SB 6488 — Concerning ticket sales over the internet.

S-4226.2SUBSTITUTES-4003.2SENATE SENATE BILL 6488State of Washington65th Legislature2018 Regular SessionBy Senate Energy, Environment & Technology (originally sponsored by Senators Carlyle, Liias, Conway, and Kuderer)READKudererRead FIRSTfirst TIMEtime 02/02/18.AN01/19/18. ACT Relating to ticket sales over the internet;

amendingReferred RCWto 19.345.005,Committee 19.345.010,on andLabor 18.235.020;& Commerce.AN ACT Relating to ticket sales over the internet;

amending RCW 19.345.005 and 19.345.010;

and prescribing penalties;penalties.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec. 1.  (1) No person, firm, or corporation may resell or engage in the business of reselling any tickets to a place of entertainment without having first procured from the department a license for each location at which business will be conducted.(2) No person, firm, or corporation may operate an internet web site or any other electronic service that provides a mechanism for two or more parties to participate in a resale transaction or that facilitates resale transactions by the means of an auction, or own, conduct, or maintain any office, branch office, bureau, agency, or subagency for such a business without having first procured from the department a license for each location at which business will be conducted.(3) Any operator or manager of a web site that serves as a platform to facilitate resale, or resale by way of a competitive bidding process, solely between third parties and does not in any other manner engage in resales of tickets to places of entertainment is exempt from the licensing requirements of this section.(4) The department shall issue and deliver to an applicant a license to conduct such a business and to own, conduct, or maintain a bureau, agency, subagency, office, or branch office for the conduct of such a business on the premises stated in the application upon the payment by or on behalf of the applicant of a fee of five thousand dollars and shall be renewed upon the payment of a like fee annually.

andThe providinglicense anmay effectivenot date.BEbe ITtransferred ENACTEDor BYassigned, THEexcept LEGISLATUREby OFpermission THEof STATEthe OFdepartment.(a) WASHINGTON:NEWThe SECTION.  Sec. 1.  (1)license Noruns person,to firm,the orfollowing corporationJanuary may1st resellunless orrevoked engageby in the businessdepartment ofprior reselling any tickets to athat placedate.(b) ofThe entertainmentlicense withoutmust havingbe firstgranted procuredupon a ticketwritten resellerapplication licensesetting forforth eachthat locationinformation atas whichthe businessdepartment willmay berequire conductedin fromorder theto department.(2)enable Nothe person,licensee firm,to orcarry corporationinto mayeffect operatethe anprovisions internetof webthis sitechapter orand anymust otherbe electronicaccompanied serviceby thatproof providessatisfactory ato mechanismthe fordepartment twoof orthe moremoral partiescharacter toof participatethe inapplicant.(5) aIf resaleany transactionlicensee orunder thatthis facilitatessection resaledemonstrates transactionsthat bytheir thebusiness meansprovides ofa anservice auction,to orfacilitate own,ticket conduct,transactions orwithout maintaincharging any office,fees, branchsurcharges, office, bureau, agency, or subagencyservice forcharges suchabove athe businessestablished withoutprice, havingon firstevery procuredtransaction, except a ticketreasonable resellerand licenseactual charge for eachthe locationdelivery atof whichtickets, businessthen willthe befees conductedfor fromlicensing theunder department.(3)this Anysection operatormust orbe managerwaived.NEW ofSECTION.  Sec. 2.  (1) aImmediately webupon sitethe thatreceipt servesof asthe alicense platformissued pursuant to facilitatethis resale,chapter or resale by waythe ofdepartment, athe competitivelicensee biddingmust process,at solelyall betweentimes thirdpost parties and doesdisplay notthe license in anya otherconspicuous mannerplace engage in resalesthe principal office of ticketsthe tobusiness placesfor ofwhich entertainmentit is exemptissued, fromand cause the licensinglicense requirementsfor ofeach thisbranch chapter.(4)office, Thebureau, departmentagency, shallor issuesubagency to be posted and deliverat toall antimes applicantdisplayed whoin qualifiesa underconspicuous thisplace sectionin such a ticketbranch reselleroffice, licensebureau, toagency, conductor suchsubagency afor businesswhich andit tois own,issued, conduct,so orthat maintainall apersons bureau,visiting agency,the subagency,principal office, or branch officeoffice, forbureau, theagency, conductor ofsubagency suchmay areadily businesssee on the premisessame, statedand inif the applicationlicensee upondoes business on the paymentinternet, byto orprovide ona behalfhyperlink ofdisplayed thein applicanta ofconspicuous manner to a feescanned copy of fivethe thousandlicense. dollars.

