Brief ⁽¹⁾

The bill would prohibit reselling tickets for admission to entertainment events under certain circumstances. The bill provides for registration of ticket brokers and makes violation of the act a crime.

The bill would define an event to be any musical or theatrical performance, concert, exhibition, or sporting athletic contest held at a place of entertainment, open to the public, and for which an entry fee is charged. A place of entertainment would be defined to be an entertainment facility in Kansas where athletic games or contests, concerts, performances, or exhibitions are given and for which an entry fee is charged.

Event admission tickets could not be resold for a price in excess of the face price unless the ticket is sold by:

• �a nonprofit organization as long as the profit from the resale is dedicated to the purpose of the organization;



• �the sponsor, promoter, artist, or operator of the event;



• �the owner, operator, lessee, or tenant of the place where the event is held;



• �an authorized agent of one of those persons (if approved by the sponsor, such agent could impose a service charge);



• �a person who includes the ticket in a package of goods and services that includes transportation, accommodations, or meals;



• �a person who is not engaged in the business of reselling tickets; or



• �a ticket broker (but not the broker's employee), in accordance with the act.

Transactions involving a seller and a buyer outside of Kansas would not be subject to the act.

In order for a ticket broker to be exempt from the general prohibition regarding ticket resale, the broker would have to be registered with the Secretary of State and pay the annual $100 registration fee. The registration would have to contain certification that the broker:

• �engages in the resale of tickets on a regular, ongoing basis from one or more permanent or fixed locations;



• �displays at the broker's place of business a copy of the broker's registration; and



• �has not been convicted of a violation of the act within the preceding 12 months.

In addition, the broker would have to maintain a statewide toll free phone number for consumer complaints and inquiries and would have to adopt a code that advocates consumer protection, that includes a standard refund policy, and standards of professional conduct.

Fees collected under the act would be credited to the Secretary of State's Information and Copy Service Fee Fund.

Finally, no tickets containing a restriction could be resold within 1,000 feet of the property where the event takes place if that place has a permanent seating capacity of more than 5,000 people. An exception to that general prohibition would be created if the operator designates a place where restricted ticket resale could be conducted. Restricted ticket resale activities on any access-controlled highway within five miles of the event also would be prohibited.

Violation of the ticket resale provisions of the act would be a class C nonperson misdemeanor. Each ticket sale in violation of the act would be a separate offense.

Background

At the hearing on the introduced version of the bill before the House Committee on Federal and State Affairs, a representative of the Kansas Speedway Corporation and a representative of the Attorney General presented testimony in support of the bill. Written testimony in support of the bill was presented by the Athletic Directors of Kansas State University and the University of Kansas.

Opponents of the introduced version of the bill at the House Committee hearing included representatives of a ticket broker from Johnson County, the National Association of Ticket Brokers, an on-line ticket broker, and a nonprofit organization; and a professor of economics from Arizona State University.

The substitute bill was characterized as a compromise when it was presented to the House Committee by the bill's primary proponent who represented the Kansas Speedway Corporation.

The substitute bill differs from the introduced version by providing a number of exceptions, including that for registered ticket brokers, prohibiting ticket reselling in proximity to the event, and defining terms used in the bill.

The Division of the Budget's fiscal note for the introduced version of the bill states that the Office of Judicial Administration and the Kansas Association of Counties anticipate some fiscal impact from passage of the bill, but that the magnitude of the impact cannot be determined.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html