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Regulatory Alert


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  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


The following regulation will impact day care providers and employees of child care facilities or child welfare agencies:    


The Department of Children and Family Services proposed amendments to Licensing Enforcement (89 IAC 383; 41 Ill. Reg. 4544) that change the title of the Part to Licensing Compliance, Monitoring, Complaints and Enforcement and clarify the role of the licensing supervisor and representative.  The rulemaking provides that all types of licensed child care facilities, other than foster homes, shall be monitored by an authorized licensing representative at least annually, or more frequently when conditions warrant; foster homes shall be monitored at least twice a year.  Facility permits shall be monitored by an authorized licensing representative at least once a month.  The rulemaking expands the definition of a complaint to include allegations that an unlicensed child care facility is operating under conditions that require licensing under the Child Care Act of 1969 (in addition to allegations that a licensed facility is operating in violation of the Act).  All licensing complaints made to private supervising agencies must be reported to the Department licensing representative within 3 business days (currently, 72 hours); other notifications (e.g. whether a complaint has been deemed substantiated or unsubstantiated) must be made within 5 business days (currently, 5 calendar days).  The rulemaking also addresses the handling of allegations that individual staff at child care facilities or child welfare agencies failed to report abuse or neglect of children within the facility.  In such cases the licensing representative shall ensure that the facility takes immediate action with the individual staff involved and documents its actions.  The licensing representative must also determine whether the failure to report was an isolated incident, part of a larger incident involving other staff members, or indicative of a systemic problem within the facility or agency.  Protective plans that limit or prohibit a license holders, household members, volunteers or employees contact with children in a child care program must be reviewed by the licensing representative and supervisor at least once a week (currently, every 6 months).  Corrective plans for remedying licensing violations are required if the violation can be corrected within 90 days (currently, 60 days), with 30-day extensions permitted for good cause.  Corrective plans for an agency that fails to report suspected abuse or neglect must include the use of supervisory teams to review the understanding of the reporting requirement of the staff and the facility.  Other issues addressed in this rulemaking include supervisory reviews *undertaken when a licensee or permit holder disputes an alleged violation or disagrees with the Department’s interpretation of the Act or its licensing standards); informal reviews; conditional licensing; notices of revocation, nonrenewal or refusal to issue a full license; and voluntary surrender of a license or permit.



Bottom Line:  The Department is amending the title of the Part to Licensing Compliance Monitoring & Enforcement to more clearly reflect the rule of the Licensing Representative as someone who assists facilities in meeting the licensing standards, rather than strictly enforcing the rules in a punitive manner.  These revisions clarify the role of the Licensing Representative, Licensing Supervisor.  The licensing enforcement process if more clearly defined and consistency in terminology through the rule has been updated.  Proposed amendments reflect a complete review of Rule in regard to current practice among all user groups including Department, POS Agencies, Licensing Administration and Administrative Hearings Unit.  For questions or to submit comments, contact Jeff Osowski, Office of Child and Family Policy at (217) 524-1983 or email Click here to submit comments.






The Department of Financial and Professional Regulation proposed amendments that impact licensed funeral directors and embalmers and persons applying to enter these professions:


The Department of Financial and Professional Regulation proposed amendments to Funeral Directors and Embalmers Licensing Code (68 IAC 1250; 41 Ill. Reg. 5114).  This rulemaking amends internship requirements for funeral directors and embalmers, specifically, by addressing late intern case reports and clarifying timing for repeat intern applicants to avoid conflict with the statutory requirement that intern licenses cannot be renewed more than twice.  Applications for a funeral director and embalmer license must include a statement of the place of practice, ownership, names and license numbers of all funeral directors and embalmers associated with the applicant.  Other provisions require preparation rooms to include running water and electricity; clarify continuing education requirements; eliminate a $50 fee for replacement licenses (which DFPR no longer issues); and make other technical and clarifying changes.



Bottom Line:  This proposed rulemaking which amends the rules for funeral directors and embalmers regarding internship requirements is intended to better outline the process while maintaining consistency within current practice and procedure. Specifically, a provision addressing late intern case reports was added as this is a current issue routinely faced by the Department.  Additionally, the timing requirements for repeat intern applicants were clarified to prevent interns from circumventing the Funeral Directors and Embalmers Licensing Code ("Code") requirement that states "No license of a funeral director and embalmer intern shall be renewed more than twice." [225 ILCS 41/10-35]. Section 135 of the proposed rules regarding an application for a funeral director and embalmer license was amended to better explain the current application process and to require a statement of the place of practice, ownership, names and license numbers of all funeral directors and embalmers and funeral directors associated with the applicant as set forth in Section 15-80 of the Act.


