SB 131 — Revises provisions relating to the resale of tickets to an athletic contest or live entertainment event. (BDR 52-64)

(ReprintedSenate withBill amendmentsNo. adopted on May 22, 2019) SECOND REPRINT S.B.

131131–Senator SWoodhouse ENATEJoint BSponsor: ILLN O.

131–SENATORAssemblyman WYeager OODHOUSECHAPTER.......... F EBRUARY 6, 2019 ____________ JOINT SPONSOR :

ASSEMBLYMAN Y EAGER ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to the resale of tickets to an athletic contest or live entertainment event.

(BDR 52-64) FISCAL NOTE:

Effect on Local Government:

Increases or Newly Provides for Term of Imprisonment in County or City Effect on the State:

No.lity.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law prohibits a number of deceptive trade practices, including, without athleticlimitation, contestsknowing violations of requirements related to the resale of tickets to 598.3984) Under existing law, the Attorney General, the Commissioner of7- Consumer Affairs and livethe entertainmentDirector events.of the Department of Business and Industry are authorized to investigate deceptive trade practices and take certain actions to penalize persons who commit a deceptive trade practice, which may include, without limitation, criminal prosecution and the imposition of civil penalties.

(NRS 598.09223, 598.397-ickets to 598.3984) Under existing law, the Attorney General, the Commissioner of Consumer Affairs and the Director of the Department of Business and Industry are authorized to investigate deceptive trade practices and take certain actions to penalize persons who commit a deceptive trade practice, which may include, 598.0903-598.0999) This bill imposes additional requirements related to the sale ofSof tickets to athletic contests and live entertainment events and makes a knowing violation of those requirements a deceptive trade practice.

Section 3 of this bill prohibits a reseller, a secondary ticket exchange or any affiliate of a reseller or secondary ticket exchange from reselling a ticket without feesdisclosing tothe betotal charged.l amount to be charged for the ticket, including a disclosure of the -fees *SB131_R2* – 2 – Section 6 of this bill requires a reseller, a secondary ticket exchange or any affiliate of a reseller or secondary ticket exchange to displaybe withincharged. the top 20 percent of each page of his or her website a notice that the website belongs to a reseller, a secondary ticket exchange or an affiliate of a reseller or secondary ticket exchange.

Section 6 alsoof prohibitsthis bill requires a reseller, a secondary ticket exchange or any affiliatepercent of aeach resellerpage orof secondaryhis ticket exchange from advertising or representingher resellerwebsite or secondary ticket exchange is a personnotice whothat has the rightwebsite belongs to makea thetereseller, of the initial sale of a secondary ticket toexchange a consumer or whoan hasaffiliate theof initial ownership rights to a ticketreseller before its public sale, without contractual authorization to do so from the person or entitysecondary who has the initial ownership rights to the ticket beforeexchange. its public sale.

Section 6 also prohibits a reseller, a secondary ticket exchange or any affiliate of a reseller or secondary ticket exchange from advertising or representing on its Internet website that the reseller, secondary ticket exchange or affiliate of the reseller or secondary ticket exchange is a person who has the right to make the initial sale of a ticket to a consumer or who has the initial ownership rights to a ticket before its public sale, without contractual authorization to do so from the person or entity who has the initial ownership rights to the ticket before its public sale.

Section 7 also prohibits a primary ticket provider, a reseller, a secondary ticket exchange or any affiliate of a primary ticket provider, a reseller or a secondary ticket exchange from reselling 80th Session (2019) – 2 – a ticket before the ticket has been made available to the public by the person who has the initial ownership rights to the ticket before its public sale without first obtaining authorization to do so from the person or entity who has initial ownership rightsrighExisting law prohibits a person from using an Internet robot to circumvent any portion of the process for purchasing a ticket beforeon itsan publicInternet sale.website or to disguise the identity of a ticket purchaser so as to purchase a number of tickets exceeding the maximum number of tickets allowed for purchase by a person.

Existing(NRS law598.398) Section 8 of this bill prohibits a person from usingreselling anor Internetoffering robotfor toresale circumventa anyticket portionthat ofwas theobtained processin forviolation purchasingof athese ticketprovisions on anthe Internetmisuse websiteof orInternet torobots disguiseif the identityperson ofparticipated ain ticketor purchaserhad sothe asability to purchasecontrol athe numberconduct ofwhich ticketsconstituted exceedingthe violation or knew that the maximumticket numberwas acquired in violation of ticketsthe allowedprohibition foron purchasethe bymisuse aof person.Internet robots.

(NRS 598.398) Section 8 of this bill prohibits a person from reselling or offering for resale a ticket that was obtained in violation of these provisions on the misuse of Internet robots if the violation or knew that the ticket was acquired in violation of the prohibitionuted on the misuse of Internet robots.

(1) specifies that such an action may be brought in district court;violation of the requirements related to ticket resales;

(2)and increases(3) theprovides amountfor ofincreasing damages thatand apenalties person can seek for aeach firstsubsequent violationviolation. of the requirements related to ticket resales;

andSection (3)10 providesalso for specifies the county in which such an action may be brought.on.brought.

Section 10 also Existing law requires the Bureau of Consumer Protection in the Office of the Attorney General to establish a statewide hotline and Internet website by which a person can file a complaint related to a deceptive trade practice involving ticket resellers and secondary ticket exchanges.

Section 9 also requires that any form made available by the Bureau of Consumer Protection complaints.ngfor receiving such complaints be designed specifically for receiving such Sectionscomplaints. 1.5, 2, 4, 5, 11 and 12 of this bill define terms and make conforming changes.

-Sections *SB131_R2*1.5, –2, 34, –5, THE11 PEOPLEand OF12 THEof STATEthis OFbill NEVADA,define REPRESENTEDterms INand SENATEmake ANDconforming ASSEMBLY,changes. DO ENACT AS FOLLOWS:

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

80th Session (2019) – 3 – 2.

- *SB131_R2* – 4 – 3.

The notice required by this subsection must be displayed within the top 20 percent of 80th Session (2019) – 4 – each page of the Internet website in a font size that is not smaller than the font size used for the majority of text on that page.

598.3979Sec. [A]S 598.3979 is hereby amended to read as follows:

1.7.

InNRS addition598.3979 tois anyhereby otheramended restrictionsto imposedread byas thefollows: rights reseller or secondary ticket exchange shall not:

or598.3979 any[A] affiliate1. of a [1.] (a) Resell more than one copy of the same ticket to an athletic contest or live entertainment event.

In addition to any other restrictions imposed by the rights holder, a reseller , a secondary ticket exchange or any affiliate of a reseller or secondary ticket exchange shall not:

[1.] (a) Resell more than one copy of the same ticket to an athletic contest or live entertainment event.

or - *SB131_R2* – 5 – (2) The reseller has a written contract with the rights holder to obtain the ticket.

80th Session (2019) – 5 – Sec.

or subsection(b) 1.hatKnew that the ticket was acquired in violation of Sec.subsection 1.

Sec.