98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5640

 

Introduced , by Rep. Stephanie A. Kifowit - Lawrence M. Walsh, Jr.

 

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

    Amends the Ticket Sale and Resale Act. Imposes disclosure requirements and price limits on the resale of tickets. Provides that a ticket broker or reseller must disclose the identity and contact information for the event venue box office and disclose that the ticket broker or reseller is not the event venue box office. Requires the disclosure to be clear, conspicuous, and readily noticeable. Limits resale price to 3 times the original ticket price offered by the venue box office. Provides that prior to offering a ticket for resale, ticket brokers and resellers must purchase any ticket offered for resale from the event venue box office.


LRB098 18573 JLS 53714 b

 

 

A BILL FOR

 

HB5640LRB098 18573 JLS 53714 b

1    AN ACT concerning regulation.
 
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), and (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

 

 

HB5640- 2 -LRB098 18573 JLS 53714 b

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;

 

 

HB5640- 3 -LRB098 18573 JLS 53714 b

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

 

 

HB5640- 4 -LRB098 18573 JLS 53714 b

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

 

 

HB5640- 5 -LRB098 18573 JLS 53714 b

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

 

 

HB5640- 6 -LRB098 18573 JLS 53714 b

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

 

 

HB5640- 7 -LRB098 18573 JLS 53714 b

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

 

 

HB5640- 8 -LRB098 18573 JLS 53714 b

1        purchaser upon the receipt of a verified request from
2        law enforcement or other government tax officials
3        relating to a criminal investigation or alleged
4        illegal activity; and
5        (7) the operator either:
6            (A) has established and maintains a consumer
7        protection rebate fund in Illinois in an amount in
8        excess of $100,000, which must be cash available for
9        immediate disbursement for satisfaction of valid
10        consumer complaints; or
11            (B) has obtained and maintains in force an errors
12        and omissions insurance policy that provides at least
13        $100,000 in coverage and proof that the policy has been
14        filed with the Department of Financial and
15        Professional Regulation.
16    (d) This Act does not apply to the resale of tickets of
17admission to a sporting event, theater, musical performance, or
18place of public entertainment or amusement of any kind for a
19price in excess of the printed box office ticket price
20conducted at an auction solely by or for a not-for-profit
21organization for charitable purposes under clause (a)(1) of
22Section 10-1 of the Auction License Act.
23    (e) This Act does not apply to the resale of a ticket for
24admission to a baseball game, football game, hockey game,
25theatre entertainment, or any other amusement for a price more
26than the price printed on the face of the ticket and for more

 

 

HB5640- 9 -LRB098 18573 JLS 53714 b

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

 

 

HB5640- 10 -LRB098 18573 JLS 53714 b

1        and omissions policy of insurance in the minimum amount
2        of $100,000 for the satisfaction of valid consumer
3        complaints;
4        (6) the operator has adopted an independent and
5    disinterested dispute resolution procedure that allows
6    resellers or purchasers to file complaints against the
7    other and have those complaints mediated or resolved by a
8    third party, and requires the resellers or purchasers to
9    submit to the jurisdiction of the State of Illinois for
10    complaints involving a ticketed event held in Illinois;
11        (7) the operator either:
12            (A) complies with all applicable requirements of
13        the Retailers' Occupation Tax Act and collects and
14        remits all applicable federal, State, and local taxes;
15        or
16            (B) publishes a written notice on the website after
17        the sale of one or more tickets that automatically
18        informs the ticket reseller of the ticket reseller's
19        potential legal obligation to pay any applicable local
20        amusement tax in connection with the reseller's sale of
21        tickets, and discloses to law enforcement or other
22        government tax officials, without subpoena, the name,
23        city, state, telephone number, e-mail address, user ID
24        history, fraud complaints, and bidding and listing
25        history of any specifically identified reseller or
26        purchaser upon the receipt of a verified request from

 

 

HB5640- 11 -LRB098 18573 JLS 53714 b

1        law enforcement or other government tax officials
2        relating to a criminal investigation or alleged
3        illegal activity; and
4        (8) the operator guarantees to all purchasers that it
5    will provide and in fact provides a full refund of the
6    amount paid by the purchaser (including, but not limited
7    to, all fees, regardless of how characterized) if any of
8    the following occurs:
9            (A) the ticketed event is cancelled and the
10        purchaser returns the tickets to the website operator;
11        however, reasonable delivery fees need not be refunded
12        if the previously disclosed guarantee specifies that
13        the fees will not be refunded if the event is
14        cancelled;
15            (B) the ticket received by the purchaser does not
16        allow the purchaser to enter the ticketed event for
17        reasons that may include, without limitation, that the
18        ticket is counterfeit or that the ticket has been
19        cancelled by the issuer due to non-payment, unless the
20        ticket is cancelled due to an act or omission by the
21        purchaser;
22            (C) the ticket fails to conform to its description
23        on the website; or
24            (D) the ticket seller willfully fails to send the
25        ticket or tickets to the purchaser, or the ticket
26        seller attempted to deliver the ticket or tickets to

 

 

HB5640- 12 -LRB098 18573 JLS 53714 b

1        the purchaser in the manner required by the website
2        operator and the purchaser failed to receive the ticket
3        or tickets.
4    Nothing in this subsection (e) shall be deemed to imply any
5limitation on ticket sales made in accordance with subsections
6(b), (c), and (d) of this Section or any limitation on sales
7made in accordance with Section 4.
8    (f) The provisions of subsections (b), (c), (d), and (e) of
9this Section apply only to the resale of a ticket after the
10initial sale of that ticket. No reseller of a ticket may refuse
11to sell tickets to another ticket reseller solely on the basis
12that the purchaser is a ticket reseller or ticket broker
13authorized to resell tickets pursuant to this Act.
14    (f-5) In addition to the requirements imposed under
15subsections (b), (c), (d), (e), and (f) of this subsection,
16ticket brokers and resellers must comply with the requirements
17of this subsection. Ticket brokers and resellers must disclose
18to purchasers in a clear, conspicuous, and readily noticeable
19manner the identity of the event venue box office, the contact
20information for the event venue box office, and that the ticket
21broker or reseller is not the event venue box office, but is
22rather a ticket broker or reseller. Prior to offering a ticket
23for resale, a ticket broker or reseller must purchase the
24ticket from the event venue box office. The price at which the
25ticket broker or reseller offers the ticket for resale may not
26exceed 3 times the original ticket price offered by the venue.

 

 

HB5640- 13 -LRB098 18573 JLS 53714 b

1    (g) The provisions of Public Act 89-406 are severable under
2Section 1.31 of the Statute on Statutes.
3    (h) The provisions of this amendatory Act of the 94th
4General Assembly are severable under Section 1.31 of the
5Statute on Statutes.
6(Source: P.A. 94-20, eff. 6-14-05.)