as amended, Pan. Ticket
begin delete issuers and resellers.end delete
Existing law provides for the comprehensive regulation of ticket sellers, and, among other things, requires disclosure of specified information to consumers and the maintenance of records and a permanent business address. Existing law provides that a violation of the laws regulating ticket sellers is a misdemeanor.
This bill would
begin delete revise and recast these provisions to regulate ticket issuers and extend certain requirements to ticket resellers, as defined, regarding, among other things, restrictions placed on the resale of event tickets, as defined, consumer protection requirements, and the imposition of civil penalties
for a violation of specified requirements. The bill would furtherend delete provide that a person who intentionally uses software to circumvent a security measure, access control system, or other control or measure on a ticket begin delete issuer’s or ticket reseller’send delete Internet Web site that is used to ensure an equitable ticket buying process is guilty of a misdemeanor. begin delete The bill would authorize the Department of Consumer Affairs to issue regulations to implement these provisions, as specified.end delete
Because this bill would create a new crime
begin delete and expand the scope of an existing crimeend delete,
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:
The heading of Chapter 21 (commencing with
2Section 22500) of Division 8 of the Business and Professions Code
3 is amended to read:
Section 22500 is added to the Business and Professions
8Code, to read:
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 forum
13for the resale of event tickets on its Internet Web site.
14(d) “Person” means any natural person, partnership, corporation,
15association, 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 public,
35and may include the operator of a venue, the sponsor or promoter
36of an event, a sports team participating in an event or a league
37whose teams are participating in an event, a theater company,
38musical group, or similar participant in an event, or an agent of
39any such person. “Ticket issuer” does not include a person involved
40in, or facilitating, event ticket resale, an officially appointed agent
P4 1of an air carrier, ocean carrier, or motor coach carrier who
2purchases or sells event tickets in conjunction with a tour package
3accomplished through a primary event promoter or his or her agent
4by written agreement, or a nonprofit charitable organization that
5is exempt from tax under Section 501(c)(3) of the Internal Revenue
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.
Section 22500 of the Business and Professions Code
13 is amended and renumbered to read:
(a) A ticket issuer or ticket reseller shall have a
15permanent business address from which tickets may only be sold
16and that address shall be included in any advertisement or
17solicitation. A ticket issuer or ticket reseller shall be duly licensed
18as may be required by any local jurisdiction.
19(b) A violation of this section shall constitute a misdemeanor
20punishable by imprisonment in a county jail not exceeding six
21months, or by fine not exceeding two thousand five hundred dollars
22($2,500), or by both.
23(c) Any person who engages, has engaged, or proposes to engage
24in a violation of this section shall be liable for a civil penalty not
25to exceed two thousand five hundred dollars ($2,500) for each
26violation, which may be assessed and recovered in a civil action
27brought in the name of the people of the State of California by the
28Attorney General, or a district attorney, or a city attorney of a city
29having a population in excess of 750,000, and, with the consent
30of the district attorney, by a city prosecutor in any city, county, or
31city and county having a full-time prosecutor in any court of
32competent jurisdiction. Payment of the civil penalty shall be made
33pursuant to the provisions of subdivision (b) of Section 17206. For
34the purposes of this section, each event ticket sold or offered for
35sale in violation of this section shall constitute a separate violation.
36The remedies provided by this section are cumulative to each other
37and to the remedies or penalties available under all other laws of
Section 22501 of the Business and Professions Code
40 is amended to read:
A ticket issuer or ticket reseller shall maintain records
2of event ticket sales, deposits, and refunds.
Section 22502 of the Business and Professions Code
4 is amended to read:
(a) A ticket issuer or ticket reseller shall, prior to sale,
6disclose to the purchaser by means of description or a map the
7location of the seat or seats represented by the event ticket or
9(b) A ticket issuer or ticket reseller shall disclose that a service
10charge is imposed by the ticket issuer or ticket reseller and is added
11to the actual event ticket price by the issuer or ticket reseller in
12any advertisement or promotion for any event by the ticket issuer
13or ticket reseller.
14(c) A ticket issuer or ticket reseller who includes tickets to an
15event in conjunction with the sale of a tour or event package,
16including, among other things, transportation, meals, lodging, or
17beverages, shall disclose in any advertisements or promotional
18materials the price charged or allotted for the event tickets.
