Public Act 095-0386
 
SB0745 Enrolled LRB095 05191 RAS 25264 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Public Accounting Act is amended by
changing Sections 1, 4, 9, 9.01, 9.02, 13, 14, 14.3, and 30.2
and by adding Section 5.2 as follows:
 
    (225 ILCS 450/1)  (from Ch. 111, par. 5501)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 1. No person shall hold himself or herself out to the
public in this State in any manner by using the title
"Certified Public Accountant" or use the abbreviation "C.P.A."
or "CPA" or any words or letters to indicate that the person
using the same is a certified public accountant, unless he or
she has been issued a license or registration by the Department
under this Act or is exercising the practice privilege afforded
under Section 5.2 of this Act.
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 10-1-06.)
 
    (225 ILCS 450/4)  (from Ch. 111, par. 5505)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 4. Transitional language.
    (a) The provisions of this Act shall not be construed to
invalidate any certificates as certified public accountants
issued by the University under "An Act to regulate the
profession of public accountants", approved May 15, 1903, as
amended, or any certificates as Certified Public Accountants
issued by the University or the Board under Section 4 of "An
Act to regulate the practice of public accounting and to repeal
certain acts therein named", approved July 22, 1943, as
amended, which certificates shall be valid and in force as
though issued under the provisions of this Act.
    (b) Before July 1, 2010, persons who have received a
Certified Public Accountant (CPA) Certificate issued by the
Board of Examiners or holding similar certifications from other
jurisdictions with equivalent educational requirements and
examination standards may apply to the Department on forms
supplied by the Department for and may be granted a
registration as a Registered Certified Public Accountant from
the Department upon payment of the required fee.
    (c) Beginning with the 2006 renewal, the Department shall
cease to issue a license as a Public Accountant. Any person
holding a valid license as a Public Accountant prior to
September 30, 2006 who meets the conditions for renewal of a
license under this Act, shall be issued a license as a Licensed
Certified Public Accountant under this Act and shall be subject
to continued regulation by the Department under this Act. The
Department may adopt rules to implement this Section.
    (d) The Department shall not issue any new registrations as
a Registered Certified Public Accountant after July 1, 2010.
After that date, any applicant for licensure under this Act
shall apply for a license as a Licensed Certified Public
Accountant and shall meet the requirements set forth in this
Act. Any person issued a Certified Public Accountant
certificate who has been issued a registration as a Registered
Certified Public Accountant may renew the registration under
the provisions of this Act and that person may continue to
renew or restore the registration during his or her lifetime,
subject only to the renewal or restoration requirements for the
registration under this Act. Such registration shall be subject
to the disciplinary provisions of this Act.
    (e) On and after October 1, 2006, no person shall hold
himself or herself out to the public in this State in any
manner by using the title "certified public accountant" or use
the abbreviation "C.P.A." or "CPA" or any words or letters to
indicate that the person using the same is a certified public
accountant unless he or she maintains a current registration or
license issued by the Department or is exercising the practice
privilege afforded under Section 5.2 of this Act. It shall be a
violation of this Act for an individual to assume or use the
title "certified public accountant" or use the abbreviation
"C.P.A." or "CPA" or any words or letters to indicate that the
person using the same is a certified public accountant in this
State unless he or she maintains a current registration or
license issued by the Department or is exercising the practice
privilege afforded under Section 5.2 of this Act.
(Source: P.A. 93-683, eff. 7-2-04.)
 
    (225 ILCS 450/5.2 new)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 5.2. Substantial equivalency.
    (a) An individual whose principal place of business is not
in this State shall have all the privileges of a person
licensed under this Act as a licensed certified public
accountant without the need to obtain a license or registration
from the Department or to file notice with the Department, if
the individual:
        (1) holds a valid license as a certified public
    accountant issued by another state that the National
    Qualification Appraisal Service of the National
    Association of State Boards of Accountancy has verified to
    be in substantial equivalence with the CPA licensure
    requirements of the Uniform Accountancy Act of the American
    Institute of Certified Public Accountants and the National
    Association of State Boards of Accountancy; or
        (2) holds a valid license as a certified public
    accountant issued by another state and obtains from the
    National Qualification Appraisal Service of the National
    Association of State Boards of Accountancy verification
    that the individual's CPA qualifications are substantially
    equivalent to the CPA licensure requirements of the Uniform
    Accountancy Act of the American Institute of Certified
    Public Accountants and the National Association of State
    Boards of Accountancy; however, any individual who has
    passed the Uniform CPA Examination and holds a valid
    license issued by any other state prior to January 1, 2012
    shall be exempt from the education requirements of Section
    3 of this Act for the purposes of this item (2).
    (b) Notwithstanding any other provision of law, an
individual who offers or renders professional services under
this Section, whether in person or by mail, telephone, or
electronic means, shall be granted practice privileges in this
State and no notice or other submission must be provided by any
such individual.
    (c) An individual licensee of another state who is
exercising the privilege afforded under this Section and the
CPA firm that employs such individual, if any, as a condition
of the grant of this privilege, hereby simultaneously consents:
        (1) to the personal and subject matter jurisdiction and
    disciplinary authority of the Department;
        (2) to comply with this Act and the Department's rules
    adopted under this Act;
        (3) that in the event that the license from the state
    of the individual's principal place of business is no
    longer valid, the individual shall cease offering or
    rendering professional services in this State individually
    or on behalf of a CPA firm; and
        (4) to the appointment of the state board that issued
    the individual's or the CPA firm's license as the agent
    upon which process may be served in any action or
    proceeding by the Department against the individual.
    (d) An individual licensee who qualifies for practice
privileges under this Section who, for any entity headquartered
in this State, performs (i) a financial statement audit or
other engagement in accordance with Statements on Auditing
Standards; (ii) an examination of prospective financial
information in accordance with Statements on Standards for
Attestation Engagements; or (iii) an engagement in accordance
with Public Company Accounting Oversight Board Auditing
Standards may only do so through a firm licensed under this
Act.
 
