093_HB3883

                                     LRB093 14119 AMC 19588 b

 1        AN ACT concerning accounting.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The State Employees Group Insurance  Act  of
 5    1971 is amended by changing Section 3 as follows:

 6        (5 ILCS 375/3) (from Ch. 127, par. 523)
 7        Sec.   3.  Definitions.   Unless  the  context  otherwise
 8    requires, the following words and phrases as used in this Act
 9    shall have the following meanings.  The Department may define
10    these and other words and phrases separately for the  purpose
11    of  implementing  specific  programs providing benefits under
12    this Act.
13        (a)  "Administrative  service  organization"  means   any
14    person,  firm  or  corporation experienced in the handling of
15    claims  which  is  fully  qualified,  financially  sound  and
16    capable of meeting the service requirements of a contract  of
17    administration executed with the Department.
18        (b)  "Annuitant"  means  (1)  an employee who retires, or
19    has retired, on or after January  1,  1966  on  an  immediate
20    annuity under the provisions of Articles 2, 14, 15 (including
21    an  employee  who  has  retired under the optional retirement
22    program established under Section 15-158.2), paragraphs  (2),
23    (3),  or (5) of Section 16-106, or Article 18 of the Illinois
24    Pension  Code;  (2)  any  person  who  was  receiving   group
25    insurance  coverage  under  this  Act as of March 31, 1978 by
26    reason of his status as an annuitant, even though the annuity
27    in  relation  to  which  such  coverage  was  provided  is  a
28    proportional annuity based on less than the minimum period of
29    service required for  a  retirement  annuity  in  the  system
30    involved;  (3)  any  person not otherwise covered by this Act
31    who has retired as a participating member under Article 2  of
 
                            -2-      LRB093 14119 AMC 19588 b
 1    the   Illinois   Pension  Code  but  is  ineligible  for  the
 2    retirement  annuity  under  Section  2-119  of  the  Illinois
 3    Pension Code; (4) the spouse of any person who is receiving a
 4    retirement annuity under Article 18 of the  Illinois  Pension
 5    Code  and  who  is  covered  under  a  group health insurance
 6    program sponsored by a governmental employer other  than  the
 7    State  of  Illinois  and who has irrevocably elected to waive
 8    his or her coverage under this Act and to  have  his  or  her
 9    spouse  considered  as the "annuitant" under this Act and not
10    as a "dependent"; or (5) an  employee  who  retires,  or  has
11    retired,  from  a qualified position, as determined according
12    to rules promulgated by the Director, under a qualified local
13    government  or  a  qualified  rehabilitation  facility  or  a
14    qualified  domestic  violence  shelter   or   service.   (For
15    definition of "retired employee", see (p) post).
16        (b-5)  "New  SERS  annuitant"  means  a person who, on or
17    after January 1, 1998, becomes an annuitant,  as  defined  in
18    subsection   (b),   by  virtue  of  beginning  to  receive  a
19    retirement annuity under Article 14 of the  Illinois  Pension
20    Code,  and is eligible to participate in the basic program of
21    group health benefits provided for annuitants under this Act.
22        (b-6)  "New SURS annuitant" means a person who (1) on  or
23    after  January  1,  1998, becomes an annuitant, as defined in
24    subsection  (b),  by  virtue  of  beginning  to   receive   a
25    retirement  annuity  under Article 15 of the Illinois Pension
26    Code, (2) has not made the election authorized under  Section
27    15-135.1 of the Illinois Pension Code, and (3) is eligible to
28    participate  in  the  basic  program of group health benefits
29    provided for annuitants under this Act.
30        (b-7)  "New TRS State annuitant" means a person  who,  on
31    or  after  July  1, 1998, becomes an annuitant, as defined in
32    subsection  (b),  by  virtue  of  beginning  to   receive   a
33    retirement  annuity  under Article 16 of the Illinois Pension
34    Code based on service as a teacher as  defined  in  paragraph
 
                            -3-      LRB093 14119 AMC 19588 b
 1    (2),  (3),  or  (5)  of  Section  16-106 of that Code, and is
 2    eligible to participate in the basic program of group  health
 3    benefits provided for annuitants under this Act.
 4        (c)  "Carrier"   means   (1)   an  insurance  company,  a
 5    corporation  organized  under  the  Limited  Health   Service
 6    Organization Act or the Voluntary Health Services Plan Act, a
 7    partnership,  or other nongovernmental organization, which is
 8    authorized  to  do  group  life  or  group  health  insurance
 9    business in Illinois, or (2)  the  State  of  Illinois  as  a
10    self-insurer.
11        (d)  "Compensation"  means  salary  or wages payable on a
12    regular payroll by the State Treasurer on a  warrant  of  the
13    State Comptroller out of any State, trust or federal fund, or
14    by  the Governor of the State through a disbursing officer of
15    the State out of a trust or out of federal funds, or  by  any
16    Department  out  of State, trust, federal or other funds held
17    by the State Treasurer or the Department, to any  person  for
18    personal   services  currently  performed,  and  ordinary  or
19    accidental disability  benefits  under  Articles  2,  14,  15
20    (including  ordinary  or accidental disability benefits under
21    the optional retirement  program  established  under  Section
22    15-158.2),  paragraphs (2), (3), or (5) of Section 16-106, or
23    Article 18 of  the  Illinois  Pension  Code,  for  disability
24    incurred after January 1, 1966, or benefits payable under the
25    Workers'   Compensation   or  Occupational  Diseases  Act  or
26    benefits  payable  under  a  sick  pay  plan  established  in
27    accordance  with  Section  36  of  the  State  Finance   Act.
28    "Compensation" also means salary or wages paid to an employee
29    of any qualified local government or qualified rehabilitation
30    facility or a qualified domestic violence shelter or service.
31        (e)  "Commission"   means   the   State  Employees  Group
32    Insurance  Advisory  Commission  authorized  by   this   Act.
33    Commencing  July  1,  1984,  "Commission" as used in this Act
34    means  the  Illinois  Economic  and  Fiscal   Commission   as
 
