illinois · october 13, 2017 volume 41, issue 41 proposed rules financial and professional...

ILLINOIS REGISTER RULES OF GOVERNMENTAL AGENCIES

PUBLISHED BY JESSE WHITE • SECRETARY OF STATE

Index DepartmentAdministrative Code Division111 E. Monroe St.Springfield, IL 62756217-782-7017www.cyberdriveillinois.com

Printed on recycled paper

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TABLE OF CONTENTS

October 13, 2017 Volume 41, Issue 41

PROPOSED RULES FINANCIAL AND PROFESSIONAL REGULATION, DEPARTMENT OF

Real Estate Appraiser Licensing

68 Ill. Adm. Code 1455..........................................................................12643

GAMING BOARD, ILLINOIS

Video Gaming (General)

11 Ill. Adm. Code 1800..........................................................................12670

HEALTHCARE AND FAMILY SERVICES, DEPARTMENT OF

Medical Assistance Programs

89 Ill. Adm. Code 120............................................................................12692

Medical Payment

89 Ill. Adm. Code 140............................................................................12709

HUMAN SERVICES, DEPARTMENT OF

Child Care

89 Ill. Adm. Code 50…..........................................................................12759

INSURANCE, DEPARTMENT OF

Domestic Insurers Service of Process Requirements

50 Ill. Adm. Code 206............................................................................12761

STATE BOARD OF ELECTIONS

Campaign Financing

26 Ill. Adm. Code 100............................................................................12766

Practice and Procedure

26 Ill. Adm. Code 125............................................................................12793

Personnel

26 Ill. Adm. Code 212............................................................................12813

ADOPTED RULES FINANCIAL AND PROFESSIONAL REGULATION, DEPARTMENT OF

Illinois Architecture Practice Act of 1989

68 Ill. Adm. Code 1150..........................................................................12833

GAMING BOARD, ILLINOIS

Riverboat Gambling

86 Ill. Adm. Code 3000..........................................................................12840

RACING BOARD, ILLINOIS

Race Track Security and Contracting Goals

11 Ill. Adm. Code 425............................................................................12853

Race Track Leases (Repealer)

11 Ill. Adm. Code 431............................................................................12858

Licensing

11 Ill. Adm. Code 502............................................................................12860

Medication

11 Ill. Adm. Code 603............................................................................12866

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STATE BOARD OF EDUCATION

Transitional Bilingual Education

23 Ill. Adm. Code 228............................................................................12876

STATE BOARD OF ELECTIONS

Procedures for Implementing the Electronic Canvass

26 Ill. Adm. Code 219............................................................................12883

EMERGENCY RULE HUMAN SERVICES, DEPARTMENT OF

Child Care

89 Ill. Adm. Code 50…..........................................................................12890

PEREMPTORY RULE HUMAN SERVICES, DEPARTMENT OF

Supplemental Nutrition Assistance Program (SNAP)

89 Ill. Adm. Code 121............................................................................12905

NOTICE OF CODIFICATION CHANGES INSURANCE, DEPARTMENT OF

General Provisions

50 Ill. Adm. Code 2500..........................................................................12924

Military Sales Practices

50 Ill. Adm. Code 2605..........................................................................12926

Licensing and Suitability Requirements for the Solcitation of

Variable Contracts

50 Ill. Adm. Code 3117..........................................................................12928

SECOND NOTICES RECEIVED JOINT COMMITTEE ON ADMINISTRATIVE RULES

Second Notices Received…...........................................................................12930

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INTRODUCTION

The Illinois Register is the official state document for publishing public notice of rulemaking

activity initiated by State governmental agencies. The table of contents is arranged categorically

by rulemaking activity and alphabetically by agency within each category.

Rulemaking activity consists of proposed or adopted new rules; amendments to or repealers of

existing rules; and rules promulgated by emergency or peremptory action. Executive Orders and

Proclamations issued by the Governor; notices of public information required by State Statute;

and activities (meeting agendas; Statements of Objection or Recommendation, etc.) of the Joint

Committee on Administrative Rules (JCAR), a legislative oversight committee which monitors

the rulemaking activities of State Agencies; is also published in the Register.

The Register is a weekly update of the Illinois Administrative Code (a compilation of the rules

adopted by State agencies). The most recent edition of the Code, along with the Register,

comprise the most current accounting of State agencies' rulemakings.

The Illinois Register is the property of the State of Illinois, granted by the authority of the Illinois

Administrative Procedure Act [5 ILCS 100/1-1, et seq.].

ILLINOIS REGISTER PUBLICATION SCHEDULE FOR 2017

Issue# Rules Due Date Date of Issue

1 December 27, 2016 January 6, 2017

2 January 3, 2017 January 13, 2017



5 January 23, 2017 February 3, 2017

6 January 30, 2017 February 10, 2017

7 February 6, 2017 February 17, 2017

8 February 14, 2017 February 24, 2017

9 February 21, 2017 March 3, 2017

10 February 27, 2017 March 10, 2017

11 March 6, 2017 March 17, 2017

12 March 13, 2017 March 24, 2017

13 March 20, 2017 March 31, 2017

14 March 27, 2017 April 7, 2017

15 April 3, 2017 April 14, 2017

16 April 10, 2017 April 21, 2017

17 April 17, 2017 April 28, 2017

18 April 24, 2017 May 5, 2017

19 May 1, 2017 May 12, 2017

20 May 8, 2017 May 19, 2017

21 May 15, 2017 May 26, 2017

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22 May 22, 2017 June 2, 2017

23 May 30, 2017 June 9, 2017

24 June 5, 2017 June 16, 2017

25 June 12, 2017 June 23, 2017

26 June 19, 2017 June 30, 2017

27 June 26, 2017 July 7, 2017

28 July 3, 2017 July 14, 2017

29 July 10, 2017 July 21, 2017

30 July 17, 2017 July 28, 2017

31 July 24, 2017 August 4, 2017

32 July 31, 2017 August 11, 2017

33 August 7, 2017 August 18, 2017

34 August 14, 2017 August 25, 2017

35 August 21, 2017 September 1, 2017

36 August 28, 2017 September 8, 2017

37 September 5, 2017 September 15, 2017



40 September 25, 2017 October 6, 2017

41 October 2, 2017 October 13, 2017

42 October 10, 2017 October 20, 2017

43 October 16, 2017 October 27, 2017

44 October 23, 2017 November 3, 2017

45 October 30, 2017 November 13, 2017

46 November 6, 2017 November 17, 2017

47 November 13, 2017 November 27, 2017

48 November 20, 2017 December 1, 2017

49 November 27, 2017 December 8, 2017

50 December 4, 2017 December 15, 2017



ILLINOIS REGISTER 12643

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DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION

NOTICE OF PROPOSED AMENDMENTS

1) Heading of the Part: Real Estate Appraiser Licensing

2) Code Citation: 68 Ill. Adm. Code 1455

3) Section Numbers: Proposed Actions:

1455.10 Amendment

1455.100 Amendment

1455.110 Amendment

1455.130 Amendment

1455.140 Amendment

1455.150 Amendment

1455.160 Amendment

1455.190 Amendment

1455.240 Amendment

1455.316 Amendment

4) Statutory Authority: Implementing and authorized by the Real Estate Appraiser

Licensing Act of 2002 [225 ILCS 458].

5) A Complete Description of the Subjects and Issues Involved: The proposed amendments

will update references to the new USPAP Standards edition, amends various provisions

to coincide with federal regulatory guidelines at the request of the Appraisal

Subcommittee, establishes a new continuing education completion deadline, makes minor

administrative changes to the disciplinary process and criminal background check

requirements, and other minor clean up.

6) Any published studies or reports, along with the sources of underlying data, that were

used when comprising this rulemaking, in accordance with 1 Ill. Adm. Code 100.355:

None

7) Will this rulemaking replace any emergency rule currently in effect? No

8) Does this rulemaking contain an automatic repeal date? No

9) Does this rulemaking contain incorporations by reference? Yes. Please see Section

1455.10 for updated AQB and USPAP references.

10) Are there any other rulemakings pending on this Part? No


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11) Statement of Statewide Policy Objective: This rulemaking will not require a local

government to establish, expand or modify its activities in such a way as to necessitate

additional expenditures from local revenues.

