GOOD AND WELCOME I'D LIKE TO
CALL TODAY'S HEARING OF THE
ASSEMBLY ARTS, ENTERTAINMENT,
SPORTS AND TOURISM COMMITTEE TO
ORDER BEFORE WE GET STARTED.
THERE ARE A FEW HOUSEKEEPING
ITEMS WE'D LIKE TO COVER. FOR
TODAY'S HEARING. WE WILL KEEP WE
WILL BE ONLY ACCEPTING IN PERSON
TESTIMONY AND WITNESS AND
SUPPORT AND OPPOSITION BILLS
BEING PRESENTED WILL EACH HAVE A
MAXIMUM OF THREE PRIMARY
WITNESSES AND SUPPORT AND THREE
POINT PRIMARY WITNESSES AND
OPPOSITION WITH THE LIMIT OF TWO
MINUTES. PER WITNESS AFTER WE
HAVE HEARD FROM THE PRIMARY
WITNESSES, MEMBERS OF THE PUBLIC
THAT ARE HERE IN THE ROOM WILL
BE GIVEN AN OPPORTUNITY TO STATE
THEIR NAME. THE ORGANIZATION
THEY REPRESENT, IF ANY POSITION
ON THE BILL. I WANT TO NOTE THAT
WE WILL ALSO BE ACCEPTING
WRITTEN TESTIMONY THROUGH THE
POSITION LETTER PORTAL ON THE
COMMITTEE'S WEBSITE. I THINK
WE'RE GONNA GO AHEAD AND
ESTABLISH A QUORUM HERE. SILVER
HERE. WALLACE. MIKE FONG.
FRIEDMAN. HEART. BLACKIE.
VALENTIA. ALRIGHT WITH THAT
WE'RE GOING TO TAKE OUR FIRST
BILL. ASSEMBLY MEMBER FREED
FRIEDMAN A B EIGHT TICKET
SELLERS. THANK YOU, MADAM CHAIR
MEMBERS. MY JOINT AUTHOR MR
IRWIN IS. RIGHT SO YOUR YOUR
WITNESSES CAN COME SIT AT THE
TABLE IF THEY'D LIKE. THE
MICROPHONE. NOT ON NOW. IT'S ON
UH, FIRST OF ALL, I WANT TO
THANK YOU AND YOUR COMMITTEE FOR
YOUR WORK ON THE BILL. WE ARE
ACCEPTING THE SUGGESTED
COMMITTEE AMENDMENTS ON PAGE
EIGHT, SECTION SEVEN OF THE
ANALYSIS, ELIMINATING SECTION 22
505 OF THE BILL. I UNDERSTAND
THIS AMENDMENT WILL BE ADOPTED
IN THE ASSEMBLY COMMITTEE ON
PRIVACY AND CONSUMER PROTECTION
. I SO THIS IS A BILL THAT HAS
COME TO US THROUGH MANY
COMPLAINTS THAT WE'VE HAD OVER
THE YEARS FROM CONSTITUENTS IN
MY DISTRICT. AND ACROSS
CALIFORNIA, AND THIS IS
SOMETHING THAT WE'VE HEARD
PEOPLE TALK ABOUT FOR A NUMBER
OF YEARS AND LET ME BE CLEAR I
REPRESENT IN LOS ANGELES A
NUMBER OF FILM STUDIOS NUMBER OF
LIVE PERFORMANCE VENUES. MOST OF
MY CONSTITUENTS ARE MANY OF THEM
WORK IN THE ENTERTAINMENT
INDUSTRY OR RELATED FIELDS, SO
THE INDUSTRY IS VERY, VERY
IMPORTANT TO ME. BUT CONSUMER
PROTECTION IS ALSO IMPORTANT TO
ME, AND I BELIEVE THAT WE CAN
HAVE BOTH. CONSUMER PROTECTION
AND A ROBUST ENTERTAINMENT
INDUSTRY. NOW IN THE PAST, IF
YOU WANTED TO BUY A TICKET TO AN
EVENT, YOU GO TO A BOX OFFICE AT
THE VENUE OR THE BALLPARK. THE
BOX OFFICE WOULD TELL YOU WHERE
YOUR SEATS BURGER WITH THE SEATS
WERE AVAILABLE AND THE PRICE OF
THE TICKETS. YOU GET A PAPER
TICKET THAT THEN YOU WOULD THEN
USE TO ENTER THE VENUE OR YOU
COULD GIVE THEM AWAY OR SELL
THEM. AS YOU SEE FIT. IT WAS
THOUGHT THAT THE INTERNET WOULD
MAKE TICKETS, SELLING EVEN
EASIER AND PROMOTE GREATER
TRANSPARENCY FOR CONSUMERS.
HOWEVER IT APPEARS THAT THE
OPPOSITE HAS BEEN HAPPENING
THESE DAYS. YOU PRETTY NORMAL
THAT YOU WON'T EVEN FIND OUT
WHAT THE FINAL PRICE OR THE COST
OF THE TICKET IS, UNTIL YOU'VE
BEEN ONLINE FOR HOURS AND
FINALLY GOTTEN YOUR TICKET AND
PUT IT THROUGH MANY DIFFERENT
LAYERS AND WHERE YOU WATCH THE
TICKETS, PRICE INCREASE AS YOU
GO FROM LAYER THROUGH LAYER ON
THE INTERNET, SPECIFICALLY
DESIGNED TO KEEP YOU CLICKING
AND TO THEN HAVE YOU PAY A
HIGHER PRICE THAN YOU MIGHT HAVE
INTENDED IN ORIGINALLY INTENDED.
THAT TICKET OFTEN PURCHASED
SEVEN SEVERAL MONTHS IN ADVANCE
MAY COME WITH A VARIETY OF
RESTRICTIONS ON TRANSFER. IF YOU
COULD NO LONGER ATTEND THE EVENT
, IF YOU'RE SICK, YOUR DOG IS
SICK. YOUR PLUMBING BACKED UP.
WHATEVER HAPPENS, YOU MIGHT HAVE
NO WAY OF GIVING THAT TICKET
AWAY TO HER FRIEND OR SELLING IT
TO YOUR NEIGHBOR WHO MIGHT WANT
TO ATTEND. AND YOU CERTAINLY
CAN'T RETURN THAT TICKET FOR A
REFUND. AVERAGE TICKET PRICES
HAVE MORE THAN TRIPLED SINCE THE
MID NINETIES, AND THE FEES THAT
ARE TACKED ON TWO EACH TICKET
CAN BE AS HIGH AS 78% OF THE
TICKET PRICE. WHILE CONSUMERS
CERTAINLY FEEL THE PINCH TICKET
RETAILERS ARE DOING JUST FINE.
LAST MONTH, TICKETMASTER LIVE
NATION ANNOUNCED RECORD PROFITS
REPORTING A 2022 OPERATING
INCOME OF UP 125% FROM PRE
PANDEMIC LEVELS TO 72 $732
MILLION AND REVENUE UP 44% TO
$16.7 BILLION. THE LAWS
GOVERNING TICKET RETAILERS WERE
PASSED BEFORE THE INTERNET. THE
INTERNET EVEN EXISTED A FACT
THAT'S BECOMING SITTING LEE
CLEAR AS MEGA TICKET SELLERS AND
RETAILERS HAVE USED THOSE RULES
TO BASICALLY RIP OFF CONSUMERS
EAGER TO SEE THEIR FAVORITE
ARTISTS. WE NEED TO UPDATE THE
LAWS FOR HOW TICKETS ARE SOLD
TODAY TO MAKE SURE ARTISTS
PERFORMERS IN VENUES CAN REACH
THEIR FANS AND SELL TICKETS IN
AN EASIER AND MORE TRANSPARENT
WAY. A B EIGHT. ADDS NEW
IMPORTANT CONSUMER PROTECTIONS.
