BILL ANALYSIS S.B. 495 By: Henderson Economic Development 03-22-95 Committee Report (Unamended) BACKGROUND The reselling of event tickets for a higher price than is authorized by the event sponsor by someone other than the event sponsor is commonly called "scalping." Currently, there is no legislation that prevents scalpers from benefitting from the talent and industry of those who provide entertainment and sponsor events for public enjoyment. PURPOSE As proposed, S.B. 495 creates an offense involving sales of tickets to certain events and provides a penalty for the offense. 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 and Commerce Code, by adding Section 35.49, as follows: Sec. 35.49. TICKET SCALPING. (a) Defines "event," "event sponsor," "nonprofit organization," and "resell." (b) Makes this section applicable to an event only if it is held in a county with a population of at least 2.4 million; it is an agricultural exposition or a show in connection with an agricultural exposition; the primary event sponsor is a nonprofit organization; and the net proceeds are used to provide scholarships and educational programs for youths in the state. (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.