By:  Brown                                             S.B. No. 710

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     tickets to certain events; providing a penalty.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter D, Chapter 35, Business & Commerce

 1-5     Code, is amended by adding Section 35.49 to read as follows:

 1-6           Sec. 35.49.  TICKET SCALPING.  (a)  In this section:

 1-7                 (1)  "Event" means an event of public entertainment or

 1-8     amusement sponsored primarily by a nonprofit organization, the net

 1-9     proceeds of which are used to provide college scholarships and

1-10     educational programs for Texas youth.

1-11                 (2)  "Event sponsor" means an owner, lessee, operator,

1-12     promoter, or manager of:

1-13                       (A)  an event; or

1-14                       (B)  the site of an event.

1-15                 (3)  "Nonprofit organization" means a corporation,

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

1-17     tax under Section 501(a), Internal Revenue Code of 1986 (26 U.S.C.

1-18     Section 501(a)), as an organization described by Section 501(c)(3),

1-19     Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).

1-20                 (4)  "Resell" means to sell a ticket after it has been

1-21     purchased from the event sponsor or from an individual,

1-22     corporation, or association authorized to sell the ticket by the

1-23     event sponsor.

 2-1           (b)  This section applies only to:

 2-2                 (1)  a ticket for an event that is an agricultural

 2-3     exposition or a show occurring at or in connection with an

 2-4     agricultural exposition;

 2-5                 (2)  a ticket for an event the primary event sponsor of

 2-6     which is a nonprofit organization; and

 2-7                 (3)  a ticket for an event that is held in a county

 2-8     with a population of one million or more.

 2-9           (c)  A person may not resell or offer to resell a ticket to

2-10     an event for a price in excess of the price authorized to be

2-11     offered to the public by the event sponsor.

2-12           (d)  A person who violates this section commits an offense.

2-13     An offense under this section is a Class B misdemeanor.

2-14           SECTION 2.  This Act takes effect September 1, 1997.

2-15           SECTION 3.  The importance of this legislation and the

2-16     crowded condition of the calendars in both houses create an

2-17     emergency and an imperative public necessity that the

2-18     constitutional rule requiring bills to be read on three several

2-19     days in each house be suspended, and this rule is hereby suspended.