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An Act RELATIVE TO THE RESALE OF TICKETS |
Be it enacted by the Senate and House
of Representatives in General Court assembled, and by the authority of the
same, as follows:
SECTION 1. Chapter 140 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting after section 184 the following section:-
Section 184A. . As used in this section and in sections 184B to 184P, inclusive, the following words shall, unless the context otherwise requires, have the following meanings:-
"Commissioner", the commissioner of the department of public safety.
"Convenience fee", an amount charged by the licensed ticket seller or reseller in transactions where the ticket is provided to the consumer in a manner other than a face-to-face exchange between the consumer and the ticket seller or reseller or its agent and may include, but is not limited to, electronic mail or holding the ticket at a designated venue location, subject to the regulatory authority of the department of public safety.
"Department", department of public safety.
"Face value", the price of admission as determined by the operator of the venue where the event is to take place and required to be printed on the front of the ticket.
"Fee", any amount charged by the ticket seller or reseller that causes the purchase price of the ticket to exceed face value, subject to the regulatory authority of the department of public safety.
"Licensee", a person or corporation licensed by the department to act as a ticket reseller.
"Original Ticket Seller" a person or corporation engaged in the business of generating a ticket or tickets for sale either by itself or on the behalf of a venue that has contracted with the person or corporation for that purpose
“Person”, a natural person, corporation, association, partnership or other legal entity.
“Ticket”, a document produced in the form of paper, plastic, electronic or any medium which is generated or approved by an original ticket seller to authorize the ticket holder the right of entry to a venue.
"Ticket Receipt", a document generated by the ticket seller or reseller and provided to the consumer at the time of purchase, recording the costs associated with the purchase of a specific ticket and including, but not limited to, the transaction fee; the venue fee; and any additional fees that cause the purchase price of the ticket to exceed face value.
“Ticket Reseller”, or a person or corporation licensed and engaged in the business of reselling tickets.
“Ticket Scalping”, the sale of any ticket by an unlicensed person to a place of entertainment for payment of any kind greater than face value.
“Transaction”, a sale of a ticket by a ticket seller or reseller to a consumer.
"Transaction fee", the amount charged by the ticket seller or reseller in excess of the face-value of the ticket that represents the cost incurred by the licensed ticket seller or reseller in transacting the sale of the ticket to the consumer, subject to the regulatory authority of the department of public safety.
"Venue", the location of the event for which a ticket of admission is sold.
"Venue fee", the amount charged by the venue to cover the costs to the venue of hosting an event for which a ticket is sold, subject to the regulatory authority of the department of public safety.
Section 184B. No person shall engage in the business of reselling, at a price above face value, any ticket or tickets of admission or other evidence of right of entry to any theatrical exhibition, public show, public amusement, educational, exhibition, concert, or professional or amateur sporting event or any other event or exhibition occurring in the commonwealth and required to be licensed under sections 181 and 182 of this chapter, without being licensed by the commissioner. A license shall be granted only upon a written application setting forth such information as the commissioner may require. Each license issued under this section shall be in force for a period of two years from date of issuance, unless sooner revoked. No such license may be transferred to a new location, except upon written permission of the commissioner. The commissioner shall establish rules and regulations regarding the information required for application of licensure, method of submitting an application and the process to application; provided that each applicant must include the following information:
(a) a copy of a business certificate if the registrant is not incorporated; or
(b) a copy of the relevant parts of the articles of organization showing the names and addresses of all owners, partners or trustees of an applicant including, in the case of corporate entities, the names and addresses of all officers, directors and principal shareholders if the registrant is incorporated in the commonwealth; or
(c) a copy of the foreign corporation certificate of registration required to be filed with the secretary of the commonwealth pursuant to subsection 3 of section 15 of chapter 156D if the corporation is organized under the laws of another state or country.
Section 184C. A person that provides a medium on an internet website owned and controlled by said person shall be authorized to allow unlicensed ticket resellers to conduct transactions on its website and collect a fee for each transaction; provided that said person, is licensed by the department, provides a secure method for these transactions, discloses his role in these transactions in a clear and conspicuous manner to the parties conducting the transactions, and keeps a record of the contact information and transactions of the parties conducting ticket sales to venues in the Commonwealth. Said person shall not collect a fee on the total transaction of more than 25 per cent of the total transaction’s value, and shall require persons selling tickets to fully disclose shipping and other costs as part of its posting to seek buyers for tickets. The department shall establish rules and regulations for the implementation of this section. Said person shall make available to the department information about the sale of tickets to venues in the Commonwealth at the department’s request. Said person shall report to the department any party using their internet website to conduct excessive ticket sale transactions to venues within the commonwealth or licensed ticket sellers or ticket resellers conducting resale of tickets on their Internet website.