                            -4-      LRB093 14119 AMC 19588 b
 1    established  by the Legislative Commission Reorganization Act
 2    of 1984.
 3        (f)  "Contributory", when  referred  to  as  contributory
 4    coverage,  shall  mean optional coverages or benefits elected
 5    by the member toward the cost  of  which  such  member  makes
 6    contribution, or which are funded in whole or in part through
 7    the acceptance of a reduction in earnings or the foregoing of
 8    an increase in earnings by an employee, as distinguished from
 9    noncontributory  coverage or benefits which are paid entirely
10    by the State of Illinois without reduction  of  the  member's
11    salary.
12        (g)  "Department"   means  any  department,  institution,
13    board, commission, officer, court or any agency of the  State
14    government  receiving  appropriations  and  having  power  to
15    certify  payrolls  to the Comptroller authorizing payments of
16    salary and wages against such appropriations as are  made  by
17    the  General  Assembly  from any State fund, or against trust
18    funds held by the State  Treasurer  and  includes  boards  of
19    trustees of the retirement systems created by Articles 2, 14,
20    15,  16  and  18  of the Illinois Pension Code.  "Department"
21    also includes the  Illinois  Comprehensive  Health  Insurance
22    Board,  the  Board of Accountancy Examiners established under
23    the Illinois Public Accounting Act, and the Illinois  Finance
24    Authority.
25        (h)  "Dependent", when the term is used in the context of
26    the  health  and  life  plan, means a member's spouse and any
27    unmarried child (1) from birth to age 19 including an adopted
28    child, a child who lives with the member from the time of the
29    filing of a petition for adoption until entry of an order  of
30    adoption,  a stepchild or recognized child who lives with the
31    member in a parent-child relationship, or a child  who  lives
32    with  the member if such member is a court appointed guardian
33    of the child, or (2) age 19 to 23  enrolled  as  a  full-time
34    student  in any accredited school, financially dependent upon
 
                            -5-      LRB093 14119 AMC 19588 b
 1    the member, and eligible to be claimed  as  a  dependent  for
 2    income tax purposes, or (3) age 19 or over who is mentally or
 3    physically  handicapped.  For  the health plan only, the term
 4    "dependent" also includes any person enrolled  prior  to  the
 5    effective  date  of  this  Section  who is dependent upon the
 6    member to the extent that the member may claim such person as
 7    a dependent for income tax deduction purposes; no other  such
 8    person  may  be  enrolled. For the health plan only, the term
 9    "dependent" also includes any person who has  received  after
10    June  30,  2000  an  organ  transplant and who is financially
11    dependent upon the member and eligible to  be  claimed  as  a
12    dependent for income tax purposes.
13        (i)  "Director"   means  the  Director  of  the  Illinois
14    Department of Central Management Services.
15        (j)  "Eligibility period" means  the  period  of  time  a
16    member  has  to  elect  enrollment  in  programs or to select
17    benefits without regard to age, sex or health.
18        (k)  "Employee"  means  and  includes  each  officer   or
19    employee  in the service of a department who (1) receives his
20    compensation for service rendered  to  the  department  on  a
21    warrant   issued   pursuant  to  a  payroll  certified  by  a
22    department or on a warrant or check issued  and  drawn  by  a
23    department  upon  a  trust,  federal  or  other  fund or on a
24    warrant issued pursuant to a payroll certified by an  elected
25    or  duly  appointed  officer  of  the  State  or who receives
26    payment of the performance of personal services on a  warrant
27    issued  pursuant  to  a payroll certified by a Department and
28    drawn by the Comptroller upon  the  State  Treasurer  against
29    appropriations  made by the General Assembly from any fund or
30    against trust funds held by the State Treasurer, and  (2)  is
31    employed  full-time  or  part-time  in  a  position  normally
32    requiring actual performance of duty during not less than 1/2
33    of  a  normal  work period, as established by the Director in
34    cooperation with each department, except that persons elected
 
                            -6-      LRB093 14119 AMC 19588 b
 1    by popular vote  will  be  considered  employees  during  the
 2    entire  term  for  which they are elected regardless of hours
 3    devoted to the service of the  State,  and  (3)  except  that
 4    "employee" does not include any person who is not eligible by
 5    reason  of  such person's employment to participate in one of
 6    the State retirement systems under Articles 2, 14, 15 (either
 7    the regular Article 15  system  or  the  optional  retirement
 8    program  established  under Section 15-158.2) or 18, or under
 9    paragraph (2), (3), or (5) of Section 16-106, of the Illinois
10    Pension Code, but such term  does  include  persons  who  are
11    employed  during  the 6 month qualifying period under Article
12    14 of the Illinois Pension Code.  Such term also includes any
13    person who (1) after January 1, 1966, is  receiving  ordinary
14    or  accidental  disability  benefits under Articles 2, 14, 15
15    (including ordinary or accidental disability  benefits  under
16    the  optional  retirement  program  established under Section
17    15-158.2), paragraphs (2), (3), or (5) of Section 16-106,  or
18    Article  18  of  the  Illinois  Pension  Code, for disability
19    incurred after January 1, 1966, (2) receives total  permanent
20    or total temporary disability under the Workers' Compensation
21    Act  or  Occupational  Disease  Act  as  a result of injuries
22    sustained or illness contracted in the course  of  employment
23    with  the  State of Illinois, or (3) is not otherwise covered
24    under this Act and has  retired  as  a  participating  member
25    under   Article  2  of  the  Illinois  Pension  Code  but  is
26    ineligible for the retirement annuity under Section 2-119  of
27    the  Illinois  Pension Code.  However, a person who satisfies
28    the criteria of the foregoing definition of "employee" except
29    that such person is made ineligible  to  participate  in  the
30    State   Universities  Retirement  System  by  clause  (4)  of
31    subsection (a) of Section 15-107 of the Illinois Pension Code
32    is  also  an  "employee"  for  the  purposes  of  this   Act.
33    "Employee" also includes any person receiving or eligible for
34    benefits under a sick pay plan established in accordance with
 
