Stricken language would be deleted from and underlined language would be added to present law. Act 590 of the Regular Session *ANS324* 03-30-2023 10:59:28 ANS324 State of Arkansas As Engrossed: H3/27/23 H3/30/23 1 94th General Assembly A Bill 2 Regular Session, 2023 HOUSE BILL 1650 3 4 By: Representatives M. Shepherd, Achor, Brooks, Dalby, Ennett, Eubanks, D. Ferguson, K. Ferguson, C. 5 Fite, D. Hodges, Lynch, McAlindon, McGrew, McNair, Painter, Perry, Richmond, Scott, Tosh, D. 6 Whitaker, Wooten, Beaty Jr. 7 By: Senators Hester, Crowell, J. Petty, Stone 8 9 For An Act To Be Entitled 10 AN ACT CONCERNING TH E SALE OF EVENT TICK ETS; TO 11 CREATE THE EVENT TIC KETING AND RESALE CO NSUMER 12 PROTECTION ACT; TO D ECLARE AN EMERGENCY; AND FOR 13 OTHER PURPOSES. 14 15 16 Subtitle 17 CONCERNING THE SALE OF EVENT TICKETS; TO 18 CREATE THE EVENT TICKETING AND RESALE 19 CONSUMER PROTECTION ACT; AND TO DECLARE 20 AN EMERGENCY. 21 22 23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 25 SECTION 1. Arkansas Code Title 4, Chapter 88, is amended to add 26 an additional subchapter to read as follows: 27 Subchapter 11 — Event Ticketing and Resale Consumer Protection Act 28 29 4-88-1101. Title. 30 This subchapter shall be known and may be cited as the "Event Ticketing 31 and Resale Consumer Protection Act". 32 33 4-88-1102. Definitions. 34 As used in this subchapter: 35 (1) "Character strings" means a linear sequence of characters 36 As Engrossed: H3/27/23 H3/30/23 HB1650 2 03-30-2023 10:59:28 ANS324 that are typically stored in or processed by a computer; 1 (2) "Event" means a theatrical or musical production, concert, 2 show, sporting event, comp etition, tournament, festival, dance performance, 3 rodeo, pageant, speaker, exhibition, or other entertainment open to the 4 public in this state for which tickets are normally sold; 5 (3) "Internet domain name" means a globally unique, hierarchical 6 reference to an internet host or service, that: 7 (A) Is assigned through centralized internet naming 8 authorities; 9 (B) Is comprised of a series of character strings 10 separated by periods; and 11 (C) Has the right most character strings specifying the 12 top of the hierarchy; 13 (4) "Legislative body" means the quorum court of a county or the 14 city council, board of directors, board of commissioners, or similar elected 15 governing body of local government; 16 (5) "Local government" means: 17 (A) A county; 18 (B) A city of the first class, a city of the second class, 19 or an incorporated town; or 20 (C) Any other state entity or political subdivision of the 21 state or an agency, board, or commission of the state entity or political 22 subdivision of the state; 23 (6) "Ordinance" means an ordinance, resolution, or other 24 appropriate legislative enactment of a legislative body; 25 (7) "Platform operator" means an individual, organization, 26 group, association, partnership, or corporation owning, operating, managing, 27 licensing, or controlling a ticketing platform for an event scheduled at a 28 venue in this state; 29 (8) "Ticket" means a printed, electronic, or other type of 30 evidence of the right, option, or opportunity to occupy space at or enter a 31 venue, or to attend an event, even if not evidenced by any physical 32 manifestation of the right, option, or opportunity; 33 (9) "Ticket issuer" means an individual, public or private 34 entity, organization, group, association, partnership, or corporation that 35 originally makes tickets ava ilable, directly or indirectly, to an event, and 36 As Engrossed: H3/27/23 H3/30/23 HB1650 3 03-30-2023 10:59:28 ANS324 may include without limitation: 1 (A) A platform operator; 2 (B) An operator of a venue; 3 (C) A sponsor or promoter of an event; 4 (D) A sports team participating in an event or a 5 conference or league whose teams are participating in an event; 6 (E) A dance company, musical group, theater company, or a 7 similar participant in an event; 8 (F) An institution of higher education; or 9 (G) An agent of the individual, organization, group, 10 association, partnership, or corporation; 11 (10) "Ticketing platform" means a physical or virtual 12 marketplace that enables a consumer to purchase and sell tickets, including 13 without limitation a kiosk, mobile phone application, portal, or website 14 advertising the sale of tickets, offering the sale of tickets, or offering 15 tickets for resale to an event at a venue in this state; 16 (11) "Uniform resource location" or "URL" means an internet 17 website’s name that may include a domain or subdomain name, or both; and 18 (12) "Venue" means an amphitheater, arena, camp, fair, or 19 festival ground, coliseum, concert or performance hall, conference center, 20 performing arts center, stadium, theater, or any other type of venue used for 21 events in this state. 22 23 4-88-1103. Prohibitions by local government — Resale of tickets. 24 (a)(1) A local government shall not enact or adopt an ordinance, 25 policy, regulation, or action that prohibits the sale or resale of a ticket 26 for admission to a legal event at any price or prohibit the charge of any fee 27 in connection with the sale or resale. 28 (2) This section shall not be construed to prevent the 29 enforcement of an ordinance relating to any criminal activity, consumer 30 fraud, false advertising, or other deceptive business or trade practices. 