THE CONSUMER PROTECTION
PROVISIONS WOULD APPLY TO ALL
PRIMARY AND SECONDARY TICKET
SELLERS. CURRENT LAW ONLY
REGULATES SECONDARY TICKET
BROKERS, BUT EXEMPTS PRIMARY
TICKET BROKERS AND DOESN'T
INCLUDE SECONDARY TICKET SELLERS
OR RESALE PLATFORMS. A B EIGHT
WILL REQUIRE THAT THE FULL PRICE
OF A TICKET, INCLUDING ALL FEES
SHOULD BE KNOWN TO THE CONSUMER
WHEN THEY SELECT THE TICKETS
THEY WISH TO PURCHASE AND THE
PRICE WILL NOT INCREASE DURING
THE PURCHASE PROCESS. IT'S JUST
TRANSPARENCY. IT WILL ALSO
REQUIRE PLATFORMS EITHER
ORIGINAL OR RESALE TO DISCLOSE
AN EXACT LOCATION A SECTION ROW
AND SEAT NUMBER OF THE TICKETS
SO THAT YOU'RE NOT SURPRISED TO
FIND OUT THAT THOSE TICKETS THAT
YOU THOUGHT WERE GOING TO BE
EXCELLENT OR OBSTRUCTED OR
SOMEWHERE MUCH FURTHER AWAY THAN
YOU HAD THOUGHT. FINALLY, A B
EIGHT. UM PROTECTS CONSUMERS
FROM DISCRIMINATORY,
ANTICOMPETITIVE AND DECEPTIVE
PRACTICES THAT MAKE IT HARDER TO
BUY, SELL AND USE TICKETS. WE
CAN KEEP THE ENTERTAINMENT
INDUSTRY THRIVING IN CALIFORNIA
AND PROTECT CONSUMERS AT THE
SAME TIME. THANK YOU. MR IRWIN
IS JUST WAITING FOR THE
ELEVATOR. IF YOU WILL INDULGE,
OR WE CAN GO TO A WITNESS AND
THEN COME BACK TO HER. WHATEVER
YOUR PLEASURE, MADAM CHAIR,
LET'S GO AHEAD AND GO TO A
WITNESS. AND THEN WE'LL GO BACK
TO THANK YOU. HELLO MY NAME IS
SANDRA CUSHION AND I AM THE
CONSUMER ADVOCATE WITH CAL PIRG
, WHERE THE STATEWIDE CONSUMER
WATCHDOG AND ADVOCACY GROUP
WORKING TO PROTECT CALIFORNIANS
AND ENSURE A FAIR MARKETPLACE
AND WE'RE PROUD CO SPONSOR OF A
B EIGHT. UM ONE OF THE MOST
BASIC TENANTS OF CONSUMER
PROTECTION IS TRANSPARENCY AND
COMPLETE PRICING INFORMATION
SPECIFICALLY, IS REALLY CRITICAL
TO HELP INFORM CONSUMERS
PURCHASES AND ENSURE A FAIR
MARKETPLACE AND JUST ALLOW
SIMPLE COMPARISON SHOPPING. BUT
MORE AND MORE TICKET SELLERS ARE
VIOLATING THIS PRINCIPLE BY
BLINDSIDING CONSUMERS WITH
HIDDEN FEES AND OTHER UNFAIR
TACTICS THAT CAN MAKE IT VERY
DIFFICULT TO FIND THE TRUE PRICE
OF A TICKET. MAYBE A ADDRESSES
THIS BY ENSURING THAT TICKETS
ADVERTISED PRICE IS THE ACTUAL
PRICE AND ENSURES THAT SEAT
LOCATION, INFORMATION AND REFUND
POLICIES ARE AVAILABLE TO THE
CONSUMER AT THE TIME OF
PURCHASE. IN ADDITION TO PROPER
TRANSPARENCY, A B EIGHT GIVES
CONSUMERS CONTROL OVER THEIR
TICKET AFTER THEY PURCHASE IT.
SO CURRENTLY, TICKET SELLERS CAN
PREVENT TICKET OWNERS FROM
RESELLING TICKETS THROUGH ANY
SITE BESIDES THEIR OWN, AND ONCE
SOMEONE PURCHASES A TICKET, IT
SHOULD BE THEIRS TO DO WITH AS
THEY PLEASE. ADDITIONALLY A B A
WOULD BETTER PROTECT THE DATA OF
CONSUMERS WHO USE TICKET SELLER
PLATFORMS. AND JUST TO WRAP IT
UP BROAD PUBLIC SUPPORT FOR
REFORM IN THIS TICKET BUYING AND
SELLING PROCESS HAS BEEN BREWING
FOR QUITE SOME TIME. NOW UM AS
WE EMERGE FROM THE WORST DAYS OF
THE COVID PANDEMIC, CALIFORNIANS
ARE LOOKING FOR MORE AND MORE
OPPORTUNITIES TO GO TO LIVE
EVENTS AND ENJOY THEM. AND AS
PEOPLE ARE BUYING TICKETS, MORE
AND MORE THIS BROKEN NATURE OF
THIS TICKET SELLING SYSTEM IS
BECOMING MORE AND MORE APPARENT.
SO MAYBE A OFFERS COMMON SENSE
SOLUTIONS TO THIS BROKEN SYSTEM
. CONSUMERS SHOULD KNOW THE TRUE
PRICE OF A TICKET AND HAVE
CONTROL OVER WHAT THEY DO WITH
THAT TICKET ONCE THEY OWN IT.
THANK YOU AND I RESPECTFULLY
REQUEST YOUR IPHONE. THANK YOU
REMEMBER, IRWIN? THANK YOU VERY
MUCH. MADAM CHAIR. I WOULD LIKE
TO BEGIN BY THANKING MADAM CHAIR
AND YOUR COMMITTEE STAFF ARE
WORKING DILIGENTLY WITH MY STAFF
AND ASSEMBLYMEMBER'S FRIEDMAN'S
OFFICE ON AMENDMENTS THAT WE
WILL BE ACCEPTING, UM AH, THIS
AFTERNOON. ASSEMBLYMEMBER'S
FRIEDMAN AND I ARE HERE TODAY
BECAUSE THERE IS NO DISPUTING
THAT LIVE EVENTS WHETHER THEY
ARE CONCERTS, MUSIC, MUSIC
FESTIVALS OR SPORTS GAMES. BRING
FANS TOGETHER IN EXCITEMENT.
HOWEVER CONSUMERS CONTINUE TO IT
AS CONSUMERS CONTINUE TO ATTEND
LIVE EVENTS. IT'S BECOME
APPARENT THAT THEY ARE BEING
DEPRIVED OF TRANSPARENCY IN THE
TICKET PURCHASING PROCESS. NOT
ONLY ARE CONSUMERS BEING
OVERCHARGED WHEN THEY'RE BUYING
TICKETS, BUT THEY'RE OFTEN
PAYING AN UP. WORD OF 20 TO 50%
OF THE TICKETS, FACE VALUE AND
HIDDEN FEES THAT ARE NOT BEING
DISCLOSED UNTIL A CONSUMER IS IN
THE LAST STEP. OF PURCHASING
THEIR TICKET. THESE DECEPTIVE
PRACTICES HARM BOTH CONSUMERS
FINANCIALLY AND UNDERMINE THE
TRUST THAT CONSUMERS MUST PLACE
IN THE TICKETING INDUSTRY IN
ORDER FOR IT TO CONTINUE TO
THRIVE TO ADDRESS THE OVERDUE
NEED FOR TRANSPARENCY AND
REGULATION IN BOTH THE PRIMARY
AND SECONDARY TICKETING MARKET
MARKETPLACE. I'M PROUD TO BE A
JOINT AUTHOR OF A B EIGHT WITH
ASSEMBLYMEMBER'S FRIEDMAN AVIATE
WILL ENSURE THAT CONSUMERS ARE
PROVIDED WITH TRANSPARENCY AND
TICKET PRICES FEES. AND SEATING
LOCATION PRIOR TO CHECK OUT AND
THAT THEY WILL BE GIVEN
FLEXIBILITY ON HOW TO PURCHASE
AND USE THEIR TICKETS WITH A B
EIGHT. CALIFORNIA'S WILL
CONTINUE TO PROTECT CONSUMERS
FROM DISPATCH DECEPTIVE
WORKPLACE PRACTICES THAT HAVE NO
PLACE IN OUR STATE. FINALLY WITH
US TODAY IN SUPPORT, WELL, I
THINK WE'VE ALREADY DONE THE
SUPPORT RIGHT? UM AH, HAVE WE
DONE ALL THE SUPPORT? NO OKAY.
ALRIGHT WELL, WHOEVER HASN'T
SPOKEN IN SUPPORT, WE WILL SEND
IT OVER TO YOU TWO MINUTES EACH,
PLEASE. THANK YOU, MADAM CHAIR.
