Maryland 2024 2024 Regular Session

Maryland House Bill HB701 Introduced / Bill

Filed 01/26/2024

                     
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
          *hb0701*  
  
HOUSE BILL 701 
I3   	4lr0597 
    	CF SB 539 
By: Delegate Wilson 
Introduced and read first time: January 26, 2024 
Assigned to: Economic Matters 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Commercial Law – Consumer Protection – Sale and Resale of Tickets 2 
 
FOR the purpose of requiring the listing for a ticket and each step of a transaction to 3 
purchase a ticket to disclose certain information; requiring a reseller to provide the 4 
contact information of the resale ticket purchaser to the ticket issuer for a certain 5 
purpose; prohibiting a reseller from selling or offering to sell a ticket for more than 6 
a certain price; limiting the fee that a secondary ticket exchange may charge for the 7 
service of providing a marketplace for the resale of a ticket; prohibiting a person from 8 
restricting the transfer or resale of a ticket that was made available to the general 9 
public for purchase, subject to certain restrictions; repealing the exceptions to the 10 
prohibition against a reseller selling or offering to sell speculative tickets; prohibiting 11 
a secondary ticket exchange from providing a marketplace for the resale of a ticket 12 
that violates this Act; and generally relating to consumer protection and the sale and 13 
resale of tickets. 14 
 
BY repealing and reenacting, with amendments, 15 
 Article – Commercial Law 16 
Section 13–310.1 17 
 Annotated Code of Maryland 18 
 (2013 Replacement Volume and 2023 Supplement) 19 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20 
That the Laws of Maryland read as follows: 21 
 
Article – Commercial Law 22 
 
13–310.1. 23 
 
 (a) (1) In this section the following words have the meanings indicated. 24 
 
 (2) (i) “Resale” means the second or subsequent sale of a ticket. 25  2 	HOUSE BILL 701  
 
 
 
 (ii) “Resale” includes a sale by any means, including in person, by 1 
telephone, by mail, by e–mail, by facsimile, or through a website or other electronic means. 2 
 
 (3) “Reseller” means a person [who offers a ticket for resale] ENGAGED IN 3 
THE RESALE OF TICKET S. 4 
 
 (4) “SECONDARY TICKET EXCH ANGE” MEANS AN ELECTRONIC 5 
MARKETPLACE THAT ENA BLES CONSUMERS TO SELL, PURCHASE, AND RESELL 6 
TICKETS.  7 
 
 (5) (i) “Speculative ticket” means a ticket that is not in the actual or 8 
constructive possession of a reseller at the time of sale. 9 
 
 (ii) “Speculative ticket” includes a ticket sold by a reseller that, at 10 
the time of resale: 11 
 
 1. Is not in the physical possession of the reseller; 12 
 
 2. Is not owned by the reseller; or 13 
 
 3. Is not under contract to be transferred to the reseller. 14 
 
 [(5)] (6) “Ticket” means physical, electronic, or other evidence, that 15 
grants the possessor of the evidence [permission] LICENSE to enter a place of 16 
entertainment for one or more events at a specified date and time. 17 
 
 (7) (I) “TICKET ISSUER” MEANS A PERSON THAT , DIRECTLY OR 18 
INDIRECTLY, ISSUES INITIAL TICKETS FOR AN ENTER TAINMENT EVENT . 19 
 
 (II) “TICKET ISSUER” INCLUDES: 20 
 
 1. A MUSICIAN OR MUSICAL GROUP; 21 
 
 2. AN OPERATOR OF A VENU E; 22 
 
 3. A SPONSOR OR A PROMOTE R OF AN ENTERTAINMENT 23 
EVENT; 24 
 
 4. A SPORTS TEAM PARTICIP	ATING IN AN 25 
ENTERTAINMENT EVENT ; 26 
 
 5. A SPORTS LEAGUE WHOSE 	TEAMS ARE 27 
PARTICIPATING IN AN ENTERTAINMENT EVENT ; 28 
   	HOUSE BILL 701 	3 
 
 
 6. A THEATER COMPANY ; 1 
 
 7. A MARKETPLACE OPERATED FOR CONSUMERS TO 2 
MAKE AN INITIAL PU RCHASE OF TICKETS ; OR 3 
 
 8. AN AGENT OF ANY OF TH E PERSONS LISTED IN ITEMS 4 
1 THROUGH 7 OF THIS SUBPARAGRAPH . 5 
 
 (B) (1) THIS SUBSECTION APPLI ES ONLY TO SECONDARY TICKET 6 
EXCHANGE S, TICKET ISSUER S, AND RESELLERS. 7 
 
 (2) THE LISTING FOR A TIC KET AND EACH STEP OF A TRANSACTIO N 8 
TO PURCHASE A TICKET SHALL: 9 
 
 (I) CLEARLY AND CONSPICUO USLY DISCLOSE THE TOTAL 10 
PRICE OF THE TICKET, INCLUDING ALL FEES AND TAXES ; 11 
 
 (II) PROVIDE AN ITEMIZED LISTING OF ALL CHARGES THAT 12 
COMPRISE THE TOTAL PRICE OF THE TICKET, INCLUDING ALL FEES A ND TAXES; AND 13 
 
