STAND. COM. REP. NO. 898

Honolulu, Hawaii

RE: S.B. No. 1160

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Judiciary, to which was referred S.B. No. 1160, S.D. 1, entitled:

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

beg 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 for events held in the State; and

(2) Repeal section 481B-15, Hawaii Revised Statutes, relating to ticket brokers.

Your Committees received testimony in support of this measure from the Music Artists Coalition, iHeartMedia Honolulu, Hawaii Theatre Center, Hawaii Symphony Orchestra, and twenty-three individuals.

Your Committees received testimony in opposition to this measure from SeatGeek and Sports Fans Coalition.

Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committees find that the practice of scalping tickets has a significant, harmful impact on local consumers in the State. Scalpers often use computer software to conduct multiple transactions simultaneously on ticket-selling platforms, sometimes buying out thousands of tickets in a fraction of the time it would take a natural person to complete the same transactions. After artificially creating a low supply by buying up as many tickets as possible, scalpers then take advantage of the ratio of high demand against the now-lowered availability of tickets by selling the tickets at costs exceeding their original sale prices. Instead of being able to simply purchase a ticket at the price point that was calculated to appropriately reflect the costs of production, consumers are then left with the option of missing a show or paying an exorbitant price for a ticket held by a third-party entity. This measure will address the predatory practice of scalping by prohibiting third-party resellers from selling tickets at prices higher than the original price charged by the venue ticket provider. In addition to protecting consumers, this measure will also support the arts by enhancing and safeguarding the public's access to performances.

Your Committees have amended this measure by:

(1) Codifying its provisions as a new section under chapter 481B, Hawaii Revised Statutes, rather than session law;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1160, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1160, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ JARRETT KEOHOKALOLE, Chair