| 1 | A bill to be entitled |
| 2 | An act relating to resale of tickets; creating part XII of |
| 3 | chapter 559, F.S.; providing definitions; requiring |
| 4 | registration of certain ticket resellers; requiring |
| 5 | specified information from registrants; providing for a |
| 6 | registration fee; requiring a current registration |
| 7 | certificate to obtain a local occupational license; |
| 8 | requiring specified registration information in contracts |
| 9 | and advertisements; requiring notice of changes of name or |
| 10 | location; prohibiting assignment of registration; |
| 11 | providing for application of specified administrative |
| 12 | provisions to such registrations; permitting denial or |
| 13 | revocation of registration in certain circumstances; |
| 14 | providing for a performance bond; providing penalties; |
| 15 | amending s. 817.357, F.S.; prohibiting use of computer |
| 16 | software to evade quantity limits on ticket purchases; |
| 17 | requiring an original ticket seller to provide specified |
| 18 | information on a publicly available Internet site; |
| 19 | providing penalties; amending s. 817.36, F.S.; providing |
| 20 | civil penalties for certain violations; providing an |
| 21 | effective date. |
| 22 |
|
| 23 | Be It Enacted by the Legislature of the State of Florida: |
| 24 |
|
| 25 | Section 1. Part XII of chapter 559, Florida Statutes, |
| 26 | consisting of section 559.945, is created to read: |
| 27 | PART XII |
| 28 | TICKET RESELLERS |
| 29 | 559.945 Ticket resellers.-- |
| 30 | (1) For the purposes of this section, the term: |
| 31 | (a) "Department" means the Department of Agriculture and |
| 32 | Consumer Services. |
| 33 | (b) "Resale" means a sale of a ticket authorized under s. |
| 34 | 817.36(3). |
| 35 | (c) "Ticket" means any ticket, token, paper, or other |
| 36 | thing designed for admission to or the rendering of services by |
| 37 | any sports, amusement, concert, or other facility offering |
| 38 | services to the general public. |
| 39 | (2) Each reseller of tickets shall annually register with |
| 40 | the department, providing: its legal business or trade name, |
| 41 | mailing address, and business locations; the full names, |
| 42 | addresses, telephone numbers, and social security numbers of its |
| 43 | owners or corporate officers and directors and the Florida agent |
| 44 | of the corporation; a statement indicating whether it is a |
| 45 | domestic or foreign corporation, its state and date of |
| 46 | incorporation, its charter number, and, if a foreign |
| 47 | corporation, the date it registered with the state, and |
| 48 | occupational license where applicable; the date on which a |
| 49 | reseller of tickets registered its fictitious name if the |
| 50 | reseller of tickets is operating under a fictitious or trade |
| 51 | name; the name of all other corporations, business entities, and |
| 52 | trade names through which each owner of the reseller of tickets |
| 53 | operated, was known, or did business as a reseller of tickets |
| 54 | within the preceding 5 years; a list of all authorized |
| 55 | independent agents, including the agent's trade name, full name, |
| 56 | mailing address, business address, telephone numbers, and social |
| 57 | security number; the business location and address of each |
| 58 | branch office and the full name and address of the manager or |
| 59 | supervisor; and proof of purchase of adequate bond or |
| 60 | establishment of a letter of credit or certificate of deposit as |
| 61 | required in this section. A certificate evidencing proof of |
| 62 | registration shall be issued by the department and must be |
| 63 | prominently displayed in the reseller of tickets' primary place |
| 64 | of business. |
| 65 | (3) Registration fees shall be $300 per year per |
| 66 | registrant. All amounts collected shall be deposited by the |
| 67 | Chief Financial Officer to the credit of the General Inspection |
| 68 | Trust Fund of the Department of Agriculture and Consumer |
| 69 | Services pursuant to s. 570.20, for the sole purpose of |
| 70 | administration of this section. |
| 71 | (4) Each independent agent shall annually file an |
| 72 | affidavit with the department prior to engaging in business in |
| 73 | this state. This affidavit must include the independent agent's |
