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