Sen. Steve Stadelman

Filed: 4/5/2024

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3678

2    AMENDMENT NO. ______. Amend Senate Bill 3678, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Ticket Sale and Resale Act is amended by
6changing Sections 1.5 and 2 as follows:
 
7    (815 ILCS 414/1.5)  (was 720 ILCS 375/1.5)
8    Sec. 1.5. Sale of tickets at more than face value
9prohibited; exceptions.
10    (a) Except as otherwise provided in subsections (b), (c),
11(d), (e), and (f-5) of this Section and in Section 4, it is
12unlawful for any person, persons, firm or corporation to sell
13tickets for baseball games, football games, hockey games,
14theatre entertainments, or any other amusement for a price
15more than the price printed upon the face of said ticket, and
16the price of said ticket shall correspond with the same price

 

 

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1shown at the box office or the office of original
2distribution.
3    (b) This Act does not apply to the resale of tickets of
4admission to a sporting event, theater, musical performance,
5or place of public entertainment or amusement of any kind for a
6price in excess of the printed box office ticket price by a
7ticket broker who meets all of the following requirements:
8        (1) The ticket broker is duly registered with the
9    Office of the Secretary of State on a registration form
10    provided by that Office. The registration must contain a
11    certification that the ticket broker:
12            (A) engages in the resale of tickets on a regular
13        and ongoing basis from one or more permanent or fixed
14        locations located within this State;
15            (B) maintains as the principal business activity
16        at those locations the resale of tickets;
17            (C) displays at those locations the ticket
18        broker's registration;
19            (D) maintains at those locations a listing of the
20        names and addresses of all persons employed by the
21        ticket broker;
22            (E) is in compliance with all applicable federal,
23        State, and local laws relating to its ticket selling
24        activities, and that neither the ticket broker nor any
25        of its employees within the preceding 12 months have
26        been convicted of a violation of this Act; and

 

 

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1            (F) meets the following requirements:
2                (i) the ticket broker maintains a toll free
3            number specifically dedicated for Illinois
4            consumer complaints and inquiries concerning
5            ticket sales;
6                (ii) the ticket broker has adopted a code that
7            advocates consumer protection that includes, at a
8            minimum:
9                    (a-1) consumer protection guidelines;
10                    (b-1) a standard refund policy. In the
11                event a refund is due, the ticket broker shall
12                provide that refund without charge other than
13                for reasonable delivery fees for the return of
14                the tickets; and
15                    (c-1) standards of professional conduct;
16                (iii) the ticket broker has adopted a
17            procedure for the binding resolution of consumer
18            complaints by an independent, disinterested third
19            party and thereby submits to the jurisdiction of
20            the State of Illinois; and
21                (iv) the ticket broker has established and
22            maintains a consumer protection rebate fund in
23            Illinois in an amount in excess of $100,000, which
24            must be cash available for immediate disbursement
25            for satisfaction of valid consumer complaints.
26        Alternatively, the ticket broker may fulfill the

 

 

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1    requirements of subparagraph (F) of this paragraph (1) if
2    the ticket broker certifies that he or she belongs to a
3    professional association organized under the laws of this
4    State, or organized under the laws of any other state and
5    authorized to conduct business in Illinois, that has been
6    in existence for at least 3 years prior to the date of that
7    broker's registration with the Office of the Secretary of
8    State, and is specifically dedicated, for and on behalf of
9    its members, to provide and maintain the consumer
10    protection requirements of subparagraph (F) of this
11    paragraph (1) to maintain the integrity of the ticket
12    brokerage industry.
13        (2) (Blank).
14        (3) The ticket broker and his employees must not
15    engage in the practice of selling, or attempting to sell,
16    tickets for any event while sitting or standing near the
17    facility at which the event is to be held or is being held
18    unless the ticket broker or his or her employees are on
19    property they own, lease, or have permission to occupy.
20        (4) The ticket broker must comply with all
21    requirements of the Retailers' Occupation Tax Act and
22    collect and remit all other applicable federal, State and
23    local taxes in connection with the ticket broker's ticket
24    selling activities.
25        (5) Beginning January 1, 1996, no ticket broker shall
26    advertise for resale any tickets within this State unless

 

 

