STATE OF NEW YORK
________________________________________________________________________
6321
2007-2008 Regular Sessions
IN SENATE
June 18, 2007
___________
Introduced by Sen. SKELOS -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the arts and cultural affairs law, in relation to the
resale of tickets to places of entertainment; to amend chapter 704 of
the laws of 1991, amending the arts and cultural affairs law and chap-
ter 912 of the laws of 1920 relating to the regulation of boxing and
wrestling relating to tickets to places of entertainment, in relation
to the effectiveness thereof; to amend chapter 61 of the laws of 2007
amending the arts and cultural affairs law relating to the resale of
tickets to places of entertainment, in relation to the effectiveness
thereof; and repealing certain provisions of the arts and cultural
affairs law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 4 of section 25.03 of the arts and cultural
2 affairs law, as amended by chapter 61 of the laws of 2007, is amended to
3 read as follows:
4 4. "Not-for-profit organization" means a domestic corporation incorpo-
5 rated pursuant to or otherwise subject to the not-for-profit corporation
6 law, a charitable organization registered with the [secretary of state]
7 department of law, a religious corporation as defined in section sixty-
8 six of the general construction law, a trustee as defined in section
9 8-1.4 of the estates, powers and trusts law, an institution or corpo-
10 ration formed pursuant to the education law, a special act corporation
11 created pursuant to chapter four hundred sixty-eight of the laws of
12 eighteen hundred ninety-nine, as amended, a special act corporation
13 formed pursuant to chapter two hundred fifty-six of the laws of nineteen
14 hundred seventeen, as amended, a corporation authorized pursuant to an
15 act of congress approved January fifth, nineteen hundred five, (33 stat.
16 599), as amended, a corporation established by merger of charitable
17 organizations pursuant to an order of the supreme court, New York county
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12048-02-7
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1 dated July twenty-first, nineteen hundred eighty-six and filed in the
2 department of state on July twenty-ninth, nineteen hundred eighty-six,
3 or a corporation having tax exempt status under section 501 (c) (3) of
4 the United States Internal Revenue Code, and shall further be deemed to
5 mean and include any federation of charitable organizations.
6 § 2. Subdivision 8 of section 25.03 of the arts and cultural affairs
7 law, as amended by chapter 61 of the laws of 2007, is amended to read as
8 follows:
9 8. "Resale" means any sale of a ticket for entrance to a place of
10 entertainment located within the boundaries of the state of New York
11 other than a sale by the operator or the operator's agent who is
12 expressly authorized to make first sales of such tickets. Resale shall
13 include sales by any means, including in person, or by means of tele-
14 phone, mail, delivery service, facsimile, internet, email or other elec-
15 tronic means, where the venue for which the ticket grants admission is
16 located in New York state. Except as provided in sections 25.11 and
17 25.27 of this article, the term "resale" shall not apply to any person,
18 firm or corporation which purchases any tickets solely for their own use
19 or the use of their invitees, employees and agents or which purchases
20 tickets on behalf of others and resells such tickets to such invitees,
21 employees and agents or others at or less than the established price.
22 Similarly, the term "resale" shall not apply to any not-for-profit
23 organization, or person acting on behalf of such not-for-profit organ-
24 ization, as long as any profit realized from ticket reselling is wholly
25 dedicated to the purposes of such not-for-profit organization.
26 § 3. Subdivisions 4 and 5 of section 25.07 of the arts and cultural
27 affairs law are REPEALED.
28 § 4. Subdivision 3 of section 25.11 of the arts and cultural affairs
29 law, as amended by chapter 61 of the laws of 2007, is amended to read as
30 follows:
31 3. Notwithstanding subdivisions one and two of this section, an opera-
32 tor may designate an area within the property line of such place of
33 entertainment [having a permanent seating capacity in excess of five
34 thousand persons] for the lawful resale of tickets only to events at
35 such place of entertainment by any person, firm, corporation or not-for-
36 profit organization, whether or not domiciled, licensed or registered
37 within the state.
