SB0092sam002 94TH GENERAL ASSEMBLY 
Sen. Don Harmon
Filed: 4/11/2005
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 92




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    AMENDMENT NO. ______. Amend Senate Bill 92 by replacing 
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everything after the enacting clause with the following:

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



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


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

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


 



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



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

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    (a) It is unlawful for any person, firm or corporation, 
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owner, lessee,
manager, trustee, or any of their employees or 
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agents, owning, conducting,
managing or operating any theater, 
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circus, baseball park, place of public
entertainment or 
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amusement where tickets of admission are sold for any such

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places of amusement or public entertainment to sell or permit 
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the sale,
barter or exchange of such admission tickets at any 
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other place than in the
box office or on the premises of such 
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theater, circus, baseball park, place
of public entertainment 
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or amusement, but nothing herein prevents such
theater, circus, 
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baseball park, place of public entertainment or amusement
from 
 


 






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placing any of its admission tickets for sale at any other 
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place at
the same price such admission tickets are sold by such 
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theater, circus,
baseball park or other place of public 
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entertainment or amusement at its
box office or on the premises 
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of such places, at the same advertised price
or printed rate 
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thereof.
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    (b) Any term or condition of the original sale of a ticket 
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to any theater, circus, baseball park, or place of public 
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entertainment or amusement where tickets of admission are sold 
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that purports to limit the terms or conditions of resale of the 
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ticket (including but not limited to the resale price of the 
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ticket) is unenforceable, null, and void if the resale 
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transaction is carried out by any of the means set forth in 
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subsections (b), (c), (d), and (e) of Section 1.5 of this Act. 
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This subsection shall not apply to a term or condition of the 
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original sale of a ticket to any theater, circus, baseball 
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park, or place of public entertainment or amusement where 
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tickets of admission are sold that purports to limit the terms 
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or conditions of resale of a ticket specifically designated as 
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seating in a special section for a person with a physical 
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disability.


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(Source: Laws 1923, p. 322.)

 



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



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

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

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price of said ticket shall correspond with the same price shown 
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at the box
office or the office of original distribution.

 


 






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


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


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            (A) engages in the resale of tickets on a regular

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        and ongoing basis from one or more permanent or fixed 
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        locations located
within
this State;


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


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


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


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


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


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                (i) the ticket broker maintains a statewide

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            toll free number specifically dedicated for 
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            Illinois
for consumer complaints and
inquiries 
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            concerning ticket sales;


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


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                    (a-1) consumer protection guidelines;


 


 






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                    (b-1) a standard refund policy.  In the 
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                event a refund is due, the ticket broker shall 
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                provide that refund without charge other than 
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                for reasonable delivery fees for the return of 
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                the tickets; and


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                    (c-1) standards of professional conduct;


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                (iii) the ticket broker has adopted a 
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            procedure for the binding resolution of consumer

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            complaints by an independent, disinterested third 
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            party and thereby submits to the jurisdiction of 
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            the State of Illinois; and


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


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        Alternatively, the ticket broker may fulfill the 
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    requirements of
subparagraph (F) of this paragraph (1)

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    subsection (b) if the ticket broker certifies that he
or 
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    she belongs to a professional association
organized under 
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    the laws of this State, or organized under the laws of
any

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    other state and authorized to conduct business in Illinois, 
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    that has been in
existence for at least 3 years prior to 
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    the date of that broker's registration
with the Office of 
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    the Secretary of State, and is specifically
dedicated, for 
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    and on behalf of its members, to provide and
maintain the 
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    consumer protection requirements of subparagraph (F) of 
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    this paragraph (1)
subsection
(b) to maintain the integrity 
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    of the ticket brokerage industry.


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        (2) (Blank).


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


 






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    at which the event is to be held or
is being held unless 
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    the ticket broker or his or her employees are on property 
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    they own, lease, or have permission to occupy.


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        (4) The ticket broker must comply with all requirements 
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    of the
Retailers' Occupation Tax Act and collect and remit

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    all other applicable federal, State and
local taxes
laws in 
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    connection with the ticket broker's
his ticket selling 
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    activities.


