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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Public Accounting Act is amended by | ||||||
5 | changing Sections 4 and 16 as follows:
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6 | (225 ILCS 450/4) (from Ch. 111, par. 5505)
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7 | (Section scheduled to be repealed on January 1, 2014)
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8 | Sec. 4. Transitional language.
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9 | (a) The provisions of this Act shall not be construed to | ||||||
10 | invalidate any
certificates as certified public accountants | ||||||
11 | issued by the University under
"An Act to regulate the | ||||||
12 | profession of public accountants", approved May 15,
1903, as | ||||||
13 | amended, or any certificates as Certified Public Accountants
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14 | issued by the University or the Board under Section 4 of "An | ||||||
15 | Act to regulate the
practice of public accounting and to repeal | ||||||
16 | certain acts therein named",
approved July 22, 1943, as | ||||||
17 | amended, which certificates shall be valid and
in force as | ||||||
18 | though issued under the provisions of this Act. | ||||||
19 | (b) Before July 1, 2010, persons who have received a | ||||||
20 | Certified Public Accountant (CPA) Certificate issued by the | ||||||
21 | Board of Examiners or holding similar certifications from other | ||||||
22 | jurisdictions with equivalent educational requirements and | ||||||
23 | examination standards may apply to the Department on forms |
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1 | supplied by the Department for and may be granted a | ||||||
2 | registration as a Registered Certified Public Accountant from | ||||||
3 | the Department upon payment of the required fee. | ||||||
4 | (c) Beginning with the 2006 renewal, the Department shall | ||||||
5 | cease to issue a license as a Public Accountant. Any person | ||||||
6 | holding a valid license as a Public Accountant prior to | ||||||
7 | September 30, 2006 who meets the conditions for renewal of a | ||||||
8 | license under this Act, shall be issued a license as a Licensed | ||||||
9 | Certified Public Accountant under this Act and shall be subject | ||||||
10 | to continued regulation by the Department under this Act. The | ||||||
11 | Department may adopt rules to implement this Section. | ||||||
12 | (d) The Department shall not issue any new registrations as | ||||||
13 | a Registered Certified Public Accountant after July 1, 2012 | ||||||
14 | 2010 . After that date, any applicant for licensure under this | ||||||
15 | Act shall apply for a license as a Licensed Certified Public | ||||||
16 | Accountant and shall meet the requirements set forth in this | ||||||
17 | Act. Any person issued a Certified Public Accountant | ||||||
18 | certificate who has been issued a registration as a Registered | ||||||
19 | Certified Public Accountant may renew the registration under | ||||||
20 | the provisions of this Act and that person may continue to | ||||||
21 | renew or restore the registration during his or her lifetime, | ||||||
22 | subject only to the renewal or restoration requirements for the | ||||||
23 | registration under this Act. Such registration shall be subject | ||||||
24 | to the disciplinary provisions of this Act. | ||||||
25 | (e) On and after October 1, 2006, no person shall hold | ||||||
26 | himself or herself out to the public in this State in any |
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1 | manner by using the title "certified public accountant" or use | ||||||
2 | the abbreviation "C.P.A." or "CPA" or any words or letters to | ||||||
3 | indicate that the person using the same is a certified public | ||||||
4 | accountant unless he or she maintains a current registration or | ||||||
5 | license issued by the Department or is exercising the practice | ||||||
6 | privilege afforded under Section 5.2 of this Act. It shall be a | ||||||
7 | violation of this Act for an individual to assume or use 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 in this | ||||||
11 | State unless he or she maintains a current registration or | ||||||
12 | license issued by the Department or is exercising the practice | ||||||
13 | privilege afforded under Section 5.2 of this Act.
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14 | (Source: P.A. 95-386, eff. 1-1-08.)
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15 | (225 ILCS 450/16) (from Ch. 111, par. 5517)
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16 | (Section scheduled to be repealed on January 1, 2014)
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17 | Sec. 16. Expiration and renewal of licenses; renewal of | ||||||
18 | registration;
continuing education.