38 § 5. Subdivision 1 of section 25.13 of the arts and cultural affairs
39 law, as amended by chapter 61 of the laws of 2007, is amended to read as
40 follows:
41 1. No person, firm or corporation shall resell or engage in the busi-
42 ness of reselling any tickets to a place of entertainment or operate an
43 internet website or any other electronic service that provides a mech-
44 anism for two or more parties to participate in a resale transaction or
45 that facilitates resale transactions by the means of an auction, or own,
46 conduct or maintain any office, branch office, bureau, agency or sub-a-
47 gency for such business without having first procured a license or
48 certificate for each location at which business will be conducted from
49 the secretary of state. Any operator or manager of a website that serves
50 as a platform to facilitate resale, or resale by way of a competitive
51 bidding process, solely between third parties and does not in any other
52 manner engage in resales of tickets to places of entertainment shall be
53 exempt from the licensing requirements of this section [provided such
54 operator or manager of such website (a) is a corporation, limited
55 liability company, limited partnership, or other business entity formed
56 under the laws of this state, or a corporation, limited liability compa-
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1 ny, limited partnership, or other business entity formed under the laws
2 of another jurisdiction and authorized to do business in this state, and
3 (b) has not been dissolved, and (c) has not had its authority to do
4 business in this state suspended, revoked, terminated, or annulled, and
5 (d) has filed with the department of state proof of the foregoing in
6 such form and manner as may be prescribed by the secretary of state, and
7 (e) has paid to the department of state at the time of such filing of
8 such proof the fee required to accompany such filing. A license for the
9 principal office shall be granted upon the payment by or on behalf of
10 the applicant of a fee of five thousand dollars and shall be renewed
11 upon the payment of a like fee annually; and a certificate shall be
12 granted by the secretary of state for each branch office, bureau, agency
13 or sub-agency of the principal, upon payment by or on behalf of an
14 applicant of a fee of one thousand dollars and shall be renewed upon the
15 payment of a like fee annually]. The department of state shall issue
16 and deliver to such applicant a certificate or license to conduct such
17 business and to own, conduct or maintain a bureau, agency, sub-agency,
18 office or branch office for the conduct of such business on the premises
19 stated in such application upon the payment by or on behalf of the
20 applicant of a fee of five thousand dollars and shall be renewed upon
21 the payment of a like fee annually. Such license or certificate shall
22 not be transferred or assigned, except by permission of the secretary of
23 state. [No change in the location of the premises covered by such
24 license or certificate shall be made, except by permission of the secre-
25 tary of state, and upon the payment of a fee of one thousand dollars.]
26 Such license or certificate shall run to the first day of January next
27 ensuing the date thereof, unless sooner revoked by the secretary of
28 state. Such license or certificate shall be granted upon a written
29 application setting forth such information as the secretary of state may
30 require in order to enable him or her to carry into effect the
31 provisions of this article and shall be accompanied by proof satisfac-
32 tory to the secretary of state of the moral character of the applicant.
33 [No license or certificate shall be issued for any office or branch
34 office, bureau, agency or sub-agency unless such office or branch
35 office, bureau, agency or sub-agency shall be a suitable place for the
36 conduct of said business and shall meet with the approval of the secre-
37 tary of state.]
