By Kuempel H.B. No. 2217 74R3626 CAG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the licensing of amusement event ticket brokers; 1-3 providing a criminal penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 20, Title 132, Revised Statutes, is 1-6 amended by adding Article 9029 to read as follows: 1-7 Art. 9029. AMUSEMENT EVENT TICKET BROKER LICENSE LAW 1-8 Sec. 1. DEFINITIONS. In this article: 1-9 (1) "Advisory board" means the Amusement Event Ticket 1-10 Broker Advisory Board. 1-11 (2) "Amusement event" means an event of public 1-12 entertainment or amusement, including a sporting event, concert, 1-13 cultural activity, or art exhibition. 1-14 (3) "Amusement event ticket broker" means a person who 1-15 resells or offers to resell a ticket to an amusement event for a 1-16 price greater than the amount at which the ticket is authorized to 1-17 be offered to the general public by the amusement event sponsor. 1-18 (4) "Commission" means the Texas Commission of 1-19 Licensing and Regulation. 1-20 (5) "Commissioner" means the commissioner of licensing 1-21 and regulation. 1-22 (6) "Department" means the Texas Department of 1-23 Licensing and Regulation. 1-24 (7) "Price" means the total amount of compensation an 2-1 amusement event ticket broker receives when reselling a ticket, 2-2 including handling costs or fees, or any other costs or fees 2-3 charged by the broker. 2-4 (8) "Resell" means to sell a ticket after it has been 2-5 purchased from the event sponsor or from an individual, 2-6 corporation, or other entity authorized to sell the ticket by the 2-7 event sponsor. 2-8 Sec. 2. POWERS AND DUTIES OF COMMISSIONER AND DEPARTMENT. 2-9 (a) The commissioner shall adopt rules for the practice of 2-10 amusement event ticket brokering consistent with this article. 2-11 (b) The commissioner shall enforce this article and may 2-12 adopt rules relating to enforcement requirements. 2-13 (c) The commissioner may issue an emergency order as 2-14 necessary to enforce this article. The order may be issued without 2-15 notice and hearing or with any notice and hearing that the 2-16 commissioner considers practicable under the circumstances. If an 2-17 emergency order is issued under this subsection without a hearing, 2-18 the commissioner shall set the time and place for a hearing to 2-19 affirm, modify, or set aside the emergency order. 2-20 (d) The commissioner shall prescribe application forms for 2-21 original and renewal licenses and the design of the licenses. 2-22 (e) The commissioner shall set bond requirements for persons 2-23 licensed under this article. 2-24 (f) The department may employ personnel necessary to 2-25 implement this article. 2-26 (g) The commissioner may authorize necessary expenditures to 2-27 implement this article, including the payment of office expenses, 3-1 equipment costs, and expenses to obtain necessary facilities. 3-2 (h) The commissioner shall maintain a record of the 3-3 commissioner's actions under this article. 3-4 (i) The department shall publish annually a directory of the 3-5 persons licensed under this article. The department may sell the 3-6 directory on payment of a reasonable fee set by the commission. 3-7 The fees collected under this subsection shall be appropriated to 3-8 the department for use in the administration of this article. 3-9 (j) The department may contract with another state agency or 3-10 a political subdivision of the state for the enforcement of this 3-11 article and the rules adopted by the commissioner under this 3-12 article. 3-13 Sec. 3. ADVISORY BOARD. (a) The Amusement Event Ticket 3-14 Broker Advisory Board is created to advise the commissioner in 3-15 adopting rules and enforcing and administering this article and to 3-16 advise the commission in setting fees. 3-17 (b) The advisory board consists of six members appointed by 3-18 the governor with the advice and consent of the senate and who are 3-19 experienced in the brokering of amusement event tickets. 3-20 (c) Members of the advisory board serve staggered six-year 3-21 terms with two members' terms expiring on February 1 of each 3-22 odd-numbered year. 3-23 (d) The governor shall designate one member of the board to 3-24 serve as presiding officer. 3-25 (e) The advisory board shall meet at least once every six 3-26 months and may meet at other times at the call of the presiding 3-27 officer. The advisory board shall meet at a place designated by 4-1 the board in this state. 4-2 (f) A decision of the advisory board is not effective unless 4-3 it receives the affirmative vote of at least four members. 