Full Text of SB0745 095th General Assembly
SB0745enr 95TH GENERAL ASSEMBLY
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Public Accounting Act is amended by | 5 |
| changing Sections 1, 4, 9, 9.01, 9.02, 13, 14, 14.3, and 30.2 | 6 |
| and by adding Section 5.2 as follows:
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| (225 ILCS 450/1) (from Ch. 111, par. 5501)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 1. No person shall hold himself or herself out to the | 10 |
| public in this State in any manner by using the title | 11 |
| "Certified Public Accountant" or use the abbreviation "C.P.A." | 12 |
| or
"CPA" or any words or letters to indicate that the person | 13 |
| using the same
is a certified public accountant, unless he or | 14 |
| she has been issued a license or registration by the Department | 15 |
| under this Act or is exercising the practice privilege afforded | 16 |
| under Section 5.2 of this Act .
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| (Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 10-1-06 .)
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| (225 ILCS 450/4) (from Ch. 111, par. 5505)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 4. Transitional language.
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| (a) The provisions of this Act shall not be construed to | 22 |
| invalidate any
certificates as certified public accountants |
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| issued by the University under
"An Act to regulate the | 2 |
| profession of public accountants", approved May 15,
1903, as | 3 |
| amended, or any certificates as Certified Public Accountants
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| issued by the University or the Board under Section 4 of "An | 5 |
| Act to regulate the
practice of public accounting and to repeal | 6 |
| certain acts therein named",
approved July 22, 1943, as | 7 |
| amended, which certificates shall be valid and
in force as | 8 |
| though issued under the provisions of this Act. | 9 |
| (b) Before July 1, 2010, persons who have received a | 10 |
| Certified Public Accountant (CPA) Certificate issued by the | 11 |
| Board of Examiners or holding similar certifications from other | 12 |
| jurisdictions with equivalent educational requirements and | 13 |
| examination standards may apply to the Department on forms | 14 |
| supplied by the Department for and may be granted a | 15 |
| registration as a Registered Certified Public Accountant from | 16 |
| the Department upon payment of the required fee. | 17 |
| (c) Beginning with the 2006 renewal, the Department shall | 18 |
| cease to issue a license as a Public Accountant. Any person | 19 |
| holding a valid license as a Public Accountant prior to | 20 |
| September 30, 2006 who meets the conditions for renewal of a | 21 |
| license under this Act, shall be issued a license as a Licensed | 22 |
| Certified Public Accountant under this Act and shall be subject | 23 |
| to continued regulation by the Department under this Act. The | 24 |
| Department may adopt rules to implement this Section. | 25 |
| (d) The Department shall not issue any new registrations as | 26 |
| a Registered Certified Public Accountant after July 1, 2010. |
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| After that date, any applicant for licensure under this Act | 2 |
| shall apply for a license as a Licensed Certified Public | 3 |
| Accountant and shall meet the requirements set forth in this | 4 |
| Act. Any person issued a Certified Public Accountant | 5 |
| certificate who has been issued a registration as a Registered | 6 |
| Certified Public Accountant may renew the registration under | 7 |
| the provisions of this Act and that person may continue to | 8 |
| renew or restore the registration during his or her lifetime, | 9 |
| subject only to the renewal or restoration requirements for the | 10 |
| registration under this Act. Such registration shall be subject | 11 |
| to the disciplinary provisions of this Act. | 12 |
| (e) On and after October 1, 2006, no person shall hold | 13 |
| himself or herself out to the public in this State in any | 14 |
| manner by using the title "certified public accountant" or use | 15 |
| the abbreviation "C.P.A." or "CPA" or any words or letters to | 16 |
| indicate that the person using the same is a certified public | 17 |
| accountant unless he or she maintains a current registration or | 18 |
| license issued by the Department or is exercising the practice | 19 |
| privilege afforded under Section 5.2 of this Act . It shall be a | 20 |
| violation of this Act for an individual to assume or use the | 21 |
| title "certified public accountant" or use the abbreviation | 22 |
| "C.P.A." or "CPA" or any words or letters to indicate that the | 23 |
| person using the same is a certified public accountant in this | 24 |
| State unless he or she maintains a current registration or | 25 |
| license issued by the Department or is exercising the practice | 26 |
| privilege afforded under Section 5.2 of this Act .
