SB2108ham001 93RD GENERAL ASSEMBLY

Registration and Regulation Committee

Adopted in House Comm. on May 26, 2004

09300SB2108ham001 LRB093 14116 AMC 51473 a

AMENDMENT TO SENATE BILL 2108

AMENDMENT NO. ______. Amend Senate Bill 2108 by replacing everything after the enacting clause with the following:

4		"Section 5. The Illinois Public Accounting Act is amended
5		by changing Sections 0.03, 1, 2, 3, 4, 5, 5.1, 6, 7, 8, 9, 9.01,
6		9.02, 9.1. 9.2, 11, 13, 14, 14.1, 14.2, 14.3, 16, 17, 17.1,
7		17.2, 19, 20.01, 20.1, 20.2, 20.3, 20.4, 20.5, 20.6, 21, 26,
8		28, 30, and 32 and by adding Sections 2.05, 6.1, 30.4, 30.5,
9		and 30.6 as follows:
10		(225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
11		(Section scheduled to be repealed on January 1, 2014)
12		(Text of Section after amendment by P.A. 92-457)
13		Sec. 0.03. Definitions. As used in this Act, unless the
14		context otherwise requires:
15		(a) "Registered Certified Public Accountant" means any
16		person who has been issued a registration under this Act as a
17		Registered Certified Public Accountant certificate as a
18		certified public accountant from the Board of Examiners.
19		(b) "Licensed Certified Public Accountant" means any
20		person licensed under this Act as a Licensed Certified Public
21		Accountant.
22		(c) "Committee" means the Public Accountant Registration
23		Committee appointed by the Director (Blank).
24		(d) "Department" means the Department of Professional

1		Regulation (Blank).
2		(e) "Director" means the Director of Professional
3		Regulation (Blank).
4		(f) "License", "licensee" and "licensure" refers to the
5		authorization to practice under the provisions of this Act.
6		(g) "Peer review program" means a study, appraisal, or
7		review of one or more aspects of the professional work of a
8		person or firm certified or licensed under this Act, including
9		quality review, peer review, practice monitoring, quality
10		assurance, and similar programs undertaken voluntarily or in
11		response to membership requirements in a professional
12		organization, or as a prerequisite to the providing of
13		professional services under government requirements, or any
14		similar internal review or inspection that is required by
15		professional standards.
16		(h) "Review committee" means any person or persons
17		conducting, reviewing, administering, or supervising a peer
18		review program.
19		(i) "University" means the University of Illinois.
20		(j) "Board" means the Board of Examiners established under
21		Section 2.
22		(k) "Registration", "registrant", and "registered" refer
23		to the authorization to hold oneself out as or use the title
24		"Registered Certified Public Accountant" or "Certified Public
25		Accountant", unless the context otherwise requires.
26		(Source: P.A. 92-457, eff. 7-1-04.)
27		(225 ILCS 450/1) (from Ch. 111, par. 5501)
28		(Section scheduled to be repealed on January 1, 2014)
29		(Text of Section after amendment by P.A. 92-457)
30		Sec. 1. No Any person, eighteen years of age or older, who
31		has received from the Board a certificate of his qualifications
32		as hereinafter provided, shall be styled and known as a
33		"Certified Public Accountant," and no other person shall hold

1		himself or herself out to the public in any manner by using the
2		assume such title "Certified Public Accountant" or use the
3		abbreviation "C.P.A." or "CPA" or any words or letters to
4		indicate that the person using the same is a certified public
5		accountant, unless he or she has been issued a license or
6		registration by the Department under this Act.
7		(Source: P.A. 92-457, eff. 7-1-04.)
8		(225 ILCS 450/2) (from Ch. 111, par. 5502)
9		(Section scheduled to be repealed on January 1, 2014)
10		(Text of Section after amendment by P.A. 92-457)
11		Sec. 2. Board of Examiners Examinations. The Governor shall
12		appoint a Board of Examiners that shall determine the
13		qualifications of persons applying for certificates and shall
14		make rules for and conduct examinations for determining the
15		qualifications. The Board shall consist of not less than 9
16		nor more than 11 examiners, as determined by Board rule,
17		including 2 public members. The remainder shall be certified
18		public accountants in this State who have been residents of
19		this State for at least 5 years immediately preceding their
20		appointment, except that one shall be either a certified public
21		accountant of the grade herein described or an attorney
22		licensed and residing in this State and one shall be a
23		certified public accountant who is an active or retired
24		educator residing in this State. The term of office of each
25		examiner shall be 3 years, except that upon the enactment of
26		this amendatory Act of the 93rd 92nd General Assembly, those
27		members currently serving on the Board shall continue to serve
28		the duration of their terms, one additional examiner shall be
29		appointed for a term of one year, and one additional examiner
30		for a term of 2 years, and any additional examiners for terms
31		of 3 years. As the term of each examiner expires, the
32		appointment shall be filled for a term of 3 years from the date
33		of expiration. Any Board member who has served as a member for

1		6 consecutive years shall not be eligible for reappointment
2		until 2 years after the end of the term in which the sixth
3		consecutive year of service occurred, except that members of
4		the Board serving on the effective date of this Section shall
5		be eligible for appointment to one additional 3-year term.
6		Where the expiration of any member's term shall result in less
7		than 11 members then serving on the Board, the member shall
8		continue to serve until his or her successor is appointed and
9		has qualified. No Board member shall serve more than 2 full
10		terms. Anyone appointed to the Board shall be ineligible to be
11		appointed to the Illinois Public Accountants Registration
12		Committee appointed by the Director. Appointments to fill
13		vacancies shall be made in the same manner as original
14		appointments for the unexpired portion of the vacated term. The
15		membership of the Board shall reasonably reflect
16		representation from the geographic areas in this State. The
17		members of the Board appointed by the Governor shall receive
18		reasonable compensation for their necessary, legitimate, and
19		authorized expenses in accordance with the Governor's Travel
20		Control Board rules and the Travel Regulation Rules. The
21		Governor may terminate the term of any member of the Board at
22		any time for cause.
23		Information regarding educational requirements, the
24		application process, the examination, and fees shall be
25		available on the Board's Internet web site as well as in
26		printed documents available from the Board's office.
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 all
31		subjects except that a candidate who has passed in 2 or more
32		subjects and who attained a minimum grade in each subject
33		failed as may be established by Board regulations shall have
34		the right to be re-examined in the remaining subjects at one or

1		more of the next 6 succeeding examinations. Upon implementation
2		of a computer-based examination, a candidate shall be required
3		to pass all sections of the examination in order to qualify for
4		a certificate. A candidate may take the required test sections
5		individually and in any order, as long as the examination is
6		taken within a timeframe established by Board rule.
7		The Board may in certain cases waive or defer any of the
8		requirements of this Section regarding the circumstances in
9		which the various Sections of the examination must be passed
10		upon a showing that, by reasons of circumstances beyond the
11		applicant's control, the applicant was unable to meet the
12		requirement.
13		Applicants may also be required to pass an examination on
14		the rules of professional conduct, as determined by Board rule
15		to be appropriate.
16		The examinations shall be given at least twice a year.
17		Any application, document or other information filed by or
18		concerning an applicant and any examination grades of an
19		applicant shall be deemed confidential and shall not be
20		disclosed to anyone without the prior written permission of the
21		applicant, except that it is hereby deemed in the public
22		interest that the names and addresses only of all applicants
23		shall be a public record and be released as public information.
24		Nothing herein shall prevent the Board from making public
25		announcement of the names of persons receiving certificates
26		under this Act.
27		The Board shall adopt all necessary and reasonable rules
28		and regulations for the effective administration of this Act.
29		Without limiting the foregoing, the Board shall adopt and
30		prescribe rules and regulations for a fair and wholly and
31		impartial method of determining the qualifications of
32		applicants for examination and for a fair and wholly and
33		impartial method of examination of persons under Section 2 and
34		may establish rules for subjects conditioned and for the

1		transfer of credits from other jurisdictions with respect to
2		subjects passed.
3		The Board shall make an annual report of its activities to
4		the Governor and the Director. This report shall include a
5		complete operating and financial statement covering its
6		operations during the year, the number of examinations given,
7		the pass/fail ratio for examinations, and any other information
8		deemed appropriate. The Board shall have an audit of its books
9		and accounts every 2 years by the Auditor General.
10		(Source: P.A. 92-457, eff. 7-1-04; 93-629, eff. 12-23-03.)
11		(225 ILCS 450/2.05 new)
12		(Section scheduled to be repealed on January 1, 2014)
13		Sec. 2.05. Public Accountant Registration Committee. The
14		Director shall appoint a Public Accountant Registration
15		Committee consisting of 7 persons, who shall be appointed by
16		and shall serve in an advisory capacity to the Director. Six
17		members must be licensed public accountants or Licensed
18		Certified Public Accountants in good standing and must be
19		actively engaged in the practice of public accounting in this
20		State and one member must be a member of the public who is not
21		licensed under this Act or a similar Act of another
22		jurisdiction and who has no connection with the accounting or
23		public accounting profession. Members shall serve 4-year terms
24		and until their successors are appointed and qualified. No
25		member shall be reappointed to the Committee for more than 2
26		terms. Appointments to fill vacancies shall be made in the same
27		manner as original appointments for the unexpired portion of
28		the vacated term. The membership of the Committee shall
29		reasonably reflect representation from the geographic areas in
30		this State. The members of the Committee appointed by the
31		Director shall receive reasonable compensation, as determined
32		by the Department, for the necessary, legitimate, and
33		authorized expenses approved by the Department. All expenses

1		shall be paid from the Registered Certified Public Accountants'
2		Administration and Disciplinary Fund. The Director may
3		terminate the appointment of any member for cause. The Director
4		shall consider the advice and recommendations of the Committee
5		on questions involving standards of professional conduct,
6		discipline, and qualifications of candidates and licensees
7		under this Act.
8		(225 ILCS 450/3) (from Ch. 111, par. 5504)
9		(Section scheduled to be repealed on January 1, 2014)
10		(Text of Section after amendment by P.A. 92-457)
11		Sec. 3. Qualifications of applicants. To be admitted to
12		take the examination after the year 2000, for the purpose of
13		determining the qualifications of applicants for certificates
14		as certified public accountants under this Act, the applicants
15		shall be required to present proof of the successful completion
16		of 150 college or university semester hours of study or their
17		quarter-hour or other academic credit unit equivalent, to
18		include a baccalaureate or higher degree conferred by a college
19		or university acceptable to the Board of Examiners, the total
20		educational program to include an accounting concentration or
21		equivalent as determined by Board rule Board rules to be
22		appropriate. In adopting those rules, the Board shall consider,
23		among other things, any impediments to the interstate practice
24		of public accounting that may result from differences in the
25		requirements in other states.
26		Candidates who have taken the examination at least once
27		before January 1, 2001, may take the examination under the
28		qualifications in effect when they first took the examination.
29		(Source: P.A. 92-457, eff. 7-1-04.)
30		(225 ILCS 450/4) (from Ch. 111, par. 5505)
31		(Section scheduled to be repealed on January 1, 2014)
32		Sec. 4. Transitional language.