| 74 | full name, legal business or trade name, mailing address, |
| 75 | business address, telephone number, social security number, and |
| 76 | the name or names and addresses of each reseller of tickets |
| 77 | represented by the independent agent. A letter evidencing proof |
| 78 | of filing must be issued by the department and must be |
| 79 | prominently displayed in the independent agent's primary place |
| 80 | of business. As used in this subsection, the term "independent |
| 81 | agent" means a person who represents a reseller of tickets by |
| 82 | soliciting persons on its behalf; who has a written contract |
| 83 | with a reseller of tickets that is operating in compliance with |
| 84 | this section and any rules adopted thereunder; who does not |
| 85 | receive a fee, commission, or other valuable consideration |
| 86 | directly from the purchaser for the reseller of tickets; who |
| 87 | does not at any time have any unissued ticket stock in his or |
| 88 | her possession; and who does not have the ability to issue |
| 89 | tickets. |
| 90 | (5) Any person applying for or renewing a local |
| 91 | occupational license to engage in business as a reseller of |
| 92 | tickets must exhibit a current registration certificate from the |
| 93 | department before the local occupational license may be issued |
| 94 | or reissued. |
| 95 | (6) Each contract of a reseller of tickets must include |
| 96 | the phrase " (NAME OF FIRM) is registered with the State of |
| 97 | Florida as a Reseller of Tickets. Registration No._____." |
| 98 | (7) Each advertisement of a reseller of tickets must |
| 99 | include the phrase "Fl. Reseller of Tickets Reg. No._____." |
| 100 | (8) No registration shall be valid for any reseller of |
| 101 | tickets transacting business at any place other than that |
| 102 | designated in its application, unless the department is first |
| 103 | notified in writing in advance of any change of location. A |
| 104 | registration issued under this section shall not be assignable, |
| 105 | and the reseller of tickets shall not be permitted to conduct |
| 106 | business under more than one name except as registered. A |
| 107 | reseller of tickets desiring to change its registered name or |
| 108 | location or designated agent for service of process at a time |
| 109 | other than upon renewal of registration shall notify the |
| 110 | department of such change. |
| 111 | (9) Applications under this section shall be subject to |
| 112 | the provisions of s. 120.60. |
| 113 | (10) The department may deny or refuse to renew the |
| 114 | registration of any reseller of tickets based upon a |
| 115 | determination that the reseller of tickets, or any of its |
| 116 | directors, officers, owners, or general partners: |
| 117 | (a) Has failed to meet the requirements for registration |
| 118 | as provided in this section; |
| 119 | (b) Has been convicted of a crime involving fraud, |
| 120 | dishonest dealing, or any other act of moral turpitude; |
| 121 | (c) Has not satisfied a civil fine or penalty arising out |
| 122 | of any administrative or enforcement action brought by any |
| 123 | governmental agency or private person based upon conduct |
| 124 | involving fraud, dishonest dealing, or any violation of this |
| 125 | section; |
| 126 | (d) Has pending against him or her any criminal, |
| 127 | administrative, or enforcement proceedings in any jurisdiction, |
| 128 | based upon conduct involving fraud, dishonest dealing, or any |
| 129 | other act of moral turpitude; or |
| 130 | (e) Has had a judgment entered against him or her in any |
| 131 | action brought by the department or the Department of Legal |
| 132 | Affairs pursuant to ss. 501.201-501.213 or this section. |
| 133 | (11)(a) An application must be accompanied by a |
| 134 | performance bond in the amount of $25,000. The surety on such |
| 135 | bond shall be a surety company authorized to do business in the |
| 136 | state. |
| 137 | (b) In lieu of the performance bond required in this |
| 138 | subsection, a registrant or applicant for registration may |
| 139 | establish a certificate of deposit or an irrevocable letter of |
| 140 | credit in a Florida banking institution in the amount of the |
| 141 | performance bond. The department shall be the beneficiary to |
