BILL ANALYSIS

 

 

 

C.S.H.B. 4084

By: Frazier

Business & Industry

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

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. C.S.H.B. 4084 seeks to 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.

 

CRIMINAL JUSTICE IMPACT

 

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

C.S.H.B. 4084 amends the Business & Commerce Code to require a ticket seller offering tickets for sale or resale on a ticket website to disclose the following information in a clear and conspicuous manner to a potential ticket purchaser in the ticket listing and before the purchaser selects the ticket for purchase:

·         the total cost, stated in dollars, of the ticket purchase, including all ancillary fees the purchaser must pay to complete the purchase; and

·         the portion of the total cost, stated in dollars, of the ticket purchase that is represented by ancillary fees.

 

C.S.H.B. 4084 prohibits a ticket seller from doing the following:

·         disclosing a fee in a manner that is false or misleading;

·         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

·         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 ticket purchaser.

 

C.S.H.B. 4084 applies only to the sale or resale of a ticket for a concert or other event that will be held in Texas and does not apply to the sale or resale of a ticket by a movie theater, unless the theater is hosting a live event. The bill includes the following definitions:

·         "ancillary fee" includes a service charge, surcharge, or any other fee charged in connection with the sale of an event ticket but does not include a shipping fee or any applicable local, state, or federal taxes;

·         "event" means a concert, theatrical performance, sporting event, exhibition, show, or similar scheduled activity that is open to the public, is held in a public or private venue, and requires payment of an admission fee to attend the activity;

·         "ticket seller" means a person that sells or resells tickets for a concert or other event, including the operator of a ticket website or the operator's agent;

·         "ticket website" means a website or mobile application advertising or offering the sale  of tickets, or offering tickets for resale, to an event in Texas; and

·         "venue" means an arena, stadium, theater, concert hall, or other place used for events.

 

C.S.H.B. 4084 may not be construed to nullify, expand, or otherwise affect any other law regarding the sale of a ticket for a concert or other event.

 

EFFECTIVE DATE

 

September 1, 2023.

 

COMPARISON OF INTRODUCED AND SUBSTITUTE

 

While C.S.H.B. 4084 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

 

The substitute includes a provision not present in the introduced that exempts the sale or resale of a ticket by a movie theater from the bill's provisions, unless the movie theater is hosting a live event.

 

The introduced made the bill's provisions applicable only to the sale or resale of a ticket for an event in Texas. The substitute clarifies that applicability by specifying that the bill's provisions apply to the sale or resale of a ticket for an event that will be held in Texas.

 

Both the introduced and substitute require an applicable ticket seller to disclose certain information to a potential ticket purchaser before the purchaser selects the ticket for purchase. However, the substitute includes language that was not in the introduced specifying that the information must be disclosed in the ticket listing, that the total cost of the ticket purchase must be stated in dollars, and that the ancillary fees to be disclosed are those the purchaser must pay to complete the purchase. The substitute omits the requirement from the introduced for a ticket seller to post on the ticket website in a location easily accessible by a ticket purchaser or a potential ticket purchaser each ancillary fee that may be charged.

 

The introduced prohibited a ticket seller from increasing the total cost of a ticket purchase at any time during the purchase process, whereas the substitute prohibits a ticket seller from increasing the total cost of a ticket purchase during the purchase process after a potential ticket purchaser has selected a ticket for purchase.

 

The substitute excludes a shipping fee or any applicable local, state, or federal taxes from the definition of "ancillary fee," whereas the introduced did not do so.