Background reading on the promoter's ordinance: The proposed law, and the Chicago Music Commission's response to it

Statement from Chicago Music Commission board member Bruce Iglauer (president of Alligator Records):

• The Chicago Music Commission shares the City's commitment to ensuring the safe and responsible enjoyment of entertainment in Chicago and strongly concurs with the City's goal of rooting out illegitimate “underground” promoters operating in Chicago with sometimes dangerous consequences while not overburdening Chicago's vibrant music scene. However, we cannot support this ordinance in its current form.

• CMC is extremely disappointed in the City’s public comment process for this significant change to Chicago's music landscape, especially given the City’s commendable past efforts to work with the music community on this important effort. As was clear at today's Licensing Committee hearing, there are still many, many concerns and questions that Chicago's music community has about the language of this ordinance, who will be affected, and how it will be enforced.

• The language of the ordinance as drafted unnecessarily and perhaps prohibitively increases the cost of doing business for any promoter seeking to work with PPA-licensed music venues under 500 seats and those without "fixed seating", including, among many others, Schuba’s, Buddy Guy’s Legends, the Vic Theater, the Riviera Theater, the Metro, The Hideout, Uncommon Ground, and Martyrs’. Many of these small and non-fixed seating venues rely on contracting with third party promoters for a significant portion of their revenue while their customers safely enjoy the entertainment. This ordinance will not address the "bad actors" CMC and the City agree are the root of the problem--underground promoters seeking to make a quick buck who put on unsafe events.

• The ordinance will reduce the amount of music in Chicago, make events more expensive for consumers, dampen the large and growing economic engine that is Chicago music, and create a much less supportive business climate for Chicago’s small music business community. As Chicago competes for business with cities from around the world in addition to our own regional suburbs, we cannot afford to put this ordinance’s well-intentioned but overly broad financial weight on Chicago’s music community.

• That is why CMC welcomes the opportunity to work the Committee and the City to revise this ordinance to address the very real problem of “underground” promoters while ensuring that law-abiding small business people that make up Chicago’s music economy are not unnecessarily overburdened.

And here is the law itself, rewritten from the version first presented last year and further adjusted in committee on Wednesday, but with many of the problems still intact, according to its growing number of critics and opponents. (Warning: Even veteran readers of city legislation say this particular law seems to be written in ancient Greek in some stretches; I welcome any readers' attempts to make more sense of it than I have.)

Draft Ordinance–April 28, 2008
S U B S T I T U T E
O R D I N A N C E
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Title IV of the Municipal Code of the City of Chicago is hereby amended
by inserting a new Chapter 4-157, titled “Event Promoters”, as follows:
4-157-010 Definitions.
As used in this chapter:
“Amusement” has the meaning ascribed to the term in section 4-156-010. This definition
applies only to amusements occurring, or planned to occur, within the corporate limits of the City
of Chicago.
“Any other license or permit” means: (1) a public place of amusement license or
performing arts venue license issued under Chapter 4-156 or its equivalent in another
jurisdiction; or (2) an outdoor special event permit issued under section 10-8-335 or its
equivalent in another jurisdiction; or (3) an indoor special event license issued under Article IV
of Chapter 4-156 or its equivalent in another jurisdiction; or (4) a liquor license of any type
issued under Chapter 4-60 or its equivalent in another jurisdiction; or (5) any license or permit
other than those identified in items (1) through (4) of this definition required by law to sponsor,
promote, host or serve liquor at an amusement or event; or (6) any combination thereof.
“Controlling person” means any person who: (1) is an officer, director, manager, partner
or limited partner of an entity seeking or holding a license under this chapter; or (2) owns,
directly or indirectly, 10 per cent or more of the interest in an entity seeking or holding a license
under this chapter.
“Department” means the department of business affairs and licensing.
“Director” means the director of business affairs and licensing.
“Establishment” or “site” means any building, or any indoor or outdoor premises, or any
part thereof, used or intended to be used to present an amusement or event.
“Event” means: (1) any activity requiring a special event liquor license under Chapter
4-60 of this code; or (2) any activity requiring city approval of a special event liquor license
under the Illinois Liquor Control Act; or (3) any outdoor special event as defined in section
10-8-335; or (4) any indoor special event as defined in section 4-156-530. This definition applies
only to events occurring, or planned to occur, within the corporate limits of the City of Chicago.
“Event promoter” or “promoter” means any person who: (1) is directly or indirectly
responsible for the organization of an amusement or event, as evidenced by activities such as
contracting with the principals, selecting entertainment, advertising or otherwise holding out an
amusement or event to members of the general public, inviting participants to an amusement or
event, or renting or controlling the site of an amusement or event; and (2) directly or indirectly
receives or shares in any of the following: (a) admission or entrance fees paid by participants or
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spectators at the amusement or event; or (b) compensation, consideration or other revenue from
sponsors of or private donors to the amusement or event; or (c) revenues from concessions or
other sales at the amusement or event. The term “event promoter” includes nonresident event
promoters who do business within the City of Chicago.
“Fireworks” has the meaning ascribed to the term in the Fireworks Use Act, as
amended, codified at 425 ILCS 35/0.01 et seq.
“Fixed seating” or “fixed seats” means seats securely fastened to the floor.
“Licensee” means any person licensed or required to be licensed under this chapter.