1		(a) The provisions of this Act shall not be construed to
2		invalidate any certificates as certified public accountants
3		issued by the University under "An Act to regulate the
4		profession of public accountants", approved May 15, 1903, as
5		amended, or any certificates as Certified Public Accountants
6		issued by the University or the Board under Section 4 of "An
7		Act to regulate the practice of public accounting and to repeal
8		certain acts therein named", approved July 22, 1943, as
9		amended, which certificates shall be valid and in force as
10		though issued under the provisions of this Act.
11		(b) Before July 1, 2010, persons who have received a
12		Certified Public Accountant (CPA) Certificate issued by the
13		Board of Examiners or holding similar certifications from other
14		jurisdictions with equivalent educational requirements and
15		examination standards may apply to the Department on forms
16		supplied by the Department for and may be granted a
17		registration as a Registered Certified Public Accountant from
18		the Department upon payment of the required fee.
19		(c) Beginning with the 2006 renewal, the Department shall
20		cease to issue a license as a Public Accountant. Any person
21		holding a valid license as a Public Accountant prior to
22		September 30, 2006 who meets the conditions for renewal of a
23		license under this Act, shall be issued a license as a Licensed
24		Certified Public Accountant under this Act and shall be subject
25		to continued regulation by the Department under this Act. The
26		Department may adopt rules to implement this Section.
27		(d) The Department shall not issue any new registrations as
28		a Registered Certified Public Accountant after July 1, 2010.
29		After that date, any applicant for licensure under this Act
30		shall apply for a license as a Licensed Certified Public
31		Accountant and shall meet the requirements set forth in this
32		Act. Any person issued a Certified Public Accountant
33		certificate who has been issued a registration as a Registered
34		Certified Public Accountant may renew the registration under

1		the provisions of this Act and that person may continue to
2		renew or restore the registration during his or her lifetime,
3		subject only to the renewal or restoration requirements for the
4		registration under this Act. Such registration shall be subject
5		to the disciplinary provisions of this Act.
6		(e) On and after October 1, 2006, no person shall hold
7		himself or herself out to the public in any manner by using the
8		title "certified public accountant" or use the abbreviation
9		"C.P.A." or "CPA" or any words or letters to indicate that the
10		person using the same is a certified public accountant unless
11		he or she maintains a current registration or license issued by
12		the Department. It shall be a violation of this Act for an
13		individual to assume or use the title "certified public
14		accountant" or use the abbreviation "C.P.A." or "CPA" or any
15		words or letters to indicate that the person using the same is
16		a certified public accountant unless he or she maintains a
17		current registration or license issued by the Department.
18		(Source: P.A. 83-291.)
19		(225 ILCS 450/5) (from Ch. 111, par. 5506)
20		(Section scheduled to be repealed on January 1, 2014)
21		Sec. 5. Certification of out-of-State accountants.
22		(a) Upon review of an applicant's educational and
23		examination credentials by the Board of Examiners, the
24		Department The Board may issue a registration certificate as a
25		registered certified public accountant, without examination,
26		to any applicant who holds a valid unrevoked certificate as a
27		certified public accountant issued under the laws of any other
28		state or territory of the United States or the District of
29		Columbia, provided:
30		(1) that the state that issued the certificate has
31		certification requirements that have been determined by
32		the Board to be substantially equivalent to the
33		certification requirements of Illinois and grants similar

1		rights to those that Illinois grants to certificate
2		holders;
3		(2) that the state that issued the certificate has
4		certification requirements that the Board has determined
5		not to be substantially equivalent to the certification
6		requirements of Illinois or does not grant similar rights
7		to Illinois certificate holders, but the Board determines
8		that the individual applicant possesses personal
9		qualifications substantially equivalent to Illinois'
10		certification requirements; or
11		(3) that the applicant does not qualify under
12		subsections (1) or (2) above, but the following conditions
13		are met:
14		(A) the certificate was granted to the applicant on
15		the basis of the Uniform Certified Public Accountant
16		examination; and
17		(B) the educational qualifications of the
18		applicant for a certificate, at the time of the written
19		examination, were equivalent to the educational
20		qualifications then required of applicants for
21		admission to the Illinois examination for certified
22		public accountant or, the applicant has, after passing
23		the examination upon which his or her certificate was
24		based, not less than 5 years of experience in the
25		practice of public accounting within the 10 years
26		immediately preceding this application, otherwise
27		reasonably considered acceptable by the Board.
28		(b) In determining the substantial equivalency of the
29		requirements for certification or the rights granted to
30		certificate holders pursuant to this Section, the Department
31		Board may rely on the determinations of the National
32		Qualification Appraisal Service of the National Association of
33		State Boards of Accountancy or any other qualification
34		appraisal service, as it deems appropriate.

1		(Source: P.A. 91-508, eff. 8-13-99; 91-779, eff. 6-9-00.)
2		(225 ILCS 450/5.1)
3		(Section scheduled to be repealed on January 1, 2014)
4		Sec. 5.1. Foreign accountants. The Board shall issue a
5		certificate to a holder of a foreign designation, granted in a
6		foreign country entitling the holder thereof to engage in the
7		practice of public accounting, provided:
8		(a) The foreign authority that granted the designation
9		makes similar provision to allow a person who holds a valid
10		certificate issued by this State to obtain the foreign
11		authority's comparable designation; and
12		(b) The foreign designation (i) was duly issued by a
13		foreign authority that regulates the practice of public
14		accounting and the foreign designation has not expired or
15		been revoked or suspended; and (ii) was issued upon the
16		basis of educational and examination requirements
17		established by the foreign authority or by law; and
18		(c) The applicant (i) received the designation based on
19		educational and examination standards substantially
20		equivalent to those in effect in this State at the time the
21		foreign designation was granted; and (ii) passed a uniform
22		qualifying examination in national standards and an
23		examination on the laws, regulations, and code of ethical
24		conduct in effect in this State acceptable to the Board.
25		The Board shall be the sole and final judge of the
26		qualifications of applicants under this Section.
27		(Source: P.A. 88-36.)
28		(225 ILCS 450/6) (from Ch. 111, par. 5507)
29		(Section scheduled to be repealed on January 1, 2014)
30		(Text of Section after amendment by P.A. 92-457)
31		Sec. 6. Fees; pay of examiners; expenses. The Board shall
32		charge a fee in an amount at least sufficient to defray the

1		costs and expenses incident to the examination and issuance of
2		a certificate provided for in Section 6.1 3 and for the
3		issuance of a certificate provided for in Section 5. This fee
4		shall be payable by the applicant at the time of filing an
5		application.
6		The Board appointed by the Governor in accordance with the
7		provisions of Section 2 shall receive reasonable compensation,
8		to be set by Board rule, for the time actually expended in
9		pursuance of the duties imposed upon them by this Act, and they
10		shall be further entitled to their necessary traveling
11		expenses. All expenses provided for by this Act shall be paid
12		from the fees received under this Act.
13		From the fees collected, the Board shall pay all the
14		expenses incident to the examinations, the expenses of issuing
15		certificates, the traveling expenses of the examiners, and
16		their compensation while performing their duties, and other
17		necessary expenses in the administration of this Act.
18		(Source: P.A. 92-457, eff. 7-1-04.)
19		(225 ILCS 450/6.1 new)
20		(Section scheduled to be repealed on January 1, 2014)
21		Sec. 6.1. Examinations.
22		(a) The examination shall test the applicant's knowledge of
23		accounting, auditing, and other related subjects, if any, as
24		the Board may deem advisable. A candidate shall be required to
25		pass all sections of the examination in order to qualify for a
26		certificate. A candidate may take the required test sections
27		individually and in any order, as long as the examination is
28		taken within a timeframe established by Board rule.
29		(b) On and after January 1, 2005, applicants shall also be
30		required to pass an examination on the rules of professional
31		conduct, as determined by Board rule to be appropriate, before
32		they may be awarded a certificate as a Certified Public
33		Accountant.

1		(c) The Board may in certain cases waive or defer any of
2		the requirements of this Section regarding the circumstances in
3		which the various Sections of the examination must be passed
4		upon a showing that, by reasons of circumstances beyond the
5		applicant's control, the applicant was unable to meet the
6		requirement.
7		(d) Any application, document, or other information filed
8		by or concerning an applicant and any examination grades of an
9		applicant shall be deemed confidential and shall not be
10		disclosed to anyone without the prior written permission of the
11		applicant, except that the names and addresses only of all
12		applicants shall be a public record and be released as public
13		information. Nothing in this subsection shall prevent the Board
14		from making public announcement of the names of persons
15		receiving certificates under this Act.
16		(225 ILCS 450/7) (from Ch. 111, par. 5508)
17		(Section scheduled to be repealed on January 1, 2014)
18		(Text of Section after amendment by P.A. 92-457)
19		Sec. 7. Licensure. A holder of a certificate or
20		registration as a certified public accountant issued by the
21		Board or Department shall not be entitled to practice public
22		accounting, as defined in Section 8, in this State until the
23		person has been licensed as a licensed certified public
24		accountant by the Department Board.
25		The Department Board may refuse to issue or may suspend the
26		license of any person who fails to file a return, or to pay the
27		tax, penalty or interest shown in a filed return, or to pay any
28		final assessment of tax, penalty or interest, as required by
29		any tax Act administered by the Illinois Department of Revenue,
30		until such time as the requirements of any such tax Act are
31		satisfied.
32		(Source: P.A. 92-457, eff. 7-1-04.)

