Maryland 2024 Regular Session

Maryland House Bill HB701 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *hb0701*
96
107 HOUSE BILL 701
118 I3 4lr0597
129 CF SB 539
1310 By: Delegate Wilson
1411 Introduced and read first time: January 26, 2024
1512 Assigned to: Economic Matters
16-Committee Report: Favorable with amendments
17-House action: Adopted
18-Read second time: March 20, 2024
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Commercial Law – Consumer Protection – Sale and Resale of Tickets 2
2519
2620 FOR the purpose of requiring the listing for a ticket and each step of a transaction to 3
2721 purchase a ticket to disclose certain information; requiring a reseller to provide the 4
2822 contact information of the resale ticket purchaser to the ticket issuer for a certain 5
2923 purpose; prohibiting a reseller from selling or offering to sell a ticket for more than 6
3024 a certain price; limiting the fee that a secondary ticket exchange may charge for the 7
3125 service of providing a marketplace for the resale of a ticket; prohibiting a person from 8
3226 restricting the transfer or resale of a ticket that was made available to the general 9
3327 public for purchase, subject to certain restrictions; repealing the exceptions to the 10
3428 prohibition against a reseller selling or offering to sell speculative tickets; prohibiting 11
3529 a secondary ticket exchange from providing a marketplace for the resale of a ticket 12
3630 that violates this Act; and generally relating to consumer protection and the sale and 13
3731 resale of tickets. 14
3832
3933 BY repealing and reenacting, with amendments, 15
4034 Article – Commercial Law 16
4135 Section 13–310.1 17
4236 Annotated Code of Maryland 18
4337 (2013 Replacement Volume and 2023 Supplement) 19
4438
4539 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
4640 That the Laws of Maryland read as follows: 21
4741
48-Article – Commercial Law 22 2 HOUSE BILL 701
42+Article – Commercial Law 22
43+
44+13–310.1. 23
45+
46+ (a) (1) In this section the following words have the meanings indicated. 24
47+
48+ (2) (i) “Resale” means the second or subsequent sale of a ticket. 25 2 HOUSE BILL 701
4949
5050
5151
52-13–310.1. 1
52+ (ii) “Resale” includes a sale by any means, including in person, by 1
53+telephone, by mail, by e–mail, by facsimile, or through a website or other electronic means. 2
5354
54- (a) (1) In this section the following words have the meanings indicated. 2
55+ (3) “Reseller” means a person [who offers a ticket for resale] ENGAGED IN 3
56+THE RESALE OF TICKET S. 4
5557
56- (2) (i) “Resale” means the second or subsequent sale of a ticket. 3
58+ (4) “SECONDARY TICKET EXCH ANGE” MEANS AN ELECTRONIC 5
59+MARKETPLACE THAT ENA BLES CONSUMERS TO SELL, PURCHASE, AND RESELL 6
60+TICKETS. 7
5761
58- (ii) “Resaleincludes a sale by any means, including in person, by 4
59-telephone, by mail, by e–mail, by facsimile, or through a website or other electronic means. 5
62+ (5) (i) “Speculative ticketmeans a ticket that is not in the actual or 8
63+constructive possession of a reseller at the time of sale. 9
6064
61- (3) “Resellermeans a person [who offers a ticket for resale] ENGAGED IN 6
62-THE RESALE OF TICKET S. 7
65+ (ii) “Speculative ticketincludes a ticket sold by a reseller that, at 10
66+the time of resale: 11
6367
64- (4) “SECONDARY TICKET EXCH ANGE” MEANS AN ELECTRONIC 8
65-MARKETPLACE THAT ENA BLES CONSUMERS TO SELL, PURCHASE, AND RESELL 9
66-TICKETS. 10
68+ 1. Is not in the physical possession of the reseller; 12
6769
68- (5) (i) “Speculative ticket” means a ticket that is not in the actual or 11
69-constructive possession of a reseller at the time of sale. 12
70+ 2. Is not owned by the reseller; or 13
7071
