligation of
   16  the seller and purchaser to first make a good faith effort to remedy any
   17  disputes where the seller and purchaser have agreed to terms established
   18  by  the licensee or website manager for the disposition of disputes as a
   19  condition to facilitate the transaction.
   20    8. TWICE A YEAR ANY PERSON, FIRM OR CORPORATION  LICENSED  UNDER  THIS
   21  ARTICLE,  THAT  RESELLS  TICKETS  OR  FACILITATES  THE  RESALE OR RESALE
   22  AUCTION OF TICKETS  BETWEEN  INDEPENDENT  PARTIES  BY  ANY  MEANS  SHALL
   23  PUBLISH  AND  REPORT  THE  AVERAGE  TICKET  PRICE  FOR EACH EVENT TO THE
   24  CONSUMER PROTECTION BOARD.
   25    S 5. Section 25.35 of the arts and cultural affairs law, as  added  by
   26  chapter  704 of the laws of 1991, subdivision 1 as amended by chapter 56
   27  of the laws of 2001, subdivisions 2, 3, 4, 5 and 6 as amended by chapter
   28  374 of the laws of 2007 and subdivision 7 as added by chapter 151 of the
   29  laws of 2010, is amended to read as follows:
   30    S 25.35. Criminal penalties. 1. (a) Any person, firm,  corporation  or
   31  other  entity,  whether  or not domiciled, licensed or registered within
   32  the state, which is convicted of violating section  25.27  or  25.29  of
   33  this  article  shall  be guilty of a class A misdemeanor punishable by a
   34  fine not to exceed [one] TWO thousand dollars or [two]  FOUR  times  the
   35  amount  of the defendant's gain, to be determined pursuant to the proce-
   36  dures set forth in section 400.30 of the criminal procedure law,  which-
   37  ever is greater, or by a term of imprisonment not to exceed one year, or
   38  by both such fine and imprisonment.
   39    (b)  Any  person,  firm,  corporation  or other entity, whether or not
   40  domiciled, licensed, or registered within the state, which is  convicted
   41  of  violating  section 25.27 or 25.29 of this article, when the value of
   42  the commission, gratuity, bonus, premium or  price  unlawfully  paid  or
   43  accepted exceeds one thousand dollars for an event as defined in section
   44  23.03  of  this chapter, whether or not such payment is for tickets to a
   45  single performance of that event, shall be guilty of a class  E  felony,
   46  punishable  by  a term of imprisonment in accordance with the penal law,
   47  or by a fine of [five] TEN thousand dollars  or  [two]  FOUR  times  the
   48  amount  of the defendant's gain, to be determined pursuant to the proce-
   49  dures set forth in section 400.30 of the criminal procedure law,  which-
   50  ever is greater, or by both such fine and imprisonment.
   51    2.  Any  person,  firm  or corporation which is convicted of violating
   52  subdivision two of section 25.09 of this article shall be  guilty  of  a
   53  misdemeanor  punishable by a term of imprisonment not to exceed one year
   54  or by a fine not to exceed  [seven  hundred  fifty]  ONE  THOUSAND  FIVE
   55  HUNDRED  dollars  on  the  first  conviction; [one] THREE thousand [five
   56  hundred] dollars on the  second  conviction;  and  [two]  FOUR  thousand
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    1  dollars,  on  each subsequent conviction or by both such fine and impri-
    2  sonment.
    3    3.  Any  person,  firm  or corporation which is convicted of knowingly
    4  violating subdivision one of section 25.07 or section 25.13  or  section
    5  25.15  of  this article shall be guilty of a misdemeanor punishable by a
    6  term of imprisonment not to exceed one hundred eighty days or by a  fine
    7  not  to  exceed  [five  hundred]  ONE  THOUSAND  dollars  on  the  first
    8  conviction; [one] TWO thousand dollars on  the  second  conviction;  and
    9  [two]  FOUR  thousand  dollars  on each subsequent conviction or by both
   10  such fine and imprisonment.
   11    4. Notwithstanding any other penalty which  may  be  imposed  for  any
   12  other  violation  of this article, any person, firm or corporation which
   13  is convicted of violating section 25.11 of this article shall be  guilty
   14  of  a  violation  punishable  by a fine not to exceed [two] FOUR hundred
   15  dollars on the first conviction; [five hundred] ONE THOUSAND dollars  on
   16  the second conviction; and [one] TWO thousand dollars on each subsequent
   17  conviction.
   18    5.  Any  person,  firm  or corporation which is convicted of violating
   19  subdivision one of section 25.09 of this article shall be  guilty  of  a
   20  violation punishable by a fine not to exceed [five hundred] ONE THOUSAND
   21  dollars.
   22    6. Any person, firm or corporation which is convicted of violating any
   23  other  section of this article shall be guilty of a violation punishable
   24  by a fine not to exceed [two] FIVE hundred [fifty] dollars.
   25    7. Notwithstanding any other provision to the contrary, when the fines
   26  included in this section are imposed on a  firm,  corporation  or  other
   27  entity  that  is not a single person, such fines may be imposed at up to
   28  two times the amount otherwise  allowed,  or,  where  applicable,  three
   29  times the amount of the defendant's gain.
   30    S  6.  This act shall take effect immediately; provided, however, that
   31  the amendments to article 25 of title G of the arts and cultural affairs
   32  law made by sections one, two, three, four and five of  this  act  shall
   33  not affect the repeal and reversion of such article and shall expire and
   34  be deemed repealed therewith.