A BILL TO BE ENTITLED
AN ACT to rename the north carolina state boxing commission, to regulate persons seeking to engage in business as ticket brokers, to apply the privilege tax on amusements to services provided by ticket brokers, to authorize a study on the effectiveness of regulating ticket brokers, and to make it unlawful to use altered or counterfeit admission tickets.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 68 of Chapter 143 of the General Statutes is amended by designating G.S. 143‑650 through G.S. 143‑658 as:
"Part 1. Boxing.".
SECTION 2.  The title of Article 68 of Chapter 143 of the General Statutes reads as rewritten:
"Article 68.
North Carolina State Boxing and Entertainment Commission."
SECTION 3.  G.S. 143‑651(5) reads as rewritten:
"The following definitions apply in this Article:
…
(5)	Commission. – The North Carolina State Boxing and Entertainment Commission.
…."
SECTION 4.  G.S. 143‑651(23b) reads as rewritten:
"The following definitions apply in this Part:
…
(23b)	Sanctioned amateur match. – Any boxing or kickboxing match regulated by an amateur sports organization that has been recognized and approved by the North Carolina State Boxing and Entertainment Commission.
…."
SECTION 5.  G.S. 143‑652(a) reads as rewritten:
"§ 143‑652.  State Boxing and Entertainment Commission.
(a)	Creation. – The North Carolina State Boxing and Entertainment Commission is created within the Department of Crime Control and Public Safety to regulate  live boxing and kickboxing  matches in this State as provided in this Part, whether professional, amateur, sanctioned amateur, or toughman events, in which admission is charged for viewing, or the contestants compete for a purse or prize of value greater than  twenty-five dollars ($25.00); and to regulate persons who are ticket brokers as provided in Part 2 of this Article. The Commission shall consist of six voting members and two nonvoting advisory members. All the members shall be residents of North Carolina and shall meet requirements for membership under the Professional Boxing Safety Act of 1996. The members shall be appointed as follows:
(1)	One voting member shall be appointed by the Governor for an initial term of two years.
(2)	One voting member shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate for an initial term of one year, in accordance with G.S. 120‑121.
(3)	One voting member shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives for an initial term of one year.
(4)	Two voting members shall be appointed by the Secretary of Crime Control and Public Safety. One shall serve for an initial term of three years, and the other shall serve for an initial term of two years.
(4a)	One member shall be appointed by the Tribal Council of the Eastern Band of the Cherokee for an initial term of three years.
(5)	One nonvoting advisory member shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives for an initial term of one year, in accordance with G.S. 120‑121, from nominations made by the North Carolina Medical Society, which shall nominate two licensed physicians for the position.
(6)	One nonvoting advisory member shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate for an initial term of one year, in accordance with G.S. 120‑121, from nominations made by the North Carolina Medical Society, which shall nominate two licensed physicians for the position.
The member appointed pursuant to subdivision (5) of subsection (a) of this section may serve on the Commission only if an agreement exists and remains in effect between the Tribal Council of the Eastern Band of the Cherokee and the Commission authorizing the Commission to regulate professional boxing matches within the Cherokee Indian Reservation as provided by the Professional Boxing Safety Act of 1996.
The two nonvoting advisory members appointed pursuant to subdivisions (6) and (7) of subsection (a) of this section shall advise the Commission on matters concerning the health and physical condition of boxers and health issues relating to the conduct of exhibitions and boxing matches. They may prepare and submit to the Commission for its consideration and approval any rules that in their judgment will safeguard the physical welfare of all participants engaged in boxing.
Terms for all members of the Commission except for the initial appointments shall be for three years.
The Secretary of Crime Control and Public Safety shall designate which member of the Commission is to serve as chair. A member of the Commission may be removed from office by the Secretary of Crime Control and Public Safety. Each member before entering upon the duties of a member shall take and subscribe an oath to perform the duties of the office faithfully, impartially, and justly to the best of the member's ability. A record of these oaths shall be filed in the Department of the Secretary of Crime Control and Public Safety."
SECTION 6.  G.S. 143‑655 reads as rewritten:
"§ 143‑655.  Fees; State Boxing and Entertainment Commission Revenue Account.