“Maximum capacity” means the number of persons that a building, premises, room, floor
or other area or space may accommodate, as determined by the building commissioner pursuant
to Chapter 13-36 of this code or by any other appropriate government official.
“Not-for-profit corporation” means any not-for-profit organization which: (1) has been
registered with the State of Illinois as a not-for-profit corporation for at least three years prior to
the presentation of a promoted amusement or event, or (2) qualifies for tax exempt status under
Section 501(c)(3), 501(c)(4) or 501(c)(6) of the United States Internal Revenue Code of 1986, as
amended.
“On-site representative” means any person designated pursuant to the requirements of
section 4-157-140 as a licensee’s on-site representative.
“Promoted amusement or event” means any amusement or event promoted by a licensee
under this chapter.
“Pyrotechnic display” has the meaning ascribed to the term in the Pyrotechnic Operator
Licensing Act, as amended, codified at 225 ILCS 227/1 et seq.
“Throughout the duration” means at least one hour before the promoted amusement or
event, during the promoted amusement or event, and until all persons attending or in any way
connected with the promoted amusement or event have left the establishment presenting such
amusement or event.
4-157-020 License–When required–Exclusions.
(A) No person shall engage in the business of event promoter without first having
obtained an event promoter license under this chapter.
(B) The following persons are not event promoters within the meaning of this chapter:
(1) any print or broadcast media who are paid for page space or broadcast time to
advertise an amusement or event but exercise no other financial or operational
responsibility in connection therewith;
(2) any off-premises ticket seller who sells admission tickets to an amusement or
event in advance of such amusement or event but exercises no other financial or
operational responsibility in connection therewith;
(3) any performer who is paid for his performance at an amusement or event but
exercises no other financial or non-performance-related operational responsibility
in connection therewith;
(4) any agent of an athlete or performer who is compensated for negotiating his
client’s contract to perform at an amusement or event but exercises no other
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3
financial or operational responsibility in connection therewith;
(5) any licensee under Chapter 4-156 of this code, to the extent that the licensee
personally plans, prepares or executes an amusement or event in the course of
such licensed business;
(6) any full-time employee of a licensee under Chapter 4-156 or under this chapter, to
the extent that the employee plans, prepares or executes an amusement or event in
the course of such employment;
(7) the City of Chicago or its sister agencies;
(8) any employee of the City of Chicago or its sister agencies, to the extent that the
employee plans, prepares or executes an amusement or event in the course of such
employment;
(9) any not-for-profit corporation, to the extent that the not-for-profit corporation
personally plans, prepares or executes an amusement or event on its own behalf;
(10) any bona fide member or employee of a not-for-profit corporation, to the extent
that such member or employee plans, prepares or executes an amusement or event
in the course of such membership or employment on behalf of the not-for-profit
corporation; and
(11) any person who exclusively promotes amusements or events at establishments or
venues meeting all of the following requirements: (1) the owner or operator of the
establishment or venue at which the promoted amusement or event is presented
holds a valid public place of amusement license or valid performing arts venue
license issued under Chapter 4-156 of this code, and (2) the establishment or
venue at which the promoted event is presented (i) has fixed seating only and all
patrons attending any promoted amusement or event at such establishment or
venue are seated in such fixed seats; or (ii) has a fixed seating capacity of 500 or
more persons.
4-157-025 License classification.
Event promoter licenses shall be divided into the classifications which follow. The
holders of such licenses shall be entitled to engage in the business of event promoter within the
City of Chicago subject to the following limitations:
Class A license: The holder of a Class A license is subject to no limitation as to the
maximum capacity of the building, premises, room, floor or other area where a promoted
amusement or event is presented.
Class B license: The holder of a Class B license is entitled to promote an amusement or
event at an establishment, if the maximum capacity of the building, premises, room, floor or
other area where a promoted amusement or event is presented is 2000 persons or less.
Class C license: The holder of a Class C license is entitled to promote an amusement or
event at an establishment, if the maximum capacity of the building, premises, room, floor or
other area where a promoted amusement or event is presented is 500 persons or less.
Class D license: The holder of a Class D license is entitled to promote an amusement or
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event at an establishment, if the maximum capacity of the building, premises, room, floor or
other area where a promoted amusement or event is presented is 100 persons or less.
4-157-030 License–Posting–Nontransferability.
Each license issued pursuant to this chapter shall be posted in a conspicuous place near
the entrance of the licensee’s chief place of business. On the date(s) that a promoted amusement
or event is presented at an establishment, a photocopy of the event promoter license shall be
posted in a conspicuous place at such establishment. No transfer of ownership shall be allowed
on any license issued under this chapter.
4-157-040 License–Application.
