Bill Text: NY A01534 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to resale of tickets to places of entertainment; provides for the regulation of boxing and wrestling relating to tickets to places of entertainment.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2020-01-08 - referred to tourism, parks, arts and sports development [A01534 Detail]
Download: New_York-2019-A01534-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1534 2019-2020 Regular Sessions IN ASSEMBLY January 15, 2019 ___________ Introduced by M. of A. ABINANTI, PRETLOW, JAFFEE, GALEF, COLTON, GUNTHER, MOSLEY, STECK, GOTTFRIED, CAHILL -- Multi-Sponsored by -- M. of A. COOK, SIMON -- read once and referred to the Committee on Tour- ism, Parks, Arts and Sports Development AN ACT to amend the arts and cultural affairs law, in relation to resale of tickets to places of entertainment; and to repeal article 25 of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Article 25 of the arts and cultural affairs law is REPEALED 2 and a new article 25 is added to read as follows: 3 ARTICLE 25 4 TICKETS TO PLACES OF ENTERTAINMENT 5 Section 25.01. Legislative findings. 6 25.03. Definitions. 7 25.05. Ticket speculators. 8 25.07. Ticket prices. 9 25.09. Additional printing on tickets. 10 25.11. Resales of tickets within buffer zone. 11 25.13. Licensing of ticket resellers. 12 25.15. Bond. 13 25.17. Supervision and regulation. 14 25.19. Posting of license or certificate. 15 25.21. Change of office location. 16 25.23. Posting of price lists; information to purchaser. 17 25.24. Automated ticket purchasing software. 18 25.25. Records of purchases and sales. 19 25.27. Commissions to employees of places of entertainment. 20 25.29. Unlawful charges in connection with tickets. 21 25.30. Operator prohibitions. 22 25.31. Suspension or revocation of licenses. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04994-01-9A. 1534 2 1 25.33. Enforcement. 2 25.35. Criminal penalties. 3 § 25.01. Legislative findings. The legislature finds and declares that 4 transactions involving tickets for admission to places of entertainment 5 are a matter of public interest and subject to the supervision of New 6 York and the appropriate political subdivisions of the state for the 7 purpose of safeguarding the public against fraud, extortion, and similar 8 abuses. 9 The legislature further finds that many ticket resellers advertise and 10 sell tickets to places of entertainment within the boundaries of New 11 York state often from locations outside the state, without adhering to 12 the provisions of this article. The legislature objects to any claim 13 that businesses domiciled outside New York state are exempted from this 14 statute when selling tickets to events occurring in New York state, 15 regardless of the territories of origin of both the buyer and seller. It 16 is the legislature's intent that all governmental bodies charged with 17 enforcement of this article, including the attorney general of New York 18 state have the authority to regulate the activities of all persons 19 reselling tickets to venues located within this state to the full extent 20 of the state's powers under the federal and state constitutions and that 21 this article be construed in light of this purpose. 22 § 25.03. Definitions. As used in this article the term: 23 1. "Entertainment" means all forms of entertainment including, but not 24 limited to, theatrical or operatic performances, concerts, motion 25 pictures, all forms of entertainment at fair grounds, amusement parks 26 and all types of athletic competitions including football, basketball, 27 baseball, boxing, tennis, hockey, and any other sport, and all other 28 forms of diversion, recreation or show. 29 2. "Established price" means the price fixed at the time of sale by 30 the operator of any place of entertainment for admission thereto, which 31 must be printed or endorsed on each ticket of admission. 32 3. "Maximum premium price" means any premium or price in excess of the 33 established price printed or endorsed on the ticket pursuant to section 34 25.07 of this article, plus lawful taxes, so that the ultimate price of 35 the purchase of any such ticket to a place of entertainment shall not 36 exceed the sum of the established price plus twenty percent of the 37 established price. 38 4. "Not-for-profit organization" means a domestic corporation incorpo- 39 rated pursuant to or otherwise subject to the not-for-profit corporation 40 law, a charitable organization registered with the department of law, a 41 religious corporation as defined in section sixty-six of the general 42 construction law, a trustee as defined in section 8-1.4 of the estates, 43 powers and trusts law, an institution or corporation formed pursuant to 44 the education law, a special act corporation created pursuant to chapter 45 four hundred sixty-eight of the laws of eighteen hundred ninety-nine, as 46 amended, a special act corporation formed pursuant to chapter two 47 hundred fifty-six of the laws of nineteen hundred seventeen, as amended, 48 a corporation authorized pursuant to an act of congress approved January 49 fifth, nineteen hundred five, (33 stat. 599), as amended, a corporation 50 established by merger of charitable organizations pursuant to an order 51 of the supreme court, New York county dated July twenty-first, nineteen 52 hundred eighty-six and filed in the department of state on July twenty- 53 ninth, nineteen hundred eighty-six, or a corporation having tax exempt 54 status under section 501 (c) (3) of the United States Internal Revenue 55 Code, and shall further be deemed to mean and include any federation of 56 charitable organizations.A. 1534 3 1 5. "Operator" means any person who owns, operates, or controls a place 2 of entertainment or who promotes or produces an entertainment. 