Committee clears bill to regulate secondary ticket market, creates 10-day face-price window

The Senate Insurance & Commerce committee voted to pass House Bill 16-50, a measure that would legalize and regulate the secondary ticket market in Arkansas while requiring consumer protections and a 10-day window in which certain tickets must be offered at face value.

University witnesses and athletic directors testified that the measure is intended to protect fans from counterfeit tickets and guarantee refunds or admission when secondary sellers fail to deliver. "If the secondary market is going to be used... the only thing we were asking is that we have regulations in place that are going to protect our consumers," Matt McCoy said.

Under the bill's provision for higher-education events, institutions must identify tickets available for public sale and hold the original face value for a 10-day window tied to the institution's public-sale date. Witnesses said institutions retain discretion over when to begin the public sale and that the provision was intended to give fans a reasonable chance to buy at face value before dynamic pricing takes effect. Officials said transaction fees referenced in the draft should be pass-through costs and that the bill mirrors language already used in other ticket-law contexts.

Senators questioned whether the measure concedes defeat on scalping but were told Arkansas has not effectively enforced paper-ticket scalping for years and that the bill shifts regulatory power to require seller contact information, guarantees, and refund protections.

The committee passed HB 16-50 by voice vote (mover: Sen. Murdoch; seconder: Sen. Boyd).