Amended in Assembly April 18, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 329


Introduced by Assembly Member Pan

begin insert

(Coauthors: Assembly Members Fong and Wieckowski)

end insert
begin insert

(Coauthors: Senators Beall and Cannella)

end insert

February 13, 2013


An act tobegin delete repeal and addend deletebegin insert amend Sections 22501, 22502, 22502.1, 22502.2, 22502.3, and 22507 of, to amend the heading ofend insert Chapter 21 (commencing with Section 22500) of Division 8 ofbegin insert, to amend and renumber Section 22500 of, to add Section 22500 to, to repeal Sections 22503.5, 22503.6, and 22511 of, and to repeal and add Sections 22503, 22504, 22506, 22508, 22509, and 22510 of,end insert the Business and Professions Code, relating tobegin delete ticket issuersend deletebegin insert businessend insert.

LEGISLATIVE COUNSEL’S DIGEST

AB 329, as amended, Pan. Ticket issuers andbegin delete resale ticket agents.end deletebegin insert resellers.end insert

Existing law providesbegin insert for theend insert comprehensive regulation of ticket sellers,begin delete including requiringend deletebegin insert and, among other things, requiresend insert disclosure of specified information to consumersbegin delete, maintaining records,end deletebegin insert and the maintenance of recordsend insert andbegin delete maintainingend delete a permanent business addressbegin delete, among other provisionsend delete. Existing law provides that a violation of the laws regulating ticket sellers is a misdemeanor.

This bill wouldbegin delete repeal andend delete revisebegin insert and recastend insert these provisions to regulate ticket issuers andbegin delete resale ticket agentsend deletebegin insert extend certain requirements to ticket resellersend insert, as defined, regarding, among other things, restrictions placed on the resale of event tickets,begin insert as defined,end insert consumer protection requirements, and the imposition of civil penaltiesbegin delete based onend deletebegin insert forend insert a violation ofbegin delete these provisionsend deletebegin insert specified requirementsend insert. The bill would further provide that a person who intentionally uses software to circumvent abegin insert security measure, access control system, or other control orend insert measure on a ticket issuer’s orbegin delete resaleend delete ticketbegin delete agent’s websiteend deletebegin insert reseller’s Internet Web siteend insert that is used to ensure an equitable ticket buying process is guilty of a misdemeanor.begin insert The bill would authorize the Department of Consumer Affairs to issue regulations to implement these provisions, as specified.end insert

Because this bill would create a new crimebegin insert and expand the scope of an existing crimeend insert, it would impose a state-mandated local program.

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.

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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertThe heading of Chapter 21 (commencing with
2Section 22500) of Division 8 of the end insert
begin insertBusiness and Professions Codeend insert
3begin insert is amended to read:end insert

4 

5Chapter  21. Ticketbegin delete Sellersend deletebegin insert Issuers and Ticket Resellersend insert
6

 

7begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 22500 is added to the end insertbegin insertBusiness and Professions
8Code
end insert
begin insert, to read:end insert

begin insert
9

begin insert22500.end insert  

For purposes of this chapter:

10(a) “Event” means any concert, theatrical performance, sporting
11event, exhibition, show, or similar scheduled activity taking place
12in the state that is open to the general public, for which an
13admission fee is charged, and that is held in a venue
14accommodating more than 1,000 people, including, but not limited
15to, venues for which public funding has been provided for the
16construction, maintenance, or operation of the venue or any
17infrastructure related thereto or that are located on property owned
18by a municipality or other government entity.

P3    1(b) “Event ticket” means any physical, electronic, or other form
2of a certificate, document, voucher, token, or other evidence
3 indicating that the bearer, possessor, or person entitled to
4possession through purchase or otherwise has either a revocable
5or irrevocable right, privilege, or license to enter an event venue
6or occupy a particular seat or area in a venue with respect to one
7or more events or an entitlement to purchase that right, privilege,
8or license with respect to one or more future events.