Section 184D. No license under section 184B shall be issued unless and until the applicant therefore deposits with the commissioner a bond for the faithful compliance by said applicant, during the term of the license, with the provisions of sections 184B to184P inclusive, such bond to run to the commonwealth in the sum of $100,000 and to be in force during the term of the license. Such bond shall be conditioned on the promise that the applicant, his agents or employees will not be guilty of fraud or extortion, or violate any of the provisions of this act, will comply with the rules and regulations promulgated by the commissioner, and that the applicant shall pay all damages occasioned to any person by reason of misstatement, misrepresentation, fraud or deceit or any unlawful act or omission in connection with the provisions of this act and the business conducted under this act. Each employee employed by a person engaged in the practice or business of a licensed ticket reseller must be individually licensed in accordance with Section 184F if said employee engages in the practice or business of reselling tickets for the purpose of the licensed ticket reseller.
Section 184E. All licenses granted under section 184B shall be posted conspicuously in the licensed ticket reseller's office. All licenses shall clearly display the licensee’s number on every computer website, advertisement appearing in print, advertisement transmitted to consumers via electronic mail, and advertisement appearing on a computer. All licensees shall display their sales and refund policies, customer service number, times when the licensee is open for business, the office address or addresses, and the maximum potential fees charged per transaction in a clear and conspicuous manner in all offices, on computer websites, and on documents or tickets mailed through standard mail or electronic mail.
Section 184F. The fee for each license granted under section 184B shall be $1,000 for the original license and for each renewal thereof, and may be increased by the commissioner of administration and finance as he deems appropriate under the provision of section 3B of chapter 7.
Section 184G. The commissioner shall establish and may from time to time review and change the rules and regulations relative to the granting of licenses and the business carried on by persons licensed under section 184B. The commissioner or the designee to whom authority is delegated by the commissioner may investigate the affairs of such licensees as often as he deems necessary and for that purpose shall have access to the books, papers and electronic records of such licensees. Failure by a licensee to provide access to said records may result in suspension or revocation of the licensee’s license or the imposition of fines established under section 184N. The commissioner shall keep a book or books in which shall be entered in alphabetical order a record of all licenses granted under section 184B, which record shall be open to public inspection.
Section 184H. (a)Any person who engages in the business of selling or reselling any ticket or tickets of admission or other evidence of right of entry to any theatrical exhibition, public show, public amusement, educational, exhibition, concert, or professional or amateur sporting event or any other event or exhibition occurring in the commonwealth shall refund to the purchaser of such ticket the full amount, less any reasonable service fees and delivery charges, paid by the purchaser for such ticket if any of the following occurs: (1) The event for which the ticket is sold is cancelled; (2) the ticket received by the purchaser does not grant the purchaser admission to the event described on the ticket; or (3) the ticket fails to conform to its description as advertised by the ticket seller or reseller.
(b) A person who sells a ticket pursuant to subsection (a) of this section shall provide the purchaser of such ticket with the ticket seller's name, address and telephone number or other information necessary to allow the purchaser to contact the ticket seller to obtain a refund of the ticket price, if necessary.
Section 184I. Any person from whom any licensee under section 184B has unjustly withheld a refund for purposes outlined in section 184H may bring an action upon the bond of such licensee and may recover upon such bond for his own benefit up to the amount of the withheld ticket less any fees associated with the purchase of said ticket.
Section 184J. (a) Whoever knowingly purchases from the original ticket seller a quantity of tickets to an event which exceeds the maximum ticket limit quantity posted by or on behalf of the original ticket seller at the point of original sale or printed on the tickets themselves and intends to resell such tickets is in violation of this act.
(b)Any person who gives or offers anything of value to an employee of a place of entertainment or an original ticket seller in exchange for, or as an inducement to, special treatment with respect to obtaining tickets, or any employee of a place of entertainment or original ticket seller who receives or solicits anything of value in exchange for special treatment with respect to issuing tickets, shall be in violation of this act.