 (III) IDENTIFY THE SEAT NUM BER AND ZONE OR SECTION OF THE 14 
TICKET, TO THE EXTENT APPLIC ABLE TO THE SEAT AND VENUE. 15 
 
 (C) A RESELLER SHALL PROVIDE THE TICKET ISSUER WITH T HE CONTACT 16 
INFORMATION OF THE R ESALE TICKET PURCHAS ER TO ENABLE THE TICKET ISSUER 17 
TO NOTIFY THE RESALE TICKET PU RCHASER OF ANY CHANGE IN THE EVENT 18 
CIRCUMSTANCES , SUCH AS AN EVENT CANCELLATION OR RESCHEDULING . 19 
 
 (D) (1) THIS SUBSECTION DOES NOT APPLY TO A FEE THAT A SECONDARY 20 
TICKET EXCHANGE MAY CHARGE FOR THE SERVI CE OF PROVIDING A MA RKETPLACE 21 
FOR THE RESALE OF A TICKET. 22 
 
 (2) (I) EXCEPT AS PROVIDED UNDER SUBPARAGRAPH (II) OF THIS 23 
PARAGRAPH , THE TOTAL PRICE AT WHICH A RESELLER MAY SELL OR OFFER TO SELL 24 
A TICKET MAY NOT EXC EED THE TOTAL PRICE OF THE INITIAL TICKET, INCLUDING 25 
ALL FEES AND TAXES I N CONNECTION WITH TH E INITIAL TICKET. 26 
 
 (II) IF INITIAL TICKETS WERE PURCHASED FOR A SERI ES OF 27 
EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM, THE TOTAL RESALE PRICE 28 
OF A TICKET FOR A SINGLE EVENT MAY NOT EXCEED THE TOTAL PRICE OF A 29 
COMPARABLE TICKET, INCLUDING ALL FEES A ND TAXES. 30 
  4 	HOUSE BILL 701  
 
 
 (E) THE FEE THAT A SECONDARY TICKET EXC HANGE MAY CHARGE FOR THE 1 
SERVICE OF PROVIDING A MARKETPLACE FOR THE RESALE OF A TICKET MAY NOT 2 
EXCEED 10% OF THE TOTAL PRICE OF THE INITIAL TICKET. 3 
 
 (F) SUBJECT TO REASONABLE RESTRICTIONS IMPOSED BY A TICKET 4 
ISSUER, A PERSON MAY NOT PRO HIBIT OR RESTRICT TH E TRANSFER OR RESALE OF 5 
A TICKET THAT WAS MADE AVAILA BLE TO THE GENERAL P UBLIC FOR PURCHASE . 6 
 
 [(b)] (G) A reseller may not sell or offer to sell speculative tickets [unless the 7 
reseller, clearly and conspicuously, discloses to a prospective purchaser at the outset of the 8 
sales transaction: 9 
 
 (1) That the tickets are speculative tickets, and the reseller is not in 10 
possession of the tickets; 11 
 
 (2) That the reseller is making an offer to procure the tickets for the 12 
prospective purchaser; 13 
 
 (3) An approximate date on which the tickets will be delivered to the 14 
purchaser; 15 
 
 (4) The name or a description of the event for which the tickets will permit 16 
entry; 17 
 
 (5) The total number of tickets included in the transaction; 18 
 
 (6) The number of tickets for seats that are together; 19 
 
 (7) The zone or section number of the tickets, to the extent applicable to 20 
the venue; and 21 
 
 (8) For reserved seat tickets: 22 
 
 (i) The seat numbers of the tickets; or 23 
 
 (ii) If applicable, that the reseller cannot guarantee the specific seats 24 
because the tickets are speculative tickets. 25 
 
 (c) (1) A reseller shall refund to a purchaser any consideration or deposit paid 26 
for tickets sold under this section if the reseller fails to obtain the tickets: 27 
 
 (i) Within 24 hours after the approximate date of delivery specified 28 
in subsection (b)(2) of this section, but before the commencement of the event for which the 29 
tickets were sold; or 30 
 
 (ii) In conformity with the disclosures required under this section. 31   	HOUSE BILL 701 	5 
 
 
 
 (2) A reseller shall make a refund required under this subsection not later 1 
than 10 days after the final day of the event for which the tickets were sold]. 2 
 
 (H) A SECONDARY TICKET EXC HANGE MAY NOT PROVID E A MARKETPLACE 3 
FOR THE RESALE OF A TICKET THAT VIOLATES THIS SECTIO N. 4 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5 
October 1, 2024. 6