1		(225 ILCS 450/8) (from Ch. 111, par. 5509)
2		(Section scheduled to be repealed on January 1, 2014)
3		(Text of Section after amendment by P.A. 92-457)
4		Sec. 8. Practicing as a licensed public accountant or
5		licensed certified public accountant. Persons, either
6		individually, as members of a partnership or limited liability
7		company, or as officers of a corporation, who sign, affix or
8		associate their names or any trade or assumed names used by
9		them in a profession or business to any report expressing or
10		disclaiming an opinion on a financial statement based on an
11		audit or examination of that statement, or expressing assurance
12		on a financial statement, shall be deemed to be in practice as
13		licensed public accountants or licensed certified public
14		accountants within the meaning and intent of this Act.
15		(Source: P.A. 92-457, eff. 7-1-04.)
16		(225 ILCS 450/9) (from Ch. 111, par. 5510)
17		(Section scheduled to be repealed on January 1, 2014)
18		Sec. 9. No person shall, after the effective date of this
19		amendatory Act of the 93rd General Assembly, begin to practice
20		in this State or hold himself out as being able to practice
21		licensed certified public accounting in this State or hold
22		himself or herself out as being able to practice as a licensed
23		certified public accountant this profession, unless he or she
24		is licensed in accordance with the provisions of this Act. Any
25		person who is the holder of a license as a public accountant
26		heretofore issued, under any prior Act licensing or registering
27		public accountants in this State, valid on the effective date
28		of this amendatory Act shall be deemed to be licensed under
29		this Act shall be subject to the same rights and obligations as
30		persons originally licensed under this Act.
31		No person shall, after the effective date of this
32		amendatory Act of the 93rd General Assembly, begin to hold
33		himself or herself out as a registered certified public

1		accountant unless he or she is registered in accordance with
2		the provisions of this Act.
3		On and after October 1, 2006, no person may use or
4		incorporate the title "certified public accountant" without
5		holding a license as a licensed certified public accountant or
6		registered certified public accountant under this Act.
7		(Source: P.A. 83-291.)
8		(225 ILCS 450/9.01)
9		(Section scheduled to be repealed on January 1, 2014)
10		(Text of Section after amendment by P.A. 92-457)
11		Sec. 9.01. Unlicensed practice; violation; civil penalty.
12		(a) Any person who practices, offers to practice, attempts
13		to practice, or holds oneself out to practice as a licensed
14		certified public accountant without being licensed under this
15		Act shall, in addition to any other penalty provided by law,
16		pay a civil penalty to the Department Board in an amount not to
17		exceed $5,000 for each offense as determined by the Department
18		Board. The civil penalty shall be assessed by the Department
19		Board after a hearing is held in accordance with the provisions
20		set forth in this Act regarding the provision of a hearing for
21		the discipline of a licensee.
22		(b) The Department Board has the authority and power to
23		investigate any and all unlicensed activity.
24		(c) The civil penalty shall be paid within 60 days after
25		the effective date of the order imposing the civil penalty. The
26		order shall constitute a judgment and may be filed and
27		execution had thereon in the same manner as any judgment from
28		any court of record.
29		(Source: P.A. 92-457, eff. 7-1-04.)
30		(225 ILCS 450/9.02)
31		(Section scheduled to be repealed on January 1, 2014)
32		(This Section may contain text from a Public Act with a

1		delayed effective date)
2		Sec. 9.02. Unauthorized use of title; violation; civil
3		penalty.
4		(a) On and after October 1, 2006, any Any person who shall
5		assume the title "certified public accountant" or use the
6		abbreviation "CPA" or any words or letters to indicate that the
7		person using the same is a certified public accountant without
8		having been issued a registration as a registered certified
9		public accountant or a license as a licensed certified public
10		accountant certificate under the provisions of this Act shall,
11		in addition to any other penalty provided by law, pay a civil
12		penalty to the Department Board in an amount not to exceed
13		$5,000 for each offense as determined by the Department Board.
14		The civil penalty shall be assessed by the Department Board
15		after a hearing is held in accordance with the provisions set
16		forth in this Act regarding the provision of a hearing for the
17		discipline of a licensee.
18		(b) The Department Board has the authority and power to
19		investigate any and all alleged improper use of the certified
20		public accountant title or CPA designation.
21		(c) The civil penalty shall be paid within 60 days after
22		the effective date of the order imposing the civil penalty. The
23		order shall constitute a judgment and may be filed and
24		execution had thereon in the same manner as any judgment from
25		any court of record.
26		(Source: P.A. 92-457, eff. 7-1-04.)
27		(225 ILCS 450/9.1) (from Ch. 111, par. 5510.1)
28		(Section scheduled to be repealed on January 1, 2014)
29		Sec. 9.1. Temporary practice.
30		(a) An individual who has passed the Uniform CPA
31		Examination and who holds a valid, unrevoked license or permit
32		to practice as a public accountant from a state or United
33		States territory in which he or she resides or has his or her

1		principal place of business, and who does not reside or have
2		his or her principal place of business in this State, may
3		practice public accounting within this State without the need
4		to obtain a license under this Act. Such practice shall be
5		conducted in accordance with the relevant provisions of this
6		Act and rules and regulations adopted hereunder.
7		(b) A foreign accountant who holds a license, certificate,
8		or degree in a foreign country constituting a recognized
9		qualification for the practice of public accounting and who
10		does not reside or have an office in this State may temporarily
11		practice public accounting in this State or professional
12		business incident to his or her regular practice without
13		licensure under this Act provided the standards, including
14		examination, governing issuance of the foreign license,
15		certificate, or degree are substantially equivalent to those in
16		Illinois, and the foreign jurisdiction in question grants equal
17		recognition to Illinois accountants.
18		(c) Any person practicing pursuant to this Section shall
19		file a notice with the Department on forms prescribed by the
20		Department. The Department shall determine by rule the
21		information to be submitted. The Department may charge a
22		processing fee as determined by rule.
23		(Source: P.A. 91-508, eff. 8-13-99.)
24		(225 ILCS 450/9.2) (from Ch. 111, par. 5510.2)
25		(Section scheduled to be repealed on January 1, 2014)
26		(Text of Section after amendment by P.A. 92-457)
27		Sec. 9.2. Powers and duties of the Department Board.
28		(a) The Department Board shall exercise the powers and
29		duties prescribed by "The Civil Administrative Code of
30		Illinois" for the administration of licensing acts and shall
31		exercise such other powers and duties invested by this Act.
32		(b) The Director Board may promulgate rules consistent with
33		the provisions of this Act for the administration and

1		enforcement of the provisions of this Act for which the
2		Department is responsible thereof, and for the payment of fees
3		connected therewith and may prescribe forms which shall be
4		issued in connection therewith. The rules shall include
5		standards and criteria for licensure and professional conduct
6		and discipline.
7		(c) The Department may solicit the advice and expert
8		knowledge of the Committee or the Board on any matter relating
9		to the administration and enforcement of this Act.
10		(Source: P.A. 92-457, eff. 7-1-04.)
11		(225 ILCS 450/11) (from Ch. 111, par. 5512)
12		(Section scheduled to be repealed on January 1, 2014)
13		(Text of Section after amendment by P.A. 92-457)
14		Sec. 11. Exemption from Act. Nothing in this Act shall
15		prohibit any person who may be engaged by one or more persons,
16		partnerships or corporations, from keeping books, or from
17		making trial balances or statements, or, as an employee, from
18		making audits or preparing reports, provided that the person
19		does not indicate or in any manner imply that the trial
20		balances, statements, or reports have been prepared or examined
21		by a certified public accountant, a registered certified public
22		accountant, or a licensed certified public accountant or that
23		they represent the independent opinion of a certified public
24		accountant or a licensed certified public accountant. Nothing
25		in this Act shall prohibit any person from preparing tax and
26		information returns or from acting as representative or agent
27		at tax inquiries, examinations or proceedings, or from
28		preparing and installing accounting systems, or from reviewing
29		accounts and accounting methods for the purpose of determining
30		the efficiency of accounting methods or appliances, or from
31		studying matters of organization, provided that the person does
32		not indicate or in any manner imply that the reports have been
33		prepared by, or that the representation or accounting work has

1		been performed by a certified public accountant, a registered
2		certified public accountant, or a licensed certified public
3		accountant. Unlicensed accountants are not prohibited from
4		performing any services that they may have performed prior to
5		this Amendatory Act of 1983.
6		(Source: P.A. 92-457, eff. 7-1-04.)
7		(225 ILCS 450/13) (from Ch. 111, par. 5514)
8		(Section scheduled to be repealed on January 1, 2014)
9		(Text of Section after amendment by P.A. 92-457)
10		Sec. 13. Application for licensure. A person, partnership,
11		limited liability company, or corporation desiring to practice
12		public accounting in this State shall make application to the
13		Department Board for licensure as a licensed certified public
14		accountant and shall pay the fee required by rule Section 17.
15		Applicants have 3 years from the date of application to
16		complete the application process. If the process has not been
17		completed in 3 years, the application shall be denied, the fee
18		forfeited and the applicant must reapply and meet the
19		requirements in effect at the time of reapplication.
20		(Source: P.A. 92-457, eff. 7-1-04.)
21		(225 ILCS 450/14) (from Ch. 111, par. 5515)
22		(Section scheduled to be repealed on January 1, 2014)
23		(Text of Section after amendment by P.A. 92-457)
24		Sec. 14. Qualifications. The Department may Board shall
25		license as licensed certified public accountants the
26		following:
27		(a) All persons who have received certificates as certified
28		public accountants from the Board or who hereafter receive
29		registrations as registered certified public accountants from
30		the Department certificates as certified public accountants
31		from the Board, who have had at least one year of full-time
32		experience, or its equivalent, providing any type of service or

1		advice involving the use of accounting, attest, management
2		advisory, financial advisory, tax, or consulting skills, which
3		may be gained through employment in government, industry,
4		academia, or public practice.
5		If the applicant's certificate as a certified public
6		accountant from the Board or the applicant's registration as a
7		registered certified public accountant from the Department was
8		issued more than 4 years prior to the application for a an
9		internal license under this Section, the applicant shall submit
10		any evidence the Department Board may require showing the
11		applicant has completed not less than 90 hours of continuing
12		professional education acceptable to the Department Board
13		within the 3 years immediately preceding the date of
14		application.
15		(b) All partnerships, limited liability companies, or
16		corporations, or other entities engaged in the practice of
17		public accounting in this State and meeting the following
18		requirements:
19		(1) (Blank).
20		(2) A majority of the ownership of the firm, in terms
21		of financial interests and voting rights of all partners,
22		officers, shareholders, members, or managers, belongs to
23		persons licensed in some state, and the partners, officers,
24		shareholders, members, or managers whose principal place
25		of business is in this State and who practice public
26		accounting in this State, as defined in Section 8 of this
27		Act, hold a valid license issued by this State.
28		(3) It shall be lawful for a nonprofit cooperative
29		association engaged in rendering an auditing and
30		accounting service to its members only, to continue to
31		render that service provided that the rendering of auditing
32		and accounting service by the cooperative association
33		shall at all times be under the control and supervision of
34		licensed certified public accountants.