9(c) “Online marketplace” means an Internet Web site that
10provides a forum for the resale of event tickets. “Online
11marketplace” does not include the Internet Web site of a reseller
12or ticket issuer, unless that reseller or ticket issuer provides a
13forum for the resale of event tickets on its Internet Web site.

14(d) “Person” means any natural person, partnership,
15corporation, association, or other legal entity.

16(e) “Public funding” means the provision by the state, any
17county, city and county, municipality, or other subdivision of the
18state, or by any local development corporation or similar
19instrumentality whose creation was authorized by the state or by
20any county, city and county, municipality, or other subdivision of
21the state, of funding, grants, payments, or financial support,
22including the use of public funds through or from the use of the
23issuance of tax-exempt bonds, payments in lieu of taxes, property
24tax abatements, lotteries, sales taxes, or levies on parking, hotels,
25alcohol, car rentals, cigarettes, or other goods or services.

26(f) “Resale” includes any form of transfer or alienation, or
27offering for transfer or alienation, of possession or entitlement to
28possession of an event ticket from one person to another, with or
29without consideration, whether in person or by means of telephone,
30mail, delivery service, facsimile, Internet, email, or other electronic
31means. “Resale” does not include the initial sale of an event ticket
32by a ticket issuer.

33(g) “Ticket issuer” means any person that makes event tickets
34available, directly or indirectly for initial sale, to the general
35public, and may include the operator of a venue, the sponsor or
36promoter of an event, a sports team participating in an event or a
37league whose teams are participating in an event, a theater
38company, musical group, or similar participant in an event, or an
39agent of any such person. “Ticket issuer” does not include a person
40involved in, or facilitating, event ticket resale, an officially
P4    1appointed agent of an air carrier, ocean carrier, or motor coach
2carrier who purchases or sells event tickets in conjunction with a
3tour package accomplished through a primary event promoter or
4his or her agent by written agreement, or a nonprofit charitable
5organization that is exempt from tax under Section 501(c)(3) of
6the Internal Revenue Code.

7(h) “Ticket reseller” means any person engaging in the resale
8of event tickets. “Ticket reseller” does not include a person who
9resells no more than 80 event tickets in any 12-month period.

10(i) “Venue” means the theater, stadium, field, hall, or other
11facility where an event takes place.

end insert
12begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 22500 of the end insertbegin insertBusiness and Professions Codeend insert
13begin insert is amended and renumbered to read:end insert

14

begin delete22500.end delete
15begin insert22500.5.end insert  

(a) A ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert shall have
16a permanent business address from which tickets may only be sold
17and that address shall be included in any advertisement or
18solicitationbegin delete, andend deletebegin insert. A ticket issuer or ticket resellerend insert shall be duly
19licensed as may be required by any local jurisdiction.

20(b) A violation of this section shall constitute a misdemeanor
21punishable by imprisonment in a county jail not exceeding six
22months, or by fine not exceeding two thousand five hundred dollars
23($2,500), or by both.

24(c) Any person who engages, has engaged, or proposes to engage
25in a violation of this section shall be liable for a civil penalty not
26to exceed two thousand five hundred dollars ($2,500) for each
27violation, which may be assessed and recovered in a civil action
28brought in the name of the people of the State of California by the
29Attorney General, or a district attorney, or a city attorney of a city
30having a population in excess of 750,000, and, with the consent
31of the district attorney, by a city prosecutor in any city, county, or
32city and county having a full-time prosecutor in any court of
33competent jurisdiction. Payment of the civil penalty shall be made
34pursuant to the provisions of subdivision (b) of Section 17206. For
35the purposes of this section, eachbegin insert eventend insert ticket sold or offered for
36sale in violation of this section shall constitute a separate violation.
37The remedies provided by this section are cumulative to each other
38and to the remedies or penalties available under all other laws of
39this state.

P5    1begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 22501 of the end insertbegin insertBusiness and Professions Codeend insert
2begin insert is amended to read:end insert

3

22501.  

A ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert shall maintain
4records ofbegin insert eventend insert ticket sales, deposits, and refunds.

5begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 22502 of the end insertbegin insertBusiness and Professions Codeend insert
6begin insert is amended to read:end insert

7

22502.  

begin insert(a)end insertbegin insertend insert A ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert shall, prior
8to sale, disclose to the purchaser by means of description or a map
9the location of the seat or seats represented by thebegin insert eventend insert ticket or
10tickets.

begin insert

11(b) A ticket issuer or ticket reseller shall disclose that a service
12charge is imposed by the ticket issuer or ticket reseller and is added
13to the actual event ticket price by the issuer or ticket reseller in
14any advertisement or promotion for any event by the ticket issuer
15or ticket reseller.

end insert
begin insert

16(c) A ticket issuer or ticket reseller who includes tickets to an
17event in conjunction with the sale of a tour or event package,
18including, among other things, transportation, meals, lodging, or
19beverages, shall disclose in any advertisements or promotional
20materials the price charged or allotted for the event tickets.

end insert
21begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 22502.1 of the end insertbegin insertBusiness and Professions Codeend insert
22begin insert is amended to read:end insert

23

22502.1.  

begin insert(a)end insertbegin insertend insert It shall be unlawful for a ticketbegin delete sellerend deletebegin insert issuer or
24ticket resellerend insert
to contract for the sale ofbegin insert eventend insert tickets or accept
25consideration for payment in full or for a deposit for the sale of
26begin insert eventend insert tickets unless the ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert meets
27one or more of the following requirements:

begin delete

28(a)

end delete

29begin insert(1)end insert The ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert has thebegin insert eventend insert ticket
30in his or her possession.

begin delete

31(b)

end delete

32begin insert(2)end insert The ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert has a written
33contract to obtain the offeredbegin insert eventend insert ticket at a certain price from a
34person in possession of thebegin insert eventend insert ticket or from a person who has
35a contractual right to obtain thebegin insert eventend insert ticket from the primary
36contractor.

begin delete

37(c)

end delete

38begin insert(3)end insert The ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert informs the
39purchaser orally at the time of the contract or receipt of
40consideration, whichever is earlier, and in writing within two
P6    1business days, that the seller does not have possession of thebegin insert eventend insert
2 tickets, has no contract to obtain the offeredbegin insert eventend insert ticket at a certain
3price from a person in possession of thebegin insert eventend insert ticket or from a
4person who has a contractual right to obtain thebegin insert eventend insert ticket from
5the primary contractor, and may not be able to supply thebegin insert eventend insert
6 ticket at the contracted price or range of prices.

begin delete

7Nothing

end delete

8begin insert(b)end insertbegin insertend insertbegin insertNothingend insert in this section shall prohibit a ticketbegin delete sellerend deletebegin insert issuer or
9ticket resellerend insert
from accepting a deposit from a prospective
10purchaser as part of an agreement that the ticketbegin delete sellerend deletebegin insert issuer or
11ticket resellerend insert
will make best efforts to obtainbegin delete aend deletebegin insert an eventend insert ticket at
12a specified price or price range and within a specified time,
13provided that the ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert informs the
14purchaser orally at the time of the contract or receipt of
15consideration, whichever is earlier, and in writing within two days,
16of the terms of the deposit agreement, and includes in the oral and
17written notice the disclosures otherwise required by this section.

18begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 22502.2 of the end insertbegin insertBusiness and Professions Codeend insert
19begin insert is amended to read:end insert

20

22502.2.  

It shall be unlawful for a ticketbegin delete sellerend deletebegin insert issuer or ticket
21resellerend insert
to represent that he or she can deliver or cause to be
22deliveredbegin delete aend deletebegin insert an eventend insert ticket at a specific price or within a specific
23price range and to fail to deliver within a reasonable time or by a
24contracted time thebegin insert eventend insert tickets at or below the price stated or
25 within the range of prices stated.

26begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 22502.3 of the end insertbegin insertBusiness and Professions Codeend insert
27begin insert is amended to read:end insert

28

22502.3.  

