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78R11231 RCJ-F


By:  Bonnen                                                       H.B. No. 432

Substitute the following for H.B. No. 432:                                    

By:  Gattis                                                   C.S.H.B. No. 432



A BILL TO BE ENTITLED

AN ACT

relating to the creation of an offense involving certain sales of 
tickets to certain events; providing a penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 35, Business & Commerce 
Code, is amended by adding Section 35.58 to read as follows:
	Sec. 35.58.  TICKET SCALPING.  (a)  In this section:                    
		(1)  "Nonprofit organization" means an organization 
that is exempt from taxation under Section 501(a), Internal Revenue 
Code of 1986, as amended, by being listed under Section 501(c)(3) of 
that code and that raises money to provide educational scholarships 
for Texas youth.
		(2)  "Resell" means to sell a ticket after it has been 
purchased from an event sponsor or from an individual, corporation, 
or association authorized to sell the ticket by the event sponsor.
	(b)  A person may not resell or offer to resell a ticket to a 
livestock show or rodeo sponsored by a nonprofit organization for a 
price that is more than $10 more than the price authorized to be 
offered to the public by the nonprofit organization.
	(c)  A person who violates this section commits an offense.  
Except as provided by Subsections (d) and (e), an offense under this 
section is a misdemeanor punishable by a fine not to exceed $100.
	(d)  If it is shown on the trial of an offense under this 
section that the person has been previously convicted one time of an 
offense under this section, the offense is a misdemeanor punishable 
by a fine not to exceed $2,000.
	(e)  If it is shown on the trial of an offense under this 
section that the person has been previously convicted two or more 
times of an offense under this section, the offense is a misdemeanor 
punishable by a fine not to exceed $5,000.
	SECTION 2.   This Act takes effect September 1, 2003.