The license shallis subject to inspection by the department or the designee of the department at all reasonable times.(2) It is unlawful for any person, firm, partnership, or corporation holding a license to post the license or to permit the license to be renewedposted upon any premises other than those described therein or to which the paymentlicense has been transferred pursuant to the provisions of this chapter or unlawfully to alter, deface, or destroy such a feelicense.NEW SECTION.  Sec. 3.  (1) The department shall require the applicant for a license to file with the license application a bond to the department in a penal sum of fivetwenty-five thousand dollarsdollars, annually.with two or more sufficient sureties or a duly authorized surety company, which bond must be approved by the department.(2) Each bond must be conditioned that the obligor will not be guilty of any fraud or extortion, will not violate directly or indirectly any of the provisions of this chapter or any of the provisions of the license provided for in this chapter, will comply with the provisions of this chapter and will pay all damages occasioned to any person by reason of any misstatement, misrepresentation, fraud, or deceit or any unlawful act or omission of such obligor, agents, or employees of the obligor, while acting within the scope of their employment, made, committed, or omitted in connection with the provisions of this chapter in the business conducted under such a license or caused by any other violation of this chapter in carrying on the business for which such a license is granted.(3) One or more recoveries or payments upon such a bond does not vitiate the bond but such a bond remains in full force and effect.

TicketHowever, reseller licenses may not be transferred or assigned, except by permission of the department.(5)aggregate Aamount ticket reseller license expires at midnight on December 31st of everyall year,such unlessrecoveries revokedor bypayments the department.(6) A ticket reseller license must be granted upon a written application setting forth information the department may require in order to carry into effect the provisions of this chapter. (7) If an applicant or licensee under this section demonstrates that their business provides a service to facilitate ticket transactions without charging any fees, surcharges, or service charges above the established price on every transaction, except a reasonable and actual charge for the delivery of tickets, then the fees for licensing under this section are not required.NEWexceed SECTION.  Sec. 2.  (1) Immediately upon the receiptpenal ofsum thethereof. license issued pursuant to this chapter by the department, the licensee named therein shall cause the license to be posted and at all times displayed in a conspicuous place in the principal office of the business for which it is issued.

ItBefore shall also cause the licensedepartment forshall eachdraw branchupon office,such bureau,a agency,bond, orthe subagencydepartment toshall beissue posted and at all times displayed in a conspicuousdetermination place in suchwriting athat branchincludes office,the bureau,basis agency,of orsuch subagencyan foraction. which it is issued.

IfThe adepartment shall notify the licensee doesin businesswriting onof any such determination and afford the internet,licensee itan shallopportunity provideto respond within twenty days of the receipt of such a hyperlinkdetermination.(4) displayedIn no event may the bond be drawn upon in aless conspicuousthan mannertwenty-five todays aafter scannedthe copyservice of a determination to the license.licensee.

TheSuch licensewritten isnotice subjectmay tobe inspectionserved by thedelivery departmentthereof orpersonally the designee of the department at all reasonable times.(2) It is unlawful for any person, firm, partnership, or corporation holding a license to post the licenselicensee, or toby permitcertified themail license to be posted upon any premises other than those described therein or to which the licenselast hasknown beenbusiness transferredaddress pursuantof to the provisionslicensee. of this chapter or unlawfully to alter, deface, or destroy such a license.NEW SECTION.  Sec. 3.  (1) Every licensee shall at all times keep full and accurate sets of records showing:

Only upon such a determination of the department may moneys be withdrawn from the bond.

Upon the commencement of any action or actions against the surety upon any such bond for a sum or sums aggregating or exceeding the amount of such a bond, the department shall require a new and additional bond in like amount as the original one, which must be filed with the department within thirty days after the demand therefor.

Failure to file such a bond within such a period constitutes cause for the revocation of the license issued to the licensee upon whom such demand shall have been made.

