Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 329


Introduced by Assembly Member Pan

February 13, 2013


An act tobegin delete amend Section 22500end deletebegin insert repeal and add Chapter 21 (commencing with Section 22500) of Division 8end insert of the Business and Professions Code, relating to ticketbegin delete sellersend deletebegin insert issuersend insert.

LEGISLATIVE COUNSEL’S DIGEST

AB 329, as amended, Pan. Ticketbegin delete sellers.end deletebegin insert issuers and resale ticket agents.end insert

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Existing law provides comprehensive regulation of ticket sellers, including requiring disclosure of specified information to consumers, maintaining records, and maintaining a permanent business address, among other provisions. Existing law provides that a violation of the laws regulating ticket sellers is a misdemeanor.

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This bill would repeal and revise these provisions to regulate ticket issuers and resale ticket agents, as defined, regarding, among other things, restrictions placed on the resale of event tickets, consumer protection requirements, and the imposition of civil penalties based on a violation of these provisions. The bill would further provide that a person who intentionally uses software to circumvent a measure on a ticket issuer’s or resale ticket agent’s website that is used to ensure an equitable ticket buying process is guilty of a misdemeanor.

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Because this bill would create a new crime, it would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Existing law provides a comprehensive scheme for the regulation of ticket sellers and, among other things, requires ticket sellers, as defined, to have a permanent business address from which tickets may only be sold, to include that address in advertisements, and to be licensed, as specified.

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begin delete

This bill would make technical, nonsubstantive changes to that provision.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertChapter 21 (commencing with Section 22500) of
2Division 8 of the end insert
begin insertBusiness and Professions Codeend insertbegin insert is repealed.end insert

3begin insert

begin insertSEC. 2.end insert  

end insert

begin insertChapter 21 (commencing with Section 22500) is added
4to Division 8 of the end insert
begin insertBusiness and Professions Codeend insertbegin insert, to read:end insert

begin insert

5 

6Chapter  begin insert21.end insert Ticket Issuers and Resale Ticket Agents
7

 

8

begin insert22500.end insert  

For purposes of this chapter:

9(a) “Event” means any concert, theatrical performance, sporting
10event, exhibition, show, or similar scheduled activity taking place
11in the state that is open to the general public, for which an
12admission fee is charged, and that is held in a venue
13accommodating more than 1,000 people, including, but not limited
14to, venues for which public funding has been provided for the
15construction, maintenance, or operation of the venue or any
16infrastructure related thereto or that are located on property owned
17by a municipality or other government entity.

18(b) “Event ticket” means any physical, electronic, or other form
19of a certificate, document, voucher, token, or other evidence
20 indicating that the bearer, possessor, or person entitled to
21possession through purchase or otherwise has either a revocable
22or irrevocable right, privilege, or license to enter an event venue
23or occupy a particular seat or area in a venue with respect to one
P3    1or more events or an entitlement to purchase that right, privilege,
2or license with respect to one or more future events.

3(c) “Person” means any natural person, partnership,
4corporation, association, or other legal entity.

5(d) “Public funding” means the provision by the state, any
6county, city and county, municipality, or other subdivision of the
7state, or by any local development corporation or similar
8instrumentality whose creation was authorized by the state or by
9any county, city and county, municipality, or other subdivision of
10the state, of funding, grants, payments, or financial support,
11including the use of public funds through or from the use of the
12issuance of tax-exempt bonds, payments in lieu of taxes, property
13tax abatements, lotteries, sales taxes, or levies on parking, hotels,
14alcohol, car rentals, cigarettes, or other goods or services.

15(e) “Resale” includes any form of transfer or alienation, or
16offering for transfer or alienation, of possession or entitlement to
17possession of an event ticket from one person to another, with or
18without consideration, whether in person or by means of telephone,
19mail, delivery service, facsimile, internet, e-mail, or other
20electronic means. “Resale” shall not include the initial sale of an
21event ticket by a ticket issuer.

22(f) “Resale ticket agent” means any person engaging in the
23resale of tickets or any person providing a physical or electronic
24marketplace for the sale or resale of event tickets by other persons.
25A “resale ticket agent” shall not include a person who resells no
26more than 80 event tickets in any 12-month period.