In addition to other remedies, a ticketbegin delete sellerend deletebegin insert issuer or
29ticket resellerend insert
who violates Section 22502.1 or 22502.2 and fails
30to supplybegin delete aend deletebegin insert an eventend insert ticket at or below a contracted price or within
31a contracted price range shall be civilly liable to thebegin insert eventend insert ticket
32purchaser for two times the contracted price of thebegin insert eventend insert ticket, in
33addition to any sum expended by the purchaser in nonrefundable
34expenses for attending or attempting to attend the event in good
35faith reliance on seat or space availability, and reasonable
36attorney’s fees and court costs.

37begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 22503 of the end insertbegin insertBusiness and Professions Codeend insert
38begin insert is repealed.end insert

begin delete
39

22503.  

A ticket seller, as used in this chapter, means any person
40who for compensation, commission, or otherwise sells admission
P7    1tickets to sporting, musical, theatre, or any other entertainment
2event.

end delete
3begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 22503 is added to the end insertbegin insertBusiness and
4Professions Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert22503.end insert  

(a) Except as otherwise provided in this chapter, it
6shall be unlawful for any ticket issuer or its authorized agent to
7do any of the following:

8(1) Impose any terms or conditions restricting the transferability
9of an event ticket or otherwise prohibit a person from reselling
10the event ticket on an online marketplace not owned or operated
11by the ticket issuer or its authorized agent.

12(2) Impose any terms or conditions restricting the printing or
13forwarding of the event ticket, or impose any other pickup or
14transfer restrictions, for the purpose or with the foreseeable effect
15of prohibiting the resale or gratuitous transfer of an event ticket.

16(3) Employ technological measures for the purpose or with the
17foreseeable effect of prohibiting or restricting the resale or
18gratuitous transfer of an event ticket, including, but not limited to,
19issuing an event ticket in an electronic form that is not readily
20transferrable to a subsequent purchaser or user, or conditioning
21entry into the venue on presentation of a token, like the original
22purchaser’s credit card or state-issued identification card, that
23cannot be readily transferred to a subsequent purchaser or user.

24(4) Seek to limit or restrict the price, or to impose a minimum
25or maximum price, at which an event ticket may be resold.

26(b) Except as otherwise provided in this chapter, it shall be
27unlawful for a ticket issuer or reseller to fail to meet the
28requirements of Section 22504.

end insert
29begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 22503.5 of the end insertbegin insertBusiness and Professions Codeend insert
30begin insert is repealed.end insert

begin delete
31

22503.5.  

This chapter does not apply to any primary contractor
32or seller of tickets for the primary contractor operating under a
33written contract with the primary contractor.

34“Primary contractor” means the person or organization who is
35responsible for the event for which tickets are being sold.

end delete
36begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 22503.6 of the end insertbegin insertBusiness and Professions Codeend insert
37begin insert is repealed.end insert

begin delete
38

22503.6.  

This chapter does not apply to an officially appointed
39agent of an air carrier, ocean carrier or motor coach carrier who
40purchases or sells tickets in conjunction with a tour package
P8    1accomplished through the primary event promoter or his or her
2agent by written agreement.

end delete
3begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 22504 of the end insertbegin insertBusiness and Professions Codeend insert
4begin insert is repealed.end insert

begin delete
5

22504.  

This chapter does not apply to any person who sells six
6tickets or less to any one single event, provided the tickets are sold
7off the premises where the event is to take place, including, but
8not limited to, designated parking areas and points of entry to the
9event.

end delete
10begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 22504 is added to the end insertbegin insertBusiness and
11Professions Code
end insert
begin insert, to read:end insert

begin insert
12

begin insert22504.end insert  

(a) A ticket issuer or ticket reseller shall maintain a
13toll-free telephone number for complaints and inquiries regarding
14its activities in the sale or resale of event tickets.

15(b) A ticket issuer or ticket reseller shall implement and
16reasonably publicize a standard refund policy that meets, at the
17minimum, the requirements of Section 22506. A standard refund
18policy may condition entitlement to a refund upon timely return
19of the event ticket purchased and may include reasonable
20safeguards against abuse of the policy.

