97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5773

 

Introduced 2/16/2012, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Public Accounting Act. Creates provisions that concern accounting activities and applicability of the Act. Makes changes to provisions concerning definitions; the Board of Examiners; the Public Accountant Registration Committee; the Administrative Procedure Act; transitional language; certification of out-of-State accountants; substantial equivalency; unauthorized use of title; violations; civil penalties; powers and duties of the Department; sharing of information; application for licensure; qualifications; foreign accountants; licensure by endorsement; additional requirements for firms; expiration and renewal of licenses; renewal of registration; continuing education; the provision concerning the restoration of registrations and licenses; inactive status; hearings; grounds for discipline; license or registration; subpoenas; depositions; oaths; the provision concerning the preservation a record at a hearing; criminal penalties; the provision concerning injunction proceedings; the improper influence on the conduct of audits; and misleading behavior by licensees. Repeals provisions concerning licensure; practicing as a licensed public accountant or licensed certified public accountant; unlicensed practice; and unlicensed practice; violations; and civil penalties. Amends the Regulatory Sunset Act to extend the repeal of the Illinois Public Account Act from January 1, 2014 to January 1, 2023. Effective July 1, 2012.


LRB097 20475 CEL 66007 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5773LRB097 20475 CEL 66007 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. The Regulatory Sunset Act is amended by changing
5Section 4.24 and by adding Section 4.33 as follows:
 
6    (5 ILCS 80/4.24)
7    Sec. 4.24. Acts repealed on January 1, 2014. The following
8Acts are repealed on January 1, 2014:
9    The Electrologist Licensing Act.
10    The Illinois Certified Shorthand Reporters Act of 1984.
11    The Illinois Occupational Therapy Practice Act.
12    The Illinois Public Accounting Act.
13    The Private Detective, Private Alarm, Private Security,
14Fingerprint Vendor, and Locksmith Act of 2004.
15    The Registered Surgical Assistant and Registered Surgical
16Technologist Title Protection Act.
17    The Veterinary Medicine and Surgery Practice Act of 2004.
18(Source: P.A. 95-331, eff. 8-21-07; 95-613, eff. 9-11-07.)
 
19    (5 ILCS 80/4.33 new)
20    Sec. 4.33. Act repealed on January 1, 2023. The following
21Act is repealed on January 1, 2023:
22    The Illinois Public Accounting Act.
 

 

 

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1    Section 5. The Illinois Public Accounting Act is amended by
2changing Sections 0.03, 2, 2.05, 2.1, 4, 5, 5.2, 9.02, 9.2,
39.3, 13, 14, 14.1, 14.2, 14.3, 16, 17.1, 17.2, 19, 20.01, 20.1,
420.2, 20.4, 20.5, 20.6, 21, 28, 30, 30.5, and 30.6 and by
5adding Sections 0.04 and 8.05 as follows:
 
6    (225 ILCS 450/0.03)  (from Ch. 111, par. 5500.03)
7    (Section scheduled to be repealed on January 1, 2014)
8    Sec. 0.03. Definitions. As used in this Act, unless the
9context otherwise requires:
10    "Accountancy activities" means the services as set forth in
11Section 8.05 of this Act.
12    "Address of record" means the designated address recorded
13by the Department in the applicant's or licensee's application
14file or license file maintained by the Department's licensure
15maintenance unit. It is the duty of the applicant or licensee
16to inform the Department of any change of address and those
17changes must be made either through the Department's website or
18by directly contacting the Department.
19    "Certificate" means a certificate issued by the Board or
20University or similar jurisdictions specifying an individual
21has successfully passed all sections and requirements of the
22Uniform Certified Public Accountants Examination. A
23certificate issued by the Board or University or similar
24jurisdiction does not confer the ability to use the CPA title

 

 

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1and is not equivalent to a registration or license under this
2Act.
3    "Compilation" means providing a service to be performed in
4accordance with Statements on Standards for Accounting and
5Review Services that is presented in the form of financial
6statements or information that is the representation of
7management or owners without undertaking to express any
8assurance on the statements.
9    "CPA" or "C.P.A." means a certified public accountant who
10holds a license or registration issued by the Department or an
11individual authorized to use the CPA title under Section 5.2 of
12this Act.
13    "CPA firm" means a sole proprietorship, a corporation, a
14partnership, or any other form of organization issued a license
15in accordance with this Act.
16    "CPA (inactive)" means a licensed certified public
17accountant who elects to have the Department place his or her
18license on inactive status pursuant to Section 17.2 of this
19Act.
20    "Financial statement" means a structured presentation of
21historical financial information, including, but not limited
22to, related notes intended to communicate an entity's economic
23resources and obligations at a point in time or the changes
24therein for a period of time in accordance with generally
25accepted accounting principles (GAAP) or other comprehensive
26basis of accounting (OCBOA).

 

 

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1    "Other attestation engagements" means an engagement
2performed in accordance with the Statements on Standards for
3Attestation Engagements.
4    (a) "Registered Certified Public Accountant" or
5"registered CPA" means any person who has been issued a
6registration under this Act as a Registered Certified Public
7Accountant.
8    "Report", when used with reference to financial
9statements, means an opinion, report, or other form of language
10that states or implies assurance as to the reliability of any
11financial statements and that also includes or is accompanied
12by any statement or implication that the person or firm issuing
13it has special knowledge or competence in accounting or
14auditing. Such a statement or implication of special knowledge
15or competence may arise from use by the issuer of the report of
16names or titles indicating that the person or firm is an
17accountant or auditor, or from the language of the report
18itself. "Report" includes any form of language that disclaims
19an opinion when the form of language is conventionally
20understood to imply any positive assurance as to the
21reliability of the financial statements referred to or special
22competence on the part of the person or firm issuing such
23language; it includes any other form of language that is
24conventionally understood to imply such assurance or such
25special knowledge or competence.
26    (b) "Licensed Certified Public Accountant" or "licensed

 

 

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1CPA" means any person licensed under this Act as a Licensed
2Certified Public Accountant.
3    (c) "Committee" means the Public Accountant Registration
4Committee appointed by the Secretary Director.
5    (d) "Department" means the Department of Financial and
6Professional Regulation.
7    (e) "Director" means the Director of Professional
8Regulation.
9    (f) "License", "licensee" and "licensure" refers to the
10authorization to practice under the provisions of this Act.
11    (g) "Peer review program" means a study, appraisal, or
12review of one or more aspects of a firm's or sole
13practitioner's compliance with applicable accounting,
14auditing, and other attestation standards adopted by generally
15recognized standard-setting bodies the professional work of a
16firm or sole practitioner in the practice of public accounting
17to determine the degree of compliance by the firm or sole
18practitioner with professional standards and practices,
19conducted by persons who hold current licenses to practice
20public accounting under the laws of this or another state and
21who are not affiliated with the firm or sole practitioner being
22reviewed.
23    "Principal place of business" means the office location
24designated by the licensee from which the person directs,
25controls, and coordinates his or her professional services.
26    (h) "Review committee" means any person or persons

 

 

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1conducting, reviewing, administering, or supervising a peer
2review program.
3    "Secretary" means the Secretary of the Department of
4Financial and Professional Regulation.
5    (i) "University" means the University of Illinois.
6    (j) "Board" means the Board of Examiners established under
7Section 2.
8    (k) "Registration", "registrant", and "registered" refer
9to the authorization to hold oneself out as or use the title
10"Registered Certified Public Accountant" or "Certified Public
11Accountant", unless the context otherwise requires.
12    (l) "Peer Review Administrator" means an organization
13designated by the Department that meets the requirements of
14subsection (f) of Section 16 of this Act and other rules that
15the Department may adopt.
16(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
 
17    (225 ILCS 450/0.04 new)
18    Sec. 0.04. Applicability. This Act applies to any one of
19the categories of licensure under this Act and the performance
20of or offering to perform accountancy activities.
 
21    (225 ILCS 450/2)  (from Ch. 111, par. 5502)
22    (Section scheduled to be repealed on January 1, 2014)
23    Sec. 2. Board of Examiners. The Governor shall appoint a
24Board of Examiners that shall determine the qualifications of

 

 

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1persons applying for certificates and shall make rules for and
2conduct examinations for determining the qualifications.    
3The Board shall consist of 11 examiners, including 2 public
4members. The remainder shall be certified public accountants in
5this State who have been residents of this State for at least 5
6years immediately preceding their appointment, except that one
7shall be either a certified public accountant of the grade
8herein described or an attorney licensed and residing in this
9State and one shall be a certified public accountant who is an
10active or retired educator residing in this State. The term of
11office of each examiner shall be 3 years, except that upon the
12enactment of this amendatory Act of the 93rd General Assembly,
13those members currently serving on the Board shall continue to
14serve the duration of their terms, one additional examiner
15shall be appointed for a term of one year, and one additional
16examiner for a term of 2 years. As the term of each examiner
17expires, the appointment shall be filled for a term of 3 years
18from the date of expiration. Any Board member who has served as
19a member for 6 consecutive years shall not be eligible for
20reappointment until 2 years after the end of the term in which
21the sixth consecutive year of service occurred, except that
22members of the Board serving on the effective date of this
23Section shall be eligible for appointment to one additional
243-year term. Where the expiration of any member's term shall
25result in less than 11 members then serving on the Board, the
26member shall continue to serve until his or her successor is

 

 

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1appointed and has qualified. Except as otherwise provided in
2this Section, no No Board member shall serve more than 2 full
3consecutive terms. Anyone appointed to the Board shall be
4ineligible to be appointed to the Illinois Public Accountants
5Registration Committee appointed by the Secretary Director.
6Appointments to fill vacancies shall be made in the same manner
7as original appointments for the unexpired portion of the
8vacated term. The membership of the Board shall reasonably
9reflect representation from the geographic areas in this State.
10The members of the Board appointed by the Governor shall
11receive reasonable compensation for their necessary,
12legitimate, and authorized expenses in accordance with the
13Governor's Travel Control Board rules and the Travel Regulation
14Rules. The Governor may terminate the term of any member of the
15Board at any time for cause.
16    Information regarding educational requirements, the
17application process, the examination, and fees shall be
18available on the Board's Internet web site as well as in
19printed documents available from the Board's office.
20    The Board shall adopt all necessary and reasonable rules
21and regulations for the effective administration of this Act.
22Without limiting the foregoing, the Board shall adopt and
23prescribe rules and regulations for a fair and impartial method
24of determining the qualifications of applicants for
25examination and for a fair and impartial method of examination
26of persons under Section 2 and may establish rules for subjects

 

 

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1conditioned and for the transfer of credits from other
2jurisdictions with respect to subjects passed.
3     The Board shall make an annual report of its activities to
4the Governor and the Secretary Director. This report shall
5include a complete operating and financial statement covering
6its operations during the year, the number of examinations
7given, the pass/fail ratio for examinations, and any other
8information deemed appropriate. The Board shall have an audit
9of its books 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;
1193-683, eff. 7-2-04.)
 
