Bill Text: NY A01534 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to resale of tickets to places of entertainment; provides for the regulation of boxing and wrestling relating to tickets to places of entertainment.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced) 2019-01-15 - referred to tourism, parks, arts and sports development [A01534 Detail]

Download: New_York-2019-A01534-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1534
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 15, 2019
                                       ___________
        Introduced  by  M.  of  A.  ABINANTI,  PRETLOW,  JAFFEE,  GALEF, COLTON,
          GUNTHER, MOSLEY, STECK, GOTTFRIED, CAHILL -- Multi-Sponsored by --  M.
          of  A. COOK, SIMON -- read once and referred to the Committee on Tour-
          ism, 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 Article 25 of the arts and cultural affairs law is REPEALED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.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04994-01-9

        A. 1534                             2
     1          25.33. Enforcement.
     2          25.35. Criminal penalties.
     3    § 25.01. Legislative findings. The legislature finds and declares that
     4  transactions  involving tickets for admission to places of entertainment
     5  are a matter of public interest and subject to the  supervision  of  New
     6  York  and  the  appropriate  political subdivisions of the state for the
     7  purpose of safeguarding the public against fraud, extortion, and similar
     8  abuses.
     9    The legislature further finds that many ticket resellers advertise and
    10  sell tickets to places of entertainment within  the  boundaries  of  New
    11  York  state  often from locations outside the state, without adhering to
    12  the provisions of this article. The legislature  objects  to  any  claim
    13  that  businesses domiciled outside New York state are exempted from this
    14  statute when selling tickets to events  occurring  in  New  York  state,
    15  regardless of the territories of origin of both the buyer and seller. It
    16  is  the  legislature's  intent that all governmental bodies charged with
    17  enforcement of this article, including the attorney general of New  York
    18  state  have  the  authority  to  regulate  the activities of all persons
    19  reselling tickets to venues located within this state to the full extent
    20  of the state's powers under the federal and state constitutions and that
    21  this article be construed in light of this purpose.
    22    § 25.03. Definitions. As used in this article the term:
    23    1. "Entertainment" means all forms of entertainment including, but not
    24  limited  to,  theatrical  or  operatic  performances,  concerts,  motion
    25  pictures,  all  forms  of entertainment at fair grounds, amusement parks
    26  and all types of athletic competitions including  football,  basketball,
    27  baseball,  boxing,  tennis,  hockey,  and any other sport, and all other
    28  forms of diversion, recreation or show.
    29    2. "Established price" means the price fixed at the time  of  sale  by
    30  the  operator of any place of entertainment for admission thereto, which
    31  must be printed or endorsed on each ticket of admission.
    32    3. "Maximum premium price" means any premium or price in excess of the
    33  established price printed or endorsed on the ticket pursuant to  section
    34  25.07  of this article, plus lawful taxes, so that the ultimate price of
    35  the purchase of any such ticket to a place of  entertainment  shall  not
    36  exceed  the  sum  of  the  established  price plus twenty percent of the
    37  established price.
    38    4. "Not-for-profit organization" means a domestic corporation incorpo-
    39  rated pursuant to or otherwise subject to the not-for-profit corporation
    40  law, a charitable organization registered with the department of law,  a
    41  religious  corporation  as  defined  in section sixty-six of the general
    42  construction law, a trustee as defined in section 8-1.4 of the  estates,
    43  powers  and trusts law, an institution or corporation formed pursuant to
    44  the education law, a special act corporation created pursuant to chapter
    45  four hundred sixty-eight of the laws of eighteen hundred ninety-nine, as
    46  amended, a special  act  corporation  formed  pursuant  to  chapter  two
    47  hundred fifty-six of the laws of nineteen hundred seventeen, as amended,
    48  a corporation authorized pursuant to an act of congress approved January
    49  fifth,  nineteen hundred five, (33 stat. 599), as amended, a corporation
    50  established by merger of charitable organizations pursuant to  an  order
    51  of  the supreme court, New York county dated July twenty-first, nineteen
    52  hundred eighty-six and filed in the department of state on July  twenty-
    53  ninth,  nineteen  hundred eighty-six, or a corporation having tax exempt
    54  status under section 501 (c) (3) of the United States  Internal  Revenue
    55  Code,  and shall further be deemed to mean and include any federation of
    56  charitable organizations.

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     1    5. "Operator" means any person who owns, operates, or controls a place
     2  of entertainment or who promotes or produces an entertainment.
     3    6.  "Place of entertainment" means any privately or publicly owned and
     4  operated entertainment facility such as a theatre, stadium, arena, race-
     5  track, museum,  amusement  park,  or  other  place  where  performances,
     6  concerts,  exhibits,  athletic  games  or contests are held for which an
     7  entry fee is charged.
     8    7. "Physical structure" means the place of entertainment,  or  in  the
     9  case where a structure either partially or wholly surrounds the place of
    10  entertainment, such surrounding structure.
