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AB-2808 Primary ticket sellers.(2023-2024)

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Date Published: 04/30/2024 09:00 PM
AB2808:v97#DOCUMENT

Amended  IN  Assembly  April 30, 2024
Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2808

Introduced by Assembly Member Wicks

February 15, 2024

An act to add Chapter 21.1 (commencing with Section 22512) to Division 8 of the Business and Professions Code, relating to business.


LEGISLATIVE COUNSEL'S DIGEST


AB 2808, as amended, Wicks. Ticketing enterprise providers. Primary ticket sellers.
Existing law regulates ticket sellers, defined as a person who, for compensation, commission, or otherwise, sells admission tickets to entertainment events. In this regard, existing law prohibits specified ticket selling practices and imposes certain recordkeeping and disclosure requirements on ticket sellers.

This bill would require a ticketing enterprise provider, as defined, to include an application programming interface (API) that enables any participating ticketing provider, as defined, to integrate with the ticket manifest to list and sell primary tickets or secondary tickets, as those terms are defined, that are instantly verified by the ticketing enterprise system. The bill would make it unlawful for a ticketing enterprise provider or an entertainment facility to provide services associated with a system access API, as defined, on an exclusive or discriminatory basis, as specified. The bill would make it unlawful to limit the transfer or resale of a ticket or penalize, discriminate against, or deny access to an event to a person who has resold a ticket or purchases a secondary ticket. This bill would make a violation of the bill’s provisions subject to a $2,500 civil penalty for each ticket not sold or offered for sale in violation of the bill’s provisions.

This bill would prohibit a contract between a primary ticket seller and a venue operator from providing for the primary ticket seller to be the exclusive and sole primary ticket seller. The bill would also prohibit such a contract from having a term longer than 3 years. The bill would require a venue operator, when entering into an agreement with an artist or artist representative, to allow the artist or artist representative to determine the terms and conditions relating to tickets to their events, as specified. The bill would apply its provisions to contracts entered into, amended, or renewed on or after January 1, 2025. The bill would provide an exception for significant national or international sporting events, as specified. The bill would impose a civil penalty of up to $2,500 for each violation of its provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) There are many social and emotional upsides for individuals who are able to experience live entertainment and sporting events, including positive impacts to well-being and happiness.
(b) Live events often serve as a focal point for communities to come together by creating a shared sense of identity, belonging, and social cohesion among attendees with similar interests.
(c) Fans of popular artists and sports teams can have very diverse backgrounds. By fostering a sense of inclusivity and breaking down societal barriers, people of various ages, ethnicities, and backgrounds can share in the enjoyment of these events.
(d) Emotional engagement with musical performances and sports can reduce stress and promote mental well-being. The exciting and positive experiences at sporting events or concerts can trigger the release of endorphins, which are often associated with increased happiness and a positive emotional state.
(e) Studies have shown that listening to music lowers the hormone cortisol, which causes feelings of stress and anxiety, and listening to music can lead to decreases in heart rate, blood pressure, and respiratory rate.
(f) Attending live events often leads to cherished memories, which can have a positive impact on an individual’s emotional well-being and provide a source of nostalgia in the future.
(g) People are very passionate about their fandom and the events that they want to attend, and devote significant time and resources to see their favorite performers or sports teams.
(h) Although it can be argued that it is a luxury to have access to these types of events, there is no question that live entertainment can have a huge, positive impact on people and the communities they live in.
(i) Access to live entertainment has value for inspiring the next generations of artists, athletes, and performers in the state. It encourages creativity and self-expression not only for the performers and athletes, but also for the audience and fans.
(j) Witnessing talented individuals in person can ignite artistic aspirations and may influence the audience to explore their own musical or athletic abilities. This inspiration empowers individuals and can become a catalyst for personal growth, exploring potential, and fostering a sense of empowerment.
(k) For youth, exposure to live entertainment could lead to participation in extracurricular activities, which promotes greater levels of academic achievement, self-esteem, and resiliency.
(l) Given the positive impact of live entertainment events on Californians and their communities, it is in the interest of the Legislature to establish policies that foster and support a vibrant and eclectic live entertainment industry and ensure that Californians continue to have access to a wide range of affordable live entertainment events.