An application for a license under this chapter shall be made in writing to the director, on
a form provided by the department, and shall be accompanied by the following:
(A) If the applicant is an individual:
(1) the applicant’s full name, residence address, business address, business
e-mail address, business telephone number and cell phone number;
(2) the name, residence address and residence telephone number of all
controlling persons other than the applicant, if any;
(3) proof that the applicant and all controlling persons are at least 21 years of
age;
(B) If the applicant is a corporation:
(1) the corporate name, address, e-mail address and telephone number of the
applicant’s principal office or place of business;
(2) the date and state of incorporation;
(3) the name, residence address and residence telephone number of all
controlling persons and registered agents;
(4) proof that all controlling persons are at least 21 years of age;
(5) proof that the corporation is in good standing under the laws of the State of
Illinois;
(C) If the applicant is a partnership or limited liability company:
(1) the name, address, e-mail address and telephone number of the applicant’s
principal office or place of business;
(2) the name, residence address and residence telephone number of all
partners, if a general partnership; of all general and limited partners, if a
limited partnership; of all managers, managing members and members, if a
limited liability company; and of all controlling persons and registered
agents;
(3) proof that all controlling persons are at least 21 years of age;
(D) If the applicant seeks to do business under an assumed name, proof of compliance
with the Illinois Assumed Business Name Act, as amended;
(E) A list of every jurisdiction and name under which the applicant, within the last 5
Draft Ordinance–April 28, 2008
5
years, has done business as an event promoter;
(F) A statement as to whether, within the last 5 years, the applicant and each
controlling person has had an event promoter’s license or any other equivalent
license or permit, regardless of nomenclature or characterization, revoked or
suspended in any jurisdiction and if so, the details surrounding each such
suspension or revocation;
(G) A statement as to whether, within the last five years, the applicant and each
controlling person has been either convicted, in custody, under parole or under
any other non-custodial supervision resulting from a conviction in a court of any
jurisdiction for the commission of a felony of any kind, or of a criminal offense of
whatever degree involving theft, fraud, perjury or dishonesty and if so, the details
surrounding each such conviction;
(H) A statement as to whether, within the last five years, the applicant and each
controlling person has been convicted or found liable of knowingly making a false
statement of material fact or a knowing and material misrepresentation or
omission on or in connection with any license application submitted under this
chapter and if so, the details surrounding each such conviction or finding of
liability;
(I) The date of birth and social security number of each natural person named in the
license application;
(J) The license fee, as required by section 4-157-060;
(K) Fingerprints, as required by section 4-157-090;
(L) Proof of insurance, as required by section 4-157-100;
(L) An indemnification agreement, as required by section 4-157-110; and
(M) Any other information that the director may require.
It is a condition of the license that all information in the license application be kept
current. Any change in required information shall be reported to the director, on a form prepared
by the department, no later than ten days after the change has occurred, excluding Saturdays,
Sundays and legal holidays.
4-157-050 License issuance–Prohibited when.
(A) No license shall be issued under this chapter unless all of the following requirements
are met:
(1) The applicant and each controlling person is at least 21 years of age;
(2) The director determines that: (a) within the last five years, the applicant and each
controlling person has not had an event promoter’s license or any other equivalent
license or permit, regardless of nomenclature or characterization, revoked in any
jurisdiction for any cause other than failure to renew the license or permit, or
suspended for more than 30 days in any jurisdiction for any cause other than
failure to file a timely license or permit renewal; and (b) if, within the last five
years, the applicant or any controlling person has had such license or permit
revoked or suspended for cause in any jurisdiction, such person has been
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6
sufficiently rehabilitated to warrant the public trust. The burden of proof of
sufficient rehabilitation shall be on the applicant or controlling person, as
applicable;
(3) The director determines that: (a) within the last five years, the applicant and each
controlling person has not been convicted, in custody, under parole or under any
other non-custodial supervision resulting from a conviction in a court of any
jurisdiction for the commission of a felony of any kind, or of any criminal offense
of whatever degree involving theft, fraud, perjury or dishonesty; and (b) if, within
the last five years, the applicant or any controlling person has been so convicted,
such person has been sufficiently rehabilitated to warrant the public trust. The
burden of proof of sufficient rehabilitation shall be on the applicant or controlling
person, as applicable;
(4) The director determines that, within the last five years, the applicant and each
controlling person has not been convicted or found liable of knowingly making a
false statement of material fact or a knowing and material misrepresentation or
omission on or in connection with any license application submitted under this
chapter; and
(5) The applicant and each controlling person submits to fingerprinting.
(B) No license shall be issued under this chapter if the director determines that the
applicant or any controlling person is concealing the actual or beneficial ownership of the
business identified in the license application or is otherwise evading by subterfuge, disguise or
indirection any of the licensing requirements of this chapter.
(C) Eligibility for issuance of a license under this section shall be a continuing
requirement for maintaining a license under this chapter. Failure to maintain eligibility for
issuance of a license under this chapter may result in license suspension or revocation in
accordance with the requirements of section 4-4-280 of this code.
4-157-060 License–Fee.
The event promoter license fee, payable every two years, shall be as set forth in section
4-5-010 of this code.
4-157-070 License–Term.
The event promoter license shall expire on the date indicated in section 4-4-021.
4-157-080 License number to be printed where.
Licensees shall print their event promoter license number legibly in all of the following
places: (1) on the front page of every estimate, contract and subcontract provided by or entered
into by the licensee or his agent in connection with any promoted amusement or event; (2) in all
advertisements of the licensee’s services as an event promoter; and (3) in all advertisements of
any promoted amusement or event. In addition to any other penalty provided by law, any person
who violates any of the requirements of this section shall be fined not less than $200.00, nor
more than $500.00, for each offense. Each day that a violation continues shall constitute a
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separate and distinct offense to which a separate fine shall apply.
4-157-090 Fingerprinting–Required.
Each applicant for an event promoter license and each controlling person shall be
required to submit to fingerprinting in accordance with procedures and regulations prescribed by
the director.
4-157-100 Insurance–Required.
