HB0873ham001 94TH GENERAL ASSEMBLY

Consumer Protection Committee

Filed: 3/1/2005

09400HB0873ham001 LRB094 04214 RLC 42720 a

AMENDMENT TO HOUSE BILL 873

AMENDMENT NO. ______. Amend House Bill 873 by replacing everything after the enacting clause with the following:

"Section 5. The Ticket Scalping Act is amended by changing Sections 0.01, 1, and 1.5 as follows:

(720 ILCS 375/0.01) (from Ch. 121 1/2, par. 157.30)

Sec. 0.01. Short title. This Act may be cited as the Ticket Sale and Resale Scalping Act.

(Source: P.A. 86-1324.)

(720 ILCS 375/1) (from Ch. 121 1/2, par. 157.31)

Sec. 1. Sale of tickets other than at box office prohibited; exceptions.

(a) It is unlawful for any person, firm or corporation, owner, lessee, manager, trustee, or any of their employees or agents, owning, conducting, managing or operating any theater, circus, baseball park, place of public entertainment or amusement where tickets of admission are sold for any such places of amusement or public entertainment to sell or permit the sale, barter or exchange of such admission tickets at any other place than in the box office or on the premises of such theater, circus, baseball park, place of public entertainment or amusement, but nothing herein prevents such theater, circus, baseball park, place of public entertainment or amusement from placing any of its admission tickets for sale at any other place at the same price such admission tickets are sold by such theater, circus, baseball park or other place of public entertainment or amusement at its box office or on the premises of such places, at the same advertised price or printed rate thereof.

(b) Any term or condition of the original sale of a ticket to any theater, circus, baseball park, or place of public entertainment or amusement where tickets of admission are sold that purports to limit the terms or conditions of resale of the ticket (including but not limited to the resale price of the ticket) shall be unenforceable, null, and void, if the resale transaction is carried out by any of the means set forth in subsections (b), (c), (d), and (e) of Section 1.5 of this Act.

(Source: Laws 1923, p. 322.)

(720 ILCS 375/1.5) (from Ch. 121 1/2, par. 157.32)

Sec. 1.5. Sale of tickets at more than face value prohibited; exceptions.

(a) Except as otherwise provided in subsections (b), (c), (d), and (e) subsection (b) of this Section and in Section 4, it is unlawful for any person, persons, firm or corporation to sell tickets for baseball games, football games, hockey games, theatre entertainments, or any other amusement for a price more than the price printed upon the face of said ticket, and the price of said ticket shall correspond with the same price shown at the box office or the office of original distribution.

(b) This Act does not apply to the sale of tickets of admission to a sporting event, theater, musical performance, or place of public entertainment or amusement of any kind for a price in excess of the printed box office ticket price by a ticket broker who meets all of the following requirements:

(1) The ticket broker is duly registered with the Office of the Secretary of State on a registration form provided by that Office. The registration must contain a certification that the ticket broker:

(A) engages in the resale of tickets on a regular and ongoing basis from one or more permanent or fixed locations located within this State;

(B) maintains as the principal business activity at those locations the resale of tickets;

(C) displays at those locations the ticket broker's registration;

(D) maintains at those locations a listing of the names and addresses of all persons employed by the ticket broker;

(E) is in compliance with all applicable federal, State, and local laws relating to its ticket selling activities, and that neither the ticket broker nor any of its employees within the preceding 12 months have been convicted of a violation of this Act; and

(F) that the ticket broker meets the following requirements:

(i) maintains a statewide toll free number for consumer complaints and inquiries;

(ii) has adopted a code that advocates consumer protection that includes, at a minimum:

(a-1) consumer protection guidelines;

(b-1) a standard refund policy; and

(c-1) standards of professional conduct;

(iii) has adopted a procedure for the binding resolution of consumer complaints by an independent, disinterested third party; and

(iv) has established and maintains a consumer protection rebate fund in an amount in excess of $100,000, at least 50% of which must be cash available for immediate disbursement for satisfaction of valid consumer complaints.

Alternatively, the ticket broker may fulfill the requirements of subparagraph (F) of this subsection (b) if the ticket broker certifies that he or she belongs to a professional association organized under the laws of this State, or organized under the laws of any other state and authorized to conduct business in Illinois, that has been in existence for at least 3 years prior to the date of that broker's registration with the Office of the Secretary of State, and is specifically dedicated, for and on behalf of its members, to provide and maintain the consumer protection requirements of subparagraph (F) of subsection (b) to maintain the integrity of the ticket brokerage industry.