Any suit or action against the surety on any bond required by the provisions of this section must be commenced within one year after the cause of action has accrued.NEW SECTION.  Sec. 4.  (1) Every licensee shall at all times keep full and accurate sets of records showing:

LicenseesOperators offering for initial sale tickets by means of an auction shall maintain a record of the price when known and the number of tickets and types of seats offered through auction.(2) RecordsThese requiredrecords to be kept under this section must be made available upon request to the attorney general, the department, or other governmental body with the express authority to enforce any section of this chapter.

These records must be retained for a period of not less than ten years.(3) Twice annually, on June 30th and December 31st, every licensee that resells tickets or facilitates the resale or resale auction of tickets between independent parties by any and all means shall report to the department the total number of, and average resale or average final resale auction price of, all tickets to each ticketed event,event. provided, however, that repeat performances of a single event, and multiple events that are part of a season long performance, must be treated as a single event for the purposes of the reporting requirement of this subsection.NEW SECTION.  Sec. 4.  (1) The department may issue an order to cease and desist the unlicensed practice of ticket selling, deny an application for a ticket seller license, refuse to renew a license, revoke or suspend a license, impose a fine not exceeding one thousand dollars per violation, issue a reprimand, or order restitution upon proof to the satisfaction of the department that a person, applicant, or licensee has:(a) Violated any provision of this chapter, the uniform regulation of business and professions act, chapter 18.235 RCW, or any rule adopted under this chapter;(b) Made a material misstatement in the application for such a license;(c) Engaged in fraud or fraudulent practices;(d) Demonstrated untrustworthiness or incompetency;

or(e)However, Beenrepeat convictedperformances of a serioussingle offenseevent, orand misdemeanormultiple which,events inthat theare discretionpart of thea department,season bearslong suchperformance amust relationshipbe totreated licensure as to constitute a barsingle toevent licensurefor or renewal.(2) Disciplinary actions under this chapter must be initiated by the departmentpurposes by serving a written statement of charges upon the person,reporting applicant,requirement orof licenseethis tosubsection.NEW be charged.NEW SECTION.  Sec. 5.  (1) The department hasmay thedeny power,an uponapplication complaint of any person or onmay itsrevoke own initiative, to investigate the business, business practices, or businesssuspend methodsa oflicense anyissued licenseepursuant that are related to the licensee's obligations under this chapter.(2)chapter, Eachimpose licenseea isfine obliged,not onexceeding requestone ofthousand thedollars department,per toviolation supplypayable such information as may be required concerning its business, business practices, or business methods provided that the information requested is related to the complaintdepartment, thatissue formsa thereprimand basisand oforder suchrestitution anupon investigation.(3)proof Each operator of any place of entertainment is required, on request of the department, to supply such information as may be required concerning the business,satisfaction business practices, or business methods of any licensee under this chapter, provided that the informationdepartment requested is related to the complaint that forms the basisholder ofthereof suchhas:(a) anViolated investigation.(4)any Theprovision department may adopt rules as deemed necessary for the implementation and enforcement of this chapter.NEWchapter SECTION.  Sec. 6.  (1) The attorney general may bring an action in the name of the state, or on behalf of persons residing in the state, to restrain and prevent any actrule prohibited or declaredregulation toadopted beunder unlawful in this chapter.(2)chapter;(b) ForMade actionsa broughtmaterial bymisstatement thein attorney general, the legislatureapplication findsfor thatsuch thea practiceslicense;(c) coveredEngaged byin thisfraud chapteror arefraudulent matterspractices;(d) vitallyDemonstrated affectinguntrustworthiness theor publicincompetency; interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.

Foror(e) actionsBeen broughtconvicted byof the attorney general, a violationserious ofoffense thisor chaptermisdemeanor iswhich, not reasonable in relation to the developmentdiscretion and preservation of businessthe anddepartment, isbears ansuch unfaira orrelationship deceptiveto actlicensure inas tradeto orconstitute commercea andbar anto unfairlicensure methodor ofrenewal.(2) competitionIn forthe purposesevent ofthat applying the consumerdepartment protectionrevokes act,or chaptersuspends 19.86 RCW.NEW SECTION.  Sec. 7.  Notwithstanding any rightsuch oflicense, actionor grantedimposes to any governmentalfine bodyor pursuantreprimand toon thisthe chapter,holder any person who has been injured by reason of athe violationlicense, ofthe thisdepartment's chapterdetermination maymust bringbe an action in thewriting person's own name to enjoin such an unlawful act, and toofficially seeksigned. up to five hundred dollars per violation, or actual damages, whichever is greater.

