BILL ANALYSIS                                                                                                                                                                                                    



                                                                 AB 329
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         Date of Hearing:   April 23, 2013


           ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND  
                                   INTERNET MEDIA
                               Ian C. Calderon, Chair

                      AB 329 (Pan) - As Amended:  April 18, 2013
          
         SUBJECT  :   Ticket issuers and resellers

          SUMMARY  :  This bill would revise existing provisions in law which  
         regulate ticket issuers, and in addition would also regulate  
         ticket resellers, as defined, regarding, among other things,  
         restrictions placed on the resale of event tickets and consumer  
         protection requirements.  This bill would further provide that a  
         person who intentionally uses software to circumvent a measure on  
         a ticket issuer's or ticket reseller's website that is used to  
         ensure an equitable ticket buying process is guilty of a  
         misdemeanor.  Specifically,  this bill  :  

         1)Provides the following definitions:

            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  








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              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, e-mail, or other electronic means.  "Resale" shall  
              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" shall 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 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  
              Internal Revenue Code Section 501(c)(3).








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            h)   "Ticket reseller" means any person engaging in the resale  
              of event tickets.  A " ticket reseller" shall 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.

         2)Except as otherwise provided in this chapter, this bill would  
           provide that ticket issuers would be subject to misdemeanor  
           penalties if they did any of the following:

            a)   Impose any terms or conditions on the event ticket  
              transferability 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.

            b)   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.

            c)   Employ technological means for the purpose, or with the  
              foreseeable effect of, prohibiting or restricting the resale  
              of event tickets, including, but not limited to, issuing  
              event tickets in an electronic form that is not readily  
              transferrable to a subsequent purchaser 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.

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

         3)Provides that a person who intentionally uses or sells software  
           to circumvent a security measure, an access control system, or  
           other control or measure on a ticket issuer's or ticket  
           reseller's Internet Web site that is used to ensure an equitable  
           ticket buying process is guilty of misdemeanor.

         4)Allows the Department of Consumer Affairs to issue regulations  








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           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.

         5)   Extends the requirements currently applicable to ticket  
           sellers, as defined, to ticket resellers, as this bill would  
           define them.

         6)  Makes additional technical and conforming changes.

          EXISTING LAW  :

         1)Provides that a "ticket seller" means any person who for  
           compensation, commission, or otherwise sells admission tickets  
           to sporting, musical, theatre, or any other entertainment event.  
            (Business & Professions Code Section 22503.)

         2)Provides that a "Primary contractor" means the person or  
           organization that is responsible for the event for which tickets  
           are being sold.  (Business & Professions Code Section 22503.5.)

         3)Requires that a ticket seller shall have a permanent business  
           address and shall be duly licensed as may be required by any  
           local jurisdiction.  (Business & Professions Code Section  
           22500.)

         4)Further requires that a ticket seller shall maintain records of  
           ticket sales, deposits, and refunds.  (Business & Professions  
           Code Section 22501.)

         5)Requires that a ticket seller must, prior to sale, disclose to  
           the purchaser by means of description or a map the location of  
           the seat or seats represented by the ticket or tickets.   
           (Business & Professions Code Section 22502.)








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         6)Declares that it shall be unlawful for a ticket seller to  
           contract for the sale of tickets or accept consideration for the  
           sale of tickets unless the ticket seller meets one or more of  
           the following requirements:

            a)   The ticket seller has the ticket in his or her possession.  
               [Business & Professions Code Section 22502.1(a).]

            b)   The ticket seller has a written contract to obtain the  
              offered ticket, as specified.  [Business & Professions Code  
              Section 22502.1(b).]

            c)   The ticket seller informs the purchaser that the seller  
              may not be able to supply the ticket at the contracted price  
              or range of prices, as specified.  [Business & Professions  
              Code Section 22502.1(c).]

