Senate Commerce Committee Statement to Senate, No. 376 — State of New Jersey (December 6, 2021)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated December 6, 2021, reports favorably and with committee amendments Senate Bill No. 376, the "New Jersey Ticket Consumer Choice Act." The bill allows ticket issuers to sell tickets through a system that restricts resale only if the consumer is offered, at the initial sale, the same ticket in a form not subject to restrictions. Issuers may sell or give away non-transferable tickets for targeted promotions or private events. The bill prohibits any penalty or discrimination against a ticket holder because the ticket was resold or because of the platform used. The statement says the resale provisions have been in effect in New York State for six years.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
376

with
committee amendments

STATE
OF NEW JERSEY

DATED: DECEMBER
6, 2021

The Senate Commerce Committee reports favorably and
with committee amendments Senate Bill No. 376.

As
amended, this bill, the “New Jersey Ticket Consumer Choice Act,” guarantees the
right of New Jersey ticket purchasers to opt-out of ticket restrictions that
limit their ability to use, sell, or give away the tickets they have
purchased.

Specifically,
this bill allows ticket issuers to sell tickets through a ticketing system that
restricts the rights of consumers to resell their tickets only if, at the time
of the initial sale, the consumer is offered the option to purchase the same
ticket in a form not subject to restrictions by the issuer. Issuers would be
permitted, however, to sell or give away tickets in a non-transferable form in
the context of targeted promotions or private events.

The
bill prohibits any penalty or discrimination against a ticket holder solely
because the ticket was resold or because of the specific ticket platform on
which the ticket was resold. The bill provides for the recognition of the
rights of issuers and venue owners and operators to institute policies
governing overall operation of entertainment events and ticket sales.

The
bill exempts from the provisions of the bill issuers of tickets for an
entertainment event held in a venue owned or operated by an entity which is
subject to a hotel and motel occupancy fee pursuant to section 1 of P.L.2003,
c.114 (C.54:32D-1) and located in a city the governing body of which has levied
a retail sales tax pursuant to the provisions of section 1 of P.L.1947, c.71
(C.40:48-8.15).

The
consumer choice provisions of this bill protecting the right of ticket
purchasers to resell their tickets have been in effect in New York State for
six years.

This
bill was pre-filed for introduction in the 2020-2021 session pending technical
review. As reported, the bill includes the changes required by technical
review, which has been performed.

COMMITTEE AMENDMENTS

The committee amended the bill to:

(1) exempt from the provisions of the bill issuers of
tickets for an entertainment event held in a venue owned or operated by an
entity which is subject to a hotel and motel occupancy fee pursuant to section
1 of P.L.2003, c.114 (C.54:32D-1) and located in a city the governing body of
which has levied a retail sales tax pursuant to the provisions of section 1 of
P.L.1947, c.71 (C.40:48-8.15);

(2) remove from the bill a section amending current
law concerning resellers of tickets; and

(3) make a technical correction.

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