5681016 Consumer and Regulatory Affairs, Department of - Notice of Emergency and Proposed Rulemaking - 24 DCMR 5 (Ticket Sales)  

  • DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

     

    NOTICE OF EMERGENCY AND PROPOSED RULEMAKING

     

    The Director of the Department of Consumer and Regulatory Affairs (DCRA), pursuant to the authority under Mayor-Commissioner Regulation No. 74-39, effective December 13, 1974 (21 DCR 1285), as amended by the Vendors Regulation Amendments Act of 1978, effective June 30, 1978 (D.C. Law 2-82; 24 DCR 9293), Reorganization Plan No. 1 of 1986, effective August 21, 1986, the Vending Regulation Act of 2009, effective October 22, 2009 (D.C. Law 18-71; 56 DCR 6619), and Mayor’s Order 2010-91, dated May 27, 2010; Sections 101(b), 2002(b), and 2 of the Omnibus Regulatory Reform Amendment Act of 1998, effective April 29, 1998 (D.C. Law 12-86; D.C. Official Code §§ 47-2851.04(c)(1), 47-2851.05(d), and 47-2851.12 (2005 Repl.; 2012 Supp.)); Sections 104 and 105 of the Department of Consumer and Regulatory Affairs Civil Infraction Act of 1985, effective October 5, 1985 (D.C. Law 6-42; D.C. Official Code §§ 2-1801.04 and 2-1801.05 (2012 Repl.)); and Mayor’s Order 86-38, dated March 4, 1986, hereby gives notice of the intent to adopt, on an emergency basis, the following amendments to Chapter 5 (Vendors) of Title 24 (Public Space and Safety) of the District of Columbia Municipal Regulations (DCMR).

     

    This emergency rulemaking is necessary to address the continued sale of secondhand tickets from public space.  The rulemaking establishes requirements for the sale of secondhand tickets from public space and the penalties for violation of the requirements. The rulemaking also amends the vending regulations in order to authorize the DCRA Director to revoke, suspend, or deny an application for the issuance of or renewal of a Vending Business License due to a violation of the secondhand ticket regulations.  In addition, the rulemaking authorizes the DCRA Director to summarily suspend and seize a Vending Site Permit, without prior notice to the vendor or an opportunity to be heard. 

     

    This emergency rulemaking was adopted on September 4, 2015.  This emergency rulemaking will remain in effect for up to one hundred and twenty (120) days from the date of effectiveness, and will expire on January 2, 2016.  The Director also gives notice of the intent to take final rulemaking action to adopt these rules in not less than thirty (30) days from the date of publication of this notice in the D.C. Register, or upon approval of this rulemaking by the Council of the District of Columbia, whichever occurs later. 

     

    Chapter 5, VENDORS, of Title 24 DCMR, PUBLIC SPACE AND SAFETY, is amended as follows:

     

    Section 507, VENDING BUSINESS LICENSE: DENIAL, SUSPENSION, REVOCATION AND SEIZURE, is amended as follows:

     

    Subsection 507.1 is amended to read as follows:

     

    507.1               The DCRA Director may revoke or suspend a Vending Business License, or deny an application for the issuance or renewal of a Vending Business License, for any of the following:

     

    (a)                Fraud, misrepresentation, or false statements contained in the license application;
    (b)               Fraud, misrepresentation, or false statements made in connection with the selling of any product, service, or merchandise, as determined by the DCRA Director, or the misrepresentation or adulteration of food, as determined by the DOH Director;
    (c)                Violation of any District law or regulation governing the operation of the vending business, including, but not limited to:

    (1)               The possession or sale of counterfeit merchandise; or

    (2)               The offering for sale of illegal goods, substances, or services;

    (d)               The vendor is vending at a location other than the vendor’s assigned Vending Location;
    (e)                Violations of the Clean Hands Certification requirements;
    (f)                Fraud committed against the District government, such as failure to pay required sales and use taxes, or attempting to transfer a Vending Business License, Vending Site Permit, or a Mobile Roadway Vending Site Permit to another person in violation of §§ 502.5, 510.4, and 514.3, respectively;
    (g)               The vendor is found to have committed the same violation of the following sections of this chapter six (6) or more times in a continuous twelve (12) month period:

    (1)               §§ 544 through 554;

    (2)               §§ 556 through 568; or

    (3)               §571;

    (h)               The vendor is found to have violated § 555 of this chapter; or

                            (i)         The vendor has violated §§ 573.9 or 573.15.

     

    Section 573, SOLICITING: GENERAL PROVISIONS, is amended as follows:

     

    Subsection 573.1 is amended to read as follows:

     

    573.1               No person shall solicit any person from a street, sidewalk, or other public space, or in any way interfere with the free passage of any person along any street, sidewalk, or other public space, for the purpose of inducing that person to do any of the following:

     

                            (a)        Buy any merchandise, food, or service;

     

                            (b)        Patronize any hotel, motel, inn, or boarding house;

     

                            (c)        Patronize any place of entertainment or amusement; or

     

    (d)       Sell tickets to an event at an entertainment venue that is located within one-half mile of the seller.