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1    the advertisement contains the name of the ticket broker
2    and the Illinois registration number issued by the Office
3    of the Secretary of State under this Section.
4        (6) Each ticket broker registered under this Act shall
5    pay an annual registration fee of $100.
6    (c) This Act does not apply to the sale of tickets of
7admission to a sporting event, theater, musical performance,
8or place of public entertainment or amusement of any kind for a
9price in excess of the printed box office ticket price by a
10reseller engaged in interstate or intrastate commerce on an
11Internet auction listing service duly registered with the
12Office of the Secretary of State on a registration form
13provided by that Office. This subsection (c) applies to both
14sales through an online bid submission process and sales at a
15fixed price on the same website or interactive computer
16service as an Internet auction listing service.
17    This subsection (c) applies to resales described in this
18subsection only if the operator of the Internet auction
19listing service meets the following requirements:
20        (1) the operator maintains a listing of the names and
21    addresses of its corporate officers;
22        (2) the operator is in compliance with all applicable
23    federal, State, and local laws relating to ticket selling
24    activities, and the operator's officers and directors have
25    not been convicted of a violation of this Act within the
26    preceding 12 months;

 

 

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1        (3) the operator maintains, either itself or through
2    an affiliate, a toll free number dedicated for consumer
3    complaints;
4        (4) the operator provides consumer protections that
5    include at a minimum:
6            (A) consumer protection guidelines;
7            (B) a standard refund policy that guarantees to
8        all purchasers that it will provide and in fact
9        provides a full refund of the amount paid by the
10        purchaser (including, but not limited to, all fees,
11        regardless of how characterized) if the following
12        occurs:
13                (i) the ticketed event is cancelled and the
14            purchaser returns the tickets to the seller or
15            Internet auction listing service; however,
16            reasonable delivery fees need not be refunded if
17            the previously disclosed guarantee specifies that
18            the fees will not be refunded if the event is
19            cancelled;
20                (ii) the ticket received by the purchaser does
21            not allow the purchaser to enter the ticketed
22            event for reasons that may include, without
23            limitation, that the ticket is counterfeit or that
24            the ticket has been cancelled by the issuer due to
25            non-payment, unless the ticket is cancelled due to
26            an act or omission by such purchaser;

 

 

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1                (iii) the ticket fails to conform to its
2            description on the Internet auction listing
3            service; or
4                (iv) the ticket seller willfully fails to send
5            the ticket or tickets to the purchaser, or the
6            ticket seller attempted to deliver the ticket or
7            tickets to the purchaser in the manner required by
8            the Internet auction listing service and the
9            purchaser failed to receive the ticket or tickets;
10            and
11            (C) standards of professional conduct;
12        (5) the operator has adopted an independent and
13    disinterested dispute resolution procedure that allows
14    resellers or purchasers to file complaints against the
15    other and have those complaints mediated or resolved by a
16    third party, and requires the resellers or purchasers to
17    submit to the jurisdiction of the State of Illinois for
18    complaints involving a ticketed event held in Illinois;
19        (6) the operator either:
20            (A) complies with all applicable requirements of
21        the Retailers' Occupation Tax Act and collects and
22        remits all applicable federal, State, and local taxes;
23        or
24            (B) publishes a written notice on the website
25        after the sale of one or more tickets that
26        automatically informs the ticket reseller of the

 

 

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1        ticket reseller's potential legal obligation to pay
2        any applicable local amusement tax in connection with
3        the reseller's sale of tickets, and discloses to law
4        enforcement or other government tax officials, without
5        subpoena, the name, city, state, telephone number,
6        e-mail address, user ID history, fraud complaints, and
7        bidding and listing history of any specifically
8        identified reseller or purchaser upon the receipt of a
9        verified request from law enforcement or other
10        government tax officials relating to a criminal
11        investigation or alleged illegal activity; and
12        (7) the operator either:
13            (A) has established and maintains a consumer
14        protection rebate fund in Illinois in an amount in
15        excess of $100,000, which must be cash available for
16        immediate disbursement for satisfaction of valid
17        consumer complaints; or
18            (B) has obtained and maintains in force an errors
19        and omissions insurance policy that provides at least
20        $100,000 in coverage.
21    (d) This Act does not apply to the resale of tickets of
22admission to a sporting event, theater, musical performance,
23or place of public entertainment or amusement of any kind for a
24price in excess of the printed box office ticket price
25conducted at an auction solely by or for a not-for-profit
26organization for charitable purposes under clause (a)(1) of