12) Time, Place, and Manner in which interested persons may comment on this proposed

rulemaking: Persons who wish to comment on this proposed rulemaking may submit

written comments no later than 45 days after the publication of this Notice to:

Department of Financial and Professional Regulation

Attention: Craig Cellini

320 West Washington, 3rd Floor

Springfield IL 62786

217/785-0813

fax: 217/557-4451

All written comments received within 45 days after this issue of the Illinois Register will

be considered.

13) Initial Regulatory Flexibility Analysis:

A) Types of small businesses, small municipalities and not-for-profit corporations

affected: Real Estate Appraisers

B) Reporting, bookkeeping or other procedures required for compliance: Please

review the proposed amendments that follow this Notice.

C) Types of professional skills necessary for compliance: Appraiser education and

experience is necessary for licensure and compliance with this Part.

14) Regulatory Agenda on which this rulemaking was summarized: July 2016

The full text of the Proposed Amendments begins on the next page:


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TITLE 68: PROFESSIONS AND OCCUPATIONS

CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION

SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS

PART 1455

REAL ESTATE APPRAISER LICENSING

SUBPART A: DEFINITIONS

Section

1455.10 Definitions

SUBPART B: LICENSING REQUIREMENTS

Section

1455.100 Application for a State Certified General Real Estate Appraiser License and a

State Certified Residential Real Estate Appraiser License; Application for an

Associate Real Estate Trainee Appraiser License; Application by Non-Resident

for Licensure by Endorsement

1455.110 Application for Renewal of State Certified General Real Estate Appraiser

License, State Certified Residential Real Estate Appraiser License, and Associate

Real Estate Trainee Appraiser License; Late Renewal of State Certified General

Real Estate Appraiser License, State Certified Residential Real Estate Appraiser

License, and Associate Real Estate Trainee Appraiser License; Reinstatement of

State Certified General Real Estate Appraiser License, State Certified Residential

Real Estate; Appraiser License, and Associate Real Estate Trainee Appraiser

License; Application for Military Deferral; Expiration Date

1455.120 Conversion of a State Licensed Real Estate Appraiser License to an Associate

Real Estate Appraiser License; Late Conversion; No Issuance of State Licensed

Real Estate Appraiser License (Repealed)

1455.130 Application for Temporary Practice Permit; Term of Permit; Scope of Practice;

Regulatory Responsibility; Notice

1455.140 Issuance of Certificate to Real Estate Appraisers; Temporary Practice Permits

SUBPART C: EDUCATION REQUIREMENTS

Section

1455.150 Qualifying Education Requirements; State Certified General Real Estate

Appraiser; State Certified Residential Real Estate Appraiser; Associate Real


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Estate Trainee Appraiser; Non-Resident Qualifying Education; In Lieu of

Requirements; Foreign Degrees

1455.160 Continuing Education Requirements for State Certified General Real Estate

Appraiser, State Certified Residential Real Estate Appraiser, and Associate Real

Estate Trainee Appraiser; Non-Resident Continuing Education Approval

SUBPART D: EXPERIENCE REQUIREMENTS

Section

1455.170 Experience Requirements for a State Certified General Real Estate Appraiser

License

1455.180 Experience Requirements for a State Certified Residential Real Estate Appraiser

License

1455.190 Verification of Experience Credit

1455.195 Acceptable Experience Credit and Request for Reconsideration

1455.200 Acceptable Appraisal Experience Credit

SUBPART E: BUSINESS PRACTICES; STANDARDS AND SCOPE OF PRACTICE

Section

1455.205 Record Keeping Requirements

1455.210 Notification of Name Change

1455.220 Assumed Name

1455.230 Address Change

1455.240 Uniform Standards of Professional Appraisal Practice (USPAP)

1455.245 Scope of Property Condition Inspections by Real Estate Appraisers

SUBPART F: ENFORCEMENT PROVISIONS

Section

1455.250 Appraiser Responsibilities as Relating to Appraisal Management Companies

1455.260 Suspension or Denial for Failure to Pay Taxes, Child Support or any Illinois-

Guaranteed Student Loan

1455.270 Additional Education; Reporting Requirements

1455.280 Administrative Warning Letter

1455.290 Cooperation Required with the Division

1455.300 Felony Convictions; Discipline of Other Professional License; Notification

1455.310 Unprofessional Conduct

1455.315 Supervisor and Trainee Requirements (Repealed)


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1455.316 Supervisor and Trainee Requirements

SUBPART G: ADMINISTRATIVE PROVISIONS

Section

1455.320 Fees

1455.330 Granting of Variances

1455.335 Refusal to Issue an Appraiser License Based on Criminal History Record

1455.340 Duties of the Secretary

1455.345 IDFPR Coordinator of Real Estate Appraisal

SUBPART H: EDUCATION PROVIDER AND COURSE PROVISIONS

Section

1455.350 Education Provider Application; Requirements

1455.355 USPAP Course Titles

1455.360 Qualifying Education Course Requirements of Education Providers

1455.365 Practicum Course Requirements

1455.370 Qualifying Course Curriculum; State Certified General Real Estate Appraiser;

State Certified Residential Real Estate Appraiser; Associate Real Estate Trainee

Appraiser

1455.375 PrerequisitePrequisite Education Course – Supervisor-Trainee Course

1455.380 Instructors for the Supervisor-Trainee Conditional Education Course

1455.390 Continuing Education Course Requirements of Education Providers

1455.400 Curriculum for Continuing Education Courses; Continuing Education Credit for

Participation Other Than as a Student

1455.410 Distance Education

1455.420 Expiration Date and Renewal for Education Providers and Qualifying Education

and Continuing Education Courses

1455.430 Continuing Education Reporting

1455.440 Transcript or Certificate of Completion

1455.445 Grounds for Education Provider Discipline

SUBPART I: TRANSITION PROVISIONS

Section

1455.450 Appraiser Applicants − Transition Provisions (Repealed)

1455.460 Education Providers, Pre-License and Continuing Education Courses − Transition

Provisions (Repealed)


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SUBPART J: HEARINGS

Section

1455.470 Applicability (Repealed)

1455.480 Administrative Law Judges (Repealed)

1455.490 Disqualification of an Administrative Law Judge (Repealed)

1455.APPENDIX A Caption for a Case Filed by the Division (Repealed)

1455.APPENDIX B Caption for a Case Filed by the Petitioner (Repealed)

AUTHORITY: Implementing and authorized by the Real Estate Appraiser Licensing Act of

2002 [225 ILCS 458].

SOURCE: Emergency rules adopted at 16 Ill. Reg. 16196, effective September 30, 1992, for a

maximum of 150 days; rules adopted at 17 Ill. Reg. 1589, effective January 26, 1993; emergency

amendment at 17 Ill. Reg. 6668, effective April 19, 1993, for a maximum of 150 days; amended

at 17 Ill. Reg. 13494, effective July 30, 1993; amended at 18 Ill. Reg. 2379, effective January 28,

1994; emergency amendment at 18 Ill. Reg. 3006, effective February 10, 1994, for a maximum

of 150 days; amended at 18 Ill. Reg. 8428, effective May 24, 1994; amended at 19 Ill. Reg. 9176,

effective June 26, 1995; emergency amendment at 19 Ill. Reg. 12503, effective August 16, 1995,

for a maximum of 150 days; amended at 19 Ill. Reg. 16604, effective December 1, 1995;

amended at 20 Ill. Reg. 6488, effective April 30, 1996; recodified from Chapter VII, Department

of Professional Regulation, to Chapter VIII, Office of Banks and Real Estate, pursuant to PA 89-

23 and PA 89-508, at 20 Ill. Reg. 11984; amended at 21 Ill. Reg. 1685, effective January 27,

1997; amended at 21 Ill. Reg. 5538, effective April 18, 1997; emergency amendment at 22 Ill.

