S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5881
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 23, 2023
                                ___________
 
 Introduced  by M. of A. CARROLL -- read once and referred to the Commit-
   tee on Tourism, Parks, Arts and Sports Development
 
 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 estab-
   lishing an annual professional  reseller  renewal  fee  and  requiring
   professional  ticket  resellers to provide their New York state ticket
   reseller license number (Part B);  to  amend  the  arts  and  cultural
   affairs  law,  in  relation to providing criteria for when a purchaser
   may obtain a full refund of the amount paid for a ticket (Part C);  to
   amend  the  arts  and  cultural  affairs  law,  in  relation to resale
   requirements for tickets (Part D); to  amend  the  arts  and  cultural
   affairs  law, in relation to unlawful charges in connection with tick-
   ets (Part E); to amend the arts and cultural affairs law, in  relation
   to  the  availability  of tickets for sale to the general public (Part
   F); to amend the arts and cultural affairs law, in relation to minimum
   seating capacity requirements for a professional  sports  organization
   membership  pass  (Part  G);  to amend the general obligations law, in
   relation to prohibiting exclusivity clauses in contracts between oper-
   ators of places of entertainment and primary ticket vendors (Part  H);
   and  to  amend  the  arts and cultural affairs law, in relation to the
   resale of tickets included in a subscription or season ticket  package
   (Part I)
 
   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 I. 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
 component, shall be deemed  to  mean  and  refer  to  the  corresponding
 section of the Part in which it is found, unless noted otherwise.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09681-01-3
 A. 5881                             2
 
                                  PART A
 
   Section  1.  Subdivision  10 of section 25.24 of the arts and cultural
 affairs law, as added by chapter 110 of the laws of 2018, is amended  to
 read as follows:
   10.  [Any  person, firm, corporation or other entity who is a licensee
 under this article who is adjudicated guilty of the following  acts  may
 lose  their  license and may be barred from licensure under this article
 for a period not to exceed three years to be determined by  the  depart-
 ment  of  state pursuant to section 25.31 of this article if such licen-
 see: (a) knowingly utilized  ticket  purchasing  software  in  order  to
 purchase  tickets;  (b)  knowingly  resold or offered to resell a ticket
 that such licensee knew was obtained using ticket  purchasing  software;
 or  (c)  intentionally  maintained  any  interest  in  or maintained any
 control of the operation of ticket purchasing software to purchase tick-
 ets.] (A) ANY PERSON, FIRM, CORPORATION, OR OTHER ENTITY WHO IS A LICEN-
 SEE UNDER THIS ARTICLE WHO IS ADJUDICATED GUILTY OF THE  FOLLOWING  ACTS
 SHALL  LOSE THEIR LICENSE AND SHALL BE PERMANENTLY BARRED FROM LICENSURE
 UNDER THIS ARTICLE PURSUANT TO SECTION 25.31 OF  THIS  ARTICLE  IF  SUCH
 LICENSEE:  (I) KNOWINGLY UTILIZED TICKET PURCHASING SOFTWARE IN ORDER TO
 PURCHASE TICKETS; (II) KNOWINGLY RESOLD OR OFFERED TO  RESELL  A  TICKET
 THAT  SUCH  LICENSEE KNEW WAS OBTAINED USING TICKET PURCHASING SOFTWARE;
 OR (III) INTENTIONALLY MAINTAINED ANY  INTEREST  IN  OR  MAINTAINED  ANY
 CONTROL OF THE OPERATION OF TICKET PURCHASING SOFTWARE TO PURCHASE TICK-
 ETS.
   (B)  FAILURE  TO  NOTIFY THE ATTORNEY GENERAL OF SUCH ACTS PURSUANT TO
 THIS ARTICLE SHALL RESULT IN A VIOLATION AND SUCH PERSON,  FIRM,  CORPO-
 RATION  OR  OTHER  ENTITY  WHO  FAILS TO MAKE SUCH NOTIFICATION SHALL BE
 SUBJECT TO A CIVIL PENALTY IN AN AMOUNT OF NO  LESS  THAN  FIVE  HUNDRED
 DOLLARS  AND  NO  MORE THAN ONE THOUSAND DOLLARS PER TICKET PURCHASED OR
 RESOLD UTILIZING SUCH TICKET PURCHASING SOFTWARE.
   (C) ANY PERSON, FIRM, CORPORATION OR OTHER  ENTITY  WHO  NOTIFIES  THE
 ATTORNEY GENERAL OF SUCH ACTS PURSUANT TO THIS ARTICLE, WHERE THE ATTOR-
 NEY GENERAL TAKES ACTION PURSUANT TO THE NOTIFICATION WHICH RESULTS IN A
 MONETARY  PENALTY  ASSESSED  UNDER A VIOLATION PURSUANT TO THIS ARTICLE,
 SHALL BE ENTITLED TO FIVE PERCENT OF THE FINAL PENALTY  COLLECTED  AS  A
 RESULT OF SUCH VIOLATION.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.