3 6. "Place of entertainment" means any privately or publicly owned and 4 operated entertainment facility such as a theatre, stadium, arena, race- 5 track, museum, amusement park, or other place where performances, 6 concerts, exhibits, athletic games or contests are held for which an 7 entry fee is charged. 8 7. "Physical structure" means the place of entertainment, or in the 9 case where a structure either partially or wholly surrounds the place of 10 entertainment, such surrounding structure. 11 8. "Resale" means any sale of a ticket for entrance to a place of 12 entertainment located within the boundaries of the state of New York 13 other than a sale by the operator or the operator's agent who is 14 expressly authorized to make first sales of such tickets. Resale shall 15 include sales by any means, including in person, or by means of tele- 16 phone, mail, delivery service, facsimile, internet, email or other elec- 17 tronic means, where the venue for which the ticket grants admission is 18 located in New York state. Except as provided in sections 25.11 and 19 25.27 of this article, the term "resale" shall not apply to any person, 20 firm or corporation which purchases any tickets solely for their own use 21 or the use of their invitees, employees and agents or which purchases 22 tickets on behalf of others and resells such tickets to such invitees, 23 employees and agents or others at or less than the established price. 24 Similarly, the term "resale" shall not apply to any not-for-profit 25 organization, or person acting on behalf of such not-for-profit organ- 26 ization, as long as any profit realized from ticket reselling is wholly 27 dedicated to the purposes of such not-for-profit organization. 28 9. "Ticket" means any evidence of the right of entry to any place of 29 entertainment. 30 10. "Ticket office" means a building or other structure located other 31 than at the place of entertainment, at which the operator or the opera- 32 tor's agent offers tickets for first sale to the public. 33 § 25.05. Ticket speculators. Any person who: 34 1. Conducts on or in any street in a city or in the county of Nassau 35 the business of selling or offering for sale any ticket of admission or 36 any other evidence of the right of entry to any performance or exhibi- 37 tion in or about the premises of any theatre or concert hall, place of 38 public amusement, circus or common show; or 39 2. Solicits on or in any street in a city or in the county of Nassau 40 by words, signs, circulars or other means any person to purchase any 41 such ticket or other evidence of the right of entry; or 42 3. In or from any building, store, shop, booth, yard, garden or in or 43 from any opening, window, door, hallway, corridor or in or from any 44 place of ingress or egress to or from any building, place of business, 45 store, shop, booth, yard or garden in a city or in the county of Nassau 46 indicates, holds out or offers for sale to any person or persons on or 47 in the street by word of mouth, crying, calling, shouting or other means 48 that such ticket or other evidence of the right of entry may be 49 purchased in such building, store, shop, booth, yard, garden or any 50 other place; or 51 4. In or from any such place or places in a city or in the county of 52 Nassau solicits by word of mouth, crying, calling, shouting or other 53 means any person on or in the street to purchase any such ticket or 54 other evidence of the right of entry, is guilty of a misdemeanor. 55 § 25.07. Ticket prices. 1. Every operator of a place of entertainment 56 shall, if a price be charged for admission thereto, print or endorse onA. 1534 4 1 the face of each such ticket the established price. Such operator shall 2 likewise be required to print or endorse on each ticket the maximum 3 premium price at which such ticket or other evidence of the right of 4 entry may be resold or offered for resale. It shall be unlawful for any 5 person, firm or corporation to resell or offer to resell any ticket to 6 any place of entertainment for more than the maximum premium price. 7 2. Notwithstanding any other provision of law, any person, firm or 8 corporation, regardless of whether or not licensed under this article, 9 that resells tickets or facilitates the resale or resale auction of 10 tickets between independent parties by any means, must guarantee to each 11 purchaser of such resold tickets that the person, firm or corporation 12 will provide a full refund of the amount paid by the purchaser (includ- 13 ing, but not limited to, all fees, regardless of how characterized) if 14 any of the following occurs: (a) the event for which such ticket has 15 been resold is cancelled, provided that if the event is cancelled then 16 actual handling and delivery fees need not be refunded as long as such 17 previously disclosed guarantee specifies that such fees will not be 18 refunded; (b) the ticket received by the purchaser does not grant the 19 purchaser admission to the event described on the ticket, for reasons 20 that may include, without limitation, that the ticket is counterfeit or 21 that the ticket has been cancelled by the issuer due to non-payment, or 22 that the event described on the ticket was cancelled for any reason 23 prior to purchase of the resold ticket, unless the ticket is cancelled 24 due to an act or omission by such purchaser; or (c) the ticket fails to 25 conform to its description as advertised unless the buyer has pre-ap- 26 proved a substitution of tickets. 