Section 22502.1 of the Business and Professions Code
20 is amended to read:
(a) It shall be unlawful for a ticket issuer or ticket
22reseller to contract for the sale of event tickets or accept
23consideration for payment in full or for a deposit for the sale of
24event tickets unless the ticket issuer or ticket reseller meets one or
25more of the following requirements:
26(1) The ticket issuer or ticket reseller has the event ticket in his
27or her possession.
28(2) The ticket issuer or ticket reseller has a written contract to
29obtain the offered event ticket at a certain price from a person in
30possession of the event ticket or from a person who has a
31contractual right to obtain the event ticket from the primary
33(3) The ticket issuer or ticket reseller informs the purchaser
34orally at the time of the contract or receipt of consideration,
35whichever is earlier, and in writing within two business days, that
36the seller does not have possession of the event tickets, has no
37contract to obtain the offered event ticket at a certain price from
38a person in possession of the event ticket or from a person who
39has a contractual right to obtain the event ticket from the primary
P6 1contractor, and may not be able to supply the event ticket at the
2contracted price or range of prices.
in this section shall prohibit a ticket
issuer or ticket
4reseller from accepting a deposit from a prospective purchaser as
5part of an agreement that the ticket issuer or ticket reseller will
6make best efforts to obtain an event ticket at a specified price or
7price range and within a specified time, provided that the ticket
8issuer or ticket reseller informs the purchaser orally at the time of
9the contract or receipt of consideration, whichever is earlier, and
10in writing within two days, of the terms of the deposit agreement,
11and includes in the oral and written notice the disclosures otherwise
12required by this section.
Section 22502.2 of the Business and Professions Code
14 is amended to read:
It shall be unlawful for a ticket issuer or ticket reseller
16to represent that he or she can deliver or cause to be delivered an
17event ticket at a specific price or within a specific price range and
18to fail to deliver within a reasonable time or by a contracted time
19the event tickets at or below the price stated or within the range
20of prices stated.
Section 22502.3 of the Business and Professions Code
22 is amended to read:
In addition to other remedies, a ticket issuer or ticket
24reseller who violates Section 22502.1 or 22502.2 and fails to supply
25an event ticket at or below a contracted price or within a contracted
26price range shall be civilly liable to the event ticket purchaser for
27two times the contracted price of the event ticket, in addition to
28any sum expended by the purchaser in nonrefundable expenses
29for attending or attempting to attend the event in good faith reliance
30on seat or space availability, and reasonable attorney’s fees and
Section 22503 of the Business and Professions Code
33 is repealed.
Section 22503 is added to the Business and
35Professions Code, to read:
(a) Except as otherwise provided in this chapter, it
37shall be unlawful for any ticket issuer or its authorized agent to do
38any of the following:
39(1) Impose any terms or conditions restricting the transferability
40of an event ticket or otherwise prohibit a person from reselling the
P7 1event ticket on an online marketplace not owned or operated by
2the ticket issuer or its authorized agent.
3(2) Impose any terms or conditions restricting the printing or
4forwarding of the event ticket, or impose any other pickup or
5transfer restrictions, for the purpose or with the foreseeable effect
6of prohibiting the resale or gratuitous transfer of an event ticket.
7(3) Employ technological measures for the purpose or with the
8foreseeable effect of prohibiting or restricting the resale or
9gratuitous transfer of an event ticket, including, but not limited to,
10issuing an event ticket in an electronic form that is not readily
11transferrable to a subsequent purchaser or user, or conditioning
12entry into the venue on presentation of a token, like the original
13purchaser’s credit card or state-issued identification card, that
14cannot be readily transferred to a subsequent purchaser or user.
15(4) Seek to limit or restrict the price, or to impose a minimum
16or maximum price, at which an event ticket may be resold.
17(b) Except as otherwise provided in this chapter, it shall be
18unlawful for a ticket issuer or reseller to fail to meet the
19requirements of Section 22504.
Section 22503.5 of the Business and Professions
21Code is repealed.
Section 22503.6 of the Business and Professions
23Code is repealed.
Section 22504 of the Business and Professions Code
25 is repealed.