 

 

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1Section 10-1 of the Auction License Act.
2    (e) This Act does not apply to the resale of a ticket for
3admission to a baseball game, football game, hockey game,
4theatre entertainment, or any other amusement for a price more
5than the price printed on the face of the ticket and for more
6than the price of the ticket at the box office if the resale is
7made through an Internet website whose operator meets the
8following requirements:
9        (1) the operator has a business presence and physical
10    street address in the State of Illinois and clearly and
11    conspicuously posts that address on the website;
12        (2) the operator maintains a listing of the names of
13    the operator's directors and officers, and is duly
14    registered with the Office of the Secretary of State on a
15    registration form provided by that Office;
16        (3) the operator is in compliance with all applicable
17    federal, State, and local laws relating to its ticket
18    reselling activities regulated under this Act, and the
19    operator's officers and directors have not been convicted
20    of a violation of this Act within the preceding 12 months;
21        (4) the operator maintains a toll free number
22    specifically dedicated for consumer complaints and
23    inquiries regarding ticket resales made through the
24    website;
25        (5) the operator either:
26            (A) has established and maintains a consumer

 

 

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1        protection rebate fund in Illinois in an amount in
2        excess of $100,000, which must be cash available for
3        immediate disbursement for satisfaction of valid
4        consumer complaints; or
5            (B) has obtained and maintains in force an errors
6        and omissions policy of insurance in the minimum
7        amount of $100,000 for the satisfaction of valid
8        consumer complaints;
9        (6) the operator has adopted an independent and
10    disinterested dispute resolution procedure that allows
11    resellers or purchasers to file complaints against the
12    other and have those complaints mediated or resolved by a
13    third party, and requires the resellers or purchasers to
14    submit to the jurisdiction of the State of Illinois for
15    complaints involving a ticketed event held in Illinois;
16        (7) the operator either:
17            (A) complies with all applicable requirements of
18        the Retailers' Occupation Tax Act and collects and
19        remits all applicable federal, State, and local taxes;
20        or
21            (B) publishes a written notice on the website
22        after the sale of one or more tickets that
23        automatically informs the ticket reseller of the
24        ticket reseller's potential legal obligation to pay
25        any applicable local amusement tax in connection with
26        the reseller's sale of tickets, and discloses to law

 

 

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1        enforcement or other government tax officials, without
2        subpoena, the name, city, state, telephone number,
3        e-mail address, user ID history, fraud complaints, and
4        bidding and listing history of any specifically
5        identified reseller or purchaser upon the receipt of a
6        verified request from law enforcement or other
7        government tax officials relating to a criminal
8        investigation or alleged illegal activity; and
9        (8) the operator guarantees to all purchasers that it
10    will provide and in fact provides a full refund of the
11    amount paid by the purchaser (including, but not limited
12    to, all fees, regardless of how characterized) if any of
13    the following occurs:
14            (A) the ticketed event is cancelled and the
15        purchaser returns the tickets to the website operator;
16        however, reasonable delivery fees need not be refunded
17        if the previously disclosed guarantee specifies that
18        the fees will not be refunded if the event is
19        cancelled;
20            (B) the ticket received by the purchaser does not
21        allow the purchaser to enter the ticketed event for
22        reasons that may include, without limitation, that the
23        ticket is counterfeit or that the ticket has been
24        cancelled by the issuer due to non-payment, unless the
25        ticket is cancelled due to an act or omission by the
26        purchaser;

 

 