The courtoriginal mayof awardsuch reasonablea attorneys'determination, feeswhen so signed, must be filed with the department and copies must be served personally or by certified mail upon the licensee or applicant and addressed to the principal place of business of such a prevailinglicensee.(3) plaintiff.NEWNo SECTION.  Sec. 8.  Thelicense ticketmay resellerbe licensingsuspended accountor isrevoked creatednor inmay theany custodyfine or reprimand be imposed, nor may any application be denied, until after an opportunity for a hearing before an officer or employee of the statedepartment treasurer.designated for such a purpose by the department upon notice to the licensee or applicant of at least ten days.

AllThe receiptsnotice collectedmust underbe thisserved chapterby mustcertified bemail depositedand intostate the account.date and place of the hearing and set forth the ground or grounds constituting the charges against the licensee or the reasons for the proposed denial of the application.

ExpendituresThe fromlicensee or applicant must have the accountopportunity mayto be usedheard onlyin forhis implementationor her defense either in person or by counsel and enforcementmay ofproduce thiswitnesses chapter.and testify on his or her behalf.

OnlyA thestenographic directorrecord of the departmenthearing ormust thebe director'staken designeeand maypreserved. authorize expenditures from this account.

The accounthearing ismay subjectbe toadjourned allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.Sec. 9.  RCW 19.345.005 and 2015 c 129 s 1 are each amended to read as follows:(1) The legislature finds and declares that transactions involving tickets for admission to places of entertainment are a matter of public interest and subject to the supervision of the state and the appropriate political subdivisions of the state for the purpose of safeguarding the public and generating transparency in ticket reselling.(2) It is the intent of the legislature to protect consumers and ticket sellers from softwaretime that simulates the action of a human being purchasing tickets from a ticket seller in order to evadetime. controls and measures on a ticket seller's web site.

The person conducting the hearing must make a written report of the person's findings and a recommendation to the department for decision.

The department shall review such findings and the recommendation and, after due deliberation, shall issue an order accepting, modifying, or rejecting the recommendation and dismissing the charges or suspending or revoking the license or imposing a fine or reprimand upon the licensee.

For the purpose of this chapter, the department or any officer or employee of the department designated by him or her, may administer oaths, take testimony, subpoena witnesses, and compel the production of books, papers, records, and documents deemed pertinent to the subject of an investigation.NEW SECTION.  Sec. 6.  (1) The department shall have the power, upon complaint of any person or the initiative of any person, to investigate the business, business practices, and business methods of any licensee that relates to this state's or any other state's ticket resale law, or in regards to ticket resale practices generally.(2) Each licensee is obliged, on the reasonable request of the department, to supply such information as may be required concerning his or her business, business practices, or business methods provided that the information requested is related to the complaint that forms the basis of such an investigation.(3) Each operator of any place of entertainment must, on request of the department, supply such information as may be required concerning the business, business practices, or business methods of any licensee provided that the information requested is related to the complaint that forms the basis of such an investigation.(4) The department has the power to adopt rules as may be deemed necessary for the enforcement of this chapter.NEW SECTION.  Sec. 7.  (1) The attorney general may bring an action in the name of the state, or on behalf of persons residing in the state, to restrain and prevent any act prohibited or declared to be unlawful in this chapter.(2) For actions brought by the attorney general, the legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.

For actions brought by the attorney general, a violation of this chapter is not reasonable in relation to the development and preservation of business and is an unfair or deceptive act in trade or commerce and an unfair method of competition for purposes of applying the consumer protection act, chapter 19.86 RCW.NEW SECTION.  Sec. 8.  Notwithstanding any right of action granted to any governmental body pursuant to this chapter, any person who has been injured by reason of a violation of this chapter may bring an action in the person's own name to enjoin such an unlawful act, and to seek up to five hundred dollars per violation, or actual damages, whichever is greater.

The court may award reasonable attorneys' fees to a prevailing plaintiff.Sec. 9.  RCW 19.345.005 and 2015 c 129 s 1 are each amended to read as follows:(1) The legislature finds and declares that transactions involving tickets for admission to places of entertainment are a matter of public interest and subject to the supervision of the state and the appropriate political subdivisions of the state for the purpose of safeguarding the public and generating transparency in ticket reselling.(2) It is the intent of the legislature to protect consumers and ticket sellers from software that simulates the action of a human being purchasing tickets from a ticket seller in order to evade controls and measures on a ticket seller's web site.

