Senate File 49 - Introduced SENATE FILE 49 BY REICHMAN A BILL FOR An Act relating to the use or creation of bots to purchase 1 event tickets on the internet, and providing civil 2 penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1516XS (1) 91 dg/jh

S.F. 49 Section 1. NEW SECTION . 554I.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Bot” means an automated software program that performs 4 automatic and repetitive tasks and is designed to impersonate 5 or replicate human activity on the internet. “Bot” does not 6 include autofill or password management features built into 7 an internet browser or provided through separate internet 8 software. 9 2. “Event” means a concert, theatrical performance, sporting 10 event, exhibition, show, or similar scheduled activity that is 11 all of the following: 12 a. Open to the public. 13 b. Held in a public or private venue. 14 c. Requires payment of an admission fee to attend the event. 15 3. “Ticket” means a physical or electronic certificate, 16 voucher, document, token, or other evidence of a right for 17 admission to enter an event at one or more specified dates and 18 times. 19 Sec. 2. NEW SECTION . 554I.2 Internet ticket sales. 20 A person shall not use or create a bot to do any of the 21 following: 22 1. Purchase tickets in excess of the posted limit for any 23 one internet ticket sale. 24 2. Use multiple internet protocol addresses, purchaser 25 accounts, or electronic mail addresses to purchase tickets in 26 excess of the posted limit for any one internet ticket sale. 27 3. Circumvent or disable an electronic queue, waiting 28 period, presale code, or other sales volume limitation system 29 associated with an internet ticket sale. 30 4. Circumvent or disable a security measure, access control 31 system, or other control or measure that is used to facilitate 32 authorized entry to an event. 33 Sec. 3. NEW SECTION . 554I.3 Reporting violations. 34 1. A ticket seller shall report known violations of this 35 -1- LSB 1516XS (1) 91 dg/jh 1/ 3

S.F. 49 chapter to the attorney general within five calendar days of 1 becoming aware of the violation. 2 2. An individual that has knowledge of a violation of this 3 chapter may report the violation to the attorney general. 4 3. The attorney general shall establish an electronic 5 reporting system for the submission of reports pursuant to this 6 section. 7 Sec. 4. NEW SECTION . 554I.4 Enforcement —— penalties. 8 1. If the attorney general has reasonable belief that a 9 person is in violation of this chapter, the attorney general 10 has the sole authority to bring civil action to provide for all 11 of the following: 12 a. Enjoinment of further violations by the person. 13 b. Enforcement of compliance with this chapter. 14 c. Assessment of civil penalties in an amount not more than 15 ten thousand dollars for each violation of this chapter. 16 d. Other remedies permitted under law. 17 2. If the attorney general has reasonable belief that a 18 person is in violation of an injunction issued under this 19 section, the attorney general has the sole authority to bring 20 civil action to provide for civil penalties in an amount not 21 more than one hundred thousand dollars. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to the use or creation of bots to purchase 26 event tickets during internet sales. “Bot”, “event”, and 27 “ticket” are defined by the bill. 28 The bill prohibits a person from creating or using a bot 29 to purchase tickets, or from using multiple internet protocol 30 addresses, purchaser accounts, or electronic mail addresses 31 to purchase tickets in excess of the posted limit for any one 32 internet ticket sale. The bill also prohibits a person from 33 creating or using a bot to circumvent or disable an electronic 34 queue, waiting period, presale code, or other sales volume 35 -2- LSB 1516XS (1) 91 dg/jh 2/ 3

S.F. 49 limitation system that is associated with an internet ticket 1 sale, or from circumventing or disabling an access control 2 system or other control or measure that is used to facilitate 3 authorized entry to an event. 4 The bill requires a ticket seller to report known violations 5 of the bill’s provisions within five calendar days of becoming 6 aware of the violation. Other individuals that have knowledge 7 of a violation of the bill’s provisions may report the 8 violation to the attorney general. The bill requires the 9 attorney general to establish an electronic reporting system 10 for the submission of reports. 11 If the attorney general has reasonable belief that a person 12 is in violation of the bill, the attorney general may bring 13 civil action to enjoin further violations by the person, 14 enforce compliance with the bill, assess a civil penalty 15 in an amount not more than $10,000 for each violation, and 16 other remedies permitted by law. If the attorney general 17 has reasonable belief that a person is in violation of an 18 injunction issued under the bill, the attorney general may 19 bring civil action to provide for civil penalties in an amount 20 not more than $100,000. 21 -3- LSB 1516XS (1) 91 dg/jh 3/ 3