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Square Gets Cease and Desist Order in Illinois

Square has become ubiquitous in many cities as an easy and inexpensive way for businesses to process credit card payments. But in Illinois, the company has received a cease and desist order that could endanger their success in that state.

The notice alleges that Square is violating the Illinois' Transmitters of Money Act. The law requires businesses that buy or sell "payment instruments" or transmit money to get a state license.

If Square's plan is to argue the law doesn't apply, their previous actions could make that hard to justify.

Startups Await SEC Crowdfunding Rules

The Jumpstart Our Business Startups Act came into being in April but companies are still waiting for the SEC to publish their eagerly awaited crowdfunding rules.

A provision of the JOBS act allows startups to raise funds through funding portals by selling shares directly to investors. Traditionally companies were required to sell shares only through an established broker-dealer which left many small and new companies out in the cold.

The JOBS act authorized it but until the SEC publishes its rules, companies have no way to register as funding portals. But crowdfunding is still happening.

Obama's Small Biz Tax Cuts Explained

As part of his re-election campaign President Obama has been talking about his commitment to small business and the tax cuts he's gotten during his term. When he says it, there are 18 small business tax cuts passed during his administration.

Like most campaign talk, those numbers are somewhat inflated. Obama counts tax extensions and renewals as separate measures, reports CNN.

All in all there were 14 unique tax breaks for businesses and 5 of them are still in effect. The real question is whether that was actually good for small business.

Cigars Shops Decry FDA Oversight of Regulation

The U.S. Food and Drug Administration is considering regulating premium cigars, much to the chagrin of cigar shops across the country.

The FDA was given authority to regulate all tobacco back in 2009 and until now it hasn't actually made new regulations for cigars. But the organization does say that it is developing a strategy to regulate tobacco products beyond those already regulated.

Cigarettes and smokeless tobacco have heavy regulations and mandatory federal taxes. Makers of premium cigars are worried about what similar regulations on cigars might do to their industry.

They aren't the only ones who oppose FDA regulations in this area.

Los Angeles City Bans Plastic Bags

Los Angeles became the largest city in the country to enact a plastic bag ban on Wednesday, following in the footsteps of 47 other municipalities in California. The LA plastic bag ban is expected to affect about 7,500 large and small grocery and convenience stories.

Before the ban goes into effect, the city will conduct an environmental review and draft a final ordinance. Once enacted, large stores will have six months to comply and small ones will have a year.

Could CA's Foie Gras Ban Go National?

Some famous California chefs have taken to the street, or rather the kitchen, to fight the state's upcoming foie gras ban.

Several high-profile chefs have held foie gras events at their restaurants, CBS Los Angeles reports. They showcased special menus featuring the soon-to-be-outlawed ingredient. However, animal rights activists haven't found their actions amusing. Many have fought back by protesting outside some of the restaurants.

The law banning foie gras goes into effect on July 1 in California. But could it also be the spark needed to set off a national trend?

Two small-business groups are taking opposite sides as the U.S. Supreme Court begins three days of historic hearings about President Obama’s Patient Protection and Affordable Care Act.

The High Court’s decision on the Act, which many call “Obamacare,” will have a huge impact on small businesses, legal experts explain for Reuters. Currently, the law:

  • Requires employers with more than 50 employees to provide health insurance by 2014, or pay a penalty.
  • Requires states to establish health insurance exchanges to provide cheaper and easier access to insurance plans.
  • Allows states to enter into compacts, and allows insurers to offer policies across state lines.

A group called the Small Business Majority supports the Act, UPI reports. But another group, the National Federation of Independent Businesses, opposes the Act — and felt Justices on Monday were on their side.

Obama's Startup America Helps U.S. Entrepreneurs

President Obama marked the 1-year anniversary of the Startup America Partnership on Tuesday by announcing his legislative plans for the program.

The so-called Startup America Legislative Agenda is designed to increase innovation in regions and sectors where entrepreneurship is lagging behind. It includes a wide-range of bills that target taxes, immigration, federal programs and initial public offerings.

Startup America chairman Steve Case believes the following measures will reinvigorate America's entrepreneurs.

MN Beer Shutdown: Liquor Stores Closing Doors

Spurned on by an impasse between Democratic Governor Mark Dayton and Republican legislators, it appears as though the Minnesota government shutdown may turn into a Minnesota beer shutdown.

As of July 1, when the government shut its doors, at least 300 bars, restaurants and liquor stores have been unable to renew their state alcohol buyer's cards, leaving them with dwindling supplies.

Now they may have to shut their doors.

Senate Kills Federal Innovation Research Program

The U.S. Senate voted this week to kill a bill to reauthorize the popular SBIR (Small Business Innovation Research) program, reports the New York Times.

SBIR, a program to encourage small businesses to explore commercialization of technology, reserves 2.5% of federal research and development (R&D) funds for small businesses. Thus, says SBA, SBIR enables small businesses to compete for federal R&D funds with larger enterprises.

In an example of legislative perversity, the bill's author, Sen. Olympia Snow (R-Maine), flipped her vote this week to oppose cutting off debate. Thus she voted to kill her own bill, reports the Times.

So why does a senator administer a poison pill to her own bill? Especially a bill that passed Sen. Snowe's own Senate committee by a vote of 18-1?