(c) It shall be an unlawful practice for a person to use an employee, or a third party temporarily hired, for the purpose of securing tickets by intimidating or obstructing a purchaser waiting in line either physically or in an electronic capacity, whether or not such practice prevents said purchaser from acquiring tickets.
Section 184K. The commissioner, after notice to the licensee and reasonable opportunity for him to be heard, may suspend his license or may revoke the same for such period as the commissioner deems proper, upon satisfactory proof that the licensee has violated or permitted a violation of any condition of his license or of any rule or regulation of the commissioner under section 184G or any provision of this act. If the license is revoked, the licensee shall be disqualified from receiving a license for a period of one year after the expiration of the term of the license so revoked.
Section 184L. No unlicensed person shall resell any ticket or other evidence of right of entry to any theatrical exhibition, public show, public amusement, educational, exhibition, concert, or professional or amateur sporting event or any other event or exhibition occurring in the commonwealth of any description at a price in excess of the face value of said ticket, unless sold to a licensed ticket reseller, and said price shall include any and all fees by the seller, or other evidence of right of entry as the purchase price thereof.
Section 184M. If a venue, city or town establishes an area within the property line of any such place of entertainment for the lawful resale of tickets, to events at such place of entertainment only for an event to occur on that date only, by any licensed ticket reseller or not-for-profit organization for a price at or above face value or by an unlicensed person for a price at or below face value, then the following provisions shall apply:
1. No person shall resell, offer to resell or solicit the resale of any ticket to any place of entertainment having a permanent seating capacity in excess of 5,000 persons within 2,500 feet from the physical structure of such place of entertainment, provided however that current licensees and those seeking a license under this article are exempt from such restrictions when operating out of a permanent physical structure licensed by the city or town.
2. No person shall resell, offer to resell or solicit the resale of any ticket to any place of entertainment having a permanent seating capacity of 5,000 or fewer persons within 1,000 feet from the physical structure of such place of entertainment, provided however that current licensees and those seeking a license under this article are exempt from such restrictions when operating out of a permanent physical structure licensed by the city or town.
If a venue, city or town establishes an area within the property line of any such place of entertainment for the lawful resale of tickets, then the venue, city or town shall provide for adequate security in said area, may limit the total number of tickets to be resold per person, may establish the time when said transactions will occur, and shall require identification and verification of the licensed ticket resellers conducting any transactions. Each licensed ticket reseller shall clearly and conspicuously display his license upon his person while conducting any transaction and shall provide to the consumer a ticket receipt detailing the reseller’s relevant contact information, including but not limited to, the reseller’s license number and telephone number. The venue, city or town may not charge a fee to those participating in the resale of tickets in this area. Any ticket reseller who violates this section shall be subject to the fines and penalties under section 184N. The department may issue guidelines to cities and towns on the implementation of this section.
Section 184N. Whoever violates any provision of section 184B to section 184M, inclusive, or any rule or regulation of the Commissioner made under section 184G, shall be punished by a fine of not more than $1,000 for a first violation; not more than $3,000 for a second violation; and not more than $5,000, or imprisonment in a jail or house of correction for not more than 1 year, or both for a third and each subsequent violation. Each individual ticket sale shall be considered a separate and independent transaction.
Section 184O. The provisions of sections 184B to 184L shall not apply to tickets or other evidence of entry to theatrical exhibitions, public shows or public amusements or exhibitions, in which all the proceeds of the sale or resale inure exclusively to the benefit of religious, educational or charitable institutions, societies or organizations or civic leagues or not for profit organizations operated exclusively for the promotion of social welfare or to associations of veterans of any wars of the United States, or to tickets or other evidence of entry to agricultural fairs, none of the profits of the sale or resale of which are distributed to stockholders or members of the association conducting the same.
Section 184P. Notwithstanding any general or special law, or rule or regulation to the contrary, any original ticket seller who offers for sale a season ticket package or subscription package shall be prohibited from revoking the season ticket package or subscription package of any person found to have resold any ticket which is contained in his season ticket package or subscription package for at or above face value if the original ticket seller engages in the resale of tickets for above face value.
SECTION 2. Chapter 140 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out sections 185A to 185G inclusive..