Bill Text: IL HB3103 | 2015-2016 | 99th General Assembly | Chaptered

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Bill Title: Amends the Ticket Sale and Resale Act. Imposes disclosure requirements and price limits on the resale of tickets. Provides that a ticket broker or reseller must disclose the identity and contact information for the event venue box office or its licensed ticket agent and disclose that the ticket broker or reseller is not the event venue box office or its licensed ticket agent. Requires the disclosure to be clear, conspicuous, and readily noticeable.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Passed) 2015-08-21 - Public Act . . . . . . . . . 99-0431 [HB3103 Detail]

Download: Illinois-2015-HB3103-Chaptered.html

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Public Act 099-0431
HB3103 Enrolled LRB099 10338 JLS 30565 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Ticket Sale and Resale Act is amended by
changing Section 1.5 as follows:
(815 ILCS 414/1.5) (was 720 ILCS 375/1.5)
Sec. 1.5. Sale of tickets at more than face value
prohibited; exceptions.
(a) Except as otherwise provided in subsections (b), (c),
(d), and (e), and (f-5) of this Section and in Section 4, it is
unlawful for any person, persons, firm or corporation to sell
tickets for baseball games, football games, hockey games,
theatre entertainments, or any other amusement for a price more
than the price printed upon the face of said ticket, and the
price of said ticket shall correspond with the same price shown
at the box office or the office of original distribution.
(b) This Act does not apply to the resale of tickets of
admission to a sporting event, theater, musical performance, or
place of public entertainment or amusement of any kind for a
price in excess of the printed box office ticket price by a
ticket broker who meets all of the following requirements:
(1) The ticket broker is duly registered with the
Office of the Secretary of State on a registration form

provided by that Office. The registration must contain a
certification that the ticket broker:
(A) engages in the resale of tickets on a regular
and ongoing basis from one or more permanent or fixed
locations located within this State;
(B) maintains as the principal business activity
at those locations the resale of tickets;
(C) displays at those locations the ticket
broker's registration;
(D) maintains at those locations a listing of the
names and addresses of all persons employed by the
ticket broker;
(E) is in compliance with all applicable federal,
State, and local laws relating to its ticket selling
activities, and that neither the ticket broker nor any
of its employees within the preceding 12 months have
been convicted of a violation of this Act; and
(F) meets the following requirements:
(i) the ticket broker maintains a toll free
number specifically dedicated for Illinois
consumer complaints and inquiries concerning
ticket sales;
(ii) the ticket broker has adopted a code that
advocates consumer protection that includes, at a
minimum:
(a-1) consumer protection guidelines;

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

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

reseller engaged in interstate or intrastate commerce on an
Internet auction listing service duly registered with the
Department of Financial and Professional Regulation under the
Auction License Act and with the Office of the Secretary of
State on a registration form provided by that Office. This
subsection (c) applies to both sales through an online bid
submission process and sales at a fixed price on the same
website or interactive computer service as an Internet auction
listing service registered with the Department of Financial and
Professional Regulation.
This subsection (c) applies to resales described in this
subsection only if the operator of the Internet auction listing
service meets the following requirements:
(1) the operator maintains a listing of the names and
addresses of its corporate officers;
(2) the operator is in compliance with all applicable
federal, State, and local laws relating to ticket selling
activities, and the operator's officers and directors have
not been convicted of a violation of this Act within the
preceding 12 months;
(3) the operator maintains, either itself or through an
affiliate, a toll free number dedicated for consumer
complaints;
(4) the operator provides consumer protections that
include at a minimum:
(A) consumer protection guidelines;