(a)	License Fees. – The Commission shall collect the following license fees: 

	Announcer	$ 50.00
	Contestant	$ 25.00
	Judge	$ 50.00
	Manager	$100.00
	Matchmaker	$200.00
	Promoter	$300.00
	Referee	$ 50.00
	Timekeeper	$ 50.00
	Second	$ 25.00.
The annual license renewal fees shall not exceed the initial license fees.
(b)	Permit Fees. – The Commission may establish a fee schedule for permits issued under this Article. The fees may vary depending on the seating capacity of the facility to be used to present a match. The fee may not exceed the following amounts: 

	Seating Capacity	Fee Amount 
	Less than 2,000	$100.00 
	2,000 – 5,000	$200.00 
	Over 5,000	$300.00. 
(c)	State Boxing and Entertainment Commission Revenue Account. – There is created the State Boxing and Entertainment Commission Revenue Account within the Department of Crime Control and Public Safety. Moneys collected pursuant to the provisions of this Article shall be credited to the Account and applied to the administration of the Article."
SECTION 7.  Article 68 of Chapter 143 of the General Statutes is amended by adding the following new Part to read:
"Part 2. Ticket Brokers.
"§ 143-659.1.  Regulation of ticket brokers by Commission.
The North Carolina State Boxing and Entertainment Commission shall regulate those persons who are ticket brokers as provided in this Part.
"§ 143-659.2.  Definitions.
The following definitions apply in this Part:
(1)	Commission. – The North Carolina State Boxing and Entertainment Commission.
(2)	Promoter. – A person, firm, or corporation assuming the financial responsibilities of an athletic contest or entertainment event, including contracting with the principals, renting the site, and collecting the gate receipts.
(3)	Ticket. – A certificate or token showing that a fare or admission fee has been paid and that gives the holder a revocable license to enter an event.
(4)	Ticket broker. – A person, firm, or corporation engaging in the business of reselling one or more tickets to live athletic contests, concerts, theatre performances, or other entertainments, amusements, or exhibitions where the general public is admitted and meets the requirements of registration and bonding pursuant to this Part. For purposes of this definition, a firm or corporation engaging in business as a ticket broker shall meet the requirements of registration and bonding and each individual engaging in business as a ticket broker and employed by a firm or corporation registered as a ticket broker shall meet the requirements of registration and bonding pursuant to this Part.
(5)	Ticket sales agent. – A person, firm, or corporation engaging in the business of selling one or more tickets to live athletic contests, concerts, theatre performances, or other entertainments, amusements, or exhibitions where the general public is admitted.
"§ 143-659.3.  Powers and duties of Commission.
(a)	For purposes of this Part, the Commission has the following powers and duties:
(1)	To adopt rules necessary to carry out the provisions of this Part.
(2)	To administer and enforce the provisions of this Part.
(3)	To establish requirements to register under this Part.
(4)	To receive and investigate complaints from members of the public.
(5)	To conduct investigations to determine whether violations of this Part or grounds for disciplining registrants exist.
(b)	The Commission may inspect the premises and records of ticket brokers at any reasonable hour to determine compliance with the provisions of this Part.
(c)	The Commission shall keep a record of its proceedings relating to the issuance, renewal, denial, restriction, suspension, and revocation of registrations. This record shall also contain each registrant's name, business and home addresses, registration number, and the date the registration was issued.
(d)	All ticket brokers shall perform an audit each year and submit a report of the audit to the Commission within 30 days after the audit is completed. The Commission shall adopt rules establishing guidelines for these audits.
"§ 143-659.4.  Authority to resell tickets; exemptions; restrictions.
(a)	Except as otherwise provided in this section, it shall be unlawful for any person, firm, or corporation to resell or offer for resale any ticket to any athletic contest, concert, theatre performance, amusement, exhibition, or other entertainment event where the general public is admitted for a price in excess of the face value of the ticket unless that person, firm, or corporation is registered as a ticket broker pursuant to the provisions of this Part.
(b)	It shall not be unlawful for any person, firm, or corporation to resell, offer for resale, purchase, or offer to purchase a ticket for a price not to exceed the face value of the ticket, plus tax and a service fee of three dollars ($3.00).
(c)	Charitable or nonprofit organizations and their employees or agents and volunteers shall not be subject to the provisions of this Part when offering for sale any tickets of admission in a raffle, auction, or other fund-raising activity for the benefit of the organization's purposes.