Each applicant for a license under this chapter shall furnish a certificate of insurance,
evidencing commercial general liability insurance, with limits of not less than $300,000.00 per
occurrence for bodily injury and property damage arising in any way from the issuance of the
license.
Each policy of insurance required under this section shall: (1) be issued by an insurer
authorized to insure in Illinois; (2) name the City of Chicago as additional insured; and
(3) include a provision requiring 30 days’ advance notice to the director prior to cancellation or
lapse of the policy.
The licensee shall maintain the insurance required under this section in full force and
effect for the duration of the license period. A single violation of this section may result in
suspension or revocation of the event promoter license in accordance with the requirements of
section 4-4-280 of this code.
4-157-110 Indemnification agreement–Required.
Each applicant for an event promoter license shall agree, in writing, to indemnify, defend
and hold harmless the City of Chicago for any loss that results, directly or indirectly, from the
issuance or use of such license.
4-157-120 Event promoter’s contract–Required.
(A) No promoted amusement or event shall be presented at an establishment except
pursuant to a written contract between the licensee and the owner, lessee or manager of the
establishment presenting such promoted amusement or event. Such contract shall include the
following information:
(1) the licensee’s license number;
(2) if any other license or permit is required for the promoted amusement or event, the
applicable license or permit number;
(3) the maximum capacity of the building, premises, room, floor or other area where
the promoted amusement or event will be presented;
(4) the name and cell phone number of the licensee’s on-site representative(s);
(5) the number of security personnel that will be present, if any, during the promoted
amusement or event and the name of the employer of such security personnel;
(6) the respective responsibilities, functions, duties and rights of the parties to the
contract required by this section;
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(7) the date or dates, and location and hours of operation, of the promoted amusement
or event;
(8) whether any fireworks or pyrotechnic display, as defined in section 4-157-010,
will be used during the course of the promoted amusement or event and if so,
proof of compliance with section 15-4-550 and 15-4-560, as applicable;
(9) whether any special effects involving the installation or alteration of electrical
equipment will be used during the course of the amusement or event and if so,
proof of compliance with section 13-12-360; and
(10) whether any special effects other than those identified in items (8) and (9) of this
subsection or equipment of a type posing a danger to the public health, safety or
welfare will be used during the course of the promoted amusement or event,
including, but not limited to, sound concussions, lasers, animals, flying objects,
people with rigging or electrical hazards associated with computer-generated
effects or water effects and if so, the precautions that will be taken by the
respective parties to the contract to address the public safety threat posed by such
special effects or equipment, including, but not limited to, proof of compliance
with any applicable permitting requirement or other provision of this code.
(B) A copy of the contract required by this section shall be: (1) kept at the site of the
promoted amusement or event throughout the duration of such amusement or event; and (2) in
the possession of the licensee’s on-site representative at all times that any equipment, supplies or
materials to be used in presenting the promoted amusement or event are present at the site of
such amusement or event. If the establishment presenting the amusement or event requires any
other license or permit as defined in section 4-157-010, a copy of the contract shall also be kept
in the possession of the holder of such required license or permit and of any person managing or
directing the day-to-day operations of the establishment for a period of not less than 7 days
before and 30 days after the amusement or event is presented. Upon request, a copy of the
contract required by this section shall be made available for inspection by any authorized city
official.
4-157-130 Record keeping–Required.
The licensee shall maintain on file, for a period of three years, complete and accurate
records of all business activities or transactions governing or in any way connected to a
promoted amusement or event. Such records shall include, but are not limited to, the following:
(1) the event promoter contract required by section 4-157-120; (2) all other applicable contracts;
(3) all advance ticket sales; (4) all tickets sold at the door; and (5) all admission and entrance fees
paid by participants or spectators at the promoted amusement or event.. Such three-year period
shall be measured from the last day of operation of the promoted amusement or event as set forth
in the contract required by section 4-157-120. Upon request, the records required by this section
shall be made available, during regular business hours or in case of emergency, for inspection by
any authorized city official.
Draft Ordinance–April 28, 2008
9
4-157-140 On-site representative–Designation required–Duties.
(A) The licensee shall designate an on-site representative(s) for each promoted
amusement or event. Such on-site representative(s) shall be: (1) at least 21 years of age;
(2) responsible for discharging all of the duties identified in subsection (C) of this section; and
(3) the same person(s) named as the licensee’s on-site representative(s) in the contract required
by section 4-157-120. If, due to circumstances beyond the licensee’s control, the on-site
representative(s) named in the contract is unable to serve as the licensee’s on-site representative
at the promoted amusement or event covered by such contract, the licensee shall: (i) designate
another person meeting the requirements of this section to serve as the licensee’s on-site
representative at the promoted amusement or event; and (ii) modify the contract to state the name
of the person so designated.
(B) No person shall be designated as an on-site representative if, within the last five years
preceding the promoted amusement or event, such person has been convicted, in custody, under
parole or under any other non-custodial supervision resulting from a conviction in a court of any
jurisdiction for the commission of a felony of any kind, or of any criminal offense of whatever
degree involving theft, fraud, perjury or dishonesty. Provided, however, that this prohibition
shall not apply if the designated on-site representative holds a valid license under this chapter.
