Senate Bill S1848

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1848
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2017
                                ___________
 
 Introduced by Sens. SQUADRON, BRESLIN, HOYLMAN, LATIMER, PERKINS -- 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 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:
   §  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
 GUILTY OF A MISDEMEANOR PUNISHABLE BY A  TERM  OF  IMPRISONMENT  NOT  TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00529-01-7

 S. 1848                             2
 
 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
 OTHER THAN A SALE BY  THE  OPERATOR  OR  THE  OPERATOR'S  AGENT  WHO  IS

 S. 1848                             3

 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.
   § 2. This act shall take effect on the forty-fifth day after it  shall
 have become a law; provided, however, that section 25.06 of the arts and
 cultural affairs law, as added by section one 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.