NY State Senate Bill 2021-S9461

Senate Bill S9461

Signed By Governor

2021-2022 Legislative Session

Enacts into law components of legislation that relate to live event ticket sales

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 30, 2022	signed chap.358
Jun 22, 2022	delivered to governor
Jun 03, 2022	returned to senate passed assembly ordered to third reading rules cal.665 substituted for a10500
Jun 02, 2022	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1879 committee discharged and committed to rules
May 30, 2022	referred to investigations and government operations

Votes

- Jun 2, 2022 - Floor Vote
  S9461
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 2, 2022
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
  Jun 2, 2022 - Rules Committee Vote
  S9461
  
  19
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 2, 2022
      
      aye (19)
      
      Addabbo Jr.
      
      Bailey
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Comrie
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      Parker
      
      Ritchie
      
      Savino
      
      Sepúlveda
      
      Stewart-Cousins
      
      aye wr (2)
      
      O'Mara
      
      Ortt

2021-S9461 (ACTIVE) - Details

See Assembly Version of this Bill:: A10500
Law Section:: Arts and Cultural Affairs Law
Laws Affected:: Amd §§25.24, 25.07, 25.23 & 25.29, add §25.06, Arts & Cul L; amd §4, Chap 704 of 1991; amd §11, Chap 151 of 2010

2021-S9461 (ACTIVE) - Summary

Enacts into law components of legislation that relate to live event ticket sales; institutes civil penalties for utilizing ticket purchasing software; increases civil penalties currently in place and institutes new penalties for second offenses for licensees (Part A); requires full ticket prices to be disclosed prior to a customer purchasing such ticket

2021-S9461 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9461

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the arts and cultural affairs law, in relation to insti-
tuting civil penalties for utilizing ticket purchasing software (Part
A); to amend the arts and cultural affairs law, in relation to requiring
ticket prices to be disclosed prior to a customer purchasing such ticket
and requiring such price to remain the same during the purchase process
(Part B); to amend the arts and cultural affairs law, in relation to
prohibiting the resale of a ticket if such ticket was initially offered
to the public at no charge (Part C); to amend the arts and cultural
affairs law, in relation to requiring online resale marketplaces to
clearly and conspicuously disclose the established price charged by the
operator of a place of entertainment that is printed or endorsed on the
face of each ticket (Part D); to amend the arts and cultural affairs
law, in relation to allowing reasonable and actual costs to be charged
for the physical delivery of certain tickets (Part E); and to amend
chapter 704 of the laws of 1991, amending the arts and cultural affairs
law and chapter 912 of the laws of 1920 relating to regulation of boxing
and wrestling matches relating to tickets to places of entertainment,
and chapter 151 of the laws of 2010, amending the arts and cultural
affairs law relating to resale of tickets of places of entertainment, in

relation to extending the effectiveness thereof (Part F)

 
SUMMARY OF PROVISIONS:

Part A of this bill amends paragraph(a)of subdivision 3, and subdivi-
sions 4, 5 and 6 of section 25.24 of the Arts and Cultural Affairs Law
to increase civil fines for the use of ticket purchasing software know
as bots. This part takes effect 60 days after the effective date of the
act.

Part B of this bill amends subdivision 4 of section 25.07 of the Arts
and Cultural Affairs Law to require sellers and resellers of tickets to
disclose the total cost of a ticket and clearly and conspicuously
disclose the amount of the price that is made up of fees and other
charges. The disclosure of the total price and fees shall be displayed
in the ticket listing prior to the ticket being selected for purchase.
The price of a ticket may not increase during the purchasing process.
The total price of a ticket must be disclosed at the beginning of a
transaction at the first instance a price is shown. Such disclosure
can't be misleading, the components of the total price may not be
displayed more prominently or in a larger font than the total cost. This
part takes effect 60 days after the effective date of the act.

Part C of the bill amends the arts and cultural affairs law by adding a
new section 25.06 that bans the resale of tickets originally provided to
the public free and access to a free ticket was not contingent on
purchasing something else. This part takes effect 60 days after the
effective date of the act.

Part D of the bill amends subdivision 2 of section 25.23 of the arts and
cultural affairs law to require secondary sellers to disclose the print-
ed or endorsed price of a ticket. This part takes effect 60 days after
the effective date of the act.


Part E of the bill amends section 25.29 of the arts and cultural affairs
law, prohibiting the charging of a delivery fee for tickets delivered
electronically or for self-printing by the buyer. This part takes effect
60 days after the effective date of the act.

