Rep. Stephanie A. Kifowit

Filed: 4/8/2014

 

 


 

 


 
09800HB3958ham003LRB098 15517 JLS 58486 a

1
AMENDMENT TO HOUSE BILL 3958

2    AMENDMENT NO. ______. Amend House Bill 3958, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Ticket Sale and Resale Act is amended by
6changing Section 1.5 as follows:
 
7    (815 ILCS 414/1.5)  (was 720 ILCS 375/1.5)
8    Sec. 1.5. Sale of tickets at more than face value
9prohibited; exceptions.
10    (a) Except as otherwise provided in subsections (b), (c),
11(d), and (e), and (f-5) of this Section and in Section 4, it is
12unlawful for any person, persons, firm or corporation to sell
13tickets for baseball games, football games, hockey games,
14theatre entertainments, or any other amusement for a price more
15than the price printed upon the face of said ticket, and the
16price of said ticket shall correspond with the same price shown

 

 

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1at the box office or the office of original distribution.
2    (b) This Act does not apply to the resale of tickets of
3admission to a sporting event, theater, musical performance, or
4place of public entertainment or amusement of any kind for a
5price in excess of the printed box office ticket price by a
6ticket broker who meets all of the following requirements:
7        (1) The ticket broker is duly registered with the
8    Office of the Secretary of State on a registration form
9    provided by that Office. The registration must contain a
10    certification that the ticket broker:
11            (A) engages in the resale of tickets on a regular
12        and ongoing basis from one or more permanent or fixed
13        locations located within this State;
14            (B) maintains as the principal business activity
15        at those locations the resale of tickets;
16            (C) displays at those locations the ticket
17        broker's registration;
18            (D) maintains at those locations a listing of the
19        names and addresses of all persons employed by the
20        ticket broker;
21            (E) is in compliance with all applicable federal,
22        State, and local laws relating to its ticket selling
23        activities, and that neither the ticket broker nor any
24        of its employees within the preceding 12 months have
25        been convicted of a violation of this Act; and
26            (F) meets the following requirements:

 

 

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1                (i) the ticket broker maintains a toll free
2            number specifically dedicated for Illinois
3            consumer complaints and inquiries concerning
4            ticket sales;
5                (ii) the ticket broker has adopted a code that
6            advocates consumer protection that includes, at a
7            minimum:
8                    (a-1) consumer protection guidelines;
9                    (b-1) a standard refund policy. In the
10                event a refund is due, the ticket broker shall
11                provide that refund without charge other than
12                for reasonable delivery fees for the return of
13                the tickets; and
14                    (c-1) standards of professional conduct;
15                (iii) the ticket broker has adopted a
16            procedure for the binding resolution of consumer
17            complaints by an independent, disinterested third
18            party and thereby submits to the jurisdiction of
19            the State of Illinois; and
20                (iv) the ticket broker has established and
21            maintains a consumer protection rebate fund in
22            Illinois in an amount in excess of $100,000, which
23            must be cash available for immediate disbursement
24            for satisfaction of valid consumer complaints.
25        Alternatively, the ticket broker may fulfill the
26    requirements of subparagraph (F) of this paragraph (1) if

 

 

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1    the ticket broker certifies that he or she belongs to a
2    professional association organized under the laws of this
3    State, or organized under the laws of any other state and
4    authorized to conduct business in Illinois, that has been
5    in existence for at least 3 years prior to the date of that
6    broker's registration with the Office of the Secretary of
7    State, and is specifically dedicated, for and on behalf of
8    its members, to provide and maintain the consumer
9    protection requirements of subparagraph (F) of this
10    paragraph (1) to maintain the integrity of the ticket
11    brokerage industry.
12        (2) (Blank).
13        (3) The ticket broker and his employees must not engage
14    in the practice of selling, or attempting to sell, tickets
15    for any event while sitting or standing near the facility
16    at which the event is to be held or is being held unless
17    the ticket broker or his or her employees are on property
18    they own, lease, or have permission to occupy.
19        (4) The ticket broker must comply with all requirements
20    of the Retailers' Occupation Tax Act and collect and remit
21    all other applicable federal, State and local taxes in
22    connection with the ticket broker's ticket selling
23    activities.
24        (5) Beginning January 1, 1996, no ticket broker shall
25    advertise for resale any tickets within this State unless
26    the advertisement contains the name of the ticket broker

 

 