27 3. Prior to the payment of a refund it shall be the obligation of the 28 seller and purchaser to first make a good faith effort to remedy any 29 disputes where the seller and purchaser have agreed to terms established 30 by the licensee or website manager for the disposition of disputes as a 31 condition to facilitate the transaction. 32 § 25.09. Additional printing on tickets. Every operator of a place of 33 entertainment having a permanent seating capacity in excess of five 34 thousand persons shall, if a price be charged for admission thereto, 35 print or endorse in a clear and legible manner on each ticket, "This 36 ticket may not be resold within one thousand five hundred feet from the 37 physical structure of this place of entertainment under penalty of law". 38 § 25.11. Resales of tickets within buffer zone. 1. No person, firm, 39 corporation or not-for-profit organization, whether or not domiciled, 40 licensed or registered within the state, shall resell, offer to resell 41 or solicit the resale of any ticket to any place of entertainment having 42 a permanent seating capacity in excess of five thousand persons within 43 one thousand five hundred feet from the physical structure of such place 44 of entertainment, or a ticket office. 45 2. No person, firm, corporation or not-for-profit organization, wheth- 46 er or not domiciled, licensed or registered within the state, shall 47 resell, offer to resell or solicit the resale of any ticket to any place 48 of entertainment having a permanent seating capacity of five thousand or 49 fewer persons within five hundred feet from the physical structure or 50 ticket office of such place of entertainment, provided however that 51 current licensees and those seeking a license under this article are 52 exempt from such buffer zone when operating out of a permanent physical 53 structure. 54 3. Notwithstanding subdivisions one and two of this section, an opera- 55 tor may designate an area within the property line of such place of 56 entertainment for the lawful resale of tickets only to events at suchA. 1534 5 1 place of entertainment by any person, firm, corporation or not-for-pro- 2 fit organization, whether or not domiciled, licensed or registered with- 3 in the state. 4 4. For purposes of this section, "ticket office" means a building or 5 other structure located other than at the place of entertainment, at 6 which the operator or the operator's agent offers tickets for first sale 7 to the public. 8 § 25.13. Licensing of ticket resellers. 1. No person, firm or corpo- 9 ration shall resell or engage in the business of reselling any tickets 10 to a place of entertainment or operate an internet website or any other 11 electronic service that provides a mechanism for two or more parties to 12 participate in a resale transaction or that facilitates resale trans- 13 actions by the means of an auction, or own, conduct or maintain any 14 office, branch office, bureau, agency or sub-agency for such business 15 without having first procured a license or certificate for each location 16 at which business will be conducted from the secretary of state. Any 17 operator or manager of a website that serves as a platform to facilitate 18 resale, or resale by way of a competitive bidding process, solely 19 between third parties and does not in any other manner engage in resales 20 of tickets to places of entertainment shall be exempt from the licensing 21 requirements of this section. The department of state shall issue and 22 deliver to such applicant a certificate or license to conduct such busi- 23 ness and to own, conduct or maintain a bureau, agency, sub-agency, 24 office or branch office for the conduct of such business on the premises 25 stated in such application upon the payment by or on behalf of the 26 applicant of a fee of five thousand dollars and shall be renewed upon 27 the payment of a like fee annually. Such license or certificate shall 28 not be transferred or assigned, except by permission of the secretary of 29 state. Such license or certificate shall run to the first day of January 30 next ensuing the date thereof, unless sooner revoked by the secretary of 31 state. Such license or certificate shall be granted upon a written 32 application setting forth such information as the secretary of state may 33 require in order to enable him or her to carry into effect the 34 provisions of this article and shall be accompanied by proof satisfac- 35 tory to the secretary of state of the moral character of the applicant. 36 2. No operator's agent shall sell or convey tickets to any secondary 37 ticket reseller owned or controlled by the operator's agent. 38 2-a. No ticket seller shall resell any ticket during the first forty- 39 eight hours after such ticket is first available for primary sale; 40 provided that such restriction shall not apply with respect to season 41 tickets or bundled series tickets. No ticket seller shall sell or resell 42 any ticket that such seller does not own at the time of the offer or 43 sale. The provisions of this subdivision shall not apply to venues 44 containing less than six thousand seats. 45 3. The operator or the promoter shall determine whether a seat for 46 which a ticket is for sale has an obstructed view, and shall disclose 47 such obstruction. Every sale or resale of such ticket shall include a 48 disclosure of such obstructed view. 49 4. If any licensee under this section demonstrates that their business 50 provides a service to facilitate ticket transactions without charging 51 any fees, surcharges or service charges above the established price, on 52 every transaction, except a reasonable and actual charge for the deliv- 53 ery of tickets, then the fees for licensing under this section shall be 54 waived. 