Part F of the bill extends the current provisions of Article 25 of the
Arts and Cultural Affairs Law out to June 30, 2025. This part take
effect immediately.

 
JUSTIFICATION:

Article 25 of the New York State Arts & Cultural Affairs Law has been
historically subject to constant renewal and evolution by the Legisla-
ture. This bill once again extends and updates New York's "Ticketing
Law" by incorporating policy recommendations from a 2020-21 legislative
investigation into the state's live event ticket industry due to
concerns about potentially unfair, deceptive, and anti-consumer prac-
tices occurring in the primary and secondary markets.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
applicable effective date of Parts A through F of this act shall be as
specifically set forth in the last section of such Parts.

2021-S9461 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9461
 
                             I N  S E N A T E
 
                               May 30, 2022
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- 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 insti-
   tuting civil penalties for utilizing ticket purchasing software  (Part
   A); to amend the arts and cultural affairs law, in relation to requir-
   ing  ticket prices to be disclosed prior to a customer purchasing such
   ticket and requiring such price to remain the same during the purchase
   process (Part B); to amend the  arts  and  cultural  affairs  law,  in
   relation  to  prohibiting  the  resale  of a ticket if such ticket was
   initially offered to the public at no charge (Part C);  to  amend  the
   arts  and cultural affairs law, in relation to requiring online resale
   marketplaces to clearly and  conspicuously  disclose  the  established
   price  charged  by  the  operator  of a place of entertainment that is
   printed or endorsed on the face of each ticket (Part D); to amend  the
   arts  and cultural affairs law, in relation to allowing reasonable and
   actual costs to be charged for the physical delivery of certain  tick-
   ets  (Part  E); and to amend chapter 704 of the laws of 1991, amending
   the arts and cultural affairs law and chapter 912 of the laws of  1920
   relating  to  regulation  of  boxing and wrestling matches relating to
   tickets to places of entertainment, and chapter 151  of  the  laws  of
   2010, amending the arts and cultural affairs law relating to resale of
   tickets  of  places  of  entertainment,  in  relation to extending the
   effectiveness thereof (Part F)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  enacts into law components of legislation that
 relate to live event ticket sales. Each component  is  wholly  contained
 within  a  Part  identified as Parts A through F. The effective date for
 each particular provision contained within such Part is set forth in the
 last section of such Part. Any provision in any section contained within
 a Part, including the effective date of the Part, which makes  reference
 to a section "of this act", when used in connection with that particular
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11376-22-2

 S. 9461                             2
 
 component,  shall  be  deemed  to  mean  and  refer to the corresponding
 section of the Part in which it is found, unless noted otherwise.
 
                                  PART A
 
   Section 1. Paragraph (a) of subdivision 3, and subdivisions 4, 5 and 6
 of  section  25.24  of  the arts and cultural affairs law, as amended by
 chapter 472 of the laws of 2016, are amended to read as follows:
   (a) Any person,  firm,  corporation  or  other  entity  who  knowingly
 utilizes  ticket  purchasing software in order to purchase tickets shall
 be subject to a civil penalty  in  an  amount  of  no  less  than  [five
 hundred]  ONE  THOUSAND dollars and no more than [one] TWO thousand five
 hundred dollars for each such violation and shall  forfeit  all  profits
 made from the sale of any such unlawfully obtained tickets.
   4.  Any  person,  firm,  corporation or other entity who intentionally
 maintains any interest in or maintains any control of the  operation  of
 ticket  purchasing  software  to  purchase tickets shall be subject to a
 civil penalty in an amount of no less than  [seven  hundred  fifty]  ONE
 THOUSAND  dollars  and  no  more  than  [one]  TWO thousand five hundred
 dollars for each such violation and shall forfeit all profits made  from
 the sale of any such unlawfully obtained tickets.
   5. Any person, firm, corporation or other entity who knowingly resells
 or  offers  to  resell  a  ticket that such person, firm, corporation or
 other entity knows was obtained using ticket purchasing software and was
 not obtained for their own use or the use of their invitees,  employees,
 or  agents  shall  be subject to a civil penalty in an amount of no less
 than [five hundred] ONE THOUSAND dollars and  no  more  than  [one]  TWO
 thousand  five hundred dollars for each such violation and shall forfeit
 all profits made from the sale of any such unlawfully obtained ticket.
   6. Any person who is subject to a civil penalty under this section and
 has been assessed a penalty under this section  in  the  previous  three
 years shall be guilty of a violation and may be fined no less than [one]
 TWO  thousand  dollars  and no more than [five] TEN thousand dollars for
 each such violation and shall forfeit all profits from the sale  of  any
 such  unlawfully  obtained tickets. In addition, a person convicted of a
 violation under this section may be required  to  forfeit  any  and  all
 equipment used in the unlawful purchasing of tickets.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
 