Any person who violates this subsection (B) shall be fined not less than $500.00, nor
more than $1,000.00, for each offense. Each day that a violation continues shall constitute a
separate and distinct offense to which a separate fine shall apply. In addition to any other penalty
provided by law, a single violation of this subsection may result in suspension or revocation of
the event promoter’s license in accordance with the requirements of section 4-4-280. Provided,
however, that it shall be an affirmative defense to the imposition of any fine under this subsection
and to license suspension or revocation if, prior to designating the on-site representative: (1) the
licensee initiated, pursuant to the Illinois Uniform Conviction Information Act, codified at 20
ILCS 2635/1 et seq., as amended, a fingerprint-based record search of the person so designated;
and (2) such fingerprint-based record search indicated that the person so designated did not have
a criminal background of the type prohibited under this subsection; and (3) the licensee did not
acquire any subsequent or independent knowledge that the person so designated had a criminal
background of the type prohibited under this subsection.
(C) The licensee’s on-site representative shall have the following duties:
(1) To comply with the requirements of subsection (B) of section 4-157-120;
(2) To be present on site throughout the duration of the promoted amusement or
event;
(3) To accept all notices of violation and closure orders;
(4) To comply with all applicable laws and ordinances governing or in any way
connected with the promoted amusement or event;
(5) To adhere strictly to all conditions imposed on the licensee pursuant to the
requirements of this chapter and of any other license or permit required for the
promoted amusement or event;
(6) To carry on his or her person throughout the duration of the promoted amusement
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or event: (i) photographic identification; and (ii) a cell phone having the telephone
number identified in the contract required by section 4-157-120;
(7) To produce, upon request, the required photographic identification and cell
phone for inspection by any authorized city official;
(8) To adhere strictly to the terms of the contract required by section 4-157-120;
(9) To comply with any reasonable request made by any authorized city official
necessary or appropriate to implement the requirements of this chapter;
(10) To cooperate fully with any authorized city official in any inquiry, inspection or
investigation necessary or appropriate to implement the requirements of this
chapter; and
(11) To ensure that the maximum capacity is not exceeded of the building, premises,
room, floor or other area where the promoted amusement or event is presented.
4-157-150 Exceeding maximum capacity–Unlawful.
It shall be unlawful for any licensee or controlling person or on-site representative to
exceed the maximum capacity of the building, premises, room, floor or other area where a
promoted amusement or event is presented.
4-157-160 Other legal duties–Joint and several liability.
(A) Each licensee and controlling person shall have the following duties:
(1) To comply with the requirements of this chapter and with all other applicable
laws and ordinances governing or in any way connected with such promoted
amusement or event;
(2) To adhere strictly to all conditions imposed on the licensee pursuant to the
requirements of this chapter and of any other license or permit required for any
promoted amusement or event;
(3) To adhere strictly to the terms of the contract required by section 4-157-120.
(B) The licensee and all controlling persons shall be jointly and severally liable for any
violation of the requirements of this chapter.
4-157-170 License–Revocation.
Except as otherwise provided in this chapter, three or more violations of any provision of
this chapter on three different days within any 12-month period may result in license suspension
or revocation in accordance with the requirements of section 4-4-280 of this code.
4-157-180 License revocation–Five year wait for new license.
No person whose license under this chapter is revoked for any cause shall be granted
another event promoter license, under the same or different name, for a period of five years from
the date of revocation.
4-157-190 Violation–Penalty.
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Except as otherwise provided in this chapter, any person violating any of the provisions
of this chapter shall be subject to a fine of up to $10,000.00 for each offense. Each day that a
violation continues shall constitute a separate and distinct offense to which a separate fine shall
apply.
4-157-200 Regulations.
The director shall have the authority to promulgate rules and regulations necessary to
implement the requirements of this chapter.
SECTION 2. Section 4-5-010 of the Municipal Code of the City of Chicago is hereby
amended by deleting the language stricken through and by inserting the language underscored, as
follows:
4-5-010 Establishment of license fees.
This chapter shall establish fees for various licenses created by this title unless otherwise
provided. The following fees shall apply for the specified licenses. The chapter in which each
fee requirement is created is also provided. Unless otherwise stated, fees shall be assessed every
two years.
* * * * *
(Subsections (1) through (66) are not affected by this ordinance,
and are not shown here for editorial convenience)
(67) Reserved. Event Promoter (4-157)...........................................
Class A.............................................................. $2,000.00
Class B.............................................................. 1,500.00
Class C.............................................................. 1,000.00
Class D.............................................................. 500.00
* * * * *
(The remainder of this section is not affected by this ordinance,
and is not shown here for editorial convenience)
SECTION 3. Chapter 4-60 of the Municipal Code of the City of Chicago is hereby
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12
amended by inserting a new section 4-60-065, as follows:
4-60-065 Promoted amusements or events–Unlawful acts.
(A) It shall be unlawful for any licensee under this chapter to use, hire, employ or
otherwise avail oneself of the services of an event promoter to promote any amusement or event
at the licensed establishment, if the event promoter requires but does not hold a valid event
promoter license or proper class of such license issued under Chapter 4-157 of this code.