     

    A new Section 573A is added to read as follows:

     

    573A               VENDING: TICKET SALES

     

    573A.1            In consultation with the Metropolitan Police Department and after consultation with any associated entertainment venue, the DCRA Director may establish a Ticket Resale Zone (TRZ) on a sidewalk, street, or other public space within which the sale of tickets may be authorized by the DCRA Director after approval from DDOT pursuant to § 501.2(b).

     

    573A.2            The Director of DCRA shall establish a TRZ by publishing a notice in the D.C. Register setting forth the location of the TRZ.  The notice shall be published at least seven (7) days before the zone will be used for ticket sales.

     

    573A.3            The Director of DCRA may rescind the designation of an area as a TRZ by publishing a notice of rescission in the D.C. Register; provided, that the DDOT Director may rescind the designation of an area as a TRZ before publication of such a notice by posting notices of rescission at the TRZ.

     

    573A.4            DCRA may issue Vending Site Permits authorizing persons holding Class D Vending Licenses for ticket sales to sell tickets in a TRZ according to the provisions of this chapter.

     

    573A.5            A Vending Site Permit authorizing the sale of tickets from a TRZ shall specify the:

    (a)        Date(s) on which ticket sales are authorized;

     

    (b)        Time(s) during which ticket sales are authorized; and

     

    (c)        Ticket Resale Zone at which ticket sales are authorized.

     

    573A.6            In order to obtain a Vending Site Permit, a person holding a Class D Vending License for ticket sales shall, by the fifteenth (15th) day of any calendar month, submit, on a form prescribed by the Director of DCRA, a request for any dates that the person desires Vending Site Permits to sell tickets in a TRZ, for the following month.

     

    573A.7            If requests from licensees for Vending Site Permits exceed the number of available permits for a TRZ for a particular date and time, DCRA shall assign the available spaces through a lottery.  DCRA shall publish the results of the lottery on the DCRA website.

     

    573A.8            The venue associated with a TRZ shall, upon request, be granted one (1) Vending Site Permit for any requested event if the request is submitted by the fifteenth (15th) day of the previous calendar month or at the discretion of DCRA.

     

    573A.9            A person may sell or offer to sell tickets from a TRZ if:

     

    (a)        The person holds a Class D Vending License for ticket sales or is the venue associated with the TRZ;

     

    (b)        The person conspicuously displays his or her Vending Site Permit and Class D Vending License for ticket sales or an identification card provided to a venue by DCRA;

     

    (c)        The person has been issued a Vending Site Permit by DCRA authorizing him or her to sell tickets from the TRZ;

     

    (d)       The person is buying, selling, or offering to buy or sell tickets pursuant to the terms of the Vending Site Permit; and

     

    (e)        The person is buying, selling, or offering to buy or sell tickets for an event scheduled to begin within six hours of the time of sale.

     

    573A.10          To conduct a sale in a TRZ, a ticket sale licensee must, in addition to operating in compliance with § 573A.9, provide a receipt to the non-licensee on a form prescribed by the Director of DCRA.  If both the buyer and seller are licensees, each shall provide a receipt to the other party.

     

    573A.11          An unlicensed person may sell tickets to a license holder who is operating in a TRZ in accordance with this chapter.

     

    573A.12          Subject to the hearing provisions of § 573.18, the Director of DCRA may summarily suspend the Vending Site Permit of a person who violates §§ 573.9 or 573.15, and may further determine, in his or her reasonable discretion after providing notice to the person and an opportunity to be heard, that the person whose Vending Site Permit has been suspended shall for up to two (2) years be ineligible for a Vending Site Permit or any similar successor license or permit.

     

    573A.13          A licensee may appeal a suspension of a Vending Site Permit pursuant to § 573.14 by:

     

    (a)        Requesting a review from the Director of DCRA or his or her designate, which shall be provided within three (3) business days of receipt of a hearing request.  The licensee may appeal any decision reached by DCRA in the review to the Office of Administrative Hearings; or

     

    (b)        Requesting a hearing with the Office of Administrative Hearings, which shall be provided within three (3) business days of receipt of a hearing request.

     

     

    All persons desiring to comment on these proposed regulations should submit comments in writing to Matt Orlins, Director of Legislative and Public Affairs, Department of Consumer and Regulatory Affairs, 1100 4th St. SW, 5th Floor, Washington, D.C. 20024, or via e-mail at matt.orlins@dc.gov, not later than thirty (30) days after publication of this notice in the D.C. Register.  Copies of the proposed rules can be obtained from the address listed above.  A copy fee of one dollar ($1.00) will be charged for each copy of the proposed rulemaking requested. Free copies are available on the DCRA website at http://dcra.dc.gov by going to the “DCRA News” link and then clicking on the “Rulemaking” tab.