Bill Text: IL HB5444 | 2021-2022 | 102nd General Assembly | Introduced

---

Bill Title: Amends the Ticket Sale and Resale Act. Revises the nomenclature used in the Act. Provides for the regulation of primary sellers and venues (rather than a theater, circus, baseball park, and place of public entertainment or amusement). Provides for resale marketplaces instead of Internet auction sites. Prohibits the restriction of the ability of a purchaser to resell tickets. Provides alternative refund provisions for primary sellers and resale marketplaces that include store credits, time limits, and discounts on future events. Adds a provision concerning refund alternatives for ticket order cancellations and postponements due to events caused by epidemics and pandemics. Changes penalties for violating the Act. Defines terms. Makes other changes.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-04-29 - Added Chief Co-Sponsor Rep. Jay Hoffman [HB5444 Detail]

Download: Illinois-2021-HB5444-Introduced.html

---

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5444 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED:
815 ILCS 414/1 was 720 ILCS 375/1
815 ILCS 414/1.5 was 720 ILCS 375/1.5
815 ILCS 414/1.7 new
815 ILCS 414/1.9 new
815 ILCS 414/2 was 720 ILCS 375/2
Amends the Ticket Sale and Resale Act. Revises the nomenclature used in the Act. Provides for the regulation of primary sellers and venues (rather than a theater, circus, baseball park, and place of public entertainment or amusement). Provides for resale marketplaces instead of Internet auction sites. Prohibits the restriction of the ability of a purchaser to resell tickets. Provides alternative refund provisions for primary sellers and resale marketplaces that include store credits, time limits, and discounts on future events. Adds a provision concerning refund alternatives for ticket order cancellations and postponements due to events caused by epidemics and pandemics. Changes penalties for violating the Act. Defines terms. Makes other changes.
LRB102 26037 SPS 35470 b
A BILL FOR
HB5444 LRB102 26037 SPS 35470 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 Sections 1, 1.5, and 2 and by adding Sections 1.7 and
1.9 as follows:
(815 ILCS 414/1) (was 720 ILCS 375/1)
Sec. 1. Sale of tickets other than at box office
prohibited; exceptions.
(a) It is unlawful for any person, firm or corporation,
owner, lessee, manager, trustee, or any of their employees or
agents, owning, conducting, managing or operating any theater,
circus, sporting event baseball park, or place of public
entertainment or amusement where tickets of admission are sold
for any such places of amusement or public entertainment (each
hereinafter referred to as a "primary seller") to do any of the
following:
(1) sell or permit the sale, barter or exchange of
such admission tickets at any other place than in the box
office or on the premises of such theater, circus,
sporting event baseball park, or place of public
entertainment or amusement (each hereinafter referred to
as a "venue"), but nothing herein prevents such primary

HB5444 - 2 - LRB102 26037 SPS 35470 b
seller theater, circus, baseball park, or place of public
entertainment or amusement from placing any of its
admission tickets for sale at any other place at the same
price such admission tickets are sold by such primary
seller theater, circus, baseball park, or other place of
public entertainment or amusement at its box office or on
the premises of such venue places, at the same advertised
price or printed rate thereof; .
(2) restrict the ability of a purchaser who has
purchased tickets from such primary seller to resell any
such tickets (A) independent of such primary seller and
any secondary ticket sales marketplace owned or affiliated
with such primary seller and (B) on the secondary ticket
sales marketplace of the purchaser's choice; or
(3) sanction or deny admission to an event on the
basis that such purchaser resold a ticket, gifted a
ticket, or purchased a resold ticket or otherwise
discriminate against a purchaser who has resold, gifted,
or purchased a resold ticket by: (A) charging any transfer
or other fees, regardless of how characterized, for the
transfer of a ticket outside of the ticketing system
operated by the primary seller, (B) requiring the
provision of any data regarding the resale transaction
other than data required to validate and fulfill the
ticket transfer request, or (C) otherwise impeding the
transfer of a ticket through technological obstacles or

HB5444 - 3 - LRB102 26037 SPS 35470 b
other means.
(b) Any term or condition of the original sale of a ticket
to any venue theater, circus, baseball park, or place of
public entertainment or amusement where tickets of admission
are sold that purports to limit the terms or conditions of
resale of the ticket (including but not limited to the resale
price of the ticket) is unenforceable, null, and void if the
resale transaction is carried out by any of the means set forth
in subsections (b), (c), (d), and (f-5) , and (e) of Section 1.5
of this Act. This subsection shall not apply to a term or
condition of the original sale of a ticket to any venue
theater, circus, baseball park, or place of public
entertainment or amusement where tickets of admission are sold
that purports to limit the terms or conditions of resale of a
ticket specifically designated as seating in a special section
for a person with a physical disability.
(Source: P.A. 99-78, eff. 7-20-15.)
(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), (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,
theater theatre entertainments, or any other amusement for a

HB5444 - 4 - LRB102 26037 SPS 35470 b
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 venue 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

HB5444 - 5 - LRB102 26037 SPS 35470 b
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

HB5444 - 6 - LRB102 26037 SPS 35470 b
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

HB5444 - 7 - LRB102 26037 SPS 35470 b
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 venue 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 a resale marketplace an Internet auction listing
service duly registered with the Office of the Secretary of
State on a registration form provided by that Office. "Resale
marketplace" means any business, including a website, software
application for a mobile device, or any other digital
platform, or portion thereof, which facilitates the resale of
tickets between sellers and purchasers. 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.
This subsection (c) applies to resales described in this
subsection only if such resales are made through a resale
marketplace that the operator of the Internet auction listing

