By:  Madla                                             S.B. No. 463
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the regulation of certain persons who resell tickets;
    1-2  providing a penalty.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  DEFINITIONS.  In this Act:
    1-5              (1)  "Commission" means the Texas   Commission of
    1-6  Licensing and Regulation.
    1-7              (2)  "Commissioner" means the commissioner of licensing
    1-8  and regulation.
    1-9              (3)  "Department" means the Texas Department of
   1-10  Licensing and Regulation.
   1-11              (4)  "Event" means an event of public entertainment or
   1-12  amusement, including athletic contests.
   1-13              (5)  "Event sponsor" means an owner, lessee, operator,
   1-14  promoter, or manager of an event or the site of an event.
   1-15              (6)  "Person" means an individual, corporation, or
   1-16  association.
   1-17              (7)  "Resell" means to sell a ticket to an event after
   1-18  it has been purchased from the event sponsor or from a person
   1-19  authorized by the event sponsor to sell the ticket.
   1-20              (8)  "Ticket reseller" means a person who resells or
   1-21  offers to resell a ticket for admission to an event to be held in
   1-22  this state for a dollar value that exceeds the retail price
   1-23  displayed on the ticket.
    2-1        SECTION 2.  LICENSE REQUIRED.  A person may not operate as a
    2-2  ticket reseller in this state unless the person is licensed under
    2-3  this Act.
    2-4        SECTION 3.  DUTIES OF DEPARTMENT AND COMMISSIONER.  (a)  The
    2-5  department shall administer this Act.
    2-6        (b)  The commissioner shall  adopt rules requiring a licensee
    2-7  to display a badge or other form of identification while operating
    2-8  as a ticket reseller as required by Section 7(b) of this Act.
    2-9        SECTION 4.  ISSUANCE OF LICENSE.  (a)  The department shall
   2-10  issue a ticket reseller license to an applicant who:
   2-11              (1)  is at least 18 years of age;
   2-12              (2)  meets the application requirements prescribed by
   2-13  rule;
   2-14              (3)  pays the application and licensing fees; and
   2-15              (4)  maintains an established place of business.
   2-16        (b)  A license issued under this Act is valid throughout this
   2-17  state but is not assignable or transferable.
   2-18        SECTION 5.  LICENSE RENEWAL.  (a)  A license is valid for one
   2-19  year from the date of issuance and may be renewed annually on
   2-20  payment of the required renewal fee.
   2-21        (b)  If a licensee fails to renew a license by the required
   2-22  date, the licensee may renew the license before the first
   2-23  anniversary of its expiration date by paying the renewal fee and a
   2-24  late fee in an amount set by the commission.  If the license is not
   2-25  renewed before the first anniversary of the expiration date, the
    3-1  licensee must satisfy the requirements for an original license to
    3-2  reinstate the license.
    3-3        SECTION 6.  REINSTATEMENT OF LICENSE.  A person whose license
    3-4  has been revoked may apply for a new license after the expiration
    3-5  of one year from the date of the revocation.
    3-6        SECTION 7.  CRIMINAL OFFENSES; PENALTY.  (a)  A person
    3-7  commits an offense if the person operates as a ticket reseller
    3-8  without a license issued under this Act.
    3-9        (b)  A person commits an offense if the person:
   3-10              (1)  is a licensed ticket reseller who fails to display
   3-11  a licensee badge or other form of identification as required by
   3-12  rule adopted under this Act; and
   3-13              (2)  operates as a ticket reseller at or within 1,000
   3-14  yards of:
   3-15                    (A)  the location where the event will be held;
   3-16                    (B)  the place where the tickets to the event are
   3-17  sold with the authority of the event sponsor; or
   3-18                    (C)  a parking lot or parking facility owned or
   3-19  leased by the event sponsor for use by the persons attending the
   3-20  event.
   3-21        (c)  A person commits an offense if the person, without the
   3-22  authorization of the event sponsor, knowingly resells for admission
   3-23  to the event tickets in excess of the smaller of:
   3-24              (1)  300 tickets; or
   3-25              (2)  a number of tickets equal to three percent of the
    4-1  total number of seats available in the venue where the event is to
    4-2  be held.
    4-3        (d)  An offense under this section is a Class C misdemeanor.
    4-4        SECTION 8.  EFFECTIVE DATE.  This Act takes effect September
    4-5  1, 1993.
    4-6        SECTION 9.  EMERGENCY.  The importance of this legislation
    4-7  and the crowded condition of the calendars in both houses create an
    4-8  emergency   and   an   imperative   public   necessity   that   the
    4-9  constitutional rule requiring bills to be read on three several
   4-10  days in each house be suspended, and this rule is hereby suspended.