103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3678

 

Introduced 2/9/2024, by Sen. Steve Stadelman

 

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

    Amends the Ticket Sale and Resale Act. Provides that a person or entity that does not have actual or constructive possession of an event ticket shall not sell, offer for sale, or advertise for sale the event ticket unless specified conditions are satisfied. A ticket issuer, ticket broker, or ticket reseller shall not offer for sale an event ticket unless the ticket issuer, ticket broker, or ticket reseller makes specified disclosures. Sets forth provisions concerning refunds, if an event is cancelled or postponed, and advertisements. Defines terms.


LRB103 38700 SPS 68837 b

 

 

A BILL FOR

 

SB3678LRB103 38700 SPS 68837 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
14more than the price printed upon the face of said ticket, and
15the price of said ticket shall correspond with the same price
16shown at the box office or the office of original
17distribution.
18    (b) This Act does not apply to the resale of tickets of
19admission to a sporting event, theater, musical performance,
20or place of public entertainment or amusement of any kind for a
21price in excess of the printed box office ticket price by a
22ticket broker who meets all of the following requirements:
23        (1) The ticket broker is duly registered with the

 

 

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1    Office of the Secretary of State on a registration form
2    provided by that Office. The registration must contain a
3    certification that the ticket broker:
4            (A) engages in the resale of tickets on a regular
5        and ongoing basis from one or more permanent or fixed
6        locations located within this State;
7            (B) maintains as the principal business activity
8        at those locations the resale of tickets;
9            (C) displays at those locations the ticket
10        broker's registration;
11            (D) maintains at those locations a listing of the
12        names and addresses of all persons employed by the
13        ticket broker;
14            (E) is in compliance with all applicable federal,
15        State, and local laws relating to its ticket selling
16        activities, and that neither the ticket broker nor any
17        of its employees within the preceding 12 months have
18        been convicted of a violation of this Act; and
19            (F) meets the following requirements:
20                (i) the ticket broker maintains a toll free
21            number specifically dedicated for Illinois
22            consumer complaints and inquiries concerning
23            ticket sales;
24                (ii) the ticket broker has adopted a code that
25            advocates consumer protection that includes, at a
26            minimum:

 

 

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1                    (a-1) consumer protection guidelines;
2                    (b-1) a standard refund policy. In the
3                event a refund is due, the ticket broker shall
4                provide that refund without charge other than
5                for reasonable delivery fees for the return of
6                the tickets; and
7                    (c-1) standards of professional conduct;
8                (iii) the ticket broker has adopted a
9            procedure for the binding resolution of consumer
10            complaints by an independent, disinterested third
11            party and thereby submits to the jurisdiction of
12            the State of Illinois; and
13                (iv) the ticket broker has established and
14            maintains a consumer protection rebate fund in
15            Illinois in an amount in excess of $100,000, which
16            must be cash available for immediate disbursement
17            for satisfaction of valid consumer complaints.
18        Alternatively, the ticket broker may fulfill the
19    requirements of subparagraph (F) of this paragraph (1) if
20    the ticket broker certifies that he or she belongs to a
21    professional association organized under the laws of this
22    State, or organized under the laws of any other state and
23    authorized to conduct business in Illinois, that has been
24    in existence for at least 3 years prior to the date of that
25    broker's registration with the Office of the Secretary of
26    State, and is specifically dedicated, for and on behalf of

 

 

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1    its members, to provide and maintain the consumer
2    protection requirements of subparagraph (F) of this
3    paragraph (1) to maintain the integrity of the ticket
4    brokerage industry.
5        (2) (Blank).
6        (3) The ticket broker and his employees must not
7    engage in the practice of selling, or attempting to sell,
8    tickets for any event while sitting or standing near the
9    facility at which the event is to be held or is being held
10    unless the ticket broker or his or her employees are on
11    property they own, lease, or have permission to occupy.
12        (4) The ticket broker must comply with all
13    requirements of the Retailers' Occupation Tax Act and
14    collect and remit all other applicable federal, State and
15    local taxes in connection with the ticket broker's ticket
16    selling activities.
17        (5) Beginning January 1, 1996, no ticket broker shall
18    advertise for resale any tickets within this State unless
19    the advertisement contains the name of the ticket broker
20    and the Illinois registration number issued by the Office
21    of the Secretary of State under this Section.
22        (6) Each ticket broker registered under this Act shall
23    pay an annual registration fee of $100.
24    (c) This Act does not apply to the sale of tickets of
25admission to a sporting event, theater, musical performance,
26or place of public entertainment or amusement of any kind for a

 

 

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

 

 

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

 

 

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1            purchaser failed to receive the ticket or tickets;
2            and
3            (C) standards of professional conduct;
4        (5) 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        (6) 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
17        after the sale of one or more tickets that
18        automatically informs the ticket reseller of the
19        ticket reseller's potential legal obligation to pay
20        any applicable local amusement tax in connection with
21        the 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,
24        e-mail address, user ID history, fraud complaints, and
25        bidding and listing history of any specifically
26        identified reseller or purchaser upon the receipt of a