55 § 25.15. Bond. The secretary of state shall require the applicant for 56 a license to file with the application therefor a bond in due form toA. 1534 6 1 the people of New York in the penal sum of twenty-five thousand dollars, 2 with two or more sufficient sureties or a duly authorized surety compa- 3 ny, which bond shall be approved by the secretary of state. Each such 4 bond shall be conditioned that the obligor will not be guilty of any 5 fraud or extortion, will not violate directly or indirectly any of the 6 provisions of this article or any of the provisions of the license or 7 certificate provided for in this article, will comply with the 8 provisions of this article and will pay all damages occasioned to any 9 person by reason of any misstatement, misrepresentation, fraud or deceit 10 or any unlawful act or omission of such obligor, his or her agents or 11 employees, while acting within the scope of their employment, made, 12 committed or omitted in connection with the provisions of this article 13 in the business conducted under such license or caused by any other 14 violation of this article in carrying on the business for which such 15 license is granted. One or more recoveries or payments upon such bond 16 shall not vitiate the same but such bond shall remain in full force and 17 effect, provided, however, that the aggregate amount of all such recov- 18 eries or payments shall not exceed the penal sum thereof. Before the 19 secretary shall draw upon such bond, the secretary shall issue a deter- 20 mination in writing which shall include the basis of such action. The 21 secretary shall notify in writing the licensee of any such determination 22 and shall afford the licensee an opportunity to respond within twenty 23 days of the receipt of such determination. In no event may the bond be 24 drawn upon in less than twenty-five days after the service of a determi- 25 nation to the licensee. Such written notice may be served by delivery 26 thereof personally to the licensee, or by certified mail to the last 27 known business address of such licensee. Only upon such determination of 28 the secretary shall moneys be withdrawn from the bond. Upon the 29 commencement of any action or actions against the surety upon any such 30 bond for a sum or sums aggregating or exceeding the amount of such bond 31 the secretary of state shall require a new and additional bond in like 32 amount as the original one, which shall be filed with the department of 33 state within thirty days after the demand therefor. Failure to file 34 such bond within such period shall constitute cause for the revocation 35 of the license pursuant to section 25.31 of this article theretofore 36 issued to the licensee upon whom such demand shall have been made. Any 37 suit or action against the surety on any bond required by the provisions 38 of this section shall be commenced within one year after the cause of 39 action shall have accrued. 40 § 25.17. Supervision and regulation. The secretary of state shall have 41 power, upon complaint of any person or on his or her own initiative, to 42 investigate the business, business practices and business methods of any 43 such licensee which relates to this state's or any other state's ticket 44 resale law, or in regards to ticket resale practices generally. Each 45 such licensee shall be obliged, on the reasonable request of the secre- 46 tary of state, to supply such information as may be required concerning 47 his or her business, business practices or business methods provided 48 that the information requested is related to the complaint which forms 49 the basis of such investigation. Each operator of any place of enter- 50 tainment shall also be obliged, on request of the secretary of state, to 51 supply such information as may be required concerning the business, 52 business practices or business methods of any licensee provided that the 53 information requested is related to the complaint which forms the basis 54 of such investigation. The secretary of state shall have the power to 55 promulgate such rules and regulations as may be deemed necessary for the 56 enforcement of this article.A. 1534 7 1 § 25.19. Posting of license or certificate. Immediately upon the 2 receipt of the license or certificate issued pursuant to this article by 3 the secretary of state, the licensee named therein shall cause such 4 license to be posted and at all times displayed in a conspicuous place 5 in the principal office of such business for which it is issued, and 6 shall cause the certificate for each branch office, bureau, agency or 7 sub-agency to be posted and at all times displayed in a conspicuous 8 place in such branch office, bureau, agency or sub-agency for which it 9 is issued, so that all persons visiting such principal office, branch 10 office, bureau, agency or sub-agency may readily see the same, and if 11 such licensee does business on the internet, to provide a hyperlink 12 displayed in a conspicuous manner to a scanned copy of such license. 13 Such license or certificate shall at all reasonable times be subject to 14 inspection by the secretary of state or his or her authorized inspec- 15 tors. It shall be unlawful for any person, firm, partnership or corpo- 16 ration holding such license or certificate to post such license or 17 certificate or to permit such certificate to be posted upon premises 18 other than those described therein or to which it has been transferred 19 pursuant to the provisions of this article or unlawfully to alter, 20 deface or destroy any such license or certificate. 