27(g) “Ticket issuer” means any person that makes event tickets
28available, directly or indirectly for initial sale, to the general
29public, and may include the operator of a venue, the sponsor or
30promoter of an event, a sports team participating in an event or a
31league whose teams are participating in an event, a theater
32company, musical group, or similar participant in an event, or an
33agent of any such person. “Ticket issuer” shall not include a
34person involved in, or facilitating, event ticket resale, an officially
35appointed agent of an air carrier, ocean carrier, or motor coach
36carrier who purchases or sells tickets in conjunction with a tour
37package accomplished through a primary event promoter or his
38or her agent by written agreement, or a nonprofit charitable
39organization that is exempt from tax under Section 501(c)(3) of
40the Internal Revenue Code.

P4    1(h) “Venue” means the theater, stadium, field, hall, or other
2facility where an event takes place.

3

begin insert22501.end insert  

(a) Except as otherwise provided in this chapter, it
4shall be unlawful for any ticket issuer to do any of the following:

5(1) Prohibit or restrict the resale or offering for resale of an
6event ticket by a lawful possessor thereof.

7(2) Purport to impose license or contractual terms on the initial
8sale of event tickets that prohibit resale of the event ticket,
9including, but not limited to, terms printed on the back of a physical
10event ticket, or that restrict the price or other terms and conditions
11under which an event ticket may be resold or transferred.

12(3) Require the purchaser of an event ticket, whether for a single
13event or for a series or season of events, to agree not to resell the
14event ticket, or to resell the event ticket only through a specific
15means approved by the ticket issuer.

16(4) Bring legal action based on an unlawful prohibition or
17restriction on the resale of an event ticket against any of the
18following:

19(A) A purchaser who resells or offers to resell an event ticket
20without permission of the ticket issuer or in violation of a
21restriction purportedly imposed by the ticket issuer.

22(B) A person or persons who facilitate or provide services for
23the resale of event tickets without the permission of the ticket issuer
24or in violation of a restriction purportedly imposed by the ticket
25issuer.

26(C) An operator of a physical or electronic marketplace in which
27an event ticket is offered for resale without the permission of the
28ticket issuer or in violation of a restriction purportedly imposed
29by the ticket issuer.

30(4) Impose a penalty on a ticket purchaser that resells or offers
31to resell an event ticket without permission of the ticket issuer or
32in violation of a restriction purportedly imposed by the ticket issuer
33or treat that ticket purchaser in any material way less favorably
34than a similarly situated ticket purchaser that does not resell or
35offer to resell an event ticket or that complies with any resale
36restrictions purportedly imposed by the ticket issuer.

37(5) Employ technological means for the purpose, or with the
38foreseeable effect of, prohibiting or restricting the resale of event
39tickets, including, but not limited to, issuing event tickets in an
40electronic form that is not readily transferrable to a subsequent
P5    1 purchaser or conditioning entry into the venue on presentation of
2a token, like the original purchaser’s credit card or state-issued
3identification card, that cannot be readily transferred to a
4subsequent purchaser.

5(6) Seek to limit or restrict the price, or to impose a minimum
6or maximum price, at which an event ticket may be resold.

7(b) Except as otherwise provided in this chapter, it shall be
8unlawful for a resale ticket agent or ticket issuer to fail to meet
9the requirements of Section 22503.

10

begin insert22502.end insert  

(a) A resale ticket agent or ticket issuer shall maintain
11a toll-free telephone number for complaints and inquiries regarding
12its activities in the sale or resale of event tickets.

13(b) A resale ticket agent or ticket issuer shall implement and
14reasonably publicize a standard refund policy that meets the
15minimum standards stated in subdivision (c).

16(c) A standard refund policy shall do the following:

17(1) Provide a consumer who purchases an event ticket a full
18refund if the event is canceled before the scheduled occurrence of
19the event and is not rescheduled, the event ticket received by the
20purchaser is counterfeited, the event ticket is canceled by the ticket
21issuer for nonpayment by the original purchaser or for any reason
22other than an act or omission of the consumer, the event ticket
23materially, and to the detriment of the consumer, fails to conform
24to the description provided by the seller or reseller, or the event
25ticket was not delivered to the consumer prior to the occurrence
26of the event, unless the failure of delivery was due to any act or
27omission of the consumer.

28(2) Include in a full refund the full price paid by the consumer
29for the event ticket, together with any fees charged in connection
30with that purchase, including, but not limited to, convenience fees,
31processing fees, at-home printing charges, shipping and handling
32charges, and delivery fees.

33(d) A standard refund policy may condition entitlement to a
34refund upon timely return of the event ticket purchased and may
35include reasonable safeguards against abuse of the policy.

36(e) Nothing in this section shall be construed to prohibit any
37person subject to this section from implementing consumer
38protection policies that exceed the minimum standards set forth
39in this section and that are otherwise in compliance with this
40chapter.