    (225 ILCS 450/9)  (from Ch. 111, par. 5510)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 9. Unlicensed practice.
    No person shall, after the effective date of this
amendatory Act of the 93rd General Assembly, begin to practice
in this State or hold himself out as being able to practice
licensed certified public accounting in this State or hold
himself or herself out as being able to practice in this State
as a licensed certified public accountant, unless he or she is
licensed in accordance with the provisions of this Act or is
exercising the practice privilege afforded under Section 5.2 of
this Act. Any person who is the holder of a license as a public
accountant heretofore issued, under any prior Act licensing or
registering public accountants in this State, valid on the
effective date of this amendatory Act shall be deemed to be
licensed under this Act shall be subject to the same rights and
obligations as persons originally licensed under this Act.
    No person shall, after the effective date of this
amendatory Act of the 93rd General Assembly, begin to hold
himself or herself out as a registered certified public
accountant unless he or she is registered in accordance with
the provisions of this Act.
    On and after October 1, 2006, no person may use or
incorporate the title "certified public accountant" without
holding a license as a licensed certified public accountant or
registered certified public accountant under this Act.
(Source: P.A. 93-683, eff. 7-2-04.)
 
    (225 ILCS 450/9.01)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 9.01. Unlicensed practice; violation; civil penalty.
    (a) Any person or firm that practices, offers to practice,
attempts to practice, or holds oneself out to practice as a
licensed certified public accountant in this State without
being licensed under this Act or qualifying for the practice
privilege set forth in Section 5.2 of this Act shall, in
addition to any other penalty provided by law, pay a civil
penalty to the Department in an amount not to exceed $5,000 for
each offense as determined by the Department. The civil penalty
shall be assessed by the Department after a hearing is held in
accordance with the provisions set forth in this Act regarding
the provision of a hearing for the discipline of a licensee.
    (b) The Department has the authority and power to
investigate any and all unlicensed activity.
    (c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of record.
(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
 
