Bill Text: CA SB785 | 2023-2024 | Regular Session | Amended


Bill Title: Consumer protection: ticket sellers.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2024-08-26 - Ordered to inactive file on request of Assembly Member Aguiar-Curry. [SB785 Detail]

Download: California-2023-SB785-Amended.html

Amended  IN  Assembly  August 21, 2024
Amended  IN  Assembly  July 08, 2024
Amended  IN  Assembly  June 27, 2024
Amended  IN  Assembly  June 24, 2024
Amended  IN  Assembly  June 28, 2023
Amended  IN  Senate  May 01, 2023
Amended  IN  Senate  April 10, 2023
Amended  IN  Senate  March 22, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 785


Introduced by Senator Caballero
(Coauthors: Senators Dodd and Portantino)

February 17, 2023


An act to amend Sections 22500, 22501, 22502, 22503, 22507, and 22511 of, to amend and renumber Sections 22502.2, 22502.3, 22503.6, and 22505.5 of, to amend, renumber, and add Section 22502.1 of, to add Section 22505.2 to, and to repeal Sections 22503.5 and 22508 of, the Business and Professions Code, relating to business. Sections 22500 and 22502.1 of, and to add Sections 22502.4 and 22502.5 to, the Business and Professions Code, relating to business.


LEGISLATIVE COUNSEL'S DIGEST


SB 785, as amended, Caballero. Consumer protection: ticket sellers.
Existing law regulates ticket sellers, as defined. Existing law prohibits a ticket seller from contracting for the sale of tickets or accepting consideration for payment in full or for a deposit for the sale of tickets unless the ticket seller has possession of the ticket or meets a specified exception. Existing law imposes conditions on accepting a deposit from a prospective purchaser to obtain a ticket, as specified. Existing law generally makes a violation of these provisions a misdemeanor and imposes civil penalties for certain violations.
This bill would revise and recast those provisions, including, among other things, prohibiting a ticket seller from advertising, offering for sale, or contracting for the sale of a ticket, or accepting consideration for payment in full or for a deposit for the sale of a ticket if they do not own, possess, have constructive possession, or have the contractual right to sell the ticket. The bill would require a ticket seller or ticket resale marketplace, as defined, to comply with specified requirements in order to offer a service to obtain a ticket on behalf of a purchaser. The bill would also prohibit a ticket seller or ticket resale marketplace from selling more than one copy to a live entertainment event and would prohibit a ticket seller or ticket resale marketplace from displaying specified content on an internet website with intent to mislead if the content is substantially similar to the internet website of an event presenter, rights holder, or original seller, as specified. By imposing new requirements on ticket sales, the violation of which is a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides comprehensive regulation of ticket sellers, defined as a person who, for compensation, commission, or otherwise, sells admission tickets to sporting, musical, theater, or any other entertainment event. In this regard, existing law, among other things, prohibits specified ticket selling practices and imposes certain recordkeeping and disclosure requirements. Existing law makes a violation of those provisions a misdemeanor, and imposes civil penalties for certain violations.

This bill would revise and recast those provisions to impose similar requirements, as applicable, to original sellers, event presenters, ticket resellers, and ticket resale marketplaces, as defined, and to require original sellers, ticket resellers, and ticket resale marketplaces to be registered with the Secretary of State. By expanding the scope of certain requirements related to selling those tickets, the violation of which is a crime, the bill would impose a state-mandated local program.

The bill would require an original ticket seller or a ticket reseller, before listing, marketing, or selling a ticket, to own, possess, or have the contractual right to sell the ticket. The bill would require a ticket resale marketplace to impose a similar requirement before accepting a ticket listing, as specified. The bill would also make it unlawful for an original seller or a ticket reseller to advertise, offer for sale, or contract for the sale of a ticket if they do not own, possess, or have the contractual right to sell the ticket. The bill would also prohibit a ticket reseller, ticket resale marketplace, or any affiliate of a ticket reseller or ticket resale marketplace from doing specified acts, including employing another person to wait in line to purchase tickets for the purpose of reselling the tickets.

The bill would make certain intentional acts unlawful, including purchasing tickets in excess of posted limits for an online event ticket sale and circumventing or disabling certain sales volume limitation systems. The bill would also prohibit a ticket reseller from using certain internet website displays that are substantially similar to the internet website of an event presenter, rights holder, or original seller, or any of their authorized agents, with the intent to mislead and without their written consent.

