Bill Text: NY A08245 | 2017-2018 | General Assembly | Amended


Bill Title: Relates to the sale of tickets to places of entertainment; establishes notice and disclosure requirements for the sale or resale of tickets.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2018-06-20 - substituted by s8501b [A08245 Detail]

Download: New_York-2017-A08245-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         8245--C
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      June 2, 2017
                                       ___________
        Introduced  by M. of A. O'DONNELL, FAHY -- read once and referred to the
          Committee on Tourism, Parks, Arts and Sports Development  --  reported
          and referred to the Committee on Codes -- recommitted to the Committee
          on  Codes  in  accordance  with  Assembly  Rule 3, sec. 2 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee -- again reported from said  committee  with  amend-
          ments,  ordered reprinted as amended and recommitted to said committee
          --  again  reported  from  said  committee  with  amendments,  ordered
          reprinted as amended and recommitted to said committee
        AN  ACT  to  amend the arts and cultural affairs law, in relation to the
          sale of tickets to places of entertainment; to amend  chapter  704  of
          the laws of 1991, amending the arts and cultural affairs law and chap-
          ter  912  of the laws of 1920 relating to the regulation of boxing and
          wrestling matches relating to tickets to places of entertainment;  and
          chapter  151  of  the  laws  of  2010,  amending the arts and cultural
          affairs law relating to resale of tickets to places of  entertainment,
          in relation to extending the effectiveness of the provisions thereof
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The arts and cultural affairs law is amended  by  adding  a
     2  new section 25.10 to read as follows:
     3    §  25.10.  Ticket  resale requirements. 1.  It shall be unlawful for a
     4  licensee or other ticket reseller to contract for the sale  of  tickets,
     5  contract  to  obtain  tickets  for  another, or accept consideration for
     6  payment in full or for a deposit for the sale  of  tickets  unless  such
     7  licensee  or  other  ticket  reseller meets one or more of the following
     8  requirements:
     9    (a) such licensee or other ticket reseller has the offered  ticket  in
    10  its possession;
    11    (b)  such  licensee or other ticket reseller has a written contract to
    12  obtain the offered ticket at a certain price from a person in possession
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11767-16-8

        A. 8245--C                          2
     1  of the ticket or from a person who has a  contractual  right  to  obtain
     2  such ticket; or
     3    (c)  such licensee or other ticket reseller informs the purchaser in a
     4  clear and conspicuous manner and in plain language at the time of offer-
     5  ing such ticket for sale and in a written notice prior to the completion
     6  of the transaction that such licensee or other ticket reseller does  not
     7  have  possession  of  the  ticket, has no contract to obtain the offered
     8  ticket at a certain price from a person in possession of the  ticket  or
     9  from a person who has a contractual right to obtain such ticket, may not
    10  be able to supply the ticket at the contracted price or range of prices,
    11  and requires such purchaser to expressly confirm prior to completing the
    12  transaction that the purchaser has read such notice.
    13    2.  Nothing  in this section shall prohibit a licensee or other ticket
    14  reseller from accepting a deposit from a  prospective  purchaser  for  a
    15  resale  pursuant  to  paragraph  (c) of subdivision one of this section,
    16  provided that  such  licensee  or  other  ticket  reseller  informs  the
    17  purchaser  in  writing prior to receipt of consideration of the terms of
    18  the deposit agreement, and includes in the written  notice  the  disclo-
    19  sures  otherwise  required  by  this  section.  If  a licensee or ticket
    20  reseller has entered into a contract with or received consideration from
    21  a prospective purchaser for the sale of a ticket or tickets  and  cannot
    22  supply  such  ticket  or tickets at the contracted price or price range,
    23  such licensee or ticket reseller shall refund any monies  paid  by  such
    24  prospective  purchaser  within ten business days of receipt of a request
    25  for a refund from such purchaser.
    26    3. Nothing in this section shall  be  construed  to  nullify,  expand,
    27  restrict,  or otherwise amend or modify now existing laws or regulations
    28  outside of this article, and nothing in this section shall be  construed
    29  as  making  lawful any fraudulent, deceptive, or illegal act or practice
    30  that is unlawful pursuant to now existing laws or regulations.