1		(4) The Department Board may adopt rules and
2		regulations as necessary to provide for the practice of
3		public accounting by business entities that may be
4		otherwise authorized by law to conduct business in
5		Illinois.
6		(Source: P.A. 91-508, eff. 8-13-99; 91-827, eff. 6-13-00;
7		92-457, eff. 7-1-04.)
8		(225 ILCS 450/14.1)
9		(Section scheduled to be repealed on January 1, 2014)
10		(Text of Section after amendment by P.A. 92-457)
11		Sec. 14.1. Foreign accountants. The Department Board shall
12		issue a license to a holder of a foreign designation, granted
13		in a foreign country entitling the holder thereof to engage in
14		the practice of public accounting, provided:
15		(a) The applicant is the holder of a certificate as a
16		certified public accountant from the Board or a registration as
17		a registered certified public accountant from the Department
18		issued under Section 2, 5, or 5.1 of this Act; and
19		(b) The foreign authority that granted the designation
20		makes similar provision to allow a person who holds a valid
21		license issued by this State to obtain a foreign authority's
22		comparable designation; and
23		(c) The foreign designation (i) was duly issued by a
24		foreign authority that regulates the practice of public
25		accounting and the foreign designation has not expired or been
26		revoked or suspended; (ii) entitles the holder to issue reports
27		upon financial statements; and (iii) was issued upon the basis
28		of educational, examination, and experience requirements
29		established by the foreign authority or by law; and
30		(d) The applicant (i) received the designation based on
31		standards substantially equivalent to those in effect in this
32		State at the time the foreign designation was granted; and (ii)
33		completed an experience requirement, substantially equivalent

1		to the requirement set out in Section 14, in the jurisdiction
2		that granted the foreign designation or has completed 5 years
3		of experience in the practice of public accounting in this
4		State, or meets equivalent requirements prescribed by the
5		Department Board by rule, within the 10 years immediately
6		preceding the application.
7		(e) Applicants have 3 years from the date of application to
8		complete the application process. If the process has not been
9		completed in 3 years, the application shall be denied, the fee
10		shall be forfeited, and the applicant must reapply and meet the
11		requirements in effect at the time of reapplication.
12		(Source: P.A. 92-457, eff. 7-1-04.)
13		(225 ILCS 450/14.2)
14		(Section scheduled to be repealed on January 1, 2014)
15		(Text of Section after amendment by P.A. 92-457)
16		Sec. 14.2. Licensure by endorsement.
17		(a) The Department Board shall issue a license as a
18		licensed certified public accountant to any applicant who holds
19		a certificate as a certified public accountant issued by the
20		Board of Examiners or similar certification from another
21		jurisdiction with equivalent educational requirements and
22		examination standards, applies to the Department on forms
23		supplied by the Department, and pays the required fee, and who
24		holds a valid unrevoked license or permit to practice as a
25		licensed certified public accountant issued under the laws of
26		any other state or territory of the United States or the
27		District of Columbia, provided:
28		(1) the individual applicant is determined by the
29		Department Board to possess personal qualifications
30		substantially equivalent to this State's current licensing
31		requirements;
32		(2) at the time the applicant received his or her
33		current valid and unrevoked license or permit, the

1		applicant possessed qualifications substantially
2		equivalent to the qualifications for licensure then in
3		effect in this State; or
4		(3) the applicant has, after passing the examination
5		upon which his or her license or other permit to practice
6		was based, not less than 4 years of experience in the
7		practice of public accounting within the 10 years
8		immediately before the application.
9		(b) In determining the substantial equivalency of any
10		state's requirements to Illinois' requirements, the Department
11		Board may rely on the determinations of the National
12		Qualification Appraisal Service of the National Association of
13		State Boards of Accountancy or such other qualification
14		appraisal service as it deems appropriate.
15		(c) Applicants have 3 years from the date of application to
16		complete the application process. If the process has not been
17		completed in 3 years, the application shall be denied, the fee
18		shall be forfeited, and the applicant must reapply and meet the
19		requirements in effect at the time of reapplication.
20		(Source: P.A. 91-508, eff. 8-13-99; 91-779, eff. 6-9-00;
21		92-457, eff. 7-1-04.)
22		(225 ILCS 450/14.3)
23		(Section scheduled to be repealed on January 1, 2014)
24		(Text of Section after amendment by P.A. 92-457)
25		Sec. 14.3. Additional requirements for firms. In addition
26		to the ownership requirements set forth in subsection (b) of
27		Section 14, all firms licensed under this Act shall meet the
28		following requirements:
29		(a) All owners of the firm, whether licensed or not, who
30		are not licensed shall be active participants in the firm or
31		its affiliated entities.
32		(b) An individual who supervises services for which a
33		license is required under Section 8 of this Act or who signs or

1		authorizes another to sign any report for which a license is
2		required under Section 8 of this Act shall hold a valid,
3		unrevoked Licensed Certified Public Accountant license from
4		this State or another state and shall comply with such
5		additional experience requirements as may be required by rule
6		of the Board.
7		(c) The firm shall require that all owners of the firm,
8		whether or not certified or licensed under this Act, comply
9		with rules promulgated under this Act.
10		(d) The firm shall designate to the Department Board in
11		writing an individual licensed under this Act who shall be
12		responsible for the proper registration of the firm.
13		(e) Applicants have 3 years from the date of application to
14		complete the application process. If the process has not been
15		completed in 3 years, the application shall be denied, the fee
16		shall be forfeited, and the applicant must reapply and meet the
17		requirements in effect at the time of reapplication.
18		(Source: P.A. 91-508, eff. 8-13-99; 92-457, eff. 7-1-04.)
19		(225 ILCS 450/16) (from Ch. 111, par. 5517)
20		(Section scheduled to be repealed on January 1, 2014)
21		(Text of Section after amendment by P.A. 92-457)
22		Sec. 16. Expiration and renewal of licenses; renewal of
23		registration; continuing education.
24		(a) The expiration date and renewal period for each license
25		issued under this Act shall be set by rule.
26		(b) Every holder of a license or registration under this
27		Act may renew such license or registration before the
28		expiration date upon payment of the required renewal fee as set
29		by rule.
30		(c) Every application for renewal of a license by a
31		licensed certified public accountant who has been licensed
32		under this Act for 3 years or more shall be accompanied or
33		supported by any evidence the Department shall prescribe, in

1		satisfaction of completing, each 3 years, not less than 120
2		hours of continuing professional education programs in
3		subjects given by continuing education sponsors registered by
4		the Department upon recommendation of the Committee. Of the 120
5		hours, not less than 4 hours shall be courses covering the
6		subject of professional ethics. All continuing education
7		sponsors applying to the Department for registration shall be
8		required to submit an initial nonrefundable application fee set
9		by Department rule. Each registered continuing education
10		sponsor shall be required to pay an annual renewal fee set by
11		Department rule. Publicly supported colleges, universities,
12		and governmental agencies located in Illinois are exempt from
13		payment of any fees required for continuing education sponsor
14		registration. Failure by a continuing education sponsor to be
15		licensed or pay the fees prescribed in this Act, or to comply
16		with the rules and regulations established by the Department
17		under this Section regarding requirements for continuing
18		education courses or sponsors, shall constitute grounds for
19		revocation or denial of renewal of the sponsor's registration.
20		(d) Licensed Certified Public Accountants are exempt from
21		the continuing professional education requirement for the
22		first renewal period following the original issuance of the
23		license.
24		Notwithstanding the provisions of this subsection (c), the
25		Department may accept courses and sponsors approved by other
26		states, by the American Institute of Certified Public
27		Accountants, by other state CPA societies, or by national
28		accrediting organizations such as the National Association of
29		State Boards of Accountancy.
30		Failure by an applicant for renewal of a license as a
31		licensed certified public accountant to furnish the evidence
32		shall constitute grounds for disciplinary action, unless the
33		Department in its discretion shall determine the failure to
34		have been due to reasonable cause. The Department, in its

1		discretion, may renew a license despite failure to furnish
2		evidence of satisfaction of requirements of continuing
3		education upon condition that the applicant follow a particular
4		program or schedule of continuing education. In issuing rules
5		and individual orders in respect of requirements of continuing
6		education, the Department in its discretion may, among other
7		things, use and rely upon guidelines and pronouncements of
8		recognized educational and professional associations; may
9		prescribe rules for the content, duration, and organization of
10		courses; shall take into account the accessibility to
11		applicants of such continuing education as it may require, and
12		any impediments to interstate practice of public accounting
13		that may result from differences in requirements in other
14		states; and may provide for relaxation or suspension of
15		requirements in regard to applicants who certify that they do
16		not intend to engage in the practice of public accounting, and
17		for instances of individual hardship.
18		The Department shall establish by rule a means for the
19		verification of completion of the continuing education
20		required by this Section. This verification may be accomplished
21		through audits of records maintained by licensees; by requiring
22		the filing of continuing education certificates with the
23		Department; or by other means established by the Department.
24		The Department may establish, by rule, guidelines for
25		acceptance of continuing education on behalf of licensed
26		certified public accountants taking continuing education
27		courses in other jurisdictions.
28		(b) Every application for renewal of a license by any
29		person who has been licensed under this Act for 3 years or more
30		shall be accompanied or supported by any evidence the Board
31		shall prescribe, in satisfaction of completing, each 3 years,
32		not less than 120 hours of qualifying continuing professional
33		education programs. Applications for renewal by any person who
34		has been licensed less than 3 years shall be accompanied or

