Bill Text: MN HF657 | 2011-2012 | 87th Legislature | Engrossed

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Bill Title: Event ticket practices regulated, and restrictive ticketing systems permitted.

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Engrossed - Dead) 2012-03-28 - Referred to Judiciary and Public Safety [HF657 Detail]

Download: Minnesota-2011-HF657-Engrossed.html

1.1A bill for an act
1.2relating to commerce; regulating certain practices with respect to event tickets;
1.3proposing coding for new law in Minnesota Statutes, chapter 325E.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. [325E.68] DEFINITIONS.
1.6    Subdivision 1. Terms. For purposes of this section and section 325E.69, the terms
1.7defined in this section have the meanings given.
1.8    Subd. 2. Event. "Event" means a concert, theatrical performance, sporting event,
1.9exhibition, show, or similar scheduled activity taking place in this state:
1.10(1) that is open to the general public;
1.11(2) for which an admission fee is charged; and
1.12(3) that is held in a venue accommodating more than 1,000 persons, including
1.13but not limited to those venues for which public funding has been provided for the
1.14construction, maintenance, or operation of the venue or any infrastructure related to it, or
1.15which is located on property owned by a municipality or other government entity.
1.16    Subd. 3. Event ticket. "Event ticket" means the physical, electronic, or other form
1.17of a certificate, document, voucher, token, or other evidence indicating that the bearer,
1.18possessor, or person entitled to possession through purchase or otherwise has:
1.19(1) a revocable or irrevocable right, privilege, or license to enter an event venue or
1.20occupy a particular seat or area in an event venue with respect to one or more events; or
1.21(2) an entitlement to purchase a right, privilege, or license with respect to one or
1.22more future events.
1.23    Subd. 4. Resale. "Resale" includes a form of transfer or alienation, or offering for
1.24transfer or alienation, or possession or entitlement to possession of an event ticket from
2.1one person to another, with or without consideration, whether in person or by means of
2.2telephone, mail, delivery service, facsimile, Internet, e-mail, or other electronic means.
2.3Resale does not include the initial sale of an event ticket by the ticket issuer.
2.4    Subd. 5. Ticket issuer. "Ticket issuer" means a person that makes event tickets
2.5available, directly or indirectly, for initial sale to the general public, and may include the
2.6operator of a venue, the sponsor or promoter of an event, a sports team participating in an
2.7event or a league whose teams are participating in an event, a theater company, musical
2.8group, or similar participant in an event, or an agent of any such person. A ticket issuer
2.9does not include a person involved in or facilitating ticket resale.
2.10    Subd. 6. Venue. "Venue" means the theater, stadium, field, hall, or other facility
2.11where an event takes place.

2.12    Sec. 2. [325E.69] FREE MARKET IN RESALE OF EVENT TICKETS.
2.13    Subdivision 1. Prohibition. It is unlawful for a ticket issuer to prohibit or restrict
2.14the resale or offering for resale of an event ticket by a lawful possessor of the ticket.
2.15    Subd. 2. Prohibited acts. Ticket issuers are prohibited from engaging in the
2.16following acts:
2.17(1) purporting to impose license or contractual terms on the initial sale of event
2.18tickets including, but not limited to, terms printed on the back of a physical ticket that
2.19prohibit resale of the ticket, or that restrict the price or other terms and conditions under
2.20which a ticket may be resold or transferred;
2.21(2) requiring the purchaser of a ticket, whether for a single event or for a series or
2.22season of events, to agree not to resell the ticket, or to resell the ticket only through a
2.23specific channel approved by the ticket issuer;
2.24(3) bringing legal action, based on an unlawful prohibition or restriction on resale of
2.25an event ticket, against:
2.26(i) a purchaser who resells or offers to resell an event ticket without permission of
2.27the ticket issuer, or in violation of a restriction purportedly imposed by the ticket issuer;
2.28(ii) persons who facilitate or provide services for the resale of event tickets without
2.29permission or in alleged violation of a restriction; or
2.30(iii) the operator of a physical or electronic marketplace in which a ticket is offered
2.31for resale without permission or in alleged violation of a restriction;
2.32(4) imposing a penalty on a ticket purchaser who resells or offers to resell an event
2.33ticket without permission or in violation of a restriction purportedly imposed by the ticket
2.34issuer, or treating a purchaser in any material way less favorably than a similarly situated
3.1purchaser who does not resell or offer to resell an event ticket, or who complies with
3.2resale restrictions purportedly imposed by the ticket issuer;
3.3(5) employing technological means for the purpose or with the foreseeable effect
3.4of prohibiting or restricting the resale of event tickets including, but not limited to,
3.5issuing event tickets in an electronic form that is not readily transferrable to a subsequent
3.6purchaser, or conditioning entry into the venue on presentation of a token, such as the
3.7original purchaser's credit card or state-issued identification card, that cannot be readily
3.8transferred to a subsequent purchaser; or
3.9(6) seeking to limit or restrict the price, or to impose a minimum or maximum
3.10price, at which an event ticket may be resold.

3.11    Sec. 3. EFFECTIVE DATE.
3.12Sections 1 and 2 are effective August 1, 2011.
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