| 142 | this certificate of deposit, and the original shall be filed |
| 143 | with the department. Any such letter of credit shall provide |
| 144 | that the issuer will give the department not less than 120 days' |
| 145 | written notice prior to terminating or refusing to renew the |
| 146 | letter of credit. |
| 147 | (c) The bond, letter of credit, or certificate of deposit |
| 148 | shall be in favor of the department for the use and benefit of |
| 149 | any ticket purchaser who is injured by the fraud, |
| 150 | misrepresentation, breach of contract, financial failure, or |
| 151 | violation of any provision of this section or s. 817.357 by the |
| 152 | reseller of tickets. Such liability may be enforced either by |
| 153 | proceeding in an administrative action as specified in paragraph |
| 154 | (d) or by filing a judicial suit at law in a court of competent |
| 155 | jurisdiction. However, in such court suit the bond, letter of |
| 156 | credit, or certificate of deposit posted with the department |
| 157 | shall not be amenable or subject to any judgment or other legal |
| 158 | process issuing out of or from such court in connection with |
| 159 | such lawsuit, but such bond, letter of credit, or certificate of |
| 160 | deposit shall be amenable to and enforceable only by and through |
| 161 | administrative proceedings before the department. It is the |
| 162 | intent of the Legislature that such bond, letter of credit, or |
| 163 | certificate of deposit shall be applicable and liable only for |
| 164 | the payment of claims duly adjudicated by order of the |
| 165 | department. The bond, letter of credit, or certificate of |
| 166 | deposit shall be open to successive claims, but the aggregate |
| 167 | amount may not exceed the amount of the bond, letter of credit, |
| 168 | or certificate of deposit. |
| 169 | (d) Any ticket purchaser may file a claim against the |
| 170 | bond, letter of credit, or certificate of deposit which shall be |
| 171 | made in writing to the department within 120 days after an |
| 172 | alleged injury has occurred or is discovered to have occurred. |
| 173 | The proceedings shall be held in accordance with ss. 120.569 and |
| 174 | 120.57. |
| 175 | (e) In any situation in which the reseller of tickets is |
| 176 | currently the subject of an administrative, civil, or criminal |
| 177 | action by either the department, the Department of Legal |
| 178 | Affairs, or the state attorney concerning compliance with this |
| 179 | section, the right to proceed against the bond, letter of |
| 180 | credit, or certificate of deposit, as provided in paragraph (d), |
| 181 | shall be suspended until after any enforcement action becomes |
| 182 | final. |
| 183 | (12) A person who resells a ticket without a valid |
| 184 | registration under this section commits a misdemeanor of the |
| 185 | second degree, punishable as provided in s. 775.082 or s. |
| 186 | 775.083. |
| 187 | Section 2. Section 817.357, Florida Statutes, is amended |
| 188 | to read: |
| 189 | 817.357 Purchase of tickets.-- |
| 190 | (1)(a) Whoever knowingly: |
| 191 | 1. Purchases from the original ticket seller a quantity of |
| 192 | tickets to an event which exceeds the maximum ticket limit |
| 193 | quantity posted by or on behalf of the original ticket seller at |
| 194 | the point of original sale or printed on the tickets themselves |
| 195 | and intends to resell such tickets; |
| 196 | 2. Uses computer software to purchase tickets to an event |
| 197 | in a way that evades the ticket limit quantity posted by or on |
| 198 | behalf of the original ticket seller; or |
| 199 | 3. Is an original ticket seller and refuses to post on a |
| 200 | publicly available Internet website the following information in |
| 201 | connection with the sale, allocation, or distribution of tickets |
| 202 | to each event for which the seller is the original seller as |
| 203 | soon as possible in conjunction with the original public sale: |
| 204 | a. The number of tickets offered for sale to the general |
| 205 | public at each price level; |
| 206 | b. The number of tickets allocated or distributed to the |
| 207 | original ticket seller or its agents at each price level; |
| 208 | c. The number of tickets sold, allocated, or distributed |