    11    8.  "Resale"  means  any  sale  of a ticket for entrance to a place of
    12  entertainment located within the boundaries of the  state  of  New  York
    13  other  than  a  sale  by  the  operator  or  the operator's agent who is
    14  expressly authorized to make first sales of such tickets.  Resale  shall
    15  include  sales  by  any means, including in person, or by means of tele-
    16  phone, mail, delivery service, facsimile, internet, email or other elec-
    17  tronic means, where the venue for which the ticket grants  admission  is
    18  located  in  New  York  state.  Except as provided in sections 25.11 and
    19  25.27 of this article, the term "resale" shall not apply to any  person,
    20  firm or corporation which purchases any tickets solely for their own use
    21  or  the  use  of their invitees, employees and agents or which purchases
    22  tickets on behalf of others and resells such tickets to  such  invitees,
    23  employees  and  agents  or others at or less than the established price.
    24  Similarly, the term "resale"  shall  not  apply  to  any  not-for-profit
    25  organization,  or  person acting on behalf of such not-for-profit organ-
    26  ization, as long as any profit realized from ticket reselling is  wholly
    27  dedicated to the purposes of such not-for-profit organization.
    28    9.  "Ticket"  means any evidence of the right of entry to any place of
    29  entertainment.
    30    10. "Ticket office" means a building or other structure located  other
    31  than  at the place of entertainment, at which the operator or the opera-
    32  tor's agent offers tickets for first sale to the public.
    33    § 25.05. Ticket speculators. Any person who:
    34    1. Conducts on or in any street in a city or in the county  of  Nassau
    35  the  business of selling or offering for sale any ticket of admission or
    36  any other evidence of the right of entry to any performance  or  exhibi-
    37  tion  in  or about the premises of any theatre or concert hall, place of
    38  public amusement, circus or common show; or
    39    2. Solicits on or in any street in a city or in the county  of  Nassau
    40  by  words,  signs,  circulars  or other means any person to purchase any
    41  such ticket or other evidence of the right of entry; or
    42    3. In or from any building, store, shop, booth, yard, garden or in  or
    43  from  any  opening,  window,  door,  hallway, corridor or in or from any
    44  place of ingress or egress to or from any building, place  of  business,
    45  store,  shop, booth, yard or garden in a city or in the county of Nassau
    46  indicates, holds out or offers for sale to any person or persons  on  or
    47  in the street by word of mouth, crying, calling, shouting or other means
    48  that  such  ticket  or  other  evidence  of  the  right  of entry may be
    49  purchased in such building, store, shop,  booth,  yard,  garden  or  any
    50  other place; or
    51    4.  In  or from any such place or places in a city or in the county of
    52  Nassau solicits by word of mouth, crying,  calling,  shouting  or  other
    53  means  any  person  on  or  in the street to purchase any such ticket or
    54  other evidence of the right of entry, is guilty of a misdemeanor.
    55     § 25.07. Ticket prices. 1. Every operator of a place of entertainment
    56  shall, if a price be charged for admission thereto, print or endorse  on

        A. 1534                             4
     1  the face of each such ticket the established price.  Such operator shall
     2  likewise  be  required  to  print  or endorse on each ticket the maximum
     3  premium price at which such ticket or other evidence  of  the  right  of
     4  entry may be resold or offered for resale.  It shall be unlawful for any
     5  person,  firm  or corporation to resell or offer to resell any ticket to
     6  any place of entertainment for more than the maximum premium price.
     7    2. Notwithstanding any other provision of law,  any  person,  firm  or
     8  corporation,  regardless  of whether or not licensed under this article,
     9  that resells tickets or facilitates the  resale  or  resale  auction  of
    10  tickets between independent parties by any means, must guarantee to each
    11  purchaser  of  such  resold tickets that the person, firm or corporation
    12  will provide a full refund of the amount paid by the purchaser  (includ-
    13  ing,  but  not limited to, all fees, regardless of how characterized) if
    14  any of the following occurs: (a) the event for  which  such  ticket  has
    15  been  resold  is cancelled, provided that if the event is cancelled then
    16  actual handling and delivery fees need not be refunded as long  as  such
    17  previously  disclosed  guarantee  specifies  that  such fees will not be
    18  refunded; (b) the ticket received by the purchaser does  not  grant  the
    19  purchaser  admission  to  the event described on the ticket, for reasons
    20  that may include, without limitation, that the ticket is counterfeit  or
    21  that  the ticket has been cancelled by the issuer due to non-payment, or
    22  that the event described on the ticket  was  cancelled  for  any  reason
    23  prior  to  purchase of the resold ticket, unless the ticket is cancelled
    24  due to an act or omission by such purchaser; or (c) the ticket fails  to
    25  conform  to  its  description as advertised unless the buyer has pre-ap-
    26  proved a substitution of tickets.
    27    3. Prior to the payment of a refund it shall be the obligation of  the
    28  seller  and  purchaser  to  first make a good faith effort to remedy any
    29  disputes where the seller and purchaser have agreed to terms established
    30  by the licensee or website manager for the disposition of disputes as  a
    31  condition to facilitate the transaction.
