S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5178
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 10, 2017
                                ___________
 
 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
   online resale of tickets to places of entertainment

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and  may  be  cited  as  the  "fans
 against inflated rates for tickets act".
   §  2. Section 25.03 of the arts and cultural affairs law is amended by
 adding a new subdivision 11 to read as follows:
   11. "ONLINE RESALE MARKETPLACE" MEANS ANY OPERATOR  OR  MANAGER  OF  A
 WEBSITE OR OTHER ELECTRONIC SERVICE THAT SERVES AS A PLATFORM TO FACILI-
 TATE  RESALE,  OR RESALE BY WAY OF A COMPETITIVE BIDDING PROCESS, SOLELY
 BETWEEN THIRD PARTIES AND DOES NOT IN ANY OTHER  MANNER  ENGAGE  IN  THE
 RESALE OF TICKETS TO PLACES OF ENTERTAINMENT.
   §  3.  The  arts  and  cultural affairs law is amended by adding a new
 section 25.06 to read as follows:
   § 25.06. THIRD PARTY SALES OF TICKETS ISSUED TO GENERATE  REVENUE  FOR
 CHARITABLE  PURPOSES.  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. 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10250-03-7

 S. 5178                             2
 
 EVENT  GENERATES  TICKET SALE REVENUE DEDICATED TO A CHARITY OR NOT-FOR-
 PROFIT CAUSE FOR MORE THAN THE ESTABLISHED PRICE OR IF  THE  TICKET  WAS
 INITIALLY OFFERED TO THE PUBLIC AT NO CHARGE.
   2.  (A) ANY PERSON, FIRM OR CORPORATION THAT, 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 OFFERS TO RESELL ANY TICKET
 OR OTHER EVIDENCE OF RIGHT OF ENTRY THAT WAS INITIALLY  OFFERED  TO  THE
 PUBLIC  AT  NO  CHARGE  SHALL BE GUILTY OF A MISDEMEANOR PUNISHABLE BY A
 TERM OF IMPRISONMENT NOT TO EXCEED ONE YEAR OR  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 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 "ENTERTAINMENT DEDICATED TO A
 CHARITY OR NOT-FOR-PROFIT CAUSE" SHALL MEAN 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.
   §  4. Section 25.07 of the arts and cultural affairs law is amended by
 adding a new subdivision 2-a to read as follows:
   2-A. ANY PERSON, FIRM  OR  CORPORATION  WHO  RESELLS  A  TICKET  SHALL
 PROVIDE  THE  PURCHASER  WITH  SUCH  TICKET RESELLER'S NAME, ADDRESS AND
 TELEPHONE NUMBER OR OTHER INFORMATION NECESSARY TO OBTAIN  A  REFUND  OF
 THE  TICKET  PRICE, IF NECESSARY. SUCH PERSON, FIRM OR CORPORATION SHALL
 DISCLOSE TO THE PURCHASER WHAT PORTION OF EACH TICKET PRICE, STATED IN A
 DOLLAR AMOUNT, WILL BE  COLLECTED  BY  THE  RESELLER  AND  WHETHER  SUCH
 RESELLER  IS  IN ANY WAY ACTING ON BEHALF OF THE OPERATOR ORGANIZING THE
 EVENT.
   § 5. Section 25.13 of the arts and cultural affairs law is amended  by
 adding a new subdivision 2-a to read as follows:
   2-A.  NO TICKET SELLER SHALL RESELL ANY TICKET DURING THE FIRST FORTY-
 EIGHT HOURS AFTER SUCH TICKET  IS  FIRST  AVAILABLE  FOR  PRIMARY  SALE;
 PROVIDED  THAT  SUCH  RESTRICTION SHALL NOT APPLY WITH RESPECT TO SEASON
 TICKETS OR BUNDLED SERIES TICKETS. NO TICKET SELLER SHALL SELL OR RESELL
 ANY TICKET THAT SUCH SELLER DOES NOT OWN AT THE TIME  OF  THE  OFFER  OR
 SALE.
   § 6. Section 25.23 of the arts and cultural affairs law, as amended by
 chapter 106 of the laws of 2005, is amended to read as follows:
   § 25.23. Posting  of  price  lists;  information to purchaser.   1. In
 every principal office or branch office, bureau, agency or sub-agency of
 any licensee under this article, there shall be conspicuously posted and
 at all times displayed  a  price  list  showing  the  established  price
 charged by the operator of the place of entertainment for which a ticket
 is being sold by such licensee, together with the price being charged by
 such  licensee for the resale of such ticket, so that all persons visit-
 ing such place may readily see the same.  The  licensee  shall  also  on
 request  furnish  each  purchaser of a ticket with a receipt showing the