MY NAME IS BRIAN HESS. I'M THE
EXECUTIVE DIRECTOR OF SPORTS
FANS COALITION AND THANK YOU FOR
THE OPPORTUNITY, TESTIFIED TODAY
. FOUNDED IN 2009 SFC
INTERNATIONAL NON PROFIT
ADVOCACY GROUP DEVOTED TO
REPRESENTING FANS OR EVER PUBLIC
POLICY IMPACTS THE GAMES WE
LOVE. WE'VE WORKED IN THE STATES
AND THE FEDERAL LEVEL TO PASS
EQUAL PAY FOR WOMEN OLYMPIANS,
YOUTH ATHLETE, HEALTH AND SAFETY
REFORMS AND SPORTS BETTING
CONSUMER PROTECTIONS. A B EIGHT
WILL POSITIVELY IMPACT THE FAN
EXPERIENCE, WHICH IS WHY WE
ENTHUSIASTICALLY SUPPORT IN THE
WAKE OF A DISTURBING TREND OF
POOR FAN EXPERIENCES DURING THE
TICKET BUYING PROCESS. SPORTS
FANS COALITION, THE NATIONAL
CONSUMERS LEAGUE CONSUMER
FEDERATION OF AMERICA FAN
FREEDOM CONSUMER ACTION PUBLIC
KNOWLEDGE IN THE NATIONAL
ASSOCIATION OF CONSUMER
ADVOCATES DEVELOPED A SET OF
PRINCIPLES TO PROTECT FANS KNOWN
AS THE TICKET VIA BILL OF RIGHTS
. A B EIGHT HAS MANY OF THE
PRINCIPLES OF THE TICKET BUYER
BILL OF RIGHTS. THE RIGHT TO
TRANSFER FOR ABILITY, WHERE
TICKET HOLDERS DECIDE HOW TO
USE, SELL OR GIVE AWAY THEIR
TICKETS IF THEY WISH AND NOT THE
ENTITY THAT PREVIOUSLY SOLD THE
TICKETS. FANS DON'T JUST BUY
TICKETS. THEY SELL TICKETS TO
SEASON TICKET HOLDERS, FOR
EXAMPLE, WANT THE FREEDOM TO
SELL THEIR TICKETS? IF THEY
CAN'T MAKE A GAME TO THE
ILLNESS, WORK OBLIGATIONS OR ANY
OTHER REASON. THE EASE OF RESALE
ENCOURAGES FANS TO INVEST MORE
IN CALIFORNIA'S HOME TEAMS AND
ALLOWS CONSUMERS TO PURCHASE
SEASON TICKETS THEY OTHERWISE
WOULD NOT BE ABLE TO AFFORD. THE
RIGHT TO TRANSPARENCY, WHICH
INCLUDES ALL IN PRICING AND
DISCLOSURES OF RELEVANT
INFORMATION FOR THE PURCHASING
DECISION. FANS DO NEED TO BE
INFORMED WHEN MAKING PURCHASING
DECISIONS THAT STARTS WITH ALL
IN PRICING. A B EIGHT PROVIDES
FOR THAT, BUT WE ALSO SUPPORT
HOLD BACK DISCLOSURES. UH THE
NEW YORK ATTORNEY GENERAL FOUND
THAT 46% OF POPULAR TICKETS ARE
NEVER MADE AVAILABLE TO THE
GENERAL PUBLIC. THIS IS A
DECEPTIVE TRADE PRACTICE THAT IS
USED TO GENERATE FALSE SCARCITY.
I UNDERSTAND THE COMMITTEE IS
CONSIDERING AN AMENDMENT. THAT
WOULD STRIKE THE CURRENT
DISCLOSURE REQUIREMENTS UNDER
THE BILL, WE HOPE TO CONTINUE
THOSE CONVERSATIONS. WE ALSO
SUPPORT THE RIGHT TO SET THE
PRICE SO THAT COMPANIES WHO
ORIGINALLY SOLD TICKETS CAN'T
DICTATE TO FANS FOR WHAT PRICE
THEY CAN OR CANNOT RESELL THEIR
TICKETS. AND THE RIGHT TO A FAIR
MARKETPLACE WHERE FANS COMPETE
WITH ACTUAL HUMANS, NOT ILLEGAL
BOTS SOFTWARE FOR TICKETS. FANS
SHOULDN'T HAVE TO COMPETE WITH
COMPUTER SOFTWARE DESIGNED TO
SCOOP UP TICKETS AND,
THANKFULLY, FEDERAL LAW, AND
THIS BILL WILL PROHIBIT THAT
ACTION. BUT WE DO SUPPORT,
ADDING MANDATORY REPORTING THE
COMPANIES THAT STOPPED THE BOX,
THEY SAY, ARE THE ONES THAT CAN
ACTUALLY HELP ENFORCE THE BOTS
ACT, WHICH HAS ONLY BEEN
ENFORCED ONCE IN ITS ENTIRE
HISTORY. IF YOU REQUIRE THESE
COMPANIES TO REPORT THAT
ACTIVITY, WE CAN ACTUALLY GET AN
IDEA OF HOW MANY BOTS ARE
ACTUALLY BUYING TICKETS AND THE
HARM THAT THEY ARE CAUSING
CONSUMERS. THE LAST RIGHT IS THE
RIGHT TO RECOURSE SO THAT FANS
HAVE THEIR DAY IN COURT IF THEY
SUFFER HARM FROM A TICKET ISSUER
AND NOT BE FORCED INTO
ARBITRATION. CALIFORNIA HAS THE
OPPORTUNITY TODAY TO LEAD THE
NATION IN CONSUMER PROTECTION
FOR LIVE EVENT TICKET GOERS, AND
I URGE A YES VOTE ON A B EIGHT.
THANK YOU NEXT WITNESS. THANK
YOU VERY MUCH. GOOD MORNING,
MADAM CHAIR AND MEMBERS. MY NAME
IS ROBERT CAROL I'M THE
EXECUTIVE DIRECTOR OF THE
CONSUMER FEDERATION OF
CALIFORNIA, WHERE ONE OF THE CO
SPONSORS OF THIS MEASURE. JUST
BRIEFLY, UM WHAT THE JOINT
AUTHORS HAVE DISCUSSED IN THIS
BILL IS WHAT WE REFER TO AS FIVE
CLICKS SYNDROME. THAT IS TO SAY
COMPANIES HIRE BEHAVIORAL
ECONOMISTS. THIS IS SCIENCE AND
WHAT THEY HAVE FOUND. IS THAT
THE FURTHER ALONG YOU GET INTO
THAT TRANSACTION. THE MORE
COMMITTED, YOU ARE TO WHATEVER
THAT ITEM IS NOW, UNLIKE, SAY,
THE LODGING INDUSTRY WHERE IF
YOU DON'T LIKE TO ADD ON FEES
THAT MARRIOTT IS PILING ON YOUR
HOTEL ROOM, YOU COULD
THEORETICALLY SWITCH OVER TO
HILTON OR ANOTHER CHAIN. WHEN
YOU'RE GOING TO GO SEE TAYLOR
SWIFT OR BEYONCE. YOU DON'T HAVE
THAT OPPORTUNITY. YOU'RE NOT
GOING TO SUBSTITUTE A TAYLOR
SWIFT COVER BAND. MOST FANS
WON'T FOR TAYLOR SWIFT HERSELF,
SO THERE'S FIVE CLICKS SYNDROME
. WHAT IT WINDS UP DOING IS
COSTING CONSUMERS BILLIONS AND
BILLIONS OF DOLLARS. WE'RE
COORDINATING A SIX BILL JUNK
FEED PACKAGE. THIS IS A KEY
COMPONENT OF IT, AND MANY OF
THESE FEES THAT WE SEE IN
VARIOUS INDUSTRIES ARE WHAT'S
KNOWN AS BECAUSE WE CAN AND IN
THIS CASE, THE BECAUSE WE CAN'T
IS BECAUSE YOU LET'S BE HONEST.
YOU BASICALLY HAVE A MONOPOLY
PLAYER IN THIS MARKET. WHEN LIVE
NATION BOUGHT TICKETMASTER THEY
HAVE EXERTED SINCE THAT
TRANSACTION WAS COMPLETED IN
2010. MONOPOLY POWER. ONE COULD
ARGUE THAT THEY'RE NOT FOLLOWING
THE CONSENT DECREE THAT THEY
AGREED TO, BUT THAT'S ANOTHER
CONVERSATION FOR ANOTHER TIME.