71- (ii) “Speculative ticket” includes a ticket sold by a reseller that, at 13
72-the time of resale: 14
72+ 3. Is not under contract to be transferred to the reseller. 14
7373
74- 1. Is not in the physical possession of the reseller; 15
74+ [(5)] (6) “Ticket” means physical, electronic, or other evidence, that 15
75+grants the possessor of the evidence [permission] LICENSE to enter a place of 16
76+entertainment for one or more events at a specified date and time. 17
7577
76- 2. Is not owned by the reseller; or 16
78+ (7) (I) “TICKET ISSUER” MEANS A PERSON THAT , DIRECTLY OR 18
79+INDIRECTLY, ISSUES INITIAL TICKETS FOR AN ENTER TAINMENT EVENT . 19
7780
78- 3. Is not under contract to be transferred to the reseller. 17
81+ (II) “TICKET ISSUER” INCLUDES: 20
7982
80- [(5)] (6) “Ticket” means physical, electronic, or other evidence, that 18
81-grants the possessor of the evidence [permission] LICENSE to enter a place of 19
82-entertainment for one or more events at a specified date and time. 20
83+ 1. A MUSICIAN OR MUSICAL GROUP; 21
8384
84- (7) (I) “TICKET ISSUER” MEANS A PERSON THAT , DIRECTLY OR 21
85-INDIRECTLY, ISSUES INITIAL TICKE TS FOR AN ENTERTAINM ENT EVENT. 22
85+ 2. AN OPERATOR OF A VENU E; 22
8686
87- (II) “TICKET ISSUER” INCLUDES: 23
87+ 3. A SPONSOR OR A PROMOTE R OF AN ENTERTAINMENT 23
88+EVENT; 24
8889
89- 1. A MUSICIAN OR MUSICAL GROUP; 24
90+ 4. A SPORTS TEAM PARTICIP ATING IN AN 25
91+ENTERTAINMENT EVENT ; 26
9092
91- 2. AN OPERATOR OF A VENU E; 25
92-
93- 3. A SPONSOR OR A PROMOTE R OF AN ENTERTAINMEN T 26
94-EVENT; 27
93+ 5. A SPORTS LEAGUE WHOSE TEAMS ARE 27
94+PARTICIPATING IN AN ENTERTAINMENT EVENT ; 28
9595 HOUSE BILL 701 3
9696
9797
98- 4. A SPORTS TEAM PARTICIP ATING IN AN 1
99-ENTERTAINMENT EVENT ; 2
98+ 6. A THEATER COMPANY ; 1
10099
101- 5. A SPORTS LEAGUE WHOSE TEAMS ARE 3
102-PARTICIPATING IN AN ENTERTAINMENT EVENT ; 4
100+ 7. A MARKETPLACE OPERATED FOR CONSUMERS TO 2
101+MAKE AN INITIAL PU RCHASE OF TICKETS ; OR 3
103102
104- 6. A THEATER COMPANY ; 5
103+ 8. AN AGENT OF ANY OF TH E PERSONS LISTED IN ITEMS 4
104+1 THROUGH 7 OF THIS SUBPARAGRAPH . 5
105105
106- 7. A MARKETPLACE OPERATED FOR CONSUMERS TO 6
107-MAKE AN INITIAL PURC HASE OF TICKETS ; OR 7
106+ (B) (1) THIS SUBSECTION APPLI ES ONLY TO SECONDARY TICKET 6
107+EXCHANGE S, TICKET ISSUER S, AND RESELLERS. 7
108108
109- 8. AN AGENT OF ANY OF TH E PERSONS LISTED IN ITEMS 8
110-1 THROUGH 7 OF THIS SUBPARAG RAPH. 9
109+ (2) THE LISTING FOR A TIC KET AND EACH STEP OF A TRANSACTIO N 8
110+TO PURCHASE A TICKET SHALL: 9
111111
112- (B) THIS SECTION DOES NOT APPLY TO TICKETS SOL D FOR A SERIES OF 10
113-EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM OR THEATER COMPANY . 11
112+ (I) CLEARLY AND CONSPICUO USLY DISCLOSE THE TOTAL 10
113+PRICE OF THE TICKET, INCLUDING ALL FEES AND TAXES ; 11
114114
115- (C) (1) THIS SUBSECTION APPLI ES ONLY TO SECONDARY TICKET 12
116-EXCHANGES , TICKET ISSUERS, AND RESELLERS . 13
115+ (II) PROVIDE AN ITEMIZED LISTING OF ALL CHARGES THAT 12
116+COMPRISE THE TOTAL PRICE OF THE TICKET, INCLUDING ALL FEES A ND TAXES; AND 13
117117
118- (2) THE LISTING FOR A TICKET AND EACH STEP OF A T RANSACTION 14
119-TO PURCHASE A TICKET SHALL: 15
118+ (III) IDENTIFY THE SEAT NUM BER AND ZONE OR SECTION OF THE 14
119+TICKET, TO THE EXTENT APPLIC ABLE TO THE SEAT AND VENUE. 15
120120
121- (I) CLEARLY AND CONSPICUO USLY DISCLOSE THE TO TAL 16
122-PRICE OF THE TICKET , INCLUDING ALL FEES A ND TAXES; 17
121+ (C) A RESELLER SHALL PROVIDE THE TICKET ISSUER WITH T HE CONTACT 16
122+INFORMATION OF THE R ESALE TICKET PURCHAS ER TO ENABLE THE TICKET ISSUER 17
123+TO NOTIFY THE RESALE TICKET PU RCHASER OF ANY CHANGE IN THE EVENT 18
124+CIRCUMSTANCES , SUCH AS AN EVENT CANCELLATION OR RESCHEDULING . 19