21(c) Nothing in this section shall be construed to prohibit any
22person subject to this section from implementing consumer
23protection policies that exceed the minimum standards set forth
24in this section and that are otherwise in compliance with this
25chapter.

end insert
26begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 22506 of the end insertbegin insertBusiness and Professions Codeend insert
27begin insert is repealed.end insert

begin delete
28

22506.  

Any partial or full deposit received by a ticket seller
29on a future event for which tickets are not available shall be
30refundable except for a service charge of not more than 10 percent
31until tickets for the event are actually available.

end delete
32begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 22506 is added to the end insertbegin insertBusiness and
33Professions Code
end insert
begin insert, to read:end insert

begin insert
34

begin insert22506.end insert  

A ticket issuer or ticket reseller shall do all of the
35following:

36(a) Provide a consumer who purchases an event ticket a full
37refund if the event is canceled before the scheduled occurrence of
38the event and is not rescheduled, the event ticket received by the
39purchaser is counterfeited, the event ticket is canceled by the ticket
40issuer for nonpayment by the original purchaser or for any reason
P9    1other than an act or omission of the consumer, the event ticket
2materially, and to the detriment of the consumer, fails to conform
3to the description provided by the seller or reseller, or the event
4ticket was not delivered to the consumer prior to the occurrence
5of the event, unless the failure of delivery was due to any act or
6omission of the consumer.

7(b) Include in the full refund required under subdivision (a) the
8full price paid by the consumer for the event ticket, together with
9any fees charged in connection with that purchase, including, but
10not limited to, convenience fees, processing fees, at-home printing
11charges, shipping and handling charges, and delivery fees.

end insert
12begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 22507 of the end insertbegin insertBusiness and Professions Codeend insert
13begin insert is amended to read:end insert

14

22507.  

begin deleteThe ticket price of any event which is canceled,
15postponed, or rescheduled shall be fully refunded to the purchaser
16by the ticket seller upon request. end delete
begin insert(a)end insertbegin insertend insert Any local jurisdiction may
17require a ticketbegin delete sellerend deletebegin insert issuer or ticket resellerend insert to provide a bond of
18not more than fifty thousand dollars ($50,000) to provide for any
19refunds that may be required by this section.

begin insert

20(b) Nothing in this chapter prohibits any local agency from
21imposing any local fees or taxes.

end insert
22begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 22508 of the end insertbegin insertBusiness and Professions Codeend insert
23begin insert is repealed.end insert

begin delete
24

22508.  

A ticket seller shall disclose that a service charge is
25imposed by the ticket seller and is added to the actual ticket price
26by the seller in any advertisement or promotion for any event by
27the ticket seller.

end delete
28begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 22508 is added to the end insertbegin insertBusiness and
29Professions Code
end insert
begin insert, to read:end insert

begin insert
30

begin insert22508.end insert  

A person who intentionally uses or sells software to
31circumvent a security measure, access control system, or other
32control or measure on a ticket issuer’s or ticket reseller’s Internet
33Web site that is used to ensure an equitable ticket buying process
34is guilty of a misdemeanor.

end insert
35begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 22509 of the end insertbegin insertBusiness and Professions Codeend insert
36begin insert is repealed.end insert

begin delete
37

22509.  

Any ticket seller who includes tickets to an event in
38conjunction with the sale of a tour or event package, including,
39among other things, transportation, meals, lodging, or beverages,
P10   1shall disclose in any advertisements or promotional materials the
2price charged or allotted for the tickets.

end delete
3begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 22509 is added to the end insertbegin insertBusiness and
4Professions Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert22509.end insert  

Nothing in this chapter shall be construed to invalidate
6restrictions on the resale of event tickets imposed by either of the
7following:

8(a) Sponsors or promoters of events intended solely to benefit
9charitable endeavors for which all event tickets are distributed
10free of charge.