Reg. 4132, effective February 4, 1998, for a maximum of 150 days; emergency amendment at 22

Ill. Reg. 8534, effective April 29, 1998, for a maximum of 150 days; old Part repealed by

emergency rulemaking at 22 Ill. Reg. 12979, effective July 1, 1998, for a maximum of 150 days;

new Part adopted by emergency rulemaking at 22 Ill. Reg. 13011, effective July 1, 1998, for a

maximum of 150 days; old Part repealed and new Part adopted at 22 Ill. Reg. 20815, effective

November 20, 1998; old Part repealed at 26 Ill. Reg. 10883 and new Part adopted by emergency

rulemaking at 26 Ill. Reg. 10844, effective July 1, 2002, for a maximum of 150 days; old Part

repealed at 26 Ill. Reg. 17689 and new Part adopted at 26 Ill. Reg. 17692, effective November

27, 2002; emergency amendment at 27 Ill. Reg. 14653, effective August 29, 2003, for a

maximum of 150 days; amended at 28 Ill. Reg. 824, effective December 29, 2003; amended at

29 Ill. Reg. 16445, effective October 13, 2005; amended at 31 Ill. Reg. 4741, effective March 9,

2007; amended at 33 Ill. Reg. 7121, effective May 14, 2009; amended at 35 Ill. Reg. 1967,

effective January 20, 2011; amended at 35 Ill. Reg. 19505, effective November 17, 2011;


17



amended at 37 Ill. Reg. 2668, effective April 1, 2013; amended at 37 Ill. Reg. 19189, effective

December 31, 2013; amended at 38 Ill. Reg. 5887, effective February 24, 2014; amended at 39

Ill. Reg. 7939, effective June 1, 2015; amended at 41 Ill. Reg. 12583, effective October 6, 2017;

amended at 42 Ill. Reg. ______, effective ____________.

SUBPART A: DEFINITIONS

Section 1455.10 Definitions

Unless otherwise clarified by this Part, definitions set forth in the Act also apply for the purposes

of this Part.

"Act" means the Real Estate Appraiser Licensing Act of 2002 [225 ILCS 458].

"Applicant" means a person applying for licensure under this Act as a State

Certified General Real Estate Appraiser, State Certified Residential Real Estate

Appraiser, or Associate Real Estate Trainee Appraiser. Any applicant or any

person who holds himself or herself out as an applicant is considered a licensee

for purposes of enforcement, investigation, hearings, and the Illinois

Administrative Procedure Act [5 ILCS 100].

"Appraisal management company" means any corporation, limited liability

company, partnership, sole proprietorship, subsidiary, unit, or other business

entity that directly or indirectly performs the following appraisal management

services:

administers networks of independent contractors or employee appraisers

to perform real estate appraisal assignments for clients;

receives requests for real estate appraisal services from clients and, for a

fee paid by the client, enters into an agreement with one or more

independent appraisers to perform the real estate appraisal services

contained in the request; or

otherwise serves as a third-party broker of appraisal management

services between clients and appraisers. [225 ILCS 459/10]

"AQB" means the Appraiser Qualification Board of the Appraisal Foundation.


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"AQB 2015 Criteria" means the Real Property Appraiser Qualification Criteria

(effective January 1, 2015, no later amendments or editions), published July 2016

by the Appraiser Qualifications Board of The Appraisal Foundation, 1155 15th

Street, NW, Suite 1111, Washington DC 20005.

"Board" means the Real Estate Appraisal Administration and Disciplinary Board.

"CE Completion Deadline" means June 30 of each odd-numbered year.

"Classroom hour" or "hour" as it pertains to the education requirements means

classroom attendance for a minimum of 50 minutes of lecture or its equivalent

through a distance education program approved by the Division.

"Client" means the party or parties who engage an appraiser, by employment or

contract, in a specific assignment. If an appraisal management company is the

party engaging the appraiser, the appraisal management company is considered

the client.

"Continuing education" means education that is creditable toward the education

requirements that must be satisfied to renew licensure or certification, as set forth

in Section 1455.160.

"Department" means the Department of Financial and Professional Regulation.

"Director" means the Director of the Department of Financial and Professional

Regulation-Division of Real Estate.

"Division" means the Department of Financial and Professional

Regulation-Division of Real Estate.

"Experience/work log" means the form described in Section 1455.190 that

verifies an appraiser's experience and work history.

"Extraordinary assumption" means a specifically labeled assumption, directly

related to a specific assignment that, if found to be false, could alter the

appraiser's opinions or conclusions

"Hypothetical condition" means a condition that is specifically stated to be

contrary to what exists, but is supposed to exist for the purpose of analysis.


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"Jurisdictional exception" means an assignment condition established by

applicable law or regulation, which precludes an appraiser from complying with a

part of USPAP.

"License" means a certificate of authority, permit or registration issued by the

Division.

"Licensee" means a person who has been issued a license under the Act or this

Part. Anyone who holds himself or herself out as a licensee or who is accused of

unlicensed practice is considered a licensee for purposes of enforcement,

investigation, hearings, and the Illinois Administrative Procedure Act.

"Master agreement" means a written service agreement between a traditional

client and a real estate appraiser, appraisal firm, appraisal management company

or panel of approved appraisers.

"Non-traditional client" means the Division or an approved practicum course

provider.

"Practicum course instructor" means a Certified Residential Appraiser or a

Certified General Appraiser in good standing with the Division who is authorized

to conduct an approved practicum course.

"Prerequisite education" means any education course that does not meet AQB

requirements under qualifying education but is necessary prior to being issued an

Illinois appraiser credential as an Associate Real Estate Trainee Appraiser.

"Qualifying education" means education that is creditable toward the

requirements set forth in Section 1455.150.

"Quantitative experience" means actual time spent on the appraisal process.

"Renewal Deadline" means September 30 of each odd-numbered year.

"Required core curriculum" means a set of appraisal subject matter major

headings known as modules that requires a specified number of educational hours

at each credential level. (See 225 ILCS 458/5-10(a)(5).)


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"Residential" means composed of 1 to 4 residential units.

"Secretary" means the Secretary of the Department of Financial and Professional

Regulation.

"Traditional client" means a client who hires an appraiser to complete an

assignment by employment or contract for business purposes.

"True copy" means a photocopy or an electronic copy of the entire report

transmitted to the client.

"USPAP" means the Uniform Standards of Professional Appraisal Practice

promulgated by the Appraisal Standards Board pursuant Title XI of the Federal

Financial Institutions Reform, Recovery and Enforcement Act of 1989 (12 USC

3331 et seq.) published biennially by the Appraisal Standards Board of The

Appraisal Foundation, 1155 15th Street N.W., Suite 1111, Washington DC 20005

(effective January 1, 2016 through December 31, 2017,January 1, 2014 through

December 31, 2015, no later amendments or editions).

"Waiver valuation" means a specific valuation product utilized by the Illinois

Department of Transportation, under Section 5-5(e-5) of the Act, to establish a

basis for determining just compensation.

"Waiver valuator" means an employee of the Illinois Department of

Transportation, a registered county or municipal engineer, or a municipal

employee who is permitted to complete or co-sign a waiver valuation, not to

exceed $10,000, prepared in accordance with the federal Uniform Relocation

Assistance and Real Property Acquisition Policies Act of 1970 (42 USC

4601-4655) or prepared pursuant to the federal Uniform Relocation Assistance

and Real Property Acquisition for Federal and Federally-Assisted Programs

regulations (49 CFR 24)

"Work-file" means documentation necessary to support an appraiser's analyses,

opinions and conclusions, including, but not limited to, the name of the client and

the identity, by name or type, of any other intended users; true copies of any

written reports, documented on any type of media; summaries of any oral reports

or testimony, or a transcript of testimony, including the appraiser's signed and

dated certification; and all other data, information and documentation necessary to

support the appraiser's opinions and conclusions and to show compliance with


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USPAP, or references to the locations of other documentation. A work-file in

support of a Restricted Use or Restricted Appraisal Report must be sufficient for

the appraiser to produce an Appraisal Report.

"Web Form" means a web page that allows a user to enter data that is sent to a

server for processing.

"Written Engagement" means a defined relationship between a real estate

appraiser or appraisers and the client. It states the terms, conditions and scope of

the appraisal service request, including but not limited to compensation.