12    (225 ILCS 450/2.05)
13    (Section scheduled to be repealed on January 1, 2014)
14    Sec. 2.05. Public Accountant Registration Committee. The
15Secretary Director shall appoint a Public Accountant
16Registration Committee consisting of 7 persons, who shall be
17appointed by and shall serve in an advisory capacity to the
18Secretary Director. Six members must be licensed public
19accountants or Licensed Certified Public Accountants in good
20standing and must be actively engaged in the performance of
21accountancy activities as outlined in paragraph (1) of
22subsection (a) of Section 8.05 practice of public accounting in
23this State and one member must be a member of the public who is
24not licensed under this Act or a similar Act of another
25jurisdiction and who has no connection with the accounting or

 

 

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1public accounting profession. Members shall serve 4-year terms
2and until their successors are appointed and qualified. No
3member shall be reappointed to the Committee for more than 2
4full terms. Appointments to fill vacancies shall be made in the
5same manner as original appointments for the unexpired portion
6of the vacated term. The membership of the Committee shall
7reasonably reflect representation from the geographic areas in
8this State. The members of the Committee appointed by the
9Secretary Director shall receive reasonable compensation, as
10determined by the Department, for the necessary, legitimate,
11and authorized expenses approved by the Department. All
12expenses shall be paid from the Registered Certified Public
13Accountants' Administration and Disciplinary Fund. The
14Secretary Director may terminate the appointment of any member
15for cause. The Secretary Director shall consider the advice and
16recommendations of the Committee on questions involving
17standards of professional conduct, discipline, and
18qualifications of candidates and licensees under this Act.
19(Source: P.A. 93-683, eff. 7-2-04.)
 
20    (225 ILCS 450/2.1)  (from Ch. 111, par. 5503)
21    (Section scheduled to be repealed on January 1, 2014)
22    Sec. 2.1. Administrative Procedure Act. The Illinois
23Administrative Procedure Act is hereby expressly adopted and
24incorporated herein as if all of the provisions of that Act
25were included in this Act, except that the provision of

 

 

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1subsection (d) of Section 10-65 of the Illinois Administrative
2Procedure Act that provides that at hearings the licensee has
3the right to show compliance with all lawful requirements for
4retention, continuation or renewal of the license is
5specifically excluded. For the purposes of this Act the notice
6required under Section 10-25 of the Administrative Procedure
7Act is deemed sufficient when mailed to the licensee's address
8of record the last known address of a party.
9(Source: P.A. 88-45.)
 
10    (225 ILCS 450/4)  (from Ch. 111, par. 5505)
11    (Section scheduled to be repealed on January 1, 2014)
12    Sec. 4. Transitional language.
13    (a) The provisions of this Act shall not be construed to
14invalidate any certificates as certified public accountants
15issued by the University under "An Act to regulate the
16profession of public accountants", approved May 15, 1903, as
17amended, or any certificates as Certified Public Accountants
18issued by the University or the Board under Section 4 of "An
19Act to regulate the practice of public accounting and to repeal
20certain acts therein named", approved July 22, 1943, as
21amended, which certificates shall be valid and in force as
22though issued under the provisions of this Act.
23    (b) Before July 1, 2012, persons who have received a
24Certified Public Accountant (CPA) Certificate issued by the
25Board or University of Examiners or holding similar

 

 

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1certifications from other jurisdictions with equivalent
2educational requirements and examination standards may apply
3to the Department on forms supplied by the Department for and
4may be granted a registration as a Registered Certified Public
5Accountant from the Department upon payment of the required
6fee.
7    (c) Beginning with the 2006 renewal, the Department shall
8cease to issue a license as a Public Accountant. Any person
9holding a valid license as a Public Accountant prior to
10September 30, 2006 who meets the conditions for renewal of a
11license under this Act, shall be issued a license as a Licensed
12Certified Public Accountant under this Act and shall be subject
13to continued regulation by the Department under this Act. The
14Department may adopt rules to implement this Section.
15    (d) The Department shall not issue any new registrations as
16a Registered Certified Public Accountant on or after July 1,
172012. After that date, any applicant for licensure under this
18Act shall apply for a license as a Licensed Certified Public
19Accountant and shall meet the requirements set forth in this
20Act. Any person issued a Certified Public Accountant
21certificate who has been issued a registration as a Registered
22Certified Public Accountant may renew the registration under
23the provisions of this Act and that person may continue to
24renew or restore the registration during his or her lifetime,
25subject only to the renewal or restoration requirements for the
26registration under this Act. Such registration shall be subject

 

 

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1to the disciplinary provisions of this Act.
2    (e) (Blank). On and after October 1, 2006, no person shall
3hold himself or herself out to the public in this State in any
4manner by using the title "certified public accountant" or use
5the abbreviation "C.P.A." or "CPA" or any words or letters to
6indicate that the person using the same is a certified public
7accountant unless he or she maintains a current registration or
8license issued by the Department or is exercising the practice
9privilege afforded under Section 5.2 of this Act. It shall be a
10violation of this Act for an individual to assume or use the
11title "certified public accountant" or use the abbreviation
12"C.P.A." or "CPA" or any words or letters to indicate that the
13person using the same is a certified public accountant in this
14State unless he or she maintains a current registration or
15license issued by the Department or is exercising the practice
16privilege afforded under Section 5.2 of this Act.
17(Source: P.A. 95-386, eff. 1-1-08; 96-945, eff. 6-25-10.)
 
18    (225 ILCS 450/5)  (from Ch. 111, par. 5506)
19    (Section scheduled to be repealed on January 1, 2014)
20    Sec. 5. Certification of out-of-State accountants.
21    (a) Upon review of an applicant's educational and
22examination credentials by the Board of Examiners, the
23Department may issue a registration as a registered certified
24public accountant, without examination, to any applicant who
25holds a valid unrevoked certificate as a certified public

 

 

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1accountant issued under the laws of any other state or
2territory of the United States or the District of Columbia,
3provided:
4        (1) that the state that issued the certificate has
5    certification requirements that have been determined by
6    the Board to be substantially equivalent to the
7    certification requirements of Illinois and grants similar
8    rights to those that Illinois grants to certificate
9    holders;
10        (2) that the state that issued the certificate has
11    certification requirements that the Board has determined
12    not to be substantially equivalent to the certification
13    requirements of Illinois or does not grant similar rights
14    to Illinois certificate holders, but the Board determines
15    that the individual applicant possesses personal
16    qualifications substantially equivalent to Illinois'
17    certification requirements; or
18        (3) that the applicant does not qualify under
19    subsections (1) or (2) above, but the following conditions
20    are met:
21            (A) the certificate was granted to the applicant on
22        the basis of the Uniform Certified Public Accountant
23        examination; and
24            (B) the educational qualifications of the
25        applicant for a certificate, at the time of the written
26        examination, were equivalent to the educational

 

 

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1        qualifications then required of applicants for
2        admission to the Illinois examination for certified
3        public accountant or, the applicant has, after passing
4        the examination upon which his or her certificate was
5        based, not less than 5 years of experience in the
6        practice of public accounting within the 10 years
7        immediately preceding this application, otherwise
8        reasonably considered acceptable by the Board.
9    (b) In determining the substantial equivalency of the
10requirements for certification or the rights granted to
11certificate holders pursuant to this Section, the Department
12may rely on the determinations of the National Qualification
13Appraisal Service of the National Association of State Boards
14of Accountancy or any other qualification appraisal service, as
15it deems appropriate.
16(Source: P.A. 93-683, eff. 7-2-04.)
 