1		supported by evidence of completion of 20 hours of qualifying
2		continuing professional education programs for each full 6
3		months since the date of licensure or last renewal. Qualifying
4		continuing education programs include those given by
5		continuing education sponsors registered with the Board, those
6		given by the American Institute of CPAs, the Illinois CPA
7		Foundation, and programs given by sponsors approved by national
8		accrediting organizations approved by the Board. All
9		continuing education sponsors applying to the Board for
10		registration shall be required to submit an initial
11		nonrefundable application fee set by Board rule. Each
12		registered continuing education sponsor shall be required to
13		pay an annual renewal fee set by Board rule. Publicly supported
14		colleges, universities, and governmental agencies located in
15		Illinois are exempt from payment of any fees required for
16		continuing education sponsor registration. Failure by a
17		continuing education sponsor to pay the fees prescribed in this
18		Act, or to comply with the rules and regulations established by
19		the Board under this Section regarding requirements for
20		continuing education courses or sponsors, shall constitute
21		grounds for revocation or denial of renewal of the sponsor's
22		registration. All other courses or programs may qualify upon
23		presentation by the licensee of evidence satisfactory to the
24		Board that the course or program meets all Board rules for
25		qualifying education programs.
26		Failure by an applicant for renewal of a license to furnish
27		the evidence shall constitute grounds for disciplinary action,
28		unless the Board in its discretion shall determine the failure
29		to have been due to reasonable cause. The Board, in its
30		discretion, may renew a license despite failure to furnish
31		evidence of satisfaction of requirements of continuing
32		education upon condition that the applicant follow a particular
33		program or schedule of continuing education. In issuing rules,
34		regulations, and individual orders in respect of requirements

1		of continuing education, the Board in its discretion may, among
2		other things, use and rely upon guidelines and pronouncements
3		of recognized educational and professional associations; may
4		prescribe rules for content, duration, and organization of
5		courses; shall take into account the accessibility to
6		applicants of continuing education as it may require, and any
7		impediments to interstate practice of public accounting that
8		may result from differences in requirements in other states;
9		and may provide for relaxation or suspension of requirements in
10		regard to applicants who certify that they do not intend to
11		engage in the practice of public accounting, and for instances
12		of individual hardship.
13		The Board shall establish by rule a means for the
14		verification of completion of the continuing education
15		required by this Section. This verification may be accomplished
16		through audits of records maintained by registrants; by
17		requiring the filing of continuing education certificates with
18		the Board; or by other means established by the Board.
19		The Board may establish, by rule, guidelines for acceptance
20		of continuing education on behalf of licensed certified public
21		accountants taking continuing education courses in other
22		jurisdictions.
23		(Source: P.A. 92-457, eff. 7-1-04.)
24		(225 ILCS 450/17) (from Ch. 111, par. 5518)
25		(Section scheduled to be repealed on January 1, 2014)
26		(Text of Section after amendment by P.A. 92-457)
27		Sec. 17. Fees; returned checks; fines. Each person,
28		partnership, limited liability company, and corporation, to
29		which a license or registration is issued, shall pay a fee to
30		be established by the Department Board which allows the
31		Department Board to pay all costs and expenses incident to the
32		administration of this Act. Interim licenses shall be at full
33		rates.

1		The Department Board, by rule, shall establish fees to be
2		paid for certification of records, and copies of this Act and
3		the rules issued for administration of this Act.
4		Any person who delivers a check or other payment to the
5		Department Board that is returned to the Department Board
6		unpaid by the financial institution upon which it is drawn
7		shall pay to the Department Board, in addition to the amount
8		already owed to the Department Board, a fine of $50 in an
9		amount to be established by Board rule. The fines imposed by
10		this Section are in addition to any other discipline provided
11		under this Act for unlicensed practice or practice on a
12		nonrenewed license or registration. The Department Board shall
13		notify the person that payment of fees and fines shall be paid
14		to the Department Board by certified check or money order
15		within 30 calendar days of the notification. If, after the
16		expiration of 30 days from the date of the notification, the
17		person has failed to submit the necessary remittance, the
18		Department Board shall automatically terminate the license or
19		registration certificate or deny the application, without
20		hearing. If, after termination or denial, the person seeks a
21		license or registration certificate, he or she shall apply to
22		the Department Board for restoration or issuance of the license
23		or registration certificate and pay all fees and fines due to
24		the Department Board. The Department Board may establish a fee
25		for the processing of an application for restoration of a
26		license or registration certificate to pay all expenses of
27		processing this application. The Department Board may waive the
28		fines due under this Section in individual cases where the
29		Department Board finds that the fines would be unreasonable or
30		unnecessarily burdensome.
31		(Source: P.A. 92-146, eff. 1-1-02; 92-457, eff. 7-1-04; 92-651,
32		eff. 7-11-02.)
33		(225 ILCS 450/17.1) (from Ch. 111, par. 5518.1)

1		(Section scheduled to be repealed on January 1, 2014)
2		(Text of Section after amendment by P.A. 92-457)
3		Sec. 17.1. Any registered certified public accountant who
4		has permitted his or her registration to expire or who has had
5		his or her registration on inactive status may have his or her
6		registration restored by making application to the Department
7		and filing proof acceptable to the Department as defined by
8		rule of his or her fitness to have his or her registration
9		restored, which may include sworn evidence certifying to active
10		practice in another jurisdiction satisfactory to the
11		Department and by paying the required restoration fee.
12		Any licensed certified public accountant who has permitted
13		his or her license to expire or who has had his or her license
14		on inactive status may have his or her license restored by
15		making application to the Department Board and filing proof
16		acceptable to the Department as defined by rule Board of his or
17		her fitness to have his or her license restored, including
18		sworn evidence certifying to active practice in another
19		jurisdiction satisfactory to the Department Board and by paying
20		the required restoration fee and by submitting proof of the
21		required continuing education.
22		If the licensed certified public accountant or registered
23		certified public accountant has not maintained an active
24		practice in another jurisdiction satisfactory to the
25		Department Board, the Department Board shall determine, by an
26		evaluation program established by rule, fitness to resume
27		active status and may require the applicant to complete a
28		period of supervised auditing experience.
29		However, any licensed certified public accountant or
30		registered certified public accountant whose license or
31		registration expired while he was (1) in Federal Service on
32		active duty with the Armed Forces of the United States, or the
33		State Militia called into service or training, or (2) in
34		training or education under the supervision of the United

1		States preliminary to induction into the military service, may
2		have his license or registration renewed reinstated or restored
3		without paying any lapsed renewal and restoration fees if
4		within 2 years after honorable termination of such service,
5		training or education except under conditions other than
6		honorable, he furnished the Department Board with satisfactory
7		evidence to the effect that he has been so engaged and that his
8		service, training or education has been so terminated.
9		(Source: P.A. 92-457, eff. 7-1-04.)
10		(225 ILCS 450/17.2) (from Ch. 111, par. 5518.2)
11		(Section scheduled to be repealed on January 1, 2014)
12		(Text of Section after amendment by P.A. 92-457)
13		Sec. 17.2. Inactive status. Any licensed certified public
14		accountant or Registered Certified Public Accountant who
15		notifies the Department Board in writing on forms prescribed by
16		the Department Board, may elect to place his license or
17		registration on an inactive status and shall, subject to rules
18		of the Department Board, be excused from payment of renewal
19		fees until he notifies the Department Board in writing of his
20		desire to resume active status.
21		Any licensed certified public accountant requesting
22		restoration from inactive status shall be required to pay the
23		current renewal fee, shall be required to submit proof of the
24		required continuing education, and shall be required to restore
25		his license, as provided in this Act.
26		Any Registered Certified Public Accountant requesting
27		restoration from inactive status shall be required to pay the
28		current renewal fee and shall be required to comply with any
29		requirements established by rule.
30		Any licensed certified public accountant whose license is
31		in an inactive status shall not practice public accounting in
32		this State of Illinois.
33		Any Registered Certified Public Accountant whose

1		registration is in an inactive status shall not in any manner
2		hold himself or herself out to the public as a C.P.A. or
3		R.C.P.A.
4		The Department Board may, in its discretion, license as a
5		licensed certified public accountant, on payment of the
6		required fee, an applicant who is a licensed certified public
7		accountant licensed under the laws of another jurisdiction if
8		the requirements for licensure of licensed certified public
9		accountants in the jurisdiction in which the applicant was
10		licensed were, at the date of his licensure, substantially
11		equivalent to the requirements in force in this State on that
12		date.
13		Applicants have 3 years from the date of application to
14		complete the application process. If the process has not been
15		completed in 3 years, the application shall be denied, the fee
16		forfeited and the applicant must reapply and meet the
17		requirements in effect at the time of reapplication.
18		(Source: P.A. 92-457, eff. 7-1-04.)
19		(225 ILCS 450/19) (from Ch. 111, par. 5520)
20		(Section scheduled to be repealed on January 1, 2014)
21		(Text of Section after amendment by P.A. 92-457)
22		Sec. 19. Hearings. The Committee established under the
23		provisions of Section 2.05 shall, upon designation by the
24		Director The Board, or a committee thereof, shall hear charges
25		which, if proved, would constitute grounds for disciplinary
26		action; shall hear applications for restoration of a license
27		and the issuance of a license or registration registration
28		cards as a licensed certified public accountant or registered
29		certified public accountant accountants of any person,
30		partnership, limited liability company, or corporation whose
31		license or registration has been suspended or revoked; and
32		shall report its findings and recommendations in connection
33		therewith to the Director Board, all as provided in Section

