1-1     By:  Brown                                             S.B. No. 710

 1-2           (In the Senate - Filed February 24, 1997; February 26, 1997,

 1-3     read first time and referred to Committee on Criminal Justice;

 1-4     April 9, 1997, reported favorably by the following vote:  Yeas 7,

 1-5     Nays 0; April 9, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the creation of an offense involving certain sales of

 1-9     tickets to certain events; providing a penalty.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subchapter D, Chapter 35, Business & Commerce

1-12     Code, is amended by adding Section 35.49 to read as follows:

1-13           Sec. 35.49.  TICKET SCALPING.  (a)  In this section:

1-14                 (1)  "Event" means an event of public entertainment or

1-15     amusement sponsored primarily by a nonprofit organization, the net

1-16     proceeds of which are used to provide college scholarships and

1-17     educational programs for Texas youth.

1-18                 (2)  "Event sponsor" means an owner, lessee, operator,

1-19     promoter, or manager of:

1-20                       (A)  an event; or

1-21                       (B)  the site of an event.

1-22                 (3)  "Nonprofit organization" means a corporation,

1-23     association, or business entity that is exempt from federal income

1-24     tax under Section 501(a), Internal Revenue Code of 1986 (26 U.S.C.

1-25     Section 501(a)), as an organization described by Section 501(c)(3),

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

1-27                 (4)  "Resell" means to sell a ticket after it has been

1-28     purchased from the event sponsor or from an individual,

1-29     corporation, or association authorized to sell the ticket by the

1-30     event sponsor.

1-31           (b)  This section applies only to:

1-32                 (1)  a ticket 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)  a ticket for an event the primary event sponsor of

1-36     which is a nonprofit organization; and

1-37                 (3)  a ticket for an event that is held in a county

1-38     with 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 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, 1997.

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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