21 § 25.21. Change of office location. In the event of a change in the 22 location of the premises covered by license or certificate issued under 23 this article, the department of state shall be duly notified in writing 24 of such change within twenty-four hours thereafter. The secretary of 25 state shall cause to be written or stamped across the face of such 26 license or certificate a statement to the effect that the holder of such 27 license has removed on the date stated in such written notice such prin- 28 cipal office, branch office, bureau, agency or sub-agency from the place 29 originally described in such license or certificate to the place 30 described in such written notice, and such license or certificate with 31 the endorsement thereon shall be returned to the licensee named therein. 32 No tickets shall be sold at any place other than places for which a 33 license or certificate provided for by this article has been issued and 34 posted. 35 § 25.23. Posting of price lists; information to purchaser. 1. In 36 every principal office or branch office, bureau, agency or sub-agency of 37 any licensee under this article, there shall be conspicuously posted and 38 at all times displayed a price list showing the established price 39 charged by the operator of the place of entertainment for which a ticket 40 is being sold by such licensee, together with the price being charged by 41 such licensee for the resale of such ticket, so that all persons visit- 42 ing such place may readily see the same. The licensee shall also on 43 request furnish each purchaser of a ticket with a receipt showing the 44 same information. Further, if the licensee conducts business through the 45 use of the internet, the same price list, or hyperlink to the same, 46 shall be conspicuously displayed on the internet page on which tickets 47 are accessed. In addition the licensee shall publish in a conspicuous 48 place, or hyperlink to on the internet a statement clearly detailing the 49 required guarantees required by section 25.07 of this article. 50 2. (a) An online resale marketplace shall post a clear and conspicuous 51 notice on the website of such online resale marketplace that the website 52 is for the secondary sale of tickets and shall require that the user 53 confirm having read such notice before starting any transaction. No 54 operator or its agent shall transfer a prospective ticket purchaser 55 through any means to a secondary seller without providing a clear and 56 conspicuous disclosure appropriate for the selling platform that informsA. 1534 8 1 the prospective purchaser that the ticket offered is in the secondary 2 market. 3 (b) No operator or operator's agent or any person who is employed by 4 such operator or operator's agent shall resell or engage in the business 5 of reselling any tickets of admission or any other evidence of the right 6 of entry to a theatre, place of amusement or entertainment, or other 7 places where public exhibitions, games, contests or performances are 8 held. The provisions of this paragraph shall not apply to donations made 9 by the operator or operator's agent, when there is no compensation 10 provided, to individuals or charitable organizations where the tickets 11 are for personal use or charitable purposes. 12 § 25.24. Automated ticket purchasing software. 1. The term "automated 13 ticket purchasing software" shall mean, any machine, device, computer 14 program or computer software that navigates or runs automated tasks on 15 retail ticket purchasing websites in order to bypass security measures 16 to purchase tickets. 17 2. It shall be unlawful for any person to utilize automated ticket 18 purchasing software to purchase tickets. 19 3. Any person who knowingly utilizes automated ticket purchasing soft- 20 ware in order to bypass security measures to purchase tickets shall be 21 subject to a civil penalty in an amount of no less than five hundred 22 dollars and no more than one thousand dollars for each such violation 23 and shall forfeit all profits made from the sale of any such unlawfully 24 obtained tickets. 25 4. Any person who intentionally maintains any interest in or maintains 26 any control of the operation of automated ticket purchasing software to 27 bypass security measures to purchase tickets shall be subject to a civil 28 penalty in an amount of no less than seven hundred fifty dollars and no 29 more than one thousand five hundred dollars for each such violation and 30 shall forfeit all profits made from the sale of any such unlawfully 31 obtained tickets. 32 5. Any person who is subject to a civil penalty under this section and 33 has been assessed a penalty under this section in the previous five 34 years shall be guilty of a violation and may be fined no less than one 35 thousand dollars and no more than five thousand dollars for each such 36 violation and shall forfeit all profits from the sale of any such unlaw- 37 fully obtained tickets. In addition, a person convicted of a violation 38 under this section may be required to forfeit any and all equipment used 39 in the unlawful purchasing of tickets. 