1		20.01.
2		The Department Board shall also have power to promulgate
3		and amend rules of professional conduct that shall apply to
4		persons registered certified or licensed under this Act.
5		(Source: P.A. 92-457, eff. 7-1-04.)
6		(225 ILCS 450/20.01) (from Ch. 111, par. 5521.01)
7		(Section scheduled to be repealed on January 1, 2014)
8		(Text of Section after amendment by P.A. 92-457)
9		Sec. 20.01. Grounds for discipline; license or
10		registration.
11		(a) The Department Board may refuse to issue or renew, or
12		may revoke, suspend, or reprimand any license or licensee,
13		place a licensee or registrant on probation for a period of
14		time subject to any conditions the Department Board may specify
15		including requiring the licensee or registrant to attend
16		continuing education courses or to work under the supervision
17		of another licensee or registrant, impose a fine not to exceed
18		$5,000 for each violation, restrict the authorized scope of
19		practice, or require a licensee or registrant to undergo a peer
20		review program, for any one or more of the following:
21		(1) Violation of any provision of this Act.
22		(2) Attempting to procure a license or registration to
23		practice under this Act public accounting by bribery or
24		fraudulent misrepresentations.
25		(3) Having a license to practice public accounting or
26		registration revoked, suspended, or otherwise acted
27		against, including the denial of licensure or
28		registration, by the licensing or registering authority of
29		another state, territory, or country, including but not
30		limited to the District of Columbia, or any United States
31		territory. No disciplinary action shall be taken in
32		Illinois if the action taken in another jurisdiction was
33		based upon failure to meet the continuing professional

1		education requirements of that jurisdiction and the
2		applicable Illinois continuing professional education
3		requirements are met.
4		(4) Being convicted or found guilty, regardless of
5		adjudication, of a crime in any jurisdiction which directly
6		relates to the practice of public accounting or the ability
7		to practice public accounting or as a Registered Certified
8		Public Accountant.
9		(5) Making or filing a report or record which the
10		registrant or licensee knows to be false, willfully failing
11		to file a report or record required by state or federal
12		law, willfully impeding or obstructing the filing, or
13		inducing another person to impede or obstruct the filing.
14		The reports or records shall include only those that are
15		signed in the capacity of a licensed certified public
16		accountant or a registered certified public accountant.
17		(6) Conviction in this or another State or the District
18		of Columbia, or any United States Territory, of any crime
19		that is punishable by one year or more in prison or
20		conviction of a crime in a federal court that is punishable
21		by one year or more in prison.
22		(7) Proof that the licensee or registrant is guilty of
23		fraud or deceit, or of gross negligence, incompetency, or
24		misconduct, in the practice of public accounting.
25		(8) Violation of any rule adopted under this Act.
26		(9) Practicing on a revoked, suspended, or inactive
27		license or registration.
28		(10) Suspension or revocation of the right to practice
29		before any state or federal agency.
30		(11) Conviction of any crime under the laws of the
31		United States or any state or territory of the United
32		States that is a felony or misdemeanor and has dishonesty
33		as an essential element, or of any crime that is directly
34		related to the practice of the profession.

1		(12) Making any misrepresentation for the purpose of
2		obtaining a license, or registration or material
3		misstatement in furnishing information to the Department
4		Board.
5		(13) Aiding or assisting another person in violating
6		any provision of this Act or rules promulgated hereunder.
7		(14) Engaging in dishonorable, unethical, or
8		unprofessional conduct of a character likely to deceive,
9		defraud, or harm the public and violating the rules of
10		professional conduct adopted by the Department Board.
11		(15) Habitual or excessive use or addiction to alcohol,
12		narcotics, stimulants, or any other chemical agent or drug
13		that results in the inability to practice with reasonable
14		skill, judgment, or safety.
15		(16) Directly or indirectly giving to or receiving from
16		any person, firm, corporation, partnership, or association
17		any fee, commission, rebate, or other form of compensation
18		for any professional service not actually rendered.
19		(17) Physical or mental disability, including
20		deterioration through the aging process or loss of
21		abilities and skills that results in the inability to
22		practice the profession with reasonable judgment, skill or
23		safety.
24		(18) Solicitation of professional services by using
25		false or misleading advertising.
26		(19) Failure to file a return, or pay the tax, penalty
27		or interest shown in a filed return, or to pay any final
28		assessment of tax, penalty or interest, as required by any
29		tax Act administered by the Illinois Department of Revenue
30		or any successor agency or the Internal Revenue Service or
31		any successor agency.
32		(20) Practicing or attempting to practice under a name
33		other than the full name as shown on the license or
34		registration or any other legally authorized name.

1		(21) A finding by the Department Board that a licensee
2		or registrant has not complied with a provision of any
3		lawful order issued by the Department Board.
4		(22) Making a false statement to the Department Board
5		regarding compliance with continuing professional
6		education requirements.
7		(23) Failing to make a substantive response to a
8		request for information by the Department Board within 30
9		days of the request.
10		(b) (Blank).
11		(c) In rendering an order, the Department Board shall take
12		into consideration the facts and circumstances involving the
13		type of acts or omissions in subsection (a) including, but not
14		limited to:
15		(1) the extent to which public confidence in the public
16		accounting profession was, might have been, or may be
17		injured;
18		(2) the degree of trust and dependence among the
19		involved parties;
20		(3) the character and degree of financial or economic
21		harm which did or might have resulted; and
22		(4) the intent or mental state of the person charged at
23		the time of the acts or omissions.
24		(d) The Department Board shall reissue the license or
25		registration upon a showing that the disciplined licensee or
26		registrant has complied with all of the terms and conditions
27		set forth in the final order.
28		(e) The Department Board shall deny any application for a
29		license, registration, or renewal, without hearing, to any
30		person who has defaulted on an educational loan guaranteed by
31		the Illinois Student Assistance Commission; however, the
32		Department Board may issue a license, registration, or renewal
33		if the person in default has established a satisfactory
34		repayment record as determined by the Illinois Student

1		Assistance Commission.
2		(f) The determination by a court that a licensee or
3		registrant is subject to involuntary admission or judicial
4		admission as provided in the Mental Health and Developmental
5		Disabilities Code will result in the automatic suspension of
6		his or her license or registration. The licensee or registrant
7		shall be responsible for notifying the Department of the
8		determination by the court that the licensee or registrant is
9		subject to involuntary admission or judicial admission as
10		provided in the Mental Health and Developmental Disabilities
11		Code. The licensee or registrant shall also notify the
12		Department upon discharge so that a determination may be made
13		under item (17) of subsection (a) whether the licensee or
14		registrant may resume practice The suspension will end upon a
15		finding by a court that the licensee is no longer subject to
16		involuntary admission or judicial admission and the issuance of
17		an order so finding and discharging the patient.
18		(Source: P.A. 92-457, eff. 7-1-04; 93-629, eff. 12-23-03.)
19		(225 ILCS 450/20.1) (from Ch. 111, par. 5522)
20		(Section scheduled to be repealed on January 1, 2014)
21		(Text of Section after amendment by P.A. 92-457)
22		Sec. 20.1. Investigations; notice; hearing. The Department
23		Board may, upon its own motion, and shall, upon the verified
24		complaint in writing of any person setting forth facts which,
25		if proved, would constitute grounds for disciplinary action as
26		set forth in Section 20.01, investigate the actions of any
27		person or entity. The Department Board may refer complaints and
28		investigations to a disciplinary body of the accounting
29		profession for technical assistance. The results of an
30		investigation and recommendations of the disciplinary body may
31		be considered by the Department Board, but shall not be
32		considered determinative and the Department Board shall not in
33		any way be obligated to take any action or be bound by the

1		results of the accounting profession's disciplinary
2		proceedings. The Department Board, before taking disciplinary
3		action, shall afford the concerned party or parties an
4		opportunity to request a hearing and if so requested shall set
5		a time and place for a hearing of the complaint. The Department
6		Board shall notify the applicant or the licensed or registered
7		person or entity of any charges made and the date and place of
8		the hearing of those charges by mailing notice thereof to that
9		person or entity by registered or certified mail to the place
10		last specified by the accused person or entity in the last
11		notification to the Department Board, at least 30 days prior to
12		the date set for the hearing or by serving a written notice by
13		delivery of the notice to the accused person or entity at least
14		15 days prior to the date set for the hearing, and shall direct
15		the applicant or licensee or registrant to file a written
16		answer to the Department Board under oath within 20 days after
17		the service of the notice and inform the applicant or licensee
18		or registrant that failure to file an answer will result in
19		default being taken against the applicant or licensee or
20		registrant and that the license or registration or certificate
21		may be suspended, revoked, placed on probationary status, or
22		other disciplinary action may be taken, including limiting the
23		scope, nature or extent of practice, as the Director Board may
24		deem proper. In case the person fails to file an answer after
25		receiving notice, his or her license or registration or
26		certificate may, in the discretion of the Department Board, be
27		suspended, revoked, or placed on probationary status, or the
28		Department Board may take whatever disciplinary action deemed
29		proper, including limiting the scope, nature, or extent of the
30		person's practice or the imposition of a fine, without a
31		hearing, if the act or acts charged constitute sufficient
32		grounds for such action under this Act. The Department Board
33		shall afford the accused person or entity an opportunity to be
34		heard in person or by counsel at the hearing. At Following the

1		conclusion of the hearing the Committee Board shall present to
2		the Director issue a written report order setting forth its
3		finding of facts, conclusions of law, and recommendations
4		penalties to be imposed. The report order shall contain a
5		finding whether or not the accused person violated this Act or
6		failed to comply with the conditions required in this Act. If
7		the Director disagrees in any regard with the report, he or she
8		may issue an order in contravention of the report. The Director
9		shall provide a written explanation to the Committee of any
10		such deviations and shall specify with particularity the
11		reasons for the deviations.
12		The finding is not admissible in evidence against the
13		person in a criminal prosecution brought for the violation of
14		this Act, but the hearing and findings are not a bar to a
15		criminal prosecution brought for the violation of this Act.
16		(Source: P.A. 92-457, eff. 7-1-04.)
17		(225 ILCS 450/20.2) (from Ch. 111, par. 5523)
18		(Section scheduled to be repealed on January 1, 2014)
19		(Text of Section after amendment by P.A. 92-457)
20		Sec. 20.2. The Department Board may subpoena and bring
21		before it at any hearing any person in this State and take
22		testimony either orally or by deposition, or both, with the
23		same fees and mileage and in the same manner as prescribed by
24		law in judicial proceedings in civil cases in circuit courts of
25		this State.
26		The Director, any member of the Committee designated by the
27		Director, or any hearing officer appointed may administer oaths
28		to witnesses at any hearing which the Department is authorized
29		by law to conduct or any other oaths required or authorized in
30		any Act administered by the Department.
31		The Chairman of the Board, or any member of the Board
32		designated by the Chairman, or any hearing officer appointed
33		pursuant to Section 20.6, may administer oaths to witnesses at