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1            (C) the ticket fails to conform to its description
2        on the website; or
3            (D) the ticket seller willfully fails to send the
4        ticket or tickets to the purchaser, or the ticket
5        seller attempted to deliver the ticket or tickets to
6        the purchaser in the manner required by the website
7        operator and the purchaser failed to receive the
8        ticket or tickets.
9    Nothing in this subsection (e) shall be deemed to imply
10any limitation on ticket sales made in accordance with
11subsections (b), (c), and (d) of this Section or any
12limitation on sales made in accordance with Section 4.
13    (f) The provisions of subsections (b), (c), (d), and (e)
14of this Section apply only to the resale of a ticket after the
15initial sale of that ticket. No reseller of a ticket may refuse
16to sell tickets to another ticket reseller solely on the basis
17that the purchaser is a ticket reseller or ticket broker
18authorized to resell tickets pursuant to this Act.
19    (f-5) In addition to the requirements imposed under
20subsections (b), (c), (d), (e), and (f) of this Section,
21ticket brokers and resellers must comply with the requirements
22of this subsection. Before accepting any payment from a
23purchaser, a ticket broker or reseller must disclose to the
24purchaser in a clear, conspicuous, and readily noticeable
25manner the following information:
26        (1) the registered name and city of the event venue;

 

 

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

 

 

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1    This subsection (f-5) does not apply to an Internet
2auction listing service.
3    (f-10) A person or entity that does not have actual or
4constructive possession of an event ticket shall not sell,
5offer for sale, or advertise for sale the event ticket.
6Nothing in this subsection shall prohibit any person or entity
7from offering a service to a consumer to obtain an event ticket
8on behalf of the consumer, if the person or entity complies
9with the following:
10        (1) does not market or list the service as an event
11    ticket;
12        (2) displays the total price for the service at the
13    time the service is first listed for sale, which includes
14    all applicable required fees (excluding taxes or any fees
15    assessed for the physical delivery of tickets), in any
16    advertisement, marketing, price list, social media
17    promotion, or other interface where a price is displayed
18    for the service, including at the time it is first
19    displayed to the individual and anytime throughout the
20    purchasing process;
21        (3) clearly and conspicuously discloses, prior to
22    selection of the service, that the service is not an event
23    ticket and that the purchase of the service does not
24    guarantee a ticket to the event; and
25        (4) does not obtain more tickets in each transaction
26    than the numerical limitations for tickets set by the

 

 

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1    venue and artist for each respective event.
2    If the person or entity is unable to obtain the specified
3event ticket for the consumer, the person or entity shall
4provide the consumer, within a reasonable amount of time, with
5a full refund for the total cost of the service to obtain the
6ticket, including any fees or taxes, or, subject to
7availability, a replacement event ticket in the same or a
8comparable location with the approval of the consumer.
9    (f-15) A ticket issuer, ticket broker, or ticket resale
10marketplace shall not offer for sale an event ticket unless
11the ticket issuer, ticket broker, or ticket resale
12marketplace:
13        (1) clearly and conspicuously:
14            (A) displays the total event ticket price at the
15        time the ticket is first listed for sale in any
16        advertisement, marketing, price list, social media
17        promotion, or other interface where a price is
18        displayed for the event ticket; and
19            (B) discloses to a consumer who seeks to purchase
20        an event ticket:
21                (i) the total event ticket price at the time
22            the ticket is first displayed to the individual
23            and anytime throughout the ticket purchasing
24            process, and, prior to checkout, shall include an
25            itemized breakdown of the base event ticket price
26            of the event ticket and all applicable event

 

 

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1            ticket fees and taxes;
2                (ii) the space within the venue that the event
3            ticket entitles the bearer to occupy for the
4            event, whether that is general admission or a
5            specific row or section;
6                (iii) the refund policies and how to obtain a
7            refund, including under what circumstances a full
8            refund will be issued and how to obtain a full
9            refund of the total event ticket price and taxes;
10                (iv) the estimated date and means of delivery
11            for the event ticket; and
12                (v) a link to the full terms and conditions
13            applied by the ticket issuer, ticket broker, or
14            ticket resale marketplace of the event ticket to
15            any individual who seeks to purchase an event
16            ticket prior to purchase.
17    If the event ticket is an electronic ticket, the ticket
18issuer, ticket broker, or ticket resale marketplace shall
19deliver written proof of purchase to the purchaser as soon as
20is practicable, and no later than 24 hours, after the purchase
21of the event ticket. The written proof of purchase shall
22include the disclosures required under subparagraph (B).
23    (f-20) As used in this Section:
24    "Base event ticket price" means the price for the sale of
25the event ticket, exclusive of any taxes or event ticket fees.
26    "Event ticket" means any physical, electronic, or other

 

 