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| (Source: P.A. 93-683, eff. 7-2-04.)
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| (225 ILCS 450/5.2 new)
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| (Section scheduled to be repealed on January 1, 2014) | 4 |
| Sec. 5.2. Substantial equivalency. | 5 |
| (a) An individual whose principal place of business is not | 6 |
| in this State shall have all the privileges of a person | 7 |
| licensed under this Act as a licensed certified public | 8 |
| accountant without the need to obtain a license or registration | 9 |
| from the Department or to file notice with the Department, if | 10 |
| the individual: | 11 |
| (1) holds a valid license as a certified public | 12 |
| accountant issued by another state that the National | 13 |
| Qualification Appraisal Service of the National | 14 |
| Association of State Boards of Accountancy has verified to | 15 |
| be in substantial equivalence with the CPA licensure | 16 |
| requirements of the Uniform Accountancy Act of the American | 17 |
| Institute of Certified Public Accountants and the National | 18 |
| Association of State Boards of Accountancy; or | 19 |
| (2) holds a valid license as a certified public | 20 |
| accountant issued by another state and obtains from the | 21 |
| National Qualification Appraisal Service of the National | 22 |
| Association of State Boards of Accountancy verification | 23 |
| that the individual's CPA qualifications are substantially | 24 |
| equivalent to the CPA licensure requirements of the Uniform | 25 |
| Accountancy Act of the American Institute of Certified |
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| Public Accountants and the National Association of State | 2 |
| Boards of Accountancy; however, any individual who has | 3 |
| passed the Uniform CPA Examination and holds a valid | 4 |
| license issued by any other state prior to January 1, 2012 | 5 |
| shall be exempt from the education requirements of Section | 6 |
| 3 of this Act for the purposes of this item (2). | 7 |
| (b) Notwithstanding any other provision of law, an | 8 |
| individual who offers or renders professional services under | 9 |
| this Section, whether in person or by mail, telephone, or | 10 |
| electronic means, shall be granted practice privileges in this | 11 |
| State and no notice or other submission must be provided by any | 12 |
| such individual. | 13 |
| (c) An individual licensee of another state who is | 14 |
| exercising the privilege afforded under this Section and the | 15 |
| CPA firm that employs such individual, if any, as a condition | 16 |
| of the grant of this privilege, hereby simultaneously consents: | 17 |
| (1) to the personal and subject matter jurisdiction and | 18 |
| disciplinary authority of the Department; | 19 |
| (2) to comply with this Act and the Department's rules | 20 |
| adopted under this Act; | 21 |
| (3) that in the event that the license from the state | 22 |
| of the individual's principal place of business is no | 23 |
| longer valid, the individual shall cease offering or | 24 |
| rendering professional services in this State individually | 25 |
| or on behalf of a CPA firm; and | 26 |
| (4) to the appointment of the state board that issued |
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| the individual's or the CPA firm's license as the agent | 2 |
| upon which process may be served in any action or | 3 |
| proceeding by the Department against the individual. | 4 |
| (d) An individual licensee who qualifies for practice | 5 |
| privileges under this Section who, for any entity headquartered | 6 |
| in this State, performs (i) a financial statement audit or | 7 |
| other engagement in accordance with Statements on Auditing | 8 |
| Standards; (ii) an examination of prospective financial | 9 |
| information in accordance with Statements on Standards for | 10 |
| Attestation Engagements; or (iii) an engagement in accordance | 11 |
| with Public Company Accounting Oversight Board Auditing | 12 |
| Standards may only do so through a firm licensed under this | 13 |
| Act. | 14 |
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| (225 ILCS 450/9) (from Ch. 111, par. 5510)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 9. Unlicensed practice.
