Amended in Assembly April 25, 2013

Amended in Assembly April 18, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 329

Introduced by Assembly Member Pan

(Coauthors: Assembly Members Fong and Wieckowski)

(Coauthors: Senators Beall and Cannella)

February 13, 2013

An act to begin delete amend Sections 22501, 22502, 22502.1, 22502.2, 22502.3, and 22507 of, to amend the heading of Chapter 21 (commencing with Section 22500) of Division 8 of, to amend and renumber Section 22500 of, to end delete add Section begin delete 22500 to, to repeal Sections 22503.5, 22503.6, and 22511 of, and to repeal and add Sections 22503, end delete begin delete 22504, 22506, 22508, 22509, and 22510 of, end delete begin insert 22505.5 to end insert the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL’S DIGEST

AB 329, as amended, Pan. Ticket begin delete issuers and resellers. end delete begin insert sellers: equitable online ticket buying process: sale or use of circumventing software. end insert

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 further end delete begin insert additionally end insert 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’s end delete begin insert seller’s end insert 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 crime end 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:

begin delete

SECTION 1.  

The heading of Chapter 21 (commencing with
Section 22500) of Division 8 of the Business and Professions Code
is amended to read:

 

Chapter  21. Ticket Issuers and Ticket Resellers

 

SEC. 2.  

Section 22500 is added to the Business and Professions
Code, to read:

22500.  

For purposes of this chapter:

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

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

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

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

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

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

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

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

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

SEC. 3.  

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

22500.5.  

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

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

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

SEC. 4.  

Section 22501 of the Business and Professions Code
is amended to read:

22501.  

A ticket issuer or ticket reseller shall maintain records
of event ticket sales, deposits, and refunds.

SEC. 5.  

Section 22502 of the Business and Professions Code
is amended to read:

22502.  

(a) A ticket issuer or ticket reseller shall, prior to sale,
disclose to the purchaser by means of description or a map the
location of the seat or seats represented by the event ticket or
tickets.

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

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

SEC. 6.  

Section 22502.1 of the Business and Professions Code
is amended to read:

22502.1.  

(a) It shall be unlawful for a ticket issuer or ticket
reseller to contract for the sale of event tickets or accept
consideration for payment in full or for a deposit for the sale of
event tickets unless the ticket issuer or ticket reseller meets one or
more of the following requirements:

(1) The ticket issuer or ticket reseller has the event ticket in his
or her possession.

(2) The ticket issuer or ticket reseller has a written contract to
obtain the offered event ticket at a certain price from a person in
possession of the event ticket or from a person who has a
contractual right to obtain the event ticket from the primary
contractor.

(3) The ticket issuer or ticket reseller informs the purchaser
orally at the time of the contract or receipt of consideration,
whichever is earlier, and in writing within two business days, that
the seller does not have possession of the event tickets, has no
contract to obtain the offered event ticket at a certain price from
a person in possession of the event ticket or from a person who
has a contractual right to obtain the event ticket from the primary
contractor, and may not be able to supply the event ticket at the
contracted price or range of prices.

(b) Nothing in this section shall prohibit a ticket issuer or ticket
reseller from accepting a deposit from a prospective purchaser as
part of an agreement that the ticket issuer or ticket reseller will
make best efforts to obtain an event ticket at a specified price or
price range and within a specified time, provided that the ticket
issuer or ticket reseller informs the purchaser orally at the time of
the contract or receipt of consideration, whichever is earlier, and
in writing within two days, of the terms of the deposit agreement,
and includes in the oral and written notice the disclosures otherwise
required by this section.

SEC. 7.  

Section 22502.2 of the Business and Professions Code
is amended to read:

22502.2.  

It shall be unlawful for a ticket issuer or ticket reseller
to represent that he or she can deliver or cause to be delivered an
event ticket at a specific price or within a specific price range and
to fail to deliver within a reasonable time or by a contracted time
the event tickets at or below the price stated or within the range
of prices stated.

SEC. 8.  

Section 22502.3 of the Business and Professions Code
is amended to read:

22502.3.  

In addition to other remedies, a ticket issuer or ticket
reseller who violates Section 22502.1 or 22502.2 and fails to supply
an event ticket at or below a contracted price or within a contracted
price range shall be civilly liable to the event ticket purchaser for
two times the contracted price of the event ticket, in addition to
any sum expended by the purchaser in nonrefundable expenses
for attending or attempting to attend the event in good faith reliance
on seat or space availability, and reasonable attorney’s fees and
court costs.

SEC. 9.  

Section 22503 of the Business and Professions Code
is repealed.

SEC. 10.  

Section 22503 is added to the Business and
Professions Code, to read:

22503.  

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

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

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

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

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

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

SEC. 11.  

Section 22503.5 of the Business and Professions
Code is repealed.

SEC. 12.  

Section 22503.6 of the Business and Professions
Code is repealed.

SEC. 13.  

Section 22504 of the Business and Professions Code
is repealed.

SEC. 14.  

Section 22504 is added to the Business and
Professions Code, to read:

22504.  

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

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

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

SEC. 15.  

Section 22506 of the Business and Professions Code
is repealed.

SEC. 16.  

Section 22506 is added to the Business and
Professions Code, to read:

22506.  

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

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

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

SEC. 17.  

Section 22507 of the Business and Professions Code
is amended to read:

22507.  

(a) Any local jurisdiction may require a ticket issuer
or ticket reseller to provide a bond of not more than fifty thousand
dollars ($50,000) to provide for any refunds that may be required
by this section.

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

SEC. 18.  

Section 22508 of the Business and Professions Code
is repealed.

end delete

begin delete SEC. 19. end delete
begin insert SECTION 1. end insert   

Section begin delete 22508 end delete begin insert 22505.5 end insert is added to the Business
and Professions Code, to read:

begin delete 22508. end delete
begin insert 22505.5. end insert   

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

begin delete

SEC. 20.  

Section 22509 of the Business and Professions Code
is repealed.

SEC. 21.  

Section 22509 is added to the Business and
Professions Code, to read:

22509.  

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

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

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

SEC. 22.  

Section 22510 of the Business and Professions Code
is repealed.

SEC. 23.  

Section 22510 is added to the Business and
Professions Code, to read:

22510.  

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

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

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

SEC. 24.  

Section 22511 of the Business and Professions Code
is repealed.

end delete

begin delete SEC. 25. end delete
begin insert SEC. 2. end insert   

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