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1form of a certificate, document, voucher, token, or other
2evidence indicating that a person has the right to be admitted
3to an event.
4    "Event ticket fee" means a charge that must be paid in
5addition to the base event ticket price in order to obtain an
6event ticket from a ticket issuer, secondary market ticket
7issuer, or secondary market ticket exchange, seller, or
8reseller, including any service fee, charge and order
9processing fee, facility charge fee, and any other charge.
10"Event ticket fee" does not include any charge or fee for an
11optional product or service associated with the event that may
12be selected by a purchaser of an event ticket or fees to send
13physical tickets to a consumer through the mail, including
14private mail services.
15    "Optional product or service" means a product or service
16that an individual does not need to purchase to use or take
17possession of an event ticket.
18    "Ticket broker" means any person, including a ticket
19issuer, that resells or makes a secondary sale of an event
20ticket to the general public in the regular course of the trade
21or business of the person.
22    "Ticket issuer" means any person who makes event tickets
23available, directly or indirectly, to the general public, and
24may include:
25        (1) the operator of the venue;
26        (2) the sponsor or promoter of an event;

 

 

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1        (3) a sports team participating in an event or a
2    league whose teams are participating in an event;
3        (4) a theater company, musical group, or similar
4    participant in an event; and
5        (5) an agent for any such person.
6    "Ticket resale marketplace" means a person that operates a
7platform or exchange for the resale of tickets between third
8parties or between the ticket resale marketplace and a third
9party. "Ticket resale marketplace" includes a ticket issuer
10only to the extent the ticket issuer is acting to facilitate
11the resale of tickets between third parties or between the
12ticket issuer, acting as a ticket resale marketplace, and a
13third party.
14    "Total event ticket price" means the total cost of the
15event ticket, including the base event ticket price and any
16event ticket fees but excluding taxes.
17    (g) The provisions of Public Act 89-406 are severable
18under Section 1.31 of the Statute on Statutes.
19    (h) The provisions of this amendatory Act of the 94th
20General Assembly are severable under Section 1.31 of the
21Statute on Statutes.
22(Source: P.A. 99-431, eff. 1-1-16; 100-534, eff. 9-22-17.)
 
23    (815 ILCS 414/2)  (was 720 ILCS 375/2)
24    Sec. 2. (a) Whoever violates any of the provisions of
25Section 1.5 of this Act, except for subsections (f-10),

 

 

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1(f-15), and (f-20) of Section 1.5, shall be guilty of a Class A
2misdemeanor and may be fined up to $5,000 $5,000.00 for each
3offense, whoever violates subsections (f-10), (f-15), and
4(f-20) of Section 1.5 may be fined up to $5,000 for each
5offense, and whoever violates any other provision of this Act
6may be enjoined and be required to make restitution to all
7injured consumers upon application for injunctive relief by
8the State's Attorney or Attorney General and shall also be
9guilty of a Class A misdemeanor, and any owner, lessee,
10manager or trustee convicted under this Act shall, in addition
11to the penalty herein provided, forfeit the license of such
12theatre, circus, baseball park, or place of public
13entertainment or amusement so granted and the same shall be
14revoked by the authorities granting the same.
15    (b) Tickets sold or offered for sale by a person, firm or
16corporation in violation of Section 1.5 of this Act may be
17confiscated by a court on motion of the Attorney General, a
18State's Attorney, the sponsor of the event for which the
19tickets are being sold, or the owner or operator of the
20facility at which the event is to be held, and may be donated
21by order of the court to an appropriate organization as
22defined under Section 2 of the Charitable Games Act.
23    (c) The Attorney General, a State's Attorney, the sponsor
24of an event for which tickets are being sold, or the owner or
25operator of the facility at which an event is to be held may
26seek an injunction restraining any person, firm or corporation

 

 

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1from selling or offering for sale tickets in violation of the
2provisions of this Act. In addition, on motion of the Attorney
3General, a State's Attorney, the sponsor of an event for which
4tickets are being sold, or the owner or operator of the
5facility at which an event is to be held, a court may
6permanently enjoin a person, firm or corporation found guilty
7of violating Section 1.5 of this Act from engaging in the offer
8or sale of tickets.
9(Source: P.A. 99-78, eff. 7-20-15.)".