                            -7-      LRB093 14119 AMC 19588 b
 1    Section 36 of the State Finance Act. "Employee" also includes
 2    each  officer or employee in the service of a qualified local
 3    government,  including  persons  appointed  as  trustees   of
 4    sanitary districts regardless of hours devoted to the service
 5    of the sanitary district, and each employee in the service of
 6    a   qualified  rehabilitation  facility  and  each  full-time
 7    employee in the service  of  a  qualified  domestic  violence
 8    shelter   or   service,  as  determined  according  to  rules
 9    promulgated by the Director.
10        (l)  "Member"  means  an  employee,  annuitant,   retired
11    employee or survivor.
12        (m)  "Optional   coverages   or   benefits"  means  those
13    coverages or benefits available to the member on his  or  her
14    voluntary election, and at his or her own expense.
15        (n)  "Program"  means  the  group  life insurance, health
16    benefits and other employee benefits designed and  contracted
17    for by the Director under this Act.
18        (o)  "Health   plan"  means  a  health  benefits  program
19    offered by the State of Illinois for persons eligible for the
20    plan.
21        (p)  "Retired employee" means any person who would be  an
22    annuitant  as  that  term  is defined herein but for the fact
23    that such person retired prior to January 1, 1966.  Such term
24    also includes any person formerly employed by the  University
25    of Illinois in the Cooperative Extension Service who would be
26    an  annuitant  but  for  the  fact  that such person was made
27    ineligible  to  participate   in   the   State   Universities
28    Retirement  System by clause (4) of subsection (a) of Section
29    15-107 of the Illinois Pension Code.
30        (q)  "Survivor" means a person receiving an annuity as  a
31    survivor  of an employee or of an annuitant.  "Survivor" also
32    includes:  (1)  the  surviving  dependent  of  a  person  who
33    satisfies the  definition  of  "employee"  except  that  such
34    person  is  made  ineligible  to  participate  in  the  State
 
                            -8-      LRB093 14119 AMC 19588 b
 1    Universities  Retirement  System  by clause (4) of subsection
 2    (a) of Section 15-107 of the Illinois Pension Code;  and  (2)
 3    the  surviving  dependent  of any person formerly employed by
 4    the University  of  Illinois  in  the  Cooperative  Extension
 5    Service  who  would  be an annuitant except for the fact that
 6    such person was made ineligible to participate in  the  State
 7    Universities  Retirement  System  by clause (4) of subsection
 8    (a) of Section 15-107 of the Illinois Pension Code.
 9        (q-5)  "New SERS survivor" means a survivor,  as  defined
10    in  subsection (q), whose annuity is paid under Article 14 of
11    the Illinois Pension Code and is based on the death of (i) an
12    employee whose death occurs on or after January 1,  1998,  or
13    (ii) a new SERS annuitant as defined in subsection (b-5).
14        (q-6)  "New  SURS  survivor" means a survivor, as defined
15    in subsection (q), whose annuity is paid under Article 15  of
16    the Illinois Pension Code and is based on the death of (i) an
17    employee  whose  death occurs on or after January 1, 1998, or
18    (ii) a new SURS annuitant as defined in subsection (b-6).
19        (q-7)  "New TRS State  survivor"  means  a  survivor,  as
20    defined  in  subsection  (q),  whose  annuity  is  paid under
21    Article 16 of the Illinois Pension Code and is based  on  the
22    death  of  (i)  an  employee  who  is a teacher as defined in
23    paragraph (2), (3), or (5) of Section 16-106 of that Code and
24    whose death occurs on or after July 1, 1998, or  (ii)  a  new
25    TRS State annuitant as defined in subsection (b-7).
26        (r)  "Medical   services"  means  the  services  provided
27    within the scope of their licenses by  practitioners  in  all
28    categories licensed under the Medical Practice Act of 1987.
29        (s)  "Unit   of   local  government"  means  any  county,
30    municipality,  township,   school   district   (including   a
31    combination  of  school districts under the Intergovernmental
32    Cooperation Act), special district or other unit,  designated
33    as a unit of local government by law, which exercises limited
34    governmental   powers   or   powers  in  respect  to  limited
 
                            -9-      LRB093 14119 AMC 19588 b
 1    governmental subjects, any not-for-profit association with  a
 2    membership  that  primarily  includes  townships and township
 3    officials, that has duties that include provision of research
 4    service, dissemination of information, and other acts for the
 5    purpose of improving township government, and that is  funded
 6    wholly  or  partly  in  accordance  with Section 85-15 of the
 7    Township Code; any not-for-profit corporation or association,
 8    with a membership  consisting  primarily  of  municipalities,
 9    that  operates its own utility system, and provides research,
10    training, dissemination of  information,  or  other  acts  to
11    promote  cooperation  between  and  among municipalities that
12    provide utility services and for the advancement of the goals
13    and  purposes  of  its  membership;  the  Southern   Illinois
14    Collegiate  Common  Market,  which  is a consortium of higher
15    education institutions in Southern Illinois; and the Illinois
16    Association of Park Districts.  "Qualified local  government"
17    means a unit of local government approved by the Director and
18    participating  in  a  program created under subsection (i) of
19    Section 10 of this Act.
20        (t)  "Qualified  rehabilitation   facility"   means   any
21    not-for-profit   organization   that  is  accredited  by  the
22    Commission on Accreditation of Rehabilitation  Facilities  or
23    certified  by  the Department of Human Services (as successor
24    to  the  Department  of  Mental  Health   and   Developmental
25    Disabilities)   to   provide   services   to   persons   with
26    disabilities  and  which  receives  funds  from  the State of
27    Illinois  for  providing  those  services,  approved  by  the
28    Director  and  participating  in  a  program  created   under
29    subsection (j) of Section 10 of this Act.
30        (u)  "Qualified  domestic  violence  shelter  or service"
31    means any Illinois domestic violence shelter or  service  and
32    its  administrative offices funded by the Department of Human
33    Services (as successor to the Illinois Department  of  Public
34    Aid), approved by the Director and participating in a program
 