    32    § 25.09. Additional printing on tickets.  Every operator of a place of
    33  entertainment  having  a  permanent  seating  capacity in excess of five
    34  thousand persons shall, if a price be  charged  for  admission  thereto,
    35  print  or  endorse  in  a clear and legible manner on each ticket, "This
    36  ticket may not be resold within one thousand five hundred feet from  the
    37  physical structure of this place of entertainment under penalty of law".
    38    § 25.11. Resales  of  tickets within buffer zone.  1. No person, firm,
    39  corporation or not-for-profit organization, whether  or  not  domiciled,
    40  licensed  or  registered within the state, shall resell, offer to resell
    41  or solicit the resale of any ticket to any place of entertainment having
    42  a permanent seating capacity in excess of five thousand  persons  within
    43  one thousand five hundred feet from the physical structure of such place
    44  of entertainment, or a ticket office.
    45    2. No person, firm, corporation or not-for-profit organization, wheth-
    46  er  or  not  domiciled,  licensed  or registered within the state, shall
    47  resell, offer to resell or solicit the resale of any ticket to any place
    48  of entertainment having a permanent seating capacity of five thousand or
    49  fewer persons within five hundred feet from the  physical  structure  or
    50  ticket  office  of  such  place  of entertainment, provided however that
    51  current licensees and those seeking a license  under  this  article  are
    52  exempt  from such buffer zone when operating out of a permanent physical
    53  structure.
    54    3. Notwithstanding subdivisions one and two of this section, an opera-
    55  tor may designate an area within the property  line  of  such  place  of
    56  entertainment  for  the  lawful resale of tickets only to events at such

        A. 1534                             5
     1  place of entertainment by any person, firm, corporation or  not-for-pro-
     2  fit organization, whether or not domiciled, licensed or registered with-
     3  in the state.
     4    4.  For  purposes of this section, "ticket office" means a building or
     5  other structure located other than at the  place  of  entertainment,  at
     6  which the operator or the operator's agent offers tickets for first sale
     7  to the public.
     8    § 25.13. Licensing  of  ticket resellers. 1. No person, firm or corpo-
     9  ration shall resell or engage in the business of reselling  any  tickets
    10  to  a place of entertainment or operate an internet website or any other
    11  electronic service that provides a mechanism for two or more parties  to
    12  participate  in  a  resale transaction or that facilitates resale trans-
    13  actions by the means of an auction, or  own,  conduct  or  maintain  any
    14  office,  branch  office,  bureau, agency or sub-agency for such business
    15  without having first procured a license or certificate for each location
    16  at which business will be conducted from the  secretary  of  state.  Any
    17  operator or manager of a website that serves as a platform to facilitate
    18  resale,  or  resale  by  way  of  a  competitive bidding process, solely
    19  between third parties and does not in any other manner engage in resales
    20  of tickets to places of entertainment shall be exempt from the licensing
    21  requirements of this section. The department of state  shall  issue  and
    22  deliver to such applicant a certificate or license to conduct such busi-
    23  ness  and  to  own,  conduct  or  maintain a bureau, agency, sub-agency,
    24  office or branch office for the conduct of such business on the premises
    25  stated in such application upon the payment  by  or  on  behalf  of  the
    26  applicant  of  a  fee of five thousand dollars and shall be renewed upon
    27  the payment of a like fee annually. Such license  or  certificate  shall
    28  not be transferred or assigned, except by permission of the secretary of
    29  state. Such license or certificate shall run to the first day of January
    30  next ensuing the date thereof, unless sooner revoked by the secretary of
    31  state.  Such  license  or  certificate  shall  be granted upon a written
    32  application setting forth such information as the secretary of state may
    33  require in order  to  enable  him  or  her  to  carry  into  effect  the
    34  provisions  of  this article and shall be accompanied by proof satisfac-
    35  tory to the secretary of state of the moral character of the applicant.
    36    2. No operator's agent shall sell or convey tickets to  any  secondary
    37  ticket reseller owned or controlled by the operator's agent.
    38    2-a.  No ticket seller shall resell any ticket during the first forty-
    39  eight hours after such ticket  is  first  available  for  primary  sale;
    40  provided  that  such  restriction shall not apply with respect to season
    41  tickets or bundled series tickets. No ticket seller shall sell or resell
    42  any ticket that such seller does not own at the time  of  the  offer  or
    43  sale.    The  provisions  of  this subdivision shall not apply to venues
    44  containing less than six thousand seats.
    45    3. The operator or the promoter shall determine  whether  a  seat  for
    46  which  a  ticket  is for sale has an obstructed view, and shall disclose
    47  such obstruction. Every sale or resale of such ticket  shall  include  a
    48  disclosure of such obstructed view.
    49    4. If any licensee under this section demonstrates that their business
    50  provides  a  service  to facilitate ticket transactions without charging
    51  any fees, surcharges or service charges above the established price,  on
    52  every  transaction, except a reasonable and actual charge for the deliv-
    53  ery of tickets, then the fees for licensing under this section shall  be
    54  waived.
