HF 657

3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/27/2012 05:27pm

A bill for an act
relating to commerce; regulating certain practices with respect to event tickets;
permitting restrictive ticketing systems; proposing coding for new law in
Minnesota Statutes, chapter 325E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325E.68] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For purposes of sections 325E.68 to 325E.70, the terms
defined in this section have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Event. new text end

new text begin "Event" means a concert, theatrical performance, sporting event,
exhibition, show, or similar scheduled activity taking place in this state:
new text end

new text begin (1) that is open to the general public;
new text end

new text begin (2) for which an admission fee is charged; and
new text end

new text begin (3) that is held in a venue accommodating more than 2,500 persons, including
but not limited to those venues for which public funding has been provided for the
construction, maintenance, or operation of the venue or any infrastructure related to it, or
which is located on property owned by a municipality or other government entity.
new text end

new text begin Subd. 3. new text end

new text begin Event ticket. new text end

new text begin "Event ticket" means the physical, electronic, or other form
of a certificate, document, voucher, token, or other evidence indicating that the bearer,
possessor, or person entitled to possession through purchase or otherwise has:
new text end

new text begin (1) a revocable or irrevocable right, privilege, or license to enter an event venue or
occupy a particular seat or area in an event venue with respect to one or more events; or
new text end

new text begin (2) an entitlement to purchase a right, privilege, or license with respect to one or
more future events.
new text end

new text begin Subd. 4. new text end

new text begin Resale. new text end

new text begin "Resale" includes a form of transfer or alienation, or offering for
transfer or alienation, or possession or entitlement to possession of an event ticket from
one person to another, with or without consideration, whether in person or by means of
telephone, mail, delivery service, facsimile, Internet, e-mail, or other electronic means.
Resale does not include the initial sale of an event ticket by the ticket issuer.
new text end

new text begin Subd. 5. new text end

new text begin Restrictive ticketing system. new text end

new text begin "Restrictive ticketing system" means a
system that imposes license or contractual terms on the resale of event tickets, or that
restrict the price or other term and conditions under which a ticket may be resold or
transferred. It includes a system that employs technological means for the purpose or with
the foreseeable effect of prohibiting or restricting the resale of event tickets, including but
not limited to, issuing event tickets in an electronic form that is not readily transferrable to
a subsequent purchaser, or conditioning entry into the venue on presentation of a token,
such as the original purchaser's credit card or state-issued identification card, that cannot
be readily transferred to a subsequent purchaser.
new text end

new text begin Subd. 6. new text end

new text begin Ticket issuer. new text end

new text begin "Ticket issuer" means a person that makes event tickets
available, directly or indirectly, for initial sale to the general public, and may include the
operator of a venue, the sponsor or promoter of an event, a sports team participating in an
event or a league whose teams are participating in an event, a theater company, musical
group, or similar participant in an event, or an agent of any such person. Ticket issuer
does not include the State Agricultural Society, the Minnesota State High School League
and its members, the Minnesota Amateur Sports Commission, or a person involved in or
facilitating ticket resale.
new text end

new text begin Subd. 7. new text end

new text begin Venue. new text end

new text begin "Venue" means the theater, stadium, field, hall, or other facility
where an event takes place.
new text end

Sec. 2.

new text begin [325E.70] RESTRICTIVE TICKETING SYSTEMS PERMITTED;
CONDITIONS; STUDENT TICKET EXEMPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Restrictive ticketing system permitted subject to conditions. new text end

new text begin A
ticket issuer shall not employ a restrictive ticketing system unless the consumer is given
an option to purchase a ticket that the consumer can transfer at any price, and at any time,
independent of the operator or operator's agent.
new text end

new text begin Subd. 2. new text end

new text begin Conditions for restrictive ticketing system. new text end

new text begin A restrictive ticketing system
must adhere to the following conditions:
new text end

new text begin (1) the established face value price for any given ticket shall be the same regardless
of the form or transferability of such ticket; and
new text end

new text begin (2) reasonable service charges or fees may be applied to a transferable ticket option
within a restrictive ticketing system.
new text end

new text begin Subd. 3. new text end

new text begin Exemption. new text end

new text begin Event tickets that meet the following requirements are
exempt from this section:
new text end

new text begin (1) the event ticket is sold or given by a higher education institution to a student
of that institution;
new text end

new text begin (2) the event ticket is permitted to be used for admission to the event only by a
student of that higher education institution; and
new text end

new text begin (3) the event is sanctioned by that higher education institution.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective August 1, 2012.
new text end