SB 1160: Event Ticket Sales Practices; Ticket Scalping; Prohibited; Ticket Brokers; Repeal

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 popular events held in the State attract secondary market profiteers, commonly known as scalpers.  Scalpers often utilize computer software to navigate a ticket-selling platform and its security measures in a fraction of the time as a human being to purchase multiple tickets and conduct multiple transactions simultaneously.  For example, in 2018, thousands of tickets for a concert held in the State by recording artist Bruno Mars ended up on third-party websites at inflated prices.

     Accordingly, the purpose of this Act is to eliminate the impact of scalpers on Hawaii residents by prohibiting tickets to be sold at a higher price than the original price charged by the primary venue ticket provider.

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

     "§481B-    Event ticket sales; price scalping prohibited; exception.  (a)  It shall be unlawful for any person to sell or offer for sale event tickets for any event held in the State at a price greater than the original price as charged by the primary venue ticket provider.  This section shall not apply to a charitable organization, as defined in section 467B-1, or its employees and volunteers for event tickets resold or offered for resale through a raffle, auction, or similar fundraising activity for the benefit of a charitable organization's charitable purposes.

     (b)  For the purposes of this section, "primary venue ticket provider" 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 the owner, operator, manager, or provider, that engages in the primary sale of event tickets or retains the authority to otherwise distribute tickets."

     SECTION 3.  Section 481B-15, Hawaii Revised Statutes, is repealed.

     ["[§481B-15]  Ticket brokers; fees; cancellation.  (a)  No ticket broker shall charge a fee for the use of a credit card to purchase tickets without first disclosing that a fee will be charged.

     (b)  A ticket broker shall refund any and all service fees charged for the purchase of a ticket when the public exhibition, game, contest, or performance for which the ticket was purchased is canceled.

     (c)  For the purposes of this section, "ticket broker" means any person engaged in the business of selling 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 4.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2050.

Report Title:

Event Ticket Sales Practices; Ticket Scalping; Prohibited; Ticket Brokers; Repeal

Description:

Prohibits the sale of tickets at higher price than the original price charged by the primary venue ticket provider for events held in the State.  Repeals provisions relating to ticket brokers.  Effective 7/1/2050.  (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 popular events held in the State attract secondary market profiteers, commonly known as scalpers.  Scalpers often utilize computer software to navigate a ticket-selling platform and its security measures in a fraction of the time as a human being to purchase multiple tickets and conduct multiple transactions simultaneously.  For example, in 2018, thousands of tickets for a concert held in the State by recording artist Bruno Mars ended up on third party websites at inflated prices.

     Accordingly, the purpose of this Act is to eliminate the impact of scalpers on Hawaii residents by prohibiting tickets to be sold at a higher price than the original price charged by the primary venue ticket provider.

     SECTION 2.  Section 481B-15, Hawaii Revised Statutes, is repealed.

     ["[§481B-15]  Ticket brokers; fees; cancellation.  (a)  No ticket broker shall charge a fee for the use of a credit card to purchase tickets without first disclosing that a fee will be charged.

     (b)  A ticket broker shall refund any and all service fees charged for the purchase of a ticket when the public exhibition, game, contest, or performance for which the ticket was purchased is canceled.

     (c)  For the purposes of this section, "ticket broker" means any person engaged in the business of selling 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 3.  (a)  It shall be unlawful for any person to sell or offer for sale event tickets for any event held in the State at a price greater than the original price as charged by the primary venue ticket provider.  This section shall not apply to a charitable organization, as defined in section 467B-1, Hawaii Revised Statutes, or its employees and volunteers for event tickets resold or offered for resale through a raffle, auction, or similar fundraising activity for the benefit of a charitable organization's charitable purposes.

     (b)  For the purposes of this section, "primary venue ticket provider" 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 the owner, operator, manager, or provider, that engages in the primary sale of event tickets or retains the authority to otherwise distribute tickets.

     SECTION 4.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.

     SECTION 7.  This Act shall take effect on July 1, 2025.

Report Title:

Event Ticket Sales Practices; Ticket Scalping; Prohibited; Ticket Brokers; Repeal

Description:

Prohibits the sale of tickets at higher price than the original price charged by the primary venue ticket provider for events held in the State.  Repeals provisions relating to ticket brokers.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 popular events held in the State attract secondary market profiteers, commonly known as scalpers.  Scalpers often utilize computer software to navigate a ticket-selling platform and its security measures in a fraction of the time as a human being to purchase multiple tickets and conduct multiple transactions simultaneously.  For example, in 2018, thousands of tickets for a concert held in the State by recording artist Bruno Mars ended up on third party websites at inflated prices.

     Accordingly, the purpose of this Act is to eliminate the impact of scalpers on Hawaii residents by prohibiting tickets to be sold at a higher price than the original price charged by the primary venue ticket provider.

