Arizona 2024 2024 Regular Session

Arizona House Bill HB2040 Comm Sub / Analysis

Filed 04/02/2024

                      	HB 2040 
Initials PB 	Page 1 	Senate Engrossed 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
Second Regular Session 
House: COM DP 9-1-0-0 | 3
rd
 Read 43-15-1-0-1 
Senate: FICO DPA 5-0-2-0 | 3
rd
 Read 22-5-3-0-0 
 
HB 2040: event online ticket sales 
Sponsor: Representative Cook, LD 7 
Senate Engrossed 
Overview 
Outlines prohibitions relating to using or creating a bot to make certain online ticket sale 
purchases. 
History 
Pursuant to A.R.S § 13-3718, it is unlawful for a person to sell an entertainment event ticket, 
which was purchased with the intent to resale, for a price that exceeds the face value, 
including taxes and other charges, while being within 200 feet of entry to the venue where 
the event is being held or the venues parking area. Additionally, it is unlawful to alter a 
ticket's printed price without the original vendor's written consent. Persons found in violation 
are subject to a petty offense. 
Provisions 
1. Prohibits a person from using or creating a bot to: 
a) purchase tickets in excess of the listed limit for an online ticket sale; 
b) use multiple internet protocol addresses, multiple purchaser accounts or multiple 
email addresses to purchase tickets in excess of the posted limit for an online ticket 
sale; 
c) circumvent or disable an electronic queue, waiting period, presale code or other sales 
volume limitation system associated with online ticket sale; 
d) circumvent or disable a security measure, access control system or other control or 
measure that is used to facilitate authorized entry to an event. (Sec 1)  
2. Permits the Attorney General (AG) to investigate a claim that a person violated laws 
relating to event online ticket sales. (Sec 1) 
3. Stipulates the AG may bring action to restrain or enjoin the person who is violating event 
online ticket sales laws. (Sec. 1) 
4. Allows the AG to seek restitution and petition a superior court for the assessment of a 
civil penalty. (Sec 1) 
5. Specifies a person who knowingly violates event online ticket sales laws is liable for a civil 
penalty of up to $10,000 for each violation. (Sec 1) 
6. Specifies each ticket transaction in which a ticket is acquired to be sold in violation of 
event online ticket sales laws constitutes a separate violation for the purpose of assessing 
a civil penalty. (Sec 1)  
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note    	HB 2040 
Initials PB 	Page 2 	Senate Engrossed 
7. Specifies a person cannot be subject to a civil penalty of more than $100,000 if the person 
violates a court order or injunction issued to enforce event online ticket sales laws. (Sec. 
1) 
8. Specifies the AG may recover all reasonable costs of bringing an action. (Sec 1) 
9. Defines pertinent terms. (Sec. 1) 
Senate Amendments 
1. Clarifies that a bot cannot be used to circumvent or disable a security measure or access 
control system that is used to validate that the ticket is not fraudulent rather than that 
is used to facilitate authorized entry to an event. 
2. Adds that violations of event online ticket sale prohibitions constitute an unlawful 
practice under the consumer fraud statutes. 
3. Restates that the AG may investigate, take appropriate action and assess civil penalties 
in accordance with consumer fraud statutes.