(B) If a not-for-profit corporation promotes an amusement or event at an establishment
licensed or required to be licensed under this chapter, and such amusement or event is open to
members of the general public, and an admission fee, minimum purchase requirement,
membership fee or any form of donation or other fee is imposed for the privilege of attending
such amusement or event, and the person promoting such amusement or event on behalf of the
not-for-profit corporation does not hold a valid event promoter license or proper class of such
license issued under Chapter 4-157 of this code, it shall be unlawful for a licensee under this
chapter to present such amusement or event at the licensed establishment unless the
not-for-profit corporation provides the licensee with: (1) acceptable documentation establishing
its not-for-profit status, and (2) a dated letter, on its letterhead and signed by its authorizing
official, (i) stating that the not-for-profit corporation or bona fide member(s) or employee(s)
thereof is promoting the identified amusement or event at the licensed establishment on behalf of
such not-for-profit corporation, and (ii) confirming that the not-for-profit corporation has not
used, hired, employed or otherwise availed itself of the services of an event promoter licensed or
required to be licensed under Chapter 4-157 to promote such amusement or event. Such
documentation and letter shall be kept on site by the licensee throughout the duration of the
promoted amusement or event, and thereafter shall be maintained on file by the licensee for a
period of three years. Upon request, such documentation shall be made available for inspection
by any authorized city official.
(C) As used in this section:
“Acceptable documentation” means: (1) for most not-for-profit corporations, a current
copy of the not-for-profit organization’s: (i) “Corporation File Detail Report” available online
from the Illinois Secretary of State, or (ii)Domestic/Foreign Corporation Annual Report”
submitted to the Illinois Secretary of State, or (iii) cancelled check (front and back) that
accompanied the current “Domestic/Foreign Corporation Annual Report” submitted to the
Secretary of State; or (2) for not-for-profit corporations incorporated prior to 1943, a current
certificate of good standing from the Illinois Secretary of State; or (3) for branches of
government, a copy of the enabling legislation or letter from the appropriate government body
on its letterhead stating that the organization is an official agency or branch of government; or
(4) for charitable trusts, a current Charitable Organization Supplement (Form AG990-IL) or
letter from the Attorney General verifying current good standing; or (5) if the not-for-profit
corporation is a public school or religious organization, a letter claiming tax exempt status
under the United States Internal Revenue Code and signed, as applicable, by the school
principal or authorizing official on the public school’s or religious organization’s letterhead; or
(6) if the not-for-profit corporation is a school affiliate organization, such as a PTO or PTA
Draft Ordinance–April 28, 2008
13
group, a letter from the affiliated school on school letterhead acknowledging the affiliation and
signed by the school principal or authorizing official.
“Amusement” has the meaning ascribed to the term in section 4-157-010.
“Event” has the meaning ascribed to the term in section 4-157-010.
“Licensee” means: (1) any person licensed or required to be licensed under this chapter
and such person’s representative or agent; (2) any officer, director, manager, partner or limited
partner of an entity seeking or holding a license under this chapter, (3) any person owning,
directly or indirectly through any intermediate ownership entity, 5 percent or more of the interest
in the licensee, and (4) regardless of title or ownership interest, any person who directs the
day-to-day operations of any person holding or requiring a license under this chapter.
“Not-for-profit corporation” means any not-for-profit organization which: (1) has been
registered with the State of Illinois as a not-for-profit corporation for at least three years prior
to the presentation of an amusement or event within the meaning of subsection (B) of this section,
or (2) qualifies for tax exempt status under Section 501(c)(3), 501(c)(4) or 501(c)(6) of the
United States Internal Revenue Code of 1986, as amended.
“Throughout the duration of the promoted amusement or event” means at least one hour
before the promoted amusement or event, during the promoted amusement or event, and until all
persons attending or in any way connected with the promoted amusement or event have left the
establishment presenting such amusement or event.
SECTION 4. Chapter 4-156 of the Municipal Code of the City of Chicago is hereby
amended by inserting a new section 4-156-465, as follows:
4-156-465 Promoted amusements or events–Unlawful acts–Duties.
(A) It shall be unlawful for any licensee under this chapter to use, hire, employ or
otherwise avail oneself of the services of an event promoter to promote any amusement or event
at the licensed establishment, if the event promoter requires but does not hold a valid event
promoter license or proper class of such license issued under Chapter 4-157 of this code.
(B) If a not-for-profit corporation promotes an amusement or event at an establishment
licensed or required to be licensed under this chapter, and such amusement or event is open to
members of the general public, and an admission fee, minimum purchase requirement,
membership fee or any form of donation or other fee is imposed for the privilege of attending
such amusement or event, and the person promoting such amusement or event on behalf of the
not-for-profit corporation does not hold a valid event promoter license or proper class of such
license issued under Chapter 4-157 of this code, it shall be unlawful for a licensee under this
chapter to present such amusement or event at the licensed establishment unless the
not-for-profit corporation provides the licensee with: (1) acceptable documentation establishing
its not-for-profit status, and (2) a dated letter, on its letterhead and signed by its authorizing
official, (i) stating that the not-for-profit corporation or bona fide member(s) or employee(s)
thereof is promoting the identified amusement or event at the licensed establishment on behalf of
Draft Ordinance–April 28, 2008
14
such not-for-profit corporation, and (ii) confirming that the not-for-profit corporation has not
used, hired, employed or otherwise availed itself of the services of an event promoter licensed or
required to be licensed under Chapter 4-157 to promote such amusement or event. Such
documentation and letter shall be kept on site by the licensee throughout the duration of the
promoted amusement or event, and thereafter shall be maintained on file by the licensee for a
period of three years. Upon request, such documentation shall be made available for inspection
by any authorized city official.
