101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5011

 

Introduced 2/18/2020, by Rep. Kelly M. Cassidy

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 414/1.5  was 720 ILCS 375/1.5

    Amends the Ticket Sale and Resale Act. Provides that service fees and shipping fees may not exceed 10% of the cost of the ticket being resold.


LRB101 17871 JLS 67306 b

 

 

A BILL FOR

 

HB5011LRB101 17871 JLS 67306 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Ticket Sale and Resale Act is amended by
5changing Section 1.5 as follows:
 
6    (815 ILCS 414/1.5)  (was 720 ILCS 375/1.5)
7    Sec. 1.5. Sale of tickets at more than face value
8prohibited; exceptions.
9    (a) Except as otherwise provided in subsections (b), (c),
10(d), (e), and (f-5) of this Section and in Section 4, it is
11unlawful for any person, persons, firm or corporation to sell
12tickets for baseball games, football games, hockey games,
13theatre entertainments, or any other amusement for a price more
14than the price printed upon the face of said ticket, and the
15price of said ticket shall correspond with the same price shown
16at the box office or the office of original distribution.
17    (b) This Act does not apply to the resale of tickets of
18admission to a sporting event, theater, musical performance, or
19place of public entertainment or amusement of any kind for a
20price in excess of the printed box office ticket price by a
21ticket broker who meets all of the following requirements:
22        (1) The ticket broker is duly registered with the
23    Office of the Secretary of State on a registration form

 

 

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1    provided by that Office. The registration must contain a
2    certification that the ticket broker:
3            (A) engages in the resale of tickets on a regular
4        and ongoing basis from one or more permanent or fixed
5        locations located within this State;
6            (B) maintains as the principal business activity
7        at those locations the resale of tickets;
8            (C) displays at those locations the ticket
9        broker's registration;
10            (D) maintains at those locations a listing of the
11        names and addresses of all persons employed by the
12        ticket broker;
13            (E) is in compliance with all applicable federal,
14        State, and local laws relating to its ticket selling
15        activities, and that neither the ticket broker nor any
16        of its employees within the preceding 12 months have
17        been convicted of a violation of this Act; and
18            (F) meets the following requirements:
19                (i) the ticket broker maintains a toll free
20            number specifically dedicated for Illinois
21            consumer complaints and inquiries concerning
22            ticket sales;
23                (ii) the ticket broker has adopted a code that
24            advocates consumer protection that includes, at a
25            minimum:
26                    (a-1) consumer protection guidelines;

 

 

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1                    (b-1) a standard refund policy. In the
2                event a refund is due, the ticket broker shall
3                provide that refund without charge other than
4                for reasonable delivery fees for the return of
5                the tickets; and
6                    (c-1) standards of professional conduct;
7                (iii) the ticket broker has adopted a
8            procedure for the binding resolution of consumer
9            complaints by an independent, disinterested third
10            party and thereby submits to the jurisdiction of
11            the State of Illinois; and
12                (iv) the ticket broker has established and
13            maintains a consumer protection rebate fund in
14            Illinois in an amount in excess of $100,000, which
15            must be cash available for immediate disbursement
16            for satisfaction of valid consumer complaints.
17        Alternatively, the ticket broker may fulfill the
18    requirements of subparagraph (F) of this paragraph (1) if
19    the ticket broker certifies that he or she belongs to a
20    professional association organized under the laws of this
21    State, or organized under the laws of any other state and
22    authorized to conduct business in Illinois, that has been
23    in existence for at least 3 years prior to the date of that
24    broker's registration with the Office of the Secretary of
25    State, and is specifically dedicated, for and on behalf of
26    its members, to provide and maintain the consumer

 

 

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1    protection requirements of subparagraph (F) of this
2    paragraph (1) to maintain the integrity of the ticket
3    brokerage industry.
4        (2) (Blank).
5        (3) The ticket broker and his employees must not engage
6    in the practice of selling, or attempting to sell, tickets
7    for any event while sitting or standing near the facility
8    at which the event is to be held or is being held unless
9    the ticket broker or his or her employees are on property
10    they own, lease, or have permission to occupy.
11        (4) The ticket broker must comply with all requirements
12    of the Retailers' Occupation Tax Act and collect and remit
13    all other applicable federal, State and local taxes in
14    connection with the ticket broker's ticket selling
15    activities.
16        (5) Beginning January 1, 1996, no ticket broker shall
17    advertise for resale any tickets within this State unless
18    the advertisement contains the name of the ticket broker
19    and the Illinois registration number issued by the Office
20    of the Secretary of State under this Section.
21        (6) Each ticket broker registered under this Act shall
22    pay an annual registration fee of $100.
23    (c) This Act does not apply to the sale of tickets of
24admission to a sporting event, theater, musical performance, or
25place of public entertainment or amusement of any kind for a
26price in excess of the printed box office ticket price by a

 

 