    31    4. The  attorney  general  shall  have  jurisdiction  to  enforce  the
    32  provisions  of this section in accordance with the powers granted to him
    33  or her by section sixty-three of the executive law.
    34    § 2. Section 25.19 of the arts and cultural affairs law, as amended by
    35  chapter 61 of the laws of 2007, is amended to read as follows:
    36    § 25.19. Posting of  license  or  certificate.  Immediately  upon  the
    37  receipt of the license or certificate issued pursuant to this article by
    38  the  secretary  of  state,  the  licensee named therein shall cause such
    39  license to be posted and at all times displayed in a  conspicuous  place
    40  in  the  principal  office  of such business for which it is issued, and
    41  shall cause the certificate for each branch office,  bureau,  agency  or
    42  sub-agency  to  be  posted  and  at all times displayed in a conspicuous
    43  place in such branch office, bureau, agency or sub-agency for  which  it
    44  is  issued,  so  that all persons visiting such principal office, branch
    45  office, bureau, agency or sub-agency may readily see the  same,  and  if
    46  such  licensee  does  business  on  the internet, including via a retail
    47  ticket purchasing platform, to provide a license number displayed  in  a
    48  conspicuous manner or a hyperlink displayed in a conspicuous manner to a
    49  scanned  copy of such license.  Such license or certificate shall at all
    50  reasonable times be subject to inspection by the secretary of  state  or
    51  his  or  her authorized inspectors. It shall be unlawful for any person,
    52  firm, partnership or corporation holding such license or certificate  to
    53  post  such  license  or  certificate or to permit such certificate to be
    54  posted upon premises other than those described therein or to  which  it
    55  has  been  transferred  pursuant  to  the  provisions of this article or
    56  unlawfully to alter, deface or destroy any such license or  certificate.

        A. 8245--C                          3
     1  For  purposes  of this section, the term "retail ticket purchasing plat-
     2  form" shall mean a retail ticket purchasing website, application,  phone
     3  system, or other technology platform used to sell tickets.
     4    § 3. Section 25.23 of the arts and cultural affairs law, as amended by
     5  chapter 106 of the laws of 2005, is amended to read as follows:
     6    § 25.23. Posting  of  price  lists;  information to purchaser.   1. In
     7  every principal office or branch office, bureau, agency or sub-agency of
     8  any licensee under this article, there shall be conspicuously posted and
     9  at all times displayed  a  price  list  showing  the  established  price
    10  charged by the operator of the place of entertainment for which a ticket
    11  is being sold by such licensee, together with the price being charged by
    12  such  licensee for the resale of such ticket, so that all persons visit-
    13  ing such place may readily see the same.  The  licensee  shall  also  on
    14  request  furnish  each  purchaser of a ticket with a receipt showing the
    15  same information. Further, if the licensee conducts business through the
    16  use of the internet, the same price list,  or  hyperlink  to  the  same,
    17  shall  be  conspicuously displayed on the internet page on which tickets
    18  are accessed. In addition the licensee shall publish  in  a  conspicuous
    19  place, or hyperlink to on the internet a statement clearly detailing the
    20  required guarantees required by section 25.07 of this article.
    21    2.  An  online  resale  marketplace shall post a clear and conspicuous
    22  notice on the website that the website is for the secondary  sale  of  a
    23  ticket,  that  the  price of such ticket offered for sale may exceed the
    24  established price and shall also state the refund policy of the platform
    25  in connection with the cancellation or  postponement  of  an  event.  An
    26  online  resale  marketplace  shall  require that the user confirm having
    27  read such notice before completing any transaction.  For the purposes of
    28  this section, an "online  resale  marketplace"  means  any  operator  or
    29  manager of a website or other electronic service that resells tickets or
    30  serves as a platform to facilitate resale, or resale by way of a compet-
    31  itive bidding process.