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19 | (a) The expiration date and renewal period for each license
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20 | issued under this Act shall be set by rule.
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21 | (b) Every holder of a license or registration under this | ||||||
22 | Act may renew such license or registration before the | ||||||
23 | expiration date upon payment of the required renewal fee as set | ||||||
24 | by rule.
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25 | (c) Every application for renewal of a license by a |
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1 | licensed certified public accountant who has been licensed | ||||||
2 | under this Act for 3 years or more shall be accompanied or | ||||||
3 | supported by any evidence the Department shall prescribe, in | ||||||
4 | satisfaction of completing, each 3 years, not less than 120 | ||||||
5 | hours of continuing professional education programs in | ||||||
6 | subjects given by continuing education sponsors registered by | ||||||
7 | the Department upon recommendation of the Committee. Of the 120 | ||||||
8 | hours, not less than 4 hours shall be courses covering the | ||||||
9 | subject of professional ethics. All continuing education | ||||||
10 | sponsors applying to the Department for registration shall be | ||||||
11 | required to submit an initial nonrefundable application fee set | ||||||
12 | by Department rule. Each registered continuing education | ||||||
13 | sponsor shall be required to pay an annual renewal fee set by | ||||||
14 | Department rule. Publicly supported colleges, universities, | ||||||
15 | and governmental agencies located in Illinois are exempt from | ||||||
16 | payment of any fees required for continuing education sponsor | ||||||
17 | registration. Failure by a continuing education sponsor to be | ||||||
18 | licensed or pay the fees prescribed in this Act, or to comply | ||||||
19 | with the rules and regulations established by the Department | ||||||
20 | under this Section regarding requirements for continuing | ||||||
21 | education courses or sponsors, shall constitute grounds for | ||||||
22 | revocation or denial of renewal of the sponsor's registration. | ||||||
23 | (d) Licensed Certified Public Accountants are exempt from | ||||||
24 | the continuing professional education requirement for the | ||||||
25 | first renewal period following the original issuance of the | ||||||
26 | license. |
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1 | Notwithstanding the provisions of subsection (c), the | ||||||
2 | Department may accept courses and sponsors approved by other | ||||||
3 | states, by the American Institute of Certified Public | ||||||
4 | Accountants, by other state CPA societies, or by national | ||||||
5 | accrediting organizations such as the National Association of | ||||||
6 | State Boards of Accountancy. | ||||||
7 | Failure by an applicant for renewal of a license as a | ||||||
8 | licensed certified public accountant to furnish the evidence | ||||||
9 | shall constitute grounds for disciplinary action, unless the | ||||||
10 | Department in its discretion shall determine the failure to | ||||||
11 | have been due to reasonable cause. The Department, in its | ||||||
12 | discretion, may renew a license despite failure to furnish | ||||||
13 | evidence of satisfaction of requirements of continuing | ||||||
14 | education upon condition that the applicant follow a particular | ||||||
15 | program or schedule of continuing education. In issuing rules | ||||||
16 | and individual orders in respect of requirements of continuing | ||||||
17 | education, the Department in its discretion may, among other | ||||||
18 | things, use and rely upon guidelines and pronouncements of | ||||||
19 | recognized educational and professional associations; may | ||||||
20 | prescribe rules for the content, duration, and organization of | ||||||
21 | courses; shall take into account the accessibility to | ||||||
22 | applicants of such continuing education as it may require, and | ||||||
23 | any impediments to interstate practice of public accounting | ||||||
24 | that may result from differences in requirements in other | ||||||
25 | states; and may provide for relaxation or suspension of | ||||||
26 | requirements in regard to applicants who certify that they do |
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1 | not intend to engage in the practice of public accounting, and | ||||||
2 | for instances of individual hardship. | ||||||
3 | The Department shall establish by rule a means for the | ||||||
4 | verification of completion of the continuing education | ||||||
5 | required by this Section. This verification may be accomplished | ||||||
6 | through audits of records maintained by licensees; by requiring | ||||||
7 | the filing of continuing education certificates with the | ||||||
8 | Department; or by other means established by the Department. | ||||||
9 | The Department may establish, by rule, guidelines for | ||||||
10 | acceptance of continuing education on behalf of licensed | ||||||
11 | certified public accountants taking continuing education | ||||||
12 | courses in other jurisdictions.
