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Regulatory Alert

CURRENT PROPOSED STATE OF ILLINOIS RULES AFFECTING SMALL BUSINESS

If any of the following proposed regulations impact your business, let us know!   Click here to submit comments on how the proposed rulemakings will impact your business or industry.   

Following are  proposed rules of possible interest to small businesses published in the Illinois Register.  During the comment period, individuals have an opportunity to express their support or opposition to the rule.  To submit comments or to learn more about the proposed rules, contact Katy Khayyat at the Department of Commerce and Economic Opportunity Business Information Center via e-mail at Katy.Khayyat@Illinois.gov  or call 800.252.2923 or 217.785.8020. 

To get more information on Illinois Rules and Regulations, how to file a complaint about a burdensome or excessive state rule, go to www.ilsmallbiz.biz/regflex
 

 

The following regulation will impact acupuncturists and acupuncture students:    

 

The Department of Financial and Professional Regulation proposed amendments to the Part titled Acupuncture Practice Act (68 IAC 1140; 41 Ill. Reg. 2724).  These amendments update and add definitions for commonly used terms, clarify the application requirements for licensure, and correct the number of acupuncture curriculum hours required by the American Council on Acupuncture and Oriental Medicine (ACAOM).  Continuing education standards are updated and a maximum of 23 hours CE credit can now be earned through self-study courses.  Unprofessional conduct standards are also updated.  Approved CE sponsors now include the National Certification Commission for Acupuncture and Oriental Medicine and the American Society of Acupuncturists. 

 

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Bottom Line:  The proposed rule/amendments update and add definitions of commonly used terms. It clarifies the examinations required for an acupuncturist licensure, provides technical clean-up throughout and corrects the number of acupuncture curriculum hours required pursuant to the Accreditation Commission for Acupuncture and Oriental Medicine (ACAOM) standards.  It amends continuing education requirements to update approved continuing education standards and provides that a maximum of 23 hours of continuing education (CE) credit may be earned for completion of self-study courses.  It adds the National Certification Commission for Acupuncture and Oriental Medicine and the American Society of Acupuncturists (NCCAOM) as approved CE sponsors and also updates unprofessional conduct standards.  For questions or to submit comments, contact Craig Cellini at the Department of Financial and Professional Regulation at Craig.Cellini@Illinois.gov or call (217) 785-0813. Click Here to submit comments.

 

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The following amendments will impact businesses which are licensed under the Video Gaming Act as terminal operators, licensed establishments, licensed fraternal establishments, licensed veterans establishments, and licensed truck stops: 

 

The Illinois Gaming Board proposed amendments to Video Gaming (General) (11 IAC 1800; 41 Ill. Reg. 2751) prohibiting certain business arrangements between terminal operators and licensed video gaming locations (LVGLs) that have entered into use agreements (for the location to use the operator’s terminals).  Terminal operators may not employ or contract with owners or Persons with Significant Influence or Control (PSIC) of an LVGL with which it has entered into a use agreement to act as sales agents or brokers, licensed terminal handlers, or licensed technicians.  Terminal operators are prohibited from owning, leasing, having an option to purchase, holding a security interest in, or managing (either alone or through an affiliated entity) an LVGL if the terminal operator has entered into a use agreement with that location.  Terminal operators are prohibited from owning, leasing, having an option to purchase, holding a security interest in, or managing (either alone or through an affiliated entity) an LVGL if the terminal operator has entered into a use agreement with that location.  Terminal operators also may not provide any compensation to, or receive any compensation from, a LVGL with which it has entered into a use agreement, other than the after-tax profits from video gaming provided by the Act.  However, an individual who is an investor, member, shareholder, PSIC, or otherwise owner of a licensed video gaming terminal operator may also be an investor, member, shareholder, PSIC, or otherwise owner of a LVGL, provided that the terminal operator does not currently, nor will in the future, have a use agreement with, or provide video gaming terminals, directly or indirectly, to that LVGL. 

 

Bottom Line:  The proposed rulemaking prohibits a terminal operator from doing any of the following: 

  • Employing or contracting with owners or Persons with Significant Influence or Control (PSICs) of a licensed video gaming location with which it has entered into a Use Agreement to act as sales agents or brokers, licensed terminal handlers, or licensed technicians.
  • Owning, leasing, having an option to purchase, holding a security interest in, or managing either alone or through an affiliated entity, a licensed video gaming location, if the terminal operator has entered into a Use Agreement with that location. 
  • Providing any compensation to, or receiving any compensation from, a licensed video gaming location with which it has entered into a Use Agreement other than the after-tax profits from video gaming provided by subsection © of Section 25 of the Video Gaming Act [230 ILCS 40].