    55    § 25.15. Bond.  The secretary of state shall require the applicant for
    56  a license to file with the application therefor a bond in  due  form  to

        A. 1534                             6
     1  the people of New York in the penal sum of twenty-five thousand dollars,
     2  with  two or more sufficient sureties or a duly authorized surety compa-
     3  ny, which bond shall be approved by the secretary of  state.  Each  such
     4  bond  shall  be  conditioned  that the obligor will not be guilty of any
     5  fraud or extortion, will not violate directly or indirectly any  of  the
     6  provisions  of  this  article or any of the provisions of the license or
     7  certificate  provided  for  in  this  article,  will  comply  with   the
     8  provisions  of  this  article and will pay all damages occasioned to any
     9  person by reason of any misstatement, misrepresentation, fraud or deceit
    10  or any unlawful act or omission of such obligor, his or  her  agents  or
    11  employees,  while  acting  within  the  scope of their employment, made,
    12  committed or omitted in connection with the provisions of  this  article
    13  in  the  business  conducted  under  such license or caused by any other
    14  violation of this article in carrying on the  business  for  which  such
    15  license  is  granted.  One or more recoveries or payments upon such bond
    16  shall not vitiate the same but such bond shall remain in full force  and
    17  effect,  provided, however, that the aggregate amount of all such recov-
    18  eries or payments shall not exceed the penal  sum  thereof.  Before  the
    19  secretary  shall draw upon such bond, the secretary shall issue a deter-
    20  mination in writing which shall include the basis of such action.    The
    21  secretary shall notify in writing the licensee of any such determination
    22  and  shall  afford  the licensee an opportunity to respond within twenty
    23  days of the receipt of such determination. In no event may the  bond  be
    24  drawn upon in less than twenty-five days after the service of a determi-
    25  nation  to  the  licensee. Such written notice may be served by delivery
    26  thereof personally to the licensee, or by certified  mail  to  the  last
    27  known business address of such licensee. Only upon such determination of
    28  the  secretary  shall  moneys  be  withdrawn  from  the bond.   Upon the
    29  commencement of any action or actions against the surety upon  any  such
    30  bond  for a sum or sums aggregating or exceeding the amount of such bond
    31  the secretary of state shall require a new and additional bond  in  like
    32  amount  as the original one, which shall be filed with the department of
    33  state within thirty days after the demand therefor.    Failure  to  file
    34  such  bond  within such period shall constitute cause for the revocation
    35  of the license pursuant to section 25.31  of  this  article  theretofore
    36  issued  to  the licensee upon whom such demand shall have been made. Any
    37  suit or action against the surety on any bond required by the provisions
    38  of this section shall be commenced within one year after  the  cause  of
    39  action shall have accrued.
    40    § 25.17. Supervision and regulation. The secretary of state shall have
    41  power,  upon complaint of any person or on his or her own initiative, to
    42  investigate the business, business practices and business methods of any
    43  such licensee which relates to this state's or any other state's  ticket
    44  resale  law,  or  in  regards to ticket resale practices generally. Each
    45  such licensee shall be obliged, on the reasonable request of the  secre-
    46  tary  of state, to supply such information as may be required concerning
    47  his or her business, business practices  or  business  methods  provided
    48  that  the  information requested is related to the complaint which forms
    49  the basis of such investigation. Each operator of any  place  of  enter-
    50  tainment shall also be obliged, on request of the secretary of state, to
    51  supply  such  information  as  may  be required concerning the business,
    52  business practices or business methods of any licensee provided that the
    53  information requested is related to the complaint which forms the  basis
    54  of  such  investigation.  The secretary of state shall have the power to
    55  promulgate such rules and regulations as may be deemed necessary for the
    56  enforcement of this article.

        A. 1534                             7
     1    § 25.19. Posting of  license  or  certificate.  Immediately  upon  the
     2  receipt of the license or certificate issued pursuant to this article by
     3  the  secretary  of  state,  the  licensee named therein shall cause such
     4  license to be posted and at all times displayed in a  conspicuous  place
     5  in  the  principal  office  of such business for which it is issued, and
     6  shall cause the certificate for each branch office,  bureau,  agency  or
     7  sub-agency  to  be  posted  and  at all times displayed in a conspicuous
     8  place in such branch office, bureau, agency or sub-agency for  which  it
     9  is  issued,  so  that all persons visiting such principal office, branch
    10  office, bureau, agency or sub-agency may readily see the  same,  and  if
    11  such  licensee  does  business  on  the internet, to provide a hyperlink
    12  displayed in a conspicuous manner to a scanned  copy  of  such  license.
    13  Such  license or certificate shall at all reasonable times be subject to
    14  inspection by the secretary of state or his or  her  authorized  inspec-
    15  tors.  It  shall be unlawful for any person, firm, partnership or corpo-
    16  ration holding such license or  certificate  to  post  such  license  or
    17  certificate  or  to  permit  such certificate to be posted upon premises
    18  other than those described therein or to which it has  been  transferred
    19  pursuant  to  the  provisions  of  this  article or unlawfully to alter,
    20  deface or destroy any such license or certificate.
