California Proposes Bill to Limit Ticket Resale Prices
California is on the brink of becoming a pioneer in regulating ticket resale prices. Assemblyman Matt Haney has introduced a bill known as the California Fans First Act, aimed at capping resale ticket prices.
Key Provisions of the California Fans First Act
The bill, designated as AB 1720, proposes that resold concert tickets cannot exceed 10% above their original face value. This regulation applies to various live entertainment events, including concerts, theater performances, and comedy shows. However, it specifically excludes sports events.
Motivation Behind the Bill
According to Haney, the intention of the bill is to combat the rising costs associated with ticket resales exacerbated by bots and ticket brokers. He describes the legislation as “simple, enforceable, and fair,” aiming to protect both fans and artists.
Support and Backing for the Legislation
The California Fans First Act has attracted support from several key organizations. The National Independent Venue Association California (NIVA CA) has collaborated with Haney to push this initiative forward. NIVA CA represents independent venues struggling financially in the wake of the pandemic.
- Supporters include:
- National Independent Venue Association
- Music Artists Coalition
Comparative Legislation and Trends
Maine is currently the only other state that has enacted a similar cap, limiting resale prices to 110% of the ticket’s original value. Other states, such as New York, Washington, and Vermont, are exploring analogous measures.
Impact on Artists and Fans
Haney emphasized that the proposed 10% markup would discourage ticket brokers from manipulating the market. By lowering the resale potential, it allows artists to maintain reasonable ticket prices, creating a more accessible environment for fans.
Challenges in the Live Entertainment Sector
The live entertainment industry has faced significant challenges post-pandemic, with “no show” rates escalating from 5% to as high as 30%. This decline has impacted venues’ revenues, leaving them reliant on ticket sales, food, and beverages.
Deputy Collaboration with Existing Bills
The California Fans First Act is designed to complement existing legislation aimed at regulating speculative ticketing. AB 1349, introduced last year, seeks to eliminate deceptive ticket sales practices. Together, these bills aim to create a transparent marketplace for fans.
NIVA CA leadership has noted a growing movement across multiple states advocating for resale caps, indicating a shift towards fair ticket sales. This push reflects broader trends seen in Europe and Australia, where regulations are becoming more stringent concerning ticket resales.
Conclusion
If passed, the California Fans First Act could significantly reshape the ticket resale landscape, fostering a fairer environment for both fans and artists alike. With widespread support and collaborative efforts from various organizations, the bill showcases the pressing need for reform in the live entertainment industry.
