Maryland 2024 2024 Regular Session

Maryland House Bill HB701 Engrossed / Bill

Filed 04/03/2024

                     
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
         Underlining indicates amendments to bill. 
         Strike out indicates matter stricken from the bill by amendment or deleted from the law by 
amendment. 
          *hb0701*  
  
HOUSE BILL 701 
I3   	4lr0597 
    	CF SB 539 
By: Delegate Wilson 
Introduced and read first time: January 26, 2024 
Assigned to: Economic Matters 
Committee Report: Favorable with amendments 
House action: Adopted 
Read second time: March 20, 2024 
 
CHAPTER ______ 
 
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  2 	HOUSE BILL 701  
 
 
 
13–310.1. 1 
 
 (a) (1) In this section the following words have the meanings indicated. 2 
 
 (2) (i) “Resale” means the second or subsequent sale of a ticket. 3 
 
 (ii) “Resale” includes a sale by any means, including in person, by 4 
telephone, by mail, by e–mail, by facsimile, or through a website or other electronic means. 5 
 
 (3) “Reseller” means a person [who offers a ticket for resale] ENGAGED IN 6 
THE RESALE OF TICKET S. 7 
 
 (4) “SECONDARY TICKET EXCH ANGE” MEANS AN ELECTRONIC 8 
MARKETPLACE THAT ENA BLES CONSUMERS TO SELL, PURCHASE, AND RESELL 9 
TICKETS.  10 
 
 (5) (i) “Speculative ticket” means a ticket that is not in the actual or 11 
constructive possession of a reseller at the time of sale. 12 
 
 (ii) “Speculative ticket” includes a ticket sold by a reseller that, at 13 
the time of resale: 14 
 
 1. Is not in the physical possession of the reseller; 15 
 
 2. Is not owned by the reseller; or 16 
 
 3. Is not under contract to be transferred to the reseller. 17 
 
 [(5)] (6) “Ticket” means physical, electronic, or other evidence, that 18 
grants the possessor of the evidence [permission] LICENSE to enter a place of 19 
entertainment for one or more events at a specified date and time. 20 
 
 (7) (I) “TICKET ISSUER” MEANS A PERSON THAT , DIRECTLY OR 21 
INDIRECTLY, ISSUES INITIAL TICKE TS FOR AN ENTERTAINM ENT EVENT. 22 
 
 (II) “TICKET ISSUER” INCLUDES: 23 
 
 1. A MUSICIAN OR MUSICAL GROUP; 24 
 
 2. AN OPERATOR OF A VENU E; 25 
 
 3. A SPONSOR OR A PROMOTE R OF AN ENTERTAINMEN T 26 
EVENT; 27 
   	HOUSE BILL 701 	3 
 
 
 4. A SPORTS TEAM PARTICIP	ATING IN AN 1 
ENTERTAINMENT EVENT ; 2 
 
 5. A SPORTS LEAGUE WHOSE TEAMS ARE 3 
PARTICIPATING IN AN ENTERTAINMENT EVENT ; 4 
 
 6. A THEATER COMPANY ; 5 
 
 7. A MARKETPLACE OPERATED FOR CONSUMERS TO 6 
MAKE AN INITIAL PURC HASE OF TICKETS ; OR 7 
 
 8. AN AGENT OF ANY OF TH E PERSONS LISTED IN ITEMS 8 
1 THROUGH 7 OF THIS SUBPARAG RAPH. 9 
 
 (B) THIS SECTION DOES NOT APPLY TO TICKETS SOL D FOR A SERIES OF 10 
EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM OR THEATER COMPANY . 11 
 
 (C) (1) THIS SUBSECTION APPLI ES ONLY TO SECONDARY TICKET 12 
EXCHANGES , TICKET ISSUERS, AND RESELLERS . 13 
 
 (2) THE LISTING FOR A TICKET AND EACH STEP OF A T RANSACTION 14 
TO PURCHASE A TICKET SHALL: 15 
 
 (I) CLEARLY AND CONSPICUO USLY DISCLOSE THE TO TAL 16 
PRICE OF THE TICKET , INCLUDING ALL FEES A ND TAXES; 17 
 
 (II) PROVIDE AN ITEMIZED L ISTING OF ALL CHARGE S THAT 18 
COMPRISE THE TO TAL PRICE OF THE TIC KET, INCLUDING ALL FEES A ND TAXES; AND 19 
 
 (III) IDENTIFY THE SEAT NUM BER AND ZONE OR SECT ION OF THE 20 
TICKET, TO THE EXTENT APPLIC ABLE TO THE SEAT AND VENUE. 21 
 
