S T A T E O F N E W Y O R K
________________________________________________________________________
7597
I N S E N A T E
April 23, 2010
___________
Introduced by Sen. C. JOHNSON -- read twice and ordered printed, and
when printed to be committed to the Committee on Investigations and
Government Operations
AN ACT to amend the arts and cultural affairs law, in relation to resale
of tickets to places of entertainment; to amend chapter 704 of the
laws of 1991, amending the arts and cultural affairs law and chapter
912 of the laws of 1920 relating to the regulation of boxing and wres-
tling relating to tickets to places of entertainment, in relation to
the effectiveness thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 25.03 of the arts and cultural affairs law is
amended by adding a new subdivision 10 to read as follows:
10. "TICKET OFFICE" MEANS A BUILDING OR OTHER STRUCTURE LOCATED OTHER
THAN AT THE PLACE OF ENTERTAINMENT, AT WHICH THE OPERATOR OR THE OPERA-
TOR'S AGENT OFFERS TICKETS FOR FIRST SALE TO THE PUBLIC.
S 2. Section 25.11 of the arts and cultural affairs law is amended by
adding a new subdivision 4 to read as follows:
4. FOR PURPOSES OF THIS SECTION, "TICKET OFFICE" MEANS A BUILDING OR
OTHER STRUCTURE LOCATED OTHER THAN AT THE PLACE OF ENTERTAINMENT, AT
WHICH THE OPERATOR OR THE OPERATOR'S AGENT OFFERS TICKETS FOR FIRST SALE
TO THE PUBLIC.
S 3. Section 25.11 of the arts and cultural affairs law, as amended by
chapter 61 of the laws of 2007, subdivision 3 as amended by chapter 374
of the laws of 2007, is amended to read as follows:
S 25.11. Resales of tickets within buffer zone. 1. No person, firm,
corporation or not-for-profit organization, whether or not domiciled,
licensed or registered within the state, shall resell, offer to resell
or solicit the resale of any ticket to any place of entertainment having
a permanent seating capacity in excess of five thousand persons within
one thousand five hundred feet from the physical structure of such place
of entertainment, OR A TICKET OFFICE OF SUCH PLACE OF ENTERTAINMENT IF
SEPARATE FROM THE PHYSICAL STRUCTURE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16830-05-0
S. 7597 2
2. No person, firm, corporation or not-for-profit organization, wheth-
er or not domiciled, licensed or registered within the state, shall
resell, offer to resell or solicit the resale of any ticket to any place
of entertainment having a permanent seating capacity of five thousand or
fewer persons within five hundred feet from the physical structure OR
TICKET OFFICE of such place of entertainment, provided however that
current licensees and those seeking a license under this article are
exempt from such buffer zone when operating out of a permanent physical
structure.
3. Notwithstanding subdivisions one and two of this section, an opera-
tor may designate an area within the property line of such place of
entertainment for the lawful resale of tickets only to events at such
place of entertainment by any person, firm, corporation or not-for-pro-
fit organization, whether or not domiciled, licensed or registered with-
in the state.
S 4. Section 25.15 of the arts and cultural affairs law, as amended by
chapter 374 of the laws of 2007, is amended to read as follows:
S 25.15. Bond. The secretary of state shall require the applicant for
a license to file with the application therefor [a bond in due form to
the people of New York in the penal sum] PROOF OF HAVING ESTABLISHED AND
MAINTAINED A SPECIAL INTEREST BEARING TRUST ACCOUNT IN THE MINIMUM
AMOUNT of twenty-five thousand dollars, [with two or more sufficient
sureties or a duly authorized surety company, which bond shall be
approved by the secretary of state] IN A NATIONAL OR STATE CHARTERED
BANKING INSTITUTION, OR A STATE OR FEDERALLY CHARTERED CREDIT UNION,
HAVING A PLACE OF BUSINESS WITHIN THE STATE. NO LICENSE SHALL BE ISSUED
UNLESS A COPY OF A CERTIFICATE OF DEPOSIT SHOWING THE MINIMUM BALANCE IN
SAID SPECIAL INTEREST BEARING TRUST ACCOUNT HAS BEEN FILED WITH THE
SECRETARY SIMULTANEOUSLY WITH THE FILING OF THE LICENSE APPLICATION.