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| No person shall , after the effective date of this | 19 |
| amendatory
Act of the 93rd General Assembly, begin to practice | 20 |
| in this State or hold himself out as being able to
practice | 21 |
| licensed certified public accounting in this State or hold | 22 |
| himself or herself out as being able to practice in this State
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| as a licensed certified public accountant, unless he or she
is | 24 |
| licensed in accordance with the provisions
of this Act or is | 25 |
| exercising the practice privilege afforded under Section 5.2 of |
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| this Act . Any person who is the holder of a license as a public | 2 |
| accountant
heretofore issued, under any prior Act licensing or | 3 |
| registering public accountants
in this State, valid on the | 4 |
| effective date of this amendatory Act shall
be deemed to be | 5 |
| licensed under this Act shall be subject to the same
rights and | 6 |
| obligations as persons originally licensed under this Act.
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| No person shall, after the effective date of this | 8 |
| amendatory Act of the 93rd General Assembly, begin to hold | 9 |
| himself or herself out as a registered certified public | 10 |
| accountant unless he or she is registered in accordance with | 11 |
| the provisions
of this Act. | 12 |
| On and after October 1, 2006, no person may use or | 13 |
| incorporate the title "certified public accountant" without | 14 |
| holding a license as a licensed certified public accountant or | 15 |
| registered certified public accountant under this Act.
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| (Source: P.A. 93-683, eff. 7-2-04.)
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| (225 ILCS 450/9.01)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 9.01. Unlicensed practice; violation; civil penalty.
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| (a) Any person or firm that practices, offers to practice, | 21 |
| attempts to practice, or
holds oneself out to practice as a | 22 |
| licensed certified public accountant
in this State without | 23 |
| being licensed
under this Act or qualifying for the practice | 24 |
| privilege set forth in Section 5.2 of this Act shall, in
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| addition to any other penalty provided by law, pay a civil |
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| penalty to the
Department in an amount not to exceed $5,000 for | 2 |
| each offense as
determined by
the Department. The civil penalty | 3 |
| shall be assessed by the
Department after a
hearing is held in | 4 |
| accordance with the provisions set forth in this Act
regarding | 5 |
| the provision of a hearing for the discipline of a licensee.
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| (b) The Department has the authority and power to | 7 |
| investigate
any and all
unlicensed activity.
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| (c) The civil penalty shall be paid within 60 days after | 9 |
| the effective date
of the order imposing the civil penalty. The | 10 |
| order shall constitute a judgment
and may be filed and | 11 |
| execution had thereon in the same manner as any judgment
from | 12 |
| any court of record.
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| (Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
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| (225 ILCS 450/9.02)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 9.02. Unauthorized use of title; violation; civil | 17 |
| penalty.
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| (a) Any
On and after October 1, 2006, any person who holds | 19 |
| himself or herself out to the public as a certified public | 20 |
| accountant in this State by using
shall assume the title | 21 |
| "certified public
accountant" or use the abbreviation "CPA" or | 22 |
| any words or letters
to indicate that the person using the same | 23 |
| is a certified public
accountant without having been issued a | 24 |
| registration as a registered certified public accountant or a | 25 |
| license as a licensed certified public accountant under the
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| provisions of this Act or without qualifying for the practice | 2 |
| privilege under Section 5.2 of this Act shall, in addition to | 3 |
| any other penalty
provided by law, pay a civil penalty to the | 4 |
| Department in an amount not to
exceed $5,000 for each offense | 5 |
| as determined by the Department. The
civil penalty shall be | 6 |
| assessed by the Department
after a hearing is held in
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| accordance with the provisions set forth in this Act regarding | 8 |
| the
provision of a hearing for the discipline of a licensee.
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| (b) The Department has the authority and power to | 10 |
| investigate any and
all alleged improper use of the certified | 11 |
| public accountant title or CPA
designation.
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| (c) The civil penalty shall be paid within 60 days after | 13 |
| the
effective date of the order imposing the civil penalty. The | 14 |
| order shall
constitute a judgment and may be filed and | 15 |
| execution had thereon in the
same manner as any judgment from | 16 |
| any court of record.
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| (Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
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| (225 ILCS 450/13) (from Ch. 111, par. 5514)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 13. Application for licensure.