1		any hearing which the Board is authorized by law to conduct,
2		and any other oaths required or authorized in any Act
3		administered by the Board.
4		(Source: P.A. 92-457, eff. 7-1-04.)
5		(225 ILCS 450/20.3) (from Ch. 111, par. 5524)
6		(Section scheduled to be repealed on January 1, 2014)
7		(Text of Section after amendment by P.A. 92-457)
8		Sec. 20.3. Any circuit court in the State of Illinois, upon
9		the application of the accused person, partnership or
10		corporation, of the complainant or of the Department Board,
11		may, by order duly entered, require the attendance of witnesses
12		and the production of relevant books and papers before the
13		Department Board at any hearing relative to a disciplinary
14		action and the court may compel obedience to the order by
15		proceedings for contempt.
16		(Source: P.A. 92-457, eff. 7-1-04.)
17		(225 ILCS 450/20.4) (from Ch. 111, par. 5525)
18		(Section scheduled to be repealed on January 1, 2014)
19		(Text of Section after amendment by P.A. 92-457)
20		Sec. 20.4. The Department Board, at its expense, shall
21		provide a stenographer to take down the testimony and preserve
22		a record of all proceedings at disciplinary hearings. The
23		Department Board shall furnish a transcript of that record to
24		any person interested in that hearing upon payment of the
25		reasonable cost established by the Department Board.
26		(Source: P.A. 92-457, eff. 7-1-04.)
27		(225 ILCS 450/20.5) (from Ch. 111, par. 5526)
28		(Section scheduled to be repealed on January 1, 2014)
29		(Text of Section after amendment by P.A. 92-457)
30		Sec. 20.5. Rehearing. In any disciplinary proceeding, a
31		copy of the Committee's report Board's order shall be served

1		upon the respondent by the Department, either personally or as
2		provided in this Act for the service of the notice of hearing.
3		Within 20 days after such service, the respondent may present
4		to the Department Board a motion in writing for a rehearing,
5		which motion shall specify the particular grounds therefor. If
6		no motion for rehearing is filed, then upon the expiration of
7		the time specified for filing such a motion, or if a motion or
8		rehearing is denied, then upon such denial the Director may
9		enter an order in accordance with recommendations of the
10		Committee except as provided in Section 20.6 determination of
11		the Board shall be final. If the respondent shall order from
12		the reporting service, and pay for a transcript of the record
13		within the time for filing a motion for rehearing, the 20 day
14		period within which such a motion may be filed shall commence
15		upon the delivery of the transcript to the respondent.
16		Whenever the Director is satisfied that substantial
17		justice has not been done in the disciplinary proceeding, the
18		Director may order a rehearing by the committee or designated
19		hearing officer. The Director shall provide a written
20		explanation to the Committee of any deviation from the
21		recommendations of the Committee and shall specify with
22		particularity the reasons for the deviation.
23		Upon the suspension or revocation of a registration
24		certificate or license of a registrant or the licensee, the
25		registrant or licensee shall be required to surrender to the
26		Department Board the registration certificate or license
27		issued by the Department Board, and upon failure or refusal so
28		to do, the Department Board may seize it.
29		The Department Board may exchange information relating to
30		proceedings resulting in disciplinary action against licensees
31		or registrants with the regulatory bodies of other states, or
32		with other public authorities or private organizations or with
33		federal authorities having regulatory interest in such matter.
34		(Source: P.A. 92-457, eff. 7-1-04.)

1		(225 ILCS 450/20.6) (from Ch. 111, par. 5526.6)
2		(Section scheduled to be repealed on January 1, 2014)
3		(Text of Section after amendment by P.A. 92-457)
4		Sec. 20.6. Notwithstanding the provisions of Section 20.2
5		of this Act, the Director Board shall have the authority to
6		appoint any attorney duly licensed to practice law in the State
7		of Illinois to serve as the hearing officer in any disciplinary
8		action. The Director shall notify the Committee of such
9		appointment.
10		The hearing officer shall have full authority to conduct
11		the hearing. The hearing officer shall report his findings of
12		fact, conclusions of law and recommendations to the Committee
13		and the Director. The Committee shall have 60 days after
14		receiving the report to review the report of the hearing
15		officer and present its findings of fact, conclusions of law,
16		and recommendations to the Director. If the Committee fails to
17		present its report within the 60-day period, the Director shall
18		issue an order based on the report of the hearing officer. If
19		the Director disagrees in any regard with the report of the
20		Committee or hearing officer, he or she may issue an order in
21		contravention thereof. The Director shall provide a written
22		explanation to the Committee of any such deviations and shall
23		specify with particularity the reasons for said action in the
24		final order. Board. The Board shall have 60 days from receipt
25		of the report to review the report of the hearing officer and
26		shall issue an order based on the report of the hearing officer
27		unless it disagrees in any regard with the report of the
28		hearing officer, in which case it may issue an order in
29		contravention thereof, which order may require a new hearing as
30		to some or all of the facts in dispute or may issue findings of
31		fact and conclusions of law contrary to the findings and
32		conclusions of the hearing officer.
33		(Source: P.A. 92-457, eff. 7-1-04.)

1		(225 ILCS 450/21) (from Ch. 111, par. 5527)
2		(Section scheduled to be repealed on January 1, 2014)
3		(Text of Section after amendment by P.A. 92-457)
4		Sec. 21. Judicial review; cost of record; order as prima
5		facie proof.
6		(a) All final administrative decisions of the Department
7		Board hereunder shall be subject to judicial review pursuant to
8		the provisions of the Administrative Review Law, and all
9		amendments and modifications thereof, and the rules adopted
10		pursuant thereto. The term "administrative decision" is
11		defined as in Section 3-101 of the Code of Civil Procedure.
12		Proceedings for judicial review shall be commenced in the
13		Circuit Court of the county in which the party applying for
14		review resides; provided, that if such party is not a resident
15		of this State, the venue shall be in Sangamon, Champaign, or
16		Cook County.
17		(b) The Department Board shall not be required to certify
18		any record to the court or file any answer in court or
19		otherwise appear in any court in a judicial review proceeding,
20		unless there is filed in the court with the complaint a receipt
21		from the Department Board acknowledging payment of the costs of
22		furnishing and certifying the record, which costs shall be
23		established by the Department Board. Exhibits shall be
24		certified without cost. Failure on the part of the plaintiff to
25		file such receipt in court shall be grounds for dismissal of
26		the action.
27		(c) An order of disciplinary action or a certified copy
28		thereof, over the seal of the Department Board and purporting
29		to be signed by the Director Chairman or authorized agent of
30		the Director Board, shall be prima facie proof, subject to
31		being rebutted, that:
32		(1) the signature is the genuine signature of the
33		Director Chairman or authorized agent of the Director

1		Board;
2		(2) the Director Chairman or authorized agent of the
3		Director Board is duly appointed and qualified; and
4		(3) the Committee Board and the members thereof are
5		qualified to act.
6		(Source: P.A. 91-357, eff. 7-29-99; 92-457, eff. 7-1-04.)
7		(225 ILCS 450/26) (from Ch. 111, par. 5532)
8		(Section scheduled to be repealed on January 1, 2014)
9		(Text of Section after amendment by P.A. 92-457)
10		Sec. 26. Rules and regulations. The Department and Board
11		shall adopt all necessary and reasonable rules and regulations
12		for the effective administration and enforcement of the
13		provisions of this Act; and without limiting the foregoing the
14		Board shall adopt and prescribe rules and regulations for a
15		fair and wholly impartial method of determining the
16		qualifications of applicants for examination and for a fair and
17		wholly impartial method of examination of persons under this
18		Act Section 2 and may establish rules for subjects conditioned
19		and for the transfer of credits from other jurisdictions with
20		respect to subjects passed. All Department rules in effect on
21		the effective date of this amendatory Act of the 92nd General
22		Assembly shall continue in effect under the jurisdiction of the
23		Board until changed by the Board.
24		(Source: P.A. 92-457, eff. 7-1-04.)
25		(225 ILCS 450/28) (from Ch. 111, par. 5534)
26		(Section scheduled to be repealed on January 1, 2014)
27		(Text of Section after amendment by P.A. 92-457)
28		Sec. 28. Penalties. Each of the following acts perpetrated
29		in the State of Illinois is a Class B misdemeanor.
30		(a) The practice of public accounting insofar as it
31		consists in rendering service as described in Section 8,
32		without licensure, in violation of the provisions of this

1		Act;
2		(b) The obtaining or attempting to obtain licensure as
3		a licensed certified public accountant or registration as a
4		registered certified public accountant by fraud;
5		(c) The use of the title "Certified Public Accountant"
6		or the abbreviation "C.P.A." or use of any similar words or
7		letters indicating the user is a certified public
8		accountant, the title "Registered Certified Public
9		Accountant", the abbreviation "R.C.P.A.", any similar
10		words or letters indicating the user is a certified public
11		accountant or a registered certified public accountant by
12		any person in contravention of this Act;
13		(c-5) The use of the title "Certified Public
14		Accountant" or "Licensed Certified Public Accountant" or
15		the abbreviation "C.P.A." or "L.C.P.A." or any similar
16		words or letters indicating the user is a certified public
17		accountant by any person in contravention with this Act;
18		The use of the title "Certified Public Accountant" or the
19		abbreviation "C.P.A." or any similar words or letters
20		indicating the user is a certified public accountant, by
21		any person who has not received a certificate as a
22		certified public accountant from the Board;
23		(d) The use of the title "Certified Public Accountant"
24		or the abbreviation "C.P.A." or any similar words or
25		letters indicating that the members are certified public
26		accountants, by any partnership, limited liability
27		company, corporation, or other entity unless all members
28		thereof personally engaged in the practice of public
29		accounting in this State have received certificates as
30		certified public accountants from the Board, are licensed
31		as licensed certified public accountants by the Department
32		Board, and are holders of an effective unrevoked license,
33		and the partnership, limited liability company,
34		corporation, or other entity is licensed as licensed