40 6. The attorney general shall have jurisdiction to enforce the 41 provisions of this section in accordance with the powers granted to him 42 or her by section sixty-three of the executive law. 43 7. In addition to the power given to the attorney general to enforce 44 the provisions of this section, any place of entertainment, as defined 45 by section 23.03 of this chapter, or any aggrieved party that has been 46 injured by wrongful conduct prescribed by this section may bring an 47 action to recover all actual damages suffered as a result of any of such 48 wrongful conduct. The court in its discretion may award damages up to 49 three times the amount of actual damages. The court may enjoin the 50 respondent from any and all activity prohibited under this section. The 51 court may also award reasonable attorney's fees and costs. Any penalty 52 or recovery authorized by this section may be recovered in a class 53 action. 54 § 25.25. Records of purchases and sales. 1. Every licensee shall at 55 all times keep full and accurate sets of records showing: (a) the prices 56 at which all tickets have been bought and sold by such licensee; and (b)A. 1534 9 1 the names and addresses of the person, firm or corporation from whom 2 they were bought. Operators offering for initial sale tickets by means 3 of an auction shall maintain a record of the price when known and the 4 number of tickets and types of seats offered through auction. These 5 records shall be made available upon request to the state attorney 6 general, the secretary of state, or other governmental body with the 7 express authority to enforce any section of this article; provided, 8 however, that the records required to be maintained by this section 9 shall be considered proprietary in nature and shall be governed by the 10 protections set forth in subdivision five of section eighty-nine of the 11 public officers law. These records shall be retained for a period of not 12 less than ten years. 13 2. Twice annually, on June thirtieth and December thirty-first, every 14 licensee that resells tickets or facilitates the resale or resale 15 auction of tickets between independent parties by any and all means 16 shall report to the department of state the total number of, and average 17 resale or average final resale auction price of, all tickets to each 18 ticketed event, provided, however, that repeat performances of a single 19 event, and multiple events that are part of a season-long performance 20 shall be treated as a single event for the purposes of the reporting 21 requirement of this subdivision. The information required to be reported 22 by this section shall be considered proprietary in nature and shall be 23 governed by the protections set forth in subdivision five of section 24 eighty-nine of the public officers law, and shall be used exclusively 25 for analytical purposes by the consumer protection board. 26 3. Every operator of a place of entertainment shall make public the 27 percentage of tickets to a place of entertainment that will be made 28 available to the public. At the time of the initial sale of tickets, the 29 operator shall make public the total number and locations of tickets, 30 and the percentage of tickets sold at such initial public sale. 31 § 25.27. Commissions to employees of places of entertainment. No 32 licensee, other person or entity, whether or not domiciled, licensed or 33 registered within the state, shall pay to any officer or employee of any 34 place of entertainment, any commission, gratuity or bonus in connection 35 with the sale, delivery or payment of tickets or in connection with the 36 business being done by such licensee, other person or entity, whether or 37 not domiciled, licensed or registered within the state, in tickets of 38 admission to such place. 39 § 25.29. Unlawful charges in connection with tickets. 1. No operator 40 of any place of entertainment, or his or her agent, representative, 41 employee or licensee shall, if a price be charged for admission thereto, 42 exact, demand, accept or receive, directly or indirectly, any premium or 43 price in excess of the established price plus lawful taxes whether 44 designated as price, gratuity or otherwise; provided, however: (a) noth- 45 ing in this article shall be construed to prohibit a reasonable service 46 charge by the operator or agents of the operator for special services, 47 including but not limited to, sales away from the box office, credit 48 card sales or delivery; and (b) nothing in this article shall be 49 construed to prohibit an operator or its agent from offering for initial 50 sale tickets by means of an auction. 51 2. In any prosecution under this section the attorney general shall 52 have concurrent jurisdiction with any district attorney and in any such 53 prosecution he or she or his or her deputy shall exercise all the powers 54 and perform all the duties which the district attorney would otherwise 55 be authorized to exercise or perform therein.A. 1534 10 1 § 25.30. Operator prohibitions. 