         7)Allows acceptance of a deposit from a prospective purchaser as  
           part of an agreement that the ticket seller will make best  
           efforts to obtain a ticket at a specified price or price range  
           and within a specified time.  (Business & Professions Code  
           Section 22502.1.)

         8)Makes failure to deliver the tickets within a reasonable time or  
           by a contracted time, at or below the price stated or within the  
           range of prices stated, punishable as a misdemeanor.  (Business  
           & Professions Code Section 22505.)

         9)Provides that in addition to other remedies, a ticket seller who  
           fails to supply a ticket at or below a contracted price or  
           within a contracted price range shall be civilly liable to the  
           ticket purchaser for two times the contracted price of the  
           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.  (Business &  
           Professions Code Section 22502.3.)

         10)Provides that ticket price of any event which is canceled,  
           postponed, or rescheduled shall be fully refunded to the  
           purchaser by the ticket seller upon request.  (Business &  
           Professions Code Section 22507.)

         11)Declares that any deposit on a future event for which tickets  








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           are not available shall be refundable.  (Business & Professions  
           Code Section 22506.)

         12)Allows any local jurisdiction to require a bond of not more  
           than fifty thousand dollars ($50,000) to provide for any  
           necessary refunds.  (Business & Professions Code Section 22507.)

         13)Requires that a ticket seller shall disclose any service  
           charges assessed, as provided.  (Business & Professions Code  
           Section 22508.)

         14)Requires that any ticket seller who includes tickets to an  
           event in conjunction with the sale of a tour or event package,  
           as defined, shall disclose in any advertisements or promotional  
           materials the price charged or allotted for the tickets.   
           (Business & Professions Code Section 22509.)

         15)Allows local agencies to impose local fees or taxes.  (Business  
           & Professions Code Section 22510.)

         16)Exempts from its provisions the following persons:

            a)   Any primary contractor or seller of tickets for the  
              primary contractor, as specified (Business & Professions Code  
              Section 22503.5.);

            b)   Officially appointed agents of an air carrier, ocean  
              carrier or motor coach carrier who purchases or sells tickets  
              in conjunction with a tour package, as specified (Business &  
              Professions Code Section 22503.6.); 

            c)   Persons who sell six tickets or less to any one single  
              event, provided the tickets are sold off the premises  
              (Business & Professions Code Section 22504.);

            d)   Any nonprofit charitable tax-exempt organization selling  
              tickets to an event sponsored by the organization.  (Business  
              & Professions Code Section 22511.)

         17)Provides that a violation of any of these provisions  
           constitutes a misdemeanor, and in addition authorizes 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, as specified.   
           [Business & Professions Code Section 22500(c).]








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         18)Provides that any person who, without the written permission of  
           the owner or operator of the property on which an entertainment  
           event is to be held or is being held, sells a ticket of  
           admission to the entertainment event, which was obtained for the  
           purpose of resale, at any price which is in excess of the price  
           that is printed or endorsed upon the ticket, while on the  
           grounds of or in the stadium, arena, theater, or other place  
           where an event for which admission tickets are sold is to be  
           held or is being held, is guilty of a misdemeanor.  (Penal Code  
           Section 346.)  
          
         FISCAL EFFECT  :  Unknown

          COMMENTS  :   

          1)Stated Need for Legislation  :  According to the author, "There is  
           a growing trend among ticket sellers, to assert that  
           ticketholders should not have full possession of their tickets.   
           Instead, ticket sellers only sell restricted tickets that cannot  
           be sold or given away or can only be transferred, often for a  
           fee, through a website that the ticket seller controls to ensure  
           a monopoly on the tickets.  As an example he points out that,  
           "Fans of the Los Angeles Angels now can only transfer their  
           tickets through such a website, and many consumer advocates,  
           such as Consumer Action, fear that the opportunity to charge for  
           these kinds of ticket transfers will drain the pockets of more  
           and more fans.