 

Additionally, the rulemaking provides that, notwithstanding the duties of licensed video terminal operators providing for in Section 1800.250 or elsewhere in the Video Gaming (General) Part of the Illinois Administrative Code –[11 IAC 1800] or the Video Gaming Act, an individual who is an investor, member, shareholder, person with significant influence or control, or otherwise owner of a licensed video gaming terminal operator shall be permitted to be an investor, member, shareholder, person with significant influence of control, or otherwise owner of a licensed video gaming location, provided that the individual or the terminal operator itself does not currently, nor will in the future, have a use agreement with, or provide video gaming terminals, directly or indirectly, to that licensed video gaming location. 

 

Section 30 of the Video Gaming Act (“Multiple types of licensed prohibited”) [230 ILCS 40/30] provides that a terminal operator “shall be licensed only to contract with…licensed establishments, licensed truck stop establishments, licensed fraternal establishments, and licensed veterans establishments” [Emphasis added].  Section 30 specifically prohibits a terminal operator from becoming licensed as a video gaming location, or from owning, managing, or controlling a licensed location.  This statutory language reflects a legislative intent to protect the integrity of video gaming by requiring an arms-length contractual relationship between terminal operators and licensed video gaming locations.  Such an arms-length relationship is violated when a terminal operator hires an owner or PSIC of a licensed location with which it has entered into a Use Agreement to act as a sales agent or broker, licensed terminal handler, or licensed technician, or when a terminal operator assumes an ownership, management, security, or landlord-tenant relationship with a licensed location with which it has entered into a Use Agreement. 

 

For questions or to submit comments, contact Agostino Lorenzini at Agostino.Lorenzini@igb.illinois.gov. Click Here to submit comments.

 

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The following proposed amendment will impact taverns, restaurants, fraternal and veterans’ organizations that hold liquor licenses and video gaming licensed:

 

The Illinois Gaming Board proposed an amendment to Video Gaming (General) (11 IAC 1800; 41 Ill. Reg. 3088) requiring video gaming terminals located in licensed establishments, including licensed fraternal or veterans’ establishments, to be placed in areas where alcoholic liquor is prepared or serviced, with separate seating provided for customers/ members apart from seating at the video gaming terminals.

 

Bottom Line:  The proposed rulemaking adds a new subsection (c) to Section 1800.810 (Location and Placement of Video Gaming Terminals). The new subsection provides that all video gaming terminals located in a licensed establishment, licensed fraternal establishment, or licensed veterans establishment shall be placed in an area where alcoholic liquor is drawn, poured, mixed, or otherwise served for consumption on the premises. The designated area shall have seating facilities for customers or members apart from seating at the video gaming terminals. The service of alcoholic liquor within the video gaming area shall be done by the licensee.

 

Section 55 of the Video Gaming Act [230 ILCS 10/55] (Precondition for licensed location) establishes a nexus between video gaming location licenses and liquor licenses by requiring licensed establishments, licensed fraternal organizations, and licensed veterans organizations to hold valid licenses under the Liquor Control Act of 1934 [235 ILCS 5/1-1 et seq.]. Section 55 also restricts the operation of video gaming terminals to the same hours of operation generally permitted to holders of a liquor license within the unit of local government within which they are located. Section 5 of the Video Gaming Act [230 ILCS 10/5] (Definitions) defines a "licensed establishment" as any licensed retail establishment where alcoholic liquor is drawn, poured, mixed, or otherwise served for consumption on the premises, whether the establishment operates on a nonprofit or for profit basis. Given these close statutory ties between liquor licenses and video gaming location licenses, it is appropriate to limit video gaming play to those areas within a licensed video gaming location where alcoholic liquor is actually served.  Furthermore, because Section 5's definition of "licensed establishment" specifically refers to consumption of alcoholic liquor on the premises, it is appropriate to require the designated video gaming area to have separate seating facilities for the serving of alcoholic liquor, with service provided by the licensee.

 

For questions or to submit comments, contact Agostino Lorenzini at Agostino.Lorenzini@igb.illinois.gov. Click Here to submit comments.

 
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