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.