Arts and Cultural Affairs - Theatrical Syndication Financing - Regulation of Theatrical Syndication Financing - Prohibited activities of ticket distributors

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§ 23.23. Prohibited activities of ticket distributors. 1. The term
"ticket distributor" shall mean all owners, operators or operating
lessees whether an individual, firm, company, partnership, corporation,
trust or association who control the operation of a place of
entertainment, as that term is defined in this article, including the
allocation or distribution of tickets to any event, as that term is
defined in this article, and all controlling partners, and controlling
stockholders and controlling officers of the aforesaid; and all agents,
representatives, employees and licensees of any of the aforementioned,
including without limitation box office treasurers and assistant
treasurers of places of entertainment, who for any period of time have
control of the allocation or distribution by designation or authority of
the aforementioned, of tickets in connection with the showing of events,
but shall not include subordinate personnel performing non-discretionary
or ministerial functions in connection with the allocation or
distribution of tickets for events.

2. A "theatrical production" as used in this section shall mean those
live-staged dramatic productions, dramatic-musical productions and
concerts as defined in section 23.03 of this chapter which hereafter are
shown to the public in a place of entertainment.

3. A "sporting event" as used in this section shall mean those
contests, games, or other events involving athletic or physical skills
which are shown to the public in a place of entertainment and whose
participants are paid for the exhibition of their athletic or physical
skills, but not exhibitions under the jurisdiction of the state racing
or state harness racing commissions.

4. It shall be illegal and prohibited for any owner, lessee or
operator or manager or treasurer or assistant treasurer or any other
ticket distributor of a place of entertainment, as defined in this
article, to sell tickets to any event to be held in this state directly
or indirectly, through agents, employees or otherwise, unless and until
there is filed with the department of law of the state of New York by
the ticket distributor, directly or indirectly, controlling the
distribution of tickets a registration known as a "ticket distributor
registration" on which shall be contained the names, addresses and
connection with the distribution of tickets of all ticket distributors,
as defined herein, on forms issued by the attorney general of the state
of New York, as applicable to such registration and amendments thereto.
It shall be illegal for any ticket distributor to sell tickets, or
control the sale thereof, unless named on such registration. The
attorney general may issue an order cancelling or suspending the name of
a particular individual or individuals from such registration or issue
an order barring such person from selling any tickets to any event to be
held in this state as aforesaid whether or not the person's name appears
on any particular registration after a hearing, conducted by him or a
designated officer, when, based upon substantial evidence on the entire
record, it is determined that: such ticket distributor or any person who
resells tickets to any event to be held in this state subsequent to
October first, nineteen hundred sixty-five, directly or indirectly, has
willfully aided, abetted or participated in exacting, demanding,
accepting or receiving, directly or indirectly, any premium or price in
excess of the regular or established price or charge, plus lawful taxes,
as printed upon the face of each ticket or other evidence of the right
of entry thereto, for tickets to any event to be held in this state from
members of the public or ticket brokers or agents, whether designated as
price, gratuity or otherwise; or whenever such ticket distributor has
been convicted of any crime relating to the sale of tickets to any
event, or violations of this article; or whenever such ticket
distributor shall have engaged in any practice in connection with the
sale of tickets to any event which operates as a fraud upon the public
or amounts to financial misconduct, or the exacting of exorbitant rates
or other similar abuses; or whenever any ticket distributor has
willfully violated any provision of this article or any rule or
regulation issued thereunder. The attorney general may also issue rules
and regulations relating to the maintenance of box office records of
places of entertainment and with respect to the filing and content of
ticket distributor registrations, including exemptions relating to
educational institutions which the attorney general may determine to be
in the public interest.

5. All ticket distributors as defined in this section shall keep or
cause to be kept books, records, memoranda or correspondence containing
the following information in connection with the sale or distribution of
tickets:

(a) The number of tickets sold, allocated or distributed to ticket
brokers licensed pursuant to article twenty-five of this chapter or
other known brokers, specifying the price and location of each ticket
sold, allocated or distributed to each broker and the date and time of
performance of each such ticket.

(b) The number of tickets among those allocated and distributed to
brokers by ticket distributors, returned by each broker to ticket
distributors specifying the price of each such returned ticket and the
date and time of performance of each such ticket.

(c) The number of tickets sold or distributed as house seats with
recipients thereof; or to duly licensed theatre party agents
representing charitable or eleemosynary organizations, specifying the
price and location of each ticket sold, allocated or distributed and the
date and time of performance of each such ticket.

(d) All mail order correspondence, including disposition thereof.

All records required to be kept pursuant to this section shall be
preserved for a period of not less than one year subsequent to the date
of performance to which such record relates.

6. Any person aggrieved by an order of the attorney general hereunder
may obtain a review of such order in the appellate division of the
supreme court pursuant to article seventy-eight of the civil practice
law and rules by filing in such court within ten days after the entry of
such order, a notice of petition, petition and suitable affidavits as
provided in subdivision (c) of section seven thousand eight hundred four
of the civil practice law and rules, praying that the order of the
attorney general be modified or set aside in whole or in part upon any
of the grounds set forth in section seven thousand eight hundred three
of the civil practice law and rules.

7. If any provision of this section is in conflict with any provision
of any law of the state of New York or any municipality or subdivision
thereof or any rule or regulation thereof in force on October first,
nineteen hundred sixty-five, the provisions of this section shall
prevail.