 S. 5178                             3
 
 same information. Further, if the licensee conducts business through the
 use of the internet, the same price list,  or  hyperlink  to  the  same,
 shall  be  conspicuously displayed on the internet page on which tickets
 are  accessed.  In  addition the licensee shall publish in a conspicuous
 place, or hyperlink to on the internet a statement clearly detailing the
 required guarantees required by section 25.07 of this article.
   2. NO OPERATOR OR  ITS  AGENT  SHALL  TRANSFER  A  PROSPECTIVE  TICKET
 PURCHASER  THROUGH  ANY  MEANS TO A SECONDARY SELLER WITHOUT PROVIDING A
 CLEAR AND CONSPICUOUS DISCLOSURE THAT INFORMS THE PROSPECTIVE  PURCHASER
 THAT THE TICKET OFFERED IS IN THE SECONDARY MARKET.
   3.  AN  ONLINE  RESALE  MARKETPLACE SHALL POST A CLEAR AND CONSPICUOUS
 NOTICE ON THE WEBSITE THAT THE WEBSITE IS FOR THE SECONDARY  SALE  OF  A
 TICKET AND THAT THE PRICE OF SUCH TICKET OFFERED FOR SALE MAY EXCEED THE
 ESTABLISHED  PRICE  AND  THE REFUND POLICY OF THE PLATFORM IN CONNECTION
 WITH THE CANCELLATION OR POSTPONEMENT OF  AN  EVENT.  AN  ONLINE  RESALE
 MARKETPLACE  SHALL REQUIRE THAT THE USER CONFIRM HAVING READ SUCH NOTICE
 BEFORE STARTING ANY TRANSACTION.  AN  ONLINE  RESALE  MARKETPLACE  SHALL
 PROVIDE  LICENSEES  AND OTHERS THAT OFFER TO RESELL A TICKET THROUGH THE
 WEBSITE OR ELECTRONIC SERVICE THE CAPABILITY TO SUPPLY  THE  ESTABLISHED
 PRICE  CHARGED  BY  THE OPERATOR OF THE PLACE OF ENTERTAINMENT AND SHALL
 DISPLAY CONSPICUOUSLY SAID ESTABLISHED PRICE, OR HYPERLINK TO THE  SAME,
 ON THE WEBPAGE ON WHICH THE TICKET IS ACCESSED.
   4.  AN  ONLINE MARKETPLACE SHALL DISCLOSE CLEARLY AND CONSPICUOUSLY AT
 ALL TIMES ON ITS WEBSITE THE NUMBER OF TICKETS AVAILABLE  ON  THE  PLAT-
 FORM.
   §  7. Section 25.25 of the arts and cultural affairs law is amended by
 adding a new subdivision 3 to read as follows:
   3. 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 AND THE PERCENTAGE OF  TICKETS  BEING  ALLOCATED
 THROUGH  HOLDS, PRE-SALE EVENTS OR ANY OTHER MANNER THAT WITHHOLDS TICK-
 ETS FOR SALE TO THE PUBLIC.
   § 8. Section 25.29 of the arts and cultural affairs law, as amended by
 chapter 61 of the laws of 2007 and subdivision 1 as amended  by  chapter
 151 of the laws of 2010, is amended to read as follows:
   § 25.29. Unlawful  charges  in connection with tickets. 1. No operator
 of any place of entertainment, or  his  or  her  agent,  representative,
 employee or licensee shall, if a price be charged for admission thereto,
 exact, demand, accept or receive, directly or indirectly, any premium or
 price  in  excess  of  the  established  price plus lawful taxes whether
 designated as price, gratuity or otherwise; provided, however: (a) noth-
 ing in this article shall be construed to prohibit a reasonable  service
 charge  by  the operator or agents of the operator for special services,
 including but not limited to, sales away from  the  box  office,  credit
 card  sales  or  delivery;  and  (b)  nothing  in  this article shall be
 construed to prohibit an operator or its agent from offering for initial
 sale tickets by means of an auction.
   2. THE TOTAL PRICE OF THE TICKET  AND  WHAT  PORTION  OF  EACH  TICKET
 PRICE,  STATED IN A DOLLAR AMOUNT, REPRESENTS A SERVICE CHARGE, SHALL BE
 CONSPICUOUSLY DISCLOSED  IN  ANY  ADVERTISEMENT  OR  PROMOTION,  WHETHER
 DISPLAYED AT THE SITE OF THE EVENT OR ELSEWHERE.
   3. In any prosecution under SUBDIVISION ONE OF this section the attor-
 ney  general shall have concurrent jurisdiction with any district attor-
 ney and in any such prosecution he or she or his  or  her  deputy  shall
 exercise  all  the  powers and perform all the duties which the district
 attorney would otherwise be authorized to exercise or perform therein.