 

 

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1        verified request from law enforcement or other
2        government tax officials relating to a criminal
3        investigation or 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.
13    (d) This Act does not apply to the resale of tickets of
14admission to a sporting event, theater, musical performance,
15or place of public entertainment or amusement of any kind for a
16price in excess of the printed box office ticket price
17conducted at an auction solely by or for a not-for-profit
18organization for charitable purposes under clause (a)(1) of
19Section 10-1 of the Auction License Act.
20    (e) This Act does not apply to the resale of a ticket for
21admission to a baseball game, football game, hockey game,
22theatre entertainment, or any other amusement for a price more
23than the price printed on the face of the ticket and for more
24than the price of the ticket at the box office if the resale is
25made through an Internet website whose operator meets the
26following requirements:

 

 

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

 

 

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

 

 

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

 

 

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1    Nothing in this subsection (e) shall be deemed to imply
2any limitation on ticket sales made in accordance with
3subsections (b), (c), and (d) of this Section or any
4limitation on sales made in accordance with Section 4.
5    (f) The provisions of subsections (b), (c), (d), and (e)
6of this Section apply only to the resale of a ticket after the
7initial sale of that ticket. No reseller of a ticket may refuse
8to sell tickets to another ticket reseller solely on the basis
9that the purchaser is a ticket reseller or ticket broker
10authorized to resell tickets pursuant to this Act.
11    (f-5) In addition to the requirements imposed under
12subsections (b), (c), (d), (e), and (f) of this Section,
13ticket brokers and resellers must comply with the requirements
14of this subsection. Before accepting any payment from a
15purchaser, a ticket broker or reseller must disclose to the
16purchaser in a clear, conspicuous, and readily noticeable
17manner the following information:
18        (1) the registered name and city of the event venue;
19        (2) that the ticket broker or reseller is not the
20    event venue box office or its licensed ticket agent, but
21    is, instead, a ticket broker or reseller and that lost or
22    stolen tickets may be reissued only by ticket brokers or
23    resellers;
24        (3) whether it is registered under this Act; and
25        (4) its refund policy, name, and contact information.
26    Before selling and accepting payment for a ticket, a

 

 

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1ticket broker or reseller must require the purchaser to
2acknowledge by an affirmative act the disclosures required
3under this subsection. The disclosures required by this
4subsection must be made in a clear and conspicuous manner,
5appear together, and be preceded by the heading "IMPORTANT
6NOTICE" which must be in bold face font that is larger than the
7font size of the required disclosures.
8    Ticket brokers and resellers must guarantee a full refund
9of the amount paid by the purchaser, including handling and
10delivery fees, if any of the following occurs:
11        (1) the ticket received by the purchaser does not
12    grant the purchaser admission to the event described on
13    the ticket, unless it is due to an act or omission by the
14    purchaser;
15        (2) the ticket fails to conform substantially to its
16    description as advertised; or
17        (3) the event for which the ticket has been resold is
18    cancelled and not rescheduled.
19    This subsection (f-5) does not apply to an Internet
20auction listing service.
21    (f-10) A person or entity that does not have actual or
22constructive possession of an event ticket shall not sell,
23offer for sale, or advertise for sale the event ticket.
24Nothing in this subsection shall prohibit any person or entity
25from offering a service to a consumer to obtain an event ticket
26on behalf of the consumer, if the person or entity complies

 

 

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1with the following:
2        (1) does not market or list the service as an event
3    ticket;
4        (2) lists the price for the service separately from
5    the total event ticket price paid by the service provider
6    for the event ticket in any advertisement, marketing,
7    price list, social media promotion, or other interface
8    that displays a price for the service;
9        (3) clearly and conspicuously discloses, prior to
10    selection of the service, that the service is not an event
11    ticket and that the purchase of the service does not
12    guarantee a ticket to the event; and
13        (4) does not obtain more tickets in each transaction
14    than the numerical limitations for tickets set by the
15    venue and artist for each respective event; and
16    If the person or entity is unable to obtain the specified
17event ticket for the consumer, the person or entity shall
18provide the consumer with a full refund for the total cost of
19the service to obtain the ticket, including any ancillary fees
20or taxes, or, subject to availability, a replacement event
21ticket in the same or a comparable location with the approval
22of the consumer.
23    (f-15) A ticket issuer, ticket broker, or ticket reseller
24shall not offer for sale an event ticket unless the ticket
25issuer, ticket broker, or ticket reseller:
26        (1) clearly and conspicuously:

 

 