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13 | (e) For renewals on and after July 1, 2012, as a condition | ||||||
14 | for granting a renewal license to firms and sole practitioners | ||||||
15 | who provide services requiring a license under this Act, the | ||||||
16 | Department shall require that the firm or sole practitioner | ||||||
17 | satisfactorily complete a peer review during the immediately | ||||||
18 | preceding 3-year period, accepted by a Peer Review | ||||||
19 | Administrator in accordance with established standards for | ||||||
20 | performing and reporting on peer reviews, unless the firm or | ||||||
21 | sole practitioner is exempted under the provisions of | ||||||
22 | subsection (i) of this Section. A firm or sole practitioner | ||||||
23 | shall, at the request of the Department, submit to the | ||||||
24 | Department a letter from the Peer Review Administrator stating | ||||||
25 | the date on which the peer review was satisfactorily completed. | ||||||
26 | A new firm or sole practitioner not subject to subsection |
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1 | (l) of this Section shall undergo its first peer review during | ||||||
2 | the first full renewal cycle after it is granted its initial | ||||||
3 | license.
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4 | The requirements of this subsection (e) shall not apply to | ||||||
5 | any person providing services requiring a license under this | ||||||
6 | Act to the extent that such services are provided in the | ||||||
7 | capacity of an employee of the Office of the Auditor General or | ||||||
8 | to a nonprofit cooperative association engaged in the rendering | ||||||
9 | of licensed service to its members only under paragraph (3) of | ||||||
10 | subsection (b) of Section 14 of this Act or any of its | ||||||
11 | employees to the extent that such services are provided in the | ||||||
12 | capacity of an employee of the association. | ||||||
13 | (f) The Department shall approve only Peer Review | ||||||
14 | Administrators that the Department finds comply with | ||||||
15 | established standards for performing and reporting on peer | ||||||
16 | reviews. The Department may adopt rules establishing | ||||||
17 | guidelines for peer reviews, which shall do all of the | ||||||
18 | following:
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19 | (1) Require that a peer review be conducted by a | ||||||
20 | reviewer that is independent of the firm reviewed and | ||||||
21 | approved by the Peer Review Administrator under | ||||||
22 | established standards. | ||||||
23 | (2) Other than in the peer review process, prohibit the | ||||||
24 | use or public disclosure of information obtained by the | ||||||
25 | reviewer, the Peer Review Administrator, or the Department | ||||||
26 | during or in connection with the peer review process. The |
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1 | requirement that information not be publicly disclosed | ||||||
2 | shall not apply to a hearing before the Department that the | ||||||
3 | firm or sole practitioner requests be public or to the | ||||||
4 | information described in paragraph (3) of subsection (i) of | ||||||
5 | this Section. | ||||||
6 | (g) If a firm or sole practitioner fails to satisfactorily | ||||||
7 | complete a peer review as required by subsection (e) of this | ||||||
8 | Section or does not comply with any remedial actions determined | ||||||
9 | necessary by the Peer Review Administrator, the Peer Review | ||||||
10 | Administrator shall notify the Department of the failure and | ||||||
11 | shall submit a record with specific references to the rule, | ||||||
12 | statutory provision, professional standards, or other | ||||||
13 | applicable authority upon which the Peer Review Administrator | ||||||
14 | made its determination and the specific actions taken or failed | ||||||
15 | to be taken by the licensee that in the opinion of the Peer | ||||||
16 | Review Administrator constitutes a failure to comply. The | ||||||
17 | Department may at its discretion or shall upon submission of a | ||||||
18 | written application by the firm or sole practitioner hold a | ||||||
19 | hearing under Section 20.1 of this Act to determine whether the | ||||||
20 | firm or sole practitioner has complied with subsection (e) of | ||||||
21 | this Section. The hearing shall be confidential and shall not | ||||||
22 | be open to the public unless requested by the firm or sole | ||||||
