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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 businesses that are required to use an alternate apportionment formula to determine the amount of their business income that is taxable by Illinois:

 

The Department of Revenue proposed amendments to Income Tax (86 IAC 100; 40 Ill. Reg. 15878) implementing PA 98-478.  The amendments provide for an alternative formula for apportioning business activities to Illinois when current rules do not fairly represent the apportionment.  Exclusions from the sales factor for the following are allowed:  Incidental or occasional sales not made in the market; sale of assets is a recapture of depreciation; sale is attributable to goodwill or similar intangibles; or sales of assets are made in a connection with a partial or complete withdrawal from the market.  The amendments also update DOR policy on petitions for alternative allocation or apportionment.  

 

Bottom Line:  This rulemaking amends Sections 100.3380 and 100.3390 to reflect Public Act 98-478, which IITA Sections 304(f) to provide that an alternative formula for apportioning business income to Illinois could be allowed or required if the statutory formula did not fairly represent the market for the taxpayer’s goods and services in Illinois (rather than the extent of the taxpayer’s business activities in Illinois under prior law) and to reflect current Department of Revenue policies.  For questions or to submit comments, contact Brian Stocker, Staff Attorney, Illinois Department of Revenue, at (217) 782-2844 or Brian.Stocker@Illinois.gov.  Click Here to submit comments.


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The Department of Revenue proposed amendments that impact businesses that were or might have become eligible to file withholding returns annually rather than quarterly, and make payments of withheld taxes annually rather than quarterly: 

 

The Department of Revenue proposed amendments to Income Tax (86 IAC 100; 40 Ill. Reg 16181) eliminating the annual filing and payment provisions for paying withholding effective 1/1/17.  Exemptions for filing and payment of domestic help remain. 

 

Bottom Line:  This rulemaking amends Sections 100.7310 and 100.7325 to terminate the programs allowing annual filing of withholding returns and annual payment of taxes withheld because too many employers were confused by the programs and made incorrect filings and payments.  For questions or to submit comments, contact Brian Stocker, Staff Attorney, Illinois Department of Revenue, at (217) 782-2844 or Brian.Stocker@Illinois.gov.  Click Here to submit comments.

 

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The Illinois Gaming Board proposed an amendment which will impact video gaming establishments:

 

The Illinois Gaming Board proposed an amendment to Video Gaming (General) (11 IAC 1800; 40 Ill. Reg. 16454) concerning information that licensees, license applicants, and persons with significant influence or  control over a video gaming operation have a continuing duty to report to IGB.  All such information must be reported within 21 days (currently, “promptly”).  The duty to report any arrest, summons, citation or charge for criminal offense other than a minor traffic violation is expanded to include any changes relating to an arrest or criminal history, whether the person was charged with an offense or not, and to include any arrest or disposition that has been expunged or sealed.  Failure to report these actions is subject to a fine of $250 for the first violation and $500 for each subsequent violation.  For failure to report a nonrenewal, revocation or other adverse action concerning a liquor license, a fine may be imposed equal to the total net terminal income that the establishment earned while it operated without a valid liquor license.  Fines imposed under either provision may be appealed and do not preclude the Board from initiating other disciplinary action. 

 

Bottom Line:  The rulemaking will affect licensed video gaming applicants and licensees that qualify as small businesses if they have failed to comply with the continuous reporting requirements of 11 Ill. Admin. Code 1800.220 or are locations conducting video gaming without possessing a valid liquor license in violation of Section 55 of the Video Gaming Act [230 ILCS 40/55]. 

 

The proposed rulemaking amends Section 1800.220 (Continuing Duty to Report Information) in the following respects:  In subsection c), the rulemaking amends the current provision requiring licensees and applicants to report "[e]ach arrest, summons, citation or charge for any criminal offense or violation, excluding minor traffic violations." New language provides that the information to be reported includes, but is not limited to, all changes relating to criminal arrest or criminal proceeding disposition history, whether charged or uncharged, concerning any criminal offense under the laws of any jurisdiction or Uniform Code of Military Conduct, in any state or foreign country, including any arrest or disposition that has been expunged or sealed.  The rulemaking authorizes the Administrator to issue fines for violations of subsection c).  Fine amounts shall be $250 for a first violation and $500 for a second or subsequent violation. Imposition of a fine by the Administrator does not preclude the Illinois Gaming Board from initiating additional disciplinary action for a violation of this subsection. Licensees or applicants that have been issued fines may contest them under the disciplinary hearings procedures of Subpart G [11 Ill. Admin. Code 1800.710-1800.795]. 

