99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2834

 

Introduced 2/17/2016, by Sen. Emil Jones, III

 

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

    Amends the Ticket Sale and Resale Act. In the requirements for exemptions from the prohibition against reselling tickets for a price that is more than the price on the face of the ticket and more than the price of the ticket at the box office, requires an operator of an Internet auction listing service or an Internet website to comply with all applicable requirements of the Retailers' Occupation Tax Act and collect and remit all applicable federal, State, and local taxes including, but not limited to, local amusement taxes (instead of requiring an operator to either: comply with all applicable requirements of the Retailers' Occupation Tax Act and collect and remit all applicable federal, State, and local taxes; or publish a notice on the website that automatically informs the ticket reseller of the ticket reseller's potential legal obligation to pay any applicable local amusement tax in connection with the reseller's sale of tickets). Also changes provisions concerning the disclosure of certain information about resellers to law enforcement or other government tax officials upon request.


LRB099 19331 JLS 43723 b

 

 

A BILL FOR

 

SB2834LRB099 19331 JLS 43723 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
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;

 

 

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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

 

 

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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: (A) complies with all
13    applicable requirements of the Retailers' Occupation Tax
14    Act and collects and remits all applicable federal, State,
15    and local taxes including, but not limited to, local
16    amusement taxes ; or (B) publishes a written notice on the
17    website after the sale of one or more tickets that
18    automatically informs the ticket reseller of the ticket
19    reseller's potential legal obligation to pay any
20    applicable local amusement tax in connection with the
21    reseller's sale of tickets, and discloses to law
22    enforcement or other government tax officials, without
23    subpoena, the name, city, state, telephone number, e-mail
24    address, user ID history, fraud complaints, and bidding and
25    listing history of any specifically identified reseller or
26    purchaser upon the receipt of a verified request from law

 

 

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

 

 

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

 

 

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1        of $100,000 for the satisfaction of valid consumer
2        complaints;
3        (6) the operator has adopted an independent and
4    disinterested dispute resolution procedure that allows
5    resellers or purchasers to file complaints against the
6    other and have those complaints mediated or resolved by a
7    third party, and requires the resellers or purchasers to
8    submit to the jurisdiction of the State of Illinois for
9    complaints involving a ticketed event held in Illinois;
10        (7) the operator either: (A) complies with all
11    applicable requirements of the Retailers' Occupation Tax
12    Act and collects and remits all applicable federal, State,
13    and local taxes including, but not limited to, local
14    amusement taxes ; or (B) publishes a written notice on the
15    website after the sale of one or more tickets that
16    automatically informs the ticket reseller of the ticket
17    reseller's potential legal obligation to pay any
18    applicable local amusement tax in connection with the
19    reseller's sale of tickets, and discloses to law
20    enforcement or other government tax officials, without
21    subpoena, the name, city, state, telephone number, e-mail
22    address, user ID history, fraud complaints, and bidding and
23    listing history of any specifically identified reseller or
24    purchaser upon the receipt of a verified request from law
25    enforcement or other government tax officials relating to
26    an a criminal investigation concerning the failure to pay

 

 

SB2834- 11 -LRB099 19331 JLS 43723 b

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

 

 

SB2834- 12 -LRB099 19331 JLS 43723 b

1        or tickets.
2    Nothing in this subsection (e) shall be deemed to imply any
3limitation on ticket sales made in accordance with subsections
4(b), (c), and (d) of this Section or any limitation on sales
5made in accordance with Section 4.
6    (f) The provisions of subsections (b), (c), (d), and (e) of
7this Section apply only to the resale of a ticket after the
8initial sale of that ticket. No reseller of a ticket may refuse
9to sell tickets to another ticket reseller solely on the basis
10that the purchaser is a ticket reseller or ticket broker
11authorized to resell tickets pursuant 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 registered with the Department of Financial and
22Professional Regulation as required under the Auction License
23Act.
24    (g) The provisions of Public Act 89-406 are severable under
25Section 1.31 of the Statute on Statutes.
26    (h) The provisions of this amendatory Act of the 94th

 

 

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1General Assembly are severable under Section 1.31 of the
2Statute on Statutes.
3    (i) The provisions of this amendatory Act of the 99th
4General Assembly are severable under Section 1.31 of the
5Statute on Statutes.
6(Source: P.A. 99-431, eff. 1-1-16.)