17    (225 ILCS 450/5.2)
18    (Section scheduled to be repealed on January 1, 2014)
19    Sec. 5.2. Substantial equivalency.
20    (a) An individual whose principal place of business is not
21in this State shall have all the privileges of a person
22licensed under this Act as a licensed certified public
23accountant without the need to obtain a license or registration
24from the Department or to file notice with the Department, if
25the individual:

 

 

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1        (1) holds a valid license as a certified public
2    accountant issued by another state that the National
3    Qualification Appraisal Service of the National
4    Association of State Boards of Accountancy has verified to
5    be in substantial equivalence with the CPA licensure
6    requirements of the Uniform Accountancy Act of the American
7    Institute of Certified Public Accountants and the National
8    Association of State Boards of Accountancy; or
9        (2) holds a valid license as a certified public
10    accountant issued by another state and obtains from the
11    National Qualification Appraisal Service of the National
12    Association of State Boards of Accountancy verification
13    that the individual's CPA qualifications are substantially
14    equivalent to the CPA licensure requirements of the Uniform
15    Accountancy Act of the American Institute of Certified
16    Public Accountants and the National Association of State
17    Boards of Accountancy; however, any individual who has
18    passed the Uniform CPA Examination and holds a valid
19    license issued by any other state prior to January 1, 2012
20    shall be exempt from the education requirements of Section
21    3 of this Act for the purposes of this item (2).
22    (b) Notwithstanding any other provision of law, an
23individual who offers or renders professional services under
24this Section, whether in person or by mail, telephone, or
25electronic means, shall be granted practice privileges in this
26State and no notice or other submission must be provided by any

 

 

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1such individual.
2    (c) An individual licensee of another state who is
3exercising the privilege afforded under this Section and the
4CPA firm that employs such individual, if any, as a condition
5of the grant of this privilege, hereby simultaneously consents:
6        (1) to the personal and subject matter jurisdiction and
7    disciplinary authority of the Department;
8        (2) to comply with this Act and the Department's rules
9    adopted under this Act;
10        (3) that in the event that the license from the state
11    of the individual's principal place of business is no
12    longer valid, the individual shall cease offering or
13    rendering accountancy activities as outlined in paragraphs
14    (1) and (2) of Section 8.05 professional services in this
15    State individually or on behalf of a CPA firm; and
16        (4) to the appointment of the state board that issued
17    the individual's or the CPA firm's license as the agent
18    upon which process may be served in any action or
19    proceeding by the Department against the individual.
20    (d) An individual licensee who qualifies for practice
21privileges under this Section who, for any entity headquartered
22in this State, performs (i) a financial statement audit or
23other engagement in accordance with Statements on Auditing
24Standards; (ii) an examination of prospective financial
25information in accordance with Statements on Standards for
26Attestation Engagements; or (iii) an engagement in accordance

 

 

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1with Public Company Accounting Oversight Board Auditing
2Standards may only do so through a firm licensed under this
3Act.
4(Source: P.A. 95-386, eff. 1-1-08.)
 
5    (225 ILCS 450/8.05 new)
6    Sec. 8.05. Accountancy activities.
7    (a) Accountancy activities are services performed by a CPA,
8including:
9        (1) signing, affixing, or associating the names used by
10    a CPA firm to any report expressing an assurance on a
11    financial statement or disclaiming an opinion on a
12    financial statement based on an audit or examination of
13    that statement or to express assurance on a financial
14    statement;
15        (2) other attestation engagements not otherwise
16    defined in paragraph (1); or
17        (3) offering to perform or performing one or more types
18    of the following services involving the use of professional
19    skills or competencies: accounting, management, financial
20    or consulting services, compilations, internal audit,
21    preparation of tax returns, furnishing advice on tax
22    matters, or representations of taxpayers; this includes
23    the teaching of any of these areas at the college or
24    university level.
25    (b) If offering or performing accountancy activities using

 

 

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1the CPA title set forth in paragraphs (1), (2), and (3) of
2subsection (a) of this Section, then:
3        (1) the activities identified in subsection (1) may
4    only be performed by licensed CPA's;
5        (2) the activities identified in subsection (2) may
6    only be performed by licensed or registered CPA's; and
7        (3) the activities identified in subsection (3) are not
8    restricted to licensed or registered CPA's, subject to the
9    provisions of Section 9.02 of this Act.
 
10    (225 ILCS 450/9.02)
11    (Section scheduled to be repealed on January 1, 2014)
12    Sec. 9.02. Unauthorized use of title; violation; civil
13penalty.
14    (a) The use of the title "certified public accountant" or
15abbreviation "C.P.A." or any similar terms that may be
16misleading to the public indicating that an individual or the
17members of a CPA firm are certified public accountants is
18prohibited unless (1) the individual or members are holders of
19an effective unrevoked license or registration or qualify for
20the practice privilege under Section 5.2 of this Act and (2)
21the CPA firm is licensed as a certified public accounting firm
22or a professional service corporation by the Department. Any
23person who holds himself or herself out to the public as a
24certified public accountant in this State by using the title
25"certified public accountant" or the abbreviation "CPA" or any

 

 

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1words or letters to indicate that the person using the same is
2a certified public accountant without having been issued a
3registration or a license as a certified public accountant
4under the provisions of this Act or without qualifying for the
5practice privilege under Section 5.2 of this Act shall, in
6addition to any other penalty provided by law, pay a civil
7penalty to the Department in an amount not to exceed $5,000 for
8each offense as determined by the Department. The civil penalty
9shall be assessed by the Department after a hearing is held in
10accordance with the provisions set forth in this Act regarding
11the provision of a hearing for the discipline of a licensee.
12    (a-5) A civil penalty may be assessed by the Department in
13an amount not to exceed $10,000 for each offense as determined
14by the Department and in addition to any other civil penalty
15provided by law. The civil penalty shall be assessed by the
16Department after a hearing is held in accordance with the
17provisions set forth in this Act regarding the provision of a
18hearing for the discipline of a licensee.
19    (b) The Department has the authority and power to
20investigate any and all alleged improper use of the certified
21public accountant title or CPA designation and any and all
22unlicensed activity.
23    (c) The civil penalty shall be paid within 60 days after
24the effective date of the order imposing the civil penalty. The
25order shall constitute a judgment and may be filed and
26execution had thereon in the same manner as any judgment from

 

 

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1any court of record.
2(Source: P.A. 95-386, eff. 1-1-08.)
 
3    (225 ILCS 450/9.2)  (from Ch. 111, par. 5510.2)
4    (Section scheduled to be repealed on January 1, 2014)
5    Sec. 9.2. Powers and duties of the Department.
6    (a) The Department shall exercise the powers and duties
7prescribed by "The Civil Administrative Code of Illinois" for
8the administration of licensing acts and shall exercise such
9other powers and duties invested by this Act.
10    (b) The Secretary Director may promulgate rules consistent
11with the provisions of this Act for the administration and
12enforcement of the provisions of this Act for which the
13Department is responsible and for the payment of fees connected
14therewith and may prescribe forms which shall be issued in
15connection therewith. The rules shall include standards and
16criteria for licensure and professional conduct and
17discipline.
18    (c) The Department may solicit the advice and expert
19knowledge of the Committee or the Board on any matter relating
20to the administration and enforcement of this Act.
21    The Department may in its discretion, but shall not be
22required to, employ or utilize the legal services of outside
23counsel and the investigative services of outside personnel to
24assist the Department and is authorized to pay for such
25services from the Registered Certified Public Accountants'

 

 

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1Administration and Disciplinary Fund.
2(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
3    (225 ILCS 450/9.3)
4    (Section scheduled to be repealed on January 1, 2014)
5    Sec. 9.3. Sharing of information. Notwithstanding any
6other provision of this Act, for the purpose of carrying out
7their respective duties and responsibilities under this Act and
8to effectuate the purpose of this Act, both the Board of
9Examiners and the Department of Financial and Professional
10Regulation are authorized and directed to share information
11with each other regarding those individuals and entities
12licensed or certified or applying for licensure or
13certification under this Act.
14(Source: P.A. 94-779, eff. 5-19-06.)
 
15    (225 ILCS 450/13)  (from Ch. 111, par. 5514)
16    (Section scheduled to be repealed on January 1, 2014)
17    Sec. 13. Application for licensure.
18    (a) A person, CPA firm, domestic or foreign entity
19organized as a sole proprietorship, professional service
20corporation, partnership, or registered limited liability
21partnership or any other form of organization that is
22performing accountancy activities in accordance with this Act
23limited liability company, or corporation desiring to practice
24public accounting in this State shall make application to the

 

 

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1Department for licensure as a licensed certified public
2accountant and shall pay the fee required by rule.
3    Applicants have 3 years from the date of application to
4complete the application process. If the process has not been
5completed in 3 years, the application shall be denied, the fee
6forfeited and the applicant must reapply and meet the
7requirements in effect at the time of reapplication.
8    (b) Any firm, whether organized as a partnership, limited
9liability company, corporation, or other entity, that (i) has
10an office in this State that uses the title "CPA" or "CPA
11firm"; (ii) has an office in this State that performs
12accountancy activities public accounting services, as defined
13in paragraph (1) of Section 8.05 8 of this Act; or (iii) does
14not have an office in this State, but performs attest services,
15as set forth in subsection (d) of Section 5.2 of this Act, for
16a client that has its home office in this State must hold a
17license issued under this Act.
18    (c) A firm that does not have an office in this State may
19perform a review of a financial statement in accordance with
20the Statements on Standards for Accounting and Review Services
21for a client with its home office in this State and may use the
22title "CPA" or "CPA firm" without obtaining a license under
23this Act, only if the firm (i) performs such services through
24individuals with practice privileges under Section 5.2 of this
25Act; (ii) satisfies any peer review requirements in those
26states in which the individuals with practice privileges under

 

 

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1Section 5.2 have their principal place of business; and (iii)
2meets the qualifications set forth in item (2) of subsection
3(b) of Section 14 of this Act.
4    (d) A firm that is not subject to the requirements of
5subsection (b) or (c) of this Section may perform professional
6services that are not regulated under subsection (b) or (c) of
7this Section while using the title "CPA" or "CPA firm" in this
8State without obtaining a license under this Act if the firm
9(i) performs such services through individuals with practice
10privileges under Section 5.2 of this Act and (ii) may lawfully
11perform such services in the state where those individuals with
12practice privileges under Section 5.2 of this Act have their
13principal place of business.
14(Source: P.A. 95-386, eff. 1-1-08.)
 