Section 22504 is added to the Business and
27Professions Code, to read:
(a) A ticket issuer or ticket reseller shall maintain a
29toll-free telephone number for complaints and inquiries regarding
30its activities in the sale or resale of event tickets.
31(b) A ticket issuer or ticket reseller shall implement and
32reasonably publicize a standard refund policy that meets, at the
33minimum, the requirements of Section 22506. A standard refund
34policy may condition entitlement to a refund upon timely return
35of the event ticket purchased and may include reasonable
36safeguards against abuse of the policy.
37(c) Nothing in this section shall be construed to prohibit any
38person subject to this section from implementing consumer
39protection policies that exceed the minimum standards set forth
P8 1in this section and that are otherwise in compliance with this
Section 22506 of the Business and Professions Code
4 is repealed.
Section 22506 is added to the Business and
6Professions Code, to read:
A ticket issuer or ticket reseller shall do all of the
9(a) Provide a consumer who purchases an event ticket a full
10refund if the event is canceled before the scheduled occurrence of
11the event and is not rescheduled, the event ticket received by the
12purchaser is counterfeited, the event ticket is canceled by the ticket
13issuer for nonpayment by the original purchaser or for any reason
14other than an act or omission of the consumer, the event ticket
15materially, and to the detriment of the consumer, fails to conform
16to the description provided by the seller or reseller, or the event
17ticket was not delivered to the consumer prior to the occurrence
18of the event, unless the failure of delivery was due to any act or
19omission of the consumer.
20(b) Include in the full refund required under subdivision (a) the
21full price paid by the consumer for the event ticket, together with
22any fees charged in connection with that purchase, including, but
23not limited to, convenience fees, processing fees, at-home printing
24charges, shipping and handling charges, and delivery fees.
Section 22507 of the Business and Professions Code
26 is amended to read:
(a) Any local jurisdiction may require a ticket issuer
28or ticket reseller to provide a bond of not more than fifty thousand
29dollars ($50,000) to provide for any refunds that may be required
30by this section.
31(b) Nothing in this chapter prohibits any local agency from
32imposing any local fees or taxes.
Section 22508 of the Business and Professions Code
34 is repealed.
begin delete 22508end delete is added to the Business
37and Professions Code, to read:
A person who intentionally uses or sells software to
40circumvent a security measure, access control system, or other
P9 1control or measure on a ticket
begin delete issuer’s or ticket reseller’send delete
2 Internet Web site that is used to ensure an equitable ticket buying
3process is guilty of a misdemeanor.
Section 22509 of the Business and Professions Code
5 is repealed.
Section 22509 is added to the Business and
7Professions Code, to read:
Nothing in this chapter shall be construed to invalidate
9restrictions on the resale of event tickets imposed by either of the
11(a) Sponsors or promoters of events intended solely to benefit
12charitable endeavors for which all event tickets are distributed free
14(b) Nonprofit educational institutions with respect to athletic
15events involving athletes or teams of those institutions, to the extent
16the restrictions apply to event tickets initially distributed to
17students, faculty, staff members, or alumni without charge or to
18members of a bona fide booster organization consisting of those
19making substantial financial contributions to the institution.
Section 22510 of the Business and Professions Code
21 is repealed.
Section 22510 is added to the Business and
23Professions Code, to read:
The Department of Consumer Affairs may issue
25regulations to implement the provisions of this chapter, including,
26but not limited to, regulations that do both of the following:
27(a) Prescribe allowable methods for marking of public sales
28tickets, including, but not limited to, the marking of event tickets
29that are not tangible.
30(b) Define categories of persons otherwise subject to this chapter
31who are temporarily or indefinitely excluded from the provisions
32of this chapter, or against whom the Attorney General determines
33to forbear the enforcement of this chapter in whole or in part, if
34the Attorney General determines the activities of those persons
35have a relatively insignificant impact on commerce in event tickets.
Section 22511 of the Business and Professions Code
37 is repealed.
No reimbursement is required by this act pursuant to
40Section 6 of Article XIII B of the California Constitution because
P10 1the only costs that may be incurred by a local agency or school
2district will be incurred because this act creates a new crime or
3infraction, eliminates a crime or infraction, or changes the penalty
4for a crime or infraction, within the meaning of Section 17556 of
5the Government Code, or changes the definition of a crime within
6the meaning of Section 6 of Article XIII B of the California