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1reseller engaged in interstate or intrastate commerce on an
2Internet auction listing service duly registered with the
3Office of the Secretary of State on a registration form
4provided by that Office. This subsection (c) applies to both
5sales through an online bid submission process and sales at a
6fixed price on the same website or interactive computer service
7as an Internet auction listing service.
8    This subsection (c) applies to resales described in this
9subsection only if the operator of the Internet auction listing
10service meets the following requirements:
11        (1) the operator maintains a listing of the names and
12    addresses of its corporate officers;
13        (2) the operator is in compliance with all applicable
14    federal, State, and local laws relating to ticket selling
15    activities, and the operator's officers and directors have
16    not been convicted of a violation of this Act within the
17    preceding 12 months;
18        (3) the operator maintains, either itself or through an
19    affiliate, a toll free number dedicated for consumer
20    complaints;
21        (4) the operator provides consumer protections that
22    include at a minimum:
23            (A) consumer protection guidelines;
24            (B) a standard refund policy that guarantees to all
25        purchasers that it will provide and in fact provides a
26        full refund of the amount paid by the purchaser

 

 

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1        (including, but not limited to, all fees, regardless of
2        how characterized) if the following occurs:
3                (i) the ticketed event is cancelled and the
4            purchaser returns the tickets to the seller or
5            Internet auction listing service; however,
6            reasonable delivery fees need not be refunded if
7            the previously disclosed guarantee specifies that
8            the fees will not be refunded if the event is
9            cancelled;
10                (ii) the ticket received by the purchaser does
11            not allow the purchaser to enter the ticketed event
12            for reasons that may include, without limitation,
13            that the ticket is counterfeit or that the ticket
14            has been cancelled by the issuer due to
15            non-payment, unless the ticket is cancelled due to
16            an act or omission by such purchaser;
17                (iii) the ticket fails to conform to its
18            description on the Internet auction listing
19            service; or
20                (iv) the ticket seller willfully fails to send
21            the ticket or tickets to the purchaser, or the
22            ticket seller attempted to deliver the ticket or
23            tickets to the purchaser in the manner required by
24            the Internet auction listing service and the
25            purchaser failed to receive the ticket or tickets;
26            and

 

 

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1            (C) standards of professional conduct;
2        (5) the operator has adopted an independent and
3    disinterested dispute resolution procedure that allows
4    resellers or purchasers to file complaints against the
5    other and have those complaints mediated or resolved by a
6    third party, and requires the resellers or purchasers to
7    submit to the jurisdiction of the State of Illinois for
8    complaints involving a ticketed event held in Illinois;
9        (6) the operator either:
10            (A) complies with all applicable requirements of
11        the Retailers' Occupation Tax Act and collects and
12        remits all applicable federal, State, and local taxes;
13        or
14            (B) publishes a written notice on the website after
15        the sale of one or more tickets that automatically
16        informs the ticket reseller of the ticket reseller's
17        potential legal obligation to pay any applicable local
18        amusement tax in connection with the reseller's sale of
19        tickets, and discloses to law enforcement or other
20        government tax officials, without subpoena, the name,
21        city, state, telephone number, e-mail address, user ID
22        history, fraud complaints, and bidding and listing
23        history of any specifically identified reseller or
24        purchaser upon the receipt of a verified request from
25        law enforcement or other government tax officials
26        relating to a criminal investigation or alleged

 

 

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1        illegal activity; and
2        (7) the operator either:
3            (A) has established and maintains a consumer
4        protection rebate fund in Illinois in an amount in
5        excess of $100,000, which must be cash available for
6        immediate disbursement for satisfaction of valid
7        consumer complaints; or
8            (B) has obtained and maintains in force an errors
9        and omissions insurance policy that provides at least
10        $100,000 in coverage.
11    (d) This Act does not apply to the resale of tickets of
12admission to a sporting event, theater, musical performance, or
13place of public entertainment or amusement of any kind for a
14price in excess of the printed box office ticket price
15conducted at an auction solely by or for a not-for-profit
16organization for charitable purposes under clause (a)(1) of
17Section 10-1 of the Auction License Act.
18    (e) This Act does not apply to the resale of a ticket for
19admission to a baseball game, football game, hockey game,
20theatre entertainment, or any other amusement for a price more
21than the price printed on the face of the ticket and for more
22than the price of the ticket at the box office if the resale is
23made through an Internet website whose operator meets the
24following requirements:
25        (1) the operator has a business presence and physical
26    street address in the State of Illinois and clearly and

 

 

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1    conspicuously posts that address on the website;
2        (2) the operator maintains a listing of the names of
3    the operator's directors and officers, and is duly
4    registered with the Office of the Secretary of State on a
5    registration form provided by that Office;
6        (3) the operator is in compliance with all applicable
7    federal, State, and local laws relating to its ticket
8    reselling activities regulated under this Act, and the
9    operator's officers and directors have not been convicted
10    of a violation of this Act within the preceding 12 months;
11        (4) the operator maintains a toll free number
12    specifically dedicated for consumer complaints and
13    inquiries regarding ticket resales made through the
14    website;
15        (5) the operator either:
16            (A) has established and maintains a consumer
17        protection rebate fund in Illinois in an amount in
18        excess of $100,000, which must be cash available for
19        immediate disbursement for satisfaction of valid
20        consumer complaints; or
21            (B) has obtained and maintains in force an errors
22        and omissions policy of insurance in the minimum amount
23        of $100,000 for the satisfaction of valid consumer
24        complaints;
25        (6) the operator has adopted an independent and
26    disinterested dispute resolution procedure that allows