The bill would revise and recast various disclosure requirements on the advertisement of tickets for sale, including requiring ticket resellers and ticket resale marketplaces to disclose the location within the entertainment venue that the ticket will permit the consumer to occupy. The bill would delete the requirement that a ticket seller disclose that a service charge is added to the price of the ticket.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 22500 of the Business and Professions Code is amended to read:

22500.
 (a) Original sellers, ticket resellers, and ticket resale marketplaces shall be registered with the Secretary of State and A ticket seller shall have a permanent business address from which tickets may only be sold and that address shall be included in any advertisement or solicitation, and shall be duly licensed, as may be required by any local jurisdiction.
(b) A violation of this section shall constitute a misdemeanor punishable by imprisonment in a county jail not exceeding six months, or by a fine not exceeding two thousand five hundred dollars ($2,500) or by both.
(c) For the purposes of this chapter, each ticket sold or offered for sale in violation of this chapter shall constitute a separate violation. An action for a violation of this chapter may be brought only by any of the following:
(1) The Attorney General.
(2) A district attorney.
(3) A city attorney.
(4) A county counsel of a county.
(5) A city prosecutor in a city that has a full-time city prosecutor.
(d) In an action alleging a violation of this chapter, the court shall impose a civil penalty of not more than ten thousand dollars ($10,000) for each violation of this chapter. Additionally, the court shall award a prevailing public prosecutor reasonable costs and attorney’s fees. In determining the amount of the civil penalty, the court shall consider all of the relevant circumstances presented by any of the parties to the case, including, but not limited to, all of the following:
(1) The nature and seriousness of the misconduct.
(2) The number of violations.
(3) The persistence of the misconduct.
(4) The length of time during which the misconduct occurred.
(5) The willfulness of the misconduct.
(6) The assets, liabilities, and net worth of the defendant.
(e) The remedies provided by this section are cumulative to each other and to the remedies or penalties available under all other laws of this state.

SEC. 2.

 Section 22502.1 of the Business and Professions Code is amended to read:

22502.1.
 (a) It shall be unlawful for a ticket seller to advertise, offer for sale, or contract for the sale of tickets a ticket or accept consideration for payment in full or for a depositfor deposit for the sale of tickets unless the ticket seller meets one or more of the following requirements: a ticket if they do not own, possess, have constructive possession, or have the contractual right to sell the ticket.
(b) Nothing in this section shall prohibit a ticket seller or ticket resale marketplace from offering a service to obtain a ticket on behalf of a purchaser if the ticket seller or ticket resale marketplace complies with all of the following:
(1) Does not market or list the service as a ticket.
(2) Maintains a clear, distinct, and easily discernible separation between the service and tickets through unavoidable visual demarcation that persists throughout the entire service selection and purchasing process.
(3) Clearly and conspicuously discloses before selection of the service that the service is not a ticket and that the purchase of the service does not guarantee a ticket.
(4) In the event the service is unable to obtain the specified ticket purchased through the service for the consumer, provides the purchaser, within a reasonable amount of time, either of the following:
(A) A full refund for the total cost of the service to obtain a ticket on behalf of the purchaser.
(B) Subject to availability, a replacement ticket in the same or a comparable location with the approval of the purchaser.
(5) Does not obtain more tickets in each transaction than the numerical limitations for tickets set by the event presenter or original seller for each respective event.
(c) For purposes of this section, “ticket resale marketplace” means an entity who, for compensation, commission, or otherwise, advertises, lists, markets for sale, processes payments for, facilitates the sale or exchange of, or sells an admission ticket for, a sporting, musical, theatre, or other entertainment event, including a site operated by a ticket seller that allows consumers to resell tickets.

SEC. 3.

 Section 22502.4 is added to the Business and Professions Code, to read:

22502.4.
 (a) A ticket seller or ticket resale marketplace shall not intentionally sell or resell more than one copy of the same ticket to a live entertainment event.
(b) For purposes of this section, “ticket resale marketplace” has the same definition as that term is defined in Section 22502.1.

SEC. 4.

 Section 22502.5 is added to the Business and Professions Code, to read:

22502.5.
 (a) A ticket seller or ticket resale marketplace shall not use an internet website, or cause an internet website to be used, to display, without the written consent of the event presenter, rights holder, or original seller, any combination of text, images, web designs, or internet addresses that is substantially similar to the internet website of an event presenter, rights holder, or original seller, or any of their authorized agents, with the intent to mislead.
(b) For purposes of this section, “ticket resale marketplace” has the same definition as that term is defined in Section 22502.1.