                                  PART B
 
   Section 1. Subdivision 4 of section 25.07 of  the  arts  and  cultural
 affairs  law, as added by chapter 110 of the laws of 2018, is amended to
 read as follows:
   4. Every operator or operator's agent of a place of entertainment, any
 licensee or other ticket reseller, or platform that facilitates the SALE
 OR resale of tickets shall DISCLOSE THE TOTAL COST OF THE TICKET, INCLU-
 SIVE OF ALL ANCILLARY FEES THAT MUST BE PAID IN ORDER  TO  PURCHASE  THE
 TICKET,  AND disclose in a clear and conspicuous manner [the total price
 of the ticket and] the portion of the ticket  price  stated  in  dollars
 that  represents  a service charge, or any other fee or surcharge TO THE
 PURCHASER. SUCH DISCLOSURE OF THE TOTAL COST AND FEES SHALL BE DISPLAYED
 IN THE TICKET LISTING PRIOR TO THE TICKET BEING SELECTED  FOR  PURCHASE.
 DISCLOSURES  OF SUBTOTALS, FEES, CHARGES, AND ANY OTHER COMPONENT OF THE
 TOTAL PRICE SHALL NOT BE FALSE OR MISLEADING, AND MAY NOT  BE  PRESENTED
 S. 9461                             3
 
 MORE  PROMINENTLY  OR IN THE SAME OR LARGER SIZE AS THE TOTAL PRICE. THE
 PRICE OF THE TICKET SHALL NOT  INCREASE  DURING  THE  PURCHASE  PROCESS,
 EXCLUDING  REASONABLE  FEES  FOR  THE DELIVERY OF NON-ELECTRONIC TICKETS
 BASED  ON  THE DELIVERY METHOD SELECTED BY THE PURCHASER, WHICH SHALL BE
 DISCLOSED prior to accepting payment therefor. NOTHING IN THIS  SUBDIVI-
 SION SHALL BE CONSTRUED TO NULLIFY, EXPAND, RESTRICT, OR OTHERWISE AMEND
 OR  MODIFY NOW EXISTING LAWS OR REGULATIONS OUTSIDE OF THIS ARTICLE, AND
 NOTHING IN THIS SUBDIVISION SHALL BE  CONSTRUED  AS  MAKING  LAWFUL  ANY
 FRAUDULENT,  DECEPTIVE,  OR  ILLEGAL  ACT  OR  PRACTICE THAT IS UNLAWFUL
 PURSUANT TO NOW EXISTING LAWS OR REGULATIONS.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have  become a law provided, however, that the amendments to subdivision
 4 of section 25.07 of the arts and cultural affairs law made by  section
 one of this act shall not affect the repeal of such section and shall be
 deemed to repeal therewith.
 
                                  PART C
 
   Section  1.  The  arts and cultural affairs law is amended by adding a
 new section 25.06 to read as follows:
   § 25.06. RESALE OF TICKETS ISSUED AT  NO  CHARGE.  NOTWITHSTANDING  AN
 INDIVIDUAL'S  ABILITY TO TRANSFER A TICKET TO ANOTHER PARTY, 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 SUCH TICKET WAS INITIALLY OFFERED TO THE PUBLIC  AT  NO
 CHARGE  AND  ACCESS TO SUCH TICKETS IS NOT CONTINGENT UPON PROVIDING ANY
 FORM OF MONETARY CONSIDERATION.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have  become a law; provided, however, that the amendments to article 25
 of the arts and cultural affairs law made by section  one  of  this  act
 shall not affect the repeal of such article and shall be deemed repealed
 therewith.
 