38 § 6. Section 25.15 of the arts and cultural affairs law, as amended by
39 chapter 61 of the laws of 2007, is amended to read as follows:
40 § 25.15. Bond. The secretary of state shall require the applicant for
41 a license to file with the application therefor a bond in due form to
42 the people of New York in the penal sum of twenty-five thousand dollars,
43 with two or more sufficient sureties or a duly authorized surety compa-
44 ny, which bond shall be approved by the secretary of state. Each such
45 bond shall be conditioned that the obligor will not be guilty of any
46 fraud or extortion, will not violate directly or indirectly any of the
47 provisions of this article or any of the provisions of the license or
48 certificate provided for in this article, will comply with the
49 provisions of this article and will pay all damages occasioned to any
50 person by reason of any misstatement, misrepresentation, fraud or deceit
51 or any unlawful act or omission of such obligor, his or her agents or
52 employees, while acting within the scope of their employment, made,
53 committed or omitted in connection with the provisions of this article
54 in the business conducted under such license or caused by any other
55 violation of this article in carrying on the business for which such
56 license is granted. [The secretary of state shall keep books wherein
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1 shall be entered in alphabetical order all licenses granted and all
2 bonds received by him or her as provided for in this article, the date
3 of the issuance of such license and the filing of such bonds, which
4 record shall be open to public inspection.] A suit to recover on the
5 bond required to be filed by the provisions of this article may be
6 brought in the name of the person damaged, upon the bond deposited with
7 the department of state by such licensed person, in a court of competent
8 jurisdiction. The amount of damages claimed by the plaintiff and not the
9 penalty named in the bond shall determine the jurisdiction of the court
10 in which the action is brought. One or more recoveries or payments upon
11 such bond shall not vitiate the same but such bond shall remain in full
12 force and effect, provided, however, that the aggregate amount of all
13 such recoveries or payments shall not exceed the penal sum thereof. Upon
14 the commencement of any action or actions against the surety upon any
15 such bond for a sum or sums aggregating or exceeding the amount of such
16 bond the secretary of state shall require a new and additional bond in
17 like amount as the original one, which shall be filed with the depart-
18 ment of state within thirty days after the demand therefor. Failure to
19 file such bond within such period shall constitute cause for the revoca-
20 tion of the license pursuant to section 25.31 of this article thereto-
21 fore issued to the licensee upon whom such demand shall have been made.
22 Any suit or action against the surety on any bond required by the
23 provisions of this section shall be commenced within one year after the
24 cause of action shall have accrued.
25 § 7. Section 25.21 of the arts and cultural affairs law, as amended by
26 chapter 61 of the laws of 2007, is amended to read as follows:
27 § 25.21. [Removal of office] Change of office location. [If the hold-
28 er of an unexpired license or certificate issued pursuant to this arti-
29 cle shall remove the office, branch office, bureau, agency or sub-agency
30 to a place other than that described in the license or certificate, he
31 or she shall within the twenty-four hours immediately following such
32 removal, give written notice of such removal to the secretary of state,
33 which notice shall describe the premises to which such removal is made
34 and the date on which it was made, and send such license or certificate
35 to the secretary of state, at his or her office in the political subdi-
36 vision, and the] In the event of a change in the location of the prem-
37 ises covered by license or certificate issued under this article, the
38 department of state shall be duly notified in writing of such change
39 within twenty-four hours thereafter. The secretary of state shall cause
40 to be written or stamped across the face of such license or certificate
41 a statement to the effect that the holder of such license has removed on
42 the date stated in such written notice such principal office, branch
43 office, bureau, agency or sub-agency from the place originally described
44 in such license or certificate to the place described in such written
45 notice, and such license or certificate with the endorsement thereon
46 shall be returned to the licensee named therein. No tickets shall be
47 sold at any place other than places for which a license or certificate
48 provided for by this article has been issued and posted.
49 § 8. Section 25.25 of the arts and cultural affairs law, as amended by
50 chapter 61 of the laws of 2007, is amended to read as follows:
51 § 25.25. Records of purchases and sales. Every licensee shall at all
52 times keep full and accurate sets of records showing: (1) the prices at
53 which all tickets have been bought and sold by such licensee; and (2)
54 the names and addresses of the person, firm or corporation from whom
55 they were bought. Operators offering for initial sale tickets by means
56 of an auction shall maintain a record of the price when known and the
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1 number of tickets and types of seats offered through auction. These
2 records shall be made available upon request to the state attorney
3 general, the secretary of state, or other governmental body with the
4 express authority to enforce any section of this article; provided,
5 however, that the records required to be maintained by this section
6 shall be considered proprietary in nature and shall be governed by the
7 protections set forth in subdivision five of section eighty-nine of the
8 public officers law. These records shall be retained for a period of
9 not less than ten years.
