SB1820 - Relating to certain disclosures and other requirements and prohibited conduct relating to the sale of tickets for concerts and other events.

  89R6172 SCR-F     By: Johnson S.B. No. 1820       A BILL TO BE ENTITLED   AN ACT   relating to certain disclosures and other requirements and   prohibited conduct relating to the sale of tickets for concerts and   other events.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle B, Title 10, Business & Commerce Code,   is amended by adding Chapter 330 to read as follows:   CHAPTER 330. SALE OF EVENT TICKETS           Sec. 330.001.  DEFINITIONS. In this chapter:                 (1)     "Base ticket price" means the purchase price of a   ticket for an event. The term does not include an event ticket fee   or any taxes.                 (2)     "Charitable organization" has the meaning   assigned by Section 84.003, Civil Practice and Remedies Code.                 (3)     "Charitable purpose" has the meaning assigned by   Section 163.003, Property Code.                 (4)     "Event" means a concert, theatrical performance,   sporting event, exhibition, show, or similar scheduled activity   that:                       (A)  is open to the public;                       (B)  is held in a public or private venue; and                       (C)     requires payment of an admission fee to   attend the activity.                 (5)     "Event ticket fee" means a fee or charge added to   the base ticket price to obtain an event ticket from either a   primary ticket seller or secondary market ticket seller. The term:                       (A)  includes:                             (i)  a service fee or charge;                             (ii)  an order processing fee;                             (iii)  a delivery fee; and                             (iv)  a facility charge fee; and                       (B)  does not include:                             (i)  a tax;                             (ii)     a reasonable postage or carrier charge   incurred to ship nonelectronic tickets based on the location or   delivery method selected by the purchaser; or                             (iii)     a charge or fee for an optional   product or service associated with the event.                 (6)     "Nonprofit organization" has the meaning assigned   by Section 541.001.                 (7)     "Optional product or service" means a product or   service that a person is not required to purchase to use or take   possession of an event ticket.                 (8)     "Primary sale" means the initial sale of a ticket   for an event.                 (9)     "Primary ticket seller" means any of the following   persons that are engaged in the primary sale of tickets for an   event:                       (A)  an owner or operator of a venue;                       (B)  a manager or provider of an event;                       (C)  a provider of ticketing services; or                       (D)     an agent of a person described by Paragraph   (A), (B), or (C).                 (10)     "Resale" or "reselling" means the sale of an   event ticket by a primary ticket seller occurring any time after the   primary sale of the ticket.                 (11)     "Secondary market ticket exchange" or "exchange"   means a person that operates a platform or exchange for   advertising, listing, or selling resale tickets on the person's own   behalf or on behalf of a vendor or secondary market ticket seller.   The term includes a primary ticket seller offering tickets for   resale.                 (12)     "Secondary market ticket seller" means an entity   engaged in the business of reselling event tickets to the public.                 (13)     "Total ticket price," with respect to a ticket   for an event, means the total cost of the ticket. The term includes   the base ticket price and an event ticket fee.                 (14)     "Venue" means a stadium, arena, theater, concert   hall, or other place used for events.           Sec.   330.002.     APPLICABILITY OF CHAPTER. This chapter   applies only to the sale, including resale, of a ticket for an event   held or to be held in a venue in this state with a seating or   attendance capacity of more than 200 people.           Sec.   330.003.     TRANSPARENCY OF MARKETING, DISTRIBUTION, AND   PRICING OF TICKETS. (a) Except as provided by Subsection (b), a   primary ticket seller, secondary market ticket seller, or secondary   market ticket exchange may not offer for sale an event ticket unless   the seller or exchange:                 (1)     clearly and conspicuously discloses to a potential   purchaser the total ticket price from the time the price is first   displayed and continuously throughout the ticket purchasing   process;                 (2)     does not increase the total ticket price from the   time the price is first displayed to a potential purchaser; and                 (3)     if applicable to the seat and venue, identifies   the row number and zone or section of the ticket.           (b)     Subsection (a)(2) does not apply if a potential ticket   purchaser's transaction time expires before making a purchase.           Sec.   330.004.     PRIMARY TICKET SELLER REQUIREMENTS. (a) A   primary ticket seller may not restrict or impair the ability of a   purchaser of an event ticket sold by the seller or by the venue   holding the event from reselling the ticket:                 (1)     independently of the seller or of any secondary   market ticket exchange owned by or affiliated with the seller; or                 (2)     on a secondary market ticket exchange chosen by   the purchaser.           (b)     A primary ticket seller may not require a minimum or   maximum price for the resale of any ticket purchased from the   seller.           (c)     For purposes of this subsection, a sanction includes   denial of admission to an event or denial of rights to or renewal of   bundled series tickets. A primary ticket seller may not sanction or   discriminate against a ticket purchaser for:                 (1)  reselling or gifting a ticket; or                 (2)  purchasing a resold ticket.           (d)     A primary ticket seller shall deliver an event ticket to   a ticket purchaser not later than the seventh day after the date the   purchaser purchases the ticket.           (e)     Subject to the requirements of Subsections (a)-(d),   this section may not be construed to prohibit an operator of a venue   at which an event is held or to be held from maintaining and   enforcing policies regarding access control to, or conduct or   behavior at, the venue. An operator of a venue may revoke or   restrict tickets:                 (1)     for a reason relating to a violation of venue   policies that are available in writing;                 (2)  for the safety of the venue's patrons; or                 (3)     to address misconduct occurring on the venue's   premises.           (f)     An operator of a venue may prohibit the resale of a   ticket initially offered:                 (1)     at no charge and access to which is not contingent   on providing any form of monetary consideration; or                 (2)     by or on behalf of a charitable organization for a   charitable purpose if all the ticket sale proceeds are provided to   the charitable organization.           (g)     Notwithstanding any other provision of this section to   the contrary, any educational institution or nonprofit   organization associated with the educational institution may   establish and enforce prohibitions, restrictions, or conditions on   the resale and transfer of tickets sold or otherwise made available   to the educational institution's or nonprofit organization's   officers, directors, employees, sponsors, or vendors.           Sec.   330.005.     REQUIREMENTS FOR SECONDARY MARKET TICKET   SELLERS AND EXCHANGES. (a) A secondary market ticket seller or   exchange may not sell, or offer or advertise for sale, an event   ticket unless the seller or exchange has actual or constructive   possession of the ticket.           (b)     This section may not be construed to prohibit a   secondary market ticket seller or exchange from offering a service   to a consumer to obtain an event ticket on the consumer's behalf if   the seller or exchange:                 (1)     does not market or list the service as an event   ticket;                 (2)     maintains a clear, distinct, and easily   discernible separation between the service and the direct purchase   of event tickets through an unavoidable visual demarcation that   persists throughout the entire service selection and purchasing   process;                 (3)     clearly and conspicuously discloses to a potential   purchaser that purchase of the service:                       (A)     is not considered the direct purchase of an   event ticket; and                       (B)     does not guarantee the purchaser will receive   an event ticket;                 (4)     if the service is unable to obtain tickets to a   specified event purchased through the service, provides to the   purchaser of the service within a reasonable time:        &#xA0 [Text truncated for display. 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