                                  PART B
 
   Section 1. Section 25.03 of the  arts  and  cultural  affairs  law  is
 amended by adding a new subdivision 11 to read as follows:
   11.  "PROFESSIONAL  RESELLER"  MEANS A RESELLER, ALSO REFERRED TO AS A
 TICKET BROKER, AND INCLUDES ANY PERSON, FIRM, CORPORATION OR OTHER ENTI-
 TY THAT IS INVOLVED IN THE BUSINESS OF THE RESALE OF  TICKETS.  INDIVID-
 UALS  WHO  DO NOT REGULARLY ENGAGE IN THE BUSINESS OF RESELLING TICKETS,
 WHO RESELL FEWER THAN THIRTY TICKETS PER YEAR AND WHO OBTAIN THE TICKETS
 FOR SUCH INDIVIDUAL'S PERSONAL USE OR THE USE OF FRIENDS AND FAMILY, ARE
 NOT DEEMED PROFESSIONAL RESELLERS FOR THE PURPOSES OF THIS ARTICLE.
   § 2. Subdivision 1 of section 25.13 of the arts and  cultural  affairs
 law,  as  amended by chapter 374 of the laws of 2007, is amended to read
 as follows:
   1. (A) No [person, firm or corporation]  PROFESSIONAL  RESELLER  shall
 resell  or engage in the business of reselling any tickets to a place of
 A. 5881                             3
 
 entertainment or operate an internet website  or  any  other  electronic
 service that provides a mechanism for two or more parties to participate
 in  a  resale transaction or that facilitates resale transactions by the
 means  of  an  auction,  or  own, conduct or maintain any office, branch
 office, bureau, agency or sub-agency for such  business  without  having
 first procured a license or certificate for each location at which busi-
 ness  will  be  conducted  from  the secretary of state. Any operator or
 manager of a website that serves as a platform to facilitate resale,  or
 resale  by  way  of  a competitive bidding process, solely between third
 parties and does not in any other manner engage in resales of tickets to
 places of entertainment shall be exempt from the licensing  requirements
 of this section. The department of state shall issue and deliver to such
 applicant  a certificate or license to conduct such business and to own,
 conduct or maintain a  bureau,  agency,  sub-agency,  office  or  branch
 office  for  the conduct of such business on the premises stated in such
 application upon the payment by or on behalf of the applicant of  a  fee
 of  five  thousand  dollars  and shall be renewed upon the payment of [a
 like fee annually.] AN ANNUAL RENEWAL FEE PURSUANT TO PARAGRAPH  (B)  OF
 THIS  SUBDIVISION.  Such license or certificate shall not be transferred
 or assigned, except by  permission  of  the  secretary  of  state.  Such
 license  or certificate shall run to the first day of January next ensu-
 ing the date thereof, unless sooner revoked by the secretary  of  state.
 Such  license or certificate shall be granted upon a written application
 setting forth such information as the secretary of state may require  in
 order  to  enable him or her to carry into effect the provisions of this
 article and shall be accompanied by proof satisfactory to the  secretary
 of state of the moral character of the applicant.
   (B) THE ANNUAL PROFESSIONAL RESELLER RENEWAL FEE SHALL BE:
   (I)  FOR A PROFESSIONAL RESELLER THAT RESELLS MORE THAN THIRTY TICKETS
 BUT LESS THAN ONE HUNDRED TICKETS PER YEAR, AN ANNUAL RENEWAL FEE OF TWO
 THOUSAND DOLLARS TO MAINTAIN A PROFESSIONAL RESELLER LICENSE;
   (II) FOR A PROFESSIONAL RESELLER THAT  RESELLS  ONE  HUNDRED  OR  MORE
 TICKETS  BUT  LESS  THAN TWO HUNDRED TICKETS PER YEAR, AN ANNUAL RENEWAL
 FEE OF THREE  THOUSAND  DOLLARS  TO  MAINTAIN  A  PROFESSIONAL  RESELLER
 LICENSE; AND
   (III)  FOR  A  PROFESSIONAL  RESELLER THAT RESELLS TWO HUNDRED OR MORE
 TICKETS PER YEAR, AN ANNUAL RENEWAL FEE  OF  FOUR  THOUSAND  DOLLARS  TO
 MAINTAIN A PROFESSIONAL RESELLER LICENSE.
   (C) "TICKETS" SHALL MEAN, FOR PURPOSES OF PARAGRAPH (B) OF THIS SUBDI-
 VISION:  (I)  EACH RESOLD TICKET NOT ORIGINALLY PURCHASED BY THE PROFES-
 SIONAL RESELLER AS PART OF A SEASON OR SUBSCRIPTION TICKET  PACKAGE;  OR
 (II)  A  SET  OF RESOLD TICKETS ORIGINALLY PURCHASED BY THE PROFESSIONAL
 RESELLER AS PART OF A SEASON OR SUBSCRIPTION TICKET PACKAGE.
   § 3. Section 25.19 of the arts and cultural affairs law, as amended by
 chapter 110 of the laws of 2018, is amended to read as follows:
   § 25.19. Posting of license or certificate. 1.  FOR  THE  PURPOSES  OF
 THIS  SECTION, "ONLINE RESALE MARKETPLACE" 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. Immediately upon the receipt of the license or  certificate  issued
 pursuant  to  this article by the secretary of state, the licensee named
 therein shall cause such license to be posted and at all times displayed
 in a conspicuous place in the principal  office  of  such  business  for
 which  it  is  issued,  and  shall cause the certificate for each branch
 office, bureau, agency or sub-agency to  be  posted  and  at  all  times
 A. 5881                             4
 