Each such [bond] TRUST ACCOUNT shall be conditioned that the obligor
will not be guilty of any fraud or extortion, will not violate directly
or indirectly any of the provisions of this article or any of the
provisions of the license or certificate provided for in this article,
will comply with the provisions of this article and will pay all damages
occasioned to any person by reason of any misstatement, misrepresen-
tation, fraud or deceit or any unlawful act or omission of such obligor,
his or her agents or employees, while acting within the scope of their
employment, made, committed or omitted in connection with the provisions
of this article in the business conducted under such license or caused
by any other violation of this article in carrying on the business for
which such license is granted. [A suit to recover on the bond required
to be filed by the provisions of this article may be brought in the name
of the person damaged, upon the bond deposited with the department of
state by such licensed person, in a court of competent jurisdiction. The
amount of damages claimed by the plaintiff and not the penalty named in
the bond shall determine the jurisdiction of the court in which the
action is brought. One or more recoveries or payments upon such bond
shall not vitiate the same but such bond shall remain in full force and
effect, provided, however, that the aggregate amount of all such recov-
eries or payments shall not exceed the penal sum thereof] THE SECRETARY
SHALL PROMULGATE RULES AND REGULATIONS PERTAINING TO THE ISSUING OF
DETERMINATIONS, VIOLATIONS AND APPEALS, AS WELL AS, ACCESS TO THE TRUST
ACCOUNT. IF IT IS DETERMINED BY THE SECRETARY, BEFORE THE SECRETARY
SHALL DRAW UPON SUCH TRUST ACCOUNT, THAT ANY PROVISION OF THIS ARTICLE
OR RULE AND REGULATION PROMULGATED BY THE DEPARTMENT HAS BEEN VIOLATED,
DIRECTLY OR INDIRECTLY, THEN THE SECRETARY SHALL ISSUE, IN WRITING, OF
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ANY SUCH DETERMINATION AND SHALL AFFORD THE LICENSEE AN OPPORTUNITY TO
RESPOND WITHIN TWENTY DAYS OF THE RECEIPT OF SUCH DETERMINATION. IN NO
EVENT MAY THE ACCOUNT BE DRAWN UPON IN LESS THAN TWENTY-FIVE DAYS AFTER
THE SERVICE OF A DETERMINATION TO THE LICENSEE. SUCH WRITTEN NOTICE MAY
BE SERVED BY DELIVERY THEREOF PERSONALLY TO THE LICENSEE, OR BY CERTI-
FIED MAIL TO THE LAST KNOWN BUSINESS ADDRESS OF SUCH LICENSEE. A DETER-
MINATION OF A VIOLATION OF ANY PROVISION OF THIS ARTICLE OR OF ANY RULE
AND REGULATION PROMULGATED BY THE DEPARTMENT SHALL NOT DIMINISH A RIGHT
TO APPEAL. MONEYS MAY BE WITHDRAWN FROM SUCH ACCOUNT ONLY UPON THE
CERTIFICATION OF THE SECRETARY. Upon the [commencement of any action or
actions against the surety upon any such bond for] WITHDRAWAL OF a sum
or sums aggregating or exceeding the amount of such [bond] TRUST ACCOUNT
the secretary of state shall require a new and additional [bond] TRUST
ACCOUNT in like amount as the original one, which shall be filed with
the department of state within thirty days after the demand therefor.
