Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4276 Compare Versions

Only one version of the bill is available at this time.

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1	1	HOUSE . . . . . . . . No. 4276
2	2	The Commonwealth of Massachusetts
3	3	________________________________________
4	4	HOUSE OF REPRESENTATIVES, January 25, 2024.
5	5	The committee on Consumer Protection and Professional Licensure to
6	6	whom was referred the petition (accompanied by bill, House, No. 259) of
7	7	Daniel R. Carey and others relative to ensuring transparent ticket pricing,
8	8	the petition (accompanied by bill, House, No. 373) of Michael J. Moran
9	9	and Sean Garballey relative to the issuance and sale of sports and
10	10	entertainment tickets, and the petition (accompanied by bill, House No.
11	11	3975) of Tackey Chan relative to certain ticket transactions reports
12	12	recommending that the accompanying bill (House, No. 4276) ought to
13	13	pass.
14	14	For the committee,
15	15	TACKEY CHAN. 1 of 7
16	16	FILED ON: 1/22/2024
17	17	HOUSE . . . . . . . . . . . . . . . No. 4276
18	18	The Commonwealth of Massachusetts
19	19	_______________
20	20	In the One Hundred and Ninety-Third General Court
21	21	(2023-2024)
22	22	_______________
23	23	An Act to secure while improving fans' tickets.
24	24	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
25	25	of the same, as follows:
26	26	1 SECTION 1. Section 182A of Chapter 140 of the General Laws, as appearing in the
27	27	22022 Official Edition, is hereby amended by adding at the end thereof the following 3
28	28	3paragraphs:-
29	29	4 No person, firm, corporation, or other entity shall employ a paperless ticketing system
30	30	5unless the consumer is given an option at the time of initial sale to purchase the same paperless
31	31	6tickets in transferable form that the consumer can transfer at any price, and at any time, and
32	32	7without additional fees, independently. The established price for any given ticket shall be the
33	33	8same regardless of the form or transferability of such ticket. The ability for a ticket to be
34	34	9transferred independently shall not constitute a special service for the purpose of imposing a
35	35	10service charge subject to section one hundred and eighty-five D. It shall be unlawful to penalize,
36	36	11discriminate against, or deny access to a ticket buyer on the basis that the ticket was transferred
37	37	12or resold, including if the ticket was transferred or resold independent from the initial sale
38	38	13ticketing system. 2 of 7
39	39	14 Notwithstanding the above paragraph, an operator of any such theatrical exhibition,
40	40	15public show or public amusement or exhibition, or such operator’s agent, may offer paperless
41	41	16tickets which do not allow for independent transferability provided that such tickets are included
42	42	17in a membership pass at a discounted price offered by a professional sports organization for
43	43	18seating in venues or stadiums with a fixed capacity of over 19,000 seats that guarantees entry to a
44	44	19specified number of events in a specified time period with seat assignments assigned no more
45	45	20than four hours prior to the commencement of the event and such seat assignment must be
46	46	21variable from game to game and not intended for season ticket holders. Tickets provided under
47	47	22such membership pass may be restricted from being transferred or resold, including through the
48	48	23operator or operators’ agents, and must be clearly marked as such prior to initial offering or sale.
49	49	24Such membership pass shall not mean a subscription or season ticket package offered for sale
50	50	25and shall not result in the sale of more than five per cent of the maximum amount of all seats that
51	51	26will be made available at a venue for a particular event to be sold under this section.
52	52	27 Venue operators, or agents of such operators, may maintain and enforce policies with
53	53	28respect to conduct, behavior, public health and safety, or age at the venue or event; and establish
54	54	29limits on the quantity of tickets that may be purchased.
55	55	30 SECTION 2. Chapter 140 of the General Laws, as so appearing, is hereby amended by
56	56	31striking out section 185A, and inserting in place thereof the following section:-
57	57	32 Section 185A. No person shall engage in the business of reselling, or facilitating a
58	58	33mechanism for two or more parties to participate in the resale of, any ticket or tickets of
59	59	34admission or other evidence of right of entry to any theatrical exhibition, public show or public
60	60	35amusement or exhibition required to be licensed under sections one hundred and eighty-one and 3 of 7
61	61	36one hundred and eighty-two of this chapter or under chapter one hundred and twenty-eight A,
62	62	37whether such business is conducted on or off the premises on which such ticket or other evidence
63	63	38is to be used, without being licensed therefor by the commissioner of the division of occupational
64	64	39licensure, in this and the six following sections called the commissioner. Any operator or
65	65	40manager of a website that serves as a platform to facilitate resale, or resale by way of a
66	66	41competitive bidding process, solely between third parties and does not in any other manner
67	67	42engage in reselling of tickets shall be exempt from said licensing requirements.