           "To further burden fans, restricted tickets are tied to the  
           original purchaser's credit card and photo ID.  If you give or  
           sell your tickets to a family member or friend or to a charity,  
           you will have to obtain their credit card number, or give yours  
           to them, to make the transfer.  Some people generously donate  
           tickets for a particular game from their season tickets to help  
           local charities or volunteer organizations, and these burdens  
           are likely to inhibit these contributions.

           "This bill also prohibits the use of robotic ticket-buying  
           software designed to bombard online box offices with thousands  
           of simultaneous purchase requests, thereby gobbling up the best  
           seats and preventing the average fan from obtaining ticket, and  
           recognizes that there is a secondary market for event tickets,  
           and provides regulation of that market, in order to further  
           protect consumers."








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          2)Recent Amendments:  Major Provisions  :

           Prior to hearing in the committee, this bill was substantially  
           amended.  The original substantive version of the bill, dated  
           March 21, 2013, would have deleted the existing law for ticket  
           sellers contained in the Business and Professions Code in its  
           entirety, and replaced it with a new scheme of regulation.  That  
           version drew many complaints, and according to the author did  
           not reflect the strong consumer protection measure he intended  
           this bill to represent. 

           Therefore, this bill was, again, substantially rewritten, to  
           become a modification of the existing law which is designed to  
           accomplish three major changes; to establish a new scheme of  
           regulation for event ticket resellers; to allow for  
           transferability of event tickets, and; to prohibit the use  
           robotic or automated systems to circumvent fair access of all to  
           purchase an event ticket upon its release to the public.  The  
           April 18, 2013 version, which this analysis reflects, contains  
           these changes.  The major provisions are as follows:

             a)   Definitions  :
            
               This bill would add a definition of "ticket reseller" where  
              one does not currently exist.  It would also change the  
              definition of "ticket seller" to "ticket issuer" and  
              restructure the existing law to encompass the various  
              authorized sellers to be identified in one section, such as  
              tour operators and charities, which heretofore were defined  
              in separate sections of the Chapter.  Please see above for  
              full detailed definition section.

             b)   Regulation of Event Ticket Resellers - Excludes Online  
              Marketplace Sites Such as Stubhub  :

            This bill provides that "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.

              It should be noted that while "online marketplace" is  
              excluded from the provisions of this bill, existing laws  








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              against fraud and unfair business practices will still apply  
              to their activities.  (See Civil Code Sections 1572-3; Penal  
              Code Section 532, et seq.; Business and Professions Code  
              Section 17200, et seq.)

             c)   New Regulation of Event Ticket Sellers:  No Limitation on  
              Transferability or Price of Event Tickets Offered by  
              Resellers  :

              Except as otherwise provided in this chapter, this bill would  
              provide that ticket issuers would be subject to misdemeanor  
              penalties if they did any of the following: 

              i)     Impose any terms or conditions on the event ticket  
                transferability 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.

              ii)    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.

              iii)   Employ technological means for the purpose, or with  
                the foreseeable effect of, prohibiting or restricting the  
                resale of event tickets, including, but not limited to,  
                issuing event tickets in an electronic form that is not  
                readily transferrable to a subsequent purchaser 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.

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

             d)   No Use of Computerized Software Known as "Bots" to  
              Circumvent Equitable Ticket Buying  :

            This bill would declare that anyone who  intentionally uses or  
              sells software to circumvent a security measure, an access  
              control system, or other control or measure on a ticket  








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              issuer's or ticket reseller's Internet Web site that is used  
              to ensure an equitable ticket buying process, is guilty of a  
              misdemeanor.

             e)   Allow Department of Consumer Affairs to Promulgate  
              Regulations  :

              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: 

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

              ii)    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.