    32    §  4. Section 25.24 of the arts and cultural affairs law is amended by
    33  adding a new subdivision 10 to read as follows:
    34    10. Any person, firm, corporation or other entity who  is  a  licensee
    35  under  this  article who is adjudicated guilty of the following acts may
    36  lose their license and may be barred from licensure under  this  article
    37  for  a  period not to exceed three years to be determined by the depart-
    38  ment of state pursuant to section 25.31 of this article if  such  licen-
    39  see:  (a)  knowingly  utilized  ticket  purchasing  software in order to
    40  purchase tickets; (b) knowingly resold or offered  to  resell  a  ticket
    41  that  such  licensee knew was obtained using ticket purchasing software;
    42  or (c) intentionally  maintained  any  interest  in  or  maintained  any
    43  control of the operation of ticket purchasing software to purchase tick-
    44  ets.
    45    §  5. Section 25.07 of the arts and cultural affairs law is amended by
    46  adding a new subdivision 4 to read as follows:
    47    4. Every operator or operator's agent of a place of entertainment, any
    48  licensee or other ticket  reseller  or  platform  that  facilitates  the
    49  resale  of  tickets shall disclose in a clear and conspicuous manner the
    50  total price of the ticket and the portion of the ticket price stated  in
    51  dollars  that represents a service charge, or any other fee or surcharge
    52  prior to accepting payment therefor.
    53    § 6. The arts and cultural affairs law is  amended  by  adding  a  new
    54  section 25.12 to read as follows:
    55    §  25.12.  Professional sports organization membership pass.  Notwith-
    56  standing section 25.30 of this article, an operator of a place of enter-

        A. 8245--C                          4
     1  tainment or such operator's agent may offer paperless tickets  which  do
     2  not allow for independent transferability provided that such tickets are
     3  included in a membership pass at a discounted price offered by a profes-
     4  sional  sports  organization  for  seating  in venues or stadiums with a
     5  fixed capacity of over thirty thousand seats that guarantees entry to  a
     6  specified  number of events in a specified time period with seat assign-
     7  ments assigned no more than four hours prior to the commencement of  the
     8  event  and  such  seat assignment must be variable from game to game and
     9  not intended for season ticket holders.   Tickets  provided  under  such
    10  membership  pass  may  be  restricted  from being transferred or resold,
    11  including through the operator or operators' agents, and must be clearly
    12  marked as such prior to initial offering or sale. Such  membership  pass
    13  shall  not mean a subscription or season ticket package offered for sale
    14  and shall not result in the sale of more than five percent of the  maxi-
    15  mum  amount  of  all  seats that will be made available at a venue for a
    16  particular event to be sold under this section.
    17    § 7. Section 25.30 of the arts and cultural affairs law is amended  by
    18  adding a new subdivision 5 to read as follows:
    19    5.  No  operator  or  its  agent  shall  transfer a prospective ticket
    20  purchaser through any means to a licensee or secondary  ticket  reseller
    21  without  providing  a  clear and conspicuous disclosure that informs the
    22  prospective purchaser that the ticket is not being offered by the opera-
    23  tor or its agent, but rather by a licensee or other ticket  reseller  in
    24  the secondary market.
    25    §  8.  The  arts  and  cultural affairs law is amended by adding a new
    26  section 25.34 to read as follows:
    27    § 25.34. Ticket websites. 1. As used in this section:
    28    (a) "Ticket website" means an internet website advertising the sale of
    29  tickets, offering the sale of such tickets, or facilitating a  secondary
    30  ticket exchange.
    31    (b)  "URL"  means  the  uniform  resource locator for a website on the
    32  internet.
    33    2. (a) It shall be unlawful for any person or other  entity  to,  with
    34  intent  to mislead or deceive, own, operate, or control a ticket website
    35  for an event scheduled at a place of entertainment to use a subdomain or
    36  domain name in a ticket website's URL that contains:
    37    (i) the name of the place of entertainment, provided that  this  para-
    38  graph  shall not preclude the use of general terms to depict a geograph-
    39  ical location or venue category;
    40    (ii) the name of the specific event, including the name of a person or
    41  entity scheduled to perform or appear at the event; or
    42    (iii) a name substantially similar to those  in  subparagraph  (i)  or
    43  (ii) of this paragraph.