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1            (A) displays the total event ticket price in any
2        advertisement, marketing, price list, social media
3        promotion, or other interface that displays a price
4        for the event ticket; and
5            (B) discloses to a consumer who seeks to purchase
6        an event ticket:
7                (i) the total event ticket price at the time
8            the ticket is first displayed to the individual
9            and anytime throughout the ticket purchasing
10            process, including an itemized breakdown of the
11            face value of the event ticket and all applicable
12            taxes and ancillary fees;
13                (ii) the space within the venue that the event
14            ticket entitles the bearer to occupy for the
15            event, whether that is general admission or a
16            specific seat or section;
17                (iii) the refund policies and how to obtain a
18            refund, including under what circumstances a full
19            refund will be issued and how to obtain a full
20            refund of the total cost of the ticket, event
21            ticket fees, ancillary fees, and taxes;
22                (iv) the date and means of delivery for the
23            event ticket;
24                (v) any restrictions on resale of the event
25            ticket under the terms and conditions of the event
26            ticket; and

 

 

SB3678- 16 -LRB103 38700 SPS 68837 b

1                (vi) a link to the full terms and conditions
2            of the event ticket to any individual who seeks to
3            purchase an event ticket prior to purchase.
4    If the event ticket is an electronic ticket, the ticket
5issuer, ticket broker, or ticket reseller shall deliver
6written proof of purchase to the purchaser as soon as is
7practicable, and no later than 24 hours, after the purchase of
8the event ticket. The written proof of purchase shall include
9the disclosures required under paragraph (B).
10    (f-20) Notwithstanding any provision of this Section, if
11an event is canceled or postponed a ticket issuer, ticket
12broker, or ticket reseller shall provide the consumer, at the
13option of the purchaser:
14        (1) a full refund for the total cost of the event
15    ticket, including event ticket fees, ancillary fees, and
16    taxes; or
17        (2) subject to availability and the approval of the
18    consumer, if the event is postponed, a replacement event
19    ticket, in the same or a comparable location, once the
20    event has been rescheduled.
21    The refund described in paragraph (1) shall not apply if
22an event is canceled due to a cause beyond the reasonable
23control of the event organizer or ticket issuer, including a
24natural disaster, civil disturbance, or otherwise
25unforeseeable impediment.
26    (f-25) A ticket issuer, ticket broker, or ticket reseller,

 

 

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1or operator of any website purporting to sell or offer for sale
2event tickets shall not:
3        (1) use any artist name, venue name, or event
4    organizer name or a graphic, marketing logo, image, or
5    other intellectual property of the artist, venue, or event
6    organizer in any promotional materials, social media
7    promotions, or on an Internet website without the prior
8    authorization of the artist, venue, or event organizer;
9        (2) use any name substantially similar to an artist
10    name, venue name, or event organizer name, including a
11    misspelling of the name; or
12        (3) state or imply that the ticket issuer, ticket
13    broker, or ticket reseller, or operator of any website
14    purporting to sell or offer for sale event tickets is
15    affiliated with or endorsed by an artist name, venue name,
16    or event, including by using words such as "official" in
17    promotional materials, social media promotions, search
18    engine optimization, paid advertising, Internet website,
19    without written consent of the venue, team, or artist, as
20    applicable.
21    This subsection does not prohibit a ticket issuer, ticket
22broker, or ticket reseller from using text containing the name
23of an artist, venue, or event organizers to describe an event,
24identify the location where an event will occur, or provide
25information identifying the space within the venue that an
26event ticket would entitle the bearer to occupy for an event.

 

 

SB3678- 18 -LRB103 38700 SPS 68837 b

1    (f-30) As used in this Section:
2    "Ancillary fee" means any additional charge added to the
3face value of an event ticket, excluding taxes.
4    "Artist" means any performer, musician, comedian, athlete,
5producer, ensemble, or production entity of a theatrical
6production, sports team owner, or similar individual or entity
7that contracts with an event organizer to put on an event.
8    "Event ticket" means any physical, electronic, or other
9form of a certificate, document, voucher, token, or other
10evidence indicating that a person has a license to enter an
11event venue or occupy a particular seat or area in an event
12venue with respect to one or more events or an entitlement to
13purchase a license with respect to one or more future events.
14    "Event ticket fee" means a charge that must be paid in
15addition to the face value price of the ticker in order to
16obtain an event ticket from a ticket issuer, secondary market
17ticket issuer, or secondary market ticket exchange, seller, or
18reseller, including any ancillary fee, service fee, charge and
19order processing fee, delivery fee, facility charge fee, and
20any other charge. "Event ticket fee" does not include any
21charge or fee for an optional product or service associated
22with the event that may be selected by a purchaser of an event
23ticket.
24    "Face value" means the initial or acquisition price for
25the primary sale of the event ticket, exclusive of any taxes or
26ancillary fees.

 

 

SB3678- 19 -LRB103 38700 SPS 68837 b

1    "Optional product or service" means a product or service
2that an individual does not need to purchase to use or take
3possession of an event ticket.
4    "Total event ticket price" means the total cost of the
5event ticket, including the face value price and any ancillary
6fees but excluding taxes.
7    (g) The provisions of Public Act 89-406 are severable
8under Section 1.31 of the Statute on Statutes.
9    (h) The provisions of this amendatory Act of the 94th
10General Assembly are severable under Section 1.31 of the
11Statute on Statutes.
12
13(Source: P.A. 99-431, eff. 1-1-16; 100-534, eff. 9-22-17.)