By Yarbrough                                    H.B. No. 1661

      75R7058 BEM-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation of an offense involving certain sales of

 1-3     tickets to certain events; providing a penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter D, Chapter 35, Business & Commerce

 1-6     Code, is amended by adding Section 35.49 to read as follows:

 1-7           Sec. 35.49.  SCALPING OF TICKETS TO CERTAIN NONPROFIT EVENTS.

 1-8     (a)  In this section:

 1-9                 (1)  "Event" means an event of public entertainment or

1-10     amusement that is sponsored primarily by a not-for-profit

1-11     organization and the net proceeds of which provide college

1-12     scholarships and educational programs for Texas youth.

1-13                 (2)  "Event sponsor" means an owner, lessee, operator,

1-14     promoter, or manager of an event or the site of an event.

1-15                 (3)  "Not-for-profit organization" means a corporation,

1-16     association, or business entity exempt from federal income tax

1-17     under Section 501(c)(3) of the Internal Revenue Code of 1986 (26

1-18     U.S.C. Section 501(c)(3)).

1-19                 (4)  "Resell" means to sell a ticket after it has been

1-20     purchased from the event sponsor or from a person authorized to

1-21     sell the ticket by the event sponsor.

1-22           (b)  A person may not resell or offer to resell, for a price

1-23     in excess of the price authorized to be offered to the public by

1-24     the event sponsor, a ticket to an event that is:

 2-1                 (1)  closely related to an agricultural purpose or for

 2-2     the express purpose of promoting agriculture; or

 2-3                 (2)  closely related to or organized by a

 2-4     not-for-profit organization.

 2-5           (c)  A person who violates this section commits an offense.

 2-6     An offense under this section is a Class B misdemeanor.

 2-7           SECTION 2.  This Act takes effect September 1, 1997.

 2-8           SECTION 3.  The importance of this legislation and the

 2-9     crowded condition of the calendars in both houses create an

2-10     emergency and an imperative public necessity that the

2-11     constitutional rule requiring bills to be read on three several

2-12     days in each house be suspended, and this rule is hereby suspended.