S T A T E   O F   N E W   Y O R K
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                                  5525

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 14, 2009
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the arts and cultural affairs law, in  relation  to  the
  resale  of  tickets  to places of entertainment; and to repeal certain
  provisions of such law relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Section  25.01 of the arts and cultural affairs law, as
amended by chapter 61 of the  laws  of  2007,  is  amended  to  read  as
follows:
  S 25.01. Legislative findings. The legislature finds and declares that
transactions  involving tickets for admission to places of entertainment
are a matter of public interest and subject to the  supervision  of  New
York  and  the  appropriate  political subdivisions of the state for the
purpose of safeguarding the public against fraud, extortion,  EXORBITANT
RATES and similar abuses.
  The legislature further finds that many ticket resellers advertise and
sell  tickets  to  places  of entertainment within the boundaries of New
York state often from locations outside the state, without  adhering  to
the  provisions  of  this  article. The legislature objects to any claim
that businesses domiciled outside New York state are exempted from  this
statute  when  selling  tickets  to  events occurring in New York state,
regardless of the territories of origin of both the buyer and seller. It
is the legislature's intent that all governmental  bodies  charged  with
enforcement  of this article, including the attorney general of New York
state have the authority to  regulate  the  activities  of  all  persons
reselling tickets to venues located within this state to the full extent
of the state's powers under the federal and state constitutions and that
this article be construed in light of this purpose.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11879-01-9

              