68	68	43 A license shall be granted only upon a written application setting forth such information
69	69	44as the commissioner may require. Each license issued under this section shall be in force until
70	70	45the first day of January next after its date, unless sooner revoked. No such license may be
71	71	46transferred or assigned except upon written permission of the commissioner. The sale of a ticket
72	72	47or pass, entitling the holder thereof to admission to any such theatrical exhibition, public show or
73	73	48public amusement or exhibition upon payment either of nothing or a sum less than that
74	74	49demanded of the public generally, shall be deemed to be a resale thereof within the meaning of
75	75	50this section.
76	76	51 No person shall engage in or have any interest, as a stockholder or otherwise, in any such
77	77	52business in the conduct of which is or are resold any ticket or tickets of admission or other
78	78	53evidence or evidences of right of entry to any theatrical exhibition, public show or public
79	79	54amusement or exhibition of which said person is the owner or in which he has any interest, as a
80	80	55stockholder or otherwise.
81	81	56 SECTION 3. Section 185B of said chapter, as so appearing, is hereby amended by
82	82	57adding at the end thereof the following:- If any licensee demonstrates that their business 4 of 7
83	83	58provides a service to facilitate ticket transactions without charging any fees or surcharges above
84	84	59the established face value ticket price, on every transaction, except a reasonable and actual
85	85	60service charge for the delivery of tickets, then the fees for licensing shall be waived.
86	86	61 The applicant for a license shall file with the application a bond in the penal sum of
87	87	6225,000 dollars, which bond shall be approved by the commissioner. Each such bond shall be
88	88	63conditioned that the obligor will not be guilty of any fraud or extortion, will not violate directly
89	89	64or indirectly any of the provisions of sections one hundred and eighty-five A through one
90	90	65hundred and eighty-five F, inclusive, or any of the provisions of the license provided for in said
91	91	66sections, will comply with the provisions of said sections and will pay all damages occasioned to
92	92	67any person by reason of any misstatement, misrepresentation, fraud or deceit or any unlawful act
93	93	68or omission of such obligor, his or her agents or employees, while acting within the scope of
94	94	69their employment, made, committed or omitted in connection with the provisions of said section
95	95	70in the business conducted under such license or caused by any other violation in carrying on the
96	96	71business for which such license is granted. One or more recoveries or payments upon such bond
97	97	72shall not vitiate the same but such bond shall remain in full force and effect, provided, however,
98	98	73that the aggregate amount of all such recoveries or payments shall not exceed the penal sum
99	99	74thereof. Before the commissioner shall draw upon such bond, the commissioner shall issue a
100	100	75determination in writing which shall include the basis of such action. The commissioner shall
101	101	76notify in writing the licensee of any such determination and shall afford the licensee an
102	102	77opportunity to respond within 20 days of the receipt of such determination. In no event may the
103	103	78bond be drawn upon in less than 25 days after the service of a determination to the licensee.
104	104	79Such written notice may be served by delivery thereof personally to the licensee, or by certified
105	105	80mail to the last known business address of such licensee. Only upon such determination of the 5 of 7
106	106	81commissioner shall moneys be withdrawn from the bond. The commencement of any action or
107	107	82actions against the surety upon any such bond for a sum or sums aggregating or exceeding the
108	108	83amount of such bond shall require a new and additional bond in like amount as the original one,
109	109	84which shall be filed within 30 days after the demand therefor. Failure to file such bond within
110	110	85such period shall constitute cause for the revocation of the license theretofore issued to the
111	111	86licensee upon whom such demand shall have been made.
112	112	87 Any suit or action against the surety on any bond required by the provisions of this
113	113	88section shall be commenced within one year after the cause of action shall have accrued.