(Source: Amended at 42 Ill. Reg. ______, effective ____________)

SUBPART B: LICENSING REQUIREMENTS

Section 1455.100 Application for a State Certified General Real Estate Appraiser License

and a State Certified Residential Real Estate Appraiser License; Application for an

Associate Real Estate Trainee Appraiser License; Application by Non-Resident for

Licensure by Endorsement

a) Each applicant for a State Certified General Real Estate Appraiser License and a

State Certified Residential Real Estate Appraiser License shall submit to the

Division:

1) An application, provided by the Division and signed by the applicant, on

which all questions have been answered;

2) The fee required by Section 1455.320;

3) Proof of successful completion of the qualifying education requirements

as provided by Section 1455.150;

4) A score report/application that provides proof of successful completion of

the qualifying education and experience requirements as provided by

Subparts C and D;

5) Proof of successful completion of the examination authorized by the

Division and endorsed by the AQB; and


17



6) Satisfactory completion of a criminal background check, as required by

Section 5-22 of the Act.

b) Each applicant for an Associate Real Estate Trainee Appraiser License shall

submit to the Division:




3) Proof of successful completion of the qualifying education requirements

within 5 years prior to initial application, as provided by Subpart C;

4) A score report/application that provides proof of successful completion of

the examination authorized by the Division;

5) Proof of successful completion of any required conditional education

offering; and



c) Each non-resident applicant for a State Certified General Real Estate Appraiser

license or a State Certified Residential Real Estate Appraiser license applying by

endorsement shall submit to the Division:



2) The fee required by Section 1455.320; and

3) A certification of good standing from the jurisdiction of the applicant's

place of residence or by a search by the Division of the Appraisal

Subcommittee's (ASC) National Registry history that may be obtained

from the ASC at 1401 H Street N.W., Suite 760, Washington DC 20005 or

at its website at www.asc.gov; and.



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Section 1455.110 Application for Renewal of State Certified General Real Estate

Appraiser License, State Certified Residential Real Estate Appraiser License, and

Associate Real Estate Trainee Appraiser License; Late Renewal of State Certified General

Real Estate Appraiser License, State Certified Residential Real Estate Appraiser License,

and Associate Real Estate Trainee Appraiser License; Reinstatement of State Certified

General Real Estate Appraiser License, State Certified Residential Real Estate Appraiser

License, and Associate Real Estate Trainee Appraiser License; Application for Military

Deferral; Expiration Date

a) Each applicant for renewal of a State Certified General Real Estate Appraiser

License, State Certified Residential Real Estate Appraiser License, and Associate

Real Estate Trainee Appraiser License shall submit to the Division:




3) Proof of successful completion of the continuing education requirements

as provided by Subpart C; and.



b) Any person who fails to submit a renewal application and renew his or her license

by the expiration date of the license may renew his or her license for a period of 2

years following the expiration date of his or her license by submitting to the

Division:



2) The fee and late penalty required by Section 1455.320; and



17






c) For the purposes of this Section, all licenses shall expire on September 30 of odd

numbered years.

d) Any person who fails to renew pursuant to subsection (b) shall not be eligible to

renew his or her license, and must meet the requirements of a new applicant as

required by the Act and subsection (f).

e) License renewals shall not be processed until proof of successful completion of

continuing education is submitted and awarded credit by the Division. Licensees

unable to provide satisfactory evidence of completed continuing education for the

prescribed renewal cycle shall have their license automatically suspended.

f) Each applicant for reinstatement of a State Certified General Real Estate

Appraiser License, State Certified Residential Real Estate Appraiser License, and

Associate Real Estate Trainee Appraiser License shall submit to the Division:








g) Licensees with military deferrals, upon returning from active duty, shall submit to

the Division:



2) A copy of their DD 214 (Report of Separation);


17





as provided by Subpart C; and

5) Effective January 1, 2015, an applicant in a Reserve component of the

U.S. Armed Forces who was pursuing an appraiser license or certification

prior to December 1, 2011, and who was called to active duty between

December 1, 2011 and December 31, 2014, may satisfy the qualifications

required under the AQB 2008 Criteria for an additional time period after

January 1, 2015. The extension of time shall be equal to the applicant's

time of active duty, plus 12 months.


Section 1455.130 Application for Temporary Practice Permit; Term of Permit; Scope of

Practice; Regulatory Responsibility; Notice

a) Each non-resident applicant for a temporary practice permit issued pursuant to

Section 5-50 of the Act shall submit to the Division:



2) A certification of good standing from the jurisdiction of the applicant's

place of residence or by a search by the Division of the ASC National

Registry; and

3) The fee required by Section 1455.320; and.



b) The term for a temporary practice permit shall be 6 months from the date of

issuance and may be extended for a period of an additional 6 months by request in

writing to the Division. The Division shall not issue contemporaneous temporary

practice permits involving multiple clients within any 6 month period.


17



c) Any person issued a temporary practice permit shall be limited to a specific

appraisal assignment. For the purposes of this Section, the term "assignment"

shall mean one or more real estate appraisals and written appraisal reports that are

covered by a contract to provide an appraisal. A copy of the master agreement, as

defined in Section 1455.10, must be supplied to the Division in the absence of a

specific engagement.

d) Any person issued a temporary practice permit shall be subject to the provisions

of the Act and this Part, and the Division shall take regulatory responsibility for

any person violating any provisions of the Act and this Part while the person is

practicing in the State of Illinois.

e) If the Division takes any disciplinary action against an appraiser practicing in the

State of Illinois under a temporary practice permit, it shall notify the jurisdiction

of the appraiser's place of residence.

f) Persons issued a temporary practice permit shall affix the temporary practice

permit number, issuance date, expiration date of the temporary practice permit,

and permit title within the body of the report beneath the licensee's signature, on

the certification page and wherever the signature appears.

g) The permit title is "Illinois Temporary Practice Permit". Temporary Practice

Permit assignments covered by a master agreement, as defined in Section

1455.10, or a written engagement must include, at a minimum, the date of the

master agreement, the intended user, the intended use, the property type and the

location of the Illinois property that is the subject of the report.


Section 1455.140 Issuance of Certificate to Real Estate Appraisers; Temporary Practice

Permits

a) The Division shall issue a certificate of licensure and a pocket card to all real

estate appraisers approved for licensure under the Act and this Part. The

certificate shall include the name, license number, address and rank of the real

estate appraiser and the date of expiration.

b) The Division shall issue a certificate for a temporary practice permit to all real

estate appraisers approved to practice on a temporary permit. The certificate shall


17



include the name, temporary practice permit number and address of the real estate

appraiser and the expiration date of the temporary practice permit.


SUBPART C: EDUCATION REQUIREMENTS

Section 1455.150 Qualifying Education Requirements; State Certified General Real Estate

Appraiser; State Certified Residential Real Estate Appraiser; Associate Real Estate

Trainee Appraiser; Non-Resident Qualifying Education; In Lieu of Requirements; Foreign

Degrees

a) Residential

An applicant for licensure as a State Certified Residential Real Estate Appraiser

shall meet the following criteria:

1) 2500 hours of experience obtained during no fewer than 24 months is

required, of which, no less than 50% must be in residential 1 to 4 families,

USPAP compliant, appraisal work. While the hours may be cumulative,

the required number of months must accrue before an individual can be

certified;

2) 200 hours of modular appraisal education as stated in the Guide Notes

(GN-1) of the AQB 2015 Criteria;

3) Bachelor's degree or higher or equivalent (see subsection (g)) from an

accredited college, community college or university; and

4) If an individual applicant for licensure submits integrated course credit for

approval, the course must have been approved by the Course Approval

Program of the AQB and a topic matrix revealing the exact number of

hours for each section of course content must be provided for review.

