Senator Deidre M. Henderson proposes the following substitute bill:




Chief Sponsor: Brad R. Wilson

Senate Sponsor: Deidre M. Henderson


8     General Description:
9          This bill enacts provisions related to consumer protection and event tickets.
10     Highlighted Provisions:
11          This bill:
12          ▸     enacts the Ticket Sales Act;
13          ▸     defines terms;
14          ▸     requires a person who issues a ticket to an event to issue the ticket using a delivery
15     method that enables the purchaser to lawfully resell the ticket independent of the
16     person who issued the ticket;
17          ▸     allows a person to issue a restricted ticket, under certain circumstances;
18          ▸     provides that a person who issues a restricted ticket shall give the purchaser a
19     conspicuous written disclosure stating that the ticket is nontransferrable;
20          ▸     prohibits a person from treating an individual differently because the individual
21     resold a ticket to an event or purchased a resold ticket to an event;
22          ▸     addresses required reporting to the Division of Consumer Protection; and
23          ▸     addresses enforcement of the Ticket Sales Act.
24     Money Appropriated in this Bill:
25          None

26     Other Special Clauses:
27          This bill provides a special effective date.
28     Utah Code Sections Affected:
29     AMENDS:
30          13-2-1, as last amended by Laws of Utah 2017, Chapter 98
31     ENACTS:
32          13-52-101, Utah Code Annotated 1953
33          13-52-102, Utah Code Annotated 1953
34          13-52-103, Utah Code Annotated 1953
35          13-52-201, Utah Code Annotated 1953
36          13-52-301, Utah Code Annotated 1953
37          13-52-302, Utah Code Annotated 1953

39     Be it enacted by the Legislature of the state of Utah:
40          Section 1. Section 13-2-1 is amended to read:
41          13-2-1. Consumer protection division established -- Functions.
42          (1) There is established within the Department of Commerce the Division of Consumer
43     Protection.
44          (2) The division shall administer and enforce the following:
45          (a) Chapter 5, Unfair Practices Act;
46          (b) Chapter 10a, Music Licensing Practices Act;
47          (c) Chapter 11, Utah Consumer Sales Practices Act;
48          (d) Chapter 15, Business Opportunity Disclosure Act;
49          (e) Chapter 20, New Motor Vehicle Warranties Act;
50          (f) Chapter 21, Credit Services Organizations Act;
51          (g) Chapter 22, Charitable Solicitations Act;
52          (h) Chapter 23, Health Spa Services Protection Act;
53          (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
54          (j) Chapter 26, Telephone Fraud Prevention Act;
55          (k) Chapter 28, Prize Notices Regulation Act;
56          (l) Chapter 32a, Pawnshop and Secondhand Merchandise Transaction Information Act;

57          (m) Chapter 34, Utah Postsecondary Proprietary School Act;
58          (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
59          (o) Chapter 39, Child Protection Registry;
60          (p) Chapter 41, Price Controls During Emergencies Act;
61          (q) Chapter 42, Uniform Debt-Management Services Act;
62          (r) Chapter 49, Immigration Consultants Registration Act; [and]
63          (s) Chapter 51, Transportation Network Company Registration Act[.]; and
64          (t) Chapter 52, Ticket Sales Act.
65          Section 2. Section 13-52-101 is enacted to read:

Part 1. General Provisions

68          13-52-101. Title.
69          This chapter is known as the "Ticket Sales Act."
70          Section 3. Section 13-52-102 is enacted to read:
71          13-52-102. Definitions.
72          As used in this section:
73          (1) "Division" means the Division of Consumer Protection in the Department of
74     Commerce.
75          (2) "Event" means a single, specific occurrence of a concert, game, performance, show,
76     or other occasion.
77          (3) "Exempt entity" means:
78          (a) a Division I college postseason basketball tournament; or
79          (b) a nonprofit organization that:
80          (i) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
81     Code;
82          (ii) is domiciled in the state; and
83          (iii) produces an annual international film festival in the state.
84          (4) "Restricted ticket" means a ticket to an event that is subject to a restriction that
85     prohibits the purchaser from reselling or otherwise transferring the ticket by any lawful
86     method.
87          (5) "Transferrable ticket" means a ticket to an event that a person issues using a

88     delivery method that enables the purchaser to lawfully resell the ticket independent of the
89     person who issued the ticket or the person's agent or operator.
90          Section 4. Section 13-52-103 is enacted to read:
91          13-52-103. Scope.
92          (1) This chapter does not apply to an official event of any state institution of higher
93     education, as defined in Section 53B-3-102, including an athletic event, concert, or theatrical
94     performance.
95          (2) Nothing in this chapter prohibits a venue from maintaining and enforcing one or
96     more policies regarding conduct or behavior at or in connection with the venue.
97          Section 5. Section 13-52-201 is enacted to read:
Part 2. Ticket Resale Restrictions

99          13-52-201. Limitations on ticket resale restrictions -- Exemptions -- Disclosures.
100          (1) Except as provided in Subsection (2), each ticket a person issues for an event shall
101     be a transferrable ticket.
102          (2) (a) (i) A person may issue up to 10% of the total number of tickets the person issues
103     for an event as restricted tickets.
104          (ii) The total number of tickets described in Subsection (2)(a)(i):
105          (A) includes each ticket that provides access to the event, regardless of whether the
106     ticket is made available for sale; and
107          (B) does not include a ticket that is part of a youth basketball program associated with
108     a professional sports team where tickets are donated or issued at a reduced rate.
109          (b) Notwithstanding Subsection (2)(a), each calendar year, a venue may issue an
110     unlimited number of restricted tickets for up to 10% of the total concert and theater events held
111     at the venue during the calendar year.
112          (c) Notwithstanding Subsections (2)(a) and (b), an exempt entity may issue an
113     unlimited number of restricted tickets.
114          (3) A person who issues a restricted ticket shall provide the purchaser a clear and
115     conspicuous written notice that states the ticket may not be resold or transferred.
116          (4) A person may not discriminate against an individual or deny an individual
117     admission to an event solely because the individual:
118          (a) resold a ticket to the event independent of the person who issued the ticket or the

119     person's agent or operator; or
120          (b) purchased a resold ticket to the event independent of the person who issued the
121     ticket or the person's agent or operator.
122          Section 6. Section 13-52-301 is enacted to read:
Part 3. Enforcment and Reporting

124          13-52-301. Enforcement powers -- Penalty.
125          (1) The division may enforce the provisions of this chapter in accordance with Chapter
126     2, Division of Consumer Protection.
127          (2) A person who violates a provision of this chapter is subject to a fine of up to $250
128     per violation.
129          Section 7. Section 13-52-302 is enacted to read:
130          13-52-302. Reporting.
131          On July 15, 2019, and January 15 and July 15 of each year thereafter, each person who
132     is subject to the provisions of this chapter shall submit a report to the division that contains the
133     following information for the six months preceding the day on which the person submits the
134     report:
135          (1) the number of transferrable tickets the person issued;
136          (2) the number of restricted tickets the person issued;
137          (3) the number of scheduled concert and theater events for which the person issued
138     tickets; and
139          (4) the number of events for which the person issued restricted tickets under
140     Subsection 13-52-201(2)(b).
141          Section 8. Effective date.
142          This bill takes effect on January 1, 2019.