Failure to file such [bond] PROOF OF MAINTAINING A TRUST ACCOUNT within
such period shall constitute cause for the revocation of the license
pursuant to section 25.31 of this article theretofore issued to the
licensee upon whom such demand shall have been made. [Any suit or action
against the surety on any bond required by the provisions of this
section shall be commenced within one year after the cause of action
shall have accrued.]
S 5. Section 4 of chapter 704 of the laws of 1991, amending the arts
and cultural affairs law and chapter 912 of the laws of 1920 relating to
the regulation of boxing and wrestling relating to tickets to places of
entertainment, as amended by chapter 68 of the laws of 2009, is amended
to read as follows:
S 4. This act shall take effect on the sixtieth day after it shall
have become a law, provided, chapter 61 of the laws of 2007 shall not
take effect with respect to the issuance of licenses or certificates
under this article by the secretary of state or department of state
until January 1, 2008 and regulation under this article by the commis-
sioners of licenses of the political subdivisions of the state shall
continue through December 31, 2007, and shall remain in full force and
effect only until and including May 15, [2010] 2012 when such act shall
be repealed and when, notwithstanding any other provision of law, the
provisions of article 25 of title G of the arts and cultural affairs
law, repealed by such act, shall be reinstituted; PROVIDED FURTHER THAT
SECTION 25.11 OF THE ARTS AND CULTURAL AFFAIRS LAW, AS ADDED BY SECTION
ONE OF THIS ACT, SHALL SURVIVE SUCH REPEAL DATE. Provided, however, the
printing on tickets required pursuant to sections 25.07 and 25.08 of
article 25 of the arts and cultural affairs law, as added by this act,
shall not apply to tickets printed prior to enactment of such article so
long as notice of the higher maximum premium price and prohibition of
sales within one thousand five hundred feet from the physical structure
of the place of entertainment, where applicable, is prominently
displayed at the point of sale and at such place of entertainment.
S 6. Section 25.30 of the arts and cultural affairs law, as added by
chapter 61 of the laws of 2007, is amended to read as follows:
S 25.30. Operator prohibitions. 1. A ticket is a license, issued by
the operator of a place of entertainment, for admission to the place of
entertainment at the date and time specified on the ticket, subject to
the terms and conditions as specified by the operator. Notwithstanding
any other provision of law to the contrary, it shall be prohibited for
any operator of a place of entertainment OR ANY OPERATOR'S AGENT, who
S. 7597 4
offers for sale subscription or season ticket packages OR TICKETS TO A
SINGLE EVENT, to:
(A) restrict by any means the resale of any tickets included in the
subscription or season ticket package as a condition of purchase, as a
condition to retain such tickets for the duration of the subscription or
season ticket package agreement, or as a condition to retain any
contractually agreed upon rights to purchase future subscription or
season ticket packages that are otherwise conferred in the subscription
or season ticket agreement[. Furthermore, it shall be prohibited for
any operator of a place of entertainment to];
(B) deny access to a ticket holder who possesses a resold subscription
or season ticket OR A TICKET TO A SINGLE EVENT to a performance based
solely on the grounds that such ticket has been resold; OR
(C) PROHIBIT OR RESTRICT THE SALE OF ANY TICKET IN AN ELECTRONIC FORM
THAT IS NOT READILY TRANSFERABLE WHETHER BY GIFT, SALE, OR BY ANY OTHER
MEANS OF TRANSFER.
2. Additionally, nothing in this article shall be construed to prohib-
it an operator of a place of entertainment from maintaining and enforc-
ing any policies regarding conduct or behavior at or in connection with
their venue. FURTHER, NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO
PROHIBIT AN OPERATOR OF A PLACE OF ENTERTAINMENT OR AN OPERATOR'S AGENT
FROM RESTRICTING THE RESALE OF TICKETS WHICH ARE OFFERED AT A PROMO-
TIONAL OR DISCOUNTED PRICE, OR FOR FREE. An operator shall be permitted
to revoke or restrict season tickets for reasons relating to violations
of venue policies, including but not limited to, attempts by two or more
persons to gain admission to a single event with both the cancelled
tickets originally issued to a season ticket holder and those tickets
re-issued as part of a resale transaction, and to the extent the opera-
tor may deem necessary for the protection of the safety of patrons or to
address fraud or misconduct.