15    (225 ILCS 450/14)  (from Ch. 111, par. 5515)
16    (Section scheduled to be repealed on January 1, 2014)
17    Sec. 14. Qualifications. The Department may license as
18licensed certified public accountants the following:
19    (a) All persons who have received certificates as certified
20public accountants from the Board or who hereafter receive
21registrations as registered certified public accountants from
22the Department who have had at least one year of full-time
23experience, or its equivalent, providing any type of service or
24advice involving the use of accounting, attest, audit,
25management advisory, financial advisory, tax, or consulting

 

 

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1skills, or other attestation engagements which may be gained
2through employment in government, industry, academia, or
3public practice.
4    If the applicant's certificate as a certified public
5accountant from the Board or the applicant's registration as a
6Registered Certified Public Accountant registered certified
7public accountant from the Department was issued more than 4
8years prior to the application for a license under this
9Section, the applicant shall submit any evidence the Department
10may require showing the applicant has completed not less than
1190 hours of continuing professional education acceptable to the
12Department within the 3 years immediately preceding the date of
13application.
14    (b) All partnerships, limited liability companies, or
15corporations, or other entities engaged in the practice of
16public accounting in this State and meeting the following
17requirements:
18        (1) (Blank).
19        (2) A majority of the ownership of the firm, in terms
20    of financial interests and voting rights of all partners,
21    officers, shareholders, members, or managers, belongs to
22    persons licensed in some state, and the partners, officers,
23    shareholders, members, or managers whose principal place
24    of business is in this State and who perform accountancy
25    activities practice public accounting in this State, as
26    defined in paragraph (1) of Section 8.05 8 of this Act,

 

 

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1    hold a valid license issued by this State. An individual
2    exercising the practice privilege afforded under Section
3    5.2 who performs services for which a firm license is
4    required under subsection (d) of Section 5.2 shall not be
5    required to obtain an individual license under this Act.
6        (3) It shall be lawful for a nonprofit cooperative
7    association engaged in rendering an auditing and
8    accounting service to its members only, to continue to
9    render that service provided that the rendering of auditing
10    and accounting service by the cooperative association
11    shall at all times be under the control and supervision of
12    licensed certified public accountants.
13        (4) The Department may adopt rules and regulations as
14    necessary to provide for the practice of public accounting
15    by business entities that may be otherwise authorized by
16    law to conduct business in Illinois.
17        (5) A majority of the ownership of the firm, in terms
18    of financial interests and voting rights of all partners,
19    officers, shareholders, members, or managers, belongs to
20    the person or persons that hold a valid registered CPA
21    credential in some state, and the partners, officers,
22    shareholders, members, or managers whose principal place
23    of business is in this State and hold a valid registration
24    issued by this State.
25(Source: P.A. 95-386, eff. 1-1-08.)
 

 

 

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1    (225 ILCS 450/14.1)
2    (Section scheduled to be repealed on January 1, 2014)
3    Sec. 14.1. Foreign accountants. The Department may shall
4issue a license as a licensed CPA to a holder of a foreign
5designation, granted in a foreign country entitling the holder
6thereof to engage in the practice of public accounting,
7provided that:
8        (a) the applicant is the holder of a certificate as a
9    certified public accountant from the Board or a
10    registration as a registered certified public accountant
11    from the Department issued under this Act;
12        (b) the foreign authority that granted the designation
13    makes similar provision to allow a person who holds a valid
14    license issued by this State to obtain a foreign
15    authority's comparable designation;
16        (c) the foreign designation (i) was duly issued by a
17    foreign authority that regulates the practice of public
18    accounting and the foreign designation has not expired or
19    been revoked or suspended; (ii) entitles the holder to
20    issue reports upon financial statements; and (iii) was
21    issued upon the basis of educational, examination, and
22    experience requirements established by the foreign
23    authority or by law; and
24        (d) the applicant (i) received the designation based on
25    standards substantially equivalent to those in effect in
26    this State at the time the foreign designation was granted;

 

 

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1    and (ii) completed an experience requirement,
2    substantially equivalent to the requirement set out in
3    Section 14, in the jurisdiction that granted the foreign
4    designation or has completed 5 years of experience in the
5    practice of public accounting in this State, or meets
6    equivalent requirements prescribed by the Department by
7    rule, within the 10 years immediately preceding the
8    application.
9    Applicants have 3 years from the date of application to
10complete the application process. If the process has not been
11completed in 3 years, the application shall be denied, the fee
12shall be forfeited, and the applicant must reapply and meet the
13requirements in effect at the time of reapplication.
14(Source: P.A. 95-331, eff. 8-21-07.)
 
15    (225 ILCS 450/14.2)
16    (Section scheduled to be repealed on January 1, 2014)
17    Sec. 14.2. Licensure by endorsement.
18    (a) The Department shall issue a license as a licensed
19certified public accountant to any applicant who holds a valid
20license or similar certification certificate as a certified
21public accountant issued from any state by the Board of
22Examiners or similar certification from another jurisdiction
23with equivalent educational requirements and examination
24standards, applies to the Department on forms supplied by the
25Department, and pays the required fee, provided:

 

 

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1        (1) the individual applicant is determined by the
2    Department to possess qualifications substantially
3    equivalent to this State's current licensing requirements;
4        (2) at the time the applicant received his or her
5    current valid and unrevoked license or permit, the
6    applicant possessed qualifications substantially
7    equivalent to the qualifications for licensure then in
8    effect in this State; or
9        (3) the applicant has, after passing the examination
10    upon which his or her license or other permit to practice
11    was based, not less than 4 years of experience as outlined
12    in Section 14 of this Act in the practice of public
13    accounting within the 10 years immediately before the
14    application.
15    (b) In determining the substantial equivalency of any
16state's requirements to Illinois' requirements, the Department
17may rely on the determinations of the National Qualification
18Appraisal Service of the National Association of State Boards
19of Accountancy or such other qualification appraisal service as
20it deems appropriate.
21    (c) Applicants have 3 years from the date of application to
22complete the application process. If the process has not been
23completed in 3 years, the application shall be denied, the fee
24shall be forfeited, and the applicant must reapply and meet the
25requirements in effect at the time of reapplication.
26(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 

 

 

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1    (225 ILCS 450/14.3)
2    (Section scheduled to be repealed on January 1, 2014)
3    Sec. 14.3. Additional requirements for firms. In addition
4to the ownership requirements set forth in subsection (b) of
5Section 14, all firms licensed under this Act shall meet the
6following requirements:
7    (a) All owners of the firm, whether licensed or not, shall
8be active participants in the firm or its affiliated entities.
9    (b) An individual who supervises services for which a
10license is required under paragraph (1) of Section 8.05 8 of
11this Act, who signs or authorizes another to sign any report
12for which a license is required under paragraph (1) of Section
138.05 8 of this Act, or who supervises services for which a firm
14license is required under subsection (d) of Section 5.2 of this
15Act shall hold a valid, active Licensed Certified Public
16Accountant license from this State or another state and shall
17comply with such additional experience requirements as may be
18required by rule of the Department.
19    (c) The firm shall require that all owners of the firm,
20whether or not certified or licensed under this Act, comply
21with rules promulgated under this Act.
22    (d) The firm shall designate to the Department in writing
23an individual licensed under this Act or, in the case of a firm
24that must have a license pursuant to subsection (b) of Section
2513 of this Act, a licensee of another state who meets the

 

 

HB5773- 31 -LRB097 20475 CEL 66007 b

1requirements set out in item (1) or (2) of subsection (a) of
2Section 5.2 of this Act, who shall be responsible for the
3proper registration of the firm.
4    (e) Applicants have 3 years from the date of application to
5complete the application process. If the process has not been
6completed in 3 years, the application shall be denied, the fee
7shall be forfeited, and the applicant must reapply and meet the
8requirements in effect at the time of reapplication.
9(Source: P.A. 94-779, eff. 5-19-06; 95-386, eff. 1-1-08.)
 
10    (225 ILCS 450/16)  (from Ch. 111, par. 5517)
11    (Section scheduled to be repealed on January 1, 2014)
12    Sec. 16. Expiration and renewal of licenses; renewal of
13registration; continuing education.
14    (a) The expiration date and renewal period for each license
15issued under this Act shall be set by rule.
16    (b) Every holder of a license or registration under this
17Act may renew such license or registration before the
18expiration date upon payment of the required renewal fee as set
19by rule.
20    (c) Every application for renewal of a license by a
21licensed certified public accountant who has been licensed
22under this Act for 3 years or more shall be accompanied or
23supported by any evidence the Department shall prescribe, in
24satisfaction of completing, each 3 years, not less than 120
25hours of continuing professional education as prescribed by

 

 

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1Department rules programs in subjects given by continuing
2education sponsors registered by the Department upon
3recommendation of the Committee. Of the 120 hours, not less
4than 4 hours shall be courses covering the subject of
5professional ethics. All continuing education sponsors
6applying to the Department for registration shall be required
7to submit an initial nonrefundable application fee set by
8Department rule. Each registered continuing education sponsor
9shall be required to pay an annual renewal fee set by
10Department rule. Publicly supported colleges, universities,
11and governmental agencies located in Illinois are exempt from
12payment of any fees required for continuing education sponsor
13registration. Failure by a continuing education sponsor to be
14licensed or pay the fees prescribed in this Act, or to comply
15with the rules and regulations established by the Department
16under this Section regarding requirements for continuing
17education courses or sponsors, shall constitute grounds for
18revocation or denial of renewal of the sponsor's registration.
19    (d) Licensed Certified Public Accountants are exempt from
20the continuing professional education requirement for the
21first renewal period following the original issuance of the
22license.
23    Notwithstanding the provisions of subsection (c), the
24Department may accept courses and sponsors approved by other
25states, by the American Institute of Certified Public
26Accountants, by other state CPA societies, or by national

 

 

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1accrediting organizations such as the National Association of
2State Boards of Accountancy.
3    Failure by an applicant for renewal of a license as a
4licensed certified public accountant to furnish the evidence
5shall constitute grounds for disciplinary action, unless the
6Department in its discretion shall determine the failure to
7have been due to reasonable cause. The Department, in its
8discretion, may renew a license despite failure to furnish
9evidence of satisfaction of requirements of continuing
10education upon condition that the applicant follow a particular
11program or schedule of continuing education. In issuing rules
12and individual orders in respect of requirements of continuing
13education, the Department in its discretion may, among other
14things, use and rely upon guidelines and pronouncements of
15recognized educational and professional associations; may
16prescribe rules for the content, duration, and organization of
17courses; shall take into account the accessibility to
18applicants of such continuing education as it may require, and
19any impediments to interstate practice of public accounting
20that may result from differences in requirements in other
21states; and may provide for relaxation or suspension of
22requirements in regard to applicants who certify that they do
23not intend to engage in the performance of accountancy
24activities practice of public accounting, and for instances of
25individual hardship.
26    The Department shall establish by rule a means for the