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| (a) A person, partnership, limited liability
company, or | 22 |
| corporation desiring to practice public accounting in this | 23 |
| State
shall make application to the Department for licensure as | 24 |
| a
licensed certified public accountant
and shall pay the fee | 25 |
| required by rule.
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| Applicants have 3 years from the date of application to | 2 |
| complete the
application process. If the process has not been | 3 |
| completed in 3 years,
the application shall be denied, the fee | 4 |
| forfeited and the applicant must
reapply and meet the | 5 |
| requirements in effect at the time of reapplication.
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| (b) Any firm, whether organized as a partnership, limited | 7 |
| liability company, corporation, or other entity, that (i) has | 8 |
| an office in this State that uses the title "CPA" or "CPA | 9 |
| firm"; (ii) has an office in this State that performs public | 10 |
| accounting services, as defined in Section 8 of this Act; or | 11 |
| (iii) does not have an office in this State, but performs | 12 |
| attest services, as set forth in subsection (d) of Section 5.2 | 13 |
| of this Act, for a client that has its home office in this | 14 |
| State must hold a license issued under this Act. | 15 |
| (c) A firm that does not have an office in this State may | 16 |
| perform a review of a financial statement in accordance with | 17 |
| the Statements on Standards for Accounting and Review Services | 18 |
| for a client with its home office in this State and may use the | 19 |
| title "CPA" or "CPA firm" without obtaining a license under | 20 |
| this Act, only if the firm (i) performs such services through | 21 |
| individuals with practice privileges under Section 5.2 of this | 22 |
| Act; (ii) satisfies any peer review requirements in those | 23 |
| states in which the individuals with practice privileges under | 24 |
| Section 5.2 have their principal place of business; and (iii) | 25 |
| meets the qualifications set forth in item (2) of subsection | 26 |
| (b) of Section 14 of this Act. |
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| (d) A firm that is not subject to the requirements of | 2 |
| subsection (b) or (c) of this Section may perform professional | 3 |
| services that are not regulated under subsection (b) or (c) of | 4 |
| this Section while using the title "CPA" or "CPA firm" in this | 5 |
| State without obtaining a license under this Act if the firm | 6 |
| (i) performs such services through individuals with practice | 7 |
| privileges under Section 5.2 of this Act and (ii) may lawfully | 8 |
| perform such services in the state where those individuals with | 9 |
| practice privileges under Section 5.2 of this Act have their | 10 |
| principal place of business. | 11 |
| (Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
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| (225 ILCS 450/14) (from Ch. 111, par. 5515)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 14. Qualifications. The Department may
license as
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| licensed certified public accountants the following:
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| (a) All persons who have received certificates as certified | 17 |
| public accountants from the Board or who hereafter receive | 18 |
| registrations as registered certified public accountants from | 19 |
| the Department who have had at least one year
of full-time | 20 |
| experience, or its equivalent, providing any type
of service or | 21 |
| advice involving
the use of accounting, attest, management | 22 |
| advisory, financial advisory, tax, or
consulting skills, which | 23 |
| may be gained through employment in government,
industry, | 24 |
| academia, or public practice.
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| If the applicant's certificate as a certified public |
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| accountant from the Board or the applicant's registration as a | 2 |
| registered certified public accountant from the Department was | 3 |
| issued more than 4 years prior to the
application for a license | 4 |
| under this Section, the applicant shall
submit any evidence the | 5 |
| Department may require showing the
applicant has
completed not | 6 |
| less than 90 hours of continuing professional education
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| acceptable to the Department
within the 3 years immediately
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| preceding the date
of application.
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| (b) All partnerships, limited liability companies, or | 10 |
| corporations, or
other entities engaged in the practice of | 11 |
| public accounting in this State and
meeting the following | 12 |
| requirements:
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| (1) (Blank).
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| (2) A majority of the ownership of the firm, in terms | 15 |
| of
financial interests and voting rights of all partners,
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| officers, shareholders, members, or managers, belongs to
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| persons licensed in some state, and the partners, officers,
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| shareholders, members, or managers whose principal place | 19 |
| of
business is in this State and who practice public | 20 |
| accounting
in this State, as defined in Section 8 of this | 21 |
| Act, hold a
valid license issued by this State. An | 22 |
| individual exercising the practice privilege afforded | 23 |
| under Section 5.2 who performs services for which a firm | 24 |
| license is required under subsection (d) of Section 5.2 | 25 |
| shall not be required to obtain an individual license under | 26 |
| this Act.
