BILL ANALYSIS C.S.S.B. 305 By: Brown Economic Development 3-22-95 Committee Report (Substituted) BACKGROUND Currently, state law does not prohibit the sale of tickets to a public entertainment or amusement event for a price in excess of the ticket's face value. However, in 1989, the City of Dallas passed an ordinance which makes the "scalping" of tickets on public property illegal. Other cities have passed similar ordinances, but most of them are unenforced. The demand for event tickets has spurred a growing ticket "scalping" industry. Some "scalpers" sell invalid or nonsequential tickets and often sell tickets at prices in excess of face value. This practice may make it difficult for patrons to purchase event tickets. Complaints from fans and patrons have resulted in some arena officials seeking assistance from local police forces. PURPOSE As proposed, C.S.S.B. 305 prohibits a person from reselling or offering to resell a ticket to an event for a price in excess of the price authorized to be offered to the general public by the event sponsor and provides penalties. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 35D, Business & Commerce Code, by adding Section 35.49, as follows: Sec. 35.49. TICKET SCALPING. (a) Defines "event," "event sponsor," "nonprofit organization" and "resell." (b) Sets forth tickets to which this section applies. (c) Prohibits a person from reselling or offering to resell a ticket to an event for a price in excess of the price authorized to be offered to the general public by the event sponsor. (d) Provides that a person who violates this section commits a Class B misdemeanor. SECTION 2. Effective date: September 1, 1995. SECTION 3. Emergency clause.