BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1832| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 1832 Author: Ian Calderon (D) Amended: 4/10/14 in Assembly Vote: 21 SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 9-0, 6/16/14 AYES: Lieu, Wyland, Berryhill, Block, Corbett, Galgiani, Hernandez, Hill, Torres SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 73-0, 5/8/14 - See last page for vote SUBJECT : Ticket sellers: equitable ticket buying process: sale or use of circumventing software SOURCE : Author DIGEST : This bill makes technical changes to existing law prohibiting software from circumventing ticket sellers equitable ticket buying process to ensure the prohibition is not only limited to Internet Web sites. ANALYSIS : Existing law: 1. Provides a broad regulatory scheme in the Business and Professions Code for the conduct of the business of "Ticket CONTINUED AB 1832 Page 2 Seller." 2. Prohibits using or selling 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, as specified. This bill makes changes to existing law to provide that it is unlawful for a person who intentionally uses or sells software to circumvent a security measure, access control system, or other control or measure that is used to ensure an equitable ticket buying process. Background AB 329 (Pan, Chapter 325, Statutes of 2013) made it a misdemeanor to intentionally use or sell 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. The bill was designed to prevent the use of "bots" from denying the general public access to the first release of tickets, which generally are sold at a much lower price than the same tickets yield on the secondary market. The author's office notes that simply saying a bill applies to "The Internet" can no longer be trusted to ensure application software designed for mobile telecommunications devices, or cloud programs designed for laptops, smart TVs, or even gas pump charging stations are encompassed by the law. The author's office also provided background about a recent agreement forged between Attorney General Kamala D. Harris and the leading operators of mobile application platforms to improve privacy protections for consumers who use applications ("apps") on their smartphones, tablets and other mobile devices, when many consumer advocates thought that apps were already covered under the California Online Privacy Protection Act which expressly regulates commercial Web sites and online services but many app developers have stated that they do not believe the mobile platforms falls under its provisions. "Bots" and attempts to curb their use . "Bots" are robotic ticket buying software programs that allow users to quickly buy tickets online. Typically, these are used by unscrupulous CONTINUED AB 1832 Page 3 actors like ticket scalpers to buy tickets, then turn around and sell the same tickets at increasingly higher prices. Over the past several years, numerous high profile concert ticket sales have been impacted by the presumed use of "bots" in that individuals wait online to purchase tickets while software programs allow their users to jump to the front of the line and purchase large numbers of tickets at one time. This scenario often leads to concerts and other high profile events selling out in a matter of minutes, leaving fans ticketless and forcing them to spend more money to attend an event. The ticket industry has attempted to combat problems caused by "bots" by employing other technological means, such as "Completely Automated Public Turing tests to tell Computers and Humans Apart" (CAPTCHA), which include phrases and picture tests at the point of sale during the online transaction to differentiate between a human purchaser and a likely computer program. CAPTCHA tests, such as typing characters into a box, are designed to prevent the use of "bots" because the requested task is typically one that can be completed by a person but would be difficult for a robotic software program to accurately perform. Supporters of efforts to restrict the use of "bots" assert that even these technological efforts are not completely successful because the problem of instant sellouts and increased resale prices for tickets continues to generate complaints from the ticket-buying public. California is one of a number of states including Tennessee, Michigan, New Jersey, New York, Connecticut and Minnesota that have waded into the debate and considered or passed legislation imposing bans on "bots" and establishing stiff penalties to those who use these systems. Comments According to the author's office, this is a technical clean-up bill which assures equal access to tickets for fans by ensuring that the prohibition against robotic ticket buying software programs ("bots") that allow users to quickly buy tickets online, circumventing seller's equitable ticket buying process, is not limited to Internet Web sites. According to the author's office, language amended into AB 329 (Pan) inadvertently limited the application of that bill's consumer protection language to "bots" targeting a seller's "Internet Web site." The author's CONTINUED AB 1832 Page 4 office contends that by doing so, the intended scope of these protections were also limited and as such, the law could be read to only applying these important fairness principles to online transactions, and thinks it is important that these consumer protections be applied to other media mobile applications, smart TVs and telecommunication devices. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 6/30/14) Broadway Across America Broadway Sacramento California Sports and Entertainment Industry Coalition Fans First Coalition Feld Entertainment, Inc. Feld Motor Sports International Association of Venue Managers Jonathan Reinis Productions Live Nation Entertainment, Inc. Los Angeles Angels of Anaheim Los Angeles Dodgers MLB Advanced Media Oakland Athletics Red Light Management Ringling Brothers and Barnum & Bailey San Diego Padres San Francisco Giants Shorenstein Hays-Nederlander Theatres The Broadway League ARGUMENTS IN SUPPORT : A coalition of supporters writes that this bill will give the state additional tools in the effort to protect fans against the use of automated software hacking programs. Supporters note that "bots" put undue pressure on ticketing systems, substantially increase technology costs in the fight against them, and anger consumers because bots render real fans unable to get great seats. Supporters believe that this bill is "another step forward in the effort to protect fans" and that it is important that the use of "bots" be prohibited by law, that those laws are enforced rigorously, and that those who use and profit from these systems be held accountable. CONTINUED AB 1832 Page 5 The Major League Baseball entities listed write, that this bill "will bring clarity to current law by making it illegal to also use those other access points [mobile applications, smart TVs and other telecommunications devices] to circumvent equitable ticket buying process targeting Internet Web sites." ASSEMBLY FLOOR : 73-0, 5/8/14 AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Allen, Donnelly, Eggman, Gorell, Mansoor, V. Manuel Pérez, Vacancy MW:d 7/1/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED