BILL ANALYSIS Ó AB 329 Page 1 ASSEMBLY THIRD READING AB 329 (Pan) As Amended May 7, 2013 Majority vote ARTS, ENTERTAINMENT, SPORTS 5-2 JUDICIARY 10-0 ----------------------------------------------------------------- |Ayes:|Ian Calderon, Bloom, |Ayes:|Wieckowski, Wagner, | | |Gomez, Levine, Wilk | |Alejo, Chau, Dickinson, | | | | |Garcia, Gorell, | | | | |Maienschein, Muratsuchi, | | | | |Stone | |-----+--------------------------+-----+--------------------------| |Nays:|Waldron, Brown | | | | | | | | ----------------------------------------------------------------- APPROPRIATIONS 16-1 ----------------------------------------------------------------- |Ayes:|Gatto, Harkey, Bigelow, | | | | |Bocanegra, Bradford, Ian | | | | |Calderon, Campos, Eggman, | | | | |Gomez, Hall, Rendon, | | | | |Linder, Pan, Quirk, | | | | |Wagner, Weber | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Donnelly | | | | | | | | ----------------------------------------------------------------- SUMMARY : Provides that any person who intentionally uses or sells software to circumvent a security measure, access control system, or other control or measure on a ticket seller's Internet Web site that is used to ensure an equitable ticket buying process is guilty of a misdemeanor. FISCAL EFFECT : According to the Assembly Appropriations Committee, potential minor non-reimbursable costs to cities and counties for enforcement, offset to some extent by fine revenues. AB 329 Page 2 COMMENTS : According to the author, robotic ticket-buying software ("bots") are designed to bombard online box office Web sites with thousands of simultaneous purchase requests, thereby bypassing the principle of first-in-line and creating instant sellouts of events before the average fan has a chance to obtain tickets. The author states that the entertainment industry has continuously blamed "instant sellouts" on the unregulated use of bots by scalpers, who then turn around and sell the tickets at severely marked up prices, forcing fans to pay higher prices for tickets without having had any opportunity to purchase a face-value ticket from the ticket issuer or event organizer. To address these problems, this bill would prohibit the use or sale of robotic ticket-buying software, and making violations punishable by a misdemeanor. Technological attempts to combat robotic-ticket buying software have not been entirely successful : According to the author, the ticket industry has attempted to combat the problems caused by bots by employing other technological means such as Completely Automated Public Turing test to tell Computers and Humans Apart (CAPTCHA) phrases and pictures tests at the point of sale during the online transaction. Visitors to any ticket selling Web site in recent years may recall having been instructed to view a distorted image of a word or phrase and type the characters into a response box before being allowed to purchase tickets on the Web site. This type of CAPTCHA test is designed to prevent the use of bots because the requested task is one that a person can complete correctly in virtually every case, but is difficult for a robotic software program to accurately perform. Variations of CAPTCHA methods involve visual identification of common objects like animals or fruit rather than words or phrases; in either case, the idea is that correct responses to CAPTCHA requests can be reliably presumed to have been entered by a person using the ticket Web site, and not an automated software program. According to supporters of the bill, however, these technological efforts do not appear to have been very successful because the problem of instant sellouts and increased resale prices for tickets continues to generate complaints from the ticket-buying public. This bill seeks to address the novel problem caused by the rise of bot software by prohibiting the use and sale of any software that "circumvents a security measure, access control system, or other control or measure on a seller's Internet Web site that is used to ensure an equitable ticket buying process." AB 329 Page 3 Recent amendments to the bill taken in the Assembly Arts, Entertainment, Sports, Tourism and Internet Media Committee limit the bill to only the current prohibition of the sale or use of robotic ticket buying software. Several professional sports teams and other ticket sellers who previously opposed the bill now support it, and there is no known opposition to the current version of the bill. Please see the Assembly Judiciary Committee analysis for a full discussion of the current version of this bill. Analysis Prepared by : Dana Mitchell / A., E., S., T. & I.M. / (916) 319-3450 FN: 0000619