OUR VIEW IS THAT ONCE A CONSUMER
VISOR TICKET THEY OWN AND
CONTROL THAT TICKET, I SAY THAT
CANDIDLY, EVEN IF I MIGHT NOT
PERSONALLY LOVE EVERY SINGLE
DECISION THAT EVERY SINGLE
CONSUMER MAKES, BUT IT'S THEIR
TICKET. UM AND THIS IS A
BIPARTISAN ISSUE. UM ANYBODY
WHO'S PAID ATTENTION TO THIS HAS
SEEN THAT THE U. S SENATE HAD A
RECENT HEARING. UM SENATORS SUCH
AS JOSH HAWLEY, MARSHA BLACKBURN
AND TED CRUZ WERE VERY CLEAR
THAT THIS IS MONOPOLY POWER, AND
THIS IS MANIPULATING CONSUMERS
AND CONSUMERS ARE PAYING DEARLY
BECAUSE OF IT, SO IT'S NOT JUST
A DEMOCRATIC OR REPUBLICAN
ISSUE. UM WE ARE ALSO A CO
SIGNER OF THE TICKET BY YOUR
BILL OF RIGHTS. WE THINK THOSE
ARE IMPORTANT PRINCIPLES THAT
ARE EMBODIED IN THIS BILL. WE
UNDERSTAND. OF COURSE, THAT
CONVERSATIONS WILL CONTINUE ON
THIS MATTER, AND WE ARE ALWAYS
READY, WILLING AND ABLE TO
CONDUCT THOSE CONVERSATIONS.
JUST A QUICK STORY. UM UM, I
HAVE A 12 YEAR OLD DAUGHTER.
SHE'S A BIG FAN OF K POP. AH TWO
OF THE MOST INFURIATING HOURS OF
MY LIFE WERE SPENT RECENTLY
TRYING TO SECURE TICKETS TO SEE
A BAND CALLED TWICE THAT'S GOING
TO BE PLAYING A COUPLE OF SHOWS
IN OAKLAND AND JUNE, UM, THAT
THAT PROCESS IS BROKEN FOR THE
REGULAR FAN, AND I EVEN SIGNED
UP FOR THE VERIFIED FAN PRE SALE
CODE. IT WAS. IT WAS A
NIGHTMARE. I WOUND UP GOING ON
THE SECONDARY MARKET PAINT A
LITTLE BIT ABOVE FACE TO GET
SOMETHING. GIVE CONSUMERS SOME
POWER BACK. SUPPORT A B EIGHT
THANK YOU. THANK YOU. DO WE HAVE
ANYBODY? UH IN OUR TENANTS THAT
WOULD LIKE TO SPEAK IN SUPPORT.
HELLO MY NAME IS SEAN ASH FROM
STUBHUB AND I'M HERE TO SUPPORT
THE BILL. MADAM CHAIR AND
MEMBERS COURTNEY JENSEN ON
BEHALF OF SEATGEEK AND TICK,
PICK AND SUPPORT. MORNING
EVERYBODY TIMOTHY BURR ON BEHALF
OF VIVID SEATS IN SUPPORT.
ALRIGHT SEE NOBODY ELSE. LET'S
GO AHEAD AND START WITH
OPPOSITION IF WE HAVE WITNESSES.
DO WE HAVE ANY MEMBERS THAT
WOULD LIKE TO ASK QUESTIONS TO
THE WITNESSES HERE BEFORE WE
MANY MEMBERS WANTING TO ASK
QUESTIONS. YOU CAN ALWAYS BRING
HIM BACK IF WE NEED TO.
SOMETHING WE CAN PASS IT. CAÑADA
. ALRIGHT WE HAVE MEMBERS TWO
MINUTES EACH, PLEASE. MEMBERS OF
THE COMMITTEE CHAIR, QUIRK-SILVA
. MY NAME IS THE UNDER GOVERNOR
. I'M HERE TODAY AND HALF THE
SAN FRANCISCO 40. NINERS. LOS
ANGELES DODGERS, SAN FRANCISCO
GIANTS OAKLAND A'S LOS ANGELES
ANGELS, SAN DIEGO PADRES AND THE
MARENGO BAND EMISSION INDIANS,
ALL OF WHOM WERE OPPOSED TO THE
I KNOW YOU WERE OPPOSED TO THE
MEASURE. HALF OF THEIR CLIENTS.
WE MUST RESPECTFULLY OPPOSED TO
THE MEASURE BECAUSE THERE ARE
STILL A HOST OF ISSUES THAT MUST
BE ADDRESSED IF WE ARE CHANGED
OUR POSITION, INCLUDING PAPER
TICKETS, MARKETING, RESALE AND
TRANSFERABILITY TO OTHER
PLATFORMS. ALL THAT ARE
CONTAINED IN SECTION 22 507.
HAVING SAID THAT WE APPRECIATE
THE AUTHORS FRIEDMAN AND IRWIN
AND THEIR STAFF FOR TAKING THE
TIME TO MEET WITH US LAST WEEK
AND ALSO TAKING OUT ONE OF THE
MOST OBJECTIONABLE ISSUES TO US,
WHICH WAS SECTION 22 505, THE
DYNAMIC PRICING AND THE WHOLE
BACK ISSUE. THEY HAVE ALSO
COMMITTED TO WORKING ON RESALE
AND TRANSFERABILITY. AND FOR
THAT, WE THANK YOU AND
APPRECIATE THAT. YOU MAKING
THOSE AMENDMENTS AND WHILE WE DO
APPRECIATE THAT, YOU KNOW THAT
WE STILL DO HAVE OTHER CONCERNS
AGAIN. MOST OF THOSE CONCERNS
ARE IN 22 507. OUR TEAMS IN
CALIFORNIA. VENUE OPERATORS
CONTRIBUTE MILLIONS OF DOLLARS
IN STATE AND LOCAL TAXES,
PROVIDE MILLIONS IN SUPPORT TO
NONPROFITS AND CHARITABLE CAUSES
THROUGHOUT THE STATE. AND WE
ALSO EMPLOY THOUSANDS OF PEOPLE
AT OUR STADIUMS AND VENUES BOTH
DIRECTLY AND INDIRECTLY THROUGH
OUR EMPLOYMENT, BUT ALSO FOR
THOSE SERVICES THAT SUPPLY OUR
FANS AND OUR CUSTOMERS AND OUR
VENUES. WE TRY TO ENSURE OUR
FANS GET ACCESS TO THE BEST
POSSIBLE TICKETS AT THE BEST
PRICE, AND WE DON'T SEE THIS
MEASURE HELPING THAT CAUSE. WE
REMAIN OPPOSED BECAUSE WE
BELIEVE THIS MEASURE SIMPLY
REARRANGES THE CURRENT SYSTEM TO
THE BENEFIT OF THE SECONDARY
MARKET. AND THERE'S NOTHING TO
HELP CONSUMERS GET CHEAPER
TICKETS, BUT RATHER WOULD LEAD
TO INCREASED PRICES AS A RESULT
OF THE SECONDARY MARKET. WE
BELIEVE RESTRUCTURING
CALIFORNIA'S TICKETING MARKET,
ESPECIALLY FOR SPORTS DOESN'T
MAKE SENSE TO OUR TEAMS OR HELP
OUR FANS, OUR TEAMS AND VENUES
SPAN THE STATE, CONTRIBUTING TO
THE ECONOMIC AND SOCIAL FABRIC
OF OUR COMMUNITIES, BRINGING
FANS OF SPORTS AND ENTERTAINMENT
TOGETHER. WE BELIEVE THAT A B
EIGHT IS UNNECESSARY AND WILL
SIMPLY BENEFIT THE SECONDARY
MARKET TO THE DETRIMENT OF
CALIFORNIA BASED TEAMS, VENUES
AND OUR FANS. I MUST
RESPECTFULLY OR MAN OPPOSED. BUT
AGAIN, I JUST WANT TO REITERATE
IF 22 507 WERE REMOVED THAT
TAKES CARE OF MOST OF THE MAJOR
ISSUES OF THE SPORTS TEAMS. AND
WHILE THAT WOULDN'T REMOVE OUR
OPPOSITION BECAUSE OUR TECHNICAL
AND DEFINITIONAL CHANGES
REMOVING 22 507 TAKES CARE OF
MOST OF THE ISSUES THAT WE
BROUGHT UP TO THIS COMMITTEE AND
TO THE MEMBERS, SO THANK YOU.
GOOD MORNING, CHAIRMAN
CHAIRWOMAN QUIRK-SILVA YOU WANT
TO PUT RIGHT HERE? THANK YOU.
THANK YOU. AND THANK YOU MEMBERS
OF THE COMMITTEE FOR THE
OPPORTUNITY TO SPEAK TODAY AND
AUTHORS OF ABBEY A THANK YOU FOR
YOUR EFFORTS TOWARDS TICKET
SELLING. I'M VICTORIA VAN
CELESKI. I'M S V P AND GENERAL
COUNSEL FOR ACCESS TICKETS. WE
ARE WHAT STONE IS A PRIMARY
TICKETING COMPANY, A MUCH
SMALLER VERSION OF TICKETMASTER.