          3)Support  :

             a)   Transferability and a Regulated Secondary Market for Event  
              Tickets  :

              eBay writes in support on behalf of Stubhub, "The growing  
              implementation of restrictive ticketing regimes for events is  
              threatening the rights of individual consumers across the  
              United States.  Restricted paperless tickets are tied to the  
              original purchaser's credit card and photo ID and often  
              non-transferable or only transferable on the original  
              seller's preferred website.  With passage of this bill,  
              California will preserve consumer and individual rights to  
              freely transfer concert and sporting event tickets by making  
              it unlawful for a ticket issuer to prohibit or restrict the  
              resale or offering for resale of an event ticket by a lawful  
              possessor of the ticket."

              According to Fan Freedom, "This bill is necessary because  
              ticket sellers such as Ticketmaster, and the artists, sports  
              teams and venues they do business with, use restricted  








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              tickets to limit what fans can and cannot do with our  
              tickets.  Restricted tickets are tied to the original  
              purchaser's credit card and photo ID and are often  
              non-transferable, or only transferable through an artist's,  
              team's, or venue's preferred resale website.  If fans do not  
              have the choice of how a ticket is used, who uses it, how it  
              is transferred or at what price it can be resold, fans do not  
              really own those tickets.

              "For example, the Los Angeles Angels of Anaheim launched  
              their own resale site in partnership with Ticketmaster that  
              would implement minimum prices for resale tickets and  
              restrict season ticket holders from emailing tickets to any  
              other person until 48 hours before a game.  A ticket holder  
              can also only transfer tickets to 10 games over the course of  
              the season.  The terms and conditions also stipulate that  
              transfer of a ticket is prohibited without the consent of the  
              team unless fans use the Angels/Ticketmaster resale website."

              Another line of support comes from non-profits and charities  
              which use tickets as prizes.  Typical of this is the Bonnie  
              J. Addario Lung Cancer Foundation who wrote, "Fundraising is  
              always a challenge for nonprofits.  Donations of sports,  
              theatre and concert tickets play a crucial role in nonprofit  
              groups' fundraising efforts.  "Tickets make wonderful door  
              prizes, raffle prizes and silent auction items.  For this  
              reason, it is critically important to nonprofits that event  
              tickets remain easily transferrable and that sharing, gifting  
              and reselling tickets remain easy for ticket owners and the  
              nonprofits they generously support.  We have been fortunate  
              to receive generous ticket donations from many in the  
              entertainment industry, but it is critical that private  
              individuals continue to have the choice of how to use their  
              tickets, including using them as charitable donations.   
              Fundraising is always difficult, and restricted tickets add  
              extra hurdles on donors that we fear will have a chilling  
              effect on these critical donations."

              Mr. Steve Barrilleaux states, "I own Safe Harbor Pension and  
              Wealth, a small investment firm located in Roseville.  We  
              help people throughout the region with their financial and  
              retirement needs.  For the last six years I have bought into  
              a Sacramento Kings season ticket package with five other  
              friends.  However I am not the original signed purchaser of  
              the tickets package.  My paid share of the ticket package is  








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              seven of the games and I use them to entertain clients and  
              prospect new business.  This is a substantial investment in  
              my new business marketing, and an invaluable perk that I can  
              offer my clients.  If a restrictive policy were put in place  
              that only the original purchaser can use our tickets it would  
              significantly impact my current client relations."

             b)   Line-Jumping Automated Ticket Systems Which Exclude  
              Consumers From   Lower/Originally Priced Event Tickets  :

              The American Bus Association, National Tour Association and  
              the United Motor Coach Association write in strong support of  
              this provision, saying, "This bill cracks down on  
              unscrupulous online ticket sale 'line jumpers' and affirms  
              consumers' property rights by clarifying that event tickets  
              they purchase are their personal property.  We do so on  
              behalf of our more than 3,000 motorcoach and tour packager  
              members nationwide, including more than 259 in California,  
              that rely on their ability to buy and sell event tickets to  
              create tour packages that generate millions of dollars each  
              year for California's economy."

              Most opponents to this measure agree that this provision of  
              AB 329 is a good idea. Typical of this line of letters is  
              that from the San Francisco 49rs, who state, "Although we  
              oppose AB 329, we strongly agree that the use of BOTs and  
              other computer hacking programs should be illegal. ?"