1. A ticket is a license, issued by 2 the operator of a place of entertainment, for admission to the place of 3 entertainment at the date and time specified on the ticket, subject to 4 the terms and conditions as specified by the operator. Notwithstanding 5 any other provision of law to the contrary, it shall be prohibited for 6 any operator of a place of entertainment, or operator's agent, to: 7 (a) restrict by any means the resale of any tickets included in a 8 subscription or season ticket package as a condition of purchase, as a 9 condition to retain such tickets for the duration of the subscription or 10 season ticket package agreement, or as a condition to retain any 11 contractually agreed upon rights to purchase future subscription or 12 season ticket packages that are otherwise conferred in the subscription 13 or season ticket agreement; 14 (b) deny access to a ticket holder who possesses a resold subscription 15 or season ticket to a performance based solely on the grounds that such 16 ticket has been resold; or 17 (c) employ a form of paperless ticketing that is not readily transfer- 18 able to another customer through a transaction that is independent of 19 the operator or operator's agent, unless a purchaser is given the option 20 at the time of first public sale to purchase the same tickets at the 21 same established price in some other form, including, but not limited 22 to, paper tickets, that is readily transferable through a transaction 23 that is independent of the operator or operator's agent, provided howev- 24 er, that nothing in this paragraph shall prohibit the operator or opera- 25 tor's agent from imposing a nominal surcharge on paperless tickets. 26 2. Additionally, nothing in this article shall be construed to prohib- 27 it an operator of a place of entertainment from maintaining and enforc- 28 ing any policies regarding conduct or behavior at or in connection with 29 their venue. Further, nothing in this article shall be construed to 30 prohibit an operator of a place of entertainment of six thousand seats 31 or less, or such operator's agent, from restricting the resale of tick- 32 ets that are offered at a promotional or discounted price, for free, or 33 for persons with disabilities. An operator shall be permitted to revoke 34 or restrict season tickets for reasons relating to violations of venue 35 policies, including but not limited to, attempts by two or more persons 36 to gain admission to a single event with both the cancelled tickets 37 originally issued to a season ticket holder and those tickets re-issued 38 as part of a resale transaction, and to the extent the operator may deem 39 necessary for the protection of the safety of patrons or to address 40 fraud or misconduct. 41 3. No operator or operator's agent or any person who is employed by 42 such operator or operator's agent shall resell or engage in the business 43 of reselling any tickets of admission or any other evidence of the right 44 of entry to a theatre, place of amusement or entertainment, or other 45 places where public exhibitions, games, contests or performances are 46 held. This provision shall not apply to donations made by the operator 47 or operator's agent, when there is no compensation provided, to individ- 48 uals or charitable organizations where the tickets are for personal use 49 or charitable purposes. 50 4. The operator or the promoter shall determine whether a seat for 51 which a ticket is for sale has an obstructed view, and shall disclose 52 such obstruction. If the operator or promoter discloses that a seat for 53 which a ticket is for sale has an obstructed view, it shall be the 54 responsibility of the secondary ticket reseller to disclose such 55 obstruction upon the resale of such ticket. Such obstruction shall not 56 include an obstruction of view caused by a person, or persons, seated inA. 1534 11 1 an adjacent seat, or seats, or occupying an aisle; or an obstruction of 2 view caused by an object or objects placed upon an adjacent seat or 3 seats, or in an aisle; or an obstruction of view that is de minimus or 4 transitory in nature. 5 § 25.31. Suspension or revocation of licenses. 1. Powers of department 6 of state. The department of state may deny an application or may revoke 7 or suspend a license issued pursuant to this article, impose a fine not 8 exceeding one thousand dollars per violation payable to the department 9 of state, issue a reprimand and order restitution upon proof to the 10 satisfaction of the secretary of state that the holder thereof has: (a) 11 violated any provision of this article or any rule or regulation adopted 12 hereunder; (b) made a material misstatement in the application for such 13 license; (c) engaged in fraud or fraudulent practices; (d) demonstrated 14 untrustworthiness or incompetency; or (e) been convicted of a serious 15 offense or misdemeanor which, in the discretion of the secretary, bears 16 such a relationship to licensure as to constitute a bar to licensure or 17 renewal. 18 2. Determination of department of state. In the event that the depart- 19 ment of state shall revoke or suspend any such license, or impose any 20 fine or reprimand on the holder thereof, its determination shall be in 21 writing and officially signed. The original of such determination, when 22 so signed, shall be filed with the department of state and copies there- 23 of shall be served personally or by certified mail upon the licensee or 24 applicant and addressed to the principal place of business of such 25 licensee. 26 3. No license shall be suspended or revoked nor shall any fine or 27 reprimand be imposed, nor shall any application be denied, until after 28 an opportunity for a hearing had before an officer or employee of the 29 department of state designated for such purpose by the secretary of 30 state upon notice to the licensee or applicant of at least ten days. The 31 notice shall be served by certified mail and shall state the date and 32 place of hearing and set forth the ground or grounds constituting the 33 charges against the licensee or the reasons for the proposed denial of 34 the application. The licensee or applicant shall have the opportunity to 35 be heard in his or her defense either in person or by counsel and may 36 produce witnesses and testify on his or her behalf. A stenographic 37 record of the hearing shall be taken and preserved. The hearing may be 38 adjourned from time to time. The person conducting the hearing shall 39 make a written report of his or her findings and a recommendation to the 40 secretary of state for decision. The secretary of state shall review 41 such findings and the recommendation and, after due deliberation, shall 42 issue an order accepting, modifying or rejecting such recommendation and 43 dismissing the charges or suspending or revoking the license or imposing 44 a fine or reprimand upon the licensee. For the purpose of this article, 45 the secretary of state or any officer or employee of the department of 46 state designated by him or her, may administer oaths, take testimony, 47 subpoena witnesses and compel the production of books, papers, records 48 and documents deemed pertinent to the subject of investigation. 