Florida Senate - 2015                              CS for SB 742
       
       
        
       By the Committee on Commerce and Tourism; and Senator Simpson
       
       
       
       
       
       577-03123A-15                                          2015742c1
    1                        A bill to be entitled                      
    2         An act relating to ticket sales; amending s. 817.36,
    3         F.S.; defining terms; revising provisions to include
    4         digital platforms; revising certain presale disclosure
    5         requirements; revising provisions relating to
    6         prohibitions on bypassing portions of the ticket
    7         buying process, disguising the identity of a buyer, or
    8         circumventing security measures; providing criminal
    9         penalties for violations; providing for recovery of
   10         damages up to treble the amount of actual damages for
   11         such violations; providing criminal penalties for
   12         knowingly reselling a ticket in violation of statute;
   13         deleting provisions imposing penalties for
   14         intentionally using or selling software to circumvent
   15         certain ticket seller security measures; requiring
   16         specified disclosures before resale of a ticket;
   17         prohibiting misrepresentations of affiliation or
   18         endorsement by resellers without consent; providing
   19         exceptions; authorizing declaratory judgments;
   20         authorizing the Department of Legal Affairs or a state
   21         attorney to bring a civil or criminal action under
   22         certain circumstances; providing criminal penalties
   23         for certain violations; requiring rulemaking;
   24         providing an effective date.
   25          
   26  Be It Enacted by the Legislature of the State of Florida:
   27  
   28         Section 1. Section 817.36, Florida Statutes, is amended to
   29  read:
   30         817.36 Ticket sales Resale of tickets.—
   31         (1) As used in this section, the term:
   32         (a) “Department” means the Department of Agriculture and
   33  Consumer Services.
   34         (b) “Face value” means the face price of a ticket, as
   35  determined by the event presenter and printed or displayed on
   36  the ticket.
   37         (c) “Online marketplace” means a website, software
   38  application for a mobile device, or any other digital platform
   39  that provides a forum for the buying and selling of tickets, but
   40  does not include a website, software application for a mobile
   41  device, or any other digital platform operated by a reseller,
   42  ticket issuer, event presenter, or agent of an owner or operator
   43  of a place of entertainment.
   44         (d) “Place of entertainment” means a privately owned and
   45  operated entertainment facility or publicly owned and operated
   46  entertainment facility in this state, such as a theater,
   47  stadium, museum, arena, racetrack, or other place where
   48  performances, concerts, exhibits, games, athletic events, or
   49  contests are held and for which an entry fee is charged. A
   50  facility owned by a school, college, university, or house of
   51  worship is a place of entertainment only when an event is held
   52  for which an entry fee is charged.
   53         (e) “Resale website” means a website, software application
   54  for a mobile device, any other digital platform, or portion
   55  thereof, whose primary purpose is to facilitate the resale of
   56  tickets to consumers, but excludes an online marketplace.
   57         (f) “Ticket” means a printed, electronic, or other type of
   58  evidence of the right, option, or opportunity to occupy space at
   59  or to enter or attend an entertainment event even if not
   60  evidenced by any physical manifestation of such right.
   61         (2)(1) A person or entity that offers for resale or resells
   62  any ticket may charge only $1 above the face value admission
   63  price charged therefor by the original ticket seller of the
   64  ticket for the following transactions:
   65         (a) Passage or accommodations on any common carrier in this
   66  state. However, this paragraph does not apply to travel agencies
   67  that have an established place of business in this state and are
   68  required to pay state, county, and city occupational license
   69  taxes.
   70         (b) Multiday or multievent tickets to a park or
   71  entertainment complex or to a concert, entertainment event,
   72  permanent exhibition, or recreational activity within such a
   73  park or complex, including an entertainment/resort complex as
   74  defined in s. 561.01(18).
   75         (c) Event tickets originally issued by a charitable
   76  organization exempt from taxation under s. 501(c)(3) of the
   77  Internal Revenue Code for which no more than 3,000 tickets are