    21    § 25.21. Change of office location. In the event of a  change  in  the
    22  location  of the premises covered by license or certificate issued under
    23  this article, the department of state shall be duly notified in  writing
    24  of  such  change  within  twenty-four hours thereafter. The secretary of
    25  state shall cause to be written or  stamped  across  the  face  of  such
    26  license or certificate a statement to the effect that the holder of such
    27  license has removed on the date stated in such written notice such prin-
    28  cipal office, branch office, bureau, agency or sub-agency from the place
    29  originally  described  in  such  license  or  certificate  to  the place
    30  described in such written notice, and such license or  certificate  with
    31  the endorsement thereon shall be returned to the licensee named therein.
    32  No  tickets  shall  be  sold  at any place other than places for which a
    33  license or certificate provided for by this article has been issued  and
    34  posted.
    35    §  25.23.  Posting  of  price lists; information to purchaser.   1. In
    36  every principal office or branch office, bureau, agency or sub-agency of
    37  any licensee under this article, there shall be conspicuously posted and
    38  at all times displayed  a  price  list  showing  the  established  price
    39  charged by the operator of the place of entertainment for which a ticket
    40  is being sold by such licensee, together with the price being charged by
    41  such  licensee for the resale of such ticket, so that all persons visit-
    42  ing such place may readily see the same.  The  licensee  shall  also  on
    43  request  furnish  each  purchaser of a ticket with a receipt showing the
    44  same information. Further, if the licensee conducts business through the
    45  use of the internet, the same price list,  or  hyperlink  to  the  same,
    46  shall  be  conspicuously displayed on the internet page on which tickets
    47  are accessed. In addition the licensee shall publish  in  a  conspicuous
    48  place, or hyperlink to on the internet a statement clearly detailing the
    49  required guarantees required by section 25.07 of this article.
    50    2. (a) An online resale marketplace shall post a clear and conspicuous
    51  notice on the website of such online resale marketplace that the website
    52  is  for  the  secondary  sale of tickets and shall require that the user
    53  confirm having read such notice  before  starting  any  transaction.  No
    54  operator  or  its  agent  shall  transfer a prospective ticket purchaser
    55  through any means to a secondary seller without providing  a  clear  and
    56  conspicuous disclosure appropriate for the selling platform that informs

        A. 1534                             8
     1  the  prospective  purchaser  that the ticket offered is in the secondary
     2  market.
     3    (b)  No  operator or operator's agent or any person who is employed by
     4  such operator or operator's agent shall resell or engage in the business
     5  of reselling any tickets of admission or any other evidence of the right
     6  of entry to a theatre, place of amusement  or  entertainment,  or  other
     7  places  where  public  exhibitions,  games, contests or performances are
     8  held. The provisions of this paragraph shall not apply to donations made
     9  by the operator or operator's  agent,  when  there  is  no  compensation
    10  provided,  to  individuals or charitable organizations where the tickets
    11  are for personal use or charitable purposes.
    12    § 25.24. Automated ticket purchasing software. 1. The term  "automated
    13  ticket  purchasing  software"  shall mean, any machine, device, computer
    14  program or computer software that navigates or runs automated  tasks  on
    15  retail  ticket  purchasing websites in order to bypass security measures
    16  to purchase tickets.
    17    2. It shall be unlawful for any person  to  utilize  automated  ticket
    18  purchasing software to purchase tickets.
    19    3. Any person who knowingly utilizes automated ticket purchasing soft-
    20  ware  in  order to bypass security measures to purchase tickets shall be
    21  subject to a civil penalty in an amount of no  less  than  five  hundred
    22  dollars  and  no  more than one thousand dollars for each such violation
    23  and shall forfeit all profits made from the sale of any such  unlawfully
    24  obtained tickets.
    25    4. Any person who intentionally maintains any interest in or maintains
    26  any  control of the operation of automated ticket purchasing software to
    27  bypass security measures to purchase tickets shall be subject to a civil
    28  penalty in an amount of no less than seven hundred fifty dollars and  no
    29  more  than one thousand five hundred dollars for each such violation and
    30  shall forfeit all profits made from the  sale  of  any  such  unlawfully
    31  obtained tickets.
    32    5. Any person who is subject to a civil penalty under this section and
    33  has  been  assessed  a  penalty  under this section in the previous five
    34  years shall be guilty of a violation and may be fined no less  than  one
    35  thousand  dollars  and  no more than five thousand dollars for each such
    36  violation and shall forfeit all profits from the sale of any such unlaw-
    37  fully obtained tickets. In addition, a person convicted of  a  violation
    38  under this section may be required to forfeit any and all equipment used
    39  in the unlawful purchasing of tickets.
    40    6.  The  attorney  general  shall  have  jurisdiction  to  enforce the
    41  provisions of this section in accordance with the powers granted to  him
    42  or her by section sixty-three of the executive law.
    43    7.  In  addition to the power given to the attorney general to enforce
    44  the provisions of this section, any place of entertainment,  as  defined
    45  by  section  23.03 of this chapter, or any aggrieved party that has been
    46  injured by wrongful conduct prescribed by  this  section  may  bring  an
    47  action to recover all actual damages suffered as a result of any of such
    48  wrongful  conduct.  The  court in its discretion may award damages up to
    49  three times the amount of actual  damages.  The  court  may  enjoin  the
    50  respondent  from any and all activity prohibited under this section. The
    51  court may also award reasonable attorney's fees and costs.  Any  penalty
    52  or  recovery  authorized  by  this  section  may be recovered in a class
    53  action.