SEC. 5.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SEC. 2.Section 22501 of the Business and Professions Code is amended to read:
22501.

Original sellers, ticket resellers, and ticket resale marketplaces shall maintain records of ticket sales, deposits, and refunds for at least a period of one year after the initial sale.

SEC. 3.Section 22502 of the Business and Professions Code is amended to read:
22502.

(a)An original seller or a ticket reseller, before listing, marketing, or selling a ticket, shall own, possess, or have the contractual right to sell the ticket.

(b)An original seller or a ticket reseller shall, at the time of listing or marketing of, and before selling a ticket, disclose to the consumer, by means of a description or a map, the location within the entertainment venue that the ticket will permit the consumer to occupy, including the section, row, and seat number represented by each ticket, unless that ticket is designated as standing room only or not otherwise associated with occupying a particular location within that entertainment venue.

SEC. 4.Section 22502.1 of the Business and Professions Code is amended and renumbered to read:
22502.3.

(a)It shall be unlawful for an original seller or a ticket reseller to advertise, offer for sale, or contract for the sale of a ticket, or accept consideration for payment in full or for a deposit for the sale of a ticket if they do not own, possess, or have the contractual right to sell the ticket.

(b)A ticket reseller, a ticket resale marketplace, or any affiliate of a ticket reseller or ticket resale marketplace shall not do either of the following:

(1)Resell more than one copy of the same ticket to a live entertainment event.

(2)Employ another person directly or indirectly to wait in line to purchase tickets for the purpose of reselling the tickets.

SEC. 5.Section 22502.1 is added to the Business and Professions Code, to read:
22502.1.

(a)(1)A ticket resale marketplace, before accepting a listing to market or sell a ticket, shall require that the person listing the ticket own, possess, or have the contractual right to sell the ticket, and be able to deliver the ticket to the consumer.

(2)By allowing a ticket to be posted for resale on its internet website, a ticket resale marketplace is confirming that the ticket is being sold in compliance with all applicable state laws.

(b)A ticket resale marketplace, on its internet website in each ticket listing, shall disclose to the consumer, by means of a description or a map, the location within the entertainment venue that the ticket will permit the consumer to occupy, including the section, row, and seat number represented by each ticket, unless that ticket is designated as standing room only or not otherwise associated with occupying a particular location within an entertainment venue.

SEC. 6.Section 22502.2 of the Business and Professions Code is amended and renumbered to read:
22502.4.

It shall be unlawful for an original seller, a ticket reseller, or a ticket resale marketplace to represent that they can deliver or cause to be delivered, a ticket at a specific price or within a specific price range, and to fail to deliver within a reasonable time, or by a contracted time, the ticket, at or below the price stated or within the range of prices stated.

SEC. 7.Section 22502.3 of the Business and Professions Code is amended and renumbered to read:
22502.5.

In addition to other remedies, an original seller, a ticket reseller, or a ticket resale marketplace that violates Section 22505.1 or 22502.4 shall be civilly liable to the ticket consumer for two times the contracted price of the ticket, in addition to any sum expended by the consumer in nonrefundable expenses for attending, or attempting to attend, the event in good faith reliance on seat or space availability, and reasonable attorney’s fees and court costs.

SEC. 8.Section 22503 of the Business and Professions Code is amended to read:
22503.

(a)An “artist” means an actor rendering services on the stage, musical artist, musical organization, or other performing artist rendering professional services in theatrical and other live entertainment enterprises.

(b)A “consumer,” as used in this chapter, means a natural person who purchases tickets to an entertainment event with the purpose of attending that event.

(c)An “entertainment venue” means a publicly or privately owned place that holds live entertainment events, including, but not limited to, an arena, auditorium, concert hall, live performance venue, racetrack, stadium, theater, or other place where entertainment events are presented for a price of admission.

(d)An “event,” as used in this chapter, means a live entertainment event, including a live sporting, musical, or theatre event.

(e)An “event presenter,” as used in this chapter, means the person or organization that is responsible for a sporting, musical, theatre, or other entertainment event for which tickets are sold, including the holder of the rights to the sporting, musical, theatre, or other entertainment event, or their authorized agent.

(f)A “live entertainment event” means a scheduled live performance at a specific date, time, and location, including, but not limited to, a theatrical or operatic performance, concert, or sporting event, including, but not limited to, football, basketball, baseball, boxing, tennis, hockey, or any other sport.

