SENATE, No. 1679

STATE OF NEW JERSEY

INTRODUCED NOVEMBER 18, 1996

By Senators SINGER and EWING

An Act concerning the resale of tickets for admission to places of entertainment, amending and supplementing P.L.1983, c.135 and repealing section 8 thereof and P.L.1995, c.169.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1.    (New section) Any person licensed pursuant to P.L.1983, c.135 (C.56:8-26 et seq.) shall clearly and conspicuously disclose his license number in his advertisements. For purposes of this section, "advertisement" means any attempt by a person licensed pursuant to P.L.1983, c.135 (C.56:8-26 et seq.) directly or indirectly to induce the purchase of tickets, appearing in any newspaper, magazine, periodical, circular, sign or other written matter placed before the public, or in any radio or television broadcast or any other media, electronic or otherwise.

    2.    Section 9 of P.L.1983, c.135 (C.56:8-34) is amended to read as follows:

    9.    No person shall sell, offer to sell, resell, offer to resell or purchase with the intent to resell any ticket, in or on any street, highway, driveway, sidewalk, parking area, or common area owned by a place of entertainment, or any other area adjacent to or in the vicinity of any place of entertainment as determined by the director; except that a person may resell, in an area which may be designated by the place of entertainment, any ticket or tickets originally purchased for his own personal or family use [at no greater than the lawful price permitted under this act].

(cf: P.L.1983, c.220, s.4)

    3.    Section 8 of P.L.1983, c.135 (C.56:8-33) and P.L.1995, c.169 are repealed.

    4.    This act shall take effect immediately.

STATEMENT

    This bill repeals section 8 of P.L.1983, c.135 (C.56:8-33), and, thereby removes current statutory provisions that set forth maximum premiums that are permitted to be charged by ticket agents when selling or reselling tickets of admission to places of entertainment. This bill also repeals section 1 of P.L.1995, c.169, which established an 18-month period in which the resale price of each ticket subject to the provisions of P.L.1983, c.135 (C.56:8-33) is not limited to the price charged therefor and printed on the face of the ticket.

    The bill provides that any person who is licensed pursuant to P.L.1983, c.135 (C.56:8-26 et seq.) to engage in the business of reselling tickets for admission to places of entertainment shall clearly and conspicuously disclose his license number in his advertisements to resell tickets.

    In addition to establishing a permanent "free market" for the resale of entertainment tickets, the bill is also a response to the need to reduce government regulation of entertainment ticket sales and to make these tickets available to consumers in the secondary market at competitive prices.

    Several major improvements have come about in the ticket resale industry that warrant making permanent the elimination of price limitations on ticket brokers selling tickets for admission to places of entertainment. Since the enactment of the 18-month moratorium established pursuant to P.L.1995, c.169, prices on the secondary market have dropped significantly for many concerts and sporting events due to competition. For example, tickets for concerts in the south Jersey area that were sold prior to the moratorium at $95-$105 sold for $35-$45 for the same performer in 1996; New York Giant tickets for the 1996-1997 season are selling for $20-$25 less than for the 1995-1996 season.

    Prior to the State embarking on its eighteen month experiment, only four ticket brokers were licensed to do business. Since then, there has been a dramatic increase in the number of State licensed brokers conducting business in New Jersey. Nearly sixty ticket brokers are licensed, with several more licensures pending. Some of these are new businesses that have opened in New Jersey, thus creating new jobs and additional revenues. In addition, ticket brokers who previously operated businesses in New Jersey, but conducted business out-of-State, are now bringing new revenues into New Jersey. Some of these brokers have expanded their operations, thereby creating additional job opportunities.

    New Jersey tourism has benefited by the presence of licensed ticket brokers operating in a "free market." Ticket brokers are now marketing New Jersey events and are helpful in increasing attendance at New Jersey venues.

Eliminates current statutory requirement limiting prices charged by ticket brokers.