    54    § 25.25. Records of purchases and sales. 1. Every  licensee  shall  at
    55  all times keep full and accurate sets of records showing: (a) the prices
    56  at which all tickets have been bought and sold by such licensee; and (b)

        A. 1534                             9
     1  the  names  and  addresses  of the person, firm or corporation from whom
     2  they were bought. Operators offering for initial sale tickets  by  means
     3  of  an  auction  shall maintain a record of the price when known and the
     4  number  of  tickets  and  types  of seats offered through auction. These
     5  records shall be made available  upon  request  to  the  state  attorney
     6  general,  the  secretary  of  state, or other governmental body with the
     7  express authority to enforce any  section  of  this  article;  provided,
     8  however,  that  the  records  required  to be maintained by this section
     9  shall be considered proprietary in nature and shall be governed  by  the
    10  protections  set forth in subdivision five of section eighty-nine of the
    11  public officers law. These records shall be retained for a period of not
    12  less than ten years.
    13    2. Twice annually, on June thirtieth and December thirty-first,  every
    14  licensee  that  resells  tickets  or  facilitates  the  resale or resale
    15  auction of tickets between independent parties  by  any  and  all  means
    16  shall report to the department of state the total number of, and average
    17  resale  or  average  final  resale auction price of, all tickets to each
    18  ticketed event, provided, however, that repeat performances of a  single
    19  event,  and  multiple  events that are part of a season-long performance
    20  shall be treated as a single event for the  purposes  of  the  reporting
    21  requirement of this subdivision. The information required to be reported
    22  by  this  section shall be considered proprietary in nature and shall be
    23  governed by the protections set forth in  subdivision  five  of  section
    24  eighty-nine  of  the  public officers law, and shall be used exclusively
    25  for analytical purposes by the consumer protection board.
    26    3. Every operator of a place of entertainment shall  make  public  the
    27  percentage  of  tickets  to  a  place of entertainment that will be made
    28  available to the public. At the time of the initial sale of tickets, the
    29  operator shall make public the total number and  locations  of  tickets,
    30  and the percentage of tickets sold at such initial public sale.
    31    § 25.27. Commissions  to  employees  of  places  of  entertainment. No
    32  licensee, other person or entity, whether or not domiciled, licensed  or
    33  registered within the state, shall pay to any officer or employee of any
    34  place  of entertainment, any commission, gratuity or bonus in connection
    35  with the sale, delivery or payment of tickets or in connection with  the
    36  business being done by such licensee, other person or entity, whether or
    37  not  domiciled,  licensed  or registered within the state, in tickets of
    38  admission to such place.
    39     § 25.29. Unlawful charges in connection with tickets. 1. No  operator
    40  of  any  place  of  entertainment,  or his or her agent, representative,
    41  employee or licensee shall, if a price be charged for admission thereto,
    42  exact, demand, accept or receive, directly or indirectly, any premium or
    43  price in excess of the  established  price  plus  lawful  taxes  whether
    44  designated as price, gratuity or otherwise; provided, however: (a) noth-
    45  ing  in this article shall be construed to prohibit a reasonable service
    46  charge by the operator or agents of the operator for  special  services,
    47  including  but  not  limited  to, sales away from the box office, credit
    48  card sales or delivery;  and  (b)  nothing  in  this  article  shall  be
    49  construed to prohibit an operator or its agent from offering for initial
    50  sale tickets by means of an auction.
    51    2.  In  any  prosecution under this section the attorney general shall
    52  have concurrent jurisdiction with any district attorney and in any  such
    53  prosecution he or she or his or her deputy shall exercise all the powers
    54  and  perform  all the duties which the district attorney would otherwise
    55  be authorized to exercise or perform therein.

        A. 1534                            10
     1    § 25.30.  Operator prohibitions. 1. A ticket is a license,  issued  by
     2  the  operator of a place of entertainment, for admission to the place of
     3  entertainment at the date and time specified on the ticket,  subject  to
     4  the  terms  and conditions as specified by the operator. Notwithstanding
     5  any  other  provision of law to the contrary, it shall be prohibited for
     6  any operator of a place of entertainment, or operator's agent, to:
     7    (a) restrict by any means the resale of  any  tickets  included  in  a
     8  subscription  or  season ticket package as a condition of purchase, as a
     9  condition to retain such tickets for the duration of the subscription or
    10  season ticket package  agreement,  or  as  a  condition  to  retain  any
    11  contractually  agreed  upon  rights  to  purchase future subscription or
    12  season ticket packages that are otherwise conferred in the  subscription
    13  or season ticket agreement;
    14    (b) deny access to a ticket holder who possesses a resold subscription
    15  or  season ticket to a performance based solely on the grounds that such
    16  ticket has been resold; or
    17    (c) employ a form of paperless ticketing that is not readily transfer-
    18  able to another customer through a transaction that  is  independent  of
    19  the operator or operator's agent, unless a purchaser is given the option
    20  at  the  time  of  first public sale to purchase the same tickets at the
    21  same established price in some other form, including,  but  not  limited
    22  to,  paper  tickets,  that is readily transferable through a transaction
    23  that is independent of the operator or operator's agent, provided howev-
    24  er, that nothing in this paragraph shall prohibit the operator or opera-
    25  tor's agent from imposing a nominal surcharge on paperless tickets.