(B) a standard refund policy that guarantees to all
purchasers that it will provide and in fact provides a
full refund of the amount paid by the purchaser
(including, but not limited to, all fees, regardless of
how characterized) if the following occurs:
(i) the ticketed event is cancelled and the
purchaser returns the tickets to the seller or
Internet auction listing service; however,
reasonable delivery fees need not be refunded if
the previously disclosed guarantee specifies that
the fees will not be refunded if the event is
cancelled;
(ii) the ticket received by the purchaser does
not allow the purchaser to enter the ticketed event
for reasons that may include, without limitation,
that the ticket is counterfeit or that the ticket
has been cancelled by the issuer due to
non-payment, unless the ticket is cancelled due to
an act or omission by such purchaser;
(iii) the ticket fails to conform to its
description on the Internet auction listing
service; or
(iv) the ticket seller willfully fails to send
the ticket or tickets to the purchaser, or the
ticket seller attempted to deliver the ticket or
tickets to the purchaser in the manner required by

the Internet auction listing service and the
purchaser failed to receive the ticket or tickets;
and
(C) standards of professional conduct;
(5) the operator has adopted an independent and
disinterested dispute resolution procedure that allows
resellers or purchasers to file complaints against the
other and have those complaints mediated or resolved by a
third party, and requires the resellers or purchasers to
submit to the jurisdiction of the State of Illinois for
complaints involving a ticketed event held in Illinois;
(6) the operator either:
(A) complies with all applicable requirements of
the Retailers' Occupation Tax Act and collects and
remits all applicable federal, State, and local taxes;
or
(B) publishes a written notice on the website after
the sale of one or more tickets that automatically
informs the ticket reseller of the ticket reseller's
potential legal obligation to pay any applicable local
amusement tax in connection with the reseller's sale of
tickets, and discloses to law enforcement or other
government tax officials, without subpoena, the name,
city, state, telephone number, e-mail address, user ID
history, fraud complaints, and bidding and listing
history of any specifically identified reseller or

purchaser upon the receipt of a verified request from
law enforcement or other government tax officials
relating to a criminal investigation or alleged
illegal activity; and
(7) the operator either:
(A) has established and maintains a consumer
protection rebate fund in Illinois in an amount in
excess of $100,000, which must be cash available for
immediate disbursement for satisfaction of valid
consumer complaints; or
(B) has obtained and maintains in force an errors
and omissions insurance policy that provides at least
$100,000 in coverage and proof that the policy has been
filed with the Department of Financial and
Professional Regulation.
(d) This Act does not apply to the resale of tickets of
admission to a sporting event, theater, musical performance, or
place of public entertainment or amusement of any kind for a
price in excess of the printed box office ticket price
conducted at an auction solely by or for a not-for-profit
organization for charitable purposes under clause (a)(1) of
Section 10-1 of the Auction License Act.
(e) This Act does not apply to the resale of a ticket for
admission to a baseball game, football game, hockey game,
theatre entertainment, or any other amusement for a price more
than the price printed on the face of the ticket and for more

than the price of the ticket at the box office if the resale is
made through an Internet website whose operator meets the
following requirements:
(1) the operator has a business presence and physical
street address in the State of Illinois and clearly and
conspicuously posts that address on the website;
(2) the operator maintains a listing of the names of
the operator's directors and officers, and is duly
registered with the Office of the Secretary of State on a
registration form provided by that Office;
(3) the operator is in compliance with all applicable
federal, State, and local laws relating to its ticket
reselling activities regulated under this Act, and the
operator's officers and directors have not been convicted
of a violation of this Act within the preceding 12 months;
(4) the operator maintains a toll free number
specifically dedicated for consumer complaints and
inquiries regarding ticket resales made through the
website;
(5) the operator either:
(A) has established and maintains a consumer
protection rebate fund in Illinois in an amount in
excess of $100,000, which must be cash available for
immediate disbursement for satisfaction of valid
consumer complaints; or
(B) has obtained and maintains in force an errors