SEC. 2.

 Chapter 21.1 (commencing with Section 22512) is added to Division 8 of the Business and Professions Code, to read:
CHAPTER  21.1. Primary Ticket Sellers

22512.
 For purposes of this chapter, the following definitions apply:
(a) “Artist” means an actor rendering services on the stage, musical artist, musical organization, or other performing artist rendering professional services in theatrical and other live entertainment enterprises.
(b) “Artist representative” means a person or corporation who is authorized to represent an artist and engages in the occupation of procuring, offering, promising, or attempting to procure employment or engagements for an artist or artists.
(c) “Consumer” means a natural person who purchases a ticket to an entertainment event with the purpose of attending that event.
(d) “Entertainment event” means a scheduled performance at a specific date, time, and location, including, but not limited to, a theatrical or operatic performance, concert, or sporting event, including, but not limited to, football, basketball, baseball, boxing, tennis, hockey, or any other sport.
(e) (1) “Entertainment venue” means a publicly or privately owned place that holds live entertainment events, including, but not limited to, an arena, auditorium, concert hall, live performance venue, racetrack, stadium, theater, or other place where entertainment events are presented for a price of admission.
(2) (A) “Entertainment venue” does not include an amusement park, fairground, museum, or other venue where the primary purpose is to provide interactive entertainment that allows the consumer to engage with different exhibits and activities.
(B) A theater or venue operated by a nonprofit entity organized under Section 501(c)(3) of the Internal Revenue Code does not constitute an entertainment venue for purposes of this chapter.
(f) “Primary ticket seller” has the same meaning as that term is defined in Section 22503 but does not include the secondary sale of tickets. “Ticket seller” includes a primary contractor, as defined in Section 22503.5, an agent of a ticket seller, and an online ticket selling marketplace where consumers are able to sell and purchase tickets for an entertainment event.
(g) “Venue operator” means any person who owns, operates, manages, or controls an entertainment venue with a seating capacity of____people or more.

22512.1.
 (a) A contract between a primary ticket seller and a venue operator shall not do either of the following:
(1) Provide for the primary ticket seller to be the exclusive and sole primary ticket seller.
(2) Have a term longer than three years.
(b) A venue operator, when entering into an agreement with an artist or artist representative, shall allow the artist or artist representative to determine the terms and conditions related to the sale, pricing, distribution, and transfer of tickets to the artist’s events.
(c) This section applies only to contracts entered into, amended, or renewed on or after January 1, 2025.

22512.2.
 This chapter does not apply to a significant national or international sporting event where many anticipated attendees of these events will be traveling from outside of the state and outside of the country specifically to attend an event that may require stricter regulations on the sale of tickets for purposes of controlling the sale of tickets in order to ensure maximum availability for consumers and for maintaining the safety and security of both the attendees and the athletes, including, but not limited to, the World Cup, the Super Bowl, the Olympic and Paralympic Games, the annual Rose Bowl game, the Stanley Cup, and the World Series

22512.3.
 A person who violates this chapter shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in an action brought in the name of the people of the State of California by the Attorney General, a district attorney, a county counsel, a city attorney, or a city prosecutor. In addition, the court shall award a prevailing public prosecutor reasonable costs and attorney’s fees. For purposes of this section, each ticket sold or offered for sale in violation of this section shall constitute a separate violation. The remedies provided by this section are in addition to the remedies or penalties available under all other laws of this state.

SECTION 1.Chapter 21.1 (commencing with Section 22512) is added to Division 8 of the Business and Professions Code, to read:
21.1.Ticketing Enterprise Provider
22512.

