BILL NUMBER: S276
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the arts and cultural affairs law, in relation to insti-
tuting civil penalties for utilizing ticket purchasing software (Part
A); to amend the arts and cultural affairs law, in relation to estab-
lishing an annual professional reseller renewal fee and requiring
professional ticket resellers to provide their New York state ticket
reseller license number (Part B); to amend the arts and cultural affairs
law, in relation to providing criteria for when a purchaser may obtain a
full refund of the amount paid for a ticket (Part C); to amend the arts
and cultural affairs law, in relation to resale requirements for tickets
(Part D); to amend the arts and cultural affairs law, in relation to
unlawful charges in connection with tickets (Part E); to amend the arts
and cultural affairs law, in relation to the availability of tickets for
sale to the general public (Part F); to amend the arts and cultural
affairs law, in relation to minimum seating capacity requirements for a
professional sports organization membership pass (Part G); to amend the
general obligations law, in relation to prohibiting exclusivity clauses
in contracts between operators of places of entertainment and primary
ticket vendors (Part H); and to amend the arts and cultural affairs law,
in relation to the resale of tickets included in a subscription or
season ticket package (Part I)
 
PURPOSE:
To enact key provisions of legislation relating to live event ticket
sales.
SUMMARY OF PROVISIONS:
SECTION I:
This act enacts legislation components relating to live event ticket
sales into law. Each component is wholly contained within a Part identi-
fied as Parts A through M. The effective date for each particular
provision contained within such Part is outlined in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which refers to a section "of this
act," when used in connection with that particular component, shall be
deemed to mean and refer to the corresponding section of the Part in
which it is found unless noted otherwise.
 
PART A:
Amends section 25.24 of the arts and cultural affairs law to state any
person, firm, corporation, or other entity who (1) knowingly utilizes
ticket purchasing software to purchase the tickets; or (2)intentionally
maintains any interest in or control of the operation of ticket purchas-
ing software to purchase tickets; or (3) knowingly resell or offers to
resell a ticket that such person, firm, corporation, or other entity
knows was obtained using ticket purchasing software and was not obtained
for their use or the use of their invitees, employees, or agents shall
be subject to a civil penalty in an amount of no less than $1,000 and no
more than $2,500 for each violation.
Any person, firm, corporation, or other entity that is a licensee under
this article and is adjudicated guilty of the following shall lose their
license and be permanently barred from licensure if such licensee:
(i)knowingly utilized ticket purchasing software to purchase tickets;
(ii) knowingly resold or offered to resell a ticket that such licensee
knew was obtained using ticket purchasing software; or (iii) inten-
tionally maintained any interest in or maintained any control of the
operation of ticket purchasing software to purchase tickets.
Failure to notify the attorney general of such acts shall result in a
violation and such person, firm, corporation, or other entity who fails
to make such notification shall be subject to a civil penalty in an
amount of no less than $500 and no more than $1,000 per ticket purchased
or resold utilizing such ticket-purchasing software.
Any person, firm, corporation, or other entity who notifies the attorney
general of such acts pursuant to this article, where the attorney gener-
al takes action pursuant to the notification, which results in a mone-
tary penalty assessed under a violation shall be entitled to 5 percent
of the final penalty collected due to such a violation.
This act shall take effect on the sixtieth day after it shall have
become law.
 
PART B:
Amends section 25.03 of the arts and cultural affairs law to add a new
subdivision 11 defines "professional reseller" to mean a reseller, also
referred to as a ticket broker, and includes any person, firm, corpo-
ration or other entity that is involved in the business of resale tick-
ets. Individuals who do not regularly engage in the business of resell-
ing tickets, who resell fewer than 30 tickets per year and who obtain
the tickets for such individual's personal use or the use of friends and
family are not deemed professional resellers for the purposes of this
article.
Amends section 25.13 of the arts and cultural affairs law to require
professional resellers to pay an applicant fee of five thousand dollars
and an annual renewal fee dependent upon the number of tickets resold in
one year. For the renewal fee, "Tickets" shall mean: (i) each resold
ticket not originally purchased by the professional reseller as part of
a season or subscription ticket package, or (ii) a set of resold tickets
initially purchased by the professional reseller as part of a season or
subscription ticket package.
Amends section 25.19 of the Arts and Cultural Affairs law to require
online resale marketplaces require professional resellers to provide
their New York state ticket reseller license number as a condition of
utilizing an online resale marketplace to resell tickets. For the
purposes of this section, "online resale marketplace" means any operator
or manager of a website or other electronic service that resells tickets
or serves as a platform to facilitate resale or resale by way of a
competitive bidding process. Online resale marketplaces shall disclose
clearly and conspicuously, a notice on the advertisement or offer of a
ticket or tickets that such ticket or tickets being purchased are being
resold by a licensed New York state professional reseller.
This act shall take effect on the sixtieth day after it shall have
become law, provided, however, that the amendments to sections 25.03,
25.13 and 25.19 of the arts and cultural affairs law made by sections
one, two, and three of this act shall not affect the repeal of such
article and shall be deemed repealed therewith.
 