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| (3) It shall be lawful for a nonprofit cooperative | 2 |
| association engaged
in rendering an auditing and | 3 |
| accounting service to its members only, to
continue to | 4 |
| render that service provided that the rendering of auditing | 5 |
| and
accounting service by the cooperative association | 6 |
| shall at all times be under
the control and supervision of | 7 |
| licensed certified public accountants.
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| (4) The Department may adopt rules and regulations as
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| necessary to provide
for the practice of public accounting | 10 |
| by business entities that may be
otherwise authorized by | 11 |
| law to conduct business in Illinois.
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| (Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
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| (225 ILCS 450/14.3)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 14.3. Additional requirements for firms. In
addition | 16 |
| to the ownership requirements set forth in subsection (b) of | 17 |
| Section
14, all firms licensed under this Act shall meet the
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| following requirements:
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| (a) All owners of the firm, whether licensed or not, shall
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| be active participants in the firm or its affiliated
entities.
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| (b) An individual who supervises services for which a
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| license is required under Section 8 of this Act ,
or who signs
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| or authorizes another to sign any report for which a license
is | 24 |
| required under Section 8 of this Act , or who supervises | 25 |
| services for which a firm license is required under subsection |
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| (d) of Section 5.2 of this Act shall hold a valid,
active | 2 |
| Licensed Certified Public Accountant license from this State or | 3 |
| another state and shall comply with such
additional experience | 4 |
| requirements as may be required by rule
of the Department
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| Board .
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| (c) The firm shall require that all owners of the
firm, | 7 |
| whether or not certified or licensed under this Act,
comply | 8 |
| with rules promulgated under this Act.
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| (d) The firm shall designate to the Department in
writing | 10 |
| an individual licensed under this Act or, in the case of a firm | 11 |
| that must have a license pursuant to subsection (b) of Section | 12 |
| 13 of this Act, a licensee of another state who meets the | 13 |
| requirements set out in item (1) or (2) of subsection (a) of | 14 |
| Section 5.2 of this Act, who shall be
responsible for the | 15 |
| proper registration of the firm.
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| (e) Applicants have 3 years from the date of application to | 17 |
| complete the application process. If the process has not been | 18 |
| completed in 3 years, the application shall be denied, the fee | 19 |
| shall be forfeited, and the applicant must reapply and meet the | 20 |
| requirements in effect at the time of reapplication.
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| (Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
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| (225 ILCS 450/30.2) (from Ch. 111, par. 5535.2)
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| (Section scheduled to be repealed on January 1, 2014)
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| Sec. 30.2. Contributory fault. Except in causes of action | 25 |
| based on actual
fraud or intentional misrepresentation, the
the
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| principles of liability set forth
in Sections 2-1115.05,
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| 2-1116, and 2-1117 of the Code of Civil Procedure shall apply | 3 |
| to all
claims for civil damages brought against any person, | 4 |
| partnership, corporation,
or any other entity certified, | 5 |
| licensed, or practicing under this Act, or any
of its | 6 |
| employees, partners, members, officers, or shareholders that | 7 |
| are alleged
to result from acts, omissions, decisions, or other | 8 |
| conduct in connection with
professional services.
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| This Section applies to causes of action accruing on or
| 10 |
| after the effective date of this amendatory Act of 1992.
This | 11 |
| amendatory Act of 1995 applies to causes of action accruing on | 12 |
| or
after its effective date.
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| (Source: P.A. 89-380, eff. 8-18-95.)
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| (225 ILCS 450/9.1 rep.)
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| Section 10. The Illinois Public Accounting Act is amended | 16 |
| by repealing Section 9.1. | 17 |
| Section 97. Severability. The provisions of this Act are | 18 |
| severable under Section 1.31 of the Statute on Statutes.
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| Section 99. Effective date. This Act takes effect January | 20 |
| 1, 2008.
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