Resale includes sales by any means, including in person, or by means of telephone, mail, delivery service, facsimile, internet, email, or other electronic means, where the venue for which the ticket grants admission is located in Washington state.(a) "Resale" does not include any person, firm, or corporation that sells less than fifty tickets per year above the established price.(b) "Resale" does not include any not-for-profit organization, or person acting on behalf of such a not-for-profit organization, as long as any profit realized from ticket reselling is wholly dedicated to the purposes of the not-for-profit organization.Sec. 11.  RCWorganization.NEW 18.235.020SECTION.  Sec. 11.  Sections and1 2017through c8 281of sthis 37act are each amendedadded to read as follows:(1) This chapter applies19.345 onlyRCW.--- toEND the--- director and the boards and commissions having jurisdiction in relation to the businesses and professions licensed under the chapters specified in this section.

This chapter does not apply to any business or profession not licensed under the chapters specified in this section.(2)(a) The director has authority under this chapter in relation to the following businesses and professions:(i) Auctioneers under chapter 18.11 RCW;(ii) Bail bond agents and bail bond recovery agents under chapter 18.185 RCW;(iii) Camping resorts' operators and salespersons under chapter 19.105 RCW;(iv) Commercial telephone solicitors under chapter 19.158 RCW;(v) Cosmetologists, barbers, manicurists, and estheticians under chapter 18.16 RCW;(vi) Court reporters under chapter 18.145 RCW;(vii) Driver training schools and instructors under chapter 46.82 RCW;(viii) Employment agencies under chapter 19.31 RCW;(ix) For hire vehicle operators under chapter 46.72 RCW;(x) Limousines under chapter 46.72A RCW;(xi) Notaries public under chapter 42.45 RCW;(xii) Private investigators under chapter 18.165 RCW;(xiii) Professional boxing, martial arts, and wrestling under chapter 67.08 RCW;(xiv) Real estate appraisers under chapter 18.140 RCW;(xv) Real estate brokers and salespersons under chapters 18.85 and 18.86 RCW;(xvi) Scrap metal processors, scrap metal recyclers, and scrap metal suppliers under chapter 19.290 RCW;(xvii) Security guards under chapter 18.170 RCW;(xviii) Sellers of travel under chapter 19.138 RCW;(xix) Timeshares and timeshare salespersons under chapter 64.36 RCW;(xx) Whitewater river outfitters under chapter 79A.60 RCW;(xxi) Home inspectors under chapter 18.280 RCW;(xxii) Body artists, body piercers, and tattoo artists, and body art, body piercing, and tattooing shops and businesses, under chapter 18.300 RCW;

((and))(xxiii) Appraisal management companies under chapter 18.310 RCW;

and(xxiv) Ticket resellers under chapter 19.345 RCW.(b) The boards and commissions having authority under this chapter are as follows:(i) The state board for architects established in chapter 18.08 RCW;(ii) The Washington state collection agency board established in chapter 19.16 RCW;(iii) The state board of registration for professional engineers and land surveyors established in chapter 18.43 RCW governing licenses issued under chapters 18.43 and 18.210 RCW;(iv) The funeral and cemetery board established in chapter 18.39 RCW governing licenses issued under chapters 18.39 and 68.05 RCW;(v) The state board of licensure for landscape architects established in chapter 18.96 RCW;

and(vi) The state geologist licensing board established in chapter 18.220 RCW.(3) In addition to the authority to discipline license holders, the disciplinary authority may grant or deny licenses based on the conditions and criteria established in this chapter and the chapters specified in subsection (2) of this section.

This chapter also governs any investigation, hearing, or proceeding relating to denial of licensure or issuance of a license conditioned on the applicant's compliance with an order entered under RCW 18.235.110 by the disciplinary authority.NEW SECTION.  Sec. 12.  The uniform regulation of business and professions act, chapter 18.235 RCW, governs unlicensed practice, the issuance and denial of licenses, and the discipline of licensees under this chapter.NEW SECTION.  Sec. 13.  Sections 1 through 8 and 12 of this act are each added to chapter 19.345 RCW.NEW SECTION.  Sec. 14.  This act takes effect December 31, 2018.--- END ---