3. NO OPERATOR'S AGENT SHALL SELL OR CONVEY TICKETS TO ANY SECONDARY
TICKET RESELLER OWNED OR CONTROLLED BY THE OPERATOR'S AGENT.
4. THE OPERATOR OR THE PROMOTER SHALL DETERMINE WHETHER A SEAT FOR
WHICH A TICKET IS FOR SALE HAS AN OBSTRUCTED VIEW, AND SHALL DISCLOSE
SUCH OBSTRUCTION. IF THE OPERATOR OR PROMOTER DISCLOSES THAT A SEAT FOR
WHICH A TICKET IS FOR SALE HAS AN OBSTRUCTED VIEW, IT SHALL BE THE
RESPONSIBILITY OF THE SECONDARY TICKET RESELLER TO DISCLOSE SUCH
OBSTRUCTION UPON THE RESALE OF SUCH TICKET. SUCH OBSTRUCTION SHALL NOT
INCLUDE AN OBSTRUCTION OF VIEW CAUSED BY A PERSON, OR PERSONS, SEATED IN
AN ADJACENT SEAT, OR SEATS, OR OCCUPYING AN AISLE; OR AN OBSTRUCTION OF
VIEW CAUSED BY AN OBJECT OR OBJECTS PLACED UPON AN ADJACENT SEAT OR
SEATS, OR IN AN AISLE; OR AN OBSTRUCTION OF VIEW THAT IS DE MINIMUS OR
TRANSITORY IN NATURE.
S 7. The arts and cultural affairs law is amended by adding a new
section 25.24 to read as follows:
S 25.24. AUTOMATED TICKET PURCHASING SOFTWARE. 1. THE TERM "AUTOMATED
TICKET PURCHASING SOFTWARE" SHALL MEAN, ANY MACHINE, DEVICE, COMPUTER
PROGRAM OR COMPUTER SOFTWARE THAT NAVIGATES OR RUNS AUTOMATED TASKS ON
RETAIL TICKET PURCHASING WEBSITES IN ORDER TO BYPASS SECURITY MEASURES
AND PURCHASE LARGE AMOUNTS OF TICKETS, IN EXCESS OF THE AMOUNTS PERMIT-
TED BY THE RETAILER, ARTIST OR VENUES PER TRANSACTION.
2. ANY PERSON WHO IS NOT LICENSED PURSUANT TO SECTION 25.13 OF THIS
CHAPTER WHO KNOWINGLY UTILIZES AUTOMATED TICKET PURCHASING SOFTWARE IN
ORDER TO BYPASS SECURITY MEASURES TO PURCHASE LARGE AMOUNTS OF TICKETS
IN EXCESS OF THE AMOUNTS PERMITTED BY THE RETAILER SHALL BE SUBJECT TO A
CIVIL PENALTY IN AN AMOUNT OF NO LESS THAN FIVE HUNDRED DOLLARS AND NO
S. 7597 5
MORE THAN ONE THOUSAND DOLLARS FOR EACH SUCH VIOLATION AND SHALL FORFEIT
ALL PROFITS MADE FROM THE SALE OF ANY SUCH UNLAWFULLY OBTAINED TICKETS.