49 § 25.33. Enforcement. 1. The attorney general shall establish a toll- 50 free telephone number and accept through its website allegations from 51 the public of improper ticket acquisition, distribution or sales prac- 52 tices, including deceptive practices, corruption, fraud or irregular 53 practices with respect to ticket sales for events in New York state or 54 with respect to tickets sold to residents of the state. The attorney 55 general shall prominently display on its website information regarding 56 the hotline. The attorney general shall investigate as appropriate allA. 1534 12 1 credible allegations received regarding improper ticket acquisition, 2 distribution or sales practices. 3 2. Notwithstanding any right of action granted to any governmental 4 body pursuant to this chapter, any person who has been injured by reason 5 of a violation of this article may bring an action in his or her own 6 name to enjoin such unlawful act, an action to recover his or her actual 7 damages or fifty dollars, whichever is greater, or both such actions. 8 The court may award reasonable attorney's fees to a prevailing plain- 9 tiff. 10 § 25.35. Criminal penalties. 1. (a) Any person, firm, corporation or 11 other entity, whether or not domiciled, licensed or registered within 12 the state, which is convicted of violating section 25.27 or 25.29 of 13 this article shall be guilty of a class A misdemeanor punishable by a 14 fine not to exceed two thousand dollars or four times the amount of the 15 defendant's gain, to be determined pursuant to the procedures set forth 16 in section 400.30 of the criminal procedure law, whichever is greater, 17 or by a term of imprisonment not to exceed one year, or by both such 18 fine and imprisonment. 19 (b) Any person, firm, corporation or other entity, whether or not 20 domiciled, licensed, or registered within the state, which is convicted 21 of violating section 25.27 or 25.29 of this article, when the value of 22 the commission, gratuity, bonus, premium or price unlawfully paid or 23 accepted exceeds one thousand dollars for an event as defined in section 24 23.03 of this chapter, whether or not such payment is for tickets to a 25 single performance of that event, shall be guilty of a class E felony, 26 punishable by a term of imprisonment in accordance with the penal law, 27 or by a fine of ten thousand dollars or four times the amount of the 28 defendant's gain, to be determined pursuant to the procedures set forth 29 in section 400.30 of the criminal procedure law, whichever is greater, 30 or by both such fine and imprisonment. 31 2. Any person, firm or corporation which is convicted of violating 32 section 25.05 of this article shall be guilty of a misdemeanor punisha- 33 ble by a term of imprisonment not to exceed one year or by a fine not to 34 exceed one thousand five hundred dollars on the first conviction; three 35 thousand dollars on the second conviction; and four thousand dollars, on 36 each subsequent conviction or by both such fine and imprisonment. 37 3. Any person, firm or corporation which is convicted of knowingly 38 violating subdivision one of section 25.07 or section 25.13 or section 39 25.15 of this article shall be guilty of a misdemeanor punishable by a 40 term of imprisonment not to exceed one hundred eighty days or by a fine 41 not to exceed one thousand dollars on the first conviction; two thousand 42 dollars on the second conviction; and four thousand dollars on each 43 subsequent conviction or by both such fine and imprisonment. 44 4. Notwithstanding any other penalty which may be imposed for any 45 other violation of this article, any person, firm or corporation which 46 is convicted of violating section 25.11 of this article shall be guilty 47 of a violation punishable by a fine not to exceed four hundred dollars 48 on the first conviction; five hundred dollars on the second conviction; 49 and one thousand dollars on each subsequent conviction. 50 5. Any person, firm or corporation which is convicted of violating 51 section 25.05 of this article shall be guilty of a violation punishable 52 by a fine not to exceed one thousand dollars. 53 6. Any person, firm or corporation which is convicted of violating any 54 other section of this article shall be guilty of a violation punishable 55 by a fine not to exceed five hundred dollars.A. 1534 13 1 7. Notwithstanding any other provision to the contrary, when the fines 2 included in this section are imposed on a firm, corporation or other 3 entity that is not a single person, such fines may be imposed at up to 4 two times the amount otherwise allowed, or, where applicable, three 5 times the amount of the defendant's gain. 6 § 2. This act shall take effect immediately and shall be deemed to 7 have been in full force and effect on and after July 1, 2019.