10 § 9. Section 25.31 of the arts and cultural affairs law, as amended by
11 chapter 61 of the laws of 2007, is amended to read as follows:
12 § 25.31. Suspension or revocation of licenses. [In the event that any
13 licensee shall have been convicted of a crime defined in this article or
14 of a crime involving fraud or misrepresentation in relation to the
15 resale of tickets to a place of entertainment, or has been convicted of
16 such offense within the past five years, the secretary of state may,
17 following a hearing on written notice by certified mail to such licensee
18 where the licensee has an opportunity to be heard and present evidence,
19 revoke or suspend any license thereto, provided however, where such
20 conviction is of a crime defined pursuant to the laws of any other
21 state, or of the United States, the underlying offense shall constitute
22 a crime under the laws of this state for which suspension or revocation
23 of licenses may be effectuated under this section. Such hearing shall be
24 conducted in accordance with the procedures established by the secretary
25 of state therefor. Such procedures shall be consistent with the
26 provisions set forth in article three of the state administrative proce-
27 dure act.] 1. Powers of department of state. The department of state may
28 deny an application or may revoke or suspend a license issued pursuant
29 to this article, impose a fine not exceeding one thousand dollars per
30 violation payable to the department of state, issue a reprimand and
31 order restitution upon proof to the satisfaction of the secretary of
32 state that the holder thereof has: (a) violated any provision of this
33 article or any rule or regulation adopted hereunder; (b) made a material
34 misstatement in the application for such license; (c) engaged in fraud
35 or fraudulent practices; (d) demonstrated untrustworthiness or incompe-
36 tency; or (e) been convicted of serious offense or misdemeanor which, in
37 the discretion of the secretary, bears such a relationship to licensure
38 as to constitute a bar to licensure or renewal.
39 2. Determination of department of state. In the event that the
40 department of state shall revoke or suspend any such license, or impose
41 any fine or reprimand on the holder thereof, its determination shall be
42 in writing and officially signed. The original of such determination,
43 when so signed, shall be filed with the department of state and copies
44 thereof shall be served personally or by certified mail upon the licen-
45 see or applicant and addressed to the principal place of business of
46 such licensee.
47 3. No license shall be suspended or revoked nor shall any fine or
48 reprimand be imposed, nor shall any application be denied, until after
49 an opportunity for a hearing had before an officer or employee of the
50 department of state designated for such purpose by the secretary of
51 state upon notice to the licensee or applicant of at least ten days. The
52 notice shall be served by certified mail and shall state the date and
53 place of hearing and set forth the ground or grounds constituting the
54 charges against the licensee or the reasons for the proposed denial of
55 the application. The licensee or applicant shall have the opportunity to
56 be heard in his or her defense either in person or by counsel and may
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1 produce witnesses and testify on his or her behalf. A stenographic
2 record of the hearing shall be taken and preserved. The hearing may be
3 adjourned from time to time. The person conducting the hearing shall
4 make a written report of his or her findings and a recommendation to the
5 secretary of state for decision. The secretary of state shall review
6 such findings and the recommendation and, after due deliberation, shall
7 issue an order accepting, modifying or rejecting such recommendation and
8 dismissing the charges or suspending or revoking the license or imposing
9 a fine or reprimand upon the licensee. For the purpose of this article,
10 the secretary of state or any officer or employee of the department of
11 state designated by him or her, may administer oaths, take testimony,
12 subpoena witnesses and compel the production of books, papers, records
13 and documents deemed pertinent to the subject of investigation.
14 § 10. Subdivisions 2, 3, 4, 5, and 6 of section 25.35 of the arts and
15 cultural affairs law, as added by chapter 704 of the laws of 1991, are
16 amended to read as follows:
17 2. Any person, firm or corporation which is convicted of violating
18 subdivision two of section 25.09 of this article shall be guilty of a
19 misdemeanor punishable by a term of imprisonment not to exceed one year
20 or by a fine not to exceed [three] seven hundred fifty dollars on the
21 first conviction; [six] one thousand five hundred dollars on the second
22 conviction; and [one] two thousand [one hundred] dollars, on each subse-
23 quent conviction or by both such fine and imprisonment.