114	114	89 SECTION 4. Section 185C of said chapter, as so appearing, is hereby amended by
115	115	90adding at the end thereof the following two paragraphs:-
116	116	91 No person, firm, corporation, or other entity shall utilize or sell ticket purchasing
117	117	92software to purchase tickets. For the purpose of this paragraph, “ticket purchasing software”
118	118	93shall mean any machine, device, computer program or computer software that, on its own or with
119	119	94human assistance, bypasses security measures or access control systems on a retail ticket
120	120	95purchasing platform, or other controls or measures on a retail ticket purchasing platform that
121	121	96assist in implementing a limit on the number of tickets that can be purchased, to purchase tickets.
122	122	97Any person, firm, corporation, or other entity who knowingly utilizes ticket purchasing software
123	123	98in order to purchase tickets shall be subject to a civil penalty in an amount not less than 500
124	124	99dollars per violation and shall forfeit all profits made from the sale of any such unlawfully
125	125	100obtained tickets. Any person, firm, corporation or other entity who is a licensee who is
126	126	101adjudicated guilty of the following acts may lose their license and may be barred from licensure
127	127	102for a period not to exceed three years if such licensee: (i) knowingly utilized ticket purchasing 6 of 7
128	128	103software in order to purchase tickets; (ii) knowingly resold or offered to resell a ticket that such
129	129	104licensee knew was obtained using ticket purchasing software; or (iii) intentionally maintained
130	130	105any interest in or maintained any control of the operation of ticket purchasing software to
131	131	106purchase tickets.
132	132	107 Any person, firm, corporation, or other entity that has knowledge of the use of ticket
133	133	108purchasing software in violation of this chapter and fails to notify the office of the Attorney
134	134	109General within 30 days shall be subject to a civil penalty in the amount of 500 dollars per
135	135	110violation.
136	136	111 SECTION 5. Section 185D of said chapter, as so appearing, is hereby amended by
137	137	112striking out the first paragraph, and inserting in place thereof the following:-
138	138	113 Section 185D. No licensee under section one hundred and eighty-five A shall sell tickets,
139	139	114facilitate the sale, resell, or facilitate the resale of, any ticket or other evidence of right of entry to
140	140	115any theatrical exhibition, public show or public amusement or exhibition of any description
141	141	116without a guarantee to each purchaser of such sold or resold tickets that they will provide a full
142	142	117refund of the amount paid by the purchaser, including, but not limited to all service charges if
143	143	118any of the following occurs: (i) the event for which such ticket has been sold or resold is
144	144	119cancelled; (ii) the ticket received by the purchaser does not grant the purchaser admission to the
145	145	120event described on the ticket; (iii) the ticket was not delivered to the purchaser prior to the
146	146	121occurrence of the event, unless such failure of delivery was due to an act or omission of the
147	147	122purchaser; or (iv) the ticket fails to conform to its description as advertised unless the purchaser
148	148	123has pre-approved a substitution of tickets. Provision of a replacement ticket to the same event 7 of 7
149	149	124that is in a comparable location, where applicable, and at no additional cost to the consumer,
150	150	125shall be considered providing a full refund for the purposes of this chapter.
151	151	126 A licensee shall disclose in a clear and conspicuous manner the portion of the ticket price
152	152	127stated in dollars that represents a service charge, or any other fee or surcharge to the purchaser.
153	153	128Such a disclosure of the total cost and fees shall be displayed in the ticket listing prior to the
154	154	129ticket being selected for purchase. Disclosures of subtotals, fees, charges, and any other
155	155	130component of the total price shall not be false or misleading and may not be presented more
156	156	131prominently or in the same or larger size as the total price. The price of the ticket shall not
157	157	132increase during the purchase process, excluding reasonable fees for delivery of non-electronic
158	158	133tickets based on the delivery method selected by the purchaser, which shall be disclosed prior to
159	159	134accepting payment therefor.
160	160	135 For the purpose of this section, service charges are defined as costs incurred by said
161	161	136licensee related solely to the procuring and selling of such ticket or other evidence of right of
162	162	137entry and not related to the general business operation of said licensee. Service charges include,
163	163	138but are not limited to, charges for messengers, postage, and long distance telephone calls,
164	164	139extensions of credit and costs attributable thereto.
165	165	140 SECTION 6. Section 185E of said chapter, as so appearing, is hereby amended by
166	166	141inserting after the second sentence, the following new sentence:- A licensee shall keep full and
167	167	142accurate sets of records showing: (i) the prices at which all tickets have been bought and sold by
168	168	143such licensee; and (ii) the names and addresses of the person, firm or corporation from whom
169	169	144they were bought.