    44    (b) Paragraph (a) of this subdivision shall not apply if the person is
    45  acting  on  behalf  of,  and  with  the  consent of, the place of enter-
    46  tainment, event, artist or sports team for which the  website  is  being
    47  created.
    48    3.  Any  person,  firm,  corporation or other entity who intentionally
    49  owns, operates, or controls such ticket website shall be  subject  to  a
    50  civil  penalty  in  an  amount of no more than one thousand five hundred
    51  dollars for each such violation.
    52    4. Any person who is subject to a civil penalty under this section and
    53  has been assessed a penalty under this section  in  the  previous  three
    54  years  shall  be  assessed a civil penalty of no more than five thousand
    55  dollars for each such violation.

        A. 8245--C                          5
     1    5. The  attorney  general  shall  have  jurisdiction  to  enforce  the
     2  provisions  of this section in accordance with the powers granted to him
     3  or her by section sixty-three of the executive law.
     4    §  9.  Section 4 of chapter 704 of the laws of 1991, amending the arts
     5  and cultural affairs law and chapter 912 of the laws of 1920 relating to
     6  the regulation of boxing and wrestling matches relating  to  tickets  to
     7  places  of  entertainment, as amended by chapter 68 of the laws of 2017,
     8  is amended to read as follows:
     9    § 4. This act shall take effect on the sixtieth  day  after  it  shall
    10  have  become  a  law, provided, chapter 61 of the laws of 2007 shall not
    11  take effect with respect to the issuance  of  licenses  or  certificates
    12  under  this  article  by  the  secretary of state or department of state
    13  until January 1, 2008 and regulation under this article by  the  commis-
    14  sioners  of  licenses  of  the political subdivisions of the state shall
    15  continue through December 31, 2007, and shall remain in full  force  and
    16  effect only until and including June 30, [2018] 2021 when such act shall
    17  be  repealed  and  when, notwithstanding any other provision of law, the
    18  provisions of article 25 of title G of the  arts  and  cultural  affairs
    19  law,  repealed by such act, shall be reinstituted; provided further that
    20  section 25.11 of the arts and cultural affairs law, as added by  section
    21  one  of this act, shall survive such repeal date. Provided, however, the
    22  printing on tickets required pursuant to sections  25.07  and  25.08  of
    23  article  25  of the arts and cultural affairs law, as added by this act,
    24  shall not apply to tickets printed prior to enactment of such article so
    25  long as notice of the higher maximum premium price  and  prohibition  of
    26  sales  within one thousand five hundred feet from the physical structure
    27  of  the  place  of  entertainment,  where  applicable,  is   prominently
    28  displayed at the point of sale and at such place of entertainment.
    29    § 10. Section 11 of chapter 151 of the laws of 2010, amending the arts
    30  and  cultural  affairs  law  relating  to resale of tickets to places of
    31  entertainment, as amended by chapter 68 of the laws of 2017, is  amended
    32  to read as follows:
    33    §  11.  Notwithstanding  the  provisions  of  article 5 of the general
    34  construction law, if this act shall take effect after May 15, 2010,  the
    35  provisions  of  article  25 of the arts and cultural affairs law, except
    36  section 25.11 are hereby revived and shall continue in  full  force  and
    37  effect as they existed on May 15, 2010 through June 30, [2018] 2021 when
    38  upon such date such provisions shall expire and be deemed repealed.
    39    § 11. This act shall take effect immediately; provided however that:
    40    (a)  sections one, two, three, four, five, seven and eight of this act
    41  shall take effect on the one hundred eightieth day after it  shall  have
    42  become a law; and
    43    (b)  the amendments to article 25 of the arts and cultural affairs law
    44  made by sections one, two, three, five, six, seven and eight of this act
    45  shall not affect the repeal of such article and shall be deemed repealed
    46  therewith.
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