 

 

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1    resellers or purchasers to file complaints against the
2    other and have those complaints mediated or resolved by a
3    third party, and requires the resellers or purchasers to
4    submit to the jurisdiction of the State of Illinois for
5    complaints involving a ticketed event held in Illinois;
6        (7) the operator either:
7            (A) complies with all applicable requirements of
8        the Retailers' Occupation Tax Act and collects and
9        remits all applicable federal, State, and local taxes;
10        or
11            (B) publishes a written notice on the website after
12        the sale of one or more tickets that automatically
13        informs the ticket reseller of the ticket reseller's
14        potential legal obligation to pay any applicable local
15        amusement tax in connection with the reseller's sale of
16        tickets, and discloses to law enforcement or other
17        government tax officials, without subpoena, the name,
18        city, state, telephone number, e-mail address, user ID
19        history, fraud complaints, and bidding and listing
20        history of any specifically identified reseller or
21        purchaser upon the receipt of a verified request from
22        law enforcement or other government tax officials
23        relating to a criminal investigation or alleged
24        illegal activity; and
25        (8) the operator guarantees to all purchasers that it
26    will provide and in fact provides a full refund of the

 

 

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1    amount paid by the purchaser (including, but not limited
2    to, all fees, regardless of how characterized) if any of
3    the following occurs:
4            (A) the ticketed event is cancelled and the
5        purchaser returns the tickets to the website operator;
6        however, reasonable delivery fees need not be refunded
7        if the previously disclosed guarantee specifies that
8        the fees will not be refunded if the event is
9        cancelled;
10            (B) the ticket received by the purchaser does not
11        allow the purchaser to enter the ticketed event for
12        reasons that may include, without limitation, that the
13        ticket is counterfeit or that the ticket has been
14        cancelled by the issuer due to non-payment, unless the
15        ticket is cancelled due to an act or omission by the
16        purchaser;
17            (C) the ticket fails to conform to its description
18        on the website; or
19            (D) the ticket seller willfully fails to send the
20        ticket or tickets to the purchaser, or the ticket
21        seller attempted to deliver the ticket or tickets to
22        the purchaser in the manner required by the website
23        operator and the purchaser failed to receive the ticket
24        or tickets.
25    Nothing in this subsection (e) shall be deemed to imply any
26limitation on ticket sales made in accordance with subsections

 

 

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1(b), (c), and (d) of this Section or any limitation on sales
2made in accordance with Section 4.
3    (f) The provisions of subsections (b), (c), (d), and (e) of
4this Section apply only to the resale of a ticket after the
5initial sale of that ticket. The provisions of subsections (b),
6(c), and (e) only apply if the service fees and shipping fees
7do not exceed 10% of the cost of the ticket being resold. No
8reseller of a ticket may refuse to sell tickets to another
9ticket reseller solely on the basis that the purchaser is a
10ticket reseller or ticket broker authorized to resell tickets
11pursuant to this Act.
12    (f-5) In addition to the requirements imposed under
13subsections (b), (c), (d), (e), and (f) of this Section, ticket
14brokers and resellers must comply with the requirements of this
15subsection. Before accepting any payment from a purchaser, a
16ticket broker or reseller must disclose to the purchaser in a
17clear, conspicuous, and readily noticeable manner the
18following information:
19        (1) the registered name and city of the event venue;
20        (2) that the ticket broker or reseller is not the event
21    venue box office or its licensed ticket agent, but is,
22    instead, a ticket broker or reseller and that lost or
23    stolen tickets may be reissued only by ticket brokers or
24    resellers;
25        (3) whether it is registered under this Act; and
26        (4) its refund policy, name, and contact information.

 

 

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1    Before selling and accepting payment for a ticket, a ticket
2broker or reseller must require the purchaser to acknowledge by
3an affirmative act the disclosures required under this
4subsection. The disclosures required by this subsection must be
5made in a clear and conspicuous manner, appear together, and be
6preceded by the heading "IMPORTANT NOTICE" which must be in
7bold face font that is larger than the font size of the
8required disclosures.
9    Ticket brokers and resellers must guarantee a full refund
10of the amount paid by the purchaser, including handling and
11delivery fees, if any of the following occurs:
12        (1) the ticket received by the purchaser does not grant
13    the purchaser admission to the event described on the
14    ticket, unless it is due to an act or omission by the
15    purchaser;
16        (2) the ticket fails to conform substantially to its
17    description as advertised; or
18        (3) the event for which the ticket has been resold is
19    cancelled and not rescheduled.
20    This subsection (f-5) does not apply to an Internet auction
21listing service.
22    (g) The provisions of Public Act 89-406 are severable under
23Section 1.31 of the Statute on Statutes.
24    (h) The provisions of this amendatory Act of the 94th
25General Assembly are severable under Section 1.31 of the
26Statute on Statutes.

 

 

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1(Source: P.A. 99-431, eff. 1-1-16; 100-534, eff. 9-22-17.)