WE PROVIDE COMPUTERIZED SOFTWARE
AND TICKETING HARDWARE LIKE
ACCESS CONTROL SYSTEMS TO OUR
VENUE CLIENTS TO MAKE THE
PROCESS OF TICKET BUYING AND
USING YOUR TICKETS SAFE, EASY
AND TO AVOID COUNTERFEIT AND
FRAUDULENT TICKETS. WE
APPRECIATE THE EFFORTS OF THE
AUTHORS HERE ON A B EIGHT,
HOWEVER IT THEY VÀ DOES NOT GO
FAR ENOUGH TO ACTUALLY ADDRESS
THE CONSUMER ISSUES. CALIFORNIA
ALREADY HAS ROBUST CONSUMER
PROTECTION MEASURES OF THAT
WOULD ASSIST FOR DECEPTIVE
PRACTICES AND FRAUDULENT
PRACTICES. WE APPRECIATE THE
EFFORTS TO MODERNIZE THE
EXISTING TICKET SELLER STATUTES
, WHICH, AS NOTED, ARE VERY OLD
. HOWEVER WE NOTICED THAT A B
EIGHT UM DOES NOT. IT'S STILL
ACCEPTS TICKET BROKERS FROM THE
BILL ON SOME SECTIONS. FOR
EXAMPLE, THERE'S AN EXCEPTION
THAT ALLOWS THE SELLER WHO HAS
LESS THAN 66 TICKETS TO ANY
EVENT TO NOT BE SUBJECT TO THE
BILL. THIS MAKES NO SENSE A
TICKET BROKER COULD USE COULD
BUY FIVE TICKETS FOR EVERY
SINGLE EVENT ON THE PRIMARY
MARKET. I WANT TO JUST PAUSE FOR
A MINUTE WE DISTRIBUTED, UH AND
INFOGRAPHIC JUST TO TALK A
LITTLE BIT ABOUT THE PRIMARY
MARKET. IT IS CONFUSING TO
CONSUMERS THAT BECAUSE THERE ARE
SO MANY DIFFERENT TYPES OF
TICKET SELLERS, SO I JUST WANT
TO PAUSE FOR A MINUTE AND
EXPLAIN A LITTLE BIT ABOUT THE
ECOSYSTEM AND THE FOLKS WHO ARE
, UM IN FAVOR OF THE BILL ARE ON
THE TICKET BROKER SIDE OF THE
HOUSE OR SECONDARY MARKET, AND,
UM, WE ARE OPPOSED. WE ARE THE
FOLKS THAT REPRESENT THE RIGHTS
HOLDERS OF THE ENTERTAINMENT
EVENTS THAT SPEND THE MONEY TO
BRING THE CONCERTS TO FANS. SO
THE TICKETS AND FEES THE PRIMARY
MARKET TICKET SELLER SELLS
TICKETS ON BEHALF OF OUR CLIENTS
. THE SECONDARY MARKET SELLS
TICKETS ON BEHALF OF TICKET
BROKERS OR OTHER FANS WHO HAVE
AN EXTRA TICKET TO SELL. UM AND
WE'VE DISTRIBUTED A GRAPHIC,
WHICH SHOWS THIS THE AVERAGE
FEES IN THE PRIMARY MARKET AND
THE SECRETARY MARKET. I THINK
THIS IS IMPORTANT BECAUSE THE
WAY TO ACTUALLY STOP THE ABUSES
THAT EVERYONE READS ABOUT AND
EVERYONE, ESPECIALLY OUR CLIENTS
, WHO HAVE TO DEAL WITH RECEDING
FANS WHEN THEY ARE SHOW UP AT AN
EVENT WITH A COUNTERFEIT TICKET.
THE WAY TO STOP THIS IS TO
REALLY STOP. UM BUT
UNFORTUNATELY REPORTING BOTS IS
NOT GOING TO HELP THE PROBLEM.
ACCESS UM AS ON A RECENT CISA ON
SALE, 30% OF ALL TRAFFIC WAS
BOTS. SO WHAT IS ABOUT IT'S A
BROKER. IT'S A BROKER THAT WE
ALSO DISTRIBUTED SOME EXAMPLES
OF, UM WEBSITES THAT SELL TICKET
BOTS, SO BROKERS USED BOTS SO
THAT THEY CAN BUY THOUSANDS OF
TICKETS. THE REASON WHY SORRY
FANS ARE LEFT OUT IS BECAUSE
THEY CAN'T GET A PRIMARY MARKET
TICKET AT THE FACE PRICE SET BY
THE ARTIST. THAT'S WHY THE
RESTRICTIONS ON RESALE ARE ALSO
VERY IMPORTANT FOR US TO BE
REMOVED FROM THE BILL BECAUSE
THOSE ARE CONTRACTUAL TERMS
BETWEEN THE RIGHTS HOLDER, THE
ENTERTAINMENT EVENT PRESENTER
AND THE FAN THERE DISCLOSED
THEIR AGREED TO AND WE BELIEVE
THAT THE FOLKS WHO PAY FOR THE
EVENT SHOULD DETERMINE HOW THEIR
TICKETS ARE PRICED AND SOLD.
THANK YOU FOR YOUR TIME. THANK
YOU. THANKS FOR HAVING ME
EVERYONE. MY NAME IS JORDAN,
BROMLEY AND I'M HERE ON BEHALF
OF MUSIC ARTISTS COALITION. AH
WE ALSO GO BY MAX. SO I'LL USE
THAT MAC IS A COALITION
COMPRISED OF ALL MUSIC CREATORS
WERE DEDICATED TO PROTECTING AND
ADVOCATING FOR ARTISTS RIGHTS
WITHOUT CONFLICT OR COMPROMISE.
WE WORK CLOSELY WITH OTHER
ADVOCACY GROUPS LIKE BLACK MUSIC
ACTION COALITION SONGWRITERS IN
NORTH AMERICA. FUTURE OF MUSIC
COALITION SAG AFTER THE
RECORDING ACADEMY UM ALL OF ALL
OF WHOM ARE IN OPPOSITION OF
THIS BILL FOR A VERY IMPORTANT
REASON. AND WHILE WE UNDERSTAND
THAT THE AUTHORS OF A B EIGHT DO
NOT INTEND FOR THIS BILL TO BE
BAD FOR CREATORS AS EXPERTS IN
THE INDUSTRY. WE NEED TO POINT
OUT THE DEVASTATING CONSEQUENCES
OF THE BILL BECAUSE IT WOULD
STRIP ARTISTS OF THEIR RIGHTS TO
PROTECT THEIR FANS. I WANT TO
FOCUS MY COMMENTS ON 2 TO 507.
WHICH PROHIBITS TRANSFERABILITY
ARTISTS WORK HARD TO FIND
INNOVATIVE WAYS TO PROTECT THEIR
FANS FROM PRICE GOUGING. TO DO
THAT. WE NEED TO BE ABLE TO
ATTACH TERMS AND CONDITIONS TO
THESE TICKETS. THESE CONDITIONS
DO NOT HURT THE FAN WHO GETS
SICK AND CAN'T MAKE A SHOW. THEY
DO PREVENT SCALPERS FROM DRIVING
UP PRICES. ARTISTS WANT THEIR
FANS TO BE ABLE TO AFFORD TO
COME TO THEIR SHOWS A B EIGHT
WITHOUT WITH THIS TRANSFER
ABILITY IN THE BILL WOULD TAKE
THAT ABILITY AWAY. AND THIS IS
AN IMPORTANT JUNCTURE WHERE THE
FUTURE IS VERY BRIGHT FOR
TOURING ARTISTS IN THEIR FANS.
VARIOUS NEEDS AND TECHNOLOGIES
HAVE BEEN TESTED AND
SUCCESSFULLY IMPLEMENTED TO
PROTECT FANS IN THEIR ARTISTS
BEING SUCH AS PROGRAM THE CURE
QUEEN PARAMOUR HAVE SET UP
PLAYING A FAN FACE VALUE
EXCHANGES, WHERE TICKETS CAN
ONLY BE RESOLD FOR THE ORIGINAL
PURCHASE PRICE. AVIATE
INEXPLICABLY KILLED THIS ABILITY
FOR ARTISTS AS WELL. WE FINALLY
SEE A FUTURE WHERE AN ARTIST CAN
TRULY PROTECT THEIR FANS FROM AN
INFLATED SECONDARY MARKET. IT IS
JUST AROUND THE CORNER. BUT WITH
THE RESTRICTION THAT OF
TRANSFERABILITY LIKE AN A B
EIGHT WE CAN'T EVEN GET TO GO.
IN CONCLUSION. I WANT TO SAY
THAT FANS ARE BEST SERVED WHEN
ARTISTS ARE IN CONTROL. WHEN
ARTISTS THINKS OF PRICING THEY
HAVE THE FAN IN MIND. WHEN
RESELLERS AND SCALPERS THINK OF
PRICING THEY ONLY HAVE PROFITS
IN MIND. WITHOUT ARTISTS. THERE
IS NO MUSIC, BUT WITHOUT OUR
FANS. THERE IS NO MUSIC
BUSINESS. NO ONE CARES ABOUT THE
MUSIC FAN THE CONCERTGOERS MORE
THAN THE ARTIST. AND THE ARTISTS
ARE TELLING YOU TODAY THAT THE
PROBLEM IS THE UNREGULATED
SCALPERS IN THE SECONDARY
PLATFORMS WHO BENEFIT FROM
EXORBITANT PRICES. THE ANTI
TRANSFERABILITY RESTRICTIONS AND
A B EIGHT IS OBJECTIVELY ANTI
ARTIST. THE BILL WERE HARMED
BOTH FANS AND ARTISTS IT WILL
IMPORTANT AND ENABLE SCALPERS
AND FOR THOSE REASONS, MAX
STRONGLY OPPOSED THIS BILL AND
HOPES THE COMMITTEE WILL TOO.
THANK YOU. THANK YOU WITH THAT
IF WE HAVE ANYBODY IN ATTENDANCE
WISHING TO REGISTER OPPOSITION.
GOOD MORNING, TIM LYNCH ON
BEHALF OF THE GOLDEN STATE
WARRIORS. WE APPRECIATE THE
AUTHORS WILLINGNESS TO TAKE OUT
THE 2 TO 505 SECTION AND
YESTERDAY MAN ORGANIZATION.
THANK YOU. WE REMAIN OPPOSED.
THANK YOU. MORNING JOHN GUNSON
ON BEHALF OF THE NATIONAL
INDEPENDENT VENUE ASSOCIATION,
REPRESENTING INDEPENDENT BRICK
AND MORTAR VENUES THROUGHOUT THE
STATE AND CALIFORNIA CAPITAL.
WE'RE ALSO PART I'M REPRESENTING
THE CALIFORNIA CAPITAL VENUE
COALITION, WHICH REPRESENTS
SACRAMENTO REGION. INDEPENDENT
VENUES WERE IN RESPECTFUL
OPPOSITION ALSO HERE TO EXPRESS
OPPOSITION ON BEHALF OF ALEX
TORRES OF THE BAY AREA COUNCIL.
GOOD MORNING. MCKAY CARNEY ON
BEHALF OF THE SAN JOSE SHARKS
RESPECTFULLY IN OPPOSITION.
THANK YOU ANYBODY ELSE? NOT
SEEING ANYBODY WILL BRING IT
BACK TO THE COMMITTEE FOR
QUESTIONS OR DISCUSSION.
ASSEMBLYMEMBER'S HEART. I HAVE A
QUESTION ANYBODY CAN ANSWER IF
I'M SITTING IN A VENUE AND
LOOKING AROUND AT THE OTHER
FANS, WHAT PERCENTAGE MOVE THEM
FAR AWAY? UM, WHAT PERCENTAGE OF
THE FANS ARE THERE WITH RESOLD
TICKETS? GOOD QUESTION IF WE
HAVE SOMEBODY IN THE AUDIENCE
THAT WANTS TO ANSWER RESOLD
TICKETS, WHAT PERCENTAGE OF FANS
ARE IN A VENUE WITH RECENT THE
OUR WITNESSES UP TO HELP ANSWER
QUESTIONS BEHIND YOU. I WILL SAY
JUST GENERALLY THAT IT VARIES BY
EVENT, THE CONCERT EVENTS THAT
ARE MOST POPULAR WHERE THE BOTS
ARE EMPLOYED, AND FANS ARE
UNABLE TO GET TICKETS IN THE
PRIMARY MARKET. IT'S QUITE HIGH
. I MEAN, WE COULD CERTAINLY GET
STATISTICS FOR YOU, BUT ON ON
SOMETHING LIKE TAYLOR, SWIFT OR
BEYONCE, IT'S QUITE QUITE HIGH.
ON EVENTS WHERE TICKETS ARE MORE
READILY AVAILABLE, SUCH AS
SPORTING EVENTS. IT'S NOT AS
COMMON, BUT THE SECONDARY MARKET
IS GROWING, AND THERE ARE
CERTAINLY STATISTICS OF
AVAILABLE. I THINK THERE ARE
PERHAPS THE NEW YORK ATTORNEY
GENERAL REPORT, WHICH FOLKS SIDE
A LOT IS QUITE OLD, BUT WE COULD
CERTAINLY PROVIDE UH, SOME OTHER
INFORMATION FOR YOU.
ASSEMBLYMEMBER'S DEPENDS ON THE
SHOW IS THE SHORT ANSWER, BUT,
UM, I WOULD JUST NOTE THAT THE
DOMINANT PLAYER IN THE SECONDARY
TICKET SELLING MARKET IS LIVE
NATION AND TICKETMASTER. THEY
HAVE 75 TO 80% OF THAT MARKET.
SO WITH ALL DUE RESPECT THESE
CROCODILE TEARS FOR THE
SECONDARY MARKET. UM THEY'RE
THEY'RE THE DOMINANT PLAYER IN
THAT MARKET. THEY CONTROL THAT
MARKET IN MANY CASES. WE JUST
HAD THIS IS FURTHER EVIDENCE
THAT WE DON'T BELIEVE THIS IS
NECESSARILY A SPORTS ISSUE. NOT
THAT WE'RE SEPARATING SPORTS AND
ENTERTAINMENT. BUT I JUST WENT
ONLINE TO GO PARTICIPATE KIT TO
A BASEBALL GAME BOTH ON THE
PRIMARY AND SECONDARY. IT TOOK
ME TWO CLICKS ON THE PRIMARY
THROUGH A TICKETMASTER WEBSITE
ON A SECONDARY SITE TO BE NAMED
LATER. I'M STILL SEVEN CLICKS IN
AND HAVEN'T GOT A TICKET YET,
BUT FOR SPORTING EVENTS, MOST OF
THEM ARE SEASON TICKET HOLDERS.
THANK YOU ANY OTHER QUESTIONS
FROM THE COMMITTEE? COMMENTS I
WILL MAKE SOME COMMENTS AS A
CHAIR AS, UH, ANY OF ANYBODY WHO
IS WATCHING THIS HEARING OR
SITTING HERE CAN SEE COMPELLING
REASONS ON BOTH SIDES TO NOT
ONLY LISTEN BUT TO, UH WANT TO
GET IN A BETTER PLACE. WE WOULD
HAVE BEEN IN MANY COMMITTEES IN
THE LAST FEW DAYS AND PART OF
THE CONVERSATION AT THIS STAGE
OF COMMITTEES IS REALLY TO TRY
TO A SHUFFLE OUT WHAT WE CAN I
APPRECIATE THE AUTHOR, UH,
AUTHORS BEING WILLING TO WORK
WITH THE OPPOSITION. I THINK, AS
IT'S BEEN NOTED, THERE'S STILL
MORE WORK TO DO, AND WE HOPE
THAT THAT WORK CAN BE DONE, BUT
CERTAINLY VERY DIFFERENT
TESTIMONIES ON BOTH SIDES
WHETHER YOU OPPOSE OR SUPPORT,
WHICH DOES MAKE IT DIFFICULT
VOTE FOR OUR COMMITTEE MEMBERS.
BUT I AM SUPPORTING THIS, UH, TO
MOVE FORWARD WITH THE CAVEAT
THAT YOU WILL CONTINUE THESE
CONVERSATIONS TO GET INTO A
BETTER PLACE, AS NOTED, UH AND I
KNOW THAT YOU'LL BE MOVING THIS
BILL DIRECTLY TO PRIVACY THIS
AFTERNOON, SO VERY SHORT
TIMELINE. WE MOVED TO A DO PASS
TO THE ASSEMBLY COMMITTEE ON
PRIVACY AND CONSUMER CONSUMER
PROTECTION. WE'LL GO AHEAD AND
CALL THE ROLL. QUIRK-SILVA. AYE.
WALLACE. MIKE FONG. FRIEDMAN.
HEART. LUCKY VOTING. VALENCIA.