| 209 | to fan clubs at each price level; |
| 210 | d. The number of tickets sold, allocated, or distributed |
| 211 | to the promoter or performer or their agents at each price |
| 212 | level; and |
| 213 | e. The identity of the recipients of any tickets sold, |
| 214 | allocated, or distributed to anyone not listed in sub- |
| 215 | subparagraphs a.-d. at each price level, |
| 216 |
|
| 217 | violates ss. 501.201-501.213, the Florida Deceptive and Unfair |
| 218 | Trade Practices Act. |
| 219 | (b) A person who violates subparagraph (a)2. commits a |
| 220 | misdemeanor of the second degree, punishable as provided in s. |
| 221 | 775.082 or s. 775.083. |
| 222 | (2) A person or firm is not liable under this section with |
| 223 | respect to tickets for which that person or firm is the original |
| 224 | ticket seller. For purposes of this section, the term "original |
| 225 | ticket seller" means the issuer of such ticket or a person or |
| 226 | firm who provides distribution services or ticket sales services |
| 227 | under a contract with such issuer. |
| 228 | Section 3. Section 817.36, Florida Statutes, is amended to |
| 229 | read: |
| 230 | 817.36 Resale of tickets.-- |
| 231 | (1) Whoever shall offer for resale or resell any ticket |
| 232 | may only charge $1 above the admission price charged therefor by |
| 233 | the original ticket seller of said ticket for the following |
| 234 | transactions: |
| 235 | (a)(1) Passage or accommodations on any common carrier in |
| 236 | this state; however, the provisions of this paragraph subsection |
| 237 | shall not apply to travel agencies that have an established |
| 238 | place of business in this state, which place of business is |
| 239 | required to pay state, county, and city occupational license |
| 240 | taxes. |
| 241 | (b)(2) Multiday or multievent tickets to a park or |
| 242 | entertainment complex or to a concert, entertainment event, |
| 243 | permanent exhibition, or recreational activity within such a |
| 244 | park or complex, including an entertainment/resort complex as |
| 245 | defined in s. 561.01(18). |
| 246 | (c)(3) Any tickets, other than the tickets in paragraphs |
| 247 | (a) and (b) subsections (1) and (2), that are resold or offered |
| 248 | through an Internet website, unless such website is authorized |
| 249 | by the original ticket seller or makes and posts the following |
| 250 | guarantees and disclosures through Internet web pages on which |
| 251 | are visibly posted, or links to web pages on which are posted, |
| 252 | text to which a prospective purchaser is directed before |
| 253 | completion of the resale transaction: |
| 254 | 1.(a) The website operator guarantees a full refund of the |
| 255 | amount paid for the ticket including any servicing, handling, or |
| 256 | processing fees, if such fees are not disclosed, when: |
| 257 | a.1. The ticketed event is canceled; |
| 258 | b.2. The purchaser is denied admission to the ticketed |
| 259 | event, unless such denial is due to the action or omission of |
| 260 | the purchaser; |
| 261 | c.3. The ticket is not delivered to the purchaser in the |
| 262 | manner requested and pursuant to any delivery guarantees made by |
| 263 | the reseller and such failure results in the purchaser's |
| 264 | inability to attend the ticketed event. |
| 265 | 2.(b) The website operator discloses that it is not the |
| 266 | issuer, original seller, or reseller of the ticket or items and |
| 267 | does not control the pricing of the ticket or items, which may |
| 268 | be resold for more than their original value. |
| 269 | (2)(4) Nothing in this section authorizes any individual |
| 270 | or entity to sell or purchase tickets at any price on property |
| 271 | where an event is being held without the prior express written |
| 272 | consent of the owner of the property. |
| 273 | (3)(5) Any sales tax due for resales under this section |
| 274 | shall be remitted to the Department of Revenue in accordance |
| 275 | with s. 212.04. |
| 276 | (4) A person who sells a ticket or tickets in violation of |
| 277 | this section is liable to the state for a civil penalty equal to |
| 278 | treble the amount the ticket or tickets were sold for in |
| 279 | violation of this section. |
| 280 | Section 4. This act shall take effect October 1, 2008. |