BILL ANALYSIS

 

 

Senate Research Center	H.B. 4084
88R22228 JES-D	By: Frazier et al. (Zaffirini)
	Business & Commerce
	5/12/2023
	Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

There are concerns about the lack of transparency when purchasing tickets for concerts and similar events. Hidden fees often drive up prices for events, catching consumers off guard. Consumers should be made aware of these fees without needing to read fine print or waiting until checkout. H.B. 4084 would address this issue by requiring ticket sellers to disclose certain price information to a potential ticket purchaser before the purchaser selects the ticket for purchase and prohibiting certain conduct by a ticket seller in connection with the sale or resale of a ticket. This would ensure that consumers have a clearer understanding of the total cost of their ticket purchase without being caught off guard by unexpected costs during the checkout process.

 

H.B. 4084 amends current law relating to certain disclosures and other requirements relating to the sale of concert and other event tickets.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Title 6, Business and Commerce Code, by adding Chapter 205, as follows:

 

CHAPTER 205. SALE OF EVENT TICKETS

 

Sec. 205.001. DEFINITIONS. Defines "ancillary fee," "event," "ticket seller," "ticket website," and "venue."

 

Sec. 205.002. APPLICABILITY. (a) Provides that this chapter applies only to the sale or resale of a ticket for a concert or other event that will be held in this state.

 

(b)� Provides that this chapter, notwithstanding Subsection (a), does not apply to the sale or resale of a ticket by a movie theater, unless the movie theater is hosting a live event.

 

Sec. 205.003.� DISCLOSURE OF ANCILLARY FEES.� Requires a ticket seller offering tickets for sale or resale on a ticket website to disclose in a clear and conspicuous manner to a potential ticket purchaser in the ticket listing and before the purchaser selects the ticket for purchase:

 

(1)� the total cost, stated in dollars, of the ticket purchase, including all ancillary fees the purchaser is required to pay to complete the purchase; and

 

(2)� the portion of the total cost, stated in dollars, of the ticket purchase that is represented by ancillary fees.

 

Sec. 205.004.� PROHIBITED CONDUCT.� Prohibits a ticket seller from:

 

(1)� disclosing a fee in a manner that is false or misleading;

 

(2)� displaying an ancillary fee or any component of the total price of a ticket purchase more prominently or in the same font as or a larger font than the total price of the ticket purchase; or

 

(3)� increasing the total cost of a ticket purchase during the purchase process after a potential ticket purchaser has selected a ticket for purchase, except to charge a reasonable fee disclosed before the final purchase of the ticket for the delivery of the ticket by a nonelectronic delivery method selected by the purchaser.

 

Sec. 205.005.� OTHER LAWS NOT AFFECTED.� Prohibits this chapter from being construed to nullify, expand, or otherwise affect any other law regarding the sale of a ticket for a concert or other event.

 

SECTION 2. Effective date: September 1, 2023.