                            -10-     LRB093 14119 AMC 19588 b
 1    created under subsection (k) of Section 10.
 2        (v)  "TRS benefit recipient" means a person who:
 3             (1)  is  not  a "member" as defined in this Section;
 4        and
 5             (2)  is receiving a monthly  benefit  or  retirement
 6        annuity  under  Article  16 of the Illinois Pension Code;
 7        and
 8             (3)  either (i) has at least 8 years  of  creditable
 9        service under Article 16 of the Illinois Pension Code, or
10        (ii) was enrolled in the health insurance program offered
11        under  that  Article  on January 1, 1996, or (iii) is the
12        survivor of a benefit recipient who had at least 8  years
13        of  creditable  service  under Article 16 of the Illinois
14        Pension Code or was  enrolled  in  the  health  insurance
15        program  offered under that Article on the effective date
16        of this amendatory Act of 1995, or (iv) is a recipient or
17        survivor of a recipient of  a  disability  benefit  under
18        Article 16 of the Illinois Pension Code.
19        (w)  "TRS dependent beneficiary" means a person who:
20             (1)  is  not a "member" or "dependent" as defined in
21        this Section; and
22             (2)  is a TRS benefit recipient's: (A)  spouse,  (B)
23        dependent parent who is receiving at least half of his or
24        her  support  from  the  TRS  benefit  recipient,  or (C)
25        unmarried natural or adopted child who is (i)  under  age
26        19,  or  (ii)  enrolled  as  a  full-time  student  in an
27        accredited school, financially  dependent  upon  the  TRS
28        benefit  recipient, eligible to be claimed as a dependent
29        for income tax purposes, and either is under  age  24  or
30        was,  on  January  1,  1996, participating as a dependent
31        beneficiary in the health insurance program offered under
32        Article 16 of the Illinois Pension Code, or (iii) age  19
33        or over who is mentally or physically handicapped.
34        (x)  "Military  leave  with  pay  and benefits" refers to
 
                            -11-     LRB093 14119 AMC 19588 b
 1    individuals in basic training for reserves,  special/advanced
 2    training,  annual  training, emergency call up, or activation
 3    by the President of the United States with approved  pay  and
 4    benefits.
 5        (y)  "Military  leave without pay and benefits" refers to
 6    individuals who enlist for active duty in a regular component
 7    of the U.S. Armed Forces  or  other  duty  not  specified  or
 8    authorized under military leave with pay and benefits.
 9        (z)  "Community college benefit recipient" means a person
10    who:
11             (1)  is  not  a "member" as defined in this Section;
12        and
13             (2)  is receiving a monthly  survivor's  annuity  or
14        retirement  annuity  under  Article  15  of  the Illinois
15        Pension Code; and
16             (3)  either  (i)  was  a  full-time  employee  of  a
17        community college district or an association of community
18        college boards created under the Public Community College
19        Act (other than an employee  whose  last  employer  under
20        Article  15  of the Illinois Pension Code was a community
21        college district subject to Article  VII  of  the  Public
22        Community College Act) and was eligible to participate in
23        a  group  health  benefit  plan as an employee during the
24        time of employment  with  a  community  college  district
25        (other  than  a  community  college  district  subject to
26        Article VII of the Public Community College  Act)  or  an
27        association  of  community college boards, or (ii) is the
28        survivor of a person described in item (i).
29        (aa)  "Community college dependent beneficiary"  means  a
30    person who:
31             (1)  is  not a "member" or "dependent" as defined in
32        this Section; and
33             (2)  is a community college benefit recipient's: (A)
34        spouse, (B) dependent parent who is  receiving  at  least
 
                            -12-     LRB093 14119 AMC 19588 b
 1        half  of  his  or  her support from the community college
 2        benefit recipient, or (C) unmarried  natural  or  adopted
 3        child  who  is  (i)  under  age 19, or (ii) enrolled as a
 4        full-time student in an  accredited  school,  financially
 5        dependent  upon  the community college benefit recipient,
 6        eligible to be claimed as  a  dependent  for  income  tax
 7        purposes  and  under  age 23, or (iii) age 19 or over and
 8        mentally or physically handicapped.
 9    (Source: P.A.  92-16,  eff.  6-28-01;  92-186,  eff.  1-1-02;
10    92-204,  eff.  8-1-01;  92-651,  eff.  7-11-02;  93-205, eff.
11    1-1-04.)