 displayed  in  a conspicuous place in such branch office, bureau, agency
 or sub-agency for which it is issued, so that all persons visiting  such
 principal office, branch office, bureau, agency or sub-agency may readi-
 ly  see  the  same,  and if such licensee does business on the internet,
 including via a retail ticket purchasing platform, to provide a  license
 number  displayed  in a conspicuous manner or a hyperlink displayed in a
 conspicuous manner to a scanned copy of such license.  Such  license  or
 certificate  shall  at  all reasonable times be subject to inspection by
 the secretary of state or his or her authorized inspectors. It shall  be
 unlawful  for  any person, firm, partnership or corporation holding such
 license or certificate to post such license or certificate or to  permit
 such  certificate  to be posted upon premises other than those described
 therein or to which it has been transferred pursuant to  the  provisions
 of  this  article  or  unlawfully  to  alter, deface or destroy any such
 license or certificate.  For purposes of this section, the term  "retail
 ticket  purchasing  platform"  shall  mean  a  retail  ticket purchasing
 website, application, phone system, or other technology platform used to
 sell tickets.
   3. (A) AN ONLINE RESALE MARKETPLACE SHALL REQUIRE PROFESSIONAL RESELL-
 ERS TO PROVIDE THEIR NEW YORK STATE TICKET RESELLER LICENSE NUMBER AS  A
 CONDITION OF UTILIZING AN ONLINE RESALE MARKETPLACE TO RESELL TICKETS.
   (B)  AN  ONLINE  RESALE  MARKETPLACE  SHALL  DISCLOSE  IN  A CLEAR AND
 CONSPICUOUS MANNER A NOTICE ON THE ADVERTISEMENT OR OFFER OF A TICKET OR
 TICKETS THAT SUCH TICKET OR TICKETS BEING PURCHASED ARE BEING RESOLD  BY
 A LICENSED NEW YORK STATE PROFESSIONAL RESELLER.
   §  4.  This  act  shall take effect on the sixtieth day after it shall
 have become a law; provided, however, that the  amendments  to  sections
 25.03,  25.13  and  25.19  of  the arts and cultural affairs law made by
 sections one, two and three of this act shall not affect the  repeal  of
 such sections and shall be deemed repealed therewith.
 
                                  PART C

   Section  1.  Subdivision  2  of section 25.07 of the arts and cultural
 affairs law, as amended by chapter 61 of the laws of  2007,  is  amended
 and a new subdivision 5 is added to read as follows:
   2.  Notwithstanding  any  other  provision of law, any person, firm or
 corporation, regardless of whether or not licensed under  this  article,
 that  SELLS  TICKETS OR FACILITATES THE SALE OF TICKETS, resells tickets
 or facilitates the resale or resale auction of tickets between independ-
 ent parties by any means, must guarantee to each purchaser of such  SOLD
 OR  resold  tickets  that the person, firm or corporation will provide a
 full refund of the amount paid by  the  purchaser  (including,  but  not
 limited  to,  all  fees,  regardless  of  how characterized), UNLESS THE
 PURCHASER ELECTS TO RETAIN SUCH TICKETS OR  A  CREDIT  EQUAL  TO  OR  IN
 EXCESS OF THE FULL AMOUNT PAID BY THE PURCHASER IN LIEU OF A FULL REFUND
 WITHIN  THIRTY  DAYS  OF  RECEIVING  SUCH NOTICE OF AN OPPORTUNITY FOR A
 REFUND, if any of the following occurs: (a) the  event  for  which  such
 ticket  has been SOLD OR resold is cancelled, provided that if the event
 is cancelled then actual handling and delivery fees need not be refunded
 as long as such previously disclosed guarantee specifies that such  fees
 will  not be refunded; (b) the ticket received by the purchaser does not
 grant the purchaser admission to the event described on the ticket,  for
 reasons  that  may include, without limitation, that the ticket is coun-
 terfeit or that the ticket has been cancelled by the issuer due to  non-
 payment, or that the event described on the ticket was cancelled for any
 A. 5881                             5
 