4-4 (g) A member of the advisory board is not entitled to 4-5 compensation but is entitled to reimbursement of the member's 4-6 travel expenses as provided in the General Appropriations Act. 4-7 Sec. 4. LICENSE REQUIRED. Unless exempt under Section 8 of 4-8 this article, a person may not resell a ticket to an amusement 4-9 event for a price greater than the amount at which the ticket is 4-10 authorized to be offered to the general public by the amusement 4-11 event sponsor without a license under this article. 4-12 Sec. 5. AMUSEMENT EVENT TICKET BROKER LICENSES. (a) An 4-13 applicant for an amusement event ticket broker's license must: 4-14 (1) be at least 18 years old; 4-15 (2) post a bond meeting the requirements of Section 9 4-16 of this article; and 4-17 (3) comply with any other requirements for licensing. 4-18 (b) The application must be made on a form prescribed by the 4-19 commissioner. The application must be sworn and accompanied by: 4-20 (1) evidence of the bonding coverage required under 4-21 this article; and 4-22 (2) payment of the application fee. 4-23 (c) The commissioner shall issue an amusement event ticket 4-24 broker's license to an applicant who possesses the qualifications 4-25 required by Subsection (a) of this section and who pays the 4-26 original application fee required by this article. 4-27 (d) A license issued under this article expires at the end 5-1 of the license period set by the commission. 5-2 (e) With the advice of the advisory board, the commissioner 5-3 shall adopt rules relating to the use, display, and advertisement 5-4 of a license issued under this article. 5-5 Sec. 6. VIOLATIONS OF ARTICLE; DENIAL, SUSPENSION, OR 5-6 REVOCATION OF LICENSE. (a) A violation of this article or a rule 5-7 adopted under this article is a ground for the denial, suspension, 5-8 or revocation of a license issued under this article. 5-9 (b) Proceedings for the denial, suspension, or revocation of 5-10 a license and an appeal from those proceedings are governed by 5-11 Chapter 2001, Government Code. 5-12 Sec. 7. CONSUMER COMPLAINT INVESTIGATION. (a) The 5-13 commissioner shall prepare information of consumer interest 5-14 describing the functions performed by the commissioner under this 5-15 article and the rights of consumers as affected by this article. 5-16 The information must describe the procedure by which a consumer 5-17 complaint is filed with and resolved by the commissioner. The 5-18 commissioner shall make the information available to the general 5-19 public. 5-20 (b) The commissioner shall investigate consumer complaints 5-21 filed with the commissioner. If the commissioner determines after 5-22 investigation that a license holder has violated this article or a 5-23 rule adopted under this article, the commissioner may take 5-24 appropriate action under Section 6 of this article. 5-25 Sec. 8. EXEMPTIONS. This article does not apply to a person 5-26 who resells: 5-27 (1) not more than four tickets for one specific 6-1 amusement event for a price greater than the amount at which the 6-2 tickets are authorized to be offered to the general public by the 6-3 amusement event sponsor; or 6-4 (2) any tickets for a price equal to or less than the 6-5 amount at which the tickets are authorized to be offered to the 6-6 general public by the amusement event sponsor. 6-7 Sec. 9. BONDING REQUIREMENT. To protect customers who 6-8 purchase tickets to an event that may be cancelled, an applicant 6-9 for a license under this article shall post a $5,000 bond to insure 6-10 the refund of a consumer's ticket purchase. The commissioner shall 6-11 determine the requirements for a bond issued under this section. 6-12 Sec. 10. PENALTY. (a) A person commits an offense if the 6-13 person knowingly or intentionally acts as an amusement event ticket 6-14 broker covered by this article without a license issued under this 6-15 article. 6-16 (b) An offense under this section is a Class B misdemeanor. 6-17 SECTION 2. (a) In making the initial appointments to the 6-18 Amusement Event Ticket Broker Advisory Board, the governor shall 6-19 appoint persons engaged in amusement event ticket brokering for not 6-20 less than two years as follows: 6-21 (1) two members to serve terms expiring February 1, 6-22 1997; 6-23 (2) two members to serve terms expiring February 1, 6-24 1999; and 6-25 (3) two members to serve terms expiring February 1, 6-26 2001. 6-27 (b) The commissioner of licensing and regulation shall adopt 7-1 rules under this Act not later than December 31, 1995. 7-2 SECTION 3. (a) Except as provided by Subsection (b) of this 7-3 section, this Act takes effect September 1, 1995. 7-4 (b) Sections 4 and 10, Article 9029, Revised Statutes, as 7-5 added by this Act, take effect March 1, 1996. 7-6 SECTION 4. The importance of this legislation and the 7-7 crowded condition of the calendars in both houses create an 7-8 emergency and an imperative public necessity that the 7-9 constitutional rule requiring bills to be read on three several 7-10 days in each house be suspended, and this rule is hereby suspended.