    26    2. Additionally, nothing in this article shall be construed to prohib-
    27  it an operator of a place of entertainment from maintaining and  enforc-
    28  ing  any policies regarding conduct or behavior at or in connection with
    29  their venue.  Further, nothing in this article  shall  be  construed  to
    30  prohibit  an  operator of a place of entertainment of six thousand seats
    31  or less, or such operator's agent, from restricting the resale of  tick-
    32  ets  that are offered at a promotional or discounted price, for free, or
    33  for persons with disabilities.  An operator shall be permitted to revoke
    34  or restrict season tickets for reasons relating to violations  of  venue
    35  policies,  including but not limited to, attempts by two or more persons
    36  to gain admission to a single event  with  both  the  cancelled  tickets
    37  originally  issued to a season ticket holder and those tickets re-issued
    38  as part of a resale transaction, and to the extent the operator may deem
    39  necessary for the protection of the safety  of  patrons  or  to  address
    40  fraud or misconduct.
    41    3.  No  operator  or operator's agent or any person who is employed by
    42  such operator or operator's agent shall resell or engage in the business
    43  of reselling any tickets of admission or any other evidence of the right
    44  of entry to a theatre, place of amusement  or  entertainment,  or  other
    45  places  where  public  exhibitions,  games, contests or performances are
    46  held. This provision shall not apply to donations made by  the  operator
    47  or operator's agent, when there is no compensation provided, to individ-
    48  uals  or charitable organizations where the tickets are for personal use
    49  or charitable purposes.
    50    4. The operator or the promoter shall determine  whether  a  seat  for
    51  which  a  ticket  is for sale has an obstructed view, and shall disclose
    52  such obstruction. If the operator or promoter discloses that a seat  for
    53  which  a  ticket  is  for  sale  has an obstructed view, it shall be the
    54  responsibility  of  the  secondary  ticket  reseller  to  disclose  such
    55  obstruction  upon  the resale of such ticket. Such obstruction shall not
    56  include an obstruction of view caused by a person, or persons, seated in

        A. 1534                            11
     1  an adjacent seat, or seats, or occupying an aisle; or an obstruction  of
     2  view  caused  by  an  object  or objects placed upon an adjacent seat or
     3  seats, or in an aisle; or an obstruction of view that is de  minimus  or
     4  transitory in nature.
     5    § 25.31. Suspension or revocation of licenses. 1. Powers of department
     6  of  state. The department of state may deny an application or may revoke
     7  or suspend a license issued pursuant to this article, impose a fine  not
     8  exceeding  one  thousand dollars per violation payable to the department
     9  of state, issue a reprimand and order  restitution  upon  proof  to  the
    10  satisfaction  of the secretary of state that the holder thereof has: (a)
    11  violated any provision of this article or any rule or regulation adopted
    12  hereunder; (b) made a material misstatement in the application for  such
    13  license;  (c) engaged in fraud or fraudulent practices; (d) demonstrated
    14  untrustworthiness or incompetency; or (e) been convicted  of  a  serious
    15  offense  or misdemeanor which, in the discretion of the secretary, bears
    16  such a relationship to licensure as to constitute a bar to licensure  or
    17  renewal.
    18    2. Determination of department of state. In the event that the depart-
    19  ment  of  state  shall revoke or suspend any such license, or impose any
    20  fine or reprimand on the holder thereof, its determination shall  be  in
    21  writing  and officially signed. The original of such determination, when
    22  so signed, shall be filed with the department of state and copies there-
    23  of shall be served personally or by certified mail upon the licensee  or
    24  applicant  and  addressed  to  the  principal  place of business of such
    25  licensee.
    26    3. No license shall be suspended or revoked  nor  shall  any  fine  or
    27  reprimand  be  imposed, nor shall any application be denied, until after
    28  an opportunity for a hearing had before an officer or  employee  of  the
    29  department  of  state  designated  for  such purpose by the secretary of
    30  state upon notice to the licensee or applicant of at least ten days. The
    31  notice shall be served by certified mail and shall state  the  date  and
    32  place  of  hearing  and set forth the ground or grounds constituting the
    33  charges against the licensee or the reasons for the proposed  denial  of
    34  the application. The licensee or applicant shall have the opportunity to
    35  be  heard  in  his or her defense either in person or by counsel and may
    36  produce witnesses and testify on  his  or  her  behalf.  A  stenographic
    37  record  of  the hearing shall be taken and preserved. The hearing may be
    38  adjourned from time to time. The person  conducting  the  hearing  shall
    39  make a written report of his or her findings and a recommendation to the
    40  secretary  of  state  for  decision. The secretary of state shall review
    41  such findings and the recommendation and, after due deliberation,  shall
    42  issue an order accepting, modifying or rejecting such recommendation and
    43  dismissing the charges or suspending or revoking the license or imposing
    44  a  fine or reprimand upon the licensee. For the purpose of this article,
    45  the secretary of state or any officer or employee of the  department  of
    46  state  designated  by  him or her, may administer oaths, take testimony,
    47  subpoena witnesses and compel the production of books,  papers,  records
    48  and documents deemed pertinent to the subject of investigation.