 S. 5178                             4
 
   § 9. Section 25.33 of the arts and cultural affairs law, as  added  by
 chapter 704 of the laws of 1991, is amended to read as follows:
   § 25.33. Private  right  of  action.  1.  Notwithstanding any right of
 action granted to any governmental body pursuant to  this  chapter,  any
 person who has been injured by reason of a violation of this article may
 bring  an  action in his or her own name to enjoin such unlawful act, an
 action to recover his or her actual damages or fifty dollars,  whichever
 is  greater, or both such actions. The court may award reasonable attor-
 ney's fees to a prevailing plaintiff.
   2. THE ATTORNEY GENERAL SHALL ESTABLISH A TOLL-FREE  TELEPHONE  NUMBER
 AND  ACCEPT  THROUGH ITS WEBSITE ALLEGATIONS FROM THE PUBLIC OF IMPROPER
 TICKET ACQUISITION, DISTRIBUTION OR SALES PRACTICES, INCLUDING DECEPTIVE
 PRACTICES, CORRUPTION, FRAUD OR  IRREGULAR  PRACTICES  WITH  RESPECT  TO
 TICKET  SALES FOR EVENTS IN THE STATE OR WITH RESPECT TO TICKETS SOLD TO
 RESIDENTS OF THE STATE. THE ATTORNEY GENERAL SHALL  PROMINENTLY  DISPLAY
 ON  ITS WEBSITE INFORMATION REGARDING THE HOTLINE.  THE ATTORNEY GENERAL
 SHALL INVESTIGATE, AS APPROPRIATE,  ALL  CREDIBLE  ALLEGATIONS  RECEIVED
 REGARDING IMPROPER TICKET ACQUISITION, DISTRIBUTION OR SALES PRACTICES.
   §  10. 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, subdivisions 2, 3, 4, 5 and 6 as amended by chapter
 374  of  the  laws of 2007, and subdivision 7 as added by chapter 151 of
 the laws of 2010, is amended to read as follows:
   § 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  SUBDIVISION
 ONE OF SECTION 25.29 of this article shall be guilty of a class A misde-
 meanor  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 procedures set forth in section 400.30 of the criminal
 procedure law, whichever 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 SUBDIVISION ONE OF SECTION 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 procedures set forth in section 400.30 of the
 criminal procedure law, whichever 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.
   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

 S. 5178                             5

 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  dollars  on  the  second
 conviction; and one 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 hundred fifty] FIVE HUNDRED dollars.
   7. 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.
   §  11. This act shall take effect immediately; provided, however, that
 the amendments made by sections two,  three,  four,  five,  six,  seven,
 eight,  nine  and ten of this act shall not affect the repeal and rever-
 sion of such article and shall be deemed repealed therewith.