1     
CONSUMER TICKET PROTECTION AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Deidre M. Henderson

5     
House Sponsor: Mike Schultz

6     

7     LONG TITLE
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 2018, Chapters 252 and 290
31     ENACTS:
32          13-54-101, Utah Code Annotated 1953
33          13-54-102, Utah Code Annotated 1953
34          13-54-103, Utah Code Annotated 1953
35          13-54-201, Utah Code Annotated 1953
36          13-54-301, Utah Code Annotated 1953
37          13-54-302, Utah Code Annotated 1953
38     

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;
63          (s) Chapter 51, Transportation Network Company Registration Act;
64          (t) Chapter 52, Residential Solar Energy Disclosure Act; [and]
65          (u) Chapter 53, Residential, Vocational and Life Skills Program Act[.]; and
66          (v) Chapter 54, Ticket Sales Act.
67          Section 2. Section 13-54-101 is enacted to read:
68     
CHAPTER 54. TICKET SALES ACT

69     
Part 1. General Provisions

70          13-54-101. Title.
71          This chapter is known as the "Ticket Sales Act."
72          Section 3. Section 13-54-102 is enacted to read:
73          13-54-102. Definitions.
74          As used in this section:
75          (1) "Division" means the Division of Consumer Protection in the Department of
76     Commerce.
77          (2) "Event" means a single, specific occurrence of one of the following, that takes place
78     at a venue:
79          (a) a concert;
80          (b) a game;
81          (c) a performance;
82          (d) a show; or
83          (e) an occasion similar to the occasions described in Subsections (2)(a) through (d).
84          (3) "Exempt entity" means:
85          (a) a Division I college postseason basketball tournament;

86          (b) a nonprofit organization that:
87          (i) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
88     Code;
89          (ii) is domiciled in the state; and
90          (iii) produces an annual international film festival in the state; or
91          (c) a public or private postsecondary institution that is located in the state.
92          (4) "Restricted ticket" means a ticket to an event that is subject to a restriction that
93     prohibits the purchaser from reselling or otherwise transferring the ticket by any lawful
94     method.
95          (5) "Transferrable ticket" means a ticket to an event that a person issues using a
96     delivery method that enables the purchaser to lawfully resell the ticket independent of the
97     person who issued the ticket or the person's agent or operator.
98          (6) (a) "Venue" means real property located in the state where one or more persons
99     host a concert, game, performance, show, or similar occasion.
100          (b) "Venue" includes an arena, a stadium, a theater, a concert hall, an amphitheater, a
101     fairground, a club, a convention center, a public assembly facility, or a mass gathering location.
102          (7) "Venue operator" means a person who operates a venue.
103          Section 4. Section 13-54-103 is enacted to read:
104          13-54-103. Scope.
105          (1) This chapter does not apply to an event or venue of an exempt entity.
106          (2) Nothing in this chapter prohibits a venue operator from maintaining and enforcing
107     one or more policies regarding conduct or behavior at or in connection with the venue.
108          Section 5. Section 13-54-201 is enacted to read:
109     
Part 2. Ticket Resale Restrictions

110          13-54-201. Limitations on ticket resale restrictions -- Disclosures.
111          (1) Except as provided in Subsection (2), each ticket issued for an event shall be a
112     transferrable ticket.
113          (2) (a) (i) Up to 10% of the total number of tickets issued for an event may be restricted

114     tickets.
115          (ii) The total number of tickets described in Subsection (2)(a)(i):
116          (A) includes each ticket that provides access to the event, regardless of whether the
117     ticket is made available for sale; and
118          (B) does not include a ticket that is part of a youth basketball program associated with
119     a professional sports team where tickets are donated or issued at a reduced rate.
120          (b) Notwithstanding Subsection (2)(a), each calendar year, an unlimited number of
121     restricted tickets may be issued for up to 10% of the total concert and theater events held at the
122     same venue during the calendar year.
123          (3) A person who issues a restricted ticket shall provide the purchaser a clear and
124     conspicuous written notice that states the ticket may not be resold or transferred.
125          (4) A person may not discriminate against an individual or deny an individual
126     admission to an event solely because the individual:
127          (a) resold a ticket to the event independent of the person who issued the ticket or the
128     person's agent or operator; or
129          (b) purchased a resold ticket to the event independent of the person who issued the
130     ticket or the person's agent or operator.
131          Section 6. Section 13-54-301 is enacted to read:
132     
Part 3. Enforcement and Reporting

133          13-54-301. Enforcement powers -- Penalty.
134          (1) The division may enforce the provisions of this chapter in accordance with Chapter
135     2, Division of Consumer Protection.
136          (2) A person who violates a provision of this chapter is subject to a fine of up to $250
137     per violation.
138          Section 7. Section 13-54-302 is enacted to read:
139          13-54-302. Reporting.
140          (1) As used in this section, "reporting period" means:
141          (a) for a report submitted under this section in compliance with a July 15 deadline,

142     January 1 through June 30 of the calendar year in which the report is submitted; or
143          (b) for a report submitted under this section in compliance with a January 15 deadline,
144     July 1 through December 31 of the calendar year immediately preceding the calendar year in
145     which the report is submitted.
146          (2) On or before July 15, 2020, and July 15 of each year thereafter, a venue operator
147     shall submit a report described in Subsection (4) to the division, if there was an event
148     scheduled at the venue during the reporting period for which a person issued one or more
149     restricted tickets.
150          (3) On or before January 15, 2021, and January 15 of each year thereafter, a venue
151     operator shall submit a report described in Subsection (4) to the division, if there was an event
152     scheduled at the venue during the reporting period for which a person issued one or more
153     restricted tickets.
154          (4) A report submitted in accordance with this section shall contain the following
155     information:
156          (a) for each event scheduled at the venue during the reporting period and for which a
157     person issued a restricted ticket:
158          (i) the total number of tickets issued for the event;
159          (ii) the number of restricted tickets issued for the event;
160          (iii) the date of the event; and
161          (iv) the type of event;
162          (b) (i) for a report submitted in compliance with a July 15 deadline, the number of
163     concert or theater events scheduled at the venue during the reporting period; or
164          (ii) for a report submitted in compliance with a January 15 deadline, the number of
165     concert or theater events scheduled at the venue during the preceding calendar year; and
166          (c) the number of concert or theater events scheduled at the venue during the reporting
167     period for which a person issued a restricted ticket under Subsection 13-54-201(2)(b).
168          Section 8. Effective date.
169          This bill takes effect on January 1, 2020.

170