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1    and the Illinois registration number issued by the Office
2    of the Secretary of State under this Section.
3        (6) Each ticket broker registered under this Act shall
4    pay an annual registration fee of $100.
5    (c) This Act does not apply to the sale of tickets of
6admission to a sporting event, theater, musical performance, or
7place of public entertainment or amusement of any kind for a
8price in excess of the printed box office ticket price by a
9reseller engaged in interstate or intrastate commerce on an
10Internet auction listing service duly registered with the
11Department of Financial and Professional Regulation under the
12Auction License Act and with the Office of the Secretary of
13State on a registration form provided by that Office. This
14subsection (c) applies to both sales through an online bid
15submission process and sales at a fixed price on the same
16website or interactive computer service as an Internet auction
17listing service registered with the Department of Financial and
18Professional Regulation.
19    This subsection (c) applies to resales described in this
20subsection only if the operator of the Internet auction listing
21service meets the following requirements:
22        (1) the operator maintains a listing of the names and
23    addresses of its corporate officers;
24        (2) the operator is in compliance with all applicable
25    federal, State, and local laws relating to ticket selling
26    activities, and the operator's officers and directors have

 

 

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1    not been convicted of a violation of this Act within the
2    preceding 12 months;
3        (3) the operator maintains, either itself or through an
4    affiliate, a toll free number dedicated for consumer
5    complaints;
6        (4) the operator provides consumer protections that
7    include at a minimum:
8            (A) consumer protection guidelines;
9            (B) a standard refund policy that guarantees to all
10        purchasers that it will provide and in fact provides a
11        full refund of the amount paid by the purchaser
12        (including, but not limited to, all fees, regardless of
13        how characterized) if the following occurs:
14                (i) the ticketed event is cancelled and the
15            purchaser returns the tickets to the seller or
16            Internet auction listing service; however,
17            reasonable delivery fees need not be refunded if
18            the previously disclosed guarantee specifies that
19            the fees will not be refunded if the event is
20            cancelled;
21                (ii) the ticket received by the purchaser does
22            not allow the purchaser to enter the ticketed event
23            for reasons that may include, without limitation,
24            that the ticket is counterfeit or that the ticket
25            has been cancelled by the issuer due to
26            non-payment, unless the ticket is cancelled due to

 

 

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1            an act or omission by such purchaser;
2                (iii) the ticket fails to conform to its
3            description on the Internet auction listing
4            service; or
5                (iv) the ticket seller willfully fails to send
6            the ticket or tickets to the purchaser, or the
7            ticket seller attempted to deliver the ticket or
8            tickets to the purchaser in the manner required by
9            the Internet auction listing service and the
10            purchaser failed to receive the ticket or tickets;
11            and
12            (C) standards of professional conduct;
13        (5) the operator has adopted an independent and
14    disinterested dispute resolution procedure that allows
15    resellers or purchasers to file complaints against the
16    other and have those complaints mediated or resolved by a
17    third party, and requires the resellers or purchasers to
18    submit to the jurisdiction of the State of Illinois for
19    complaints involving a ticketed event held in Illinois;
20        (6) the operator either:
21            (A) complies with all applicable requirements of
22        the Retailers' Occupation Tax Act and collects and
23        remits all applicable federal, State, and local taxes;
24        or
25            (B) publishes a written notice on the website after
26        the sale of one or more tickets that automatically

 

 

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1        informs the ticket reseller of the ticket reseller's
2        potential legal obligation to pay any applicable local
3        amusement tax in connection with the reseller's sale of
4        tickets, and discloses to law enforcement or other
5        government tax officials, without subpoena, the name,
6        city, state, telephone number, e-mail address, user ID
7        history, fraud complaints, and bidding and listing
8        history of any specifically identified reseller or
9        purchaser upon the receipt of a verified request from
10        law enforcement or other government tax officials
11        relating to a criminal investigation or alleged
12        illegal activity; and
13        (7) the operator either:
14            (A) has established and maintains a consumer
15        protection rebate fund in Illinois in an amount in
16        excess of $100,000, which must be cash available for
17        immediate disbursement for satisfaction of valid
18        consumer complaints; or
19            (B) has obtained and maintains in force an errors
20        and omissions insurance policy that provides at least
21        $100,000 in coverage and proof that the policy has been
22        filed with the Department of Financial and
23        Professional Regulation.
24    (d) This Act does not apply to the resale of tickets of
25admission to a sporting event, theater, musical performance, or
26place of public entertainment or amusement of any kind for a

 

 

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1price in excess of the printed box office ticket price
2conducted at an auction solely by or for a not-for-profit
3organization for charitable purposes under clause (a)(1) of
4Section 10-1 of the Auction License Act.
5    (e) This Act does not apply to the resale of a ticket for
6admission to a baseball game, football game, hockey game,
7theatre entertainment, or any other amusement for a price more
8than the price printed on the face of the ticket and for more
9than the price of the ticket at the box office if the resale is
10made through an Internet website whose operator meets the
11following requirements:
12        (1) the operator has a business presence and physical
13    street address in the State of Illinois and clearly and
14    conspicuously posts that address on the website;
15        (2) the operator maintains a listing of the names of
16    the operator's directors and officers, and is duly
17    registered with the Office of the Secretary of State on a
18    registration form provided by that Office;
19        (3) the operator is in compliance with all applicable
20    federal, State, and local laws relating to its ticket
21    reselling activities regulated under this Act, and the
22    operator's officers and directors have not been convicted
23    of a violation of this Act within the preceding 12 months;
24        (4) the operator maintains a toll free number
25    specifically dedicated for consumer complaints and
26    inquiries regarding ticket resales made through the

