SB0092 Engrossed LRB094 06238 RLC 36309 b

1     AN ACT concerning criminal law.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Ticket Scalping Act is amended by changing
5 Sections 0.01, 1, and 1.5 as follows:
 
6     (720 ILCS 375/0.01)  (from Ch. 121 1/2, par. 157.30)
7     Sec. 0.01. Short title. This Act may be cited as the Ticket
8 Sale and Resale Scalping Act.
9 (Source: P.A. 86-1324.)
 
10     (720 ILCS 375/1)  (from Ch. 121 1/2, par. 157.31)
11     Sec. 1. Sale of tickets other than at box office
12 prohibited; exceptions.
13     (a) It is unlawful for any person, firm or corporation,
14 owner, lessee, manager, trustee, or any of their employees or
15 agents, owning, conducting, managing or operating any theater,
16 circus, baseball park, place of public entertainment or
17 amusement where tickets of admission are sold for any such
18 places of amusement or public entertainment to sell or permit
19 the sale, barter or exchange of such admission tickets at any
20 other place than in the box office or on the premises of such
21 theater, circus, baseball park, place of public entertainment
22 or amusement, but nothing herein prevents such theater, circus,
23 baseball park, place of public entertainment or amusement from
24 placing any of its admission tickets for sale at any other
25 place at the same price such admission tickets are sold by such
26 theater, circus, baseball park or other place of public
27 entertainment or amusement at its box office or on the premises
28 of such places, at the same advertised price or printed rate
29 thereof.
30     (b) Any term or condition of the original sale of a ticket
31 to any theater, circus, baseball park, or place of public

 

 

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1 entertainment or amusement where tickets of admission are sold
2 that purports to limit the terms or conditions of resale of the
3 ticket (including but not limited to the resale price of the
4 ticket) is unenforceable, null, and void if the resale
5 transaction is carried out by any of the means set forth in
6 subsections (b), (c), (d), and (e) of Section 1.5 of this Act.
7 This subsection shall not apply to a term or condition of the
8 original sale of a ticket to any theater, circus, baseball
9 park, or place of public entertainment or amusement where
10 tickets of admission are sold that purports to limit the terms
11 or conditions of resale of a ticket specifically designated as
12 seating in a special section for a person with a physical
13 disability.
14 (Source: Laws 1923, p. 322.)
 
15     (720 ILCS 375/1.5)  (from Ch. 121 1/2, par. 157.32)
16     Sec. 1.5. Sale of tickets at more than face value
17 prohibited; exceptions.
18     (a) Except as otherwise provided in subsections (b), (c),
19 (d), and (e) subsection (b) of this Section and in Section 4,
20 it is unlawful for any person, persons, firm or corporation to
21 sell tickets for baseball games, football games, hockey games,
22 theatre entertainments, or any other amusement for a price more
23 than the price printed upon the face of said ticket, and the
24 price of said ticket shall correspond with the same price shown
25 at the box office or the office of original distribution.
26     (b) This Act does not apply to the resale sale of tickets
27 of admission to a sporting event, theater, musical performance,
28 or place of public entertainment or amusement of any kind for a
29 price in excess of the printed box office ticket price by a
30 ticket broker who meets all of the following requirements:
31         (1) The ticket broker is duly registered with the
32     Office of the Secretary of State on a registration form
33     provided by that Office. The registration must contain a
34     certification that the ticket broker:
35             (A) engages in the resale of tickets on a regular

 

 

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1         and ongoing basis from one or more permanent or fixed
2         locations located within this State;
3             (B) maintains as the principal business activity
4         at those locations the resale of tickets;
5             (C) displays at those locations the ticket
6         broker's registration;
7             (D) maintains at those locations a listing of the
8         names and addresses of all persons employed by the
9         ticket broker;
10             (E) is in compliance with all applicable federal,
11         State, and local laws relating to its ticket selling
12         activities, and that neither the ticket broker nor any
13         of its employees within the preceding 12 months have
14         been convicted of a violation of this Act; and
15             (F) that the ticket broker meets the following
16         requirements:
17                 (i) the ticket broker maintains a statewide
18             toll free number specifically dedicated for
19             Illinois for consumer complaints and inquiries
20             concerning ticket sales;
21                 (ii) the ticket broker has adopted a code that
22             advocates consumer protection that includes, at a
23             minimum:
24                     (a-1) consumer protection guidelines;
25                     (b-1) a standard refund policy. In the
26                 event a refund is due, the ticket broker shall
27                 provide that refund without charge other than
28                 for reasonable delivery fees for the return of
29                 the tickets; and
30                     (c-1) standards of professional conduct;
31                 (iii) the ticket broker has adopted a
32             procedure for the binding resolution of consumer
33             complaints by an independent, disinterested third
34             party and thereby submits to the jurisdiction of
35             the State of Illinois; and
36                 (iv) the ticket broker has established and