24 3. Any person, firm or corporation which is convicted of knowingly
25 violating subdivision one of section 25.07 or section 25.13 or section
26 25.15 of this article shall be guilty of a misdemeanor punishable by a
27 term of imprisonment not to exceed one hundred eighty days or by a fine
28 not to exceed [two] five hundred [fifty] dollars on the first
29 conviction; [five hundred] one thousand dollars on the second
30 conviction; and [one] two thousand dollars on each subsequent conviction
31 or by both such fine and imprisonment.
32 4. Notwithstanding any other penalty which may be imposed for any
33 other violation of this article, any person, firm or corporation which
34 is convicted of violating section 25.11 of this article shall be guilty
35 of a violation punishable by a fine not to exceed [one] two hundred
36 dollars on the first conviction; [two] five hundred [fifty] dollars on
37 the second conviction; and [five hundred] one thousand dollars on each
38 subsequent conviction.
39 5. Any person, firm or corporation which is convicted of violating
40 subdivision one of section 25.09 of this article shall be guilty of a
41 violation punishable by a fine not to exceed [two] five hundred dollars.
42 6. Any person, firm or corporation which is convicted of violating any
43 other section of this article shall be guilty of a violation punishable
44 by a fine not to exceed [one] two hundred fifty dollars.
45 § 11. Section 4 of chapter 704 of the laws of 1991, amending the arts
46 and cultural affairs law and chapter 912 of the laws of 1920 relating to
47 the regulation of boxing and wrestling relating to tickets to places of
48 entertainment, as amended by chapter 61 of the laws of 2007, is amended
49 to read as follows:
50 § 4. This act shall take effect on the sixtieth day after it shall
51 have become a law, provided, chapter 61 of the laws of 2007 shall not
52 take effect with respect to the issuance of licenses or certificates
53 under this article by the secretary of state or department of state
54 until January 1, 2008 and regulation under this article by the commis-
55 sioners of licenses of the political subdivisions of the state shall
56 continue through December 31, 2007, and shall remain in full force and
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1 effect only until and including June 1, 2009 when such act shall be
2 repealed and when, notwithstanding any other provision of law, the
3 provisions of article 25 of title G of the arts and cultural affairs
4 law, repealed by such act, shall be reinstituted. Provided, however, the
5 printing on tickets required pursuant to sections 25.07 and 25.08 of
6 article 25 of the arts and cultural affairs law, as added by this act,
7 shall not apply to tickets printed prior to enactment of such article so
8 long as notice of the higher maximum premium price and prohibition of
9 sales within one thousand five hundred feet from the physical structure
10 of the place of entertainment, where applicable, is prominently
11 displayed at the point of sale and at such place of entertainment.
12 § 12. Section 19 of chapter 61 of the laws of 2007 amending the arts
13 and cultural affairs law relating to the resale of tickets to places of
14 entertainment, is amended to read as follows:
15 § 19. This act shall take effect immediately, provided this chapter
16 shall not take effect with respect to the issuance of licenses or
17 certificates under this article by the secretary of state or department
18 of state until January 1, 2008 and regulation under this article by the
19 commissioners of licenses of the political subdivisions of the state
20 shall continue through December 31, 2007, and provided further, that the
21 amendments to article 25 of title G of the arts and cultural affairs law
22 made by sections one through fifteen of this act shall not affect the
23 repeal of such article and shall be deemed repealed therewith; and
24 provided further that section seventeen of this act shall take effect
25 upon the reversion of article 25 of title G of the arts and cultural
26 affairs law pursuant to section 4 of chapter 704 of the laws of 1991, as
27 amended.
28 § 13. This act shall take effect immediately; provided, however, that
29 the amendments to article 25 of title G of the arts and cultural affairs
30 law made by sections one through ten of this act shall not affect the
31 repeal of such article and shall be deemed repealed therewith.