 

 

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1    website;
2        (5) 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 policy of insurance in the minimum amount
10        of $100,000 for the satisfaction of valid consumer
11        complaints;
12        (6) the operator has adopted an independent and
13    disinterested dispute resolution procedure that allows
14    resellers or purchasers to file complaints against the
15    other and have those complaints mediated or resolved by a
16    third party, and requires the resellers or purchasers to
17    submit to the jurisdiction of the State of Illinois for
18    complaints involving a ticketed event held in Illinois;
19        (7) the operator either:
20            (A) complies with all applicable requirements of
21        the Retailers' Occupation Tax Act and collects and
22        remits all applicable federal, State, and local taxes;
23        or
24            (B) publishes a written notice on the website after
25        the sale of one or more tickets that automatically
26        informs the ticket reseller of the ticket reseller's

 

 

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1        potential legal obligation to pay any applicable local
2        amusement tax in connection with the reseller's sale of
3        tickets, and discloses to law enforcement or other
4        government tax officials, without subpoena, the name,
5        city, state, telephone number, e-mail address, user ID
6        history, fraud complaints, and bidding and listing
7        history of any specifically identified reseller or
8        purchaser upon the receipt of a verified request from
9        law enforcement or other government tax officials
10        relating to a criminal investigation or alleged
11        illegal activity; and
12        (8) the operator guarantees to all purchasers that it
13    will provide and in fact provides a full refund of the
14    amount paid by the purchaser (including, but not limited
15    to, all fees, regardless of how characterized) if any of
16    the following occurs:
17            (A) the ticketed event is cancelled and the
18        purchaser returns the tickets to the website operator;
19        however, reasonable delivery fees need not be refunded
20        if the previously disclosed guarantee specifies that
21        the fees will not be refunded if the event is
22        cancelled;
23            (B) the ticket received by the purchaser does not
24        allow the purchaser to enter the ticketed event for
25        reasons that may include, without limitation, that the
26        ticket is counterfeit or that the ticket has been

 

 

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1        cancelled by the issuer due to non-payment, unless the
2        ticket is cancelled due to an act or omission by the
3        purchaser;
4            (C) the ticket fails to conform to its description
5        on the website; or
6            (D) the ticket seller willfully fails to send the
7        ticket or tickets to the purchaser, or the ticket
8        seller attempted to deliver the ticket or tickets to
9        the purchaser in the manner required by the website
10        operator and the purchaser failed to receive the ticket
11        or tickets.
12    Nothing in this subsection (e) shall be deemed to imply any
13limitation on ticket sales made in accordance with subsections
14(b), (c), and (d) of this Section or any limitation on sales
15made in accordance with Section 4.
16    (f) The provisions of subsections (b), (c), (d), and (e) of
17this Section apply only to the resale of a ticket after the
18initial sale of that ticket. No reseller of a ticket may refuse
19to sell tickets to another ticket reseller solely on the basis
20that the purchaser is a ticket reseller or ticket broker
21authorized to resell tickets pursuant to this Act.
22    (f-5) In addition to the requirements imposed under
23subsections (b), (c), (d), (e), and (f) of this Section, ticket
24brokers and resellers must comply with the requirements of this
25subsection. Before accepting any payment from a purchaser,
26ticket brokers and resellers must disclose to the purchaser in

 

 

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1a clear, conspicuous, and readily noticeable manner the
2following information:
3        (1) the registered name and city of the event venue box
4    office; and
5        (2) that the ticket broker or reseller is not the event
6    venue box office, but is, instead, a ticket broker or
7    reseller and that lost or stolen tickets may be reissued
8    only by ticket brokers or resellers.
9    Before selling and accepting payment for a ticket, a ticket
10broker or reseller must require the purchaser to acknowledge by
11an affirmative act the disclosures required under this
12subsection. The disclosures required by this subsection must be
13made in a clear and conspicuous manner, appear together, and be
14preceded by the heading "IMPORTANT NOTICE" which must be in
15bold face font that is 2 points larger than the font size of
16the required disclosures.
17    This subsection (f-5) does not apply to an Internet auction
18listing service registered with the Department of Financial and
19Professional Regulation as required under the Auction License
20Act.
21    (g) The provisions of Public Act 89-406 are severable under
22Section 1.31 of the Statute on Statutes.
23    (h) The provisions of this amendatory Act of the 94th
24General Assembly are severable under Section 1.31 of the
25Statute on Statutes.
26(Source: P.A. 94-20, eff. 6-14-05.)".