I'M SORRY, SIR. THAT BILL IS OUT
. THANK YOU. FOR THOSE
ATTENDING. THAT VOTE IS 5 TO 1
AND WE WILL MOVE FORWARD WITH
FILE ITEM TO A B 8 12. BURNER.
SUDDENLY MEMBER BURNER. HOUSING
DEVELOPMENT APPROVALS. RECEIVING
AFFORDABLE UNITS AND CULTURAL
DISTRICTS FOR ART ARTISTS
WELCOME GOOD MORNING, MADAM
CHAIR AND MEMBERS. MAYBE 8 12
WOULD ALLOW CITY COUNTY OR CITY
AND COUNTY TO SET ASIDE UP TO
10. OF ITS VERY LOW, LOW OR
MODERATE INCOME DEED, RESTRICTED
HOUSING WITHIN A STATE OR
LOCALLY DESIGNATED CULTURAL
DISTRICT FOR ARTISTS. ARTISTS
ARE THE LIFEBLOOD OF OUR
CULTURAL COMMUNITIES AND HELP
PRESERVE THE CULTURAL FOOTPRINT
OF THOSE REGIONS LAST FOLLOW AS
CHAIR OF THIS COMMITTEE, UM, THE
CHAIR OF JOINT ARTS AND I TOWARD
A NUMBER OF CULTURAL DISTRICTS
THROUGHOUT THE STATE, AND THEY
ALL SAID THE SAME THING. THEY'RE
ALL ON SOME VERSION OF
DISPLACEMENTS OF THE ARTISTS
THAT THE CULTURAL DISTRICT
CREATED. AND THIS IS A YOU KNOW,
ONE OF THE REASONS THIS IS VERY
SPECIFIC TO CULTURAL ARTS
DISTRICTS. WE SET THEM UP. WE
SAY YOU'RE WONDERFUL. WE
PRESERVE THE CULTURE OF THAT
AREA AND THEN JUST BY THE FACT
THAT THEIR CULTURAL ARTS
DISTRICT WE BEGIN THE PROCESS OF
GENTRIFICATION, AND WE THEN
PRICE OUT IN HOUSING THE ARTISTS
THAT MADE THAT CULTURAL DISTRICT
POSSIBLE AND SO IT DOESN'T
MATTER IF YOU'RE NEVADA CITY IN
GRASS VALLEY OR YOUR TRUCKEE OR
YOUR SAN FRANCISCO HAS ALREADY
BEEN GENTRIFIED. OR YOUR SAN
PEDRO. THAT'S MAYBE FIVE YEARS
OUT OR YOUR BARRIO LOGAN, WHICH
IS RIGHT ON THE VERGE. THEY'RE
THEY'RE EXPERIENCING IT AS WE
SPEAK. UM EACH ONE OF THESE
CULTURAL ARTS DISTRICTS ARE
EXPERIENCING THIS UM AND MANY
CITIES AND COUNTIES THINK THEY
DON'T HAVE THE AUTHORITY TO SET
ASIDE DEED RESTRICTED HOUSING
FOR ARTISTS AND CULTURAL
DISTRICTS. A B A 12 WOULD
PROVIDE LOCAL GOVERNMENTS WITH
THE FLEXIBILITY NECESSARY TO SET
ASIDE AFFORDABLE UNITS FOR LOW
INCOME ARTISTS TO HELP PREVENT
FURTHER DISPLACEMENT OF ARTISTS
THAT IS OCCURRING IN CULTURAL
DISTRICTS ACROSS THE STATE.
APRIL'S ARTS, CULTURAL
CREATIVITY MONTH AND IT'S
IMPERATIVE THAT WE SUPPORT AND
PRESERVE THE CULTURE. THAT IS
HISTORICALLY BEEN PRESENT WITHIN
OUR CULTURAL COMMUNITIES. I
RESPECTFULLY ASK FOR YOUR VOTE
AND WITH ME HERE TODAY IS
PRISCILLA QUIROZ ON BEHALF OF
CALIFORNIA ARTS ADVOCATES THE
SPONSORS OF THE FILM. THANK YOU.
GOOD MORNING CHAIR MEMBERS,
PRISCILLA IQUITOS ON BEHALF OF
CALIFORNIA ARTS ADVOCATES, UH
THERE IS A CLEAR NEED TO
INCREASE ACCESS TO AFFORDABLE
HOUSING FOR ARTISTS, CULTURAL
WORKERS AND ARTS ORGANIZATIONS
WITHIN CULTURAL COMMUNITIES.
NATIONWIDE ARTISTS ARE RENT
BURDEN IN 80% OF CULTURAL
DISTRICTS, PUSHING OUT THE VERY
CORE OF CULTURAL DISTRICTS
ITSELF. A SURVEY IN THE CITY OF
BERKLEY AND 2021 HIGHLIGHT THE
NEED FOR AFFORDABLE HOUSING
AMONG ARTISTS AND CULTURAL
WORKERS WHO ARE EXPERIENCING
DISPLACEMENT PRESSURES DO THE
INCREASING HOUSING PRICES AND
CULTURAL COMMUNITIES. THEIR
SURVEY REVEALED THAT THERE'S
WHILE THERE'S WORKING ARTISTS
AND CULTURAL WORKERS ARE HIGHLY
EDUCATED 60% HAVE LOW VERY LOW
OR EXTREMELY LOW INCOME. 77% OF
RESPONDENTS INDICATED THAT THEY
ARE RENT BURDEN WITH 85. I WAS
68% HAVING DIFFERENT SOURCES OF
PART TIME WORK TO MAKE ENDS MEET
WHILE LOW INCOME IS INCOME IS
PREVALENT ACROSS THE GROUP OF
ARTISTS AND CULTURAL WORKERS.
THE RATE IS DISPASSIONATELY
HIGHER WITH BIPAC RESPONDENTS.
IN FACT, IN THE SAME YEAR L. A
SURVEY FOUND THAT 27% OF
RESPONDENTS WHO IDENTIFIED AS BI
PACK ARE MORE LIKELY TO
EXPERIENCE FOOD, INSECURITY,
HOUSING INSTABILITY AND
INCREASED DEBT COMPARED TO WHITE
RESPONDENTS. CULTURAL DISTRICTS
ARE TRIED AND TRUE WAY OF
INCREASING ECONOMIC BY TILL ITTY
WHILE STRENGTHENING THE CULTURAL
FABRIC OF COMMUNITIES. THEY
PROMOTE CULTURE EQUITY, BOOST
TOURISM DOLLARS AND ENCOURAGE
MORE LOCAL VISITORS, INCREASE
PROPERTY VALUES AND GENERATE
MORE MONEY FOR THE REGION AND
STATE, THE CULTURE DISTRICT IN
NEVADA COUNTY, CALIFORNIA, A
RURAL COMMUNITY GENERATES 46.9
MILLION IN TOTAL ECONOMIC
ACTIVITY PER YEAR. 25.7 MILLION
BY ORGANIZATIONS IN 21.2 MILLION
IN EVENT RELATED SPENDING BY
THEIR AUDIENCES. IN SUPPORT 869
FULL TIME EQUIVALENT JOBS
GENERATES 20.9 MILLION IN
HOUSEHOLD INCOME TO LOCAL
RESIDENTS AND DELIVERS 5.1
MILLION IN LOCAL AND STATE
GOVERNMENT REVENUE. IT'S CRUCIAL
THAT WE KEEP THE PEOPLE WHO
CREATE CULTURAL ARTS IN THEM.