 

 

HB5773- 34 -LRB097 20475 CEL 66007 b

1verification of completion of the continuing education
2required by this Section. This verification may be accomplished
3through audits of records maintained by licensees; by requiring
4the filing of continuing education certificates with the
5Department; or by other means established by the Department.
6    The Department may establish, by rule, guidelines for
7acceptance of continuing education on behalf of licensed
8certified public accountants taking continuing education
9courses in other jurisdictions.
10    (e) For renewals on and after July 1, 2012, as a condition
11for granting a renewal license to firms and sole practitioners
12who perform accountancy activities outlined in paragraph (1) of
13Section 8.05 provide services requiring a license under this
14Act, the Department shall require that the firm or sole
15practitioner satisfactorily complete a peer review during the
16immediately preceding 3-year period, accepted by a Peer Review
17Administrator in accordance with established standards for
18performing and reporting on peer reviews, unless the firm or
19sole practitioner is exempted under the provisions of
20subsection (i) of this Section. A firm or sole practitioner
21shall, at the request of the Department, submit to the
22Department a letter from the Peer Review Administrator stating
23the date on which the peer review was satisfactorily completed.
24    A new firm or sole practitioner not subject to subsection
25(l) of this Section shall undergo its first peer review during
26the first full renewal cycle after it is granted its initial

 

 

HB5773- 35 -LRB097 20475 CEL 66007 b

1license.
2    The requirements of this subsection (e) shall not apply to
3any person providing services requiring a license under this
4Act to the extent that such services are provided in the
5capacity of an employee of the Office of the Auditor General or
6to a nonprofit cooperative association engaged in the rendering
7of licensed service to its members only under paragraph (3) of
8subsection (b) of Section 14 of this Act or any of its
9employees to the extent that such services are provided in the
10capacity of an employee of the association.
11    (f) The Department shall approve only Peer Review
12Administrators that the Department finds comply with
13established standards for performing and reporting on peer
14reviews. The Department may adopt rules establishing
15guidelines for peer reviews, which shall do all of the
16following:
17        (1) Require that a peer review be conducted by a
18    reviewer that is independent of the firm reviewed and
19    approved by the Peer Review Administrator under
20    established standards.
21        (2) Other than in the peer review process, prohibit the
22    use or public disclosure of information obtained by the
23    reviewer, the Peer Review Administrator, or the Department
24    during or in connection with the peer review process. The
25    requirement that information not be publicly disclosed
26    shall not apply to a hearing before the Department that the

 

 

HB5773- 36 -LRB097 20475 CEL 66007 b

1    firm or sole practitioner requests be public or to the
2    information described in paragraph (3) of subsection (i) of
3    this Section.
4    (g) If a firm or sole practitioner fails to satisfactorily
5complete a peer review as required by subsection (e) of this
6Section or does not comply with any remedial actions determined
7necessary by the Peer Review Administrator, the Peer Review
8Administrator shall notify the Department of the failure and
9shall submit a record with specific references to the rule,
10statutory provision, professional standards, or other
11applicable authority upon which the Peer Review Administrator
12made its determination and the specific actions taken or failed
13to be taken by the licensee that in the opinion of the Peer
14Review Administrator constitutes a failure to comply. The
15Department may at its discretion or shall upon submission of a
16written application by the firm or sole practitioner hold a
17hearing under Section 20.1 of this Act to determine whether the
18firm or sole practitioner has complied with subsection (e) of
19this Section. The hearing shall be confidential and shall not
20be open to the public unless requested by the firm or sole
21practitioner.
22    (h) The firm or sole practitioner reviewed shall pay for
23any peer review performed. The Peer Review Administrator may
24charge a fee to each firm and sole practitioner sufficient to
25cover costs of administering the peer review program.
26    (i) A firm or sole practitioner shall be exempt from the

 

 

HB5773- 37 -LRB097 20475 CEL 66007 b

1requirement to undergo a peer review if:
2        (1) Within 3 years before the date of application for
3    renewal licensure, the sole practitioner or firm has
4    undergone a peer review conducted in another state or
5    foreign jurisdiction that meets the requirements of
6    paragraphs (1) and (2) of subsection (f) of this Section.
7    The sole practitioner or firm shall, at the request of the
8    Department, submit to the Department a letter from the
9    organization administering the most recent peer review
10    stating the date on which the peer review was completed; or
11        (2) The sole practitioner or firm satisfies all of the
12    following conditions:
13            (A) during the preceding 2 years, the firm or sole
14        practitioner has not accepted or performed any
15        services requiring a license under this Act;
16            (B) the firm or sole practitioner agrees to notify
17        the Department within 30 days of accepting an
18        engagement for services requiring a license under this
19        Act and to undergo a peer review within 18 months after
20        the end of the period covered by the engagement; or
21        (3) For reasons of personal health, military service,
22    or other good cause, the Department determines that the
23    sole practitioner or firm is entitled to an exemption,
24    which may be granted for a period of time not to exceed 12
25    months.
26    (j) If a peer review report indicates that a firm or sole

 

 

HB5773- 38 -LRB097 20475 CEL 66007 b

1practitioner complies with the appropriate professional
2standards and practices set forth in the rules of the
3Department and no further remedial action is required, the Peer
4Review Administrator shall, after issuance of the final letter
5of acceptance, destroy all working papers and documents related
6to the peer review, other than report-related documents and
7documents evidencing completion of remedial actions, if any, in
8accordance with rules established by the Department.
9    (k) (Blank).
10(Source: P.A. 96-945, eff. 6-25-10.)
 
11    (225 ILCS 450/17.1)  (from Ch. 111, par. 5518.1)
12    (Section scheduled to be repealed on January 1, 2014)
13    Sec. 17.1. (a) Any registered certified public accountant
14who has permitted his or her registration to expire or who has
15had his or her registration on inactive status may have his or
16her registration restored by making application to the
17Department and filing proof acceptable to the Department as
18defined by rule of his or her fitness to have his or her
19registration restored, which may include sworn evidence
20certifying to active practice in another jurisdiction
21satisfactory to the Department and by paying the required
22restoration fee.
23    (b) Any licensed certified public accountant who has
24permitted his or her license to expire or who has had his or
25her license on inactive status may have his or her license

 

 

HB5773- 39 -LRB097 20475 CEL 66007 b

1restored by making application to the Department and filing
2proof acceptable to the Department as defined by rule of his or
3her fitness to have his or her license restored, including
4sworn evidence certifying to active practice in another
5jurisdiction satisfactory to the Department and by paying the
6required restoration fee and by submitting proof of the
7required continuing education.
8    (c) If the licensed certified public accountant or
9registered certified public accountant has not maintained an
10active practice in another jurisdiction satisfactory to the
11Department, the Department shall determine, by an evaluation
12program established by rule, fitness to resume active status
13and may require the applicant to complete a period of
14supervised experience.
15    (d) However, any licensed certified public accountant or
16registered certified public accountant whose license or
17registration expired while he was (1) in Federal Service on
18active duty with the Armed Forces of the United States, or the
19State Militia called into service or training, or (2) in
20training or education under the supervision of the United
21States preliminary to induction into the military service, may
22have his license or registration renewed reinstated or restored
23without paying any lapsed renewal and restoration fees if
24within 2 years after honorable termination of such service,
25training or education except under conditions other than
26honorable, he furnished the Department with satisfactory

 

 

HB5773- 40 -LRB097 20475 CEL 66007 b

1evidence to the effect that he has been so engaged and that his
2service, training or education has been so terminated.
3(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
4    (225 ILCS 450/17.2)  (from Ch. 111, par. 5518.2)
5    (Section scheduled to be repealed on January 1, 2014)
6    Sec. 17.2. Inactive status.
7    (a) Any licensed certified public accountant or Registered
8Certified Public Accountant who notifies the Department in
9writing on forms prescribed by the Department, may elect to
10place his license or registration on an inactive status and
11shall, subject to rules of the Department, be excused from
12payment of renewal fees until he notifies the Department in
13writing of his desire to resume active status.
14    (b) Any licensed certified public accountant requesting
15restoration from inactive status shall be required to pay the
16current renewal fee, shall be required to submit proof of the
17required continuing education, and shall be required to comply
18with any requirements established by rule restore his license,
19as provided in this Act.
20    (c) Any Registered Certified Public Accountant requesting
21restoration from inactive status shall be required to pay the
22current renewal fee and shall be required to comply with any
23requirements established by rule.
24    (d) Any licensed certified public accountant who is not a
25registered certified public accountant and wishes to continue

 

 

HB5773- 41 -LRB097 20475 CEL 66007 b

1using the CPA title and whose license is in an inactive status
2shall not perform accountancy activities outlined in Section
38.05 of this Act and must place the word "inactive" adjacent to
4the CPA title not practice public accounting in this State of
5Illinois. A CPA (inactive) is exempt from any continuing
6professional education requirement. A CPA (inactive) may
7perform governance functions on a non-profit volunteer board
8using his or her accountancy skills and competencies if:
9        (1) he or she discloses to the non-profit volunteer
10    board and respective committees that he or she is a CPA
11    (inactive); and
12        (2) he or she is not serving as an audit committee
13    financial expert as defined in Section 407 of the federal
14    Sarbanes-Oxley Act of 2002.
15    (e) Any Registered Certified Public Accountant whose
16registration is in an inactive status shall not in any manner
17hold himself or herself out to the public as a CPA C.P.A. or
18R.C.P.A.
19    The Department may, in its discretion, license as a
20licensed certified public accountant, on payment of the
21required fee, an applicant who is a licensed certified public
22accountant licensed under the laws of another jurisdiction if
23the requirements for licensure of licensed certified public
24accountants in the jurisdiction in which the applicant was
25licensed were, at the date of his licensure, substantially
26equivalent to the requirements in force in this State on that