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


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        (6) Each ticket broker registered under this Act shall 
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    pay an annual
registration fee of $100.
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    (c)  This Act does not apply to the sale of tickets of 
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admission to a sporting event, theater, musical performance, or 
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place of public entertainment or amusement of any kind for a 
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price in excess of the printed box office ticket price by a 
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reseller engaged in interstate or intrastate commerce on an 
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Internet auction listing service duly registered with the 
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Department of Financial and Professional Regulation under the 
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Auction License Act and with the Office of the Secretary of 
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State on a registration form provided by that Office.  This 
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subsection (c) applies to both sales through an online bid 
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submission process and sales at a fixed price on the same 
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website or interactive computer service as an Internet auction 
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listing service registered with the Department of Financial and 
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Professional Regulation.
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    This subsection (c) applies to resales described in this 
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subsection only if the operator of the Internet auction listing 
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service meets the following requirements:
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        (1) the operator maintains a listing of the names and 
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    addresses of its corporate officers;
 


 






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        (2) the operator is in compliance with all applicable 
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    federal, State, and local laws relating to ticket selling 
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    activities, and the operator's  officers and directors have 
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    not been convicted of a violation of this Act within the 
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    preceding 12 months;

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        (3) the operator maintains, either itself or through an 
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    affiliate, a toll free number dedicated for consumer 
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    complaints;
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        (4) the operator provides consumer protections that 
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    include at  a minimum:
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            (A) consumer protection guidelines;
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            (B) a standard refund policy that guarantees to all 
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        purchasers that it will provide and in

fact provides a 
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        full refund of the amount paid by the purchaser 
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        (including, but not limited to, all fees, regardless of 
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        how characterized) if the following occurs:
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                (i)  the ticketed event is cancelled and the 
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            purchaser returns the tickets to the seller or 
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            Internet auction listing service; however, 
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            reasonable delivery fees need not be refunded if 
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            the previously disclosed guarantee specifies that 
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            the fees will not be refunded if the event is 
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            cancelled;
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                (ii)  the ticket received by the purchaser does 
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            not allow the purchaser to enter the ticketed event 
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            for reasons that may include, without limitation, 
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            that the ticket is counterfeit or that the ticket 
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            has been cancelled by the issuer due to 
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            non-payment, unless the ticket is cancelled due to 
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            an act or omission by such purchaser;
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                (iii)  the ticket fails to conform to its 
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            description on the Internet auction listing 
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            service; or
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                (iv) the ticket seller fails to send  the ticket 
 


 






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            or tickets to the purchaser, or the ticket seller 
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            attempted to deliver the ticket or tickets to the 
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            purchaser  in the manner required by the Internet 
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            auction listing service and the purchaser failed 
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            to receive the ticket or tickets; and

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            (C) standards of professional conduct;

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        (5) the operator has adopted an independent and 
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    disinterested dispute resolution procedure that allows 
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    resellers or purchasers to file complaints against the 
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    other and  have those complaints mediated or resolved by a 
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    third party, and requires the resellers or purchasers to 
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    submit to the jurisdiction of the State of Illinois for 
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    complaints involving a ticketed event held in Illinois;
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        (6) the  operator either:
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            (A) complies with all applicable requirements of 
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        the Retailers' Occupation Tax Act and collects and 
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        remits all applicable federal, State, and local taxes; 
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        or

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            (B) publishes a written notice on the website after 
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        the sale of one or more tickets that automatically 
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        informs the ticket reseller of the ticket reseller's 
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        potential legal obligation to pay any applicable local 
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        amusement tax in connection with the reseller's sale of 
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        tickets, and discloses to law enforcement or other 
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        government tax officials, without subpoena, the name, 
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        city, state, telephone number, e-mail address, user ID 
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        history, fraud complaints, and bidding and listing 
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        history of any specifically identified reseller or 
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        purchaser upon the receipt of a verified request from 
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        law enforcement or other government tax officials 
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        relating to a criminal investigation or alleged 
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        illegal activity; and

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        (7) the operator either:
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            (A) has established and maintains a consumer 
 


 






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        protection rebate fund in Illinois in an amount in 
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        excess of $100,000, which must be cash available for 
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        immediate disbursement for satisfaction of valid 
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        consumer complaints; or
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            (B) has obtained and maintains in force an errors 
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        and omissions insurance policy that provides at least 
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        $100,000 in coverage and proof that the policy has been 
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        filed with the Department of Financial and 
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        Professional Regulation.