12        Section  10.  The Illinois Pension  Code  is  amended  by
13    changing Section 15-106 as follows:

14        (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
15        Sec.  15-106.  Employer.   "Employer":  The University of
16    Illinois,  Southern  Illinois   University,   Chicago   State
17    University,  Eastern  Illinois  University,  Governors  State
18    University,  Illinois State University, Northeastern Illinois
19    University, Northern Illinois  University,  Western  Illinois
20    University, the State Board of Higher Education, the Illinois
21    Mathematics  and Science Academy, the State Geological Survey
22    Division of the Department of Natural  Resources,  the  State
23    Natural  History Survey Division of the Department of Natural
24    Resources, the State Water Survey Division of the  Department
25    of  Natural  Resources,  the  Waste  Management  and Research
26    Center of the Department of Natural Resources, the University
27    Civil Service Merit Board, the Board of Trustees of the State
28    Universities  Retirement  System,  the   Illinois   Community
29    College  Board,  community college boards, any association of
30    community college boards organized under Section 3-55 of  the
31    Public  Community  College  Act,  the  Board  of  Accountancy
32    Examiners  established  under  the Illinois Public Accounting
 
                            -13-     LRB093 14119 AMC 19588 b
 1    Act,  and,  only  during  the  period  for   which   employer
 2    contributions  required  under  Section  15-155 are paid, the
 3    following  organizations:  the   alumni   associations,   the
 4    foundations   and   the   athletic   associations  which  are
 5    affiliated with the universities  and  colleges  included  in
 6    this  Section  as  employers.   A  department  as  defined in
 7    Section 14-103.04 is an employer for any person appointed  by
 8    the  Governor under the Civil Administrative Code of Illinois
 9    who is a participating employee as defined in Section 15-109.
10    The cities  of  Champaign  and  Urbana  shall  be  considered
11    employers, but only during the period for which contributions
12    are  required  to  be  made under subsection (b-1) of Section
13    15-155 and only with  respect  to  individuals  described  in
14    subsection (h) of Section 15-107.
15    (Source: P.A. 89-4, eff. 1-1-96; 89-445, eff. 2-7-96; 90-490,
16    eff.  8-17-97;  90-511,  eff.  8-22-97; 90-576, eff. 3-31-98;
17    90-655, eff. 7-30-98.)

18        Section  15.   The  Illinois  Public  Accounting  Act  is
19    amended by changing Sections 0.03, 2,  3,  20.1,  and  32  as
20    follows:

21        (225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
22        (Section scheduled to be repealed on January 1, 2014)
23        (Text of Section before amendment by P.A. 92-457)
24        Sec.  0.03.  Definitions. As used in this Act, unless the
25    context otherwise requires:
26        (a)  "Certified Public Accountant" means any  person  who
27    has   been   issued  a  certificate  as  a  certified  public
28    accountant from the University of Illinois.
29        (b)  "Public Accountant" means any person licensed  under
30    this Act.
31        (c)  "Department"  means  the  Department of Professional
32    Regulation.
 
                            -14-     LRB093 14119 AMC 19588 b
 1        (d)  "Director"  means  the  Director   of   Professional
 2    Regulation.
 3        (e)  "Committee"  means  the  Illinois Public Accountants
 4    Registration Committee appointed by the Director.
 5        (f)  "License", "licensee" and "licensure" refers to  the
 6    authorization to practice under the provisions of this Act.
 7        (g)  "Peer  review  program" means a study, appraisal, or
 8    review of one or more aspects of the professional work  of  a
 9    person   or  firm  certified  or  licensed  under  this  Act,
10    including quality review, peer review,  practice  monitoring,
11    quality    assurance,   and   similar   programs   undertaken
12    voluntarily or in response to membership  requirements  in  a
13    professional  organization,  or  as  a  prerequisite  to  the
14    providing   of   professional   services   under   government
15    requirements,  or  any  similar internal review or inspection
16    that is required by professional standards.
17        (h)  "Review  committee"  means  any  person  or  persons
18    conducting, reviewing, administering, or supervising  a  peer
19    review program.
20        (i)  "University" means the University of Illinois.
21        (j)  "Board"  means  the  Board  of Accountancy Examiners
22    established under Section 2.
23    (Source: P.A. 88-36.)

24        (Text of Section after amendment by P.A. 92-457)
25        Sec. 0.03.  Definitions. As used in this Act, unless  the
26    context otherwise requires:
27        (a)  "Certified  Public  Accountant" means any person who
28    has  been  issued  a  certificate  as  a   certified   public
29    accountant from the Board of Accountancy Examiners.
30        (b)  "Licensed  Certified  Public  Accountant"  means any
31    person licensed under this Act.
32        (c)  (Blank).
33        (d)  (Blank).
34        (e)  (Blank).
 
                            -15-     LRB093 14119 AMC 19588 b
 1        (f)  "License", "licensee" and "licensure" refers to  the
 2    authorization to practice under the provisions of this Act.
 3        (g)  "Peer  review  program" means a study, appraisal, or
 4    review of one or more aspects of the professional work  of  a
 5    person   or  firm  certified  or  licensed  under  this  Act,
 6    including quality review, peer review,  practice  monitoring,
 7    quality    assurance,   and   similar   programs   undertaken
 8    voluntarily or in response to membership  requirements  in  a
 9    professional  organization,  or  as  a  prerequisite  to  the
10    providing   of   professional   services   under   government
11    requirements,  or  any  similar internal review or inspection
12    that is required by professional standards.
13        (h)  "Review  committee"  means  any  person  or  persons
14    conducting, reviewing, administering, or supervising  a  peer
15    review program.
16        (i)  "University" means the University of Illinois.
17        (j)  "Board"  means  the  Board  of Accountancy Examiners
18    established under Section 2.
19    (Source: P.A. 92-457, eff. 7-1-04.)