For purposes of this chapter:

(a)“Entertainment facility” means a publicly or privately owned place of entertainment including, but not limited to, an arena, auditorium, concert hall, live performance venue, racetrack, stadium, theater, or other place where live entertainment events are presented for a price of admission.

(b)“Participating ticketing provider” means a primary ticketing provider or a secondary ticketing provider that meets all of the following requirements:

(1)Has a toll-free telephone number or email address dedicated for consumer complaints.

(2)Has a standard refund policy that guarantees the purchaser a full refund under any of the following circumstances:

(A)The event is canceled.

(B)The ticket does not allow the purchaser to enter the ticketed event unless the ticket is canceled due to an act or omission by the purchaser.

(C)The ticket fails to conform to its description or the purchaser failed to receive the ticket.

(D)The purchaser failed to receive the ticket.

(3)Pays the system access fee.

(c)“Primary ticket” means the initial sale of a ticket to an event held at an entertainment facility.

(d)“Primary ticketing provider” means a business that operates an internet website, software application for a mobile device, or any other digital platform to sell or facilitate the sale of primary tickets to events held at an entertainment facility.

(e)“Secondary ticket” means the sale of a ticket to an event held at an entertainment facility that is subsequent to the sale of the primary ticket.

(f)“Secondary ticketing provider” means a business, including a primary ticketing provider, that operates an internet website, software application for a mobile device, or any other digital platform to facilitate the sale of secondary tickets to events held at an entertainment facility.

(g)“System access API” means an application programming interface that enables a participating ticket provider to integrate with the ticket manifest in order to list and sell primary tickets and list and sell secondary tickets that are instantly verified by the ticketing enterprise system.

(h)“System access fee” means the fee paid by the participating ticketing provider to the primary ticketing provider for the system access API.

(i)“Ticketing enterprise provider” means a business, which may include a primary ticketing provider or a secondary ticketing provider, that operates a ticketing enterprise system.

(j)“Ticketing enterprise system” means a product or product suite used by an entertainment facility to manage box office operations for ticket sales and ticket distribution, including the ticket manifest.

(k)“Ticket manifest” means a detailed accounting of all tickets that have been generated for the event.

22512.1.

A ticketing enterprise provider shall include an application programming interface that enables any participating ticketing provider to integrate with the ticket manifest in order to list and sell primary tickets and list and sell secondary tickets that are instantly verified by the ticketing enterprise system.

22512.2.

(a)The ticketing enterprise provider shall establish a uniform set of terms applicable to all participating ticketing providers to govern participation, maintenance, and support issues associated with the system access API.

(b)It shall be unlawful for a ticketing enterprise provider or an entertainment facility to provide or offer to provide services associated with the system access API on an exclusive or discriminatory basis, including, but not limited to, the following:

(1)Providing an exclusive or tiered schedule for selling primary tickets or secondary tickets.

(2)Providing service enhancements to a participating ticketing provider on more favorable terms than any other participating ticketing provider.

(3)Throttling or degrading access.

22512.3.

The cost of the system access fee shall be reasonable and proportionate to the ticketing enterprise provider’s cost of validating the ticket and maintaining the administration of the system access API. The ticketing enterprise provider shall not adjust the cost of the system access fee to discriminate against or discourage participation by any participating ticketing provider.

22512.4.

It shall be unlawful for a ticketing enterprise provider or entertainment facility to do either of the following:

(a)Limit the transfer or resale of a ticket.

(b)Penalize, discriminate against, or deny access to an event to a person who has resold a ticket or who purchases a secondary ticket.

22512.5.

A person who violates this section shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in an action brought in the name of the people of the State of California by the Attorney General, a district attorney, a city attorney, or a city prosecutor. For purposes of this section, each ticket not sold or offered for sale in violation of this section shall constitute a separate violation. The remedies provided by this section are in addition to the remedies or penalties available under all other laws of this state.