(C) It shall be the duty of a licensee under this chapter to notify the police department in
writing of a promoted amusement or event, at least 7 calendar days in advance of the presentation
of such promoted amusement or event, if all of the following requirements are met: (1) the
amusement or event is being promoted by an event promoter licensed or required to be licensed
under Chapter 4-157 of this code; and (2) liquor will be served at the promoted amusement or
event; and (3) the establishment presenting the promoted amusement or event has a maximum
capacity of 100 or more persons. Provided, however, that if a promoted amusement or event is
not booked or scheduled until within 7 calendar days of the presentation of such amusement or
event, it shall be the duty of the licensee to notify the police department immediately upon the
booking or scheduling of such promoted amusement or event, and under no circumstances fewer
than 24 hours before the presentation of such amusement or event.
The written notification required by this subsection shall be made to the local police
commander of the district where the promoted amusement or event will be held and shall contain
the following information: (a) the date, time and location of the promoted amusement or event;
(b) the estimated attendance at the promoted amusement or event; and (c) the name and license
number of the event promoter. Upon request, the commander of the district shall provide a copy
of the written notification required by this subsection to the alderman of the ward in which the
promoted amusement or event will be presented.
In addition to any other penalty provided by law, any person who violates the
requirements of this subsection shall be (i) fined not less than $500.00, nor more than $1,000.00,
for each offense, and (ii) prohibited from using an event promoter to promote or present any
amusement or event at the establishment for a period of six months, as measured from the date of
conviction of such person by a court of competent jurisdiction or a final determination of liability
by an administrative law officer within the meaning of section 2-14-076(l).
(D) It shall be unlawful for any person prohibited from using an event promoter under
item (ii) of subsection (B) of this section to engage in such conduct. Any person who violates this
subsection shall be fined not less than $1,000.00, nor more than $10,000.00, for each offense.
Each day that a violation continues shall constitute a separate and distinct offense to which a
separate fine shall apply. A single violation of this subsection may result in license suspension or
revocation in accordance with the requirements of section 4-4-280 of this code. No person
whose license under this chapter is revoked for violation of this subsection shall be granted
another license under this chapter, under the same or different name, for a period of one year
from the date of revocation.
(E) As used in this section:
“Acceptable documentation” means: (1) for most not-for-profit corporations, a current
Draft Ordinance–April 28, 2008
15
copy of the not-for-profit organization’s: (i) “Corporation File Detail Report” available online
from the Illinois Secretary of State, or (ii) Domestic/Foreign Corporation Annual Report”
submitted to the Illinois Secretary of State, or (iii) cancelled check (front and back) that
accompanied the current “Domestic/Foreign Corporation Annual Report” submitted to the
Secretary of State; or (2) for not-for-profit corporations incorporated prior to 1943, a current
certificate of good standing from the Illinois Secretary of State; or (3) for branches of
government, a copy of the enabling legislation or letter from the appropriate government body
on its letterhead stating that the organization is an official agency or branch of government; or
(4) for charitable trusts, a current Charitable Organization Supplement (Form AG990-IL) or
letter from the Attorney General verifying current good standing; or (5) if the not-for-profit
corporation is a public school or religious organization, a letter claiming tax exempt status
under the United States Internal Revenue Code and signed, as applicable, by the school
principal or authorizing official on the public school’s or religious organization’s letterhead; or
(6) if the not-for-profit corporation is a school affiliate organization, such as a PTO or PTA
group, a letter from the affiliated school on school letterhead acknowledging the affiliation and
signed by the school principal or authorizing official.
“Amusement” has the meaning ascribed to the term in section 4-157-010.
“Event” has the meaning ascribed to the term in section 4-157-010.
“Event promoter” has the meaning ascribed to the term in section 4-157-010.
“Licensee” means: (1) any person licensed or required to be licensed under this chapter
and such person’s representative or agent; (2) any officer, director, manager, partner or limited
partner of an entity seeking or holding a license under this chapter, (3) any person owning,
directly or indirectly through any intermediate ownership entity, 25 percent or more of the
interest in the licensee, and (4) regardless of title or ownership interest, any person who directs
the day-to-day operations of any person holding or requiring a license under this chapter.
“Not-for-profit corporation” means any not-for-profit organization which: (1) has been
registered with the State of Illinois as a not-for-profit corporation for at least three years prior
to the presentation of an amusement or event within the meaning of subsection (B) of this section,
or (2) qualifies for tax exempt status under Section 501(c)(3), 501(c)(4) or 501(c)(6) of the
United States Internal Revenue Code of 1986, as amended.
“Promoted amusement or event” means any amusement or event promoted by an event
promoter as defined in section 4-157-010.
“Throughout the duration” means at least one hour before the promoted amusement or
event, during the promoted amusement or event, and until all persons attending or in any way
connected with the promoted amusement or event have left the establishment presenting such
amusement or event.
SECTION 5. Chapter 4-156 of the Municipal Code of the City of Chicago is hereby
amended by inserting a new section 4-156-651, as follows:
Draft Ordinance–April 28, 2008
16
4-156-651 Promoted indoor special events–Unlawful acts.