                                  PART D
 
   Section 1. Subdivision 2 of section 25.23 of  the  arts  and  cultural
 affairs  law, as added by chapter 110 of the laws of 2018, is amended to
 read as follows:
   2.  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,  that  the  price of such ticket offered for sale may exceed the
 established price and shall also state the refund policy of the platform
 in connection with the cancellation or  postponement  of  an  event.  AN
 ONLINE RESALE MARKETPLACE SHALL BE REQUIRED TO CLEARLY AND CONSPICUOUSLY
 DISCLOSE  THE  ESTABLISHED  PRICE  CHARGED BY THE OPERATOR OF A PLACE OF
 ENTERTAINMENT THAT IS PRINTED OR ENDORSED ON THE FACE OF EACH TICKET  IN
 ACCORDANCE WITH SECTION 25.07 OF THIS ARTICLE PRIOR TO THE USER COMPLET-
 ING ANY TRANSACTION. An online resale marketplace shall require that the
 user  confirm  having  read  such [notice] NOTICES before completing any
 transaction. For the purposes of this section, an "online resale market-
 place" means any operator or manager of a website  or  other  electronic
 service  that  resells  tickets  or  serves  as a platform to facilitate
 resale, or resale by way of a competitive bidding process.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law;  provided, however, that the amendments to section
 25.23 of the arts and cultural affairs law made by section one  of  this
 S. 9461                             4
 
 act  shall  not  affect  the  repeal of such section and shall be deemed
 repealed therewith.
 
                                  PART E
 
   Section  1.  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. A REASONABLE AND ACTUAL COST FOR THE PHYSICAL DELIVERY  OF  TICKETS
 MAY  BE  CHARGED BY A SELLER OR RESELLER BASED ON THE METHOD OF DELIVERY
 SELECTED BY THE PURCHASER; PROVIDED, HOWEVER, THAT NO DELIVERY FEE SHALL
 BE CHARGED BY A SELLER OR RESELLER FOR TICKETS DELIVERED  ELECTRONICALLY
 OR TICKETS THAT MAY BE PRINTED INDEPENDENTLY BY THE PURCHASER.
   3.  In  any  prosecution under this section the attorney general shall
 have concurrent jurisdiction with any district attorney 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.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law;  provided, however, that the amendments to section
 25.29 of the arts and cultural affairs law made by section one  of  this
 act  shall  not  affect  the  repeal of such section and shall be deemed
 repealed therewith.
 
                                  PART F
 
   Section 1. Section 4 of chapter 704 of the laws of 1991, amending  the
 arts and cultural affairs law and chapter 912 of the laws of 1920 relat-
 ing  to the regulation of boxing and wrestling matches relating to tick-
 ets to places of entertainment, as amended by chapter 148 of the laws of
 2021, is amended to read as follows:
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law, provided, chapter 61 of the laws of 2007 shall not
 take effect with respect to the issuance  of  licenses  or  certificates
 under  this  article  by  the  secretary of state or department of state
 until January 1, 2008 and regulation under this article by  the  commis-
 sioners  of  licenses  of  the political subdivisions of the state shall
 continue through December 31, 2007, and shall remain in full  force  and
 effect only until and including June 30, [2022] 2025 when such act shall
 be  repealed  and  when, notwithstanding any other provision of law, the
 provisions of article 25 of title G of the  arts  and  cultural  affairs
 law,  repealed by such act, shall be reinstituted; provided further that
 section 25.11 of the arts and cultural affairs law, as added by  section
 one  of this act, shall survive such repeal date. Provided, however, the
 S. 9461                             5
 
 printing on tickets required pursuant to sections  25.07  and  25.08  of
 article  25  of the arts and cultural affairs law, as added by this act,
 shall not apply to tickets printed prior to enactment of such article so
 long  as  notice  of the higher maximum premium price and prohibition of
 sales within one thousand five hundred feet from the physical  structure
 of   the  place  of  entertainment,  where  applicable,  is  prominently
 displayed at the point of sale and at such place of entertainment.
   § 2. Section 11 of chapter 151 of the laws of 2010, amending the  arts
 and  cultural  affairs  law  relating  to resale of tickets to places of
 entertainment, as amended by chapter 148 of the laws of 2021, is amended
 to read as follows:
   § 11. Notwithstanding the provisions  of  article  5  of  the  general
 construction  law, if this act shall take effect after May 15, 2010, the
 provisions of article 25 of the arts and cultural  affairs  law,  except
 section  25.11  are  hereby revived and shall continue in full force and
 effect as they existed on May 15, 2010 through June 30, [2022] 2025 when
 upon such date such provisions shall expire and be deemed repealed.
   § 3. This act shall take effect immediately.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  3.  This act shall take effect immediately; provided, however, that
 the applicable effective date of Parts A through F of this act shall  be
 as specifically set forth in the last section of such Parts.

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