   78  issued per performance. The charitable organization must issue
   79  event tickets with the following statement conspicuously printed
   80  or displayed on the face or back of the ticket: “Pursuant to s.
   81  817.36, Florida Statutes, this ticket may not be resold for more
   82  than $1 over the face value original admission price.” This
   83  paragraph does not apply to tickets issued or sold by a third
   84  party contractor ticketing services provider on behalf of a
   85  charitable organization otherwise included in this paragraph
   86  unless the required disclosure is printed or displayed on the
   87  ticket.
   88         (d) Any tickets, other than the tickets in paragraph (a),
   89  paragraph (b), or paragraph (c), that are resold or offered
   90  through a resale an Internet website, or online marketplace
   91  unless such resale website or online marketplace is authorized
   92  by the original ticket seller to sell such tickets or makes and
   93  posts the following guarantees and disclosures on through
   94  Internet web pages on which are visibly posted, or links to web
   95  pages on which are posted, text to which a prospective purchaser
   96  is directed before completion of the resale transaction:
   97         1. The resale website or online marketplace operator
   98  guarantees a full refund of the amount paid for the ticket
   99  including any servicing, handling, or processing fees, if such
  100  fees are not disclosed, when:
  101         a. The ticketed event is canceled;
  102         b. The purchaser is denied admission to the ticketed event,
  103  unless such denial is due to the action or omission of the
  104  purchaser; or
  105         c. The ticket is not delivered to the purchaser in the
  106  manner requested and pursuant to any delivery guarantees made by
  107  the reseller and such failure results in the purchaser’s
  108  inability to attend the ticketed event.
  109         2. The resale website or online marketplace operator
  110  discloses that it is not the issuer, original seller, or
  111  reseller of the ticket or items and does not control the pricing
  112  of the ticket or items, which may be resold for more than their
  113  face original value.
  114         (3)(2) This section does not authorize any individual or
  115  entity to sell or purchase tickets at any price on property or
  116  place of entertainment where an event is being held without the
  117  prior express written consent of the owner of the property or
  118  place of entertainment.
  119         (4)(3) Any sales tax due for resales under this section
  120  shall be remitted to the Department of Revenue in accordance
  121  with s. 212.04.
  122         (4) A person who knowingly resells a ticket or tickets in
  123  violation of this section is liable to the state for a civil
  124  penalty equal to treble the amount of the price for which the
  125  ticket or tickets were resold.
  126         (5)(a) A person may not sell, use, or cause to be used any
  127  means, method, technology, device, or software that is designed
  128  or intended to, or that functions to, bypass portions of the
  129  ticket-buying process or disguise the identity of the ticket
  130  purchaser with the intent to circumvent a security measure, an
  131  access control system or other control, authorization, or
  132  measure on a ticket issuer’s or resale ticket agent’s website,
  133  software application for a mobile device, or digital platform.
  134         (b) A person may not use or cause to be used any means,
  135  method, or technology that is designed, intended, or functions
  136  to disguise the identity of the purchaser with the purpose of
  137  purchasing or attempting to purchase via online sale a quantity
  138  of tickets to a place of entertainment in excess of authorized
  139  limits established by the owner or operator of a place of
  140  entertainment or of the entertainment event or his or her agent.
  141         (c) A person who knowingly violates this subsection commits
  142  a misdemeanor of the second degree, punishable as provided in s.
  143  775.082 or s. 775.083 or by a fine not to exceed $10,000, or
  144  both. Each ticket purchase, sale, or violation of this
  145  subsection constitutes a separate offense.
  146         (d) A party that has been injured by wrongful conduct in
  147  violation of this subsection may bring an action to recover all
  148  actual damages suffered as a result of any of such wrongful
  149  conduct. The court in its discretion may award damages up to
  150  three times the amount of actual damages. A person who
  151  intentionally uses or sells software to circumvent on a ticket
  152  seller’s Internet website a security measure, an access control
  153  system, or any other control or measure that is used to ensure
  154  an equitable ticket-buying process is liable to the state for a