Only integrated course credit bundled together to equal a module will be

accepted. Partial credit toward a module will not be accepted. It is the

applicant's responsibility to demonstrate compliance as part of the

application.

b) Any person who makes application for an Associate Real Estate Trainee

Appraiser License shall be required, as a pre-requisite to examination, to


17



successfully complete 75 classroom hours of qualifying education in subjects

related to real estate appraisal, as outlined by Subpart H, and shall include 15

hours of instruction relative to USPAP that is approved by the AQB and taught by

an AQB certified instructor. All qualifying education requirements shall only be

accepted from education providers and courses approved by the Division. All 75

hours of qualifying education for the Associate Real Estate Trainee Appraiser

credential must be completed within 5 years prior to the date of initial application.

c) The Division may accept evidence of successful completion of qualifying

education credit from another jurisdiction, if that jurisdiction's requirements are

substantially the same as the State of Illinois' and meet the minimum licensing

requirements of the AQB 2015 Criteria and may be in modular format for

licensure after January 1, 2015. A real estate appraiser who wishes to obtain

credit for qualifying education courses not licensed by the Division shall submit

to the Division:

1) An application provided by the Division requesting approval for

qualifying education credit, signed by the applicant, on which all questions

are answered;

2) A certificate of successful completion provided by the education provider,

a certification by the jurisdiction of the appraiser's place of residence of

successful completion of the requested qualifying education credit, or any

other evidence to be considered by the Division; and

3) The fee required by Section 1455.320.

d) General

An applicant for licensure as a State Certified General Real Estate Appraiser who

has not gained appraisal experience shall meet the following criteria:

1) 3000 hours of experience obtained during no fewer than 30 months is

required, of which 1,500 hours must be in non-residential appraisal work.

While the hours may be cumulative, the required number of months must

accrue before an individual can be certified;

2) 300 hours of modular appraisal education as stated in the Required Core

Curriculum of the AQB 2015 Criteria;


17



3) Bachelors degree or higher or equivalent (see subsection (g)), from an

accredited college or university; and

4) If an individual applicant for licensure submits integrated course credit for

approval, the course must have been approved by the Course Approval

Program of the AQB and a topic matrix revealing the exact number of

hours for each section of course content must be provided for review.

Only integrated course credit bundled together to equal a module will be

accepted. Partial credit toward a module will not be accepted. It is the

applicant's responsibility to demonstrate compliance as part of the

application.

e) The Division may accept evidence of successful completion of qualifying

education credit from another jurisdiction, if that jurisdiction's requirements are

substantially the same as the State of Illinois' and meet the minimum licensing

requirements of the AQB 2015 Criteria and may be in modular format for

licensure after January 1, 2015. A real estate appraiser who wishes to obtain

credit for qualifying education courses not licensed by the Division shall submit

to the Division:


qualifying education credit, signed by the applicant, on which all questions

are answered;

2) A certificate of successful completion provided by the education provider,

a certification by the jurisdiction of the appraiser's place of residence of

successful completion of the requested qualifying education credit, or any

other evidence to be considered by the Division; and


f) Credit toward qualifying education requirements may also be obtained via the

completion of a graduate (masters or doctoral) degree in Real Estate from an

accredited college or university approved by The Association to Advance

Collegiate Schools of Business, or a regional or national accreditation agency

recognized by the U.S. Secretary of Education, provided that the college or

university has had its curriculum reviewed and approved by the AQB.

g) Applicants seeking credit for foreign degrees shall have an evaluation of their


17



education credentials to convert the credentials to American equivalent semester

credits and courses. Only vendors and organizations recognized by the Illinois

State Board of Education will be permitted to conduct the evaluations.


Section 1455.160 Continuing Education Requirements for State Certified General Real

Estate Appraiser, State Certified Residential Real Estate Appraiser, and Associate Real

Estate Trainee Appraiser; Non-Resident Continuing Education Approval

a) CE Credit

1) A State Certified General Real Estate Appraiser, State Certified

Residential Real Estate Appraiser, or Associate Real Estate Trainee

Appraiser who makes application to renew his or her real estate appraiser

license shall successfully complete the equivalent of 14 hours of approved

continuing education per year preceding the renewal, e.g., a total of 28

hours of approved continuing education for a 2 year renewal. Continuing

education credit will only be accepted from education providers and

courses approved by the Division.

2) If a real estate appraiser was issued an initial license for less than 185 days

prior to the expiration of the license, then no continuing education is

required for that renewal. If a real estate appraiser has held a license 185

days or more prior to the expiration, but less than two years, then 14 hours

of approved continuing education is required.

3) A real estate appraiser must complete the 7-hour National USPAP Update

Course or its equivalent as determined by the AQB or an alternate method

established by the AQB taught by an AQB certified instructor who also

hold a current appraiser certification by a state during each pre-renewal

period prior to renewing or converting his or her real estate appraiser

license, unless the real estate appraiser was issued his or her initial license

for a period of less than 185 days prior to the expiration date. A real estate

appraiser must complete the 7-hour National USPAP Update Course or its

equivalent by June 30 of an even-numbered year, following the release of

USPAP. Those real estate appraisers issued a license more than 6 months

after the effective date of USPAP shall complete the 7-hour National

USPAP Update Course within 6 months after licensure.


17



4) Pursuant to 1455.320(g)(7), the Department, at its discretion, may assess

an administrative fee at a rate of $100 per credit hour for CE courses

completed after the deadline. The administrative fee shall not exceed

$2,000.

5) Beginning in 2019, and for each renewal thereafter, a licensee seeking

renewal shall complete CE by the June 30 CE Completion Deadline. The

Division shall conduct audits to verify compliance with this Section. If,

during an audit, the Division determines that a licensee may be deficient in

complying with CE requirements, the Division may notify the licensee of

the possible deficiency. The licensee shall have until the September 30

Renewal Deadline to submit to the Division evidence of compliance with

CE requirements.

A) If satisfactory evidence of compliance with CE requirements is

submitted by the September 30 Renewal Deadline that indicates

that the licensee complied with the June 30 CE Completion

Deadline, the Division will process the licensee renewal.

B) If the licensee cannot submit evidence of having been in

compliance with CE requirements by the June 30 CE Completion

Deadline, the licensee shall have until the September 30 Renewal

Deadline to submit evidence of having attained compliance with

CE requirements by completing courses offered after the June 30

CE Completion Deadline. The evidence of course completion must

be accompanied by an administrative fee of $100 per credit hour

for courses completed after the June 30 CE Completion Deadline.

The administrative fee shall not exceed $2,000. The evidence will

not be considered if the required fee is not submitted. If the

evidence is satisfactory, the Division will process a license

renewal. Credit hours taken or submitted after the June 30 CE

Completion Deadline in satisfaction of a CE deficiency may not be

used as credit for the next renewal period.

C) If the licensee submits an application for renewal and fails to

submit satisfactory evidence of compliance with CE requirements,

or fails to pay any administrative fee by the September 30 Renewal

Deadline, the failure shall be evidence of a violation of Section


17



1455.310(e) regarding unprofessional conduct in applying for

renewal of, or to procure, a license, and as set forth in Section 15-

10 of the Act. The Division shall send notice to the licensee,

indicating the commencement of disciplinary proceedings that may

result in public discipline.

b) CE Credit from Another Jurisdiction

The Division may accept evidence of successful completion of continuing

education credit from another jurisdiction if that jurisdiction's requirements are

substantially the same as the State of Illinois' and meet the recommendations of

the AQB, and if the credit was earned and submitted by the June 30 CE

Compliance Deadlineduring the appropriate pre-renewal period. A real estate

appraiser who wishes to obtain credit for continuing education courses not

licensed by the Division shall submit to the Division:


continuing education credit, signed by the applicant, on which all

questions are answered;

2) A certificate of successful completion provided by the education provider

or a certification by the jurisdiction of the appraiser's place of residence of

successful completion of the requested continuing education credit; and


c) CE Requirements Regarding Renewal, Restoration or Reinstatement

Prior to returning to active status, a licensee not authorized to practice must

complete all required CE hours that would have been required if the licensee was

in an active status. The required hours must also include the current 7 hour

National USPAP Update Course or its equivalent. The license will not be restored

to active status unless and until all requirements of this Part are met.