SERVICE ACROSS THE STATE
INDICATE THAT HUGE DEMAND FOR
AFFORDABLE HOUSING FOR ARTISTS
KEEPING NEIGHBORHOODS AFFORDABLE
TO THE CULTURAL BARRIERS IN OUR
LOCAL COMMUNITIES AND AVOIDING
THE DISPLACEMENT FOR ARTISTS
PROTECTS OUR CULTURE HERITAGE
AND CREATES OUR BEST ECONOMIC
ZONES WITHOUT THEM, THE SPECIAL
CULTURAL OF THE PLACE LEAVES
WITH THEM. CULTURAL DISTRICT IS
NO LONGER A CULTURAL DISTRICT IF
THOSE PEOPLE WHO MADE IT CANNOT
AFFORD TO LIVE AND WORK THERE,
THEMSELVES. A B 8 12 WOULD
REQUIRE THAT 10% OF AFFORDABLE
HOUSING IN THE CULTURAL DISTRICT
IS RESERVED FOR ARTISTS. WHILE
THIS IS NO WAY MATCHES THE NEED
. IT'S A CRITICAL STEP IN THE
RIGHT DIRECTION AND NO COST TO
TAXPAYERS AND EASY REMEDY FOR
BIG PROBLEMS. SO WE URGE YOUR
SUPPORT ON THIS MEASURE. THANK
YOU. THANK YOU. DO WE HAVE ANY
OTHERS IN SUPPORT? THANK YOU, MR
CHAIR, UH, EDUARDO MARTINEZ ON
BEHALF OF ACTORS EQUITY, WHERE A
UNION OF THEATER ACTORS AND
STAGE MANAGERS NATIONWIDE PROUD
TO BE HERE IN SUPPORT. AND DO WE
HAVE ANY WITNESSES AND
OPPOSITION? BLUEBELL MOTION AND
A SECOND, ANY TESTIMONY AND
OPPOSITION SEEING NO ONE. BRING
IT BACK TO THE COMMITTEE ANY
QUESTIONS OR COMMENTS? I JUST
WOULD ASK, AS THIS ALREADY HAS
GONE THROUGH HOUSING THAT I SIT
ON. IF YOU CAN EXPLAIN, AND YOU
DID A GREAT JOB IN THE HOUSING
OF HOW THIS APPLIES, UH. TO
SOMEBODY WHO WOULD ACTUALLY
ATTAIN A UNIT THE PART THAT YOU
WERE DISCUSSING ABOUT VERIFYING
? YES YES. THANK YOU. UM SO EACH
CITY WILL HAVE TO HAVE SO ONE
DOES DOESN'T AUTOMATICALLY GIVE
A BLANKET. UH ALLOWANCE CITY
WOULD HAVE TO PASS AN ORDINANCE
LOCALLY BECAUSE WHAT WE WANT IS
WE WANT TO KEEP THE LOW INCOME
ARTISTS THEY'RE LOW AND MODERATE
INCOME ARTISTS THERE. SO THERE'S
A YEARLY BOTH WORK, VERIFICATION
PROCESS AND YEARLY INCOME
VERIFICATION PROCESS BECAUSE
MANY OF ARTISTS WILL, HOPEFULLY
THROUGH OUR CULTURAL ARTS
DISTRICT GROW AND SUCCEED. WE
WANT THEM TO GRADUATE OUT OF
THIS HOUSING TO MAKE SPACE FOR
THE NEXT GENERATION OF LOW
INCOME ARTISTS. AND YOU KNOW, I
HAVE TO SAY MY DAUGHTER. YOU
GUYS ALL KNOW MY DAUGHTER MAYA.
MAYA CAME TO ME WHEN SHE WAS
FIVE, AND SHE WAS LIKE, I WANT
TO BE AN ARTIST, AND I SAID,
DON'T DO THAT. YOU WON'T MAKE
ANY MONEY AND THIS IS A WAY TO
KEEP PEOPLE WORKING IN THIS
PROFESSION AND GIVING THEM A
PLACE IN THEIR CULTURAL,
ARTISTIC AND STATE OR LOCAL
CULTURAL ARTS DISTRICT AS WELL.
SO THERE'S A YEARLY INCOME
VERIFICATION PROCESS AND ORDER
TO REALLY KEEP KEEP THE VIOLENCE
SEE OF THESE DISTRICTS GOING
IT'S A MILLION MEMBER FRIEDMAN.
I WANT TO THANK THE AUTHOR FOR
BRINGING THIS BOTH FORWARD. WE
ACTUALLY DID THIS IN GLENDALE.
WHEN I WAS ON THE CITY COUNCIL
WITH ONE OF OUR AFFORDABLE
HOUSING PROJECTS. WE MADE IT
TARGETED TO ARTISTS DEFINED VERY
BROADLY, INCLUDING THINGS LIKE
CULINARY ARTS, ETCETERA. AND THE
COMPANY THAT BUILT THE HOUSING
PROJECT HAD EXPERIENCE WITH THIS
TYPE OF SPECIALIZED HOUSING AND
UNDERSTOOD HOW TO VET PEOPLE.
EVEN IF THEY WERE SENIORS, THEY
STILL COULD BE ARTISTS. THEY
THEY HAD TO SUBMIT SORT OF
SAMPLES OR EXPLANATIONS OR SHOW
THAT THEY HAD SHOWN IN GALLERIES
AND IT WE HAD NO TROUBLE FILLING
. WHAT WAS A VERY LARGE
BUILDING. ACTUALLY SEVERAL 100
UNITS FROM PEOPLE WHO APPLIED
FROM ALL OVER LOS ANGELES UM THE
PARTICULAR PROJECT WAS CONNECTED
WITH R Y M C A. AND WE THOUGHT
THERE WAS A BENEFIT SINCE WE
WERE ATTACHING AFFORDABLE
HOUSING TO A VERY LARGE Y M C. A
TO HAVE A COMMUNITY OF ARTISTS
THAT COULD WORKSHOP WITH ARE
MOSTLY LOW INCOME. UM YOUNG
PEOPLE WHO USE THE FACILITY, AND
MANY OF THE ARTISTS DID OFFER TO
DO CLASSES FOR YOU KNOW FOR FREE
FOR THE Y. THERE'S A GALLERY IN
THE BUILDING SO THAT PEOPLE IN
THE COMMUNITY CAN ENTER THIS
AFFORDABLE HOUSING PROJECT. AND
SEE WORK THAT'S ON DISPLAY FROM
THE ARTISTS. SO I'M NOT SAYING
THAT IT'S ALWAYS THE EASIEST
THING IN THE WORLD TO DO. BUT
THERE ARE DEFINITELY BENEFITS
THAT CITIES MIGHT SEE FROM
COMBINING THEIR LOW INCOME
PROJECT WITH ARTIST HOUSING. SO
I THINK THAT THIS, YOU KNOW,
CERTAINLY. UM UH, DOES HELP PUSH
BACK ON ONE OF THE REAL
CONUNDRUMS OF CULTURAL
DISTRICTS, WHICH IS WHEN THEY
BECOME POPULAR. THEY GENTRIFY
JUST LIKE A LOT OF DOWNTOWN'S.
THIS IS A WAY TO ANSWER THAT.
AND TO KEEP THAT SPIRIT THAT
ARTISTIC SPIRIT ALIVE IN THOSE
COMMUNITIES, SO THANKS FOR
BRINGING THIS FORWARD, I'M VERY
PLEASED TO SUPPORT AND, UM UH,
GOOD LUCK WITH THE BELT. UH TO
SUPPORT THIS BILL. I APPRECIATE
THE VERIFYING AS WE KNOW, WE
HAVE VERY LIMITED. UH, WHEN WE
CAN HAVE AFFORDABLE UNITS, AND
WE WANT TO MAKE SURE UH, THERE
IS THE RIGHT FIT FOR THE RIGHT
UNIT. BUT THIS BILL IS, UH, DO
PASS TO THE WRONG COMMITTEE.
THIS IS. THE MOTION IS DUE PASS
TO SOME TO ASSEMBLY THIRD
READING AND WE HAVE A MOTION IN
A SECOND. MADAM SECRETARY.
PLEASE CALL THE ROLL. QUIRK
SILVA I WALLACE. MIKE FONG.
FRIEDMAN. HEART. LACKEY.
VALENCIA. THAT BILL IT OUT, 51.
THANK YOU. MEMBERS WERE GOING TO
DO THE CONSENT AGENDA. THE
COMMITTEE HAS THREE ITEMS ON ITS
AGENDA THAT ARE PROPOSED FOR
CONSENT. A B 15 OR SORRY 12 58
BURNER ARTS COUNCIL DO PASS TO
THE ASSEMBLY COMMITTEE ON
APPROPRIATIONS. A CR 60 HOLDEN,
SAN DIEGO STATE UNIVERSITY,
AZTECS MARCH MADNESS. TO BE
ADOPTED IN A CR 62 QUIRK-SILVA,
CALIFORNIA ATTRACTIONS AND PARKS
DAY TO BE ADOPTED. WE HAVE
EMOTION. MOTION BY THE SECOND BY
OKAY? WE HAVE A MOTION AND A
SECOND. PLEASE CALL THE ROLL.
QUIRK-SILVA I WALLACE, MIKE FONG
FRIEDMAN. HEART. BLACKY,
VALENCIA. ALL RIGHT. THAT
COMPLETES OUR AGENDA TODAY A AND
WE HAVE KNOWN OTHER BUSINESS.
THE CONSENTED AGENDA IS ADOPTED
WHAT THEY VOTE OF 70. I PUT A
LOT OF NOTES THERE. GO PEOPLE
OFF, RIGHT? WHAT WAS THAT?