20        (225 ILCS 450/2) (from Ch. 111, par. 5502)
21        (Section scheduled to be repealed on January 1, 2014)
22        (Text of Section before amendment by P.A. 92-457)
23        Sec. 2.  Examinations. The  University  shall  appoint  a
24    Board  of  Accountancy  Examiners  that  shall  determine the
25    qualifications of persons applying for certificates and shall
26    make rules for and arrange for the  conduct  of  examinations
27    for determining the qualifications.
28        The  Board shall consist of 9 members examiners, at least
29    7 of whom shall be certified public accountants in this State
30    who have been residents of this State for at  least  5  years
31    immediately preceding their appointment.  One shall be either
32    an  accountant  of  the grade herein described or an attorney
33    licensed and residing in  this  State  and  one  shall  be  a
 
                            -16-     LRB093 14119 AMC 19588 b
 1    certified  public  accountant  who  is  an  active or retired
 2    educator residing in this State.  The term of office of  each
 3    member  examiner  shall  be  3  years,  except  that upon the
 4    enactment of this  amendatory  Act  of  1993,  those  members
 5    currently  serving  on  the Board shall continue to serve the
 6    duration of their terms, one additional member examiner shall
 7    be appointed for a term  of  one  year  and,  one  additional
 8    member  examiner  for  a  term  of  2 years, and 2 additional
 9    examiners for a term of 3 years.  As the term of each  member
10    examiner  expires, the appointment shall be filled for a term
11    of 3 years from the date of expiration.  Any Board member who
12    has served as a member for 6 consecutive years shall  not  be
13    eligible for reappointment until 2 years after the end of the
14    term in which the sixth consecutive year of service occurred.
15        The  Board  shall have an audit of its books and accounts
16    made at least once a year  by  a  licensed  certified  public
17    accountant.   The  cost  of  the audit shall be considered an
18    expense of the Board.  A copy of the  audit  shall  be  filed
19    with the Auditor General.
20        Information   regarding   educational  requirements,  the
21    application process,  the  examination,  and  fees  shall  be
22    available  on the the Board's Internet web site as well as in
23    printed documents available from the  Board's  office.    The
24    time   and   place  of  holding  the  examinations  shall  be
25    determined by the Board and shall be duly advertised  by  the
26    Board.
27        The  examination  shall test the applicant's knowledge of
28    accounting, auditing, and other related subjects, if any,  as
29    the  Board  may deem advisable.  Prior to implementation of a
30    computer-based examination, a candidate must be  examined  in
31    all  subjects  except that a candidate who has passed in 2 or
32    more subjects and  who  attained  a  minimum  grade  in  each
33    subject  failed  as  may  be established by Board regulations
34    shall have the right  to  be  re-examined  in  the  remaining
 
                            -17-     LRB093 14119 AMC 19588 b
 1    subjects   at   one   or   more  of  the  next  6  succeeding
 2    examinations.  Upon  implementation   of   a   computer-based
 3    examination,  a  candidate  shall  be  required  to  pass all
 4    sections of  the  examination  in  order  to  qualify  for  a
 5    certificate.  A candidate may take the required test sections
 6    individually  and in any order, as long as the examination is
 7    taken within a timeframe established by Board rule.
 8        The Board may in certain cases waive or defer any of  the
 9    requirements  of  this Section regarding the circumstances in
10    which the various Sections of the examination must be  passed
11    upon  a  showing that, by reasons of circumstances beyond the
12    applicant's control, the applicant was  unable  to  meet  the
13    requirement.
14        Applicants may also be required to pass an examination on
15    the  rules  of  professional  conduct, as determined by Board
16    rule to be appropriate.
17        The examinations shall be given at least twice a year.
18        Any application, document or other information  filed  by
19    or  concerning  an applicant and any examination grades of an
20    applicant shall be  deemed  confidential  and  shall  not  be
21    disclosed  to  anyone without the prior written permission of
22    the applicant, except that it is hereby deemed in the  public
23    interest  that the names and addresses only of all applicants
24    shall  be  a  public  record  and  be  released   as   public
25    information.   Nothing  herein  shall  prevent the Board from
26    making public announcement of the names of persons  receiving
27    certificates under this Act.
28        The  Board shall adopt all necessary and reasonable rules
29    and regulations, employ staff, enter into contracts, and take
30    such other actions as may  be  necessary  for  the  effective
31    administration  of  the  Sections of this Act for which it is
32    charged with administering.  Without limiting the  foregoing,
33    the Board shall adopt and prescribe rules and regulations for
34    a  fair  and  wholly  and impartial method of determining the
 
                            -18-     LRB093 14119 AMC 19588 b
 1    qualifications of applicants for examination and for  a  fair
 2    and  wholly  and  impartial  method of examination of persons
 3    under  Section  2  and  may  establish  rules  for   subjects
 4    conditioned  and  for  the  transfer  of  credits  from other
 5    jurisdictions with respect to subjects passed.
 6    (Source: P.A. 88-36.)

 7        (Text of Section after amendment by P.A. 92-457)
 8        Sec. 2.  Examinations. The Governor shall appoint a Board
 9    of   Accountancy   Examiners   that   shall   determine   the
10    qualifications of persons applying for certificates and shall
11    make rules for and arrange for the  conduct  of  examinations
12    for  determining  the qualifications. The Board shall consist
13    of not less than 9 nor more than  11  members  examiners,  as
14    determined  by  Board  rule,  including 2 public members. The
15    remainder shall be certified public accountants in this State
16    who have been residents of this State for at  least  5  years
17    immediately  preceding  their  appointment,  except  that one
18    shall be either a certified public accountant  of  the  grade
19    herein described or an attorney licensed and residing in this
20    State  and  one shall be a certified public accountant who is
21    an active or retired educator residing in  this  State.   The
22    term  of  office  of  each  member examiner shall be 3 years,
23    except that upon the enactment of this amendatory Act of  the
24    92nd General Assembly, those members currently serving on the
25    Board  shall  continue  to serve the duration of their terms,
26    one additional member examiner shall be appointed for a  term
27    of one year and, one additional member examiner for a term of
28    2  years,  and any additional examiners for terms of 3 years.
29    As the term of each member examiner expires, the  appointment
30    shall  be  filled  for  a  term  of  3 years from the date of
31    expiration.  Any Board member who has served as a member  for
32    6  consecutive  years shall not be eligible for reappointment
33    until 2 years after the end of the term in  which  the  sixth
34    consecutive  year of service occurred, except that members of
 