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    (d)  This Act does not apply to the resale of tickets of 
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admission to a sporting event, theater, musical performance, or 
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place of public entertainment or amusement of any kind for a 
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price in excess of the printed box office ticket price 
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conducted at an auction solely by or for a not-for-profit 
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organization for charitable purposes under clause (a)(1) of 
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Section 10-1 of the Auction License Act.
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    (e)  This Act does not apply to the resale of  a ticket for 
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admission to a baseball game, football game, hockey game, 
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theatre entertainment, or any other amusement for a price more 
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than the price printed on the face of the ticket and for more 
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than the price of the ticket at the box office if the resale is 
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made through an Internet website whose operator meets the 
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following requirements:
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        (1) the operator has a business presence and physical 
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    street address in the State of Illinois and clearly and 
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    conspicuously posts that address on the website;
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        (2) the operator maintains a listing of the names of 
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    the operator's directors and officers, and is duly 
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    registered with the Office of the Secretary of State on a 
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    registration form provided by that Office;

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        (3) the operator is in compliance with all applicable 
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    federal, State, and local laws relating to its ticket 
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    reselling activities regulated under this Act, and the 
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    operator's  officers and directors have not been convicted 
 


 






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    of a violation of this Act within the preceding 12 months;

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        (4) the operator maintains a toll free number 
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    specifically dedicated for consumer complaints and 
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    inquiries regarding ticket resales made through the 
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    website;
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        (5) the operator either:
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            (A) has established and maintains a consumer 
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        protection rebate fund in Illinois in an amount in 
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        excess of $100,000, which must be cash available for 
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        immediate disbursement for satisfaction of valid 
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        consumer complaints; or
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            (B) has obtained and maintains in force an errors 
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        and omissions policy of insurance in the minimum amount 
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        of $100,000 for the satisfaction of valid consumer 
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        complaints;
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        (6) the operator has adopted an independent and 
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    disinterested dispute resolution procedure that allows 
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    resellers or purchasers to file complaints against the 
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    other and  have those complaints mediated or resolved by a 
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    third party, and requires the resellers or purchasers to 
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    submit to the jurisdiction of the State of Illinois for 
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    complaints involving a ticketed event held in Illinois;
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        (7) the  operator either:
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            (A) complies with all applicable requirements of 
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        the Retailers' Occupation Tax Act and collects and 
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        remits all applicable federal, State, and local taxes; 
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        or
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            (B) publishes a written notice on the website after 
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        the sale of one or more tickets that automatically 
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        informs the ticket reseller of the ticket reseller's 
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        potential legal obligation to pay any applicable local 
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        amusement tax in connection with the reseller's sale of 
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        tickets, and discloses to law enforcement or other 
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        government tax officials, without subpoena, the name, 
 


 






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        city, state, telephone number, e-mail address, user ID 
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        history, fraud complaints, and bidding and listing 
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        history of any specifically identified reseller or 
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        purchaser upon the receipt of a verified request from 
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        law enforcement or other government tax officials 
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        relating to a criminal investigation or alleged 
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        illegal activity; and

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        (8) the operator guarantees to all purchasers that it 
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    will provide and in fact provides a full refund of the 
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    amount paid by the purchaser (including, but not limited 
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    to, all fees, regardless of how characterized) if any of 
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    the following occurs:
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            (A)  the ticketed event is cancelled and the 
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        purchaser returns the tickets to the website operator; 
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        however, reasonable delivery fees need not be refunded 
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        if the previously disclosed guarantee specifies that 
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        the fees will not be refunded if the event is 
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        cancelled;
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            (B)  the ticket received by the purchaser does not 
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        allow the purchaser to enter the ticketed event for 
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        reasons that may include, without limitation, that the 
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        ticket is counterfeit or that the ticket has been 
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        cancelled by the issuer due to non-payment, unless the 
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        ticket is cancelled due to an act or omission by the 
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        purchaser;
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            (C)  the ticket fails to conform to its description 
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        on the website; or
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            (D) the ticket seller fails to send the ticket or 
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        tickets to the purchaser, or the ticket seller 
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        attempted to deliver the ticket or tickets to the 
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        purchaser in the manner required by the website 
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        operator and the purchaser failed to receive the ticket 
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        or tickets.

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    Nothing in this subsection (e) shall be deemed to imply any 
 


 






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limitation on ticket sales made in accordance with subsections 
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(b), (c), and (d) of this Section or any limitation on sales 
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made in accordance with Section 4.

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    (f) The provisions of subsections (b), (c), (d), and (e) of

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this Section apply only to the resale of a ticket after the 
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initial sale of that ticket.

No reseller of a ticket may refuse 
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to sell tickets to another ticket reseller solely on the basis 
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that the purchaser is a ticket reseller or ticket broker 
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authorized to resell tickets pursuant to this Act.


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    (g) The provisions of Public Act 89-406
this amendatory Act 
11
of 1995 are severable under Section
1.31 of the Statute on 
12
Statutes.
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    (h) The provisions of this amendatory Act of the 94th 
14
General Assembly are severable under Section
1.31 of the 
15
Statute on Statutes.


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

 

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