 (C) A RESELLER SHALL PROVI DE THE TICKET ISSUER WITH THE CONTACT 22 
INFORMATION OF THE RESALE TICKET PURCHASER TO ENABLE THE TICKET ISSUER 23 
TO NOTIFY THE RESALE TICKET PURCHASER OF ANY CHANGE IN THE EV ENT 24 
CIRCUMSTANCES , SUCH AS AN EVENT CAN CELLATION OR RESCHED ULING. 25 
 
 (D) (1) THIS SUBSECTION DOES NOT APPLY TO A FEE T HAT A SECONDARY 26 
TICKET EXCHANGE MAY CHA RGE FOR THE SERVICE OF PROVIDING A MARKE TPLACE 27 
FOR THE RESALE OF A TICKET. 28 
 
 (2) (I) EXCEPT AS PROVIDED UN DER SUBPARAGRAPH (II) OF THIS 29 
PARAGRAPH , THE THE TOTAL PRICE AT WHICH A RESELLER MAY SELL OR OFFER TO 30  4 	HOUSE BILL 701  
 
 
SELL A TICKET MAY NO T EXCEED THE TOTAL PRICE OF THE INITIAL TICKET , 1 
INCLUDING ALL FEES A ND TAXES IN CONNECTI ON WITH THE INITIAL TICKET. 2 
 
 (II) IF INITIAL TICKETS WE RE PURCHASED FOR A S ERIES OF 3 
EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM , THE TOTAL RESALE PRI CE 4 
OF A TICKET FOR A SINGLE EVENT MAY N OT EXCEED THE TOTAL PRICE OF A 5 
COMPARABLE TICKET , INCLUDING ALL FEES A ND TAXES. 6 
 
 (E) THE FEE THAT A SECOND ARY TICKET EXCHANGE MAY CHARGE FOR THE 7 
SERVICE OF PROVIDING A MARKETPLACE FOR TH E RESALE OF A TICKET MAY NOT 8 
EXCEED 10% OF THE TOTAL PRICE OF THE IN ITIAL TICKET. 9 
 
 (F) SUBJECT TO REASONABLE RESTRICTIONS IMPOSED BY A TICKET 10 
ISSUER, A PERSON MAY NOT PRO HIBIT OR RESTRICT TH E TRANSFER OR RESALE OF 11 
A TICKET THAT WAS MA DE AVAILABLE TO THE GENERAL PUBLIC FOR P URCHASE. 12 
 
 [(b)] (G) A reseller may not sell or offer to sell speculative tickets [unless the 13 
reseller, clearly and conspicuously, discloses to a prospective purchaser at the outset of the 14 
sales transaction: 15 
 
 (1) That the tickets are speculative tickets, and the reseller is not in 16 
possession of the tickets; 17 
 
 (2) That the reseller is making an offer to procure the tickets for the 18 
prospective purchaser; 19 
 
 (3) An approximate date on which the tickets will be delivered to the 20 
purchaser; 21 
 
 (4) The name or a description of the event for which the tickets will permit 22 
entry; 23 
 
 (5) The total number of tickets included in the transaction; 24 
 
 (6) The number of tickets for seats that are together; 25 
 
 (7) The zone or section number of the tickets, to the extent applicable to 26 
the venue; and 27 
 
 (8) For reserved seat tickets: 28 
 
 (i) The seat numbers of the tickets; or 29 
 
 (ii) If applicable, that the reseller cannot guarantee the specific seats 30 
because the tickets are speculative tickets. 31 
   	HOUSE BILL 701 	5 
 
 
 (c) (1) A reseller shall refund to a purchaser any consideration or deposit paid 1 
for tickets sold under this section if the reseller fails to obtain the tickets: 2 
 
 (i) Within 24 hours after the approximate date of delivery specified 3 
in subsection (b)(2) of this section, but before the commencement of the event for which the 4 
tickets were sold; or 5 
 
 (ii) In conformity with the disclosures required under this section. 6 
 
 (2) A reseller shall make a refund required under this subsection not later 7 
than 10 days after the final day of the event for which the tickets were sold]. 8 
 
 (H) A SECONDARY TICKET EXC HANGE MAY NOT PROVID E A MARKETPLACE 9 
FOR THE RESALE OF A TICKET THAT VIOLATES THIS SECTION. 10 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11 
October 1, 2024 2025.  12 
 
 
 
 
Approved: 
________________________________________________________________________________  
 Governor. 
________________________________________________________________________________  
  Speaker of the House of Delegates. 
________________________________________________________________________________  
         President of the Senate.