You asked why, based on a review of the public hearing and legislative chamber transcripts, the General Assembly repealed the general prohibition against ticket scalping and instead adopted a ban on ticket scalping on the day of an event and in its vicinity.

SUMMARY

The 2007 legislation eliminates the surcharge cap on businesses that resold tickets to Connecticut entertainment events, requires resellers to provide refunds in certain situations, and prohibits, with a few exceptions, reselling tickets near an event.

The General Law Committee heard public hearing testimony on a bill to eliminate the surcharge cap. There were three speakers. Attorney General Blumenthal indicated that he saw no reason to pass the legislation. Nick Eve, representing a Vernon business that provides software to ticket resellers and that operates a ticket exchange service, supported the bill. He supported the bill and said that it would (1) drive the prices of resold tickets downward as local resellers become more efficient, (2) give season ticket holders more ways to sell tickets they cannot use, and (3) allow in-state resellers to compete against out-of-state resellers who were not subject to Connecticut's surcharge cap.

The third and final speaker on the bill was Michael Norton from Ticketmaster. He opposed the bill, stating that his firm preferred the status quo.

Senator Colapietro, when introducing the bill in the Senate, indicated that it would level the playing field between in-state and out-of-state ticket resellers. Representative Stone, when introducing the bill in the House, stated that it would revise the law on reselling tickets.

2007 LEGISLATION

The legislature revised the law restricting ticket scalping by (1) eliminating the prohibition against reselling tickets (“scalping”); (2) requiring ticket resellers to provide refunds if (a) the event is cancelled or (b) the ticket does not grant admission to the event or is not as advertised; and (3) generally prohibiting reselling tickets within 1,500 feet of an event on the day of the event. In addition, the act increases the penalty for “criminal simulation. ”

Eliminated Service Charge Cap

The 2007 act eliminates the prohibition against selling, offering to sell, or attempting to sell tickets to sporting or entertainment events to be held in Connecticut at a price greater than $ 3 above the price, including tax, printed on the face of the ticket (PA 07-206). The law only applied to Connecticut ticket resellers selling tickets to events taking place in Connecticut.

Under prior law, a violator of the prohibition was guilty of ticket scalping. A first offense was a class C misdemeanor, punishable by up to three months imprisonment, a fine of up to $ 500, or both. A second offense was a class A misdemeanor, punishable by up to one year imprisonment, a fine of up to $ 2,000, or both. Any subsequent offense was a class D felony, punishable by one to five years imprisonment, a fine of up to $ 5,000, or both. The sale of each ticket constituted a separate offense. Prior law allowed an owner to authorize someone to sell tickets at a price above the cap.

Refunds

The 2007 act requires a reseller of a ticket to an entertainment event to refund the purchase price if (1) the event is cancelled, (2) the ticket the purchaser receives does not grant admission to the event the ticket describes, or (3) the ticket fails to conform to the reseller's advertisement of it. It defines “entertainment event” to include sporting events, concerts, or theatrical or operatic performances. The refunded amount must include all service fees and delivery charges the purchaser paid. The act requires resellers to provide each purchaser with the reseller's name, address, telephone number, or other information needed to allow the purchaser contact the reseller to obtain a refund, if necessary. Someone who fails to give a refund if the event is cancelled or the ticket does not grant admission to the event commits a class B misdemeanor, punishable by up to six months imprisonment, a fine of up to $ 1,000, or both.

Reselling Restrictions

The act prohibits reselling, offering to resell, or soliciting the resale of a ticket to an entertainment event on the day of the event within 1,500 feet of the physical structure in which the entertainment event takes place. But it allows the owner or operator of the structure or the event, or a duly authorized agent, to authorize such resales in writing. The restriction also does not apply to a ticket reseller who (1) resells a ticket for no more than face value or (2) has a permanent office within 1,500 feet of the structure, if the reseller sells, offers to resell or solicits the resale only within the office in person, by mail or telephone, or over the Internet. Someone who violates these restrictions commits a class A misdemeanor.

Criminal Simulation

The act increases the penalty for criminal simulation by reclassifying it from a class A misdemeanor to a class D felony. Criminal simulation occurs when someone (1) with intent to defraud, makes or alters an object, such as a ticket to an entertainment event, in a way to make it appear to have an antiquity, rarity, source, or authorship that it does not have or (2) with knowledge of its true character and with intent to defraud, issues or possesses such an object.

PUBLIC HEARING TESTIMONY

The General Law Committee heard public hearing testimony on An Act Concerning the Resale of Tickets to Entertainment Events (HB 5972) on February 13, 2007. Attorney General Blumenthal spoke first on the issue. He characterized a repeal of the ticket scalping law as unfounded and asked the committee to reject it.

The first non-governmental speaker to address the bill was Nick Eve, testifying on behalf of his company, Ticket Network, located in Vernon Connecticut. He stated that his company, an employer of 117, provides software and advertising services to ticket resellers and is one of four major ticket exchanges. He said that the most important development in the ticket reselling industry in the last 10 years is the development of the ticket exchanges, which bring together ticket brokers and individual ticket sellers on a variety of Internet websites. As these exchanges have grown, he asserted, “states in our region and across the country [have relaxed] their ticket resale laws to allow more free and open markets. ” He added that there would be several benefits of doing so, such as economic growth by helping companies like his and allowing Connecticut resellers to sell ticket to events held both in and out of the state. He said that the open market would generally drive ticket prices down as local resellers achieve service efficiencies and would give season ticket holders more ways to sell tickets that they cannot use. In response to questioning, Eve described how his company operates, including its refund policy. Also in response to questions, Eve argued against any cap on the amount a ticket reseller could charge, saying that it would simply give the market for high-demand events to out of state ticket resellers that were not restricted by Connecticut's surcharge cap.

The second public speaker was also an industry representative, Michael Norton of Ticketmaster. He opposed the bill. He said that Ticketmaster is not a reseller but instead contracts with a venue, like the Hartford Civic Center, to sell tickets on its behalf.

LEGISLATIVE PROCEEDINGS

The General Law Committee favorably reported HB 5972 on March 14, 2007. The House of Representatives referred the bill to the Judiciary Committee. The committee allowed that measure to die, but added its substance to another bill, SB 1043, and reported it to the floor on April 27.

The Senate considered the bill on June 5, 2007. Senator Colapietro introduced a minor amendment, urged the bill's passage, and said that it would put Connecticut ticket resellers on the same footing as resellers in other states not subject to Connecticut's $ 3 surcharge cap. The bill passed on consent.

The House considered the bill on the following day, Saturday, June 6. Representative Stone introduced the bill and stated that it revises Connecticut law on ticket reselling. The bill passed unanimously in concurrence.

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