1-1  By:  Brown, Wentworth                                  S.B. No. 305
    1-2        (In the Senate - Filed January 24, 1995; January 25, 1995,
    1-3  read first time and referred to Committee on Economic Development;
    1-4  March 21, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 9, Nays 1; March 21, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 305                By:  Henderson
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the creation of an offense involving certain sales of
   1-11  tickets to certain events; providing a penalty.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Subchapter D, Chapter 35, Business & Commerce
   1-14  Code, is amended by adding Section 35.49 to read as follows:
   1-15        Sec. 35.49.  TICKET SCALPING.  (a)  In this section:
   1-16              (1)  "Event" means an event of public entertainment or
   1-17  amusement sponsored primarily by a nonprofit organization, the net
   1-18  proceeds of which provide college scholarships and educational
   1-19  programs for Texas youth.
   1-20              (2)  "Event sponsor" means an owner, lessee, operator,
   1-21  promoter, or manager of an event or the site of an event.
   1-22              (3)  "Resell" means to sell a ticket after it has been
   1-23  purchased from the event sponsor or from an individual,
   1-24  corporation, or association authorized to sell the ticket by the
   1-25  event sponsor.
   1-26              (4)  "Nonprofit organization" means a corporation,
   1-27  association, or business entity that is exempt from federal income
   1-28  tax under Section 501(a) of the Internal Revenue Code of 1986 (26
   1-29  U.S.C. Section 501(a)) as an organization described by Section
   1-30  501(c)(3) of that code.
   1-31        (b)  This section applies only to:
   1-32              (1)  tickets for an event that is an agricultural
   1-33  exposition or a show occurring at or in connection with an
   1-34  agricultural exposition;
   1-35              (2)  tickets for an event the primary sponsor of which
   1-36  is a nonprofit organization; and
   1-37              (3)  tickets for an event that is held in a county with
   1-38  a population of one million or more.
   1-39        (c)  A person may not resell or offer to resell a ticket to
   1-40  an event for a price in excess of the price authorized to be
   1-41  offered to the general public by the event sponsor.
   1-42        (d)  A person who violates this section commits an offense.
   1-43  An offense under this section is a Class B misdemeanor.
   1-44        SECTION 2.  This Act takes effect September 1, 1995.
   1-45        SECTION 3.  The importance of this legislation and the
   1-46  crowded condition of the calendars in both houses create an
   1-47  emergency and an imperative public necessity that the
   1-48  constitutional rule requiring bills to be read on three several
   1-49  days in each house be suspended, and this rule is hereby suspended.
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