Section 170 was amended to ensure that the preparation rooms include running water and electricity. The preparation room exemption for branch operations was clarified. The solicitation requirements currently in Section 205 of the rules were placed into a new Section 207 to highlight the significance of these rules and ease reader understanding.  The continuing education ("CE") sponsor and program requirements currently in Section 220 were placed into a new Section 230 to highlight the significance of these rules and ease reader understanding. Additionally, CE format requirements were set so that the Department may address technological developments with the transmission of CE. Also, a provision increasing the amount of categorized hours (but not the total number of hours) beginning in 2019 was removed as it was found to be overly burdensome and difficult for licensees to follow.


The proposed rule also eliminates the current $50 fee for issuing replacement licenses if they get lost or destroyed since we do not print those out anymore and therefore are no longer charging this fee. Technical changes, clean up, deletion of duplicative language, organizational changes, and consistency changes pursuant to other IDFPR-Division of Professional Regulation administrative rules are made to ease in understanding for the public, licensees, and applicants.  For questions or comments, contact Craig Cellini at or call (217) 785-0813.  Click here to submit comments.





The following proposed amendment will impact mortgage lenders and applicants:



The Department of Financial and Professional Regulation proposed amendments to Residential Mortgage License Act of 1987 (38 IAC 1050; 41 Reg. 5061) repealing sections that conflict with current statutes; implementing federal regulations regarding consumer/borrower notices, disclosures, loan estimates and payoff statements; allowing for electronic means of recordkeeping and issuing surety bonds; and repealing obsolete provisions for registration of mortgage loan originators (who are now required to be licensed).  DFPR also proposed amendments to Sales Finance Agency Act (38 IAC 160; 41 Ill. Reg. 5022), and Illinois Credit Union Act (38 IAC 190; 41 Ill. Reg. 5041) repealing obsolete provisions for high-risk home loans.



Bottom Line:  Changes contained in this rulemaking are: 


Repeal Section 1050.320 (Application for Renewal of an Illinois Residential Mortgage License) to remove a conflict with the 30 day timely renewal application deadline in Section 2-6 of the Act.


Amend Section 1050.490 (Bonding Requirements) to remove the submission by licensees of paper surety bonds and facilitate use of the new electronic surety bond feature that Illinois has adopted through the NMLS. 


Repeal Sections 1050.710-1050.750 (Foreclosure Rate) as Public Act 99-0015 amended the regulations' underlying Act Section 4-8 to now instead address Loan Delinquency data and its implementation.


Amend Sections 1050.810-1050.820 & 1050.860 (Transfer of Servicing & Payoff Notices) to repeal consumer notice provisions preempted by the federal Consumer Financial Protection Bureau (CFPB) in its amendments to federal Regulation Z, effective 1/1/2014, and also changes a deadline for payoff statements to conform to this CFPB rulemaking.


• Amend Section 1050.1010 (Loan Brokerage Agreement) including to update and add references to the CFPB's adopted TILA-RESPA Integrated Disclosure (TRID) Loan Estimate form replacing the Good Faith Estimate form in most residential mortgage transactions.


Amend Section 1050.1110 (Borrower Information Document) to update and add references to the CFPB's adopted TRID Loan Estimate form replacing the Good Faith Estimate form in most residential mortgage transactions. Also updates and adds reference to the CFPB's "Your Home Loan Toolkit" that has replaced the settlement cost booklet.


Amend Section 1050.1176 (Record Retention) to permit servicers to eliminate the paper record-keeping requirement and retain their records in electronic or digital format as is currently permitted for all other licensees.


Repeal Section 1050.1230 (Changes Affecting Loans in Process) to reflect new CFPB-required notifications to consumers of loan term changes in TRID process.


Repeal Section 1050.1305 (Approval Notice) to reflect new CFPB-required notifications to consumers of loan term changes in TRID process.