SUBPART D: EXPERIENCE REQUIREMENTS

Section 1455.190 Verification of Experience Credit


17



All applicants shall verify experience credit on forms provided by the Division. Those forms

shall include information on the type of property, date of report, address of appraised property,

description of work performed and number of work hours. The Division may audit such

verification and, if requested, the applicant must provide experience documentation in the form

of reports or file memoranda and should support the experience claimed. The Division, at its

discretion, will determine the validity of all appraisal experience credit in conformity with

criteria recommended by the AQB. All experience must be USPAP compliant. An applicant's

experience must be in appraisal work conforming to Standards 1, 2, 3, 4, 5 and/or 6 in which the

appraiser demonstrates proficiency in appraisal principles, methodology, procedures

(development), and reporting conclusions. The Division, at its discretion, will determine the

validity of all appraisal experience credit in conformity with criteria recommended by the AQB.

a) For applicants intending to upgrade to a State Certified Residential Real Estate

Appraiser License:

1) No more than 30% of the residential experience shall be claimed for

appraisal review or appraisal consulting assignments.

2) No more than 30% of the residential experience shall be claimed for the

appraisal of vacant land.

3) No more than 30% of the total experience shall be non-residential

assignments.

4) No less than 50% of the total experience submitted shall contain signed

certifications by the applicant.

5) All experience logs must contain original signatures.

b) For applicants intending to upgrade to a State Certified General Real Estate

Appraiser License:

1) No more than 30% of the experience shall be claimed for appraisal review

or appraisal consulting assignments.

2) No more than 30% of the residential experience shall be claimed for the

appraisal of vacant land.


17



3) No less than 50% of the total experience submitted shall contain signed

certifications by the applicant.

4) All experience logs must contain original signatures (not stamps or digital

signatures).

c) Real Estate Mass Appraisal/Ad Valorem Experience

1) Each applicant seeking acceptance of experience as an assessment official,

or as deputy or employee of an assessment official, in applying for a State

Certified General Real Estate Appraiser License, State Certified

Residential Real Estate Appraiser License, or Associate Real Estate

Trainee Appraiser License shall submit to the Division:

A) An application, provided by the Division and signed by the

applicant, on which all questions have been answered;

B) A notarized Real Estate Mass Appraisal/Ad Valorem Affidavit;

C) The Assessment Experience Certification;

D) A completed work log;

E) The fee required by Section 1455.320.

2) The applicant must demonstrate qualitative experience through no fewer

than 5 appraisals for ad valorem tax/assessment purposes utilizing or

considering the three approaches to value. If the applicant is intending to

upgrade to a State Certified General Real Estate Appraiser License, then 3

of the 5 must be non-residential samples.

cd) Practicum courses that are approved by the AQB Course Approval Program or by

the Division shall satisfy the non-traditional client experience requirement.


SUBPART E: BUSINESS PRACTICES; STANDARDS AND SCOPE OF PRACTICE

Section 1455.240 Uniform Standards of Professional Appraisal Practice (USPAP)


17



a) Pursuant to Section 10-10 of the Act, the 20172015 USPAP are hereby

incorporated by reference with no later amendments or editions.

b) All real estate appraisers licensed under the Act shall practice in accordance with

USPAP except where the standards are contrary to Illinois law or public policy

(USPAP, Jurisdictional Exception).

c) All investigators, board members, auditors and examiners employed or retained

by the Division are exempt from the requirements of USPAP Standard 3 while

performing an investigation, audit or examination.

d) If the Division files a formal complaint alleging violations of USPAP, a USPAP

Standard 3 review shall be utilized by the Division at a formal hearing. The

Division may limit the scope of the USPAP Standard 3 review to exclude

valuation.


SUBPART F: ENFORCEMENT PROVISIONS

Section 1455.316 Supervisor and Trainee Requirements

a) Requirements of a Supervising Appraiser

1) A supervising appraiser shall provide to the Division in writing the name

and address of each Associate Real Estate Trainee Appraiser within 10

days after engagement, and notify the Division in writing within 10 days

after termination of the engagement on a form provided by the Division.

2) A supervising appraiser shall instruct and directly supervise an Associate

Real Estate Trainee Appraiser for any classification of license or

certificate in the entire preparation of each appraisal. A supervising

appraiser shall provide direct supervision, being personally and physically

present, during a minimum of the first 500 hours of experience for no

fewer than 25 assignments or thereafter until such time as the supervising

appraiser determines the Associate Real Estate Trainee is competent

within the meaning of the AQB's "Real Property Qualification Criteria"

effective January 1, 2015. If a State Certified General Real Estate


17



Appraiser is supervising an Associate Real Estate Trainee Appraiser, all

appraisals completed during the first 500 hours of experience may be

non-residential appraisals. The supervising appraiser shall approve and

sign all final appraisal documents certifying that the appraisals are in

compliance with USPAP.

3) A supervising appraiser's determination of competence shall not be

unreasonably withheld. A supervising appraiser shall not cause a trainee to

exceed an additional 350 hours of experience beyond the 500 hours

required by subsection (a)(2), without good cause, in determining that a

trainee lacks competence.

4) A supervising appraiser shall hold an active valid license issued under the

Act as a Certified General Real Estate Appraiser or a Certified Residential

Real Estate Appraiser. The license held by the supervising appraiser shall

be in good standing and shall not have been subject to any disciplinary

action within any jurisdiction within the last 3 years that affects the

supervisory appraiser's legal eligibility to engage in appraisal practice. A

supervisory appraiser subject to a disciplinary action would be considered

to be in "good standing" 3 years after the successful completion/

termination of the sanction imposed against the appraiser. An Illinois

certified appraiser seeking to supervise any Associate Real Estate Trainee

Appraisers, prior to being permitted to supervise, must complete:

A) the six-hour Illinois Supervisor-Trainee Course; or

B) the three-hour AQB portion of the Illinois Supervisor-Trainee

Course followed within one-year by the Illinois jurisdictional

portion.

b) Requirements of an Associate Real Estate Trainee Appraiser

1) An Associate Real Estate Trainee Appraiser shall provide to the Division,

in writing, the name and address of each supervising appraiser within 10

days of engagement, on a form provided by the Division, and shall notify

the Division, on a form provided by the Division, within 10 days after

termination of the engagement.


17



2) An Associate Real Estate Trainee Appraiser shall maintain an appraisal

log for each supervising appraiser. The supervising appraiser and the

trainee shall be jointly responsible for maintaining the appraisal

experience log. The log must, at a minimum, include the following in the

log for each appraisal:

A) Type of property;

B) Date of report;

C) Property description;

D) Description of work performed by the trainee and scope of review

and supervision by the supervising appraiser;

E) Number of actual work hours by the trainee on the assignment; and

F) The signature and State license number of the supervising

appraiser.



17

ILLINOIS GAMING BOARD


1) Heading of the Part: Video Gaming (General)

2) Code Citation: 11 Ill. Adm. Code 1800

3) Section Numbers: Proposed Actions:

1800.110 Amendment

1800.420 Amendment

4) Statutory Authority: Authorized by Section 78 (a) (3) and (b) of the Video Gaming Act

[230 ILCS 40/78 (a) (3) and (b)].

5) A Complete Description of the Subjects and Issues Involved:

Definition of "prima facie case": Section 1800.615 of the Video Gaming (General) Part

of the Illinois Administrative Code establishes the procedures pertaining to requests for

hearing following an initial denial of a license application by the Illinois Gaming Board.

In pertinent part, this section states that:

….The Board may deny a request for hearing if the statement of the reasons and

facts that it contains does not establish a prima facie case or fails to comply with

any of the other requirements of this Section…

Nowhere in this Part, however, is "prima facie case" defined. The present rulemaking

adds a needed definition of this term to Section 1800.110 (Definitions). The new

definition of "prima facie case" is the following:

Evidence submitted by a license applicant to establish suitability for licensure that

(i) rebuts material factual allegation outlined in the Board's notice of denial, or (ii)

is additional material evidence not considered by the Board when making its

licensing determination.

Application of Section 9 of the Riverboat Gambling Act to Section 45 (a) of the Video

Gaming Act: Section 45 (a) of the Video Gaming Act (VGA or Act) provides in

pertinent part that:

….The Board may issue or deny a license under the Act to any person pursuant to

the same criteria set forth in Section 9 of the Riverboat Gambling Act. [Emphasis

added].