    (225 ILCS 450/9.02)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 9.02. Unauthorized use of title; violation; civil
penalty.
    (a) Any On and after October 1, 2006, any person who holds
himself or herself out to the public as a certified public
accountant in this State by using shall assume the title
"certified public accountant" or use the abbreviation "CPA" or
any words or letters to indicate that the person using the same
is a certified public accountant without having been issued a
registration as a registered certified public accountant or a
license as a licensed certified public accountant under the
provisions of this Act or without qualifying for the practice
privilege under Section 5.2 of this Act shall, in addition to
any other penalty provided by law, pay a civil penalty to the
Department in an amount not to exceed $5,000 for each offense
as determined by the Department. The civil penalty shall be
assessed by the Department after a hearing is held in
accordance with the provisions set forth in this Act regarding
the provision of a hearing for the discipline of a licensee.
    (b) The Department has the authority and power to
investigate any and all alleged improper use of the certified
public accountant title or CPA designation.
    (c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of record.
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
    (225 ILCS 450/13)  (from Ch. 111, par. 5514)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 13. Application for licensure.
    (a) A person, partnership, limited liability company, or
corporation desiring to practice public accounting in this
State shall make application to the Department for licensure as
a licensed certified public accountant and shall pay the fee
required by rule.
    Applicants have 3 years from the date of application to
complete the application process. If the process has not been
completed in 3 years, the application shall be denied, the fee
forfeited and the applicant must reapply and meet the
requirements in effect at the time of reapplication.
    (b) Any firm, whether organized as a partnership, limited
liability company, corporation, or other entity, that (i) has
an office in this State that uses the title "CPA" or "CPA
firm"; (ii) has an office in this State that performs public
accounting services, as defined in Section 8 of this Act; or
(iii) does not have an office in this State, but performs
attest services, as set forth in subsection (d) of Section 5.2
of this Act, for a client that has its home office in this
State must hold a license issued under this Act.
    (c) A firm that does not have an office in this State may
perform a review of a financial statement in accordance with
the Statements on Standards for Accounting and Review Services
for a client with its home office in this State and may use the
title "CPA" or "CPA firm" without obtaining a license under
this Act, only if the firm (i) performs such services through
individuals with practice privileges under Section 5.2 of this
Act; (ii) satisfies any peer review requirements in those
states in which the individuals with practice privileges under
Section 5.2 have their principal place of business; and (iii)
meets the qualifications set forth in item (2) of subsection
(b) of Section 14 of this Act.
    (d) A firm that is not subject to the requirements of
subsection (b) or (c) of this Section may perform professional
services that are not regulated under subsection (b) or (c) of
this Section while using the title "CPA" or "CPA firm" in this
State without obtaining a license under this Act if the firm
(i) performs such services through individuals with practice
privileges under Section 5.2 of this Act and (ii) may lawfully
perform such services in the state where those individuals with
practice privileges under Section 5.2 of this Act have their
principal place of business.
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
    (225 ILCS 450/14)  (from Ch. 111, par. 5515)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 14. Qualifications. The Department may license as
licensed certified public accountants the following:
    (a) All persons who have received certificates as certified
public accountants from the Board or who hereafter receive
registrations as registered certified public accountants from
the Department who have had at least one year of full-time
experience, or its equivalent, providing any type of service or
advice involving the use of accounting, attest, management
advisory, financial advisory, tax, or consulting skills, which
may be gained through employment in government, industry,
academia, or public practice.
    If the applicant's certificate as a certified public
accountant from the Board or the applicant's registration as a
registered certified public accountant from the Department was
issued more than 4 years prior to the application for a license
under this Section, the applicant shall submit any evidence the
Department may require showing the applicant has completed not
less than 90 hours of continuing professional education
acceptable to the Department within the 3 years immediately
preceding the date of application.
    (b) All partnerships, limited liability companies, or
corporations, or other entities engaged in the practice of
public accounting in this State and meeting the following
requirements:
        (1) (Blank).
        (2) A majority of the ownership of the firm, in terms
    of financial interests and voting rights of all partners,
    officers, shareholders, members, or managers, belongs to
    persons licensed in some state, and the partners, officers,
    shareholders, members, or managers whose principal place
    of business is in this State and who practice public
    accounting in this State, as defined in Section 8 of this
    Act, hold a valid license issued by this State. An
    individual exercising the practice privilege afforded
    under Section 5.2 who performs services for which a firm
    license is required under subsection (d) of Section 5.2
    shall not be required to obtain an individual license under
    this Act.
        (3) It shall be lawful for a nonprofit cooperative
    association engaged in rendering an auditing and
    accounting service to its members only, to continue to
    render that service provided that the rendering of auditing
    and accounting service by the cooperative association
    shall at all times be under the control and supervision of
    licensed certified public accountants.
        (4) The Department may adopt rules and regulations as
    necessary to provide for the practice of public accounting
    by business entities that may be otherwise authorized by
    law to conduct business in Illinois.
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
    (225 ILCS 450/14.3)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 14.3. Additional requirements for firms. In addition
to the ownership requirements set forth in subsection (b) of
Section 14, all firms licensed under this Act shall meet the
following requirements:
    (a) All owners of the firm, whether licensed or not, shall
be active participants in the firm or its affiliated entities.
    (b) An individual who supervises services for which a
license is required under Section 8 of this Act, or who signs
or authorizes another to sign any report for which a license is
required under Section 8 of this Act, or who supervises
services for which a firm license is required under subsection
(d) of Section 5.2 of this Act shall hold a valid, active
Licensed Certified Public Accountant license from this State or
another state and shall comply with such additional experience
requirements as may be required by rule of the Department
Board.
    (c) The firm shall require that all owners of the firm,
whether or not certified or licensed under this Act, comply
with rules promulgated under this Act.
    (d) The firm shall designate to the Department in writing
an individual licensed under this Act or, in the case of a firm
that must have a license pursuant to subsection (b) of Section
13 of this Act, a licensee of another state who meets the
requirements set out in item (1) or (2) of subsection (a) of
Section 5.2 of this Act, who shall be responsible for the
proper registration of the firm.
    (e) Applicants have 3 years from the date of application to
complete the application process. If the process has not been
completed in 3 years, the application shall be denied, the fee
shall be forfeited, and the applicant must reapply and meet the
requirements in effect at the time of reapplication.
(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
 
    (225 ILCS 450/30.2)  (from Ch. 111, par. 5535.2)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 30.2. Contributory fault. Except in causes of action
based on actual fraud or intentional misrepresentation, the the
principles of liability set forth in Sections 2-1115.05,
2-1116, and 2-1117 of the Code of Civil Procedure shall apply
to all claims for civil damages brought against any person,
partnership, corporation, or any other entity certified,
licensed, or practicing under this Act, or any of its
employees, partners, members, officers, or shareholders that
are alleged to result from acts, omissions, decisions, or other
conduct in connection with professional services.
    This Section applies to causes of action accruing on or
after the effective date of this amendatory Act of 1992. This
amendatory Act of 1995 applies to causes of action accruing on
or after its effective date.
(Source: P.A. 89-380, eff. 8-18-95.)
 
    (225 ILCS 450/9.1 rep.)
    Section 10. The Illinois Public Accounting Act is amended
by repealing Section 9.1.
 
    Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
 
    Section 99. Effective date. This Act takes effect January
1, 2008.