Senate Bill S838

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

                                   838

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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 limit-
  ing the re-sale price of tickets to charitable events and  criminaliz-
  ing violations of the limitation

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

  Section 1. The arts and cultural affairs law is amended  by  adding  a
new section 25.06 to read as follows:
  S  25.06. TICKET SPECULATORS; CHARITABLE OR NOT-FOR-PROFIT EVENTS.  1.
EVERY OPERATOR OF A PLACE OF ENTERTAINMENT SHALL, IF A PRICE BE  CHARGED
FOR   ADMISSION  THERETO  FOR  ENTERTAINMENT  DEDICATED  TO  CHARITY  OR
NOT-FOR-PROFIT CAUSE, 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.  EACH  SUCH
OPERATOR  SHALL ALSO BE REQUIRED TO PRINT OR ENDORSE ON EACH TICKET THAT
THE ESTABLISHED PRICE IS THE MAXIMUM PRICE AT WHICH SUCH TICKET OR OTHER
EVIDENCE OF THE RIGHT OF ENTRY MAY BE RESOLD OR OFFERED FOR RESALE IF AN
EVENT GENERATES TICKET SALES REVENUE DEDICATED TO A CHARITY OR  NOT-FOR-
PROFIT  CAUSE.  IT SHALL BE 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 AN EVENT GENERATES TICKET SALE
REVENUE DEDICATED TO A CHARITY OR NOT-FOR-PROFIT CAUSE FOR MORE THAN THE
ESTABLISHED PRICE.
  2. A. ANY PERSON, FIRM OR CORPORATION WHICH, IN VIOLATION OF  SUBDIVI-
SION  ONE  OF  THIS  SECTION, UNLAWFULLY RESELLS, OR OFFERS TO RESELL, A
TICKET TO AN EVENT THAT GENERATES TICKET SALE  REVENUE  DEDICATED  TO  A
CHARITY  OR  NOT-FOR-PROFIT  CAUSE  AT  A PRICE THAT EXCEEDS THE MAXIMUM
PRICE AT WHICH SUCH TICKET MAY BE RESOLD OR OFFERED FOR RESALE SHALL  BE