17



Section 9 (a) of the Riverboat Gambling Act (RGA) provides that, in order to be eligible

for an occupational license under that Act, an applicant must meet the stated criteria of

that subsection, namely:

● Be at least 21 years of age (Section 9 (a) (1));

● Not have been convicted of a felony or a gaming offense (Section 9 (a) (2));

● Not have been convicted of a crime, other than a felony or gaming offense,

involving dishonesty or moral turpitude, except that the Board has discretion

to issue a license to persons who have committed such a crime more than 10

years previously, if they have not committed a subsequent crime (Section 9 (a)

(2.5));

● Demonstrate a level of skill or knowledge which the Board considers

necessary (Section 9 (a) (3)); and

● Meet standards for the holding of an occupational license as adopted by rules

of the Board (Section 9 (a) (4)).

Generally, "may" is used in a statute as a word of permission. Illinois courts have held

that "the use of the word 'may' suggests a permissive rather than mandatory reading."

People v. Henry, 398 Ill. App. 3d 1019, 1025 ((3rd Dist. 2010). Illinois courts have,

however, distinguished exceptions where "may" is to be understood as a word of

command:

It has been stated as a rule of construction that the word 'may' in a statute will be

construed to mean 'shall' whenever the rights of the public or third persons depend

upon the exercise of the power of the performance of the duty to which it refers,

and such is its meaning in all cases where the public interest and right are

concerned, or a public duty imposed upon public officers, and the public or third

persons have a claim de jure that the power shall be exercised, or where it is

necessary to construe it to carry out the intent of the legislature. Figures v.

Swank, 128 Ill. App. 2d 211, 216 (1st Dist. 1970).

Other Illinois cases that demarcate the mandatory use of "may" in an essentially identical

manner are: A.Y. McDonald Mfg. Co. v. State Farm Mut. Auto. Ins. Co., 225 Ill. App. 3d

851, 855 (4th Dist. 1992); Boddiker v. McPartlin, 379 Ill. 567, 578 (1942); and Foutch v.

Zempel, 332 Ill. 192, 199 (1928).


17



Based on these precedents, it is apparent that, as used in Section 45 (a) of the Video

Gaming Act, "may" should be given a mandatory rather than permissive reading. The

relevant statutory provisions which lead to this conclusion are the following:

Section 80 of the Video Gaming Act provides in pertinent part that "[t]he provisions of

the Illinois Riverboat Gambling Act, and all rules promulgated thereunder, shall apply to

the Video Gaming Act, except where there is a conflict between the 2 Acts."

Section 2 (b) of the RGA, which does not conflict with the VGA, and therefore applies to

the latter act, contains a statement of legislative intent that:

While authorization of riverboat gambling will enhance investment, development

and tourism in Illinois, it is recognized that it will do so successfully only if public

confidence and trust in the credibility and integrity of the gambling operations and

the regulatory process is maintained. Therefore, regulatory provisions of this Act

are designed to strictly regulate the facilities, persons, associations and practices

related to gambling operations pursuant to the police powers of the State,

including comprehensive law enforcement supervision.

Section 2 (b) of the RGA thus establishes, as an objective of the VGA, the maintenance

of "public confidence and trust in the credibility and integrity of gambling operations."

Further, this subsection declares that the preservation of such confidence and trust is

dependent on the strict regulation of the "facilities, persons, associations and practices

related to gambling operations." The proper interpretation of Section 45 (a) of the VGA

must be consistent with these overriding legislative objectives.

When Section 45 (a) of the VGA is read against Section 2 (b) of that Act, it is apparent

under the holding of Figures v. Swank quoted above that "may", as used in Section 45

(a), must be deemed synonymous with "shall" or "must", and should not be given a

permissive interpretation. To establish this conclusion, the holding of Figures v. Swank

can be broken down into its separate clauses, each of which will be quoted separately in

the paragraphs below.

First, it is clear that "the rights of the public or third persons depend upon the exercise of

the [Board's] power" to strictly regulate video gaming. Fundamental among the Board's

regulatory powers is the power to approve and deny license applications. Only through

its licensing authority can the Board assure that the various entities involved in video

gaming operations − the manufacturers, distributors, suppliers, terminal operators,


17



locations, and handlers and technicians − perform their statutory functions with integrity

and transparency so as to assure the public"s confidence and trust.

Second, the Board's implementation of licensing requirements under the VGA is "a

public duty imposed upon public officers." The Board and its designees have a statutory

duty to administer and enforce the provisions of the Act.

Finally, "the public or third persons have a claim de jure that the power [of licensure]

shall be exercised, and…it is necessary to construe [this power]…to carry out the intent

of the legislature." The de jure claim of the public and third parties to the exercise of the

Board's licensing authority is created by the Act.

It is thus evident that under the precedent of Figures v. Swank, the word "may", as used

in Section 45 (a) of the VGA, should be given a mandatory rather than permissive

reading. The present rulemaking codifies this interpretation.

6) Published studies and reports, and underlying sources of data, used to compose this

rulemaking: None

7) Will this rulemaking replace any emergency rule currently in effect? No

8) Does this rulemaking contain an automatic repeal date? No

9) Does this rulemaking contain incorporations by reference? No

10) Are there any rulemakings pending on this Part? Yes

Section Numbers: Proposed Actions: Illinois Register Citations:

1800.110 Amendment 41 Ill. Reg. 2777; March 10, 2017


1800.1710 New Section 41 Ill. Reg. 2777: March 10, 2017

1800.1720 New Section 41 Ill. Reg. 2777; March 10, 2017




1800.570 Amendment 41 Ill. Reg. 7409; June 30, 2017

1800.595 New Section 41 Ill. Reg. 7409; June 30, 2017




17



11) Statement of Statewide Policy Objective: This rulemaking does not create or expand a

State mandate under 30 ILCS 805.

12) Time, Place and Manner in which interested persons may comment on this proposed

rulemaking: Any interested person may submit comments in writing concerning this

proposed rulemaking not later than 45 days after publication of this Notice in the Illinois

Register to:

Agostino Lorenzini

General Counsel

Illinois Gaming Board

160 North LaSalle Street

Chicago IL 60601

fax: 312/814-7253

[email protected]

13) Initial Regulatory Flexibility Analysis:

A) Types of small businesses, small municipalities and not-for-profit corporations

affected: Small businesses which apply for video gaming licenses under the

Video Gaming Act will be subject to this interpretive rulemaking. The rulemaking

clarifies that these applicants must meet the qualification requirements set forth in

Section 9 of the Riverboat Gambling Act.

B) Reporting, bookkeeping or other procedures required for compliance: None

C) Types of professional skills necessary for compliance: The proposed rulemaking

will impose no additional requirements.

14) Regulatory Agenda on which this rulemaking was summarized: This rulemaking was not

summarized on a Regulatory Agenda because the need for it was not anticipated when

agendas were prepared.

The full text of the Proposed Amendments begins on the next page:


17



TITLE 11: ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING

SUBTITLE D: VIDEO GAMING

CHAPTER I: ILLINOIS GAMING BOARD

PART 1800

VIDEO GAMING (GENERAL)