31 (b)(1) Unless otherwise permitted by a ticket issuer, if an 32 individual, organization, group, association, partnership, or corporation 33 knowingly purchases from the ticket issuer a quantity of tickets to an event 34 that exceeds the maximum ticket limit quantity posted by, or on behalf of, 35 the ticket issuer at the point of original sale or printed on the tickets, 36 As Engrossed: H3/27/23 H3/30/23 HB1650 4 03-30-2023 10:59:28 ANS324 and intends to resell the tickets in violation of this subchapter is a 1 violation of § 4-88-107. 2 (2) An individual, organization, group, association, 3 partnership, or corporation is not liable under this section with respect to 4 tickets if that individual or collective is the ticket issuer. 5 (c)(1) Except as provided in subdivision (c)(2) of this section, an 6 individual, public or private entity, organizat ion, group, association, 7 partnership, or corporation that offers for resale or resells a ticket may 8 charge any amount that the market may reasonably dictate above the admission 9 price charged by the ticket issuer. 10 (2) For a period of no less than ten (10 ) days, an 11 institution of higher education or its designee shall place a ticket 12 to a collegiate sporting event held in this state that is available 13 for sale to the general public, at a price no greater than the face 14 value of the ticket, but may include ass ociated transactional fees and 15 costs. 16 (d) Under this subchapter, a ticket to a collegiate sporting event 17 designated as being “for sale to the general public” shall not include: 18 (1) Tickets to events issued, hosted, or sold by a third -party 19 vendor; 20 (2) The ticket reserved by an institution of higher education 21 for fundraising directly or through an affiliated entity; 22 (3) Tickets for internal or complementary usage; or 23 (4) Tickets reserved to meet contractual obligations of the 24 institution of higher education or its affiliated entities. 25 (e) Except as provided in subsection (f) of this section, a platform 26 operator shall not intentionally use an internet domain name, or any 27 subdomain thereof, in a ticketing platform’s uniform resource location that 28 contains any of the following: 29 (1) The name of any specific team, league, or venue where events 30 are held; 31 (2) The name of the exhibition or performance or of another 32 event described in subsection (f) of this section, including the name of a 33 person, team, performance, group, or entity scheduled to perform at the event 34 or venue; 35 (3) Any trademark not owned by the platform operator, including 36 As Engrossed: H3/27/23 H3/30/23 HB1650 5 03-30-2023 10:59:28 ANS324 without limitation trademarks owned by authorized agents or partners of the 1 venue or event identified in subdivisions (e)(1) or (e)(2) of this section; 2 or 3 (4) Any name or names substantially similar to those in 4 subdivisions (e)(1) or (e)(2) of this section, including without limitation 5 any misspellings of any name or names described in subdivisions (e)(1) or 6 (e)(2) of this section. 7 (f) Subsection (e) of this section does not apply to a platform 8 operator who is authorized by any persons or entities identified in 9 subdivisions (e)(1) or (e)(2) of this section to act on the venue, performer, 10 team, or event’s behalf with respect to the sale or resale of tickets. 11 (g) An individual, organization, group, association, partnership, or 12 corporation shall not knowingly sell, give, transfer, use, distribute, or 13 possess with the intent to sell, give, or distribute soft ware that is 14 primarily designed or produced for the purpose of interfering with the 15 operations of any ticket issuer that sells, through a ticketing platform, 16 tickets for admission to an event by circumventing any security measures on 17 the ticket issuer’s ti cketing platform, circumventing any access control 18 systems of the ticket issuer’s ticketing platform, or circumventing any 19 controls or measures that are instituted by the ticket issuer on the 20 ticketing platform to ensure an equitable ticket purchasing proc ess. 21 (h) A violation of this section is an unfair or deceptive trade 22 practice as defined in § 4 -88-107 and subject to the enforcement and penalty 23 provisions contained therein. 24 25 4-88-1104. Ticket sale requirements — Refunds. 26 (a) An individual who is i n the business of selling or reselling 27 tickets to an event or venue in this state or an organization, group, 28 association, partnership, or corporation that sells or resells a ticket to an 29 event or venue in this state shall: 30 (1) Guarantee that the consume r will receive their tickets in 31 reasonable time for their event; 32 (2) Guarantee that the purchased tickets will provide the 33 consumer valid entry into the event or venue; 34 (3) Maintain a telephone number, e -mail address, live virtual 35 support, provide a physical representative at the venue for the duration of 36 As Engrossed: H3/27/23 H3/30/23 HB1650 6 03-30-2023 10:59:28 ANS324 the event or other evolving means of contact for complaints, customer 1 service, and inquiries; and 2 (4)(A) Implement a standard refund policy that provides a 3 consumer a full refund or comparable rep lacement ticket if: 4 (i) The ticket received by the consumer is 5 counterfeit; 6 (ii) The ticket has been cancelled by the ticket 7 issuer for nonpayment by the original consumer, or for any reason other than 8 an act or omission of the consumer; 9 (iii) The ticket fails to conform to the description 10 provided by the ticket issuer or reseller; 11 (iv) The ticket was not delivered to the consumer 12 before the occurrence of the event, unless the failure of delivery was due to 13 an act or omission of the consumer; or 14 (v) The ticket does not provide the consumer 15 admission to the event or venue for which it was purchased. 