EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0539* SENATE BILL 539 I3 4lr2346 CF 4lr0597 By: Senators Gile, Feldman, Beidle, and Ellis Introduced and read first time: January 24, 2024 Assigned to: Finance 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 SENATE BILL 539 (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 TICKETS. 4 (4) “SECONDARY TICKET EXCH ANGE” MEANS AN ELECTRONIC 5 MARKETPLACE THAT ENA BLES CONSUMERS TO SE LL, 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 TICKE TS FOR AN ENTERTAINM ENT 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 SENATE BILL 539 3 6. A THEATER COMPANY ; 1 7. A MARKETPLACE OPERATED FOR CONSUMERS TO 2 MAKE AN INITIA L PURCHASE OF TICKET S; 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 EXCHANGES , TICKET ISSUERS, 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 TO TAL 10 PRICE OF THE TICKET , INCLUDING ALL FEES AND TAXES ; 11 (II) PROVIDE AN ITEMIZED L ISTING OF ALL CHARGE S THAT 12 COMPRISE THE TOTAL P RICE OF THE TICKET , INCLUDING ALL FEES AND T AXES; AND 13 (III) IDENTIFY THE SEAT NUM BER AND ZONE OR SECT ION OF THE 14 TICKET, TO THE EXTENT APPLIC ABLE TO THE SEAT AND VENUE. 15 (C) A RESELLER SHALL PROVIDE THE TI CKET ISSUER WITH THE CONTACT 16 INFORMATION OF THE R ESALE TICKET PURCHAS ER TO ENABLE THE TICKET ISSUER 17 TO NOTIFY THE RESALE TICKET PURCHASER OF ANY CHANGE IN THE EV ENT 18 CIRCUMSTANCES , SUCH AS AN EVENT CAN CELLATION OR RESCHED ULING. 19 (D) (1) THIS SUBSECTION DOES NOT APPLY TO A FEE T HAT A SECONDARY 20 TICKET EXCHANGE MAY CHARGE FOR TH E SERVICE OF PROVIDI NG A MARKETPLACE 21 FOR THE RESALE OF A TICKET. 22 (2) (I) EXCEPT AS PROVIDED UN DER SUBPARAGRAPH (II) OF THIS 23 PARAGRAPH , THE TOTAL PRICE AT W HICH A RESELLER MAY SELL OR OFFER TO SEL L 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 WE RE PURCHASED FOR A S ERIES OF 27 EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM , THE TOTAL RESALE PRI CE 28 OF A TICKET FOR A SI NGLE EVENT MAY NOT E XCEED THE TOTAL PRICE OF A 29 COMPARABLE TICKET , INCLUDING ALL FEES A ND TAXES. 30 4 SENATE BILL 539 (E) THE FEE THAT A SECOND ARY TICKET EXCHANGE MAY CHARGE FOR THE 1 SERVICE OF PROVIDING A MARKETPLACE FOR TH E RESALE OF A TICKET MAY NOT 2 EXCEED 10% OF THE TOTAL PRICE O F 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 MA DE AVAILABLE TO THE GENERAL PUBLIC FOR P URCHASE. 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 SENATE BILL 539 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 EXCHANGE MAY NOT PROVIDE A MARKET PLACE 3 FOR THE RESALE OF A TICKET THAT VIOLATES THIS SECTION. 4 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5 October 1, 2024. 6