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.