1		certified public accountants by the Board with an effective
2		unrevoked license;
3		(e) The use of the title "Licensed Certified Public
4		Accountant", licensed certified public accountant",
5		"licensed CPA", "Public Accountant", or the abbreviation
6		"L.C.P.A." "P.A." or any similar words or letters
7		indicating such person is a licensed certified public
8		accountant, by any person not licensed as a licensed
9		certified public accountant by the Department Board, and
10		holding an effective unrevoked license; provided nothing
11		in this Act shall prohibit the use of the title
12		"Accountant" or "Bookkeeper" by any person;
13		(f) The use of the title "Licensed Certified Public
14		Accountants", "Public Accountants" or the abbreviation
15		"P.A.'s" or any similar words or letters indicating that
16		the members are public accountants by any partnership,
17		limited liability company, corporation, or other entity
18		unless all members thereof personally engaged in the
19		practice of public accounting in this State are licensed as
20		licensed certified public accountants by the Department
21		Board and are holders of effective unrevoked licenses, and
22		the partnership is licensed as a public accounting firm by
23		the Department Board with an effective unrevoked licenses;
24		(g) Making false statements to the Department Board
25		regarding compliance with continuing professional
26		education requirements; .
27		(h) The use of the title "Certified Public Accountant"
28		or the abbreviation "C.P.A." or any similar words or
29		letters indicating that the members are certified public
30		accountants, by any partnership unless all members thereof
31		personally engaged in the practice of public accounting in
32		this State have received certificates as certified public
33		accountants from the Board, are licensed as public
34		accountants by the Department, and are holders of an

1		effective unrevoked license, and the partnership is
2		licensed as public accountants by the Department with an
3		effective unrevoked license.
4		This Section does not prohibit a firm partnership, limited
5		liability company, corporation, or other entity who does not
6		practice public accounting as set forth in Section 8 of this
7		Act and whose members residing in Illinois are registered with
8		the Department from using the title "Certified Public
9		Accountant" or the abbreviation "C.P.A." or "CPA" or similar
10		words or letters indicating that the members are certified
11		public accountants.
12		(Source: P.A. 92-457, eff. 7-1-04.)
13		(225 ILCS 450/30) (from Ch. 111, par. 5535)
14		(Section scheduled to be repealed on January 1, 2014)
15		(Text of Section after amendment by P.A. 92-457)
16		Sec. 30. The practice of public accounting, as described in
17		Section 8 of this Act, by any person in violation of this Act
18		is hereby declared to be inimical to the public welfare and to
19		be a public nuisance. An action to perpetually enjoin from such
20		unlawful practice any person who has been or is engaged therein
21		may be maintained in the name of the people of the State of
22		Illinois by the Attorney General of the State of Illinois, by
23		the State's Attorney of any county in which the action is
24		brought, by the Department Board or by any resident citizen.
25		The injunction proceeding shall be in addition to and not in
26		lieu of any penalties or other remedies provided by this Act.
27		No injunction shall issue under this section against any person
28		for any act exempted under Section 11 of this Act.
29		If any person shall practice as a licensed certified public
30		accountant or a registered certified public accountant or hold
31		himself or herself out as a licensed certified public
32		accountant or registered certified public accountant without
33		being licensed or registered under the provision of this Act

1		then any licensed certified public accountant or registered
2		certified public accountant, any interested party or any person
3		injured thereby may, in addition to the Department Board,
4		petition for relief as provided in subsection (a) of this
5		Section.
6		Whenever in the opinion of the Department Board any person
7		violates any provision of this Act, the Department Board may
8		issue a rule to show cause why an order to cease and desist
9		should not be entered against him. The rule shall clearly set
10		forth the grounds relied upon by the Department Board and shall
11		provide a period of 7 days from the date of the rule to file an
12		answer to the satisfaction of the Department Board. Failure to
13		answer to the satisfaction of the Department Board shall cause
14		an order to cease and desist to be issued forthwith.
15		(Source: P.A. 92-457, eff. 7-1-04.)
16		(225 ILCS 450/30.4 new)
17		(Section scheduled to be repealed on January 1, 2014)
18		Sec. 30.4. Prohibited practice.
19		(a) No licensed public accountant, licensed certified
20		public accountant, or public accounting firm may provide
21		contemporaneously with an audit those non-auditing services
22		referenced in subsection (g) of Section 10A of the federal
23		Securities Exchange Act of 1934, as amended, to a company,
24		excluding a not-for-profit organization, that (1) is not
25		required to file periodic information, documents, and reports
26		pursuant to the Securities Exchange Act of 1934 and (2) during
27		the previous fiscal year, had annual revenues exceeding
28		$50,000,000 or more than 500 employees.
29		(b) (1) A licensed public accountant, licensed
30		certified public accountant, or public accounting firm is
31		exempted from the prohibition in subsection (a) of this
32		Section 30.4 if:
33		(A) the licensed public accountant, licensed

1		certified public accountant, or public accounting firm
2		presents written notice of the contemporaneous
3		provision of auditing and non-auditing services to the
4		company prior to the commencement of the
5		contemporaneous provision of the services; and
6		(B) the president or chief executive officer of the
7		company to which the contemporaneous auditing and
8		non-auditing services are to be provided subsequently
9		signs an acknowledgement that the company is aware of
10		and agrees to the contemporaneous provision of the
11		auditing and non-auditing services.
12		(2) A licensed public accountant, licensed certified
13		public accountant, or public accounting firm waives the
14		exemption provided for in paragraph (1) of this subsection
15		(b) if the licensed public accountant, certified public
16		accountant, or public accounting firm engages in criminal
17		activity or willful or wanton negligence regarding the
18		provision of contemporaneous auditing and non-auditing
19		services to the company.
20		(c) A violation of this Section shall subject a licensed
21		public accountant, licensed certified public accountant, or
22		public accounting firm to the provisions of Section 20.01 of
23		this Act.
24		(d) Nothing in this Section shall be construed to authorize
25		or permit the provision of any services by a licensed public
26		accountant, licensed certified public accountant, or public
27		accounting firm that would result in a lack of independence
28		under applicable ethics standards of the accounting
29		profession.
30		(225 ILCS 450/30.5 new)
31		(Section scheduled to be repealed on January 1, 2014)
32		Sec. 30.5. Improper influence on the conduct of audits.
33		(a) It shall be unlawful for any officer or director of a

1		company that is not required to file periodic information,
2		documents, and reports pursuant to the federal Securities
3		Exchange Act of 1934, or any other person acting under the
4		direction thereof, to take any action to fraudulently
5		influence, coerce, manipulate, or mislead any licensed public
6		accountant or licensed certified public accountant engaged in
7		the performance of an audit of the financial statements of that
8		company for the purpose of rendering the financial statements
9		being audited materially misleading.
10		(b) A person who, with the intent to deceive, violates this
11		Section is guilty of a Class 4 felony.
12		(225 ILCS 450/30.6 new)
13		(Section scheduled to be repealed on January 1, 2014)
14		Sec. 30.6. Misleading behavior by certified public
15		accountants.
16		(a) It shall be unlawful for any licensed public accountant
17		or licensed certified public accountant to intentionally
18		mislead a company that is not required to file periodic
19		information, documents, and reports pursuant to the federal
20		Securities Exchange Act of 1934 by falsifying records it
21		creates as part of an audit of the company.
22		(b) A person who knowingly violates this Section is guilty
23		of a Class 4 felony.
24		(225 ILCS 450/32) (from Ch. 111, par. 5537)
25		(Section scheduled to be repealed on January 1, 2014)
26		Sec. 32. (a) This subsection (a) applies only until July 1,
27		2004. All moneys received by the Department of Professional
28		Regulation under this Act shall be deposited into the
29		Registered Certified Public Accountants' Administration and
30		Disciplinary Fund, which is hereby created as a special fund in
31		the State Treasury. The funds in the account shall be used by
32		the Department or the Board, as appropriated, exclusively for

1		expenses of the Department of Professional Regulation, or the
2		Public Accountants' Registration Committee, or the Board in the
3		administration of this Act.
4		Moneys in the Registered Certified Public Accountants'
5		Administration and Disciplinary Fund may be invested and
6		reinvested, with all earnings received from the investments to
7		be deposited into the Registered Certified Public Accountants'
8		Administration and Disciplinary Fund.
9		Moneys from the Fund may also be used for direct and
10		allocable indirect costs related to the public purposes of the
11		Department of Professional Regulation or the Board. Moneys in
12		the Fund may be transferred to the Professions Indirect Cost
13		Fund as authorized by Section 2105-300 of the Department of
14		Professional Regulation Law (20 ILCS 2105/2105-300).
15		(b) This subsection (b) applies beginning July 1, 2004.
16		All moneys received by the Board under this Act shall be
17		deposited into the Registered Certified Public Accountants'
18		Administration and Disciplinary Fund, a special fund in the
19		State treasury. The moneys in the Fund shall be used by the
20		Board, as appropriated, exclusively for expenses of the
21		Department of Professional Regulation and the Board in the
22		administration of this Act.
23		Moneys in the Registered Certified Public Accountants'
24		Administration and Disciplinary Fund may be invested and
25		reinvested, with all earnings received from the investments to
26		be deposited into the Registered Certified Public Accountants'
27		Administration and Disciplinary Fund.
28		(Source: P.A. 91-239, eff. 1-1-00; 92-457, eff. 8-21-01.)

Section 99. Effective date. This Act takes effect July 1, 2004, except the provisions changing Section 1 of the Illinois Public Accounting Act take effect on October 1, 2006.".