 

 

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1date.
2    Applicants have 3 years from the date of application to
3complete the application process. If the process has not been
4completed in 3 years, the application shall be denied, the fee
5forfeited and the applicant must reapply and meet the
6requirements in effect at the time of reapplication.
7(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
8    (225 ILCS 450/19)  (from Ch. 111, par. 5520)
9    (Section scheduled to be repealed on January 1, 2014)
10    Sec. 19. Hearings.
11    (a) The Committee established under the provisions of
12Section 2.05 shall, upon designation by the Secretary Director,
13hear charges which, if proved, would constitute grounds for
14disciplinary action; shall hear applications for restoration
15of a license and the issuance of a license or registration as a
16licensed certified public accountant or registered certified
17public accountant of any person, partnership, limited
18liability company, or corporation whose license or
19registration has been suspended or revoked; and shall report
20its findings and recommendations in connection therewith to the
21Secretary Director, all as provided in Section 20.1 20.01. The
22Department shall also have power to promulgate and amend rules
23of professional conduct that shall apply to persons registered
24or licensed under this Act.
25    (b) In rendering an order, the Department shall take into

 

 

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1consideration the facts and circumstances involving the type of
2acts or omissions in subsection (a), including, but not limited
3to:
4        (1) the extent to which public confidence in the public
5    accounting profession was, might have been, or may be
6    injured;
7        (2) the degree of trust and dependence among the
8    involved parties;
9        (3) the character and degree of financial or economic
10    harm that did or might have resulted; and
11        (4) the intent or mental state of the person charged at
12    the time of the acts or omissions.
13    (c) The Department shall reissue the license or
14registration upon a showing that the disciplined licensee or
15registrant has complied with all of the terms and conditions
16set forth in the final order.
17(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
18    (225 ILCS 450/20.01)  (from Ch. 111, par. 5521.01)
19    (Section scheduled to be repealed on January 1, 2014)
20    Sec. 20.01. Grounds for discipline; license or
21registration.
22    (a) The Department may refuse to issue or renew, or may
23revoke, suspend, or reprimand any registration or registrant,
24any license or licensee, place a licensee or registrant on
25probation for a period of time subject to any conditions the

 

 

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1Department may specify including requiring the licensee or
2registrant to attend continuing education courses or to work
3under the supervision of another licensee or registrant, impose
4a fine not to exceed $10,000 $5,000 for each violation,
5restrict the authorized scope of practice, or require a
6licensee or registrant to undergo a peer review program, for
7any one or more of the following:
8        (1) Violation of any provision of this Act or rule
9    adopted by the Department under this Act or violation of
10    professional standards.
11        (2) Dishonesty, fraud, or deceit in obtaining a license
12    or registration. Attempting to procure a license or
13    registration to practice under this Act by bribery or
14    fraudulent misrepresentations.
15        (3) Cancellation, revocation, suspension, or refusal
16    to renew a license or privileges under Section 5.2 for
17    disciplinary reasons in any other state for any cause.
18    Having a license to practice public accounting or
19    registration revoked, suspended, or otherwise acted
20    against, including the denial of licensure or
21    registration, by the licensing or registering authority of
22    another state, territory, or country, including but not
23    limited to the District of Columbia, or any United States
24    territory. No disciplinary action shall be taken in
25    Illinois if the action taken in another jurisdiction was
26    based upon failure to meet the continuing professional

 

 

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1    education requirements of that jurisdiction and the
2    applicable Illinois continuing professional education
3    requirements are met.
4        (4) Failure, on the part of a licensee under Section 13
5    or registrant under Section 16, to maintain compliance with
6    the requirements for issuance or renewal of a license,
7    permit, or registration or to report changes to the
8    Department. Being convicted or found guilty, regardless of
9    adjudication, of a crime in any jurisdiction which directly
10    relates to the practice of public accounting or the ability
11    to practice public accounting or as a Registered Certified
12    Public Accountant.
13        (5) Revocation or suspension of the right to practice
14    by or before any state or federal regulatory authority or
15    by the Public Company Accounting Oversight Board. Making or
16    filing a report or record which the registrant or licensee
17    knows to be false, willfully failing to file a report or
18    record required by state or federal law, willfully impeding
19    or obstructing the filing, or inducing another person to
20    impede or obstruct the filing. The reports or records shall
21    include only those that are signed in the capacity of a
22    licensed certified public accountant or a registered
23    certified public accountant.
24        (6) Dishonesty, fraud, deceit, or gross negligence in
25    the performance of services as a licensee or registrant or
26    individual granted privileges under Section 5.2.

 

 

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1    Conviction in this or another State or the District of
2    Columbia, or any United States Territory, of any crime that
3    is punishable by one year or more in prison or conviction
4    of a crime in a federal court that is punishable by one
5    year or more in prison.
6        (7) Conviction of a felony, or any other crime an
7    element of which is dishonesty, fraud, or deceit, under the
8    laws of the United States, of this State, or of any other
9    state if the acts involved would have constituted a crime
10    under the laws of this State. Proof that the licensee or
11    registrant is guilty of fraud or deceit, or of gross
12    negligence, incompetency, or misconduct, in the practice
13    of public accounting.
14        (8) Performance of any fraudulent act while holding a
15    license or privilege issued under this Act or prior law.
16    Violation of any rule adopted under this Act.
17        (9) Any conduct reflecting adversely upon the
18    licensee's fitness to perform services while a licensee or
19    individual granted privileges under Section 5.2.
20    Practicing on a revoked, suspended, or inactive license or
21    registration.
22        (10) Making any false or misleading statement or
23    verification in support of an application for a license
24    filed by another. Suspension or revocation of the right to
25    practice before any state or federal agency.
26        (11) Conviction of any crime under the laws of the

 

 

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1    United States or any state or territory of the United
2    States that is a felony or misdemeanor and has dishonesty
3    as an essential element, or of any crime that is directly
4    related to the practice of the profession.
5        (12) Making any misrepresentation for the purpose of
6    obtaining a license, or registration or material
7    misstatement in furnishing information to the Department.
8        (13) Aiding or assisting another person in violating
9    any provision of this Act or rules promulgated hereunder.
10        (14) Engaging in dishonorable, unethical, or
11    unprofessional conduct of a character likely to deceive,
12    defraud, or harm the public.
13        (15) Habitual or excessive use or addiction to alcohol,
14    narcotics, stimulants, or any other chemical agent or drug
15    that results in the inability to practice with reasonable
16    skill, judgment, or safety.
17        (16) Directly or indirectly giving to or receiving from
18    any person, firm, corporation, partnership, or association
19    any fee, commission, rebate, or other form of compensation
20    for any professional service not actually rendered.
21        (17) Physical or mental disability, including
22    deterioration through the aging process or loss of
23    abilities and skills that results in the inability to
24    practice the profession with reasonable judgment, skill or
25    safety.
26        (18) Solicitation of professional services by using

 

 

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1    false or misleading advertising.
2        (11) (19) Failure to file a return, or pay the tax,
3    penalty or interest shown in a filed return, or to pay any
4    final assessment of tax, penalty or interest, as required
5    by any tax Act administered by the Illinois Department of
6    Revenue or any successor agency or the Internal Revenue
7    Service or any successor agency.
8        (20) Practicing or attempting to practice under a name
9    other than the full name as shown on the license or
10    registration or any other legally authorized name.
11        (21) A finding by the Department that a licensee or
12    registrant has not complied with a provision of any lawful
13    order issued by the Department.
14        (22) Making a false statement to the Department
15    regarding compliance with continuing professional
16    education or peer review requirements.
17        (12) (23) Failing to make a substantive response to a
18    request for information by the Department within 30 days of
19    the request.
20    (a-5) The Department shall deny any application for a
21license, registration, or renewal, without hearing, to any
22person who has defaulted on an educational loan guaranteed by
23the Illinois Student Assistance Commission; however, the
24Department may issue a license, registration, or renewal if the
25person in default has established a satisfactory repayment
26record as determined by the Illinois Student Assistance

 

 

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1Commission.
2    (b) (Blank).
3    (c) The determination by a court that a licensee or
4registrant is subject to involuntary admission or judicial
5admission as provided in the Mental Health and Developmental
6Disabilities Code shall result in the automatic suspension of
7his or her license or registration. The licensee, registrant,
8or their agent shall be responsible for notifying the
9Department of the determination by the court that the licensee
10or registrant is subject to involuntary admission or judicial
11admission as provided in the Mental Health and Developmental
12Disabilities Code. The licensee or registrant shall also notify
13the Department upon discharge so that a determination may be
14made under item (9) of subsection (a) whether the licensee or
15registrant may resume practice. In rendering an order, the
16Department shall take into consideration the facts and
17circumstances involving the type of acts or omissions in
18subsection (a) including, but not limited to:
19        (1) the extent to which public confidence in the public
20    accounting profession was, might have been, or may be
21    injured;
22        (2) the degree of trust and dependence among the
23    involved parties;
24        (3) the character and degree of financial or economic
25    harm which did or might have resulted; and
26        (4) the intent or mental state of the person charged at

 

 

HB5773- 50 -LRB097 20475 CEL 66007 b

1    the time of the acts or omissions.
2    (d) (Blank). The Department shall reissue the license or
3registration upon a showing that the disciplined licensee or
4registrant has complied with all of the terms and conditions
5set forth in the final order.
6    (e) (Blank). The Department shall deny any application for
7a license, registration, or renewal, without hearing, to any
8person who has defaulted on an educational loan guaranteed by
9the Illinois Student Assistance Commission; however, the
10Department may issue a license, registration, or renewal if the
11person in default has established a satisfactory repayment
12record as determined by the Illinois Student Assistance
13Commission.
14    (f) (Blank). The determination by a court that a licensee
15or registrant is subject to involuntary admission or judicial
16admission as provided in the Mental Health and Developmental
17Disabilities Code will result in the automatic suspension of
18his or her license or registration. The licensee or registrant
19shall be responsible for notifying the Department of the
20determination by the court that the licensee or registrant is
21subject to involuntary admission or judicial admission as
22provided in the Mental Health and Developmental Disabilities
23Code. The licensee or registrant shall also notify the
24Department upon discharge so that a determination may be made
25under item (17) of subsection (a) whether the licensee or
26registrant may resume practice.