     SECTION 2.  Section 481B-15, Hawaii Revised Statutes, is repealed.

     ["[§481B-15]  Ticket brokers; fees; cancellation.  (a)  No ticket broker shall charge a fee for the use of a credit card to purchase tickets without first disclosing that a fee will be charged.

     (b)  A ticket broker shall refund any and all service fees charged for the purchase of a ticket when the public exhibition, game, contest, or performance for which the ticket was purchased is canceled.

     (c)  For the purposes of this section, "ticket broker" means any person engaged in the business of selling 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 3.  (a)  It shall be unlawful for any person to sell or offer for sale event tickets at a price greater than the original price as charged by the primary venue ticket provider.  This section shall not apply to a charitable organization, as defined in section 467B-1, Hawaii Revised Statutes, or its employees and volunteers for event tickets resold or offered for resale through a raffle, auction, or similar fundraising activity for the benefit of a charitable organization's charitable purposes.

     (b)  For the purposes of this section, "primary venue ticket provider" 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 the owner, operator, manager, or provider, that engages in the primary sale of event tickets or retains the authority to otherwise distribute tickets.

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.

     SECTION 6.  This Act shall take effect on July 1, 2025.

Report Title:

Event Ticket Sales Practices; Ticket Scalping; Prohibited; Ticket Brokers; Repeal

Description:

Prohibits the sale of tickets at higher price than the original price charged by the primary venue ticket provider.  Repeals provisions relating to ticket brokers.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 898

Honolulu, Hawaii

RE:    S.B. No. 1160

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and Judiciary, to which was referred S.B. No. 1160, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Prohibit the sale of tickets at a higher price than the original price charged by the primary venue ticket provider for events held in the State; and

     (2)  Repeal section 481B-15, Hawaii Revised Statutes, relating to ticket brokers.

     Your Committees received testimony in support of this measure from the Music Artists Coalition, iHeartMedia Honolulu, Hawaii Theatre Center, Hawaii Symphony Orchestra, and twenty-three individuals.

     Your Committees received testimony in opposition to this measure from SeatGeek and Sports Fans Coalition.

     Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs.

     Your Committees find that the practice of scalping tickets has a significant, harmful impact on local consumers in the State.  Scalpers often use computer software to conduct multiple transactions simultaneously on ticket-selling platforms, sometimes buying out thousands of tickets in a fraction of the time it would take a natural person to complete the same transactions.  After artificially creating a low supply by buying up as many tickets as possible, scalpers then take advantage of the ratio of high demand against the now-lowered availability of tickets by selling the tickets at costs exceeding their original sale prices.  Instead of being able to simply purchase a ticket at the price point that was calculated to appropriately reflect the costs of production, consumers are then left with the option of missing a show or paying an exorbitant price for a ticket held by a third-party entity.  This measure will address the predatory practice of scalping by prohibiting third-party resellers from selling tickets at prices higher than the original price charged by the venue ticket provider.  In addition to protecting consumers, this measure will also support the arts by enhancing and safeguarding the public's access to performances.

     Your Committees have amended this measure by:

     (1)  Codifying its provisions as a new section under chapter 481B, Hawaii Revised Statutes, rather than session law;

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1160, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1160, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Judiciary,

STAND. COM. REP. NO. 126

Honolulu, Hawaii

RE:    S.B. No. 1160

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 1160 entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Prohibit the sale of tickets at a higher price than the original price charged by the primary venue ticket provider; and

     (2)  Repeal provisions relating to ticket brokers.

     Your Committee received testimony in support of this measure from Manoa Valley Theater, BAMP Project, Rick Bartalini Presents, and sixteen individuals.

     Your Committee received testimony in opposition to this measure from the Chamber of Progress and one individual.

     Your Committee received comments on this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs, Department of the Attorney General, and one individual.

     Your Committee finds that a secondary market has increased in prevalence and importance in the buying and selling of tickets for events outside of official channels.  This secondary market has capitalized on high demand and allowed fraudulent activities by "scalpers" who frequently utilize computer software to artificially increase prices for consumers.  Your Committee believes that providing stronger regulations to the secondary ticket selling market is necessary to address predatory dynamic pricing used to inflate the cost of tickets.  Accordingly, this measure will ensure protection for consumers against predatory reselling behaviors by prohibiting any resale of tickets to be listed higher than the original price of a ticket by the primary venue.

     Your Committee notes the testimony of the Department of the Attorney General raising concerns that this measure may be subject to challenge under the commerce clause of the Unites States Constitution if not limited to activities within the State.

     Accordingly, your Committee has amended this measure by:

     (1)  Clarifying that the price restrictions for the sale of event tickets in this measure are only applicable to events held within the State; and

     (2)  Inserting a severability clause.

     As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1160, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1160, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,