SUBPART A: GENERAL PROVISIONS

Section

1800.110 Definitions

1800.115 Gender

1800.120 Inspection

1800.130 Board Meetings

SUBPART B: DUTIES OF LICENSEES

Section

1800.210 General Duties of All Video Gaming Licensees

1800.220 Continuing Duty to Report Information

1800.230 Duties of Licensed Manufacturers

1800.240 Duties of Licensed Distributors

1800.250 Duties of Licensed Video Terminal Operators

1800.260 Duties of Licensed Technicians and Licensed Terminal Handlers

1800.270 Duties of Licensed Video Gaming Locations

SUBPART C: STANDARDS OF CONDUCT FOR LICENSEES

Section

1800.310 Grounds for Disciplinary Actions

1800.320 Minimum Standards for Use Agreements

1800.330 Economic Disassociation

SUBPART D: LICENSING QUALIFICATIONS

Section

1800.410 Coverage of Subpart

1800.420 Qualifications for Licensure

1800.430 Persons with Significant Influence or Control


17



1800.440 Undue Economic Concentration

SUBPART E: LICENSING PROCEDURES

Section


1800.520 Applications

1800.530 Submission of Application

1800.540 Application Fees

1800.550 Consideration of Applications by the Board

1800.555 Withdrawal of Applications and Surrender of Licenses

1800.560 Issuance of License

1800.570 Renewal of License

1800.580 Renewal Fees and Dates

1800.590 Death and Change of Ownership of Video Gaming Licensee

SUBPART F: DENIALS OF APPLICATIONS FOR LICENSURE

Section


1800.615 Requests for Hearing

1800.620 Appearances

1800.625 Appointment of Administrative Law Judge

1800.630 Discovery

1800.635 Subpoenas

1800.640 Motions for Summary Judgment

1800.650 Proceedings

1800.660 Evidence

1800.670 Prohibition on Ex Parte Communication

1800.680 Sanctions and Penalties

1800.690 Transmittal of Record and Recommendation to the Board

1800.695 Status of Applicant for Licensure Upon Filing Request for Hearing

SUBPART G: DISCIPLINARY ACTIONS AGAINST LICENSEES

Section


1800.715 Notice of Proposed Disciplinary Action Against Licensees

1800.720 Hearings in Disciplinary Actions


17



1800.725 Appearances

1800.730 Appointment of Administrative Law Judge

1800.735 Discovery

1800.740 Subpoenas

1800.745 Motions for Summary Judgment

1800.750 Proceedings

1800.760 Evidence

1800.770 Prohibition on Ex Parte Communication

1800.780 Sanctions and Penalties

1800.790 Transmittal of Record and Recommendation to the Board

1800.795 Persons Subject to Proposed Orders of Economic Disassociation

SUBPART H: LOCATION OF VIDEO GAMING TERMINALS IN

LICENSED VIDEO GAMING LOCATIONS

Section

1800.810 Location and Placement of Video Gaming Terminals

1800.815 Licensed Video Gaming Locations Within Malls

1800.820 Measurement of Distances from Locations

1800.830 Waivers of Location Restrictions

SUBPART I: SECURITY INTERESTS

Section

1800.910 Approvals Required, Applicability, Scope of Approval

1800.920 Notice of Enforcement of a Security Interest

1800.930 Prior Registration

SUBPART J: TRANSPORTATION, REGISTRATION,

AND DISTRIBUTION OF VIDEO GAMING TERMINALS

Section

1800.1010 Restriction on Sale, Distribution, Transfer, Supply and Operation of Video

Gaming Terminals

1800.1020 Transportation of Video Gaming Terminals into the State

1800.1030 Receipt of Video Gaming Terminals in the State

1800.1040 Transportation of Video Gaming Terminals Between Locations in the State

1800.1050 Approval to Transport Video Gaming Terminals Outside of the State

1800.1060 Placement of Video Gaming Terminals


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1800.1065 Registration of Video Gaming Terminals

1800.1070 Disposal of Video Gaming Terminals

SUBPART K: STATE-LOCAL RELATIONS

Section

1800.1110 State-Local Relations

SUBPART L: FINGERPRINTING OF APPLICANTS

Section

1800.1210 Definitions

1800.1220 Entities Authorized to Perform Fingerprinting

1800.1230 Qualification as a Livescan Vendor

1800.1240 Fingerprinting Requirements

1800.1250 Fees for Fingerprinting

1800.1260 Grounds for Revocation, Suspension and Denial of Contract

SUBPART M: PUBLIC ACCESS TO INFORMATION

Section

1800.1310 Public Requests for Information

SUBPART N: PAYOUT DEVICES AND REQUIREMENTS

Section

1800.1410 Ticket Payout Devices

1800.1420 Redemption of Tickets Following Removal or Unavailability of Ticket Payout

Devices

SUBPART O: NON-PAYMENT OF TAXES

Section

1800.1510 Non-Payment of Taxes

SUBPART P: CENTRAL COMMUNICATIONS SYSTEM

Section

1800.1610 Use of Gaming Device or Individual Game Performance Data


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AUTHORITY: Implementing and authorized by the Video Gaming Act [230 ILCS 40].

SOURCE: Adopted by emergency rulemaking at 33 Ill. Reg. 14793, effective October 19, 2009,

for a maximum of 150 days; adopted at 34 Ill. Reg. 2893, effective February 22, 2010;

emergency amendment at 34 Ill. Reg. 8589, effective June 15, 2010, for a maximum of 150 days;

emergency expired November 11, 2010; amended at 35 Ill. Reg. 1369, effective January 5, 2011;

emergency amendment at 35 Ill. Reg. 13949, effective July 29, 2011, for a maximum of 150

days; emergency expired December 25, 2011; amended at 36 Ill. Reg. 840, effective January 6,

2012; amended by emergency rulemaking at 36 Ill. Reg. 4150, effective February 29, 2012, for a

maximum of 150 days; amended at 36 Ill. Reg. 5455, effective March 21, 2012; amended at 36

Ill. Reg. 10029, effective June 28, 2012; emergency amendment at 36 Ill. Reg. 11492, effective

July 6, 2012, for a maximum of 150 days; emergency expired December 2, 2012; emergency

amendment at 36 Ill. Reg. 12895, effective July 24, 2012, for a maximum of 150 days; amended

at 36 Ill. Reg. 13178, effective July 30, 2012; amended at 36 Ill. Reg. 15112, effective October 1,

2012; amended at 36 Ill. Reg. 17033, effective November 21, 2012; expedited correction at 39

Ill. Reg. 8183, effective November 21, 2012; amended at 36 Ill. Reg. 18550, effective December

14, 2012; amended at 37 Ill. Reg. 810, effective January 11, 2013; amended at 37 Ill. Reg. 4892,

effective April 1, 2013; amended at 37 Ill. Reg. 7750, effective May 23, 2013; amended at 37 Ill.

Reg. 18843, effective November 8, 2013; emergency amendment at 37 Ill. Reg. 19882, effective

November 26, 2013, for a maximum of 150 days; emergency amendment suspended by the Joint

Committee on Administrative Rules at 38 Ill. Reg. 3384, effective January 14, 2014; suspension

withdrawn at 38 Ill. Reg. 5897; emergency repeal of emergency amendment at 38 Ill. Reg. 7337,

effective March 12, 2014, for the remainder of the 150 days; amended at 38 Ill. Reg. 849,

effective December 27, 2013; amended at 38 Ill. Reg. 14275, effective June 30, 2014; amended

at 38 Ill. Reg. 19919, effective October 2, 2014; amended at 39 Ill. Reg. 5401, effective March

27, 2015; amended at 39 Ill. Reg. 5593, effective April 1, 2015; amended at 40 Ill. Reg. 2952,

effective January 27, 2016; amended at 40 Ill. Reg. 8760, effective June 14, 2016; amended at 40

Ill. Reg. 12762, effective August 19, 2016; amended at 40 Ill. Reg. 15131, effective October 18,

2016; emergency amendment at 41 Ill. Reg. 2696, effective February 7, 2017, for a maximum of

150 days; emergency expired July 6, 2017; amended at 41 Ill. Reg. 2939, effective February 24,

2017; amended at 41 Ill. Reg. 4499, effective April 14, 2017; amended at 41 Ill. Reg. 10300,

effective July 13, 2017; amended at 42 Ill. Reg. ______, effective ____________.

SUBPART A: GENERAL PROVISIONS

Section 1800.110 Definitions

For purposes of this Part the following terms shall have the following meanings:


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"Act": The Video Gaming Act [230 ILCS 40].

"Adjusted gross receipts" means the gross receipts less winnings paid to wagerers.

The value of expired vouchers shall be included in computing adjusted gross

receipts.

"Administrator": The chief executive officer responsible for day-to-day operations

of the Illinois Gaming Board.

"Affiliate": An "affiliate of", or person "affiliated with", a specified person shall

mean a person that directly, or indirectly through one or more intermediaries,

controls, or is controlled by, or is under common control with, such person.

"Affiliated entity": An "affiliated entity" of a person is any business entity that

directly or indirectly, through one or more intermediaries, controls, is controlled

by, or is under common control with, the person.

"Applicant": A person applying for any license under the Act.

"Application": All material submitted, including the instructions, definitions,

forms and other documents issued by the Illinois Gaming Board, comprising the

video gaming license application submitted to the Illinois Gaming Board.

"Associated video gaming equipment": Ticket payout systems and validation

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