HB435 By Representatives Williams (JD), Coleman and Boyd RFD Commerce and Small Business Rd 1 17-MAR-16

SYNOPSIS: Under existing law, an admission ticket that was originally issued, sold, or authorized by an organizer of or venue to athletic contests, concerts, and other amusement events may be resold.

This bill would prohibit a ticket issuer, primary ticket sales platform, or secondary ticket exchange from: (1) penalizing or discriminating against a ticket holder who transfers, resells, or offers to resell his or her ticket; (2) penalizing, discriminating against, or denying access to a ticket holder who possesses a resold ticket based solely on the grounds that the ticket has been resold; (3) prohibiting or restricting the resale or transfer of any tickets; or (4) using certain delivery techniques or technological means to preclude or hinder a consumer from reselling or transferring tickets on a platform or exchange of his or her choice.

This bill would also prohibit a person from knowingly using or selling software to circumvent or interfere with security measures, access control systems, or other controls or measures on a primary ticket sales platform or a secondary ticket exchange.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

A BILL TO BE ENTITLED AN ACT

To amend Section 8-19E-2, Code of Alabama 1975, relating to the resale of admission tickets, to prohibit a ticket issuer, primary ticket sales platform, or secondary ticket exchange from engaging in certain action resulting in penalties, discrimination, or denied access to an event because the ticketholder resold or transferred his or her ticket; to prohibit a person from using or selling certain software to circumvent or interfere with certain security measures on a primary ticket sales platform or secondary ticket exchange; to provide that violations constitute a deceptive trade practice; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 8-19E-2, Code of Alabama 1975, is amended to read as follows:

§8-19E-2.

"(a) An admission ticket that was originally issued, sold, or authorized by the organizer or venue to any athletic contest, dance, theater, concert, circus, or other amusement may be resold for an amount in excess of the price printed on the face of the ticket.

"(b) A ticket issuer, primary ticket sales platform, or secondary ticket exchange may not do any of the following:

"(1) Penalize or discriminate against a ticket holder who transfers, resells, or offers to resell his or her event ticket.

"(2) Penalize, discriminate against, or deny access to an event ticket holder who possesses a resold event ticket based solely on the grounds that, or the channel through which, the event ticket has been resold.

"(3) Prohibit or restrict the resale or transfer of any event tickets.

"(4) Use any delivery techniques or technological means, including, but not limited to, electronic delivery delays, that have the effect of precluding or hindering a consumer from reselling or transferring event tickets on a platform or exchange of his or her choice.

"(c) A person may not knowingly use or sell software to circumvent, thwart, interfere with, or evade a security measure, access control system, or other control or measure on a primary ticket sales platform or a secondary ticket exchange.

"(d) Notwithstanding any other provision of this section, an operator of a venue or an agent of the operator may do any of the following:

"(1) Maintain and enforce any policies regarding conduct, age restrictions, or behavior at the venue.

"(2) Establish limits on the quantity of event tickets purchased during an initial sale of the tickets.

"(3) Revoke or restrict season tickets for reasons relating to violations of venue policies, including the following:

"a. Concerns regarding the protection or safety of individuals at the venue.

"b. Concerns regarding possible fraud or misconduct.

"(4)a. Restrict the offer for resale of event tickets initially given or sold to individuals or groups as part of a targeted promotion or a discounted price because of the individuals' or groups' status.

"b. A restriction under this subdivision includes groups or individuals characterized by a disability, membership in a religious or civic organization, or economic hardship and requires that tickets sold to certain individuals or groups are both of the following:

"1. Not offered promotionally to the general public.

"2. Marked clearly.

"(5) Restrict the resale of event tickets initially distributed by a not-for-profit education institution to faculty, staff, and enrolled students, or suite tickets, for athletic events involving athletes or teams of that institution.

"(e) A violation of subsection (b) or (c) shall be a deceptive trade practice under Chapter 19 of this title .

"(f) For the purposes of this section, the following terms shall have the following meanings:

"(1) EVENT TICKET. 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 a revocable or irrevocable right, privilege, or license to enter an event venue or occupy a particular seat or area in an event venue with respect to one or more events, or an entitlement to purchase such a right, privilege, or license with respect to one or more future events.

(2) PRIMARY TICKET SALES PLATFORM. A marketplace operated by or on behalf of a ticket issuer for consumers for the initial purchase of event tickets from a ticket issuer.

"(3) RESALE. Any form of transfer or alienation, or offering for transfer or alienation, or possession or entitlement to possession of an event ticket from one ticket seller to a person, with or without consideration, whether in person or by means of a telephone, mail, delivery service, facsimile, Internet, email, or other electronic means. The term does not include the initial sale of an event ticket by the ticket issuer.

"(4) SECONDARY TICKET EXCHANGE. An electronic marketplace that enables consumers to sell and purchase event tickets, including, but not limited to, at resale.

"(5) TICKET ISSUER. Any person that makes tickets available, directly or indirectly, to an entertainment event, and may include any of the following:

"a. The operator of a venue.

"b. The sponsor or promoter of an event.

"c. A sports team participating in an event or a league whose teams are participating in an event.

"d. A theatre company, musical group, or similar participant in an event.

"e. An agent of any person listed in paragraphs a. through d.

"(6) VENUE. A theatre, stadium, field, hall, or other facility or area where an entertainment event takes place.

Section 2. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 3. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Consumer Protection

Tickets

Recreation

Sports

Concerts

Business and Commerce

Code Amended