(g)An “original seller,” as used in this chapter, means a person who, for compensation, commission, or otherwise, advertises, lists, markets for sale, or sells an admission ticket to a sporting, musical, theatre, or other entertainment event for original sale as instructed by an event presenter, rights holder, or venue operator, or the sale of an event ticket that was returned to the primary seller or event organizer after its initial sale and is sold by or on behalf of the event organizer.

(h)A “rights holder” means an artist, performing arts organization, theater or dance company, professional sports team, professional sports league, author, lecturer, or other persons who are the primary speakers or performers at an event for which tickets are sold.

(i)A “ticket” means a license, issued by the venue operator, for admission to the place of entertainment at the date and time specified on the ticket.

(j)A “ticket resale marketplace,” as used in this chapter, means an entity who, for compensation, commission, or otherwise, advertises, lists, markets for sale, processes payments for, facilitates the sale or exchange of, or sells an admission ticket for, a sporting, musical, theatre, or other entertainment event, including a site operated by an original seller that allows consumers to resell tickets.

(k)A “ticket reseller,” as used in this chapter, means a person who for compensation, commission, or otherwise, advertises, lists, markets for sale, or sells an admission ticket to a sporting, musical, theatre, or other entertainment event other than a ticket for original sale sold by an original seller.

(l)A “venue operator” means any person who owns, operates, manages, or controls an entertainment venue.

SEC. 9.Section 22503.5 of the Business and Professions Code is repealed.
SEC. 10.Section 22503.6 of the Business and Professions Code is amended and renumbered to read:
22503.4.

This chapter does not apply to an officially appointed agent of an air carrier, ocean carrier, or motor coach carrier that purchases or sells tickets in conjunction with a tour package accomplished through the primary event promoter, or their agent, by written agreement.

SEC. 11.Section 22505.2 is added to the Business and Professions Code, to read:
22505.2.

(a)A ticket reseller shall not use an internet website, or cause an internet website to be used, to display either of the following:

(1)A trademarked or copyrighted URL, title, designation, image, mark, or other symbol without the written consent of the trademark or copyright holder.

(2)Any combination of text, images, web designs, or internet addresses that is substantially similar to the internet website of an event presenter, rights holder, or original seller, or any of their authorized agents, with the intent to mislead and without the written consent of the event presenter, rights holder, or original seller.

(b)A ticket reseller shall not represent that the live entertainment event is sold out or use the term “sold out” when tickets are still available on the original seller’s website.

SEC. 12.Section 22505.5 of the Business and Professions Code is amended and renumbered to read:
22505.1.

Notwithstanding Section 22503.4, 22504, or 22511, it shall be unlawful for a person to intentionally use, cause to be used, or sell software or services to do, or to otherwise engage in, any of the following:

(a)Purchase tickets in excess of posted limits for an online event ticket sale.

(b)Circumvent or disable an electronic queue, waiting period, presale code, or other sales volume limitation system associated with an online event ticket sale.

(c)Circumvent or disable a security measure, access control system, or other control or measure that is used to facilitate authorized entry into an event.

(d)Purchase tickets in violation of the combined event presenter’s, rights holder’s, and venue operator’s posted terms and conditions.

(e)Utilize multiple Internet Protocol addresses, multiple consumer accounts, or multiple email addresses to purchase tickets in excess of posted ticket limits.

SEC. 13.Section 22507 of the Business and Professions Code is amended to read:
22507.

(a)The ticket price of an event that is canceled shall be fully refunded to the consumer by the person who sold or facilitated the sale of the ticket to the consumer, whether an original seller, event presenter, ticket reseller, or ticket resale marketplace, within 30 calendar days of the cancellation.

(b)The ticket price of an event that is postponed, rescheduled, or replaced with another event at the same date and time, shall be fully refunded or credited to the account of the consumer by the person who processed the sale of the ticket upon request within 30 calendar days of the refund request.

(c)For purposes of this section, a rescheduled event includes a canceled occurrence of a recurring event for which the consumer is offered the opportunity to attend another, materially identical occurrence of the same event, at a different date or time.

(d)A local jurisdiction may require an original seller, ticket reseller, or ticket resale marketplace to provide a bond of not more than fifty thousand dollars ($50,000) to provide any refunds that may be required pursuant to this section.

SEC. 14.Section 22508 of the Business and Professions Code is repealed.
SEC. 15.Section 22511 of the Business and Professions Code is amended to read:
22511.

This chapter does not apply to any event for which tickets are distributed free of charge.

SEC. 16.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

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