 reason prior to purchase of the SOLD OR resold ticket, unless the ticket
 is  cancelled  due to an act or omission by such purchaser; [or] (c) the
 ticket fails to conform to its  description  as  advertised  unless  the
 buyer  has  pre-approved  a  substitution  of tickets; (D) THE EVENT FOR
 WHICH SUCH TICKET HAS BEEN SOLD OR RESOLD IS POSTPONED MORE THAN ONCE IN
 A CALENDAR YEAR; (E) THE EVENT FOR WHICH SUCH TICKET HAS  BEEN  SOLD  OR
 RESOLD HAS BEEN RESCHEDULED TO A SUBSEQUENT DATE MORE THAN ONE YEAR FROM
 THE  INITIAL EVENT DATE; OR (F) THE EVENT FOR WHICH SUCH TICKET HAS BEEN
 SOLD OR RESOLD HAS BEEN POSTPONED AND HAS NOT  BEEN  RESCHEDULED  WITHIN
 THREE  MONTHS  AFTER THE INITIAL EVENT DATE.  UPON THE OCCURRENCE OF ANY
 OF THE AFOREMENTIONED EVENTS, THE SELLER OR RESELLER  SHALL  NOTIFY  THE
 PURCHASER  OF  SUCH TICKETS AND SHALL PROVIDE A THIRTY-DAY WINDOW DURING
 WHICH THE PURCHASER MAY ELECT TO RETAIN SUCH TICKETS, RECEIVE  A  CREDIT
 EQUAL  TO  OR  IN  EXCESS  OF  THE  FULL AMOUNT PAID BY THE PURCHASER OR
 RECEIVE A FULL REFUND.  IF, AT THE END OF  THE  THIRTY-DAY  WINDOW,  THE
 PURCHASER  OF  SUCH  TICKETS  DOES  NOT CHOOSE ONE OF THE AFOREMENTIONED
 OPTIONS, THEY SHALL RECEIVE AN IMMEDIATE FULL REFUND FOR THE AMOUNT PAID
 BY THE PURCHASER INCLUDING BUT NOT LIMITED TO ALL  FEES,  REGARDLESS  OF
 HOW  CHARACTERIZED.    THE SECRETARY OF STATE SHALL PROMULGATE RULES AND
 REGULATIONS REGARDING NOTIFICATION  PROCEDURES  AND  SHALL  DETERMINE  A
 SUFFICIENT  REFUND  TIME PERIOD, WHICH SHALL BE NO LESS THAN THIRTY DAYS
 FOLLOWING THE OCCURRENCE OF A TRIGGERING EVENT.
   5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  ANY  PERSON,  FIRM  OR
 CORPORATION, REGARDLESS OF WHETHER OR NOT LICENSED UNDER THIS ARTICLE OR
 DESIGNATED  AS  A PROFESSIONAL RESELLER OR AN ONLINE RESALE MARKETPLACE,
 THAT RESELLS TICKETS OR FACILITATES THE  RESALE  OR  RESALE  AUCTION  OF
 TICKETS  BETWEEN INDEPENDENT PARTIES BY ANY MEANS, SHALL GUARANTEE WITH-
 OUT RESTRICTION TO EACH  PURCHASER  OF  SUCH  RESOLD  TICKETS  THAT  THE
 PERSON,  FIRM  OR CORPORATION WILL HONOR, COMMUNICATE AND FACILITATE, IF
 SO  REQUESTED  BY  SUCH  PURCHASER,  ALL  OPPORTUNITIES   FOR   REFUNDS,
 EXCHANGES,  CREDITS OR OTHER REMEDIES DUE TO EVENT CANCELLATION OR POST-
 PONEMENT THAT ARE PUBLICLY  OFFERED  BY  A  PRIMARY  TICKET  SELLER,  AS
 DEFINED  IN  SUBDIVISION  TWELVE  OF  SECTION  25.03 OF THIS ARTICLE, TO
 ORIGINAL PURCHASERS OF SUCH TICKETS.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law,  provided, however, that the amendments to section
 25.07 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
 repealed therewith.
 
                                  PART D

   Section 1. Section 25.10 of the arts  and  cultural  affairs  law,  as
 added by chapter 110 of the laws of 2018, is amended to read as follows:
   §  25.10.  Ticket  resale  requirements. 1. It shall be unlawful for a
 licensee or other ticket reseller to ADVERTISE FOR THE SALE OF  TICKETS,
 contract  for the sale of tickets, contract to obtain tickets for anoth-
 er, or accept consideration for payment in full or for a deposit for the
 sale of tickets unless [such licensee or other ticket reseller meets one
 or more of the following requirements] AND UNTIL:
   (a) such licensee or other ticket reseller has the offered  ticket  in
 its possession OR HAS A WRITTEN CONTRACT TO OBTAIN THE OFFERED TICKET AT
 A  CERTAIN  PRICE FROM A PERSON OR ENTITY IN POSSESSION OF THE TICKET OR
 FROM A PERSON OR ENTITY WHO HAS A CONTRACTUAL RIGHT TO OBTAIN SUCH TICK-
 ET; AND
 A. 5881                             6
 