                            -19-     LRB093 14119 AMC 19588 b
 1    the Board serving on the effective date of this Section shall
 2    be eligible for appointment to one  additional  3-year  term.
 3    Where  the  expiration  of  any member's term shall result in
 4    less than 9 11 members then serving on the Board, the  member
 5    shall  continue  to  serve  until  his  or  her  successor is
 6    appointed and has qualified. The Governor may  terminate  the
 7    term of any member of the Board at any time for cause.
 8        The  Board  shall have an audit of its books and accounts
 9    made at least once a year  by  a  licensed  certified  public
10    accountant.   The  cost  of  the audit shall be considered an
11    expense of the Board.  A copy of the  audit  shall  be  filed
12    with the Auditor General.
13        Information   regarding   educational  requirements,  the
14    application process,  the  examination,  and  fees  shall  be
15    available  on  the  Board's  Internet  Web site as well as in
16    printed documents available from the Board's office. The time
17    and place of holding the examinations shall be determined  by
18    the Board and shall be duly advertised by the Board.
19        The  examination  shall test the applicant's knowledge of
20    accounting, auditing, and other related subjects, if any,  as
21    the  Board  may deem advisable.  Prior to implementation of a
22    computer-based examination, a candidate must be  examined  in
23    all  subjects  except that a candidate who has passed in 2 or
24    more subjects and  who  attained  a  minimum  grade  in  each
25    subject  failed  as  may  be established by Board regulations
26    shall have the right  to  be  re-examined  in  the  remaining
27    subjects   at   one   or   more  of  the  next  6  succeeding
28    examinations.  Upon  implementation   of   a   computer-based
29    examination,  a  candidate  shall  be  required  to  pass all
30    sections of  the  examination  in  order  to  qualify  for  a
31    certificate.  A candidate may take the required test sections
32    individually  and in any order, as long as the examination is
33    taken within a timeframe established by Board rule.
34        The Board may in certain cases waive or defer any of  the
 
                            -20-     LRB093 14119 AMC 19588 b
 1    requirements  of  this Section regarding the circumstances in
 2    which the various Sections of the examination must be  passed
 3    upon  a  showing that, by reasons of circumstances beyond the
 4    applicant's control, the applicant was  unable  to  meet  the
 5    requirement.
 6        Applicants may also be required to pass an examination on
 7    the  rules  of  professional  conduct, as determined by Board
 8    rule to be appropriate.
 9        The examinations shall be given at least twice a year.
10        Any application, document or other information  filed  by
11    or  concerning  an applicant and any examination grades of an
12    applicant shall be  deemed  confidential  and  shall  not  be
13    disclosed  to  anyone without the prior written permission of
14    the applicant, except that it is hereby deemed in the  public
15    interest  that the names and addresses only of all applicants
16    shall  be  a  public  record  and  be  released   as   public
17    information.   Nothing  herein  shall  prevent the Board from
18    making public announcement of the names of persons  receiving
19    certificates under this Act.
20        The  Board shall adopt all necessary and reasonable rules
21    and regulations, employ staff, enter into contracts, and take
22    such other actions as may  be  necessary  for  the  effective
23    administration  of this Act.  Without limiting the foregoing,
24    the Board shall adopt and prescribe rules and regulations for
25    a fair and wholly and impartial  method  of  determining  the
26    qualifications  of  applicants for examination and for a fair
27    and wholly and impartial method  of  examination  of  persons
28    under   Section  2  and  may  establish  rules  for  subjects
29    conditioned and  for  the  transfer  of  credits  from  other
30    jurisdictions with respect to subjects passed.
31    (Source: P.A. 92-457, eff. 7-1-04.)

32        (225 ILCS 450/3) (from Ch. 111, par. 5504)
33        (Section scheduled to be repealed on January 1, 2014)
 
                            -21-     LRB093 14119 AMC 19588 b
 1        (Text of Section before amendment by P.A. 92-457)
 2        Sec.  3.  Qualifications of applicants. To be admitted to
 3    take the examination given before January 1,  2001,  for  the
 4    purpose  of  determining the qualifications of applicants for
 5    certificates as certified public accountants under this  Act,
 6    the  applicants  shall  be  required  to present proof of the
 7    successful completion of 120 college or  university  semester
 8    hours  of  study or their equivalent from a school or schools
 9    acceptable to the Board. Of the 120 semester hours, at  least
10    27  semester  hours  shall  be  in  the  study of accounting,
11    auditing and business law, provided that of the 27 hours  not
12    more  than 6 shall be in business law. To be admitted to take
13    the examination after the  year  2000,  for  the  purpose  of
14    determining the qualifications of applicants for certificates
15    as   certified   public   accountants  under  this  Act,  the
16    applicants  shall  be  required  to  present  proof  of   the
17    successful  completion  of 150 college or university semester
18    hours of study or  other  credit-hour  their  equivalent,  to
19    include  a  baccalaureate  or  higher  degree  conferred by a
20    college or university acceptable to the Board of  Accountancy
21    Examiners,  the  total  educational  program  to  include  an
22    accounting concentration or equivalent as determined by Board
23    rules  to  be appropriate. In adopting those rules, the Board
24    shall consider, among other things, any  impediments  to  the
25    interstate practice of public accounting that may result from
26    differences in the requirements in other states.
27        Candidates  who  have taken the examination at least once
28    before January 1, 2001, may take the  examination  under  the
29    qualifications   in   effect   when   they   first  took  the
30    examination.
31    (Source: P.A. 87-726; 88-36.)