  155  civil penalty equal to treble the amount for which the ticket or
  156  tickets were sold.
  157         (6) A person, resale website, or online marketplace must
  158  clearly and conspicuously disclose to a prospective ticket
  159  resale purchaser, whether on the resale website or online
  160  marketplace, or in person, before a resale:
  161         (a) The refund policy of the person or resale website, or
  162  online marketplace in connection with the cancellation or
  163  postponement of an entertainment event;
  164         (b) That it is a resale website or online marketplace and
  165  prices of tickets can often exceed face value; and
  166         (c) If the ticket is in the actual physical possession of
  167  the reseller, the face value and exact location of the seat
  168  offered for sale, including a section, row, and seat number, or
  169  area specifically designated as accessible seating; or
  170         (d) If the ticket is not in the actual physical possession
  171  of the reseller:
  172         1. That the ticket offered for sale is not in the actual
  173  physical possession of the reseller;
  174         2. The period of time when the reseller reasonably expects
  175  to have the ticket in actual physical possession and available
  176  for delivery; and
  177         3. Whether the reseller is actively making an offer to
  178  procure the ticket.
  179  
  180  This subsection does not apply to a person who does not
  181  regularly engage in the business of reselling tickets; who, in
  182  any given 12-month period, resells fewer than 60 tickets or
  183  fewer than one-third of all tickets purchased from a given
  184  sports entity, whichever is less; and who obtains the tickets
  185  for his or her own use or the use of his or her family members,
  186  friends, or acquaintances. As used in this section, the term
  187  “software” means computer programs that are primarily designed
  188  or produced for the purpose of interfering with the operation of
  189  any person or entity that sells, over the Internet, tickets of
  190  admission to a sporting event, theater, musical performance, or
  191  place of public entertainment or amusement of any kind.
  192         (7)(a) A resale website or online marketplace shall not
  193  make any representation of affiliation or endorsement with a
  194  venue or artist without the express written consent of the venue
  195  or artist, except when it constitutes fair use and is consistent
  196  with applicable laws.
  197         (b) A person who knowingly violates this subsection commits
  198  a felony of the third degree, punishable as provided in s.
  199  775.082 or s. 775.083 or by a fine not to exceed $10,000, or
  200  both.
  201         (8)(a) A person aggrieved by a violation of this section
  202  may, without regard to any other remedy or relief to which the
  203  person is entitled, bring an action to obtain a declaratory
  204  judgment that an act or practice violates this section and to
  205  enjoin a person who has violated, is violating, or is otherwise
  206  likely to violate this section.
  207         (b) In any action brought by a person who has suffered a
  208  loss as a result of a violation of this section, such person may
  209  recover actual damages, plus attorney fees and court costs.
  210         (9) If the department, by its own inquiry or as a result of
  211  complaints, has reason to believe that a violation of this
  212  section has occurred or is occurring, the department may conduct
  213  an investigation, conduct hearings, subpoena witnesses and
  214  evidence, and administer oaths and affirmations. If, as a result
  215  of the investigation, the department has reason to believe a
  216  violation of this section has occurred, the department with the
  217  coordination of the Department of Legal Affairs and any state
  218  attorney, if the violation has occurred or is occurring within
  219  her or his judicial circuit, shall have the authority to bring a
  220  civil action and to seek any other relief, including injunctive
  221  relief, as the court deems appropriate. The Department of Legal
  222  Affairs or any state attorney having jurisdiction may bring a
  223  civil or criminal action to seek any other relief, as the court
  224  deems appropriate. This subsection does not prohibit the
  225  department from providing information to any law enforcement
  226  agency or to any other regulatory agency.
  227         (10) Except as otherwise provided in this section a person
  228  who knowingly resells a ticket or tickets in violation of this
  229  section commits misdemeanor of the second degree, punishable as
  230  provided in s. 775.082 or s. 775.083. Each violation of this
  231  section constitutes a separate offense.
  232         (11) The department shall adopt rules to implement this
  233  section.
  234         Section 2. This act shall take effect October 1, 2015.