(d)	For any single athletic contest or entertainment event that occurs no more than once annually or any series of athletic contests that occur no more than once annually and occur within a time period not exceeding 10 days, a promoter of a contest or event may contractually restrict the resale of a ticket to that contest or event by giving notice of the restriction on the back of the ticket. An owner, operator, lessee, or tenant of the property where the contest or event is to be held or is being held may contractually restrict the resale of the right of occupancy of any specific suite, seat, or seating area by giving notice in writing of the restriction.
"§ 143-659.5.  Requirements for registration; issuance of registration; renewal; moneys credited to State Boxing and Entertainment Commission Revenue Account.
(a)	Before placing any advertisement or making any other representations to prospective buyers in this State, a person, firm, or corporation seeking to engage in business as a ticket broker shall satisfy the following:
(1)	Maintain a permanent office or place of business in this State, excluding a post office box, for the purpose of engaging in the business of a ticket broker.
(2)	File for registration as a ticket broker with the Commission on a form provided by the Commission. The filing shall contain the following:
a.	The name and place of business of the ticket broker.
b.	A statement describing the activities of the ticket broker, including that the ticket broker:
1.	Engages in the resale of admission tickets on a regular and continuous basis from one or more permanent locations within the State.
2.	Maintains as the principal place of business activity at those locations the resale of tickets.
3.	Maintains at those locations a listing of the names and addresses of all persons employed by the ticket broker. In the case of a firm or corporation filing for registration as a ticket broker, the firm or corporation shall maintain at its location a listing of the names and addresses of all persons employed by the firm or corporation as registered ticket brokers.
(3)	Obtain a bond issued by a surety company authorized to do business in this State in the amount of twenty-five thousand dollars ($25,000) and file a copy of the bond with the Commission. The bond shall be executed in favor of the State for the benefit of any person damaged by the ticket broker's breach of contract or any obligation arising from the breach or by any violation of this Part. Any person claiming against the bond may maintain an action against the ticket broker and the surety. The aggregate liability of the surety shall be for actual damages and shall not exceed the amount of the bond.
(4)	Pay a registration fee established by the Commission not to exceed two thousand dollars ($2,000).
(b)	Upon finding that a ticket broker has complied with the requirements of subsection (a) of this section, the Commission shall issue to the ticket broker a certificate of registration. The ticket broker shall display the certificate of registration prominently in the ticket broker's place of business.
(c)	Ticket brokers shall renew their registration annually pursuant to rules adopted by the Commission and pay a renewal fee established by the Commission not to exceed two thousand dollars ($2,000).
(d)	Moneys collected pursuant to the provisions of this Part shall be credited to the State Boxing and Entertainment Commission Revenue Account pursuant to G.S. 143-655(c), and applied to the administration of this Part.
"§ 143-659.6.  Disclosure; refunds.
(a)	A ticket broker shall:
(1)	Post at the ticket broker's established place of business the terms of the purchaser's right to cancel the purchase of a ticket from a ticket broker.
(2)	Disclose to the purchaser, on the ticket or receipt, the refund policy of the ticket broker if an athletic contest or entertainment event is canceled or not rescheduled.
(3)	Disclose to the purchaser, on the ticket or receipt, the difference between the face value of the ticket and the amount that the ticket broker is charging for the ticket.
(4)	Sell tickets only at the ticket broker's permanent office or place of business. However, delivery of one or more tickets after the transaction is completed to a place other than the ticket broker's office or place of business shall not violate this subdivision.
(b)	Unless otherwise provided in a written agreement between a ticket broker and a purchaser, a ticket broker shall refund any payment received for the purchase of a ticket under this Part if: 
(1)	The purchaser returns the ticket and requests a cancellation of the sale within 36 hours from the time of purchase of the ticket; and 
(2)	The return is made more than 72 hours preceding the athletic contest or entertainment event.
(c)	A ticket broker shall refund, within 15 days from the date of purchase, any payment received for the purchase of a ticket under this Part if the athletic contest or entertainment event is canceled or not rescheduled.