32        (Text of Section after amendment by P.A. 92-457)
33        Sec. 3. Qualifications of applicants. To be  admitted  to
34    take  the examination after the year 2000, for the purpose of
 
                            -22-     LRB093 14119 AMC 19588 b
 1    determining the qualifications of applicants for certificates
 2    as  certified  public  accountants  under   this   Act,   the
 3    applicants   shall  be  required  to  present  proof  of  the
 4    successful completion of 150 college or  university  semester
 5    hours  of  study  or  other  credit-hour their equivalent, to
 6    include a baccalaureate  or  higher  degree  conferred  by  a
 7    college  or university acceptable to the Board of Accountancy
 8    Examiners,  the  total  educational  program  to  include  an
 9    accounting concentration or equivalent as determined by Board
10    rules to be appropriate. In adopting those rules,  the  Board
11    shall  consider,  among  other things, any impediments to the
12    interstate practice of public accounting that may result from
13    differences in the requirements in other states.
14        Candidates who have taken the examination at  least  once
15    before  January  1,  2001, may take the examination under the
16    qualifications  in  effect   when   they   first   took   the
17    examination.
18    (Source: P.A. 92-457, eff. 7-1-04.)

19        (225 ILCS 450/32) (from Ch. 111, par. 5537)
20        (Section scheduled to be repealed on January 1, 2014)
21        Sec.  32.   (a)  This  subsection  (a) applies only until
22    July 1, 2004.
23        All moneys received by  the  Department  of  Professional
24    Regulation  under  this  Act  shall  be  deposited  into  the
25    Registered  Certified  Public Accountants' Administration and
26    Disciplinary Fund, which is hereby created as a special  fund
27    in  the  State  Treasury.   The funds in the account shall be
28    used  by  the  Department  or  the  Board,  as  appropriated,
29    exclusively for expenses of the  Department  of  Professional
30    Regulation,  the  Public Accountants' Registration Committee,
31    or the Board in the administration of this Act.
32        Moneys in the Registered  Certified  Public  Accountants'
33    Administration  and  Disciplinary  Fund  may  be invested and
 
                            -23-     LRB093 14119 AMC 19588 b
 1    reinvested, with all earnings received from  the  investments
 2    to   be   deposited  into  the  Registered  Certified  Public
 3    Accountants' Administration and Disciplinary Fund.
 4        Moneys from the Fund may also  be  used  for  direct  and
 5    allocable  indirect  costs  related to the public purposes of
 6    the Department  of  Professional  Regulation  or  the  Board.
 7    Moneys  in  the  Fund  may  be transferred to the Professions
 8    Indirect Cost Fund as authorized by Section 2105-300  of  the
 9    Department   of   Professional   Regulation   Law   (20  ILCS
10    2105/2105-300).
11        (b)  This subsection (b) applies beginning July 1, 2004.
12        The Board shall establish and maintain a fund called  the
13    Examination  Fund,  which shall consist of and in which there
14    shall be deposited (i) fees received or charges made  by  the
15    Board  for  the  CPA  or  other  examinations  and  (ii) fees
16    received or  charges  made  by  the  Board  relating  to  the
17    issuance  of  CPA  certificates.  Any  money available in the
18    Examination Fund may be used for the  payment  of  the  costs
19    related  to the examinations offered pursuant to this Act and
20    to  the  issuance  of  certificates   as   Certified   Public
21    Accountants.  Any  money  determined  by  the  Board to be in
22    excess of the amount determined to be needed for  the  future
23    costs  of  the examinations may be transferred to the General
24    Accounting Fund.
25        The Board shall establish and maintain a fund called  the
26    General  Accounting Fund, which shall consist of and in which
27    there shall be deposited (i) fees received or charges made by
28    the Board for issuing, renewing, disciplining,  or  restoring
29    licenses,  (ii)  fees  received  or charges made by the Board
30    relating  to  the  registration   of   continuing   education
31    sponsors,  and  (iii) any money transferred to from any other
32    fund or made available by the State for the  purpose  of  the
33    General  Accounting Fund or for the operating expenses of the
34    Board. Any money available in the General Fund  may  be  used
 
                            -24-     LRB093 14119 AMC 19588 b
 1    for the payment of the expenses of the Board other than those
 2    paid from the Examination Fund.
 3        No amount may be expended for the Board's expenses in any
 4    year  out  of the General Accounting Fund or Examination Fund
 5    or from any account in those funds in excess  of  the  amount
 6    provided  for  the  Board's  operating expenses by the annual
 7    budget for that year or any amendment of the annual budget in
 8    effect  at  the  time  of  the  payment  or  expenditure  for
 9    operating expenses.
10        The Board may establish any accounts in  the  Examination
11    Fund  or  the  General  Accounting  Fund  that  are,  in  its
12    discretion,  necessary,  desirable,  or convenient to further
13    the accomplishments of the Board under this Act.  All  moneys
14    received  by the Board under this Act shall be deposited into
15    the Registered Certified Public  Accountants'  Administration
16    and  Disciplinary Fund, a special fund in the State treasury.
17    The moneys in the  Fund  shall  be  used  by  the  Board,  as
18    appropriated,  exclusively  for expenses of the Department of
19    Professional Regulation and the Board in  the  administration
20    of this Act.
21        Moneys  in  the  Registered Certified Public Accountants'
22    Administration and Disciplinary  Fund  may  be  invested  and
23    reinvested,  with  all earnings received from the investments
24    to  be  deposited  into  the  Registered   Certified   Public
25    Accountants' Administration and Disciplinary Fund.
26    (Source: P.A. 91-239, eff. 1-1-00; 92-457, eff. 8-21-01.)

27        Section  95.   No  acceleration or delay.  Where this Act
28    makes changes in a statute that is represented in this Act by
29    text that is not yet or no longer in effect (for  example,  a
30    Section  represented  by  multiple versions), the use of that
31    text does not accelerate or delay the taking  effect  of  (i)
32    the  changes made by this Act or (ii) provisions derived from
33    any other Public Act.
 
                            -25-     LRB093 14119 AMC 19588 b
 1        Section 97.  Severability.  The provisions  of  this  Act
 2    are severable under Section 1.31 of the Statute on Statutes.

 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.