It shall be unlawful for the sponsor of any indoor special event to use, hire, employ or
otherwise avail oneself of the services of an event promoter to promote any indoor special event,
if the event promoter requires but does not hold a valid event promoter license or proper class of
such license issued under Chapter 4-157. Provided, however, that this requirement shall not
apply if: (a) the sponsor of the indoor special event is a not-for-profit corporation, to the extent
that such not-for-profit corporation or any bona fide member or employee thereof personally
plans, prepares or executes the outdoor special event on behalf of such not-for-profit
corporation; and (b) such sponsor maintains on site throughout the duration of the indoor
special event: (i) acceptable documentation establishing its not-for-profit status, and (ii) a dated
letter, on its letterhead and signed by its authorizing official, stating that the not-for-profit
corporation or a bona fide member(s) or employee(s) thereof is promoting the indoor special
event on behalf of such not-for-profit corporation and confirming that the not-for-profit
corporation has not used, hired, employed or otherwise availed itself of the services of an event
promoter licensed or required to be licensed under Chapter 4-157 to promote such indoor
special event. Such documentation and letter shall be kept on site by the sponsor of such outdoor
special event throughout the duration of the outdoor special event. Upon request, such
documentation shall be made available for inspection by any authorized city official.
As used in this section:
“Acceptable documentation” has the meaning ascribed to the term in section 4-156-465.
“Event promoter” has the meaning ascribed to the term in section 4-157-010.
“Promoted indoor special event” means any indoor special event promoted by an event
promoter as defined in section 4-157-010.
“Throughout the duration” has the meaning ascribed to the term in section 4-156-465.
SECTION 6. Section 10-8-335 of the Municipal Code of the City of Chicago is hereby
amended by inserting the language underscored, as follows:
10-8-335 Outdoor special events.
(a) As used in this section unless the context requires otherwise:
* * * * *
(The remainder of this subsection (a) and of subsections (b) through (r)
are not affected by this ordinance, and are not shown here for editorial convenience)
(r)(1) It shall be unlawful for the sponsor of any outdoor special event to use, hire,
employ or otherwise avail oneself of the services of an event promoter to promote
Draft Ordinance–April 28, 2008
17
any outdoor special event, if the event promoter requires but does not hold a valid
event promoter license or proper class of such license issued under Chapter 4-157.
Provided, however, that this requirement shall not apply if: (a) the sponsor of the
promoted outdoor special event is a not-for-profit corporation, to the extent that
such not-for-profit corporation or any bona fide member or employee thereof
personally plans, prepares or executes the outdoor special event on behalf of such
not-for-profit corporation; and (b) such sponsor maintains on site throughout the
duration of the outdoor special event: (i) acceptable documentation establishing
its not-for-profit status, and (ii) a dated letter, on its letterhead and signed by its
authorizing official, (1) stating that the not-for-profit corporation or a bona fide
member(s) or employee(s) thereof is promoting the outdoor special event on
behalf of such not-for-profit corporation and (2) confirming that the not-for-profit
corporation has not used, hired, employed or otherwise availed itself of the
services of an event promoter licensed or required to be licensed under Chapter
4-157 to promote such outdoor special event. Such documentation and letter
shall be kept on site by the sponsor of the outdoor special event throughout the
duration of such event. Upon request, such documentation shall be made
available for inspection by any authorized city official.
As used in this subsection (r)(1):
“Acceptable documentation” means: (1) for most not-for-profit
corporations, a current copy of the not-for-profit organization’s: (i) “Corporation
File Detail Report” available online from the Illinois Secretary of State, or
(ii) Domestic/Foreign Corporation Annual Report” submitted to the Illinois
Secretary of State, or (iii) cancelled check (front and back) that accompanied the
current “Domestic/Foreign Corporation Annual Report” submitted to the
Secretary of State; or (2) for not-for-profit corporations incorporated prior to
1943, a current certificate of good standing from the Illinois Secretary of State; or
(3) for branches of government, a copy of the enabling legislation or letter from
the appropriate government body on its letterhead stating that the organization is
an official agency or branch of government; or (4) for charitable trusts, a current
Charitable Organization Supplement (Form AG990-IL) or letter from the
Attorney General verifying current good standing; or (5) if the not-for-profit
corporation is a public school or religious organization, a letter claiming tax
exempt status under the United States Internal Revenue Code and signed, as
applicable, by the school principal or authorizing official on the public school’s
or religious organization’s letterhead; or (6) if the not-for-profit corporation is a
school affiliate organization, such as a PTO or PTA group, a letter from the
affiliated school on school letterhead acknowledging the affiliation and signed by
the school principal or authorizing official.
“Event promoter” has the meaning ascribed to the term in section
4-157-010.
“Not-for-profit corporation” means any not-for-profit organization
Draft Ordinance–April 28, 2008
18
which: (1) has been registered with the State of Illinois as a not-for-profit
corporation for at least three years prior to the presentation of the outdoor
special event, or (2) qualifies for tax exempt status under Section 501(c)(3),
501(c)(4) or 501(c)(6) of the United States Internal Revenue Code of 1986, as
amended.
“Promoted outdoor special event” means any outdoor special event
promoted by an event promoter as defined in section 4-157-010.
“Throughout the duration” means at least one hour before the promoted
outdoor special event, during the outdoor special event, and until all persons
attending or in any way connected with the outdoor special event have left the site
of such event.
* * * * *
(The remainder of this section is not affected by this ordinance,
and is not shown here for editorial convenience)
SECTION 7. This ordinance shall take full force and effect 120 days after its passage
and publication.