   (b) [such licensee or other ticket reseller has a written contract  to
 obtain the offered ticket at a certain price from a person in possession
 of  the  ticket  or  from a person who has a contractual right to obtain
 such ticket; or
   (c)  such licensee or other ticket reseller informs the purchaser in a
 clear and conspicuous manner and in plain language at the time of offer-
 ing such ticket for sale and in a written notice prior to the completion
 of the transaction that such licensee or other ticket reseller does  not
 have  possession  of  the  ticket, has no contract to obtain the offered
 ticket at a certain price from a person in possession of the  ticket  or
 from a person who has a contractual right to obtain such ticket, may not
 be able to supply the ticket at the contracted price or range of prices,
 and requires such purchaser to expressly confirm prior to completing the
 transaction that the purchaser has read such notice.
   2.  Nothing  in this section shall prohibit a licensee or other ticket
 reseller from accepting a deposit from a  prospective  purchaser  for  a
 resale  pursuant  to  paragraph  (c) of subdivision one of this section,
 provided that  such  licensee  or  other  ticket  reseller  informs  the
 purchaser  in  writing prior to receipt of consideration of the terms of
 the deposit agreement, and includes in the written  notice  the  disclo-
 sures  otherwise  required  by  this  section.  If  a licensee or ticket
 reseller has entered into a contract with or received consideration from
 a prospective purchaser for the sale of a ticket or tickets  and  cannot
 supply  such  ticket  or tickets at the contracted price or price range,
 such licensee or ticket reseller shall refund any monies  paid  by  such
 prospective  purchaser  within ten business days of receipt of a request
 for a refund from such purchaser.
   3.] TICKETS TO THE EVENT HAVE BEEN PLACED ON  SALE  BY  THE  VENUE  OR
 ENTITY  HOSTING  THE  EVENT OR ITS AUTHORIZED AGENT. FOR THE PURPOSES OF
 THIS SECTION, "PLACED ON SALE" SHALL MEAN THE DATE AND TIME WHEN TICKETS
 ARE MADE AVAILABLE FOR SALE TO THE GENERAL PUBLIC, EXCLUDING  ANY  PRIOR
 SALES  TO FAN CLUBS, BUSINESSES, AND PERSONS FOR PROMOTIONAL ACTIVITIES.
 THIS PARAGRAPH SHALL NOT APPLY TO SEASON OR SUBSCRIPTION TICKET HOLDERS.
   2. Nothing in this section 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 section shall be  construed
 as  making  lawful any fraudulent, deceptive, or illegal act or practice
 that is unlawful pursuant to now existing laws or regulations.
   [4.] 3. The attorney general shall have jurisdiction  to  enforce  the
 provisions  of this section in accordance with the powers granted to him
 or her by section sixty-three of the executive law.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law;  provided, however, that the amendments to section
 25.10 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 E
 
   Section 1. Section 25.03 of the  arts  and  cultural  affairs  law  is
 amended by adding two new subdivisions 12 and 13 to read as follows:
   12.  "PRIMARY  TICKET SELLER" MEANS AN OWNER OR OPERATOR OF A VENUE OR
 SPORTS TEAM, A MANAGER OR PROVIDER OF AN EVENT, OR A PROVIDER OF TICKET-
 ING SERVICES OR AN AGENT OF SUCH OWNER, OPERATOR, MANAGER,  OR  PROVIDER
 THAT  ENGAGES IN THE PRIMARY SALE OF TICKETS FOR AN EVENT OR RETAINS THE
 AUTHORITY TO OTHERWISE DISTRIBUTE TICKETS.
 A. 5881                             7
 