• Amend Section 1050.1320 (Charges to Seller) to update and add a reference to the CFPB's adopted TRID Loan Estimate form replacing the Good Faith Estimate form in most residential mortgage transactions.


• Repeal Subparts R (Registration of Loan Originators) & S (Provisional Registration of Loan Originators) to reflect that both Subparts have been superseded by Section 7-1A, et seq. of Article VII (Mortgage Loan Originator License Required) of the Act.


For questions or to submit comments contact Craig Cellini at (217) 785-0813 or email Click here to submit comments.






The following proposed regulation will impact pharmacies that wish to establish takeback sites for prescription drugs or other controlled substances or pharmaceutical products:



The Illinois Environmental Protection Agency proposed a new Part titled Medication Takeback Program (35 IAC 889; 41 Ill. Reg. 5012) implementing Public Act 99-480.  The PA requires IEPA to establish a statewide program providing disposal options for unused or expired prescription drugs, including controlled substances, and other pharmaceutical products.  Subject to funding, IEPA may provide for the disposal of pharmaceuticals collected at approved takeback locations (which must be located at sites where pharmaceutical products may legally be sold/distributed/dispensed).  The new Part establishes the process by which a takeback site may apply for IEPA approval, sets for the operating and security requirements for takeback sites, and requires operators of approved takeback sites to keep and retain for 3 years records of the “volume” of pharmaceuticals collected under this program.


Bottom Line:  Section 22.55(l) of the Illinois Environmental Protection Act (Act) requires the Illinois Environmental Protection Agency (Agency) to establish a medication take-back program to ensure that there are pharmaceutical product disposal options available for residents across the State.  There are currently over one hundred local law enforcement entities and pharmacies that collect unused pharmaceutical products across the State. In addition, federal law mandates that certain unused pharmaceutical products be disposed of through a manufacturer-funded takeback program. Section 889 of Title 35 of the Illinois Administrative Code has been crafted to account for these existing collection opportunities and to afford other entities the opportunity to request for Illinois EPA sponsored disposal of collected pharmaceutical products, subject to available appropriation.  For questions or to submit comments, contact Sara Terranova, Division of Legal Counsel at IEPA, at (217) 782-5544 or email Click here to submit comments. 




The following proposed regulations will impact real estate agents and appraisers, auctioneers, and their employers:

The Department of Financial and Professional Regulation proposed amendments to the Parts titled Home Inspector Licensure Act (68 IAC 1410; 41 Ill Reg 5845), Auction License Act (68 IAC 1440; 41 Ill Reg 5855), Real Estate License Act of 2000 (68 IAC 1450; 41 Ill Reg 5866), and Real Estate Appraiser Licensing (68 IAC 1455; 41 Ill Reg 5888). All four rulemakings abolish fees for issuance of duplicate or decorative licenses.  Amendments to Part 1410 clarify that franchise fees paid by a home inspector licensee to a franchisor do not constitute compensation if the franchisor does not perform home inspections. The Part 1440 rulemaking clarifies that individuals or entities that accept compensation for listing personal items for sale on a third party internet auction service are not auctioneers under this Part.  Amendments to Part 1450 clarify that, for the purposes of the Act, an electronic signature may be used for any application, affidavit, or other document that must be signed. Real estate licenses may also be surrendered, sent, obtained or issued electronically, and the requirement to make licenses readily available to the public may be fulfilled by using a copy of the license instead of the original. The rulemaking removes the requirement that an owner seeking an exemption set forth in Section 5-20(1) of the Act be the sole owner of the property.  The Part 1455 rulemaking allows the Department to charge appraiser licensees $100 per credit hour for CE courses completed after the deadline, up to a maximum of $2,000.

Bottom Line:  As a result of Executive Order 2016-13, issued by Governor Rauner on October 17, 2016, IDFPR is amending the above rules as directed under the “Cutting the Red Tape” initiative to make certain that regulatory standards are up to date; use plain language where appropriate; provide continuity across the balance of rules, and that they are not unduly burdensome to businesses or social service providers.  Questions/requests for copies/ comments on the 4 DFPR rulemakings through 7/17/17: Craig Cellini, DFPR, 320 W. Washington, 3rd Fl., Springfield IL 62786, 217/785-0813, Fax: 217/ 557-4451. Click here to submit comments.