 

 

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1             maintains a consumer protection rebate fund in
2             Illinois in an amount in excess of $100,000, at
3             least 50% of which must be cash available for
4             immediate disbursement for satisfaction of valid
5             consumer complaints.
6         Alternatively, the ticket broker may fulfill the
7     requirements of subparagraph (F) of this paragraph (1)
8     subsection (b) if the ticket broker certifies that he or
9     she belongs to a professional association organized under
10     the laws of this State, or organized under the laws of any
11     other state and authorized to conduct business in Illinois,
12     that has been in existence for at least 3 years prior to
13     the date of that broker's registration with the Office of
14     the Secretary of State, and is specifically dedicated, for
15     and on behalf of its members, to provide and maintain the
16     consumer protection requirements of subparagraph (F) of
17     this paragraph (1) subsection (b) to maintain the integrity
18     of the ticket brokerage industry.
19         (2) (Blank).
20         (3) The ticket broker and his employees must not engage
21     in the practice of selling, or attempting to sell, tickets
22     for any event while sitting or standing near the facility
23     at which the event is to be held or is being held unless
24     the ticket broker or his or her employees are on property
25     they own, lease, or have permission to occupy.
26         (4) The ticket broker must comply with all requirements
27     of the Retailers' Occupation Tax Act and collect and remit
28     all other applicable federal, State and local taxes laws in
29     connection with the ticket broker's his ticket selling
30     activities.
31         (5) Beginning January 1, 1996, no ticket broker shall
32     advertise for resale any tickets within this State unless
33     the advertisement contains the name of the ticket broker
34     and the Illinois registration number issued by the Office
35     of the Secretary of State under this Section.
36         (6) Each ticket broker registered under this Act shall

 

 

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1     pay an annual registration fee of $100.
2     (c) This Act does not apply to the sale of tickets of
3 admission to a sporting event, theater, musical performance, or
4 place of public entertainment or amusement of any kind for a
5 price in excess of the printed box office ticket price by a
6 reseller engaged in interstate or intrastate commerce on an
7 Internet auction listing service duly registered with the
8 Department of Financial and Professional Regulation under the
9 Auction License Act and with the Office of the Secretary of
10 State on a registration form provided by that Office. This
11 subsection (c) applies to both sales through an online bid
12 submission process and sales at a fixed price on the same
13 website or interactive computer service as an Internet auction
14 listing service registered with the Department of Financial and
15 Professional Regulation.
16     This subsection (c) applies to resales described in this
17 subsection only if the operator of the Internet auction listing
18 service meets the following requirements:
19         (1) the operator maintains a listing of the names and
20     addresses of its corporate officers;
21         (2) the operator is in compliance with all applicable
22     federal, State, and local laws relating to ticket selling
23     activities, and the operator's officers and directors have
24     not been convicted of a violation of this Act within the
25     preceding 12 months;
26         (3) the operator maintains, either itself or through an
27     affiliate, a toll free number dedicated for consumer
28     complaints;
29         (4) the operator provides consumer protections that
30     include at a minimum:
31             (A) consumer protection guidelines;
32             (B) a standard refund policy that guarantees to all
33         purchasers that it will provide and in fact provides a
34         full refund of the amount paid by the purchaser
35         (including, but not limited to, all fees, regardless of
36         how characterized) if the following occurs:

 

 

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1                 (i) the ticketed event is cancelled and the
2             purchaser returns the tickets to the seller or
3             Internet auction listing service; however,
4             reasonable delivery fees need not be refunded if
5             the previously disclosed guarantee specifies that
6             the fees will not be refunded if the event is
7             cancelled;
8                 (ii) the ticket received by the purchaser does
9             not allow the purchaser to enter the ticketed event
10             for reasons that may include, without limitation,
11             that the ticket is counterfeit or that the ticket
12             has been cancelled by the issuer due to
13             non-payment, unless the ticket is cancelled due to
14             an act or omission by such purchaser;
15                 (iii) the ticket fails to conform to its
16             description on the Internet auction listing
17             service; or
18                 (iv) the ticket seller willfully fails to send
19             the ticket or tickets to the purchaser, or the
20             ticket seller attempted to deliver the ticket or
21             tickets to the purchaser in the manner required by
22             the Internet auction listing service and the
23             purchaser failed to receive the ticket or tickets;
24             and
25             (C) standards of professional conduct;
26         (5) the operator has adopted an independent and
27     disinterested dispute resolution procedure that allows
28     resellers or purchasers to file complaints against the
29     other and have those complaints mediated or resolved by a
30     third party, and requires the resellers or purchasers to
31     submit to the jurisdiction of the State of Illinois for
32     complaints involving a ticketed event held in Illinois;
33         (6) the operator either:
34             (A) complies with all applicable requirements of
35         the Retailers' Occupation Tax Act and collects and
36         remits all applicable federal, State, and local taxes;

