AB431 - Revises provisions relating to the sale and resale of tickets to certain events. (BDR 52-1075)

A.B. 431 - *AB431* ASSEMBLY BILL NO. 431–ASSEMBLYMEMBERS GURR, COLE; CARTER, DELONG, D’SILVA, EDGEWORTH, GALLANT, HAFEN, HIBBETTS, NGUYEN AND YUREK MARCH 13, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to the sale and resale of tickets to certain events. (BDR 52-1075) FISCAL NOTE: Effect on Local Government: Increases or Newly Provides for Term of Imprisonment in County or City Jail or Detention Facility. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to trade practices; making certain acts relating to the initial sale of tickets to certain events by a primary ticket provider a deceptive trade practice; revising provisions relating to the resale of tickets to certain events; providing penalties; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law prohibits a number of deceptive trade practices relating to the 1 resale of tickets to athletic contests and live entertainment events. (NRS 598.09223, 2 598.397-598.3984) Section 2 of this bill prohibits a primary ticket provider from 3 entering into a contractual agreement to limit a purchaser to reselling a ticket to or 4 through only one reseller or secondary ticket exchange or affiliate of a reseller or 5 secondary ticket exchange. 6 Section 3 of this bill prohibits a primary ticket provider from selling a ticket 7 without first disclosing the total amount to be charged for the ticket, including any 8 fees, and whether any tickets are being held by the rights holder for sale at a later 9 date. 10 Section 4 of this bill prohibits a primary ticket provider, reseller or secondary 11 ticket exchange or any affiliate of a reseller or secondary ticket exchange from 12 holding a ticket purchased in person or remotely for delivery at a later date that is 13 more than 24 hours after the time of purchase. 14 Existing law defines “reseller” as any person who resells a ticket. (NRS 15 598.3976) Section 7 of this bill provides that the term does not include a person 16 who makes an initial purchase of a ticket from a primary ticket provider on behalf 17 of another person. 18 – 2 – - *AB431* Section 5 of this bill provides that an act that violates the provisions of sections 19 2-4 is a deceptive trade practice. 20 Section 6 of this bill applies certain definitions relating to ticket resellers and 21 secondary ticket exchanges to the provisions of sections 2-4. 22 Under existing law, the Attorney General, the Commissioner of Consumer 23 Affairs and the Director of the Department of Business and Industry are authorized 24 to investigate deceptive trade practices and take certain actions to penalize a person 25 who commits a deceptive trade practice, which may include, without limitation, 26 criminal prosecution and the imposition of civil penalties. (NRS 598.0903- 27 598.0999, 598.3983, 598.3984) Existing law also authorizes a person to bring a 28 civil action for a violation of the provisions relating to ticket resellers and 29 secondary ticket exchanges. (NRS 598.3982) Sections 8-10 of this bill apply the 30 existing provisions governing enforcement, civil and criminal penalties and civil 31 actions to the provisions of sections 2-4. 32 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 598 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2, 3 and 4 of this act. 2 Sec. 2. A primary ticket provider shall not enter into a 3 contractual agreement to limit a purchaser to reselling a ticket to 4 or through only one reseller or secondary ticket exchange or any 5 affiliate of a reseller or secondary ticket exchange. 6 Sec. 3. A primary ticket provider shall not sell a ticket, in 7 person or remotely, without first disclosing to the purchaser: 8 1. The total amount that the purchaser will be charged for the 9 ticket, including, without limitation, any fees which represent a 10 portion of the total amount to be charged; and 11 2. Whether any tickets are being held by the rights holder for 12 sale at a later date. 13 Sec. 4. A primary ticket provider, reseller or secondary ticket 14 exchange or any affiliate of a reseller or secondary ticket 15 exchange shall not hold a ticket purchased in person or remotely 16 for delivery at a later date that is more than 24 hours after the time 17 of purchase. 18 Sec. 5. NRS 598.09223 is hereby amended to read as follows: 19 598.09223 A person engages in a “deceptive trade practice” 20 when, in the course of his or her business or occupation, he or she 21 knowingly violates a provision of NRS 598.397 to 598.3984, 22 inclusive [.] , and sections 2, 3 and 4 of this act. 23 Sec. 6. NRS 598.397 is hereby amended to read as follows: 24 598.397 As used in NRS 598.397 to 598.3984, inclusive, and 25 sections 2, 3 and 4 of this act, unless the context otherwise requires, 26 the words and terms defined in NRS 598.3971 to 598.3977, 27 inclusive, have the meanings ascribed to them in those sections. 28 – 3 – - *AB431* Sec. 7. NRS 598.3976 is hereby amended to read as follows: 1 598.3976 “Reseller” means any person who resells a ticket. 2 The term does not include a person who makes an initial purchase 3 of a ticket from a primary ticket provider on behalf of another 4 person. 5 Sec. 8. NRS 598.3982 is hereby amended to read as follows: 6 598.3982 1. A person injured by a violation of any provision 7 of NRS 598.397 to 598.3984, inclusive, and sections 2, 3 and 4 of 8 this act may bring a civil action against a reseller, a secondary ticket 9 exchange or any affiliate of a reseller or secondary ticket exchange 10 who committed the violation in a district court in any county: 11 (a) In which the cause therefor accrued; 12 (b) In which the defendant resides or may be found; 13 (c) In which the plaintiff resides; or 14 (d) In which an athletic contest or live entertainment event to 15 which the ticket pertains occurred or will occur, if the violation 16 relates to the sale, purchase or advertisement of a ticket. 17 2. If the person bringing the action is the prevailing party, the 18 court shall award that person: 19 (a) Declaratory and injunctive relief. 20 (b) For the first violation, $1,000 or actual damages, whichever 21 is greater. 22 (c) For the second violation, $2,500, treble the amount of actual 23 damages and reasonable attorney’s fees and costs, if any. 24 (d) For the third and all subsequent violations, $5,000, treble the 25 amount of actual damages, reasonable attorney’s fees and costs, if 26 any, and punitive damages, which are subject to the provisions of 27 NRS 42.005. 28 3. An action may not be brought pursuant to this section 29 against a natural person employed by a reseller, a secondary ticket 30 exchange or any affiliate of a reseller or secondary ticket exchange. 31 Sec. 9. NRS 598.3983 is hereby amended to read as follows: 32 598.3983 Unless a greater penalty is provided in NRS 33 598.0999 or 598.3984, a person who knowingly violates the 34 provisions of NRS 598.397 to 598.3984, inclusive, and sections 2, 3 35 and 4 of this act is guilty of a misdemeanor. 36 Sec. 10. NRS 598.3984 is hereby amended to read as follows: 37 598.3984 1. A person who willfully and knowingly violates 38 the provisions of NRS 598.397 to 598.3984, inclusive, and sections 39 2, 3 and 4 of this act relating to the sale of a ticket to an 40 entertainment facility which is operated by a governmental entity or 41 a public-private partnership is guilty of a gross misdemeanor. 42 2. As used in this section: 43 (a) “Governmental entity” means: 44 (1) The government of this State; 45 – 4 – - *AB431* (2) An agency of the government of this State; 1 (3) A political subdivision of this State; and 2 (4) An agency of a political subdivision of this State. 3 (b) “Public-private partnership” means a contract entered into by 4 a person and a governmental entity for the support of an 5 entertainment facility. 6 H