123125
124- (II) PROVIDE AN ITEMIZED L ISTING OF ALL CHARGE S THAT 18
125-COMPRISE THE TO TAL PRICE OF THE TIC KET, INCLUDING ALL FEES A ND TAXES; AND 19
126+ (D) (1) THIS SUBSECTION DOES NOT APPLY TO A FEE THAT A SECONDARY 20
127+TICKET EXCHANGE MAY CHARGE FOR THE SERVI CE OF PROVIDING A MA RKETPLACE 21
128+FOR THE RESALE OF A TICKET. 22
126129
127- (III) IDENTIFY THE SEAT NUM BER AND ZONE OR SECT ION OF THE 20
128-TICKET, TO THE EXTENT APPLIC ABLE TO THE SEAT AND VENUE. 21
130+ (2) (I) EXCEPT AS PROVIDED UNDER SUBPARAGRAPH (II) OF THIS 23
131+PARAGRAPH , THE TOTAL PRICE AT WHICH A RESELLER MAY SELL OR OFFER TO SELL 24
132+A TICKET MAY NOT EXC EED THE TOTAL PRICE OF THE INITIAL TICKET, INCLUDING 25
133+ALL FEES AND TAXES I N CONNECTION WITH TH E INITIAL TICKET. 26
129134
130- (C) A RESELLER SHALL PROVI DE THE TICKET ISSUER WITH THE CONTACT 22
131-INFORMATION OF THE RESALE TICKET PURCHASER TO ENABLE THE TICKET ISSUER 23
132-TO NOTIFY THE RESALE TICKET PURCHASER OF ANY CHANGE IN THE EV ENT 24
133-CIRCUMSTANCES , SUCH AS AN EVENT CAN CELLATION OR RESCHED ULING. 25
134-
135- (D) (1) THIS SUBSECTION DOES NOT APPLY TO A FEE T HAT A SECONDARY 26
136-TICKET EXCHANGE MAY CHA RGE FOR THE SERVICE OF PROVIDING A MARKE TPLACE 27
137-FOR THE RESALE OF A TICKET. 28
138-
139- (2) (I) EXCEPT AS PROVIDED UN DER SUBPARAGRAPH (II) OF THIS 29
140-PARAGRAPH , THE THE TOTAL PRICE AT WHICH A RESELLER MAY SELL OR OFFER TO 30 4 HOUSE BILL 701
135+ (II) IF INITIAL TICKETS WERE PURCHASED FOR A SERI ES OF 27
136+EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM, THE TOTAL RESALE PRICE 28
137+OF A TICKET FOR A SINGLE EVENT MAY NOT EXCEED THE TOTAL PRICE OF A 29
138+COMPARABLE TICKET, INCLUDING ALL FEES A ND TAXES. 30
139+ 4 HOUSE BILL 701
141140
142141
143-SELL A TICKET MAY NO T EXCEED THE TOTAL PRICE OF THE INITIAL TICKET , 1
144-INCLUDING ALL FEES A ND TAXES IN CONNECTI ON WITH THE INITIAL TICKET. 2
142+ (E) THE FEE THAT A SECONDARY TICKET EXC HANGE MAY CHARGE FOR THE 1
143+SERVICE OF PROVIDING A MARKETPLACE FOR THE RESALE OF A TICKET MAY NOT 2
144+EXCEED 10% OF THE TOTAL PRICE OF THE INITIAL TICKET. 3
145145
146- (II) IF INITIAL TICKETS WE RE PURCHASED FOR A S ERIES OF 3
147-EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM , THE TOTAL RESALE PRI CE 4
148-OF A TICKET FOR A SINGLE EVENT MAY N OT EXCEED THE TOTAL PRICE OF A 5
149-COMPARABLE TICKET , INCLUDING ALL FEES A ND TAXES. 6
146+ (F) SUBJECT TO REASONABLE RESTRICTIONS IMPOSED BY A TICKET 4
147+ISSUER, A PERSON MAY NOT PRO HIBIT OR RESTRICT TH E TRANSFER OR RESALE OF 5
148+A TICKET THAT WAS MADE AVAILA BLE TO THE GENERAL P UBLIC FOR PURCHASE . 6
150149
151- (E) THE FEE THAT A SECOND ARY TICKET EXCHANGE MAY CHARGE FOR THE 7
152-SERVICE OF PROVIDING A MARKETPLACE FOR TH E RESALE OF A TICKET MAY NOT 8
153-EXCEED 10% OF THE TOTAL PRICE OF THE IN ITIAL TICKET. 9
150+ [(b)] (G) A reseller may not sell or offer to sell speculative tickets [unless the 7
151+reseller, clearly and conspicuously, discloses to a prospective purchaser at the outset of the 8
152+sales transaction: 9
154153
155- (F) SUBJECT TO REASONABLE RESTRICTIONS IMPOSED BY A TICKET 10
156-ISSUER, A PERSON MAY NOT PRO HIBIT OR RESTRICT TH E TRANSFER OR RESALE OF 11
157-A TICKET THAT WAS MA DE AVAILABLE TO THE GENERAL PUBLIC FOR P URCHASE. 12
154+ (1) That the tickets are speculative tickets, and the reseller is not in 10
155+possession of the tickets; 11
158156
159- [(b)] (G) A reseller may not sell or offer to sell speculative tickets [unless the 13
160-reseller, clearly and conspicuously, discloses to a prospective purchaser at the outset of the 14
161-sales transaction: 15
157+ (2) That the reseller is making an offer to procure the tickets for the 12
158+prospective purchaser; 13