(d)	If a ticket broker guarantees, in writing, the delivery of a ticket or tickets to an athletic contest or entertainment event to a purchaser and fails to complete the delivery, the ticket broker shall, within 15 days from the date of purchase, provide a full refund of any amount paid by the purchaser and pay the purchaser a refund fee of three times the amount paid by the purchaser for each ticket.
"§ 143-659.7.  Prohibited conduct.
(a)	A ticket broker or an employee or agent of a ticket broker is prohibited from engaging in any of the following:
(1)	Employing any agent or employee for the purpose of making future purchases of tickets from the owner, operator, lessee, or tenant of the property where an athletic contest or entertainment event is to be held.
(2)	Acquiring or reselling in excess of one percent (1%) of the total tickets allocated for any contest or event. For purposes of this subdivision, a firm or corporation engaging in business as a ticket broker is limited to one percent (1%) of the total tickets allocated for any contest or event regardless of the number of ticket brokers employed by the firm or corporation. No more than five percent (5%) of the total tickets allocated for any contest or event shall be purchased by ticket brokers.
(3)	Reselling or offering for resale any ticket within 1,500 feet from the venue where an event or contest is to be held or is being held.
(4)	Paying any consideration, directly or indirectly, to any promoter, operator, or ticket sales agent to acquire or assist in the acquisition of a ticket, except for the actual face value of the ticket and any service fee authorized by G.S. 14-344(a).
(b)	A promoter, operator, or ticket sales agent shall not receive any consideration, directly or indirectly, from any person, firm, or corporation to acquire or assist in the acquisition of a ticket, except for the actual face value of the ticket and any service fee authorized by G.S. 14-344(a).
"§ 143-659.8.  Disqualification for felony conviction.
No person shall practice or engage in business as a ticket broker, or be employed as general manager for a person practicing or engaged in business as a ticket broker, who has been convicted of a felony and has not been pardoned or had the person's civil rights restored.
"§ 143-659.9.  Violations.
(a)	Civil Penalties. – The Commission may issue an order against a registrant or any other person who willfully violates any provision of this Part or rules adopted by the Commission. Orders issued by the Commission may include the following:
(1)	An order requiring the registrant or other person to cease and desist from violating any provision of this Part.
(2)	An order suspending or revoking the ticket broker's registration.
(3)	An order imposing a civil penalty of up to twenty-five thousand dollars ($25,000) for each violation of this Part.
No order under this subsection may be entered without giving the registrant or other person 15 days' prior notice and an opportunity for a contested case hearing conducted pursuant to Article 3 of Chapter 150B of the General Statutes.
Proceeds of civil penalties imposed pursuant to this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.
(b)	Criminal Penalties. – A willful violation of any provision of this Part shall constitute a Class 2 misdemeanor. The Commission may refer any available evidence concerning violations of this Part to the proper district attorney who may, with or without reference, institute the appropriate criminal proceedings.
(c)	Injunction. – Whenever it appears to the Commission that a person has engaged or is about to engage in an act or practice constituting a violation of any provision of this Part or any rule adopted by the Commission, the Commission may bring an action in any court of competent jurisdiction to enjoin those acts or practices and to enforce compliance with this Part or any rule or order issued pursuant to this Part."
SECTION 8.  Chapter 14 of the General Statutes is amended by adding a new section to read:
"§ 14-16.1.  Altering, forging, restoring, or counterfeiting certain tickets.
(a)	It shall be unlawful for a person to:
(1)	Alter, restore, or otherwise prepare in any manner any ticket, token, or paper designed to entitle the holder to admission to any sports, amusement, concert, or other facility offering services to the general public, with the intent to use or cause it to be used after it has already been used; 
(2)	Counterfeit, forge, or alter any ticket, token, or paper designed to entitle the holder to admission to any sports, amusement, concert, or other facility offering services to the general public, with the intent to sell, utter, put off or pass the same, or cause or procure the same to be sold, uttered, or passed with the intent to defraud any person; 
(3)	Buy, sell, offer for sale, or possess any counterfeit, forged, or altered ticket, token, or paper designed to entitle the holder to admission to any sports, amusement, concert, or other facility offering services to the general public, with the intent to defraud any person, knowing the same to be counterfeit, forged, or altered.
(b)	As used in this section, the term "counterfeit" means to manufacture, copy, reproduce, or forge a ticket, token, or paper that purports to be genuine, but is not, because it has been falsely copied, reproduced, forged, manufactured, embossed, encoded, duplicated, or altered.