3. ANY PERSON WHO IS NOT LICENSED PURSUANT TO SECTION 25.13 OF THIS
CHAPTER AND WHO INTENTIONALLY MAINTAINS ANY INTEREST IN OR MAINTAINS ANY
CONTROL OF THE OPERATION OF AUTOMATED TICKET PURCHASING SOFTWARE TO
BYPASS SECURITY MEASURES TO PURCHASE LARGE AMOUNTS OF TICKETS IN EXCESS
OF THE AMOUNTS PERMITTED BY THE RETAILER SHALL BE SUBJECT TO A CIVIL
PENALTY IN AN AMOUNT OF NO LESS THAN SEVEN HUNDRED FIFTY DOLLARS AND NO
MORE THAN ONE THOUSAND FIVE HUNDRED DOLLARS FOR EACH SUCH VIOLATION AND
SHALL FORFEIT ALL PROFITS MADE FROM THE SALE OF ANY SUCH UNLAWFULLY
OBTAINED TICKETS.
4. ANY PERSON WHO IS SUBJECT TO A CIVIL PENALTY UNDER THIS SECTION AND
HAS BEEN ASSESSED A PENALTY UNDER THIS SECTION IN THE PREVIOUS FIVE
YEARS SHALL BE GUILTY OF A VIOLATION AND MAY BE FINED NO LESS THAN ONE
THOUSAND DOLLARS AND NO MORE THAN FIVE THOUSAND DOLLARS FOR EACH SUCH
VIOLATION AND SHALL FORFEIT ALL PROFITS FROM THE SALE OF ANY SUCH UNLAW-
FULLY OBTAINED TICKETS. IN ADDITION, A PERSON CONVICTED OF A VIOLATION
UNDER THIS SECTION MAY BE REQUIRED TO FORFEIT ANY AND ALL EQUIPMENT USED
IN THE UNLAWFUL PURCHASING OF TICKETS.
5. THE ATTORNEY GENERAL SHALL HAVE JURISDICTION TO ENFORCE THE
PROVISIONS OF THIS SECTION IN ACCORDANCE WITH THE POWERS GRANTED TO HIM
OR HER BY SECTION SIXTY-THREE OF THE EXECUTIVE LAW.
6. IN ADDITION TO THE POWER GIVEN TO THE ATTORNEY GENERAL TO ENFORCE
THE PROVISIONS OF THIS SECTION, ANY PLACE OF ENTERTAINMENT, AS DEFINED
BY SECTION 23.03 OF THIS CHAPTER, THAT HAS BEEN INJURED BY A VIOLATION
OF THIS SECTION MAY BRING AN ACTION IN THE NAME OF THE PLACE OF ENTER-
TAINMENT TO RECOVER ALL ACTUAL DAMAGES SUFFERED AS A RESULT OF ANY OF
THE ABOVE PROSCRIBED ACTIONS. THE COURT IN ITS DISCRETION MAY AWARD
DAMAGES UP TO THREE TIMES THE AMOUNT OF ACTUAL DAMAGES. THE COURT MAY
ENJOIN THE RESPONDENT FROM ANY AND ALL ACTIVITY PROHIBITED UNDER THIS
SECTION. THE COURT MAY ALSO AWARD REASONABLE ATTORNEY'S FEES AND COSTS.
ANY PENALTY OR RECOVERY AUTHORIZED BY THIS SECTION MAY BE RECOVERED IN A
CLASS ACTION.
S 8. This act shall take effect immediately; provided that the amend-
ments to section 25.03 of the arts and cultural affairs law, made by
section one of this act, shall be subject to the expiration and rever-
sion of such section pursuant to section 4 of chapter 704 of the laws of
1991, as amended, when upon such date the provisions of section two of
this act shall take effect; provided further that the amendments to
section 25.15 of the arts and cultural affairs law made by section four
of this act shall not affect the expiration and reversion of such
section and shall expire and be deemed repealed therewith; provided
further, that the amendments to section 25.30 of the arts and cultural
affairs law, made by section six of this act, shall not affect the
repeal of such section and shall be deemed repealed therewith; and
provided further that section 25.24 of the arts and cultural affairs
law, as added by section seven of this act, shall survive the expiration
and reversion of article 25 of such law as provided in section 4 of
chapter 704 of the laws of 1991, as amended.