162159
163- (1) That the tickets are speculative tickets, and the reseller is not in 16
164-possession of the tickets; 17
160+ (3) An approximate date on which the tickets will be delivered to the 14
161+purchaser; 15
165162
166- (2) That the reseller is making an offer to procure the tickets for the 18
167-prospective purchaser; 19
163+ (4) The name or a description of the event for which the tickets will permit 16
164+entry; 17
168165
169- (3) An approximate date on which the tickets will be delivered to the 20
170-purchaser; 21
166+ (5) The total number of tickets included in the transaction; 18
171167
172- (4) The name or a description of the event for which the tickets will permit 22
173-entry; 23
168+ (6) The number of tickets for seats that are together; 19
174169
175- (5) The total number of tickets included in the transaction; 24
170+ (7) The zone or section number of the tickets, to the extent applicable to 20
171+the venue; and 21
176172
177- (6) The number of tickets for seats that are together; 25
173+ (8) For reserved seat tickets: 22
178174
179- (7) The zone or section number of the tickets, to the extent applicable to 26
180-the venue; and 27
175+ (i) The seat numbers of the tickets; or 23
181176
182- (8) For reserved seat tickets: 28
177+ (ii) If applicable, that the reseller cannot guarantee the specific seats 24
178+because the tickets are speculative tickets. 25
183179
184- (i) The seat numbers of the tickets; or 29
180+ (c) (1) A reseller shall refund to a purchaser any consideration or deposit paid 26
181+for tickets sold under this section if the reseller fails to obtain the tickets: 27
185182
186- (ii) If applicable, that the reseller cannot guarantee the specific seats 30
187-because the tickets are speculative tickets. 31
188- HOUSE BILL 701 5
183+ (i) Within 24 hours after the approximate date of delivery specified 28
184+in subsection (b)(2) of this section, but before the commencement of the event for which the 29
185+tickets were sold; or 30
189186
190-
191- (c) (1) A reseller shall refund to a purchaser any consideration or deposit paid 1
192-for tickets sold under this section if the reseller fails to obtain the tickets: 2
193-
194- (i) Within 24 hours after the approximate date of delivery specified 3
195-in subsection (b)(2) of this section, but before the commencement of the event for which the 4
196-tickets were sold; or 5
197-
198- (ii) In conformity with the disclosures required under this section. 6
199-
200- (2) A reseller shall make a refund required under this subsection not later 7
201-than 10 days after the final day of the event for which the tickets were sold]. 8
202-
203- (H) A SECONDARY TICKET EXC HANGE MAY NOT PROVID E A MARKETPLACE 9
204-FOR THE RESALE OF A TICKET THAT VIOLATES THIS SECTION. 10
205-
206- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
207-October 1, 2024 2025. 12
187+ (ii) In conformity with the disclosures required under this section. 31 HOUSE BILL 701 5
208188
209189
210190
191+ (2) A reseller shall make a refund required under this subsection not later 1
192+than 10 days after the final day of the event for which the tickets were sold]. 2
211193
212-Approved:
213-________________________________________________________________________________
214- Governor.
215-________________________________________________________________________________
216- Speaker of the House of Delegates.
217-________________________________________________________________________________
218- President of the Senate.
194+ (H) A SECONDARY TICKET EXC HANGE MAY NOT PROVID E A MARKETPLACE 3
195+FOR THE RESALE OF A TICKET THAT VIOLATES THIS SECTIO N. 4
196+
197+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
198+October 1, 2024. 6