(c)	Any person who violates this section shall be guilty of a Class 2 misdemeanor."
SECTION 9.  G.S. 14‑344 reads as rewritten:
"§ 14‑344.  Sale of admission tickets in excess of printed price.
(a)	Any person, firm, or corporation shall be allowed to add a reasonable service fee to the face value of the tickets sold, and the person, firm, or corporation which sells or resells such tickets shall not be permitted to recoup funds greater than the combined face value of the ticket, tax, and the authorized service fee. This service fee may not exceed three dollars ($3.00) for each ticket except that a promoter or operator of the property where the event is to be held and a ticket sales agency may agree in writing on a reasonable service fee greater than three dollars ($3.00) for the first sale of tickets by the ticket sales agent. This service fee may be a pre‑established amount per ticket or a percentage of each ticket. The existence of the service fee shall be made known to the public by printing or writing the amount of the fee on the tickets which are printed for the event. Any person, firm or corporation which sells or offers to sell a ticket for a price greater than the price permitted by this section shall be guilty of a Class 2 misdemeanor.
(b)	This section shall not apply to the resale of tickets pursuant to Part 2 of Article 68 of Chapter 143 of the General Statutes."
SECTION 10.  G.S. 105‑37.1 reads as rewritten:
"§ 105‑37.1.  Dances, athletic events, shows, exhibitions, and other entertainments.
(a)	Scope. – A privilege tax is imposed on the gross receipts of a person who is engaged in any of the following:
(1)	Giving, offering, or managing a dance or an athletic contest for which an admission fee in excess of fifty cents (50¢) is charged.
(2)	Giving, offering, or managing a form of amusement or entertainment that is not taxed by another provision of this Article and for which an admission fee is charged.
(3)	Exhibiting a performance, show, or exhibition, such as a circus or dog show, that is not taxed by another provision of this Article.
(a1)	Ticket Brokers. – A privilege tax is imposed on the brokerage fee charged by a ticket broker registered under Part 2 of Article 68 of Chapter 143 of the General Statutes. For the purposes of this section, 'brokerage fee' means the difference between the amount charged by the ticket broker for resale of the ticket and the face value of the ticket.
(b)	Rate and Payment. – The rate of the privilege tax is three percent (3%) of the gross receipts from the activities described in subsection (a) of this section and three percent (3%) of the brokerage fees described in subsection (a1) of this section. The tax is due when a return is due. A return is due by the 10th day after the end of each month and covers the receipts or fees received during the previous month.
(c)	Advance Report. – A person who owns or controls a performance, show, or exhibition subject to the tax imposed by this section and who plans to bring the performance to this State from outside the State must file a statement with the Secretary that lists the dates, times, and places of the performance, show, or exhibition. The statement must be filed no less than five days before the first performance, show, or exhibition in this State.
(d)	Local Taxes. – Cities may levy a license tax on a person taxed under subdivision (a)(1) or (a)(2) of this section; however, the tax may not exceed twenty‑five dollars ($25.00). Cities may levy a license tax on a person taxed under subdivision (a)(3) of this section; however, the tax may not exceed twenty‑five dollars ($25.00) for each day or part of a day the performance, show, or exhibition is given at each location.
Counties may not levy a license tax on a person taxed under subdivision (a)(1) or (a)(2) of this section. Counties may levy a license tax on a person taxed under subdivision (a)(3) to the same extent as a city.
Neither a county nor a city may levy a license tax on a person taxed under subsection (a1) of this section."
SECTION 11.  The North Carolina State Boxing and Entertainment Commission, as renamed and enacted in Section 2 of this act, shall conduct a study to determine the effectiveness of its regulation of ticket brokers and address any issues that relate to the registration of ticket brokers, enforcement of the provisions of Part 2 of Article 68 of Chapter 143 of the General Statutes, enacted in Section 7 of this act, and any other issues the Commission considers necessary. The Commission shall make an interim report of its findings and recommendations to the 2004 Regular Session of the 2003 General Assembly and a final report to the 2005 General Assembly.
SECTION 12.  This act becomes effective December 1, 2003, and applies to offenses committed and tickets sold on or after that date.