and omissions policy of insurance in the minimum amount
of $100,000 for the satisfaction of valid consumer
complaints;
(6) the operator has adopted an independent and
disinterested dispute resolution procedure that allows
resellers or purchasers to file complaints against the
other and have those complaints mediated or resolved by a
third party, and requires the resellers or purchasers to
submit to the jurisdiction of the State of Illinois for
complaints involving a ticketed event held in Illinois;
(7) the operator either:
(A) complies with all applicable requirements of
the Retailers' Occupation Tax Act and collects and
remits all applicable federal, State, and local taxes;
or
(B) publishes a written notice on the website after
the sale of one or more tickets that automatically
informs the ticket reseller of the ticket reseller's
potential legal obligation to pay any applicable local
amusement tax in connection with the reseller's sale of
tickets, and discloses to law enforcement or other
government tax officials, without subpoena, the name,
city, state, telephone number, e-mail address, user ID
history, fraud complaints, and bidding and listing
history of any specifically identified reseller or
purchaser upon the receipt of a verified request from

law enforcement or other government tax officials
relating to a criminal investigation or alleged
illegal activity; and
(8) the operator guarantees to all purchasers that it
will provide and in fact provides a full refund of the
amount paid by the purchaser (including, but not limited
to, all fees, regardless of how characterized) if any of
the following occurs:
(A) the ticketed event is cancelled and the
purchaser returns the tickets to the website operator;
however, reasonable delivery fees need not be refunded
if the previously disclosed guarantee specifies that
the fees will not be refunded if the event is
cancelled;
(B) the ticket received by the purchaser does not
allow the purchaser to enter the ticketed event for
reasons that may include, without limitation, that the
ticket is counterfeit or that the ticket has been
cancelled by the issuer due to non-payment, unless the
ticket is cancelled due to an act or omission by the
purchaser;
(C) the ticket fails to conform to its description
on the website; or
(D) the ticket seller willfully fails to send the
ticket or tickets to the purchaser, or the ticket
seller attempted to deliver the ticket or tickets to

the purchaser in the manner required by the website
operator and the purchaser failed to receive the ticket
or tickets.
Nothing in this subsection (e) shall be deemed to imply any
limitation on ticket sales made in accordance with subsections
(b), (c), and (d) of this Section or any limitation on sales
made in accordance with Section 4.
(f) The provisions of subsections (b), (c), (d), and (e) of
this Section apply only to the resale of a ticket after the
initial sale of that ticket. No reseller of a ticket may refuse
to sell tickets to another ticket reseller solely on the basis
that the purchaser is a ticket reseller or ticket broker
authorized to resell tickets pursuant to this Act.
(f-5) In addition to the requirements imposed under
subsections (b), (c), (d), (e), and (f) of this Section, ticket
brokers and resellers must comply with the requirements of this
subsection. Before accepting any payment from a purchaser, a
ticket broker or reseller must disclose to the purchaser in a
clear, conspicuous, and readily noticeable manner the
following information:
(1) the registered name and city of the event venue;
(2) that the ticket broker or reseller is not the event
venue box office or its licensed ticket agent, but is,
instead, a ticket broker or reseller and that lost or
stolen tickets may be reissued only by ticket brokers or
resellers;

(3) whether it is registered under this Act; and
(4) its refund policy, name, and contact information.
Before selling and accepting payment for a ticket, a ticket
broker or reseller must require the purchaser to acknowledge by
an affirmative act the disclosures required under this
subsection. The disclosures required by this subsection must be
made in a clear and conspicuous manner, appear together, and be
preceded by the heading "IMPORTANT NOTICE" which must be in
bold face font that is larger than the font size of the
required disclosures.
Ticket brokers and resellers must guarantee a full refund
of the amount paid by the purchaser, including handling and
delivery fees, if any of the following occurs:
(1) the ticket received by the purchaser does not grant
the purchaser admission to the event described on the
ticket, unless it is due to an act or omission by the
purchaser;
(2) the ticket fails to conform substantially to its
description as advertised; or
(3) the event for which the ticket has been resold is
cancelled and not rescheduled.
This subsection (f-5) does not apply to an Internet auction
listing service registered with the Department of Financial and
Professional Regulation as required under the Auction License
Act.
(g) The provisions of Public Act 89-406 are severable under

Section 1.31 of the Statute on Statutes.
(h) The provisions of this amendatory Act of the 94th
General Assembly are severable under Section 1.31 of the
Statute on Statutes.
(Source: P.A. 94-20, eff. 6-14-05.)