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Full Text of SB1821  100th General Assembly

SB1821sam002 100TH GENERAL ASSEMBLY

Sen. Pamela J. Althoff

Filed: 4/24/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1821

2    AMENDMENT NO. ______. Amend Senate Bill 1821, AS AMENDED,
3with reference to page and line numbers of Senate Amendment No.
41 by inserting on page 91 immediately below line 23 the
5following:
 
6    "Section 105. The Ticket Sale and Resale Act is amended by
7changing Section 1.5 as follows:
 
8    (815 ILCS 414/1.5)  (was 720 ILCS 375/1.5)
9    Sec. 1.5. Sale of tickets at more than face value
10prohibited; exceptions.
11    (a) Except as otherwise provided in subsections (b), (c),
12(d), (e), and (f-5) of this Section and in Section 4, it is
13unlawful for any person, persons, firm or corporation to sell
14tickets for baseball games, football games, hockey games,
15theatre entertainments, or any other amusement for a price more
16than the price printed upon the face of said ticket, and the

 

 

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1price of said ticket shall correspond with the same price shown
2at the box office or the office of original distribution.
3    (b) This Act does not apply to the resale of tickets of
4admission to a sporting event, theater, musical performance, or
5place 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 engage
15    in the practice of selling, or attempting to sell, tickets
16    for any event while sitting or standing near the facility
17    at which the event is to be held or is being held unless
18    the ticket broker or his or her employees are on property
19    they own, lease, or have permission to occupy.
20        (4) The ticket broker must comply with all requirements
21    of the Retailers' Occupation Tax Act and collect and remit
22    all other applicable federal, State and local taxes in
23    connection with the ticket broker's ticket selling
24    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, or
8place 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
12Department of Financial and Professional Regulation under the
13Auction License Act and with the Office of the Secretary of
14State on a registration form provided by that Office. This
15subsection (c) applies to both sales through an online bid
16submission process and sales at a fixed price on the same
17website or interactive computer service as an Internet auction
18listing service registered with the Department of Financial and
19Professional Regulation.
20    This subsection (c) applies to resales described in this
21subsection only if the operator of the Internet auction listing
22service meets the following requirements:
23        (1) the operator maintains a listing of the names and
24    addresses of its corporate officers;
25        (2) the operator is in compliance with all applicable
26    federal, State, and local laws relating to ticket selling

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        ticket is counterfeit or that the ticket has been
2        cancelled by the issuer due to non-payment, unless the
3        ticket is cancelled due to an act or omission by the
4        purchaser;
5            (C) the ticket fails to conform to its description
6        on the website; or
7            (D) the ticket seller willfully fails to send the
8        ticket or tickets to the purchaser, or the ticket
9        seller attempted to deliver the ticket or tickets to
10        the purchaser in the manner required by the website
11        operator and the purchaser failed to receive the ticket
12        or tickets.
13    Nothing in this subsection (e) shall be deemed to imply any
14limitation on ticket sales made in accordance with subsections
15(b), (c), and (d) of this Section or any limitation on sales
16made in accordance with Section 4.
17    (f) The provisions of subsections (b), (c), (d), and (e) of
18this 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, ticket
25brokers and resellers must comply with the requirements of this
26subsection. Before accepting any payment from a purchaser, a

 

 

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1ticket broker or reseller must disclose to the purchaser in a
2clear, conspicuous, and readily noticeable manner the
3following information:
4        (1) the registered name and city of the event venue;
5        (2) that the ticket broker or reseller is not the event
6    venue box office or its licensed ticket agent, but is,
7    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 ticket
13broker or reseller must require the purchaser to acknowledge by
14an affirmative act the disclosures required under this
15subsection. The disclosures required by this subsection must be
16made in a clear and conspicuous manner, appear together, and be
17preceded by the heading "IMPORTANT NOTICE" which must be in
18bold face font that is larger than the font size of the
19required 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 grant
24    the purchaser admission to the event described on the
25    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 auction
6listing service registered with the Department of Financial and
7Professional Regulation as required under the Auction License
8Act.
9    (g) The provisions of Public Act 89-406 are severable under
10Section 1.31 of the Statute on Statutes.
11    (h) The provisions of this amendatory Act of the 94th
12General Assembly are severable under Section 1.31 of the
13Statute on Statutes.
14(Source: P.A. 99-431, eff. 1-1-16.)".