STAND. COM. REP. NO. 126

Honolulu, Hawaii

RE: S.B. No. 1160

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 1160 entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Prohibit the sale of tickets at a higher price than the original price charged by the primary venue ticket provider; and

(2) Repeal provisions relating to ticket brokers.

Your Committee received testimony in support of this measure from Manoa Valley Theater, BAMP Project, Rick Bartalini Presents, and sixteen individuals.

Your Committee received testimony in opposition to this measure from the Chamber of Progress and one individual.

Your Committee received comments on this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs, Department of the Attorney General, and one individual.

Your Committee finds that a secondary market has increased in prevalence and importance in the buying and selling of tickets for events outside of official channels. This secondary market has capitalized on high demand and allowed fraudulent activities by "scalpers" who frequently utilize computer software to artificially increase prices for consumers. Your Committee believes that providing stronger regulations to the secondary ticket selling market is necessary to address predatory dynamic pricing used to inflate the cost of tickets. Accordingly, this measure will ensure protection for consumers against predatory reselling behaviors by prohibiting any resale of tickets to be listed higher than the original price of a ticket by the primary venue.

Your Committee notes the testimony of the Department of the Attorney General raising concerns that this measure may be subject to challenge under the commerce clause of the Unites States Constitution if not limited to activities within the State.

Accordingly, your Committee has amended this measure by:

(1) Clarifying that the price restrictions for the sale of event tickets in this measure are only applicable to events held within the State; and

(2) Inserting a severability clause.

As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1160, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1160, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,

________________________________

CHRIS LEE, Chair