 

 

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1(Source: P.A. 93-629, eff. 12-23-03; 93-683, eff. 7-2-04;
294-779, eff. 5-19-06.)
 
3    (225 ILCS 450/20.1)  (from Ch. 111, par. 5522)
4    (Section scheduled to be repealed on January 1, 2014)
5    Sec. 20.1. Investigations; notice; hearing. The Department
6may, upon its own motion, and shall, upon the verified
7complaint in writing of any person setting forth facts which,
8if proved, would constitute grounds for disciplinary action as
9set forth in Section 20.01, investigate the actions of any
10person or entity. The Department may refer complaints and
11investigations to a disciplinary body of the accounting
12profession for technical assistance. The results of an
13investigation and recommendations of the disciplinary body may
14be considered by the Department, but shall not be considered
15determinative and the Department shall not in any way be
16obligated to take any action or be bound by the results of the
17accounting profession's disciplinary proceedings. The
18Department, before taking disciplinary action, shall afford
19the concerned party or parties an opportunity to request a
20hearing and if so requested shall set a time and place for a
21hearing of the complaint. With respect to determinations by a
22Peer Review Administrator duly appointed by the Department
23under subsection (f) of Section 16 of this Act that a licensee
24has failed to satisfactorily complete a peer review as required
25under subsection (e) of Section 16, the Department may consider

 

 

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1the Peer Review Administrator's findings of fact as prima facie
2evidence, and upon request by a licensee for a hearing the
3Department shall review the record presented and hear arguments
4by the licensee or the licensee's counsel but need not conduct
5a trial or hearing de novo or accept additional evidence. The
6Department shall notify the applicant or the licensed or
7registered person or entity of any charges made and the date
8and place of the hearing of those charges by mailing notice
9thereof to that person or entity by registered or certified
10mail to the place last specified by the accused person or
11entity in the last notification to the Department, at least 30
12days prior to the date set for the hearing or by serving a
13written notice by delivery of the notice to the accused person
14or entity at least 15 days prior to the date set for the
15hearing, and shall direct the applicant or licensee or
16registrant to file a written answer to the Department under
17oath within 20 days after the service of the notice and inform
18the applicant or licensee or registrant that failure to file an
19answer will result in default being taken against the applicant
20or licensee or registrant and that the license or registration
21may be suspended, revoked, placed on probationary status, or
22other disciplinary action may be taken, including limiting the
23scope, nature or extent of practice, as the Secretary Director
24may deem proper. In case the person fails to file an answer
25after receiving notice, his or her license or registration may,
26in the discretion of the Department, be suspended, revoked, or

 

 

HB5773- 53 -LRB097 20475 CEL 66007 b

1placed on probationary status, or the Department may take
2whatever disciplinary action deemed proper, including limiting
3the scope, nature, or extent of the person's practice or the
4imposition of a fine, without a hearing, if the act or acts
5charged constitute sufficient grounds for such action under
6this Act. The Department shall afford the accused person or
7entity an opportunity to be heard in person or by counsel at
8the hearing. At the conclusion of the hearing the Committee
9shall present to the Secretary Director a written report
10setting forth its finding of facts, conclusions of law, and
11recommendations. The report shall contain a finding whether or
12not the accused person violated this Act or failed to comply
13with the conditions required in this Act. If the Secretary
14Director disagrees in any regard with the report, he or she may
15issue an order in contravention of the report. The Secretary
16Director shall provide a written explanation to the Committee
17of any such deviations and shall specify with particularity the
18reasons for the deviations.
19    The finding is not admissible in evidence against the
20person in a criminal prosecution brought for the violation of
21this Act, but the hearing and findings are not a bar to a
22criminal prosecution brought for the violation of this Act.
23(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
 
24    (225 ILCS 450/20.2)  (from Ch. 111, par. 5523)
25    (Section scheduled to be repealed on January 1, 2014)

 

 

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1    Sec. 20.2. Subpoenas; depositions; oaths. The Department
2has the power to subpoena documents, books, records, or other
3materials and to bring before it any person to take testimony,
4either orally or by deposition, or take written
5interrogatories, or any combination thereof, with the same fees
6and mileage in the same manner as is prescribed in civil cases
7in the courts of this State.
8    The Secretary or the designated hearing officer has the
9power to administer oaths to witnesses at any hearing that the
10Department is authorized to conduct and any other oaths
11authorized in any Act administered by the Department.
12The Department may subpoena and bring before it at any hearing
13any person in this State and take testimony either orally or by
14deposition, or both, with the same fees and mileage and in the
15same manner as prescribed by law in judicial proceedings in
16civil cases in circuit courts of this State.
17    The Director, any member of the Committee designated by the
18Director, or any hearing officer appointed may administer oaths
19to witnesses at any hearing which the Department is authorized
20by law to conduct or any other oaths required or authorized in
21any Act administered by the Department.
22(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
23    (225 ILCS 450/20.4)  (from Ch. 111, par. 5525)
24    (Section scheduled to be repealed on January 1, 2014)
25    Sec. 20.4. The Department, at its expense, shall provide a

 

 

HB5773- 55 -LRB097 20475 CEL 66007 b

1stenographer to take down the testimony and preserve a record
2of all proceedings at disciplinary hearings. A The Department
3shall furnish a transcript of that record may be made available
4to any person interested in that hearing upon payment of the
5fee required by Section 2105-115 of the Department of
6Professional Regulation Law of the reasonable cost established
7by the Department.
8(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
9    (225 ILCS 450/20.5)  (from Ch. 111, par. 5526)
10    (Section scheduled to be repealed on January 1, 2014)
11    Sec. 20.5. Rehearing. In any disciplinary proceeding, a
12copy of the Committee's report shall be served upon the
13respondent by the Department, either personally or as provided
14in this Act for the service of the notice of hearing. Within 20
15days after such service, the respondent may present to the
16Department a motion in writing for a rehearing, which motion
17shall specify the particular grounds therefor. If no motion for
18rehearing is filed, then upon the expiration of the time
19specified for filing such a motion, or if a motion or rehearing
20is denied, then upon such denial the Secretary Director may
21enter an order in accordance with recommendations of the
22Committee except as provided in Section 20.6. If the respondent
23shall order from the reporting service, and pay for a
24transcript of the record within the time for filing a motion
25for rehearing, the 20 day period within which such a motion may

 

 

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1be filed shall commence upon the delivery of the transcript to
2the respondent.
3    Whenever the Secretary Director is satisfied that
4substantial justice has not been done in the disciplinary
5proceeding, the Secretary Director may order a rehearing by the
6Committee or designated hearing officer. The Secretary
7Director shall provide a written explanation to the Committee
8of any deviation from the recommendations of the Committee and
9shall specify with particularity the reasons for the deviation.
10    Upon the suspension or revocation of a registration or
11license of a registrant or licensee, the registrant or licensee
12shall be required to surrender to the Department the
13registration or license issued by the Department, and upon
14failure or refusal so to do, the Department may seize it.
15    The Department may exchange information relating to
16proceedings resulting in disciplinary action against licensees
17or registrants with the regulatory bodies of other states, or
18with other public authorities or private organizations or with
19federal authorities having regulatory interest in such matter.
20(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
21    (225 ILCS 450/20.6)  (from Ch. 111, par. 5526.6)
22    (Section scheduled to be repealed on January 1, 2014)
23    Sec. 20.6. Notwithstanding the provisions of Section 20.2
24of this Act, the Secretary Director shall have the authority to
25appoint any attorney duly licensed to practice law in the State

 

 

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1of Illinois to serve as the hearing officer in any disciplinary
2action. The Secretary Director shall notify the Committee of
3such appointment.
4    The hearing officer shall have full authority to conduct
5the hearing. The hearing officer shall report his findings of
6fact, conclusions of law and recommendations to the Committee
7and the Secretary Director. The Committee shall have 60 days
8after receiving the report to review the report of the hearing
9officer and present its findings of fact, conclusions of law,
10and recommendations to the Secretary Director. If the Committee
11fails to present its report within the 60-day period, the
12Secretary Director shall issue an order based on the report of
13the hearing officer. If the Secretary Director disagrees in any
14regard with the report of the Committee or hearing officer, he
15or she may issue an order in contravention thereof. The
16Secretary Director shall provide a written explanation to the
17Committee of any such deviations and shall specify with
18particularity the reasons for said action in the final order.
19(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
20    (225 ILCS 450/21)  (from Ch. 111, par. 5527)
21    (Section scheduled to be repealed on January 1, 2014)
22    Sec. 21. Judicial review; cost of record; order as prima
23facie proof.
24    (a) All final administrative decisions of the Department
25hereunder shall be subject to judicial review pursuant to the

 

 

HB5773- 58 -LRB097 20475 CEL 66007 b

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

 

 