(2) (Blank).

(3) The ticket broker and his employees must not engage in the practice of selling, or attempting to sell, tickets for any event while sitting or standing near the facility at which the event is to be held or is being held.

(4) The ticket broker must comply with all requirements of the Retailers' Occupation Tax Act and all other applicable federal, State and local laws in connection with his ticket selling activities.

(5) Beginning January 1, 1996, no ticket broker shall advertise for resale any tickets within this State unless the advertisement contains the name of the ticket broker and the Illinois registration number issued by the Office of the Secretary of State under this Section.

(6) Each ticket broker registered under this Act shall pay an annual registration fee of $100.

(c) This Act does not apply to the sale of tickets of admission to a sporting event, theater, musical performance, or place of public entertainment or amusement of any kind for a price in excess of the printed box office ticket price by a seller engaged in interstate or intrastate commerce on an Internet auction listing service duly registered with the Department of Financial and Professional Regulation under the Auction License Act. This subsection (c) applies to both sales through an online bid submission process and to sales at a fixed price on the same website or interactive computer service as an Internet auction listing service registered with the Department of Financial and Professional Regulation.

This subsection (c) applies to sales described in this subsection so long as the operator of the Internet auction listing service duly registered with the Department of Financial and Professional Regulation under the Auction License Act:

(1) Guarantees to all purchasers that it will provide and in fact provides a full refund of the amount paid by the purchaser (including, but not limited to, all fees, regardless of how characterized) if any of the following occurs:

(A) the ticketed event is cancelled; provided, that if the event is cancelled then reasonable handling and delivery fees need not be refunded as long as such previously disclosed guarantee specifies that such fees will not be refunded, and also provided that the purchaser returns the tickets to the seller or Internet auction listing service;

(B) the ticket received by the purchaser does not allow the purchaser to enter the ticketed event for reasons that may include, without limitation, that the ticket is counterfeit or that the ticket has been cancelled by the issuer due to non-payment, unless the ticket is cancelled due to an act or omission by such purchaser; or

(C) the ticket fails to conform to its description on the Internet auction listing service.

(2) Publishes a written notice on the Internet Auction listing service after the sale of one or more tickets that automatically informs the ticket seller of their potential legal obligation to comply with any applicable local amusement tax in connection with the seller's sale of tickets.

(d) This Act does not apply to the sale of tickets of admission to a sporting event, theater, musical performance, or place of public entertainment or amusement of any kind for a price in excess of the printed box office ticket price conducted at an auction at solely by or for a not-for-profit organization for charitable purposes under clause (a)(1) of Section 10-1 of the Auction License Act.

(e) This Act does not prohibit the resale of a ticket for admission to a baseball game, football game, hockey game, theatre entertainment, or any other amusement for a price more than the price printed on the face of the ticket and for more than the price of the ticket at the box office if the resale is made through an Internet website:

(1) whose operator has a business presence and physical street address in the State of Illinois and clearly and conspicuously posts that address on the website; and

(2) whose operator guarantees to all purchasers that it will provide and in fact provides a full refund of the amount paid by the purchaser (including, but not limited to, all fees, regardless of how characterized) if any of the following occurs:

(A) the ticketed event is cancelled; provided, that if the event is cancelled then reasonable handling and delivery fees need not be refunded as long as such previously disclosed guarantee specifies that such fees will not be refunded, and also provided that the purchaser returns the tickets to the website operator;

(B) the ticket received by the purchaser does not allow the purchaser to enter the ticketed event for reasons that may include, without limitation, that the ticket is counterfeit or that the ticket has been cancelled by the issuer due to non-payment, unless the ticket is cancelled due to an act or omission by such purchaser; or

(C) the ticket fails to conform to its description on the website.

Nothing is this subsection (e) shall be deemed to imply any limitation on ticket sales made pursuant and in accordance with subsections (b), (c), and (d) of this Section and any limitation on sales made pursuant to and in accordance with Section 4.

The provisions of Public Act 89-406 this amendatory Act of 1995 are severable under Section 1.31 of the Statute on Statutes.

(Source: P.A. 89-406, eff. 11-15-95.)

Section 99. Effective date. This Act takes effect upon becoming law.".