 

 

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

 

 

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1 than the price printed on the face of the ticket and for more
2 than the price of the ticket at the box office if the resale is
3 made through an Internet website whose operator meets the
4 following requirements:
5         (1) the operator has a business presence and physical
6     street address in the State of Illinois and clearly and
7     conspicuously posts that address on the website;
8         (2) the operator maintains a listing of the names of
9     the operator's directors and officers, and is duly
10     registered with the Office of the Secretary of State on a
11     registration form provided by that Office;
12         (3) the operator is in compliance with all applicable
13     federal, State, and local laws relating to its ticket
14     reselling activities regulated under this Act, and the
15     operator's officers and directors have not been convicted
16     of a violation of this Act within the preceding 12 months;
17         (4) the operator maintains a toll free number
18     specifically dedicated for consumer complaints and
19     inquiries regarding ticket resales made through the
20     website;
21         (5) the operator either:
22             (A) has established and maintains a consumer
23         protection rebate fund in Illinois in an amount in
24         excess of $100,000, which must be cash available for
25         immediate disbursement for satisfaction of valid
26         consumer complaints; or
27             (B) has obtained and maintains in force an errors
28         and omissions policy of insurance in the minimum amount
29         of $100,000 for the satisfaction of valid consumer
30         complaints;
31         (6) the operator has adopted an independent and
32     disinterested dispute resolution procedure that allows
33     resellers or purchasers to file complaints against the
34     other and have those complaints mediated or resolved by a
35     third party, and requires the resellers or purchasers to
36     submit to the jurisdiction of the State of Illinois for

 

 

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1     complaints involving a ticketed event held in Illinois;
2         (7) the operator either:
3             (A) complies with all applicable requirements of
4         the Retailers' Occupation Tax Act and collects and
5         remits all applicable federal, State, and local taxes;
6         or
7             (B) publishes a written notice on the website after
8         the sale of one or more tickets that automatically
9         informs the ticket reseller of the ticket reseller's
10         potential legal obligation to pay any applicable local
11         amusement tax in connection with the reseller's sale of
12         tickets, and discloses to law enforcement or other
13         government tax officials, without subpoena, the name,
14         city, state, telephone number, e-mail address, user ID
15         history, fraud complaints, and bidding and listing
16         history of any specifically identified reseller or
17         purchaser upon the receipt of a verified request from
18         law enforcement or other government tax officials
19         relating to a criminal investigation or alleged
20         illegal activity; and
21         (8) the operator guarantees to all purchasers that it
22     will provide and in fact provides a full refund of the
23     amount paid by the purchaser (including, but not limited
24     to, all fees, regardless of how characterized) if any of
25     the following occurs:
26             (A) the ticketed event is cancelled and the
27         purchaser returns the tickets to the website operator;
28         however, reasonable delivery fees need not be refunded
29         if the previously disclosed guarantee specifies that
30         the fees will not be refunded if the event is
31         cancelled;
32             (B) the ticket received by the purchaser does not
33         allow the purchaser to enter the ticketed event for
34         reasons that may include, without limitation, that the
35         ticket is counterfeit or that the ticket has been
36         cancelled by the issuer due to non-payment, unless the

 

 

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1         ticket is cancelled due to an act or omission by the
2         purchaser;
3             (C) the ticket fails to conform to its description
4         on the website; or
5             (D) the ticket seller willfully fails to send the
6         ticket or tickets to the purchaser, or the ticket
7         seller attempted to deliver the ticket or tickets to
8         the purchaser in the manner required by the website
9         operator and the purchaser failed to receive the ticket
10         or tickets.
11     Nothing in this subsection (e) shall be deemed to imply any
12 limitation on ticket sales made in accordance with subsections
13 (b), (c), and (d) of this Section or any limitation on sales
14 made in accordance with Section 4.
15     (f) The provisions of subsections (b), (c), (d), and (e) of
16 this Section apply only to the resale of a ticket after the
17 initial sale of that ticket. No reseller of a ticket may refuse
18 to sell tickets to another ticket reseller solely on the basis
19 that the purchaser is a ticket reseller or ticket broker
20 authorized to resell tickets pursuant to this Act.
21     (g) The provisions of Public Act 89-406 this amendatory Act
22 of 1995 are severable under Section 1.31 of the Statute on
23 Statutes.
24     (h) The provisions of this amendatory Act of the 94th
25 General Assembly are severable under Section 1.31 of the
26 Statute on Statutes.
27 (Source: P.A. 89-406, eff. 11-15-95.)
 
28     Section 99. Effective date. This Act takes effect upon
29 becoming law.