PART C:
Amends section 25.07 of the Arts and Cultural Affairs law to require the
a full refund of the amount paid by the purchaser unless the purchaser
elects to retain such tickets or a credit in lieu of a full refund with-
in 30 days of receiving such notice of an opportunity to refund, if any
of the following occurs: (d) the event for which such ticket has been
sold or resold is postponed more than once in a calendar year; (e) the
event for which such ticket has been sold or resold has been rescheduled
to a subsequent date more than one year from the initial event date; or
(f) the event for which such ticket has been sold or resold has been
postponed and has not been rescheduled within three months after the
initial event date. Upon the occurrence of any of the aforementioned
events, the seller or reseller shall notify the purchaser of such tick-
ets. It shall provide a 30-day window during which the purchaser may
elect to retain such tickets, receive a credit equal to or in excess of
the full amount paid by the purchaser, or receive a full refund. If, at
the end of the thirty-day window, the purchaser of such ticket does not
choose one of the aforementioned options, they shall receive an immedi-
ate full refund of the amount paid by the purchaser, including but not
limited to all fees, regardless of how characterized. The secretary of
state shall promulgate rules and regulations regarding notification
procedures and determine a sufficient refund period, which shall be no
less than thirty days following a triggering event.
Adds a new subdivision 5, stating that any person, firm, or corporation,
regardless of whether or not licensed under this article or designated
as a professional reseller or an online resale marketplace that resells
tickets or facilitates the resale or resale auction of tickets between
independent parties by any means shall guarantee without restriction to
each purchaser of such resold tickets that the person, firm, or corpo-
rate ration will honor, communicate, and facilitate, if so requested by
such purchaser, all opportunities for refunds, exchanges, credits, or
other remedies due to event cancellation or postponement that are
publicly offered by a primary ticket seller to original purchasers of
such tickets.
This act shall take effect on the sixtieth day after it shall have
become a law, provided, however, that the amendments to section 25.07 of
the arts and cultural affairs made by section one of this act shall not
affect the expiration of such section and shall be deemed expired there-
with.
 
PART D:
Amends section 25.23 of the arts and cultural affairs law, requiring an
online resale marketplace to require the established price charged by
the operator of a place of entertainment that is printed or endorsed on
the face of each ticket in accordance with section 25.07 of this article
to be clearly and conspicuously posted as part of each advertisement or
offer for the resale of tickets. An online resale marketplace shall
require the user to confirm having read such notices before completing
any transaction.
This act shall take effect on the sixtieth day after it shall have
become a law, provided, however, that the amendments to section 25.23 of
the arts and cultural affairs made by section one of this act shall not
affect the repeal of such section and shall be deemed repealed there-
with.
 
PART E:
Amends section 25.10 of the arts and cultural affairs law to make it
unlawful for a licensee or other ticket reseller to advertise for the
sale of tickets, contract for the sale of tickets, contract to obtain
tickets for another or accept consideration for payment in full or for a
deposit for the sale of tickets unless and until such licensee or other
ticket reseller has the offered ticket in its possession or has a writ-
ten contract to obtain the provided ticket at a specific price from a
person or entity in possession of the ticket or from a person or entity
who has a contractual right to obtain such tickets and tickets to the
the event has been placed on sale by the venue or entity hosting the
event or its authorized agent. "Placed on sale" shall mean the date and
time when tickets are made available for sale to the general public,
excluding any prior sales to fan clubs, businesses, and persons for
promotional activities.
This act shall take effect on the sixtieth day after it shall have
become a law, provided, however, that the amendments to section 25.10 of
the arts and cultural affairs made by section one of this act shall not
affect the repeal of such section and shall be deemed repealed there-
with.
 
PART F:
Amends section 25.07 of the arts and cultural affairs law to require
disclosure clearly and conspicuously of the total price of the ticket
and the portion of the ticket price stated in dollars that represents a
service charge or any other fee or surcharge to the purchaser at the
beginning of a transaction before a ticket is selected for purchase. The
price of the ticket shall not change during the purchase process,
excluding reasonable fees for the delivery of nonelectronic tickets
based on the delivery method selected by the purchaser that shall be
disclosed prior to accepting payment thereof.
This act shall take effect on the sixtieth day after it shall have
become a law, provided, however, that the amendments to section 25.07 of
the arts and cultural affairs made by section one of this act shall not
affect the repeal of such section and shall be deemed repealed there-
with.
 