23 | practitioner. | ||||||
24 | (h) The firm or sole practitioner reviewed shall pay for | ||||||
25 | any peer review performed. The Peer Review Administrator may | ||||||
26 | charge a fee to each firm and sole practitioner sufficient to |
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1 | cover costs of administering the peer review program. | ||||||
2 | (i) A firm or sole practitioner shall be exempt from the | ||||||
3 | requirement to undergo a peer review if: | ||||||
4 | (1) Within 3 years before the date of application for | ||||||
5 | renewal licensure, the sole practitioner or firm has | ||||||
6 | undergone a peer review conducted in another state or | ||||||
7 | foreign jurisdiction that meets the requirements of | ||||||
8 | paragraphs (1) and (2) of subsection (f) of this Section. | ||||||
9 | The sole practitioner or firm shall submit to the | ||||||
10 | Department a letter from the organization administering | ||||||
11 | the most recent peer review stating the date on which the | ||||||
12 | peer review was completed; or | ||||||
13 | (2) The sole practitioner or firm satisfies all of the | ||||||
14 | following conditions: | ||||||
15 | (A) during the preceding 2 years, the firm or sole | ||||||
16 | practitioner has not accepted or performed any | ||||||
17 | services requiring a license under this Act; | ||||||
18 | (B) the firm or sole practitioner agrees to notify | ||||||
19 | the Department within 30 days of accepting an | ||||||
20 | engagement for services requiring a license under this | ||||||
21 | Act and to undergo a peer review within 18 months after | ||||||
22 | the end of the period covered by the engagement; or | ||||||
23 | (3) For reasons of personal health, military service, | ||||||
24 | or other good cause, the Department determines that the | ||||||
25 | sole practitioner or firm is entitled to an exemption, | ||||||
26 | which may be granted for a period of time not to exceed 12 |
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1 | months. | ||||||
2 | (j) If a peer review report indicates that a firm or sole | ||||||
3 | practitioner complies with the appropriate professional | ||||||
4 | standards and practices set forth in the rules of the | ||||||
5 | Department and no further remedial action is required, the Peer | ||||||
6 | Review Administrator shall , after issuance of the final letter | ||||||
7 | of acceptance, destroy all working papers and documents related | ||||||
8 | to the peer review , other than report-related documents and | ||||||
9 | documents evidencing completion of remedial actions, if any, in | ||||||
10 | accordance with rules established by the Department , related | ||||||
11 | to the peer review within 90 days after issuance of the letter | ||||||
12 | of acceptance by the Peer Review Administrator. If a peer | ||||||
13 | review letter of acceptance indicates that corrective action is | ||||||
14 | required, the Peer Review Administrator may retain documents | ||||||
15 | and reports related to the peer review until completion of the | ||||||
16 | next peer review or other agreed-to corrective actions . | ||||||
17 | (k) (Blank). In the event the practices of 2 or more firms | ||||||
18 | or sole practitioners are merged or otherwise combined, the | ||||||
19 | surviving firm shall retain the peer review year of the largest | ||||||
20 | firm, as determined by the number of accounting and auditing | ||||||
21 | hours of each of the practices. In the event that the practice | ||||||
22 | of a firm is divided or a portion of its practice is sold or | ||||||
23 | otherwise transferred, any firm or sole practitioner acquiring | ||||||
24 | some or all of the practice that does not already have its own | ||||||
25 | review year shall retain the review year of the former firm. In | ||||||
26 | the event that the first peer review of a firm that would |
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1 | otherwise be required by this subsection (k) would be less than | ||||||
2 | 12 months after its previous review, a review year shall be | ||||||
3 | assigned by a Peer Review Administrator so that the firm's next | ||||||
4 | peer review occurs after not less than 12 months of operation, | ||||||
5 | but not later than 18 months of operation. | ||||||
6 | (Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
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7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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