   13. "PLACED ON SALE" MEANS THE DATE AND TIME  WHEN  TICKETS  ARE  MADE
 AVAILABLE  FOR  SALE TO THE GENERAL PUBLIC, EXCLUDING ANY PRIOR SALES TO
 FAN CLUBS, BUSINESSES, AND PERSONS FOR PROMOTIONAL ACTIVITIES.
   § 2. Section 25.29 of the arts and cultural affairs law, as amended by
 section  1  of  part E of chapter 358 of the laws of 2022, 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 OF FIFTEEN OR LESS PERCENT OF THE PRICE OF A TICKET PRIOR TO  THE
 ADDITION  OF ANY CHARGES by [the operator or agents of the operator] ANY
 PERSON, FIRM OR CORPORATION, REGARDLESS OF WHETHER OR NOT LICENSED UNDER
 THIS ARTICLE, THAT SELLS TICKETS OR FACILITATES  THE  SALE  OF  TICKETS,
 RESELLS  TICKETS  OR FACILITATES THE RESALE OR RESALE AUCTION OF TICKETS
 BETWEEN INDEPENDENT PARTIES BY ANY MEANS for special services[,  includ-
 ing but not limited to,] ACTUALLY RENDERED OR OTHERWISE IN CONNECTION TO
 CUSTOMER  SUPPORT, TECHNOLOGICAL AND SOFTWARE INFRASTRUCTURE, AND ACTUAL
 OPERATIONAL COSTS FOR sales away from the box office[, credit card sales
 or delivery]; (B) IT SHALL BE AN UNLAWFUL ACT FOR A PRIMARY TICKET SELL-
 ER THAT EARNS GREATER REVENUE THROUGH THE PRIMARY SALE OF  TICKETS  THAN
 THE RESALE OF TICKETS FROM CHARGING ANY FEE WHATSOEVER TO RESELL TICKETS
 ORIGINALLY  PURCHASED  FROM  SUCH  SELLER; and [(b)] (C) 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 the 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.  ANY  PERSON,  FIRM  OR  CORPORATION,  REGARDLESS OF WHETHER OR NOT
 LICENSED UNDER THIS ARTICLE, THAT SELLS TICKETS OR FACILITATES THE  SALE
 OF  TICKETS  IS PROHIBITED FROM REQUIRING A MINIMUM PRICE FOR THE RESALE
 OF ANY TICKETS PURCHASED FROM A PRIMARY TICKET SELLER.
   4. UNDER NO CIRCUMSTANCES  SHALL  ANY  PERSON,  FIRM  OR  CORPORATION,
 REGARDLESS  OF  WHETHER  OR  NOT LICENSED UNDER THIS ARTICLE, THAT SELLS
 TICKETS OR FACILITATES THE SALE OF TICKETS INCREASE DISPLAYED PRICES  OF
 TICKETS  WHILE  A  PURCHASER:  (I)  IS  WAITING IN A PHYSICAL OR VIRTUAL
 QUEUE, ROOM OR SIMILAR LOCATION OR SEQUENCE  ESTABLISHED  TO  AWAIT  THE
 PURCHASE  OF  TICKETS; (II) HAS THE ABILITY TO SELECT AND REVIEW TICKETS
 FROM A PHYSICAL OR VIRTUAL LIST OR MAP BUT HAS  NOT  YET  COMPLETED  THE
 PURCHASE;  OR (III) IS COMPLETING THE PHYSICAL OR VIRTUAL CHECKOUT PROC-
 ESS TO PURCHASE TICKETS. NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVI-
 SION, ANY PERSON, FIRM OR CORPORATION THAT SELLS TICKETS OR  FACILITATES
 THE SALE OF TICKETS MAY PLACE REASONABLE AND UNIFORM RESTRICTIONS ON THE
 LENGTH OF TIME ALLOWED FOR A PURCHASER OF TICKETS TO REVIEW AND COMPLETE
 EACH TRANSACTION.
   5.  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.
 A. 5881                             8
 
   § 3. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law; provided, however, that the amendments to sections
 25.03 and 25.29 of the arts and cultural affairs law  made  by  sections
 one and two of this act shall not affect the repeal of such sections and
 shall be deemed repealed therewith.
 