PART G:
Amends section 25.03 of the arts and cultural affairs law to add new
subdivisions 12 and 13, defining "primary ticket seller" to mean an
owner or operator of a venue or sports team, a manager or provider of an
event, or a provider of ticketing services or an agent of such owner,
operator, manager, or provider that engages in the primary sale of tick-
ets for an event or retains the authority to distribute tickets other-
wise and "placed on sale" to mean the date and time when tickets are
made available for sale to the general public, excluding any prior sales
to fan clubs, businesses, and persons for promotional activities.
Amends section 25.29 of the arts and cultural affairs law to state no
the operator of any place of entertainment, or his or her agent, repre-
sentative, employee, or licensee shall if a price be charged for admis-
sion thereto,exact, demand, accept, or receive, directly or indirectly,
any premium or price in excess of the established price plus lawful
taxes whether designated as price, gratuity, or otherwise; provided,
however:(a) nothing in this article shall be construed to prohibit a
reasonable a service charge of fifteen or less percent of the price of a
ticket prior to the addition of any charges by any person, firm, or
corporation, regardless of whether or not licensed under this article,
that sells tickets or facilitates the sale of tickets, resells tickets,
or facilitates states the resale or resale auction of tickets between
independent parties by any means for special services rendered or other-
wise in connection to customer support, technological and software
infrastructure, and actual operational costs for sales away from the box
office, (b) it shall be an unlawful act for a primary ticket seller that
earns more significant revenue through the primary sale of tickets than
the resale of tickets from charging any fee whatsoever to resell tickets
purchased initially from such a seller; and (c) nothing in this article
shall be construed to prohibit an operator or its agent from offering
for initial sale tickets by means of an auction.
A reasonable and actual cost for the physical delivery of tickets may be
charged by the seller or reseller based on the method of delivery
selected by the purchaser; provided, however, no delivery fee shall be
separately charged for electronic tickets or tickets that may be printed
at home.
Any person, firm, or corporation, regardless of whether or not licensed
under this article, someone who sells tickets or facilitates the sale of
tickets is prohibited from requiring a minimum price for the resale of
any tickets purchased from a primary ticket seller.
Under no circumstances shall any person, firm, or corporation, regard-
less of whether or not licensed under this article, that sells tickets
or facilitates the sale of tickets, increases displayed prices of tick-
ets while a purchaser (i) is waiting in a physical or virtual queue,
room or a similar location or sequence established to await the purchase
of tickets, (ii) has the ability to select and review tickets from a
physical or virtual list or map but has not yet completed the purchase
or (iii) completing the physical or virtual checkout process to purchase
tickets. Notwithstanding the provisions of this subdivision, any person,
firm or corporation that sells tickets or facilitates the sale of tick-
ets may place reasonable and uniform restrictions on the length of time
allowed for a purchaser of tickets to review and complete each trans-
action.
This act shall take effect on the sixtieth day after it shall have
become a law, provided, however, that the amendments to section 25.03
and 25.29 of the arts and cultural affairs made by sections one and two
of this act shall not affect the repeal of such section and shall be
deemed repealed therewith.
 
PART H:
Adds a new section 25.06 to the arts and cultural affairs law to make it
unlawful for any person, firm, or corporation to resell or offer to
resell any ticket or other evidence of right of entry to any place of
entertainment if such ticket was initially offered to the public at no
charge. Excludes an individual's ability to transfer a ticket to another
party.
This act shall take effect on the sixtieth day after it shall have
become a law, provided, however, that the amendments to article 25 of
the arts and cultural affairs made by section one of this act shall not
affect the repeal of such section and shall be deemed repealed there-
with.
 
PART I:
Adds a new section 25.04 to the arts and cultural affairs law to require
primary ticket sellers to disclose and display on the website at the box
office, and any other method of ticket distribution of such primary
ticket seller, the total number of tickets offered for sale to the
general public by such primary ticket seller not less than seven days
before the date on which tickets shall be available for primary sale.
The primary ticket shall periodically update the total number seller if
and when additional tickets are subsequently released for sale to the
general public. Excludes (i) venues with a seating capacity of less than
six thousand five hundred guests, and (ii) places of entertainment such
as fairgrounds, amusement parks, museums, observatories, ski resorts,
ice skating rinks, and other recreational facilities.
It shall be an unlawful practice for a primary ticket seller or any
person or entity who has access to tickets to an event prior to the
tickets' release for sale to the general public to withhold those tick-
ets from sale to the general public in an amount exceeding ten percent
of all available seating for the event. Tickets distributed to bonafide
charitable groups or initially reserved due to pending seating config-
urations that are subsequently released to the public shall not be
included within this amount. Excludes places of entertainment such as
fairgrounds, amusement parks, museums, observatories, ski resorts, ice
skating rinks and other recreational facilities.
It shall be an unlawful practice for an individual employee of any
venue, primary ticket seller, team, artist, online resale marketplace,
box office, or any other entity that is involved in hosting, promot-
ing,performing or ticket selling to resell tickets that have been with-
held from the general public for