11(b) Nonprofit educational institutions with respect to athletic
12events involving athletes or teams of those institutions, to the extent
13the restrictions apply to event tickets initially distributed to
14students, faculty, staff members, or alumni without charge or to
15members of a bona fide booster organization consisting of those
16making substantial financial contributions to the institution.

end insert
17begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 22510 of the end insertbegin insertBusiness and Professions Codeend insert
18begin insert is repealed.end insert

begin delete
19

22510.  

Nothing in this chapter prohibits any local agency from
20imposing any local fees or taxes.

end delete
21begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 22510 is added to the end insertbegin insertBusiness and
22Professions Code
end insert
begin insert, to read:end insert

begin insert
23

begin insert22510.end insert  

The Department of Consumer Affairs may issue
24regulations to implement the provisions of this chapter, including,
25but not limited to, regulations that do both of the following:

26(a) Prescribe allowable methods for marking of public sales
27tickets, including, but not limited to, the marking of event tickets
28that are not tangible.

29(b) Define categories of persons otherwise subject to this chapter
30who are temporarily or indefinitely excluded from the provisions
31of this chapter, or against whom the Attorney General determines
32to forbear the enforcement of this chapter in whole or in part, if
33the Attorney General determines the activities of those persons
34have a relatively insignificant impact on commerce in event tickets.

end insert
35begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 22511 of the end insertbegin insertBusiness and Professions Codeend insert
36begin insert is repealed.end insert

begin delete
37

22511.  

This chapter does not apply to any nonprofit charitable
38tax-exempt organization selling tickets to an event sponsored by
39the organization.

end delete
P11   1begin insert

begin insertSEC. 25.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
2to Section 6 of Article XIII B of the California Constitution because
3the only costs that may be incurred by a local agency or school
4district will be incurred because this act creates a new crime or
5infraction, eliminates a crime or infraction, or changes the penalty
6for a crime or infraction, within the meaning of Section 17556 of
7the Government Code, or changes the definition of a crime within
8the meaning of Section 6 of Article XIII B of the California
9Constitution.

end insert
begin delete
10

SECTION 1.  

Chapter 21 (commencing with Section 22500)
11of Division 8 of the Business and Professions Code is repealed.

12

SEC. 2.  

Chapter 21 (commencing with Section 22500) is added
13to Division 8 of the Business and Professions Code, to read:

14 

15Chapter  21. Ticket Issuers and Resale Ticket Agents
16

 

17

22500.  

For purposes of this chapter:

18(a) “Event” means any concert, theatrical performance, sporting
19event, exhibition, show, or similar scheduled activity taking place
20in the state that is open to the general public, for which an
21admission fee is charged, and that is held in a venue
22accommodating more than 1,000 people, including, but not limited
23to, venues for which public funding has been provided for the
24construction, maintenance, or operation of the venue or any
25infrastructure related thereto or that are located on property owned
26by a municipality or other government entity.

27(b) “Event ticket” means any physical, electronic, or other form
28of a certificate, document, voucher, token, or other evidence
29 indicating that the bearer, possessor, or person entitled to
30possession through purchase or otherwise has either a revocable
31or irrevocable right, privilege, or license to enter an event venue
32or occupy a particular seat or area in a venue with respect to one
33or more events or an entitlement to purchase that right, privilege,
34or license with respect to one or more future events.

35(c)


36“Person” means any natural person, partnership, corporation,
37association, or other legal entity.

38(d)


39“Public funding” means the provision by the state, any county,
40city and county, municipality, or other subdivision of the state, or
P12   1by any local development corporation or similar instrumentality
2whose creation was authorized by the state or by any county, city
3and county, municipality, or other subdivision of the state, of
4funding, grants, payments, or financial support, including the use
5of public funds through or from the use of the issuance of
6tax-exempt bonds, payments in lieu of taxes, property tax
7abatements, lotteries, sales taxes, or levies on parking, hotels,
8alcohol, car rentals, cigarettes, or other goods or services.

9(e)


10“Resale” includes any form of transfer or alienation, or offering
11for transfer or alienation, of possession or entitlement to possession
12of an event ticket from one person to another, with or without
13consideration, whether in person or by means of telephone, mail,
14delivery service, facsimile, internet, e-mail, or other electronic
15means. “Resale” shall not include the initial sale of an event ticket
16by a ticket issuer.