P6    1

begin insert22503.end insert  

(a) (1) A resale agent or ticket issuer that violates this
2chapter shall be subject to a civil action brought in the name of
3the people of the State of California by the Attorney General. The
4civil action may either enjoin further violation of this chapter by
5the defendant or impose a civil penalty, not to exceed one hundred
6thousand dollars ($100,000), in a amount equal to the greater of
7the actual monetary loss suffered by those residents of the state
8or an amount determined under paragraph (2). Payment of the
9civil penalty shall be made pursuant to the provisions of subdivision
10(c) of Section 17206.

11(2) The amount of damages determined under this paragraph
12shall be calculated by multiplying the number of violations of this
13chapter by an amount not greater than one hundred dollars ($100).
14For the purposes this section, each ticket sold or offered for sale
15in violation of this chapter shall constitute a separate violation.

16(3) Notwithstanding the civil penalty limitation in paragraph
17(1), a court may increase a civil penalty to an amount equal to not
18more than three times the amount otherwise available under this
19subdivision if the defendant was previously found to have violated
20this chapter in a civil action.

21(b) In the case of a successful action under subdivision (a), a
22court, in its discretion, may award the costs of the action and
23reasonable attorney’s fees.

24(c) Any claim made under this section shall be filed with a court
25of competent jurisdiction within two calendar years after the
26 violation.

27

begin insert22504.end insert  

A person who intentionally uses or sells software to
28circumvent a security measure, an access control system, or other
29control or measure on a ticket issuer’s or resale ticket agent’s
30Internet Web site that is used to ensure an equitable ticket buying
31process, is guilty of a misdemeanor.

32

begin insert22505.end insert  

Nothing in this chapter shall be interpreted to invalidate
33restrictions on the resale of event tickets imposed by either:

34(a) Sponsors or promoters of events intended solely to benefit
35charitable endeavors for which all event tickets are distributed
36free of charge.

37(b) Nonprofit education institutions with respect to athletic
38events involving athletes or teams of those institutions, to the extent
39the restrictions apply to event tickets initially distributed to
40students, faculty, staff members, or alumni without charge or to
P7    1members of a bona fide booster organization consisting of those
2making substantial financial contributions to the institution.

3

begin insert22506.end insert  

The Department of Consumer Affairs may issue
4regulations to implement the provisions of this chapter, including,
5but not limited to, regulations that do both the following:

6(a) Prescribe allowable methods for marking of public sales
7tickets, including, but not limited to, the marking of event tickets
8that are not tangible.

9(b) Define categories of persons otherwise subject to this section
10who are temporarily or indefinitely excluded from the provisions
11of this chapter, or against whom the Attorney General determines
12to forebear from enforcement of the chapter in whole or in part,
13if the Attorney General determines the activities of those persons
14have a relatively insignificant impact on commerce in event tickets.

15

begin insert22507.end insert  

A ticket seller shall maintain records of ticket sales,
16deposits, and refunds.

17

begin insert22508.end insert  

Nothing in this chapter prohibits any local agency from
18imposing any local fees or taxes.

end insert
19begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California
27Constitution.

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begin delete
28

SECTION 1.  

Section 22500 of the Business and Professions
29Code
is amended to read:

30

22500.  

(a) A ticket seller shall have a permanent business
31address from which tickets may only be sold and that address shall
32be included in any advertisement or solicitation, and shall be duly
33licensed as may be required by a local jurisdiction.

34(b) A violation of this section shall constitute a misdemeanor
35punishable by imprisonment in a county jail not exceeding six
36months, or by fine not exceeding two thousand five hundred dollars
37($2,500), or by both.

38(c) A person who engages, has engaged, or proposes to engage
39in a violation of this section shall be liable for a civil penalty not
40to exceed two thousand five hundred dollars ($2,500) for each
P8    1violation, which may be assessed and recovered in a civil action
2brought in the name of the people of the State of California by the
3Attorney General, or a district attorney, or a city attorney of a city
4having a population in excess of 750,000, and, with the consent
5of the district attorney, by a city prosecutor in any city, county, or
6city and county having a full-time prosecutor in any court of
7competent jurisdiction. Payment of the civil penalty shall be made
8pursuant to the provisions of subdivision (b) of Section 17206. For
9the purposes of this section, each ticket sold or offered for sale in
10violation of this section shall constitute a separate violation. The
11remedies provided by this section are cumulative to each other and
12to the remedies or penalties available under all of the other laws
13of this state.

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