          4)Opposition  : 

             a)   Major League Baseball: No Need for Regulation Which Could  
              Stifle Evolving Consumer Friendly Ticketing Technology  :

             A group of Major League Baseball entities (MLB Entities)  
             state, "For more than a decade, the MLB Entities have  
             innovated in the secondary ticketing area, with millions of  
             tickets having been resold or transferred through supported  
             programs.  In California, these efforts date back to 2000,  
             when the San Francisco Giants pioneered by launching an  
             authorized, consumer-friendly secondary ticket service from  
             its official website.

             "In order to provide California fans with the best ticket  








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             services and conveniences possible, the MLB Entities invest  
             significantly in and support the advancement of electronic  
             ticket technologies in both the primary and secondary ticket  
             markets.  For example, a Giants fan can purchase a game ticket  
             online, download it electronically to his or her smartphone  
             and present the ticket image, as shown on the smartphone  
             screen, for scanning and entry at AT&T Park.  In addition,  
             fans can electronically transfer their tickets to other fans,  
             who would be assured by the teams' support of the process that  
             they are legitimate tickets.  Despite the many advantages to  
             consumers and efficiencies these technologies provide venue  
             operators, these emerging technologies would be in this bill's  
             cross-hairs.  The better course is to continue to let this  
             rapidly-changing area develop on its own, rather than be  
             disrupted through additional and unnecessary regulation.

             b)   Secondary Market for Event Tickets Could Harm Consumers  :

             The San Jose Sharks write to express their concerns based upon  
             reasoning shared with other opponents that, "A law banning  
             paperless and will-call ticketing would interfere with a  
             dynamic, competitive marketplace by directly benefiting  
             scalpers and secondary-market ticket brokers.  This bill is  
             heavily supported by scalpers and secondary-market ticket  
             brokers because these methods serve to limit the damage they  
             cause to the ticket market.  The secondary ticket resale  
             market is big business, and scalpers and ticket brokers make  
             up an increasingly large percent of all ticket resellers.   
             Scalpers and ticket brokers directly hurt the average  
             California consumer by employing schemes and tactics to buy  
             tickets en masse and resell them at prices well above face  
             value.  Ultimately, the inflated market created by these  
             scalpers and secondary-market ticket brokers causes increased  
             ticket prices and ancillary costs that are ultimately passed  
             on to your constituents.  The ticket methods this bill  
             proposes to ban serve to limit such costs, thus ensuring that  
             the average fan has access to reasonably priced tickets to the  
             Venues and Events in which California state and local  
             governments have a significant investment".

             According to Shorenstein Hays Nederlander Theatres, LLC, who  
             operate several theaters in San Francisco and do their own  
             event ticketing, "This bill would negatively affect California  
             consumers by banning proven ticketing methods that protect  
             fans.  These methods, while used primarily in cases of  








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             high-demand events, can ensure a purchased ticket cannot be  
             resold above the face value set by the artist, team, promoter,  
             who want to protect fans from an out-of-control resale market.  
              ID-check at will call and paperless ticketing are options  
             selected by the above stakeholders.  In fact, paperless  
             ticketing accounts for less than 0.01% of all ticket sales.   
             These methods benefit your constituents with reasonably-priced  
             tickets, and ensure that they pay only the price set by the  
             artist, team, venue, and promoter - as opposed to the higher  
             prices set by ticket scalpers, who artificially inflate prices  
             by causing shortages in the market.  A law banning paperless  
             and will-call ticketing would not only interfere with a robust  
             and dynamic competitive marketplace, but would put scalpers  
             ahead of your constituents."

             c)   AB 329 Could Result in Indirect Harm to Local Economies  :

              The City of Thousand Oaks is typical of opponents who wrote  
              the committee to share their concern that the bill indirectly  
              hurts the economy and fans/patrons.  "The sports and  
              entertainment industry are responsible for retaining current  
              jobs and promoting new ones. Many ancillary and local  
              businesses (hotels, restaurants, parking lots, food vendors,  
              union workers, etc.) are positively impacted when a tour  
              comes through a city.  Event presenters and artists are less  
              likely to want to host an event in California is new State  
              regulations such as this bill creates an unfair advantage to  
              scalpers creating a disadvantage to their fans."