17(f) “Resale ticket agent” means any person engaging in the
18resale of tickets or any person providing a physical or electronic
19marketplace for the sale or resale of event tickets by other persons.
20 A “resale ticket agent” shall not include a person who resells no
21more than 80 event tickets in any 12-month period.

22(g)


23“Ticket issuer” means any person that makes event tickets
24available, directly or indirectly for initial sale, to the general public,
25and may include the operator of a venue, the sponsor or promoter
26of an event, a sports team participating in an event or a league
27whose teams are participating in an event, a theater company,
28musical group, or similar participant in an event, or an agent of
29any such person. “Ticket issuer” shall not include a person involved
30in, or facilitating, event ticket resale, an officially appointed agent
31of an air carrier, ocean carrier, or motor coach carrier who
32purchases or sells tickets in conjunction with a tour package
33accomplished through a primary event promoter or his or her agent
34by written agreement, or a nonprofit charitable organization that
35is exempt from tax under Section 501(c)(3) of the Internal Revenue
36Code.

37(h)


38“Venue” means the theater, stadium, field, hall, or other facility
39 where an event takes place.

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22501.  

(a) Except as otherwise provided in this chapter, it
2shall be unlawful for any ticket issuer to do any of the following:

3(1) Prohibit or restrict the resale or offering for resale of an
4event ticket by a lawful possessor thereof.

5(2) Purport to impose license or contractual terms on the initial
6sale of event tickets that prohibit resale of the event ticket,
7including, but not limited to, terms printed on the back of a physical
8event ticket, or that restrict the price or other terms and conditions
9under which an event ticket may be resold or transferred.

10(3) Require the purchaser of an event ticket, whether for a single
11event or for a series or season of events, to agree not to resell the
12event ticket, or to resell the event ticket only through a specific
13means approved by the ticket issuer.

14(4) Bring legal action based on an unlawful prohibition or
15restriction on the resale of an event ticket against any of the
16following:

17(A) A purchaser who resells or offers to resell an event ticket
18without permission of the ticket issuer or in violation of a
19restriction purportedly imposed by the ticket issuer.

20(B) A person or persons who facilitate or provide services for
21the resale of event tickets without the permission of the ticket
22issuer or in violation of a restriction purportedly imposed by the
23ticket issuer.

24(C) An operator of a physical or electronic marketplace in which
25an event ticket is offered for resale without the permission of the
26ticket issuer or in violation of a restriction purportedly imposed
27by the ticket issuer.

28(4) Impose a penalty on a ticket purchaser that resells or offers
29to resell an event ticket without permission of the ticket issuer or
30in violation of a restriction purportedly imposed by the ticket issuer
31or treat that ticket purchaser in any material way less favorably
32than a similarly situated ticket purchaser that does not resell or
33offer to resell an event ticket or that complies with any resale
34restrictions purportedly imposed by the ticket issuer.

35(5)


36Employ technological means for the purpose, or with the
37foreseeable effect of, prohibiting or restricting the resale of event
38tickets, including, but not limited to, issuing event tickets in an
39electronic form that is not readily transferrable to a subsequent
40 purchaser or conditioning entry into the venue on presentation of
P14   1a token, like the original purchaser’s credit card or state-issued
2identification card, that cannot be readily transferred to a
3subsequent purchaser.

4(6)


5Seek to limit or restrict the price, or to impose a minimum or
6maximum 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 the
9requirements of Section 22503.

10

22502.  

(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.

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22503.  

(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 or
8an amount determined under paragraph (2). Payment of the civil
9penalty 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

22504.  

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

22505.  

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 free
36of 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
P16   1members of a bona fide booster organization consisting of those
2making substantial financial contributions to the institution.

3

22506.  

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, if
13the Attorney General determines the activities of those persons
14have a relatively insignificant impact on commerce in event tickets.

15

22507.  

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

17

22508.  

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

19

SEC. 3.  

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.

end delete


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