                                  PART F
 
   Section  1.  The  arts and cultural affairs law is amended by adding a
 new section 25.04 to read as follows:
   § 25.04. TICKETS WITHHELD FROM SALE  TO  GENERAL  PUBLIC.  1.  PRIMARY
 TICKET  SELLERS  SHALL  DISCLOSE  AND DISPLAY ON THE WEBSITE, AT THE BOX
 OFFICE AND ANY OTHER METHOD OF TICKET DISTRIBUTION OF SUCH PRIMARY TICK-
 ET SELLER, THE TOTAL NUMBER OF TICKETS OFFERED FOR SALE TO  THE  GENERAL
 PUBLIC BY SUCH PRIMARY TICKET SELLER NOT LESS THAN SEVEN DAYS BEFORE THE
 DATE  ON  WHICH  TICKETS  SHALL BE AVAILABLE FOR PRIMARY SALE. THE TOTAL
 NUMBER SHALL BE PERIODICALLY UPDATED BY THE PRIMARY TICKET SELLER IF AND
 WHEN ADDITIONAL TICKETS ARE SUBSEQUENTLY RELEASED FOR SALE TO THE GENER-
 AL PUBLIC.  THIS SUBDIVISION SHALL NOT APPLY TO: (I) VENUES WITH A SEAT-
 ING CAPACITY OF LESS THAN SIX THOUSAND  FIVE  HUNDRED  GUESTS;  OR  (II)
 PLACES  OF ENTERTAINMENT SUCH AS FAIR GROUNDS, AMUSEMENT PARKS, MUSEUMS,
 OBSERVATORIES, SKI RESORTS, ICE SKATING  RINKS  AND  OTHER  RECREATIONAL
 FACILITIES  OR  EVENTS  WHEREIN  RIDES,  EXHIBITS AND DISPLAYS, GAMES OR
 ACTIVITIES OF SKILL OR CHANCE OR THE SALE OF FOOD, BEVERAGES,  TOYS  AND
 SOUVENIRS CONSTITUTE THE MAIN USES.
   2. IT SHALL BE AN UNLAWFUL PRACTICE FOR A PRIMARY TICKET SELLER OR ANY
 PERSON  OR  ENTITY  WHO  HAS  ACCESS TO TICKETS TO AN EVENT PRIOR TO THE
 TICKETS' RELEASE FOR SALE TO THE GENERAL PUBLIC TO WITHHOLD SUCH TICKETS
 FROM SALE TO THE GENERAL PUBLIC IN AN AMOUNT EXCEEDING  TEN  PERCENT  OF
 ALL  AVAILABLE  SEATING  FOR THE EVENT. TICKETS DISTRIBUTED TO BONA FIDE
 CHARITABLE GROUPS OR INITIALLY RESERVED DUE TO EVENT  PRODUCTION  HOLDS,
 INCLUDING BUT NOT LIMITED TO PENDING SEATING, LIGHTING, OR STAGE CONFIG-
 URATIONS, THAT ARE SUBSEQUENTLY RELEASED TO THE GENERAL PUBLIC SHALL NOT
 BE  INCLUDED  WITHIN  THIS AMOUNT.   THIS SUBDIVISION SHALL NOT APPLY TO
 PLACES OF ENTERTAINMENT SUCH AS FAIR GROUNDS, AMUSEMENT PARKS,  MUSEUMS,
 OBSERVATORIES,  SKI  RESORTS,  ICE  SKATING RINKS AND OTHER RECREATIONAL
 FACILITIES OR EVENTS WHEREIN RIDES,  EXHIBITS  AND  DISPLAYS,  GAMES  OR
 ACTIVITIES  OF  SKILL OR CHANCE OR THE SALE OF FOOD, BEVERAGES, TOYS AND
 SOUVENIRS CONSTITUTE THE MAIN USES.
   3. IT SHALL BE AN UNLAWFUL PRACTICE FOR AN INDIVIDUAL EMPLOYEE OF  ANY
 VENUE,  PRIMARY  TICKET SELLER, TEAM, ARTIST, ONLINE RESALE MARKETPLACE,
 BOX OFFICE OR ANY OTHER ENTITY THAT IS INVOLVED IN  HOSTING,  PROMOTING,
 PERFORMING  OR  TICKET SELLING TO RESELL TICKETS THAT HAVE BEEN WITHHELD
 FROM THE GENERAL PUBLIC FOR A HIGHER PRICE THAN THE PRIMARY SALE OF  THE
 TICKET  OR  RESELL  TICKETS TO ANY THIRD PARTY THAT MAY HAVE INTENTIONS,
 ACTUALLY OR CONSTRUCTIVELY KNOWN BY SUCH EMPLOYEE, TO RESELL THE  TICKET
 FOR  A  HIGHER  PRICE  THAN  THE TOTAL COST OF THE TICKET, INCLUDING ALL
 ANCILLARY CHARGES.
   § 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 G
 A. 5881                             9
 
   Section  1.  Section  25.12  of  the arts and cultural affairs law, as
 added by chapter 110 of the laws of 2018, is amended to read as follows:
   §  25.12.  Professional sports organization membership pass.  Notwith-
 standing section 25.30 of this article, an operator of a place of enter-
 tainment or such operator's agent may offer paperless tickets  which  do
 not allow for independent transferability provided that such tickets are
 included in a membership pass at a discounted price offered by a profes-
 sional  sports  organization  for  seating  in venues or stadiums with a
 fixed capacity of over [thirty] THIRTEEN  thousand  FIVE  HUNDRED  seats
 that  guarantees  entry  to  a specified number of events in a specified
 time period with seat assignments assigned no more than four hours prior
 to the commencement of the event and such seat assignment must be  vari-
 able from game to game and not intended for season ticket holders. Tick-
 ets  provided  under  such  membership pass may be restricted from being
 transferred or resold, including  through  the  operator  or  operators'
 agents,  and must be clearly marked as such prior to initial offering or
 sale. Such membership pass shall not mean a subscription or season tick-
 et package offered for sale and shall not result in  the  sale  of  more
 than  five  percent of the maximum amount of all seats that will be made
 available at a venue for a  particular  event  to  be  sold  under  this
 section.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law; provided, however, that  the  amendments  to  section
 25.12  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 H
 