          5)Committee Comment:  Small venues are excluded from consumer  
           protections under AB 329  :

           This bill would limit its provisions to venues which accommodate  
           more than 1,000 people. Current law has no such limitation on  
           the consumer protections afforded to purchasers of event  
           tickets.  This limitation upon the size of venues covered by  
           this bill creates a two-tiered system of regulation, whereby  
           small venues and their clientele would be left unprotected  
           against unscrupulous ticketing practices. 

           Given the popularity of "club" events and the limited nature of  
           available tickets for small venue shows, one could foresee the  
           tickets for all events, but especially major acts in small  
           venues, being a source of potential mischief. If this bill  
           should be approved by the committee and move forward, the author  








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           may consider amending the limitation upon venues covered by its  
           consumer protection provisions out of the bill.

          6)Prior Related Legislation  :

            a)   AB 2612 (Plescia), of the 2007-08 Legislative Session,  
              introduced as a spot bill to amend the ticket seller's  
              provisions of the B&P Code.  AB 2612 was held in the Assembly  
              Rules Committee without referral.

            b)   SB 1022 (Campbell), of the 2005-06 Legislative Session,  
              would have included Licensed Ticket Sellers, and other  
              businesses, eligible to organize as Limited Liability  
              Corporations (LLC).  SB 1022 was returned to the Secretary of  
              the Senate by the Senate Judiciary Committee without a  
              hearing pursuant to Joint Rule 56.

            c)   SB 1602 (Battin) of the 2005-06 Legislative Session, would  
              have expanded the definition of scalping under the Penal  
              Code, to extend the prohibition against selling event tickets  
              purchased for resale above market value on the event  
              premises, to any purchase of tickets for resale in an amount  
              over the limitation on maximum number of tickets allowed by  
              the original ticket seller and for any amount of profit. The  
              bill also would have criminalized the use of automated  
              computer purchases of event tickets in order to accomplish  
              the purchase above the seller's limit, by defining the  
              practice as "criminal interference" with the seller's Web  
              site. SB 1602 was held on Senate third reading at the request  
              of the author. 

          REGISTERED SUPPORT / OPPOSITION  :   

          Support 
          
         ALS Association, Greater Sacramento Chapter
         American Bus Association 
         Bonnie J. Addario Lung Cancer Foundation
         California Consumer Affairs Association
         California Senior Advocates League
         Consumer Action 
         Consumer Federation of America
         Consumer Federation of California
         Fan Freedom
         National Consumers League








                                                                 AB 329
                                                                 Page  16

         National Tour Association
         Safe Harbor Pension and Wealth
         Stubhub
         TechAmerica
         TechNet
         United Motor Coach Association
         Five private citizens

          Opposition 
          
         Broadway Across America
         Broadway Sacramento
         City of Thousand Oaks
         Fans First Coalition 
         Feld Entertainment
         Feld Motor Sports
         HP Pavilion at San Jose
         International Association of Venue Managers
         JAM Productions
         Live Nation Entertainment
         Los Angeles Angels of Anaheim
         Los Angeles Dodgers
         Ringling Brothers and Barnum & Bailey
         San Francisco 49ers
         San Jose Arena Management
         San Jose Sharks
         Shorenstein Hays-Nederlander Theatres
         The Broadway League
         University of Southern California
         One private citizen

          
         Analysis Prepared by  :    Dana Mitchell / A.,E.,S.,T. & I.M. /  
         (916) 319-3450