Relates to resale of tickets to places of entertainment; repealer

Summary of provisions

Section 1 of the bill would repeal subdivision 3 of ACAL § 25.03 and a new subdivision 3.

Section 2 of the bill would amend ACAL § 25.03 to add a new subdivision (10).

Section 3 of the bill would amend Subdivision 1 of ACAL . 25.07, as amended by chapter 61 of the laws of 2007.

Section 4 of the bill would amend ACAL § 25.11 by adding a new subdivision 4.

Section 5 of the bill would amend ACAL § 25.11, as amended by chapter 61 of the laws of 2007, subdivision 3 as amended by chapter 374 of the laws of 2007.

Section 6 of the bill would amend ACAL § 25.13 by adding a new subdivision 2-a.

Section 7 of the bill would amend ACAL § 25.15, as amended by 13 chapter 374 of the laws of 2007.

Section 8 of the bill would amend § 4 of chapter 704 of the laws of 1991, amending the ACAL 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.

Section 9 of the bill would amend ACAL § 25.23, as amended by chapter 106 of the laws of 2005.

Section 10 of the bill would amend ACAL § Section 25.25, as amended by chapter 374 of the laws of 2007.

Section 11 of the bill would amend ACAL § 25.29, Subdivision 1, as amended by chapter 61 of the laws of 2007.

Section 12 of the bill would amend ACAL § 25.30, as added by chapter 61 of the laws of 2007.

Section 13 of the bill would amend ACAL § 25.33, as added by chapter 704 of the laws of 1991.

Section 14 of the bill would amend ACAL § 25.35, as added by 12 chapter 704 of the laws of 1991, subdivision 1 as amended by chapter 56 13 of the laws of2001, subdivisions 2,3,4,5 and 6, as amended by chapter 374 of the laws of2007.

Section 15 of the bill would amend ACAL by adding a new § 25.24.

Section 16 of the bill will establish when it shall take effect and when it shall expire.

Section 17 of the bill will make it effective immediately.

Existing law

The regulatory framework governing the sale and resale of tickets to places of entertainment is contained in Article 25 of the ACAL.

Statement in support

This legislation would extend the effectiveness of ACAL Article 25 for one year.

In addition, this legislation would enact new provisions to protect consumers:

* A price cap of 20% over the established primary market price would be set for those tickets resold on the secondary market. For both primary and secondary ticket sales, unrestricted resale creates upward pressure on pricing and greater potential for market manipulation; a 20% price cap would help in addressing this problem. * This legislation would extend new consumer protections on the primary market, by prohibiting venue operators and their agents from employing paperless ticketing systems that do not allow consumers to transfer their tickets independent of the operator or operator's agent, unless the operator offers the consumer a choice of purchasing independently transferrable tickets in another form. * Operators would be prohibited from charging higher prices based on the form (paperless or otherwise) of ticket a consumer selects, and would be allowed to assess only reasonable surcharges on other than paperless forms of tickets. * Further limits would be placed on operators by preventing them, or any of their agents, from engaging in the business of ticket resale on the secondary market. * This bill would require secondary sellers to clearly identify themselves on their website to prevent confusing and deceptive tactics such as unannounced website "pass-throughs." · The legislation would provide for a new reporting requirement for both primary and secondary ticket sellers that would enable the State to better determine the impact of the resale marketplace on consumers, as well as to study the purchasing trends of consumers. * The Attorney General's office would assume enforcement and regulation of the ticket resale industry through the creation of a toll free hotline to allow consumers to report instances of abuse and deception.

* For stronger deterrence, criminal penalties will be strengthened by doubling the fines currently established in Section 25.35 of the Arts and Cultural Affairs Law. * The consumer would be given priority in this legislation through the establishment of a short "cooling off' period after the initial release of tickets to the public during which the secondary market will be prohibited from selling tickets. This will guarantee the public an opportunity to purchase tickets without interference from the secondary market. * The bill will prohibit the use of automated ticket purchasing software, which presently is used by unscrupulous speculators to purchase tickets at initial sale ahead of consumers intending to attend an event. While the use of this software is typically banned by the policies of ticket issuers and venue operators, this statutory prohibition would allow the State to intervene to further protect consumers. * The bill would make permanent ACAL § 25.11, which relates to ticket office buffer zones.

Fiscal impact

None.

Effective date

This act would take effect immediately.