HB5444 - 8 - LRB102 26037 SPS 35470 b
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

HB5444 - 9 - LRB102 26037 SPS 35470 b
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 resale marketplace 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 resale marketplace Internet auction listing
service and the purchaser failed to receive the
ticket or tickets, unless such failure of delivery
was due to an act or omission of the purchaser; 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

HB5444 - 10 - LRB102 26037 SPS 35470 b
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

HB5444 - 11 - LRB102 26037 SPS 35470 b
(B) has obtained and maintains in force an errors
and omissions insurance policy that provides at least
$100,000 in coverage.
(d) This Act does not apply to the resale of tickets of
admission to a venue 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) (Blank). 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

HB5444 - 12 - LRB102 26037 SPS 35470 b
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

HB5444 - 13 - LRB102 26037 SPS 35470 b
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

HB5444 - 14 - LRB102 26037 SPS 35470 b
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), and (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

HB5444 - 15 - LRB102 26037 SPS 35470 b
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

HB5444 - 16 - LRB102 26037 SPS 35470 b
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 a resale
marketplace an Internet auction listing service.
(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. 99-431, eff. 1-1-16; 100-534, eff. 9-22-17.)
(815 ILCS 414/1.7 new)
Sec. 1.7. Refund alternative for cancellations and
postponements of events caused by epidemics and pandemics;
primary sellers and resale marketplaces.
(a) This Section applies to ticket orders sold by primary
sellers and resale marketplaces after January 1, 2023.
(b) If a ticketed event is canceled and not rescheduled by
reason of any epidemic or pandemic or any other similar cause

HB5444 - 17 - LRB102 26037 SPS 35470 b
not under the control of the primary seller or resale
marketplace, any ticket sales refunding requirement set forth
in other provisions of this Act do not apply and, as soon as a
time period of 45 days has elapsed after the official
cancellation of such ticketed event, the ticket purchaser may
request full compensation worth at least 100% of the value of
the purchaser's ticket order (including all fees, regardless
of how characterized) from the entity that directly sold the
purchaser the ticket.
(c) If a ticketed event is postponed or rescheduled by
reason of any epidemic or pandemic or any other similar cause
not under the control of the primary seller or resale
marketplace and the original tickets are valid for entry at
the time of the rescheduled event, then any purchaser of such
tickets shall not be entitled to a refund or other
compensation unless and until such ticketed event is canceled.
Notwithstanding the foregoing, if a postponed or rescheduled
ticketed event is rescheduled by the primary seller on a date
that is more than 12 months after the date that such event was
originally scheduled to occur, or remains postponed without a
rescheduled date announced for a 12-month period following the
originally scheduled date of performance, then as soon as the
date that is 12 months from the original date of performance of
the ticketed event occurs, the ticket purchaser may either:
(1) request full compensation worth at least 100% of
the value of the purchaser's ticket order (including all

HB5444 - 18 - LRB102 26037 SPS 35470 b
fees, regardless of how characterized) from the entity
that directly sold the purchaser the ticket; or
(2) retain and use the valid ticket at the rescheduled
event.
(d) Nothing in this Section shall prevent a primary seller
or resale marketplace from offering a full refund of the
amount paid to a purchaser upon such purchaser's request at
any time if such primary seller or resale marketplace opts to
do so.
(815 ILCS 414/1.9 new)
Sec. 1.9. Prohibition of certain ticket purchasing
software. A person may not knowingly use or sell software to
circumvent a security measure, access control system, or other
control or measure used by a primary seller or venue to enforce
event ticket purchasing limits or to maintain the integrity of
online ticket purchasing order rules.
(815 ILCS 414/2) (was 720 ILCS 375/2)
Sec. 2. (a) Whoever violates any of the provisions of
Section 1, 1.5, 1.7, or 1.9 of this Act shall be guilty of a
business offense Class A misdemeanor and may be fined up to
$5,000.00 for each offense and whoever violates any other
provision of this Act may be enjoined and be required to make
restitution to all injured consumers upon application for
injunctive relief by the State's Attorney or Attorney General

HB5444 - 19 - LRB102 26037 SPS 35470 b
and shall also be guilty of a Class A misdemeanor, and any
owner, lessee, manager or trustee convicted under this Act
shall, in addition to the penalty herein provided, forfeit the
license of such theater theatre, circus, baseball park, or
place of public entertainment or amusement so granted and the
same shall be revoked by the authorities granting the same.
(b) (Blank). Tickets sold or offered for sale by a person,
firm or corporation in violation of Section 1.5 of this Act may
be confiscated by a court on motion of the Attorney General, a
State's Attorney, the sponsor of the event for which the
tickets are being sold, or the owner or operator of the
facility at which the event is to be held, and may be donated
by order of the court to an appropriate organization as
defined under Section 2 of the Charitable Games Act.
(c) The Attorney General, a State's Attorney, the sponsor
of an event for which tickets are being sold, or the owner or
operator of the facility at which an event is to be held may
seek an injunction restraining any person, firm or corporation
from selling or offering for sale tickets in violation of the
provisions of this Act. In addition, on motion of the Attorney
General, a State's Attorney, the sponsor of an event for which
tickets are being sold, or the owner or operator of the
facility at which an event is to be held, a court may
permanently enjoin a person, firm or corporation found guilty
of violating Section 1.5 of this Act from engaging in the offer
or sale of tickets.

HB5444 - 20 - LRB102 26037 SPS 35470 b
(Source: P.A. 99-78, eff. 7-20-15.)