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

                                                           LBD05357-03-3

S. 838                              2

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  DOLLARS
ON THE FIRST CONVICTION; ONE THOUSAND FIVE HUNDRED DOLLARS ON THE SECOND
CONVICTION;  AND  TWO THOUSAND DOLLARS, ON EACH SUBSEQUENT CONVICTION OR
BY BOTH SUCH FINE AND IMPRISONMENT.
  B. NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY, WHEN THE FINES
INCLUDED IN THIS SECTION ARE IMPOSED ON A  FIRM,  CORPORATION  OR  OTHER
ENTITY  THAT  IS NOT A SINGLE PERSON, SUCH FINES MAY BE IMPOSED AT UP TO
TWO TIMES THE AMOUNT OTHERWISE  ALLOWED,  OR,  WHERE  APPLICABLE,  THREE
TIMES THE AMOUNT OF THE DEFENDANT'S GAIN.
  3.  AS USED IN THIS SECTION THE TERM: A. "ENTERTAINMENT DEDICATED TO A
CHARITY OR  NOT-FOR-PROFIT  CAUSE"  MEANS  ALL  FORMS  OF  ENTERTAINMENT
INCLUDING,  BUT  NOT  LIMITED  TO,  THEATRICAL OR OPERATIC PERFORMANCES,
CONCERTS, MOTION PICTURES, ALL FORMS OF ENTERTAINMENT AT  FAIR  GROUNDS,
AMUSEMENT  PARKS  AND ALL TYPES OF ATHLETIC COMPETITIONS INCLUDING FOOT-
BALL, BASKETBALL, BASEBALL, BOXING, TENNIS, HOCKEY, AND ANY OTHER SPORT,
AND ALL OTHER FORMS OF DIVERSION, RECREATION OR SHOW FROM WHICH  SIGNIF-
ICANT REVENUE IS DESIGNATED FOR A NOT-FOR-PROFIT ORGANIZATION AS DEFINED
IN PARAGRAPH D OF THIS SUBDIVISION; AND
  B.  "ESTABLISHED  PRICE"  MEANS THE PRICE FIXED AT THE TIME OF SALE BY
THE OPERATOR OF ANY PLACE OF ENTERTAINMENT FOR ADMISSION THERETO,  WHICH
MUST BE PRINTED OR ENDORSED ON EACH TICKET OF ADMISSION;
  C. "FINAL AUCTION PRICE" SHALL MEAN THE PRICE PAID FOR A SINGLE TICKET
BY  A  WINNING BIDDER. IN THE CASE OF A SINGLE ACTION PRICE FOR A TICKET
PACKAGE, INCLUDING PACKAGES CONTAINING TICKETS TO MULTIPLE  EVENTS,  THE
FINAL AUCTION PRICE PER TICKET SHALL BE ESTABLISHED BY EVENLY DIVIDING A
PRORATED  SHARE  OF  THE  WINNING  BID, WHICH SHALL BE DETERMINED BY THE
SELLER, BY THE NUMBER OF TICKETS TO SUCH EVENT;
  D. "NOT-FOR-PROFIT ORGANIZATION" MEANS A DOMESTIC CORPORATION INCORPO-
RATED PURSUANT TO OR OTHERWISE SUBJECT TO THE NOT-FOR-PROFIT CORPORATION
LAW, A CHARITABLE ORGANIZATION REGISTERED WITH THE DEPARTMENT OF LAW,  A
RELIGIOUS  CORPORATION  AS  DEFINED  IN SECTION SIXTY-SIX OF THE GENERAL
CONSTRUCTION LAW, A TRUSTEE AS DEFINED IN SECTION 8-1.4 OF THE  ESTATES,
POWERS  AND TRUSTS LAW, AN INSTITUTION OR CORPORATION FORMED PURSUANT TO
THE EDUCATION LAW, A SPECIAL ACT CORPORATION CREATED PURSUANT TO CHAPTER
FOUR HUNDRED SIXTY-EIGHT OF THE LAWS OF EIGHTEEN HUNDRED NINETY-NINE, AS
AMENDED, A SPECIAL  ACT  CORPORATION  FORMED  PURSUANT  TO  CHAPTER  TWO
HUNDRED FIFTY-SIX OF THE LAWS OF NINETEEN HUNDRED SEVENTEEN, AS AMENDED,
A CORPORATION AUTHORIZED PURSUANT TO AN ACT OF CONGRESS APPROVED JANUARY
FIFTH,  NINETEEN HUNDRED FIVE, (33 STAT. 599), AS AMENDED, A CORPORATION
ESTABLISHED BY MERGER OF CHARITABLE ORGANIZATIONS PURSUANT TO  AN  ORDER
OF  THE SUPREME COURT, NEW YORK COUNTY DATED JULY TWENTY-FIRST, NINETEEN
HUNDRED EIGHTY-SIX AND FILED IN THE DEPARTMENT OF STATE ON JULY  TWENTY-
NINTH,  NINETEEN  HUNDRED EIGHTY-SIX, OR A CORPORATION HAVING TAX EXEMPT
STATUS UNDER SECTION 501 (C) (3) OF THE UNITED STATES  INTERNAL  REVENUE
CODE,  AND SHALL FURTHER BE DEEMED TO MEAN AND INCLUDE ANY FEDERATION OF
CHARITABLE ORGANIZATIONS.
  E. "OPERATOR" MEANS ANY PERSON WHO OWNS, OPERATES, OR CONTROLS A PLACE
OF ENTERTAINMENT OR WHO PROMOTES OR PRODUCES AN ENTERTAINMENT;
  F. "PLACE OF ENTERTAINMENT" MEANS ANY PRIVATELY OR PUBLICLY OWNED  AND
OPERATED ENTERTAINMENT FACILITY SUCH AS A THEATRE, STADIUM, ARENA, RACE-
TRACK,  MUSEUM,  AMUSEMENT  PARK,  OR  OTHER  PLACE  WHERE PERFORMANCES,
CONCERTS, EXHIBITS, ATHLETIC GAMES OR CONTESTS ARE  HELD  FOR  WHICH  AN
ENTRY FEE IS CHARGED;
  G.  "RESALE"  MEANS  ANY  SALE  OF A TICKET FOR ENTRANCE TO A PLACE OF
ENTERTAINMENT LOCATED WITHIN THE BOUNDARIES OF THE  STATE  OF  NEW  YORK

S. 838                              3

OTHER  THAN  A  SALE  BY  THE  OPERATOR  OR  THE OPERATOR'S AGENT WHO IS
EXPRESSLY AUTHORIZED TO MAKE FIRST SALES OF SUCH TICKETS.  RESALE  SHALL
INCLUDE  SALES  BY  ANY MEANS, INCLUDING IN PERSON, OR BY MEANS OF TELE-
PHONE, MAIL, DELIVERY SERVICE, FACSIMILE, INTERNET, EMAIL OR OTHER ELEC-
TRONIC  MEANS,  WHERE THE VENUE FOR WHICH THE TICKET GRANTS ADMISSION IS
LOCATED IN NEW YORK STATE.  EXCEPT AS PROVIDED IN SECTION 25.11 OF  THIS
ARTICLE, THE TERM "RESALE" SHALL NOT APPLY TO ANY PERSON, FIRM OR CORPO-
RATION  WHICH  PURCHASES ANY TICKETS SOLELY FOR THEIR OWN USE OR THE USE
OF THEIR INVITEES, EMPLOYEES AND AGENTS OR WHICH  PURCHASES  TICKETS  ON
BEHALF  OF  OTHERS  AND RESELLS SUCH TICKETS TO SUCH INVITEES, EMPLOYEES
AND AGENTS OR OTHERS AT OR LESS THAN THE ESTABLISHED  PRICE.  SIMILARLY,
THE TERM "RESALE" SHALL NOT APPLY TO ANY NOT-FOR-PROFIT ORGANIZATION, OR
PERSON  ACTING ON BEHALF OF SUCH NOT-FOR-PROFIT ORGANIZATION, AS LONG AS
ANY PROFIT REALIZED FROM TICKET RESELLING IS  WHOLLY  DEDICATED  TO  THE
PURPOSES OF SUCH NOT-FOR-PROFIT ORGANIZATION; AND
  H.  "TICKET"  MEANS ANY EVIDENCE OF THE RIGHT OF ENTRY TO ANY PLACE OF
ENTERTAINMENT.
  S 2. This act shall take effect on the forty-fifth day after it  shall
have become a law.