   Section  1.  The  general  obligations  law is amended by adding a new
 section 5-338 to read as follows:
   § 5-338. AGREEMENTS BETWEEN OPERATORS OF PLACES OF  ENTERTAINMENT  AND
 PRIMARY TICKET VENDORS. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOW-
 ING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "ENTERTAINMENT"  MEANS  ALL FORMS OF ENTERTAINMENT INCLUDING, BUT
 NOT LIMITED TO, THEATRICAL OR OPERATIC  PERFORMANCES,  CONCERTS,  MOTION
 PICTURES, ALL FORMS OF ENTERTAINMENT AT FAIRGROUNDS, AMUSEMENT PARKS AND
 ALL TYPES OF ATHLETIC COMPETITIONS INCLUDING FOOTBALL, BASKETBALL, BASE-
 BALL,  BOXING,  TENNIS, HOCKEY, AND ANY OTHER SPORT, AND ALL OTHER FORMS
 OF DIVERSION, RECREATION OR SHOW.
   (B) "OPERATOR" MEANS ANY PERSON WHO  OWNS,  OPERATES,  OR  CONTROLS  A
 PLACE OF ENTERTAINMENT OR WHO PROMOTES OR PRODUCES AN ENTERTAINMENT.
   (C) "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.
   (D)  "PRIMARY  TICKET SELLER" MEANS AN OWNER OR OPERATOR OF A VENUE OR
 SPORTS TEAM, A MANAGER OR PROVIDER OF AN EVENT, OR A PROVIDER OF TICKET-
 ING SERVICES OR AN AGENT OF SUCH OWNER, OPERATOR, MANAGER,  OR  PROVIDER
 THAT  ENGAGES IN THE PRIMARY SALE OF TICKETS FOR AN EVENT OR RETAINS THE
 AUTHORITY TO OTHERWISE DISTRIBUTE TICKETS.
   (E) "TICKET" MEANS ANY EVIDENCE OF THE RIGHT OF ENTRY TO ANY PLACE  OF
 ENTERTAINMENT.
   2.  A  CONTRACT  BETWEEN  AN OPERATOR OF PLACES OF ENTERTAINMENT AND A
 PRIMARY TICKET VENDOR SHALL NOT PROVIDE FOR THE PRIMARY TICKET VENDOR TO
 A. 5881                            10

 BE THE EXCLUSIVE AND SOLE PRIMARY TICKET  VENDOR  FOR  THE  OPERATOR  OF
 PLACES OF ENTERTAINMENT.
   3.  IT SHALL BE UNLAWFUL TO THREATEN OR TO SEEK TO ENFORCE A PROVISION
 MADE UNLAWFUL UNDER THIS SECTION OR TO OTHERWISE PENALIZE AN OPERATOR OF
 A PLACE OF ENTERTAINMENT FOR ENTERING INTO  AN  AGREEMENT  WITH  ANOTHER
 PRIMARY TICKET SELLER.
   4.  ANY WAIVER OF THE PROVISIONS OF THIS SECTION IS CONTRARY TO PUBLIC
 POLICY AND THUS IS VOID AND UNENFORCEABLE.
   5. THIS SECTION SHALL NOT REQUIRE AN OPERATOR OF  A  PLACE  OF  ENTER-
 TAINMENT  TO  ENTER  INTO  AN  AGREEMENT WITH A PRIMARY TICKET SELLER OR
 REQUIRE THAT AN OPERATOR OF A PLACE OF ENTERTAINMENT HAVE  AN  AGREEMENT
 WITH MULTIPLE PRIMARY TICKET SELLERS.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law,  and  shall  apply  to
 contracts entered into on or after such date.
 
                                  PART I
 
   Section 1. Paragraph (a) of subdivision 1 of section 25.30 of the arts
 and cultural affairs law, as amended by chapter 151 of the laws of 2010,
 is amended to read as follows:
   (a)  restrict  by  any  means  the resale of any tickets included in a
 subscription or season ticket package TO OR VIA A LICENSEE UNDER SECTION
 25.13 OF THIS ARTICLE OR VIA A WEBSITE THAT  SERVES  AS  A  PLATFORM  TO
 FACILITATE  RESALE  AS  DEFINED UNDER SECTION 25.13 OF THIS ARTICLE as a
 condition of purchase, as a condition to retain  such  tickets  for  the
 duration of the subscription or season ticket package agreement, or as a
 condition  to  retain any [contractually agreed upon] rights to purchase
 future  subscription  or  season  ticket  packages  that  are  otherwise
 conferred  in the subscription or season ticket agreement OR EXTENDED TO
 SUBSCRIBERS NOT ENGAGED IN THE RESALE MARKET AS A GENERAL POLICY OF  THE
 TEAM,  PROMOTER,  OR  VENUE.  FURTHER,  IT SHALL BE UNLAWFUL TO CHARGE A
 DIFFERENT RATE TO ANY SUCH SUBSCRIBER SOLELY BECAUSE THE SUBSCRIBER  HAS
 RESOLD OR MAY RESELL TICKETS;
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law, provided, however, that the amendments  to  paragraph
 (a)  of  subdivision 1 of section 25.30 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.
   § 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 I of this act shall be
 as specifically set forth in the last section of such Parts.