16 (B) The refund under subdivision (a)(4)(A) of this section 17 shall include the full order value paid by the consumer for the ticket , in 18 addition to all fees charged in connection with that purchase, including 19 without limitation download fees, delivery fees, shipping fees, and sales 20 taxes. 21 (b) If an event is cancelled and not rescheduled, a consumer is 22 entitled to a refund as provide d in subdivision (a)(4)(A) of this section 23 from the ticket issuer, ticketing platform, or reseller from which they 24 directly purchased the ticket. 25 (c)(1) It is a violation of the Deceptive Trade Practices Act, § 4 -88-26 101 et seq., if a ticket issuer, ticke ting platform, or reseller fails to 27 refund according to subdivision (a)(4)(A) of this section. 28 (2) All available remedies are actionable for a violation of 29 subdivision (c)(1) of this section under § 4 -88-107 of the Deceptive Trade 30 Practices Act. 31 32 4-88-1105. Counterfeits — Criminal penalties. 33 (a) An individual, organization, group, association, partnership, or 34 corporation that counterfeits, forges, alters, clones, or possesses a ticket, 35 card, wristband, or other medium that accesses or is associa ted with a 36 As Engrossed: H3/27/23 H3/30/23 HB1650 7 03-30-2023 10:59:28 ANS324 ticket, or a ticket, token, or paper designed for admission to or the 1 rendering of services by an event or venue offering services to the general 2 public, with the intent to defraud the event or venue, commits a Class A 3 misdemeanor. 4 (b) An individual, organization, group, association, partnership, or 5 corporation that commits a second or subsequent violation of subsection (a) 6 of this section commits a Class D felony. 7 8 4-88-1106. Violations. 9 (a)(1) An individual, organization, group, associati on, partnership, 10 or corporation violating this subchapter is guilty of a violation. 11 (2) Upon conviction, an individual, organization, group, 12 association, partnership, or corporation shall be fined in a sum not less 13 than one hundred dollars ($100) nor gr eater than five hundred dollars ($500) . 14 (b) Every sale or resale, or offer for sale or resale, that violates 15 this subchapter is a separate actionable offense. 16 (c) An institution of higher education and its officers, agents, 17 employees, volunteers, desig nees, and affiliated entities shall not be held 18 criminally or civilly liable for a violation of this subchapter. 19 (d) This subchapter shall not be construed as a waiver of any immunity 20 available under state law or its instrumentalities, officers, agents, 21 employees, or volunteers. 22 23 SECTION 2. Arkansas Code § 5 -63-201 is repealed. 24 5-63-201. Tickets to certain events — Sale in excess of regular price. 25 (a)(1) It is unlawful for any person, corporation, firm, or 26 partnership to resell or offer for resale a ticket to an event for a price 27 higher than the greater of either: 28 (A) The price originally charged for the ticket by the 29 venue or entity hosting the event or the venue or entity's authorized agent 30 plus a reasonable charge for handling or credit card u se; or 31 (B) The price printed on the ticket. 32 (2) This subsection does not apply to an institution of higher 33 education that receives funds per ticket above the face value of the ticket. 34 (b)(1) Any person, corporation, firm, or partnership violating any 35 provision of this section is guilty of a violation and upon conviction shall 36 As Engrossed: H3/27/23 H3/30/23 HB1650 8 03-30-2023 10:59:28 ANS324 be fined in any sum not less than twenty -five dollars ($25.00) nor more than 1 five hundred dollars ($500). 2 (2) Every sale or offer for sale is a separate offense. 3 (c) As used in this section, “event” means a live entertainment event, 4 athletic event, sporting event, theater performance, musical performance, or 5 an event held for the benefit of charity. 6 7 SECTION 3. EMERGENCY CLAUSE. It is found and determined by the 8 General Assembly of the State of Arkansas that the intercollegiate football 9 ticket selling process will begin soon; that ensuring adequate consumer 10 protection mechanisms are in place is vital to protecting the public peace, 11 health, and safety of consumers in thi s state; and that this act is 12 immediately necessary to ensure proper consumer protections are in effect for 13 the 2023-2024 school years so that consumers are protected. Therefore, an 14 emergency is declared to exist, and this act being immediately necessary f or 15 the preservation of the public peace, health, and safety shall become 16 effective on: 17 (1) The date of its approval by the Governor; 18 (2) If the bill is neither approved nor vetoed by the Governor, 19 the expiration of the period of time during which the Governor may veto the 20 bill; or 21 (3) If the bill is vetoed by the Governor and the veto is 22 overridden, the date the last house overrides the veto. 23 24 /s/M. Shepherd 25 26 27 APPROVED: 4/11/23 28 29 30 31 32 33 34 35 36