103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5044

 

Introduced 2/8/2024, by Rep. Barbara Hernandez

 

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

    Amends the Ticket Sale and Resale Act. Provides that the resale of specified tickets that are otherwise not covered by the Act shall not exceed 40% of the price printed on the face of the ticket or 40% of the price of the ticket at the box office, whichever is less. Provides that the Attorney General shall enforce the provision and may issue fines and penalties to operators who violate the provisions. Provides that the Office of the Attorney General shall adopt rules to enforce the provision, including the amount of fines for each violation and other financial penalties. Provides that the provision is operative 2 years after the effective date of the amendatory Act.


LRB103 39390 SPS 69569 b

 

 

A BILL FOR

 

HB5044LRB103 39390 SPS 69569 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) Except as provided in subsection (e-5), this This Act
21does not apply to the resale of a ticket for admission to a
22baseball game, football game, hockey game, theatre
23entertainment, or any other amusement for a price more than
24the price printed on the face of the ticket and for more than
25the price of the ticket at the box office if the resale is made
26through an Internet website whose operator meets the following

 

 

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

 

 

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1        consumer complaints;
2        (6) the operator has adopted an independent and
3    disinterested dispute resolution procedure that allows
4    resellers or purchasers to file complaints against the
5    other and have those complaints mediated or resolved by a
6    third party, and requires the resellers or purchasers to
7    submit to the jurisdiction of the State of Illinois for
8    complaints involving a ticketed event held in Illinois;
9        (7) the operator either:
10            (A) complies with all applicable requirements of
11        the Retailers' Occupation Tax Act and collects and
12        remits all applicable federal, State, and local taxes;
13        or
14            (B) publishes a written notice on the website
15        after the sale of one or more tickets that
16        automatically informs the ticket reseller of the
17        ticket reseller's potential legal obligation to pay
18        any applicable local amusement tax in connection with
19        the 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,
22        e-mail address, user ID history, fraud complaints, and
23        bidding and listing history of any specifically
24        identified reseller or purchaser upon the receipt of a
25        verified request from law enforcement or other
26        government tax officials relating to a criminal

 

 

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1        investigation or 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

 

 

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1        ticket or tickets.
2    Nothing in this subsection (e) shall be deemed to imply
3any limitatio
n on ticket sales made in accordance with
4subsections (b), (c), and (d) of this Section or any
5limitation on sales made in accordance with Section 4.
6    (e-5) The resale of tickets that satisfy the requirements
7described in subsection (e) shall not exceed 40% of the price
8printed on the face of the ticket or 40% of the price of the
9ticket at the box office, whichever is less. The Attorney
10General shall enforce the provisions of this subsection and
11may issue fines and penalties to operators who violate this
12subsection. The Office of the Attorney General shall adopt
13rules to enforce this subsection, including the amount of
14fines for each violation and other financial penalties. This
15subsection is operative 2 years after the effective date of
16this amendatory Act of the 103rd General Assembly.
17    (f) The provisions of subsections (b), (c), (d), and (e)
18of this Section apply only to the resale of a ticket after the
19initial sale of that ticket. No reseller of a ticket may refuse
20to sell tickets to another ticket reseller solely on the basis
21that the purchaser is a ticket reseller or ticket broker
22authorized to resell tickets pursuant to this Act.
23    (f-5) In addition to the requirements imposed under
24subsections (b), (c), (d), (e), and (f) of this Section,
25ticket brokers and resellers must comply with the requirements
26of this subsection. Before accepting any payment from a

 

 

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1purchaser, a ticket broker or reseller must disclose to the
2purchaser in a clear, conspicuous, and readily noticeable
3manner the following information:
4        (1) the registered name and city of the event venue;
5        (2) that the ticket broker or reseller is not the
6    event venue box office or its licensed ticket agent, but
7    is, instead, a ticket broker or reseller and that lost or
8    stolen tickets may be reissued only by ticket brokers or
9    resellers;
10        (3) whether it is registered under this Act; and
11        (4) its refund policy, name, and contact information.
12    Before selling and accepting payment for a ticket, a
13ticket broker or reseller must require the purchaser to
14acknowledge by an affirmative act the disclosures required
15under this subsection. The disclosures required by this
16subsection must be made in a clear and conspicuous manner,
17appear together, and be preceded by the heading "IMPORTANT
18NOTICE" which must be in bold face font that is larger than the
19font size of the required disclosures.
20    Ticket brokers and resellers must guarantee a full refund
21of the amount paid by the purchaser, including handling and
22delivery fees, if any of the following occurs:
23        (1) the ticket received by the purchaser does not
24    grant the purchaser admission to the event described on
25    the ticket, unless it is due to an act or omission by the
26    purchaser;

 

 

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1        (2) the ticket fails to conform substantially to its
2    description as advertised; or
3        (3) the event for which the ticket has been resold is
4    cancelled and not rescheduled.
5    This subsection (f-5) does not apply to an Internet
6auction listing service.
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(Source: P.A. 99-431, eff. 1-1-16; 100-534, eff. 9-22-17.)