HOUSE OF REPRESENTATIVES

H.B. NO.

2012

TWENTY-SEVENTH LEGISLATURE, 2014

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO CONSUMER PROTECTION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. The legislature finds that recent events surrounding the concert appearance of one of Hawaii's own has brought to light the down side of unregulated runaway ticket sales. Not having any statutes on the books to protect consumers while still allowing ticket sales to continue leaves Hawaii's consumers lost and vulnerable to scalpers.

The legislature finds that Hawaii is one of two states in the nation that has no anti-scalping laws. Along with the use of automated software programs, such as bots, tickets are seized as they are made available causing the situation to explode like a grenade.

The legislature finds that in order to turn things around and move on, it is important to establish some baseline standards of consumer protection for concertgoers. While the headlines may have faded, the issues raised cannot be ignored if we are able to prevent old and crazy situations similar to what recently transpired.

The legislature further finds that although this may have been the first time that the conditions that precipitated these events has bought these issues to light, to leave things just the way they are would invite more incidents, whereby fans are unable to get access, including our neighbor island fans who travel a long distance for these special events.

The legislature finds that while news of the recent issues that occurred with a particular concert has subsided, it doesn't mean that this issue can't come back to the people if no action is taken. We must create a minimal standard of consumer protection in concert ticket sales without unduly burdening or diminishing access to quality events and entertainment.

SECTION 2. Chapter 481B, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:

"481B-A Ticket sales; price limitations. (a) Subject to subsection (b), no person shall sell or offer for sale any ticket of admission or any other evidence of a right of entry to an exhibition, game, contest, athletic competition, concert, performance, or any other event, at a price greater than the sum of:

(1) The price printed on the ticket;

(2) Any tax that the seller may lawfully collect on the price printed on the ticket; and

(3) Any reasonable charge for services actually rendered and directly relating to the cost of selling or offering to sell the ticket, which charge shall not exceed four hundred per cent of the price printed on the ticket.

(b) There shall be no violation of this section if:

(1) The person selling the ticket is the primary ticket seller;

(2) The ticket is for an event taking place outside of the State; or

(3) The ticket is sold or offered for sale through an internet website where the website operator:

(A) Guarantees a full refund of the amount paid for the ticket, and any applicable servicing, handling, or processing fees, if:

(i) The ticketed event is canceled;

(ii) The purchaser is denied admission to the ticketed event, unless such denial is due to the action or omission of the purchaser; or

(iii) The ticket is not delivered to the purchaser in time for the purchaser to attend the event; and

(B) Discloses that it is not the reseller of tickets and that the price of tickets listed on that website may be higher than their original value.

(c) Each violation of this section shall be subject to the remedies provided in section 481B-4; provided that each sale or offer for sale shall constitute a separate violation.

(d) As used in this section, "primary ticket seller" means an owner or operator of a venue or sports team, manager or provider of an event, event promoter, a provider of ticketing services or an agent of such owner, operator, manager or provider, that engages in the primary sale of tickets for an event or retains the authority to otherwise distribute tickets.

481B-B Circumvention of online ticket purchase processes. (a) No person shall use computer software to circumvent a security measure, access control system, or other control or measure on a ticket seller's website that is used to ensure an equitable process for purchasing tickets, for the purpose of obtaining any ticket for subsequent sale in a manner that violates section 481B-A.

(b) A person found in violation of this section shall be subject to an administrative fine of $1,000 for each ticket obtained in a manner that violates this section.

(c) For purposes of this section, "ticket" means any ticket of admission or any other evidence of a right of entry to an exhibition, game, contest, athletic competition, concert, performance, or any other event taking place in the State."

SECTION 3. Section 440-17, Hawaii Revised Statutes, is amended to read as follows:

"440-17 Admission tickets. All tickets of admission to any boxing contest for which admission fees are charged and received shall have printed clearly upon the face thereof the purchase price of same, and no ticket shall be sold [for more than the price as printed thereon.] in a manner that violates section 481B-A."

SECTION 4. Section 440E-13, Hawaii Revised Statutes, is amended to read as follows:

"[[]440E-13[]] Admission tickets. All tickets of admission to any mixed martial arts contest for which admission fees are charged and received shall have printed clearly upon the face thereof the purchase price of same, and no ticket shall be sold for more than the [price as printed thereon.] amount allowed under section 481B-A."

SECTION 5. Section 481B-15, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) For the purposes of this section, "ticket broker" means any person [engaged in the business of] whose primary business purpose is selling or reselling tickets of admission or any other evidence of right of entry to a theater, place of amusement or entertainment, or other place where public exhibitions, games, contests, or performances are held[, at a price greater than the price printed on the ticket]."

SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 7. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2112.



 

Report Title:

Ticket Scalping; Circumvention of Online Ticket Purchase Processes; Unfair and Deceptive Practices

 

Description:

Makes using software to circumvent online safeguards to purchase event tickets for the purpose of scalping and selling or offering event tickets for more than face value plus taxes and specified service charges unfair and deceptive practices in the conduct of trade or commerce. Imposes fines. Effective July 1, 2112. (HB2012 HD2)

 

 

 

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