Bill Text: IL HB5044 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Ticket Sale and Resale Act. Provides that the resale of specified tickets that are otherwise not covered by the Act shall not exceed 40% of the price printed on the face of the ticket or 40% of the price of the ticket at the box office, whichever is less. Provides that the Attorney General shall enforce the provision and may issue fines and penalties to operators who violate the provisions. Provides that the Office of the Attorney General shall adopt rules to enforce the provision, including the amount of fines for each violation and other financial penalties. Provides that the provision is operative 2 years after the effective date of the amendatory Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-08 - Referred to Rules Committee [HB5044 Detail]

Download: Illinois-2023-HB5044-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5044 Introduced , by Rep. Barbara Hernandez SYNOPSIS AS INTRODUCED:
815 ILCS 414/1.5 was 720 ILCS 375/1.5
Amends the Ticket Sale and Resale Act. Provides that the resale of specified tickets that are otherwise not covered by the Act shall not exceed 40% of the price printed on the face of the ticket or 40% of the price of the ticket at the box office, whichever is less. Provides that the Attorney General shall enforce the provision and may issue fines and penalties to operators who violate the provisions. Provides that the Office of the Attorney General shall adopt rules to enforce the provision, including the amount of fines for each violation and other financial penalties. Provides that the provision is operative 2 years after the effective date of the amendatory Act.
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A BILL FOR
HB5044 LRB103 39390 SPS 69569 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), (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

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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:

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(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

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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

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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
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.
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

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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

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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

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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.
(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) Except as provided in subsection (e-5), this 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

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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

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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

HB5044 - 11 - LRB103 39390 SPS 69569 b
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

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ticket or tickets.
Nothing in this subsection (e) shall be deemed to imply
any limitatio
n 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.
(e-5) The resale of tickets that satisfy the requirements
described in subsection (e) shall not exceed 40% of the price
printed on the face of the ticket or 40% of the price of the
ticket at the box office, whichever is less. The Attorney
General shall enforce the provisions of this subsection and
may issue fines and penalties to operators who violate this
subsection. The Office of the Attorney General shall adopt
rules to enforce this subsection, including the amount of
fines for each violation and other financial penalties. This
subsection is operative 2 years after the effective date of
this amendatory Act of the 103rd General Assembly.
(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

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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;

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