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  THE  LEGISLATURE  FURTHER  FINDS THAT CIRCUMSTANCES OCCASIONALLY ARISE
THAT PRECLUDE THE USE OF TICKETS PURCHASED IN ADVANCE  AND  THAT  PEOPLE
NEED TO RECOVER THEIR EXPENSES. IT IS THE INTENT OF THE LEGISLATURE THAT
ENFORCEMENT  OF  THIS ARTICLE SHALL ALSO DIFFERENTIATE BETWEEN THOSE WHO
WOULD  LAWFULLY RECOVER THEIR EXPENSES AND THOSE WHO WOULD GAIN SUBSTAN-
TIAL PROFITS FROM UNLAWFUL RESELLING OF TICKETS.
  S 2. Subdivision 3 of section 25.03 of the arts and  cultural  affairs
law is REPEALED and a new subdivision 3 is added to read as follows:
  3. "MAXIMUM PREMIUM PRICE" MEANS ANY PREMIUM OR PRICE IN EXCESS OF THE
ESTABLISHED  PRICE PRINTED OR ENDORSED ON THE TICKET PURSUANT TO SECTION
25.07 OF THIS ARTICLE, PLUS LAWFUL TAXES, SO THAT THE ULTIMATE PRICE  TO
THE  PURCHASE  OF  ANY SUCH TICKET TO A PLACE OF ENTERTAINMENT SHALL NOT
EXCEED THE SUM OF THE ESTABLISHED PRICE PLUS TEN DOLLARS OR  TWENTY-FIVE
PERCENT  OF  THE  ESTABLISHED  PRICE,  WHICHEVER  IS GREATER PLUS LAWFUL
TAXES.
  S 3. The opening paragraph of subdivision 1 of section  25.03  of  the
arts  and  cultural  affairs  law  is designated paragraph (a) and a new
paragraph (b) is added to read as follows:
  (B) NO PRODUCER OR PROMOTER OF A FORM OF ENTERTAINMENT OR  ANYONE  WHO
IS  EMPLOYED  BY SUCH PRODUCER OR PROMOTER SHALL RESELL OR ENGAGE IN THE
BUSINESS OF RESELLING ANY TICKETS OF ADMISSION OR ANY OTHER EVIDENCE  OF
THE RIGHT OF ENTRY TO A THEATRE, PLACE OF AMUSEMENT OR ENTERTAINMENT, OR
OTHER  PLACES  WHERE PUBLIC EXHIBITIONS, GAMES, CONTESTS OR PERFORMANCES
ARE HELD. NOTHING IN THIS ARTICLE SHALL BAN A PRODUCER OR PROMOTER  FROM
RESELLING  TICKETS THAT HAVE BEEN PREVIOUSLY PURCHASED BY BONA FIDE NON-
ASSOCIATED INDIVIDUALS.
  S 4. Section 25.07 of the arts and cultural affairs law, as amended by
chapter 61 of the laws of 2007, is amended to read as follows:
  S 25.07. Ticket prices. 1. Every operator of a place of  entertainment
shall,  if a price be charged for admission thereto, print or endorse on
the face of each such  ticket  the  established  price[,  or  the  final
auction  price  if such ticket was sold or resold by auction through the
operator or its agent].   SUCH OPERATOR SHALL LIKEWISE  BE  REQUIRED  TO
PRINT  OR ENDORSE ON EACH TICKET THE MAXIMUM PREMIUM PRICE AT WHICH SUCH
TICKET OR OTHER EVIDENCE OF THE RIGHT OF ENTRY MAY BE RESOLD OR  OFFERED
FOR RESALE.
  2. MAXIMUM PREMIUM PRICE. IT SHALL BE UNLAWFUL FOR ANY PERSON, FIRM OR
CORPORATION  TO  RESELL  OR  OFFER  TO RESELL ANY TICKET TO ANY PLACE OF
ENTERTAINMENT FOR MORE THAN THE MAXIMUM PREMIUM PRICE.
  3. TICKETS TO ANY PLACE OF ENTERTAINMENT MAY NOT BE RESOLD  UNTIL  ONE
MONTH AFTER THE DATE OF THE INITIAL PURCHASE OF SUCH TICKET.
  4. EVERY OPERATOR OF A PLACE OF ENTERTAINMENT SHALL PRINT ON THE TICK-
ET ANY OBSTRUCTION OR LIMITATION THAT MAY EXIST.
  5.  EVERY  OPERATOR  OF A PLACE OF ENTERTAINMENT SHALL MAKE PUBLIC THE
PERCENTAGE OF TICKETS TO A PLACE OF  ENTERTAINMENT  THAT  WILL  BE  MADE
AVAILABLE TO THE PUBLIC. AT THE TIME OF THE INITIAL SALE OF TICKETS, THE
OPERATOR  SHALL  MAKE  PUBLIC THE TOTAL NUMBER AND LOCATIONS OF TICKETS,
AND THE PERCENTAGE OF TICKETS SOLD AT SUCH INITIAL PUBLIC SALE.
  [2.] 6. Notwithstanding any other provision of law, any  person,  firm
or  corporation,  regardless of whether or not licensed under this arti-
cle, that resells tickets or facilitates the resale or resale auction of
tickets between independent parties by any means, must guarantee to each
purchaser of such resold tickets that the person,  firm  or  corporation
will  provide a full refund of the amount paid by the purchaser (includ-
ing, but not limited to, all fees, regardless of how  characterized)  if
any  of  the  following  occurs: (a) the event for which such ticket has