HB5773- 59 -LRB097 20475 CEL 66007 b

1        (2) the Secretary Director or authorized agent of the
2    Secretary Director is duly appointed and qualified; and
3        (3) the Committee and the members thereof are qualified
4    to act.
5(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
6    (225 ILCS 450/28)  (from Ch. 111, par. 5534)
7    (Section scheduled to be repealed on January 1, 2014)
8    Sec. 28. Criminal penalties Penalties. Each of the
9following acts perpetrated in the State of Illinois is a Class
10B misdemeanor.
11        (a) The practice of accountancy activities as defined
12    in paragraph (1) of subsection (a) of Section 8.05 without
13    an active license public accounting insofar as it consists
14    in rendering service as described in Section 8, without
15    licensure, in violation of the provisions of this Act;
16        (b) The obtaining or attempting to obtain licensure as
17    a licensed certified public accountant or registration as a
18    registered certified public accountant by fraud;
19        (c) The use of the title "Certified Public Accountant"
20    or the abbreviation "C.P.A." or use of any similar words or
21    letters indicating the user is a certified public
22    accountant, the title "Registered Certified Public
23    Accountant", the abbreviation "R.C.P.A.", any similar
24    words or letters indicating the user is a certified public
25    accountant or a registered certified public accountant by

 

 

HB5773- 60 -LRB097 20475 CEL 66007 b

1    any person in contravention of this Act;
2        (c-5) (Blank) The use of the title "Certified Public
3    Accountant" or "Licensed Certified Public Accountant" or
4    the abbreviation "C.P.A." or "L.C.P.A." or any similar
5    words or letters indicating the user is a certified public
6    accountant by any person in contravention with this Act;
7        (d) The use of the title "Certified Public Accountant"
8    or the abbreviation "C.P.A." or any similar words or
9    letters indicating that the members are certified public
10    accountants, by any partnership, limited liability
11    company, corporation, or other entity in contravention of
12    this Act unless all members thereof personally engaged in
13    the practice of public accounting in this State are
14    licensed as licensed certified public accountants by the
15    Department, and are holders of an effective unrevoked
16    license, and the partnership, limited liability company,
17    corporation, or other entity is licensed as licensed
18    certified public accountants by the Board with an effective
19    unrevoked license;
20        (e) The unauthorized practice in the performance of
21    accountancy activities as defined in Section 8.05 and in
22    contravention of this Act The use of the title "Licensed
23    Certified Public Accountant", or the abbreviation
24    "L.C.P.A." or any similar words or letters indicating such
25    person is a licensed certified public accountant, by any
26    person not licensed as a licensed certified public

 

 

HB5773- 61 -LRB097 20475 CEL 66007 b

1    accountant by the Department, and holding an effective
2    unrevoked license; provided nothing in this Act shall
3    prohibit the use of the title "Accountant" or "Bookkeeper"
4    by any person;
5        (f) (Blank); The use of the title "Licensed Certified
6    Public Accountants", "Public Accountants" or the
7    abbreviation "P.A.'s" or any similar words or letters
8    indicating that the members are public accountants by any
9    partnership, limited liability company, corporation, or
10    other entity unless all members thereof personally engaged
11    in the practice of public accounting in this State are
12    licensed as licensed certified public accountants by the
13    Department and are holders of effective unrevoked
14    licenses, and the partnership is licensed as a public
15    accounting firm by the Department with an effective
16    unrevoked license;
17        (g) Making false statements to the Department
18    regarding compliance with continuing professional
19    education or peer review requirements;
20        (h) (Blank). The use of the title "Certified Public
21    Accountant" or the abbreviation "C.P.A." or any similar
22    words or letters indicating that the members are certified
23    public accountants, by any partnership unless all members
24    thereof personally engaged in the practice of public
25    accounting in this State have received certificates as
26    certified public accountants from the Board, are licensed

 

 

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1    as public accountants by the Department, and are holders of
2    an effective unrevoked license, and the partnership is
3    licensed as public accountants by the Department with an
4    effective unrevoked license.
5    This Section does not prohibit a firm partnership, limited
6liability company, corporation, or other entity who does not
7practice public accounting as set forth in Section 8 of this
8Act and whose members residing in Illinois are registered with
9the Department from using the title "Certified Public
10Accountant" or the abbreviation "C.P.A." or "CPA" or similar
11words or letters indicating that the members are certified
12public accountants.
13(Source: P.A. 95-331, eff. 8-21-07.)
 
14    (225 ILCS 450/30)  (from Ch. 111, par. 5535)
15    (Section scheduled to be repealed on January 1, 2014)
16    Sec. 30. A violation of Sections 8.05 and 9.02 of this Act
17by any person The practice of public accounting, as described
18in Section 8 of this Act, by any person in violation of this
19Act is hereby declared to be inimical to the public welfare and
20to be a public nuisance. An action to perpetually enjoin from
21such unlawful practice any person who has been or is engaged
22therein may be maintained in the name of the people of the
23State of Illinois by the Attorney General of the State of
24Illinois, by the State's Attorney of any county in which the
25action is brought, by the Department or by any resident

 

 

HB5773- 63 -LRB097 20475 CEL 66007 b

1citizen. The injunction proceeding shall be in addition to and
2not in lieu of any penalties or other remedies provided by this
3Act. No injunction shall issue under this section against any
4person for any act exempted under Section 11 of this Act.
5    If any person shall practice as a licensed certified public
6accountant or a registered certified public accountant or hold
7himself or herself out as a licensed certified public
8accountant or registered certified public accountant without
9being licensed or registered under the provision of this Act
10then any licensed certified public accountant or registered
11certified public accountant, any interested party or any person
12injured thereby may, in addition to the Department, petition
13for relief as provided in subsection (a) of this Section.
14    Whenever in the opinion of the Department any person
15violates any provision of this Act, the Department may issue a
16rule to show cause why an order to cease and desist should not
17be entered against him. The rule shall clearly set forth the
18grounds relied upon by the Department and shall provide a
19period of 7 days from the date of the rule to file an answer to
20the satisfaction of the Department. Failure to answer to the
21satisfaction of the Department shall cause an order to cease
22and desist to be issued forthwith.
23(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
 
24    (225 ILCS 450/30.5)
25    (Section scheduled to be repealed on January 1, 2014)

 

 

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1    Sec. 30.5. Improper influence on the conduct of audits.
2    (a) It shall be unlawful for any officer or director of a
3company that is not required to file periodic information,
4documents, and reports pursuant to the federal Securities
5Exchange Act of 1934, or any other person acting under the
6direction thereof, to take any action to fraudulently
7influence, coerce, manipulate, or mislead any licensed public
8accountant or licensed certified public accountant engaged in
9the performance of an audit of the financial statements of that
10company for the purpose of rendering the financial statements
11being audited materially misleading.
12    (b) A person who, with the intent to deceive, violates this
13Section is guilty of a Class 4 felony.
14(Source: P.A. 93-683, eff. 7-2-04.)
 
15    (225 ILCS 450/30.6)
16    (Section scheduled to be repealed on January 1, 2014)
17    Sec. 30.6. Misleading behavior by licensees certified
18public accountants.
19    (a) It shall be unlawful for any licensee licensed public
20accountant or licensed certified public accountant to
21intentionally mislead a company that is not required to file
22periodic information, documents, and reports pursuant to the
23federal Securities Exchange Act of 1934 by falsifying records
24it creates as part of an audit of the company.
25    (b) A person who knowingly violates this Section is guilty

 

 

HB5773- 65 -LRB097 20475 CEL 66007 b

1of a Class 4 felony.
2(Source: P.A. 93-683, eff. 7-2-04.)
 
3    (225 ILCS 450/7 rep.)
4    (225 ILCS 450/8 rep.)
5    (225 ILCS 450/9 rep.)
6    (225 ILCS 450/9.01 rep.)
7    Section 10. The Illinois Public Accounting Act is amended
8by repealing Sections 7, 8, 9, and 9.01.
 
9    Section 99. Effective date. This Act takes effect July 1,
102012.

 

 

HB5773- 66 -LRB097 20475 CEL 66007 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 80/4.24
4    5 ILCS 80/4.33 new
5    225 ILCS 450/0.03from Ch. 111, par. 5500.03
6    225 ILCS 450/0.04 new
7    225 ILCS 450/2from Ch. 111, par. 5502
8    225 ILCS 450/2.05
9    225 ILCS 450/2.1from Ch. 111, par. 5503
10    225 ILCS 450/4from Ch. 111, par. 5505
11    225 ILCS 450/5from Ch. 111, par. 5506
12    225 ILCS 450/5.2
13    225 ILCS 450/8.05 new
14    225 ILCS 450/9.02
15    225 ILCS 450/9.2from Ch. 111, par. 5510.2
16    225 ILCS 450/9.3
17    225 ILCS 450/13from Ch. 111, par. 5514
18    225 ILCS 450/14from Ch. 111, par. 5515
19    225 ILCS 450/14.1
20    225 ILCS 450/14.2
21    225 ILCS 450/14.3
22    225 ILCS 450/16from Ch. 111, par. 5517
23    225 ILCS 450/17.1from Ch. 111, par. 5518.1
24    225 ILCS 450/17.2from Ch. 111, par. 5518.2
25    225 ILCS 450/19from Ch. 111, par. 5520

 

 

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1    225 ILCS 450/20.01from Ch. 111, par. 5521.01
2    225 ILCS 450/20.1from Ch. 111, par. 5522
3    225 ILCS 450/20.2from Ch. 111, par. 5523
4    225 ILCS 450/20.4from Ch. 111, par. 5525
5    225 ILCS 450/20.5from Ch. 111, par. 5526
6    225 ILCS 450/20.6from Ch. 111, par. 5526.6
7    225 ILCS 450/21from Ch. 111, par. 5527
8    225 ILCS 450/28from Ch. 111, par. 5534
9    225 ILCS 450/30from Ch. 111, par. 5535
10    225 ILCS 450/30.5
11    225 ILCS 450/30.6
12    225 ILCS 450/7 rep.
13    225 ILCS 450/8 rep.
14    225 ILCS 450/9 rep.
15    225 ILCS 450/9.01 rep.