 

In subsection d), the rulemaking authorizes the Administrator to issue fines against licensed locations for failure to possess a valid liquor license as required by Section 55 of the Video Gaming Act [40 Ill. Admin. Code 40/55]. Fine amounts shall equal the total amount of Net Terminal Income for the period of time that the establishment operated in violation of Section 55. Imposition of a fine by the Administrator does not preclude the Illinois Gaming Board from initiating additional disciplinary action for a violation of this subsection, and licensees or applicants that have been issued fines may contest them under the disciplinary hearings procedures of Subpart G.

 

For questions or to submit comments, contact Agostino Lorenzini, General Counsel, Illinois Gaming Board, at Agostino.Lorenzini@igb.illinois.gov.  Click Here to submit comments.

 


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The Department of Financial and Professional Regulation proposed an amendment which will impact licensed architects:

 

The Department of Financial and Professional Regulation proposed amendments to Illinois Architecture Practice Act of 1989 (68 IAC 1150; 40 Ill Reg 16413) reflecting the change from the Intern Development Program to the Architect Experience Program and eliminating the pre-professional degree, which will no longer be accepted. The rulemaking provides that an applicant with the required number of training hours may nonetheless be denied approval of training if that training is not diversified; removes additional licensure application requirements for those licensed in another jurisdiction; removes divisions in the ARE 3.1 examination and updates the divisions in the ARE 5.0 examination; and updates the dates during which both the ARE 4.0 and 5.0 will be offered. An applicant no longer must wait 6 months after failing a division test to repeat it, but examination review will not be allowed. The rulemaking also recognizes licensure in Canada by the CACB provided the individual has an NCARB Certificate Record. A professional design firm seeking restoration of a lapsed license must pay the lapsed renewal fee plus a late fee and submit the following documents: certificate of Good Standing from the Illinois Secretary of State, or a copy of the letter or certificate from the county clerk where an assumed name has been filed; proof that the Managing Agent-in-Charge is still a member of the Board, a partner, or a member and a full time employee; a listing of all the firm’s offices in Illinois; and the names and license numbers of the architects for each location.  Licenses may now be obtained electronically through the Department’s website. A professional design firm seeking to renew its license must certify that the firm is in good standing with the Illinois Secretary of State (if applicable) and has an active managing agent-in-charge. With regard to disciplinary actions and criminal records, each licensee must notify the Division of any disciplinary action and any conviction, or plea of guilty or nolo contendere, to the following offenses that have occurred since the last renewal: a felony under the laws of the United States or any state or territory, a misdemeanor that includes an essential element of dishonesty (e.g., fraud), or a crime that is directly related to the practice of the profession of architecture.  The rulemaking also updates the Historical Summary of Minimum Requirements to Qualify for Examination for Licensure as an Architect in Illinois. Effective 1/1/ 16, the State requires either an NAAB accredited professional degree or a degree meeting the NCARB requirements for a professional degree (CACB or EESA evaluation) for approval to sit for the ARE. 

Bottom Line:  While the last change of the architect rules were adopted in December 2015, already there are massive changes that need to be completed due to the change in the Act (eliminating the pre-professional degree and only accepting the professional degree), as well as changes in National Council of Architectural Registration Boards (NCARB) in both the Intern Development Program (IDP) and Architecture Registration Exams (ARE).  This is the first set for this year. As of July there will be another change by NCARB that will require another set of amendments, and then there will be another change later this year when ARE 5.0 rolls out (possibly in November) and then more changes in January (IDP). Essentially, every 6 months IDFPR needs to update the rules to keep current.  This is the biggest change as it removes curriculum approval from the current rules and places it in the historical Section of the rules (where it will be referenced for endorsement where the individual met Illinois requirements at the time of original licensure). As an addendum, the Secretary signed a Mutual Agreement through NCARB last year recognizing the CACB and licensure in Canada as long as the individual has an NCARB Certificate Record. It is an alternate approach to licensure.  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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