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been resold is cancelled, provided that if the event is  cancelled  then
actual  handling  and delivery fees need not be refunded as long as such
previously disclosed guarantee specifies that  such  fees  will  not  be
refunded;  (b)  the  ticket received by the purchaser does not grant the
purchaser admission to the event described on the  ticket,  for  reasons
that  may include, without limitation, that the ticket is counterfeit or
that the ticket has been cancelled by the issuer due to non-payment,  or
that  the  event  described  on  the ticket was cancelled for any reason
prior to purchase of the resold ticket, unless the ticket  is  cancelled
due  to an act or omission by such purchaser; or (c) the ticket fails to
conform to its description as advertised unless the  buyer  has  pre-ap-
proved a substitution of tickets.
  [3.] 7. Prior to the payment of a refund it shall be the obligation of
the seller and purchaser to first make a good faith effort to remedy any
disputes where the seller and purchaser have agreed to terms established
by  the licensee or website manager for the disposition of disputes as a
condition to facilitate the transaction.
  8. TWICE A YEAR ANY PERSON, FIRM OR CORPORATION  LICENSED  UNDER  THIS
ARTICLE,  THAT  RESELLS  TICKETS  OR  FACILITATES  THE  RESALE OR RESALE
AUCTION OF TICKETS  BETWEEN  INDEPENDENT  PARTIES  BY  ANY  MEANS  SHALL
PUBLISH  AND  REPORT  THE  AVERAGE  TICKET  PRICE  FOR EACH EVENT TO THE
CONSUMER PROTECTION BOARD.
  S 5. Section 25.35 of the arts and cultural affairs law, as  added  by
chapter  704 of the laws of 1991, subdivision 1 as amended by chapter 56
of the laws of 2001 and subdivisions 2, 3, 4, 5  and  6  as  amended  by
chapter 374 of the laws of 2007, is amended to read as follows:
  S 25.35. Criminal  penalties.  1. (a) Any person, firm, corporation or
other entity, whether or not domiciled, licensed  or  registered  within
the  state,  which  is  convicted of violating section 25.27 or 25.29 of
this article shall be guilty of a class A misdemeanor  punishable  by  a
fine  not  to  exceed [one] TWO thousand dollars or [two] FOUR times the
amount of the defendant's gain, to be determined pursuant to the  proce-
dures  set forth in section 400.30 of the criminal procedure law, which-
ever is greater, or by a term of imprisonment not to exceed one year, or
by both such fine and imprisonment.
  (b) Any person, firm, corporation or  other  entity,  whether  or  not
domiciled,  licensed, or registered within the state, which is convicted
of violating section 25.27 or 25.29 of this article, when the  value  of
the  commission,  gratuity,  bonus,  premium or price unlawfully paid or
accepted exceeds one thousand dollars for an event as defined in section
23.03 of this chapter, whether or not such payment is for tickets  to  a
single  performance  of that event, shall be guilty of a class E felony,
punishable by a term of imprisonment in accordance with the  penal  law,
or  by  a  fine  of  [five] TEN thousand dollars or [two] FOUR times the
amount of the defendant's gain, to be determined pursuant to the  proce-
dures  set forth in section 400.30 of the criminal procedure law, which-
ever is greater, or by both such fine and imprisonment.
  2. Any person, firm or corporation which  is  convicted  of  violating
subdivision  two  of  section 25.09 of this article shall be guilty of a
misdemeanor punishable by a term of imprisonment not to exceed one  year
or  by  a  fine  not  to  exceed [seven hundred fifty] ONE THOUSAND FIVE
HUNDRED dollars on the first  conviction;  [one]  THREE  thousand  [five
hundred]  dollars  on  the  second  conviction;  and [two] FOUR thousand
dollars, on each subsequent conviction or by both such fine  and  impri-
sonment.

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  3.  Any  person,  firm  or corporation which is convicted of knowingly
violating subdivision one of section 25.07 or section 25.13  or  section
25.15  of  this article shall be guilty of a misdemeanor punishable by a
term of imprisonment not to exceed one hundred eighty days or by a  fine
not  to  exceed  [five  hundred]  ONE  THOUSAND  dollars  on  the  first
conviction; [one] TWO thousand dollars on  the  second  conviction;  and
[two]  FOUR  thousand  dollars  on each subsequent conviction or by both
such fine and imprisonment.
  4. Notwithstanding any other penalty which  may  be  imposed  for  any
other  violation  of this article, any person, firm or corporation which
is convicted of violating section 25.11 of this article shall be  guilty
of  a  violation  punishable  by a fine not to exceed [two] FOUR hundred
dollars on the first conviction; [five hundred] ONE THOUSAND dollars  on
the second conviction; and [one] TWO thousand dollars on each subsequent
conviction.
  5.  Any  person,  firm  or corporation which is convicted of violating
subdivision one of section 25.09 of this article shall be  guilty  of  a
violation punishable by a fine not to exceed [five hundred] ONE THOUSAND
dollars.
  6. Any person, firm or corporation which is convicted of violating any
other  section of this article shall be guilty of a violation punishable
by a fine not to exceed [two] FIVE hundred [fifty] dollars.
  S 6. This act shall take effect immediately; provided,  however,  that
the amendments to article 25 of title G of the arts and cultural affairs
law  made  by  sections one, two, three, four and five of this act shall
not affect the repeal and reversion of such article and shall expire and
be deemed repealed therewith.