S T A T E O F N E W Y O R K
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10769--A
I N A S S E M B L Y
April 20, 2010
___________
Introduced by M. of A. ENGLEBRIGHT, ZEBROWSKI -- read once and referred
to the Committee on Tourism, Parks, Arts and Sports Development --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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.
LBD16830-06-0
A. 10769--A 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] TRUST ACCOUNT. The secretary of state shall require
the applicant for a license, OR UPON RENEWAL, to file with the applica-
tion 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 BEAR-
ING TRUST ACCOUNT IN THE MINIMUM AMOUNT of twenty-five thousand dollars,
[with two or more sufficient sureties or a duly authorized surety compa-
ny, 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 SHOW-
ING 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,
misrepresentation, 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 recoveries or payments shall not exceed the penal sum thereof]
BEFORE THE SECRETARY SHALL DRAW UPON SUCH ACCOUNT, THE SECRETARY SHALL
ISSUE A DETERMINATION IN WRITING WHICH SHALL INCLUDE THE BASIS OF SUCH
ACTION. THE SECRETARY SHALL NOTIFY IN WRITING THE LICENSEE OF 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
A. 10769--A 3
SERVICE OF A DETERMINATION TO THE LICENSEE. SUCH WRITTEN NOTICE MAY BE
SERVED BY DELIVERY THEREOF PERSONALLY TO THE LICENSEE, OR BY CERTIFIED
MAIL TO THE LAST KNOWN BUSINESS ADDRESS OF SUCH LICENSEE. ONLY UPON SUCH
DETERMINATION OF THE SECRETARY SHALL MONEYS BE WITHDRAWN FROM THE
ACCOUNT. 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 OF MORE THAN SIX THOUSAND
SEATS, OR SUCH OPERATOR'S AGENT, who 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
A. 10769--A 4
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) EMPLOY A FORM OF PAPERLESS TICKETING THAT IS NOT READILY TRANSFER-
ABLE TO ANOTHER CUSTOMER, UNLESS A PURCHASER IS GIVEN THE OPTION AT THE
TIME OF PUBLIC SALE TO PURCHASE SOME OTHER FORM OF TICKET THAT IS READI-
LY TRANSFERABLE, FOR WHICH THERE MAY BE A REASONABLE SURCHARGE IMPOSED
BY THE OPERATOR'S AGENT.
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 OF SIX THOUSAND SEATS
OR LESS OR SUCH OPERATOR'S AGENT FROM RESTRICTING THE RESALE OF TICKETS
WHICH ARE OFFERED AT A PROMOTIONAL OR DISCOUNTED PRICE, FOR FREE, OR FOR
PERSONS WITH DISABILITIES. 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 operator 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
TO PURCHASE TICKETS IN EXCESS OF THE AMOUNTS PERMITTED BY THE RETAILER,
ARTIST OR VENUES PER TRANSACTION.
2. IT SHALL BE UNLAWFUL FOR ANY PERSON TO UTILIZE AUTOMATED TICKET
PURCHASING SOFTWARE.
3. ANY PERSON WHO KNOWINGLY UTILIZES AUTOMATED TICKET PURCHASING SOFT-
WARE IN ORDER TO BYPASS SECURITY MEASURES TO PURCHASE 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 MORE
THAN ONE THOUSAND DOLLARS FOR EACH SUCH VIOLATION AND SHALL FORFEIT ALL
PROFITS MADE FROM THE SALE OF ANY SUCH UNLAWFULLY OBTAINED TICKETS.
A. 10769--A 5
4. ANY PERSON WHO INTENTIONALLY MAINTAINS ANY INTEREST IN OR MAINTAINS
ANY CONTROL OF THE OPERATION OF AUTOMATED TICKET PURCHASING SOFTWARE TO
BYPASS SECURITY MEASURES TO PURCHASE 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.
5. 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.
6. 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.
7. 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.