    49    § 25.33. Enforcement.  1. The attorney general shall establish a toll-
    50  free telephone number and accept through its  website  allegations  from
    51  the  public  of improper ticket acquisition, distribution or sales prac-
    52  tices, including deceptive practices,  corruption,  fraud  or  irregular
    53  practices  with  respect to ticket sales for events in New York state or
    54  with respect to tickets sold to residents of  the  state.  The  attorney
    55  general  shall  prominently display on its website information regarding
    56  the hotline. The attorney general shall investigate as  appropriate  all

        A. 1534                            12
     1  credible  allegations  received  regarding  improper ticket acquisition,
     2  distribution or sales practices.
     3    2.  Notwithstanding  any  right  of action granted to any governmental
     4  body pursuant to this chapter, any person who has been injured by reason
     5  of a violation of this article may bring an action in  his  or  her  own
     6  name to enjoin such unlawful act, an action to recover his or her actual
     7  damages  or  fifty  dollars, whichever is greater, or both such actions.
     8  The court may award reasonable attorney's fees to  a  prevailing  plain-
     9  tiff.
    10    § 25.35. Criminal  penalties.  1. (a) Any person, firm, corporation or
    11  other entity, whether or not domiciled, licensed  or  registered  within
    12  the  state,  which  is  convicted of violating section 25.27 or 25.29 of
    13  this article shall be guilty of a class A misdemeanor  punishable  by  a
    14  fine  not to exceed two thousand dollars or four times the amount of the
    15  defendant's gain, to be determined pursuant to the procedures set  forth
    16  in  section  400.30 of the criminal procedure law, whichever is greater,
    17  or by a term of imprisonment not to exceed one year,  or  by  both  such
    18  fine and imprisonment.
    19    (b)  Any  person,  firm,  corporation  or other entity, whether or not
    20  domiciled, licensed, or registered within the state, which is  convicted
    21  of  violating  section 25.27 or 25.29 of this article, when the value of
    22  the commission, gratuity, bonus, premium or  price  unlawfully  paid  or
    23  accepted exceeds one thousand dollars for an event as defined in section
    24  23.03  of  this chapter, whether or not such payment is for tickets to a
    25  single performance of that event, shall be guilty of a class  E  felony,
    26  punishable  by  a term of imprisonment in accordance with the penal law,
    27  or by a fine of ten thousand dollars or four times  the  amount  of  the
    28  defendant's  gain, to be determined pursuant to the procedures set forth
    29  in section 400.30 of the criminal procedure law, whichever  is  greater,
    30  or by both such fine and imprisonment.
    31    2.  Any  person,  firm  or corporation which is convicted of violating
    32  section 25.05 of this article shall be guilty of a misdemeanor  punisha-
    33  ble by a term of imprisonment not to exceed one year or by a fine not to
    34  exceed  one thousand five hundred dollars on the first conviction; three
    35  thousand dollars on the second conviction; and four thousand dollars, on
    36  each subsequent conviction or by both such fine and imprisonment.
    37    3. Any person, firm or corporation which  is  convicted  of  knowingly
    38  violating  subdivision  one of section 25.07 or section 25.13 or section
    39  25.15 of this article shall be guilty of a misdemeanor punishable  by  a
    40  term  of imprisonment not to exceed one hundred eighty days or by a fine
    41  not to exceed one thousand dollars on the first conviction; two thousand
    42  dollars on the second conviction; and  four  thousand  dollars  on  each
    43  subsequent conviction or by both such fine and imprisonment.
    44    4.  Notwithstanding  any  other  penalty  which may be imposed for any
    45  other violation of this article, any person, firm or  corporation  which
    46  is  convicted of violating section 25.11 of this article shall be guilty
    47  of a violation punishable by a fine not to exceed four  hundred  dollars
    48  on  the first conviction; five hundred dollars on the second conviction;
    49  and one thousand dollars on each subsequent conviction.
    50    5. Any person, firm or corporation which  is  convicted  of  violating
    51  section  25.05 of this article shall be guilty of a violation punishable
    52  by a fine not to exceed one thousand dollars.
    53    6. Any person, firm or corporation which is convicted of violating any
    54  other section of this article shall be guilty of a violation  punishable
    55  by a fine not to exceed five hundred dollars.

        A. 1534                            13
     1    7. Notwithstanding any other provision to the contrary, when the fines
     2  included  in  this  section  are imposed on a firm, corporation or other
     3  entity that is not a single person, such fines may be imposed at  up  to
     4  two  times  the  amount  otherwise  allowed, or, where applicable, three
     5  times the amount of the defendant's gain.
     6    §  2.  This  act  shall take effect immediately and shall be deemed to
     7  have been in full force and effect on and after July 1, 2019.
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