Update: 10 Year Analysis Complete for House Bill 1648

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UPDATE: The 10 year analysis for HB 1648, titled AN ACT Relating to ticket sales, has been completed. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year		Business and Professions
2024		$3,535,000
2025		$3,535,000
2026		$3,535,000
2027		$3,535,000
2028		$3,535,000
2029		$3,535,000
2030		$3,535,000
2031		$3,535,000
2032		$3,535,000
2033		$3,535,000
Total:		$35,350,000

Washington State University:

Section 7.(3): WSU Athletics ticket revenues will decrease due to restrictions on dynamic pricing. WSU dynamically prices events as circumstances change during the course of an athletic season. Examples may be include changes in team performance, opponent performance, additional gameday programming, or special “giveaways”. The cost is indeterminate but over $50,000.

University of Washington:

Section 5(b) requires ticket sellers and resellers to maintain a permanent public office or place of business in Washington state. The UW currently contracts with an out-of-state vendor to sell season/group tickets on the secondary market. Approximately $2 million in revenue is generated though these sales. The UW expects that this revenue will be significantly impacted, as UW would have to leave or modify its existing contract (scheduled to end in 2027) and instead contract with smaller, in-state vendors that may be unable to offer the full range of marketing and other services that UW currently receives. This portion has been included in the cash reciepts section, in addition to expenditures, because of the potential loss of ticket revenue associated with using smaller vendors with fewer resources. 

Section 7(2) prohibits charging a delivery fee for admission tickets delivered electronically.  The UW currently charges several types of fees for athletics tickets, including processing and credit card fees for both single game and season tickets. It is unclear if these fees will be affected by this prohibition, as “delivery fee” is not defined in the measure. However, any impact could be significant, as single game tickets generate between $250,000-300,000 on average per year in processing fees that are remitted to the ticket vendor. The UW could be required to make up for some or all the lost revenue under the terms of the contract should this measure pass. 

Section 7(3) limits sales of dynamically priced tickets to 10 percent above the face value of the admission ticket. The UW utilizes dynamic ticket pricing for its games and the revenue brought in varies widely year-to-year depending on the success of the teams. However, the limitations on dynamic pricing would likely have an impact in the $100,000s, especially during successful seasons for popular sports.  

Overall, the impact to cash receipts for the University of Washington Athletics Department from HB 1648 is indeterminate, though likely well over $50,000 per year.

Ten-year projection prepared in consultation with the following agencies:

Department of Licensing
University of Washington
Washington State University


Bill sponsors and contact information:

Representative Kristine Reeves, Prime Sponsor
Democrat
(360) 786-7830
kristine.reeves@leg.wa.gov

Representative Cindy Ryu
Democrat
(360) 786-7880
cindy.ryu@leg.wa.gov

Representative Liz Berry
Democrat
(360) 786-7860
Liz.Berry@leg.wa.gov

Representative Amy Walen
Democrat
(360) 786-7848
WALEN_AM@leg.wa.gov

Representative Tarra Simmons
Democrat
(360) 786-7934
Tarra.Simmons@leg.wa.gov

Representative Alex Ramel
Democrat
(360) 786-7970
alex.ramel@leg.wa.gov

Representative Tina Orwall
Democrat
(360) 786-7834
tina.orwall@leg.wa.gov

Representative Davina Duerr
Democrat
(360) 786-7928
DUERR_DA@leg.wa.gov

Representative Mia Gregerson
Democrat
(360) 786-7868
mia.gregerson@leg.wa.gov

Representative Beth Doglio
Democrat
(360) 786-7940
beth.doglio@leg.wa.gov

Representative Monica Jurado Stonier
Democrat
(360) 786-7872
monica.stonier@leg.wa.gov

Representative Gerry Pollet
Democrat
(360) 786-7886
gerry.pollet@leg.wa.gov

Representative Melanie Morgan
Democrat
(360) 786-7906
MORGAN_ME@leg.wa.gov




Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp