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92nd General Assembly

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Public Act 92-0457

SB1284 Enrolled                                LRB9206807LDpr

    AN ACT in relation to accounting.

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

    Section  5.  The Regulatory  Sunset  Act  is  amended  by
changing Section 4.14 and adding Section 4.24 as follows:

    (5 ILCS 80/4.14) (from Ch. 127, par. 1904.14)
    Sec. 4.14.  Acts repealed.
    (a)  The following Acts are repealed December 31, 2003:
         The  Private  Detective,  Private Alarm, and Private
    Security Act of 1993.
         The Illinois Occupational Therapy Practice Act.
    (b)  The following Acts are repealed January 1, 2004:
         The Illinois Certified Shorthand  Reporters  Act  of
    1984.
         The Illinois Public Accounting Act.
         The  Veterinary Medicine and Surgery Practice Act of
    1994.
(Source: P.A. 87-261; 87-481; 87-576; 87-895; 88-36;  88-363;
88-424; 88-670, eff. 12-2-94.)

    (5 ILCS 80/4.24 new)
    Sec.   4.24.  Act  repealed  on  January  1,  2014.   The
following Act is repealed on January 1, 2014:
    The Illinois Public Accounting Act.

    Section  10.   The  Illinois  Public  Accounting  Act  is
amended  by  changing  Sections 0.03, 1, 2, 3, 6, 7, 8, 9.01,
9.2, 11, 13, 14, 14.1, 14.2, 14.3, 16, 17,  17.1,  17.2,  19,
20.01,  20.1,  20.2,  20.3, 20.4, 20.5, 20.6, 21, 26, 27, 28,
30, 30.1, and 32 and adding Section 9.02 as follows:
    (225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
    Sec. 0.03.  Definitions. As used in this Act, unless  the
context otherwise requires:
    (a)  "Certified  Public  Accountant" means any person who
has  been  issued  a  certificate  as  a   certified   public
accountant   from   the  Board  of  Examiners  University  of
Illinois.
    (b)  "Licensed Certified  Public  Accountant"  means  any
person licensed under this Act.
    (c)  (Blank).   "Department"   means  the  Department  of
Professional Regulation.
    (d)  (Blank).   "Director"   means   the   Director    of
Professional Regulation.
    (e)  (Blank).   "Committee"  means  the  Illinois  Public
Accountants Registration Committee appointed by the Director.
    (f)  "License", "licensee" and "licensure" refers to  the
authorization to practice under the provisions of this Act.
    (g)  "Peer  review  program" means a study, appraisal, or
review of one or more aspects of the professional work  of  a
person   or  firm  certified  or  licensed  under  this  Act,
including quality review, peer review,  practice  monitoring,
quality    assurance,   and   similar   programs   undertaken
voluntarily or in response to membership  requirements  in  a
professional  organization,  or  as  a  prerequisite  to  the
providing   of   professional   services   under   government
requirements,  or  any  similar internal review or inspection
that is required by professional standards.
    (h)  "Review  committee"  means  any  person  or  persons
conducting, reviewing, administering, or supervising  a  peer
review program.
    (i)  "University" means the University of Illinois.
    (j)  "Board"  means  the  Board  of Examiners established
under Section 2.
(Source: P.A. 88-36.)
    (225 ILCS 450/1) (from Ch. 111, par. 5501)
    Sec. 1.  Any person, eighteen years of age or older,  who
has   received   from   the  Board  University  of  Illinois,
hereinafter called  the  University,  a  certificate  of  his
qualifications  as  hereinafter provided, shall be styled and
known as a "Certified Public Accountant," and no other person
shall assume such title or use the abbreviation "C. P.A."  or
any  words  or  letters to indicate that the person using the
same is a certified public accountant.
(Source: P.A. 83-291.)

    (225 ILCS 450/2) (from Ch. 111, par. 5502)
    Sec. 2.   Examinations.  The  Governor  University  shall
appoint  a  Board  of  Examiners  that  shall  determine  the
qualifications of persons applying for certificates and shall
make  rules  for and conduct examinations for determining the
qualifications.
The Board shall consist of not less than 9 nor more than 11 9
examiners, as determined by Board rule,  including  2  public
members.  The remainder at least 7 of whom shall be certified
public accountants in this State who have been  residents  of
this  State  for at least 5 years immediately preceding their
appointment,  except  that  one.    One  shall  be  either  a
certified public an accountant of the grade herein  described
or  an  attorney  licensed and residing in this State and one
shall be a certified public accountant who is  an  active  or
retired  educator residing in this State.  The term of office
of each examiner shall be  3  years,  except  that  upon  the
enactment of this amendatory Act of the 92nd General Assembly
1993,  those  members  currently  serving  on the Board shall
continue to serve the duration of their terms, one additional
examiner shall be appointed for  a  term  of  one  year,  one
additional  examiner  for  a  term  of  2  years,  and  any 2
additional examiners for terms a term of  3  years.   As  the
term  of  each  examiner  expires,  the  appointment shall be
filled for a term of 3 years from  the  date  of  expiration.
Any Board member who has served as a member for 6 consecutive
years  shall  not be eligible for reappointment until 2 years
after the end of the term in which the sixth consecutive year
of service occurred, except that members of the Board serving
on the effective date of this Section shall be  eligible  for
appointment   to   one  additional  3-year  term.  Where  the
expiration of any member's term shall result in less than  11
members  then serving on the Board, the member shall continue
to serve until his or her  successor  is  appointed  and  has
qualified.  The Governor may terminate the term of any member
of the Board at any time for cause.
    The time and place of holding the examinations  shall  be
determined  by  the Board and shall be duly advertised by the
Board.
    The examination shall test the applicant's  knowledge  of
accounting,  auditing, and other related subjects, if any, as
the Board may deem advisable.  A candidate must  be  examined
in  all  subjects except that a candidate who has passed in 2
or more subjects and who attained a  minimum  grade  in  each
subject  failed  as  may  be established by Board regulations
shall have the right  to  be  re-examined  in  the  remaining
subjects   at   one   or   more  of  the  next  6  succeeding
examinations.
    The Board may in certain cases waive or defer any of  the
requirements  of  this Section regarding the circumstances in
which the various Sections of the examination must be  passed
upon  a  showing that, by reasons of circumstances beyond the
applicant's control, the applicant was  unable  to  meet  the
requirement.
    Applicants may also be required to pass an examination on
the  rules  of  professional  conduct, as determined by Board
rule to be appropriate.
    The examinations shall be given at least twice a year.
    Any application, document or other information  filed  by
or  concerning  an applicant and any examination grades of an
applicant shall be  deemed  confidential  and  shall  not  be
disclosed  to  anyone without the prior written permission of
the applicant, except that it is hereby deemed in the  public
interest  that the names and addresses only of all applicants
shall  be  a  public  record  and  be  released   as   public
information.   Nothing  herein  shall  prevent the Board from
making public announcement of the names of persons  receiving
certificates under this Act.
    The  Board shall adopt all necessary and reasonable rules
and regulations  for  the  effective  administration  of  the
Sections   of   this   Act  for  which  it  is  charged  with
administering.  Without limiting  the  foregoing,  the  Board
shall  adopt  and  prescribe rules and regulations for a fair
and  wholly  and  impartial   method   of   determining   the
qualifications  of  applicants for examination and for a fair
and wholly and impartial method  of  examination  of  persons
under   Section  2  and  may  establish  rules  for  subjects
conditioned and  for  the  transfer  of  credits  from  other
jurisdictions with respect to subjects passed.
(Source: P.A. 88-36.)

    (225 ILCS 450/3) (from Ch. 111, par. 5504)
    Sec.  3.  Qualifications of applicants. To be admitted to
take the examination given before January 1,  2001,  for  the
purpose  of  determining the qualifications of applicants for
certificates as certified public accountants under this  Act,
the  applicants  shall  be  required  to present proof of the
successful completion of 120 college or  university  semester
hours  of  study or their equivalent from a school or schools
acceptable to the Board. Of the 120 semester hours, at  least
27  semester  hours  shall  be  in  the  study of accounting,
auditing and business law, provided that of the 27 hours  not
more  than 6 shall be in business law. To be admitted to take
the examination after the  year  2000,  for  the  purpose  of
determining the qualifications of applicants for certificates
as   certified   public   accountants  under  this  Act,  the
applicants  shall  be  required  to  present  proof  of   the
successful  completion  of 150 college or university semester
hours  of  study  or   their   equivalent,   to   include   a
baccalaureate  or  higher  degree  conferred  by a college or
university acceptable to the Board of  Examiners,  the  total
educational program to include an accounting concentration or
equivalent as determined by Board rules to be appropriate. In
adopting  those  rules, the Board shall consider, among other
things, any impediments to the interstate practice of  public
accounting   that   may   result   from  differences  in  the
requirements in other states.
    Candidates who have taken the examination at  least  once
before  January  1,  2001, may take the examination under the
qualifications  in  effect   when   they   first   took   the
examination.
(Source: P.A. 87-726; 88-36.)

    (225 ILCS 450/6) (from Ch. 111, par. 5507)
    Sec. 6. Fees; pay of examiners; expenses. The Board shall
charge  a  fee in an amount at least sufficient to defray the
costs and expenses incident to the examination  and  issuance
of  a  certificate  provided  for  in  Section  3 and for the
issuance of a certificate provided for in Section 5. This fee
shall be payable by the applicant at the time  of  filing  an
application.
    The   Board  appointed  by  the  Governor  University  in
accordance with the provisions of  Section  2  shall  receive
reasonable  compensation,  to be set determined by Board rule
the University, for the time actually expended  in  pursuance
of  the  duties imposed upon them by this Act, and they shall
be further entitled to their  necessary  traveling  expenses.
All  expenses provided for by this Act shall be paid from the
fees received under this Act, and no expense  incurred  under
this  Act  shall  be  charged  against  other  funds  of  the
University.
    From  the  fees  collected,  the  Board shall pay all the
expenses  incident  to  the  examinations,  the  expenses  of
issuing  certificates,  the   traveling   expenses   of   the
examiners,  and  their  compensation  while  performing their
duties, and other necessary expenses in the administration of
this Act.
(Source: P.A. 88-36.)

    (225 ILCS 450/7) (from Ch. 111, par. 5508)
    Sec.  7.   Licensure.  A  holder  of  a  certificate   as
certified  public accountant issued by the Board shall not be
entitled to practice public accounting, as defined in Section
8, in this State until the person  has  been  licensed  as  a
licensed  certified public accountant by the Board Department
of Professional Regulation of this State, and has received  a
registration card from the Department.
    The  Board  Department may refuse to issue or may suspend
the license of any person who fails to file a return,  or  to
pay  the tax, penalty or interest shown in a filed return, or
to pay any final assessment of tax, penalty or  interest,  as
required   by  any  tax  Act  administered  by  the  Illinois
Department of Revenue, until such time as the requirements of
any such tax Act are satisfied.
(Source: P.A. 88-36.)

    (225 ILCS 450/8) (from Ch. 111, par. 5509)
    Sec.  8.  Practicing   as   licensed   certified   public
accountant.  Persons,  either  individually,  as members of a
partnership or limited liability company, or as officers of a
corporation, who sign, affix or associate their names or  any
trade  or  assumed  names  used  by  them  in a profession or
business to any report expressing or disclaiming  an  opinion
on  a financial statement based on an audit or examination of
that  statement,  or  expressing  assurance  on  a  financial
statement, shall be deemed to  be  in  practice  as  licensed
certified public accountants within the meaning and intent of
this Act.
(Source: P.A. 87-435; 88-36.)

    (225 ILCS 450/9.01)
    Sec.   9.01.  Unlicensed   practice;   violation;   civil
penalty.
    (a)  Any   person  who  practices,  offers  to  practice,
attempts to practice, or holds oneself out to practice  as  a
licensed  certified  public accountant without being licensed
under this Act  shall,  in  addition  to  any  other  penalty
provided  by law, pay a civil penalty to the Board Department
in an amount  not  to  exceed  $5,000  for  each  offense  as
determined  by  the Board Department. The civil penalty shall
be assessed by the Board Department after a hearing  is  held
in  accordance  with  the  provisions  set  forth in this Act
regarding the provision of a hearing for the discipline of  a
licensee.
    (b)  The  Board Department has the authority and power to
investigate any and all unlicensed activity.
    (c)  The civil penalty shall be paid within 60 days after
the effective date of the order imposing the  civil  penalty.
The  order  shall  constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of record.
(Source: P.A. 89-474, eff. 6-18-96.)
    (225 ILCS 450/9.02 new)
    Sec. 9.02.  Unauthorized use of title;  violation;  civil
penalty.
    (a)  Any  person  who  shall  assume the title "certified
public accountant" or use the abbreviation "CPA" or any words
or letters to indicate that the person using the  same  is  a
certified  public  accountant  without  having  been issued a
certificate under  the  provisions  of  this  Act  shall,  in
addition   to   any   other penalty provided  by  law,  pay a
civil penalty to the Board in an amount not to exceed  $5,000
for   each  offense  as  determined  by the Board.  The civil
penalty shall be assessed by the Board  after  a  hearing  is
held  in  accordance  with the provisions set  forth  in this
Act  regarding  the  provision   of   a   hearing   for   the
discipline of a licensee.
    (b)  The   Board   has   the   authority   and  power  to
investigate   any  and  all  alleged  improper  use  of   the
certified public accountant title or CPA designation.
    (c)  The   civil   penalty   shall   be  paid  within  60
days after the effective date of the order imposing the civil
penalty. The order  shall constitute  a judgment and  may  be
filed  and  execution  had  thereon in the same manner as any
judgment from any court of record.

    (225 ILCS 450/9.2) (from Ch. 111, par. 5510.2)
    Sec. 9.2.  Powers and duties of the Board.
    (a) The Board Department shall exercise  the  powers  and
duties  prescribed  by  "The  Civil  Administrative  Code  of
Illinois"  for the administration of licensing acts and shall
exercise such other powers and duties invested by this Act.
    (b)  The Board Director may promulgate  rules  consistent
with  the  provisions  of this Act for the administration and
enforcement thereof, and for the payment  of  fees  connected
therewith  and  may  prescribe forms which shall be issued in
connection therewith.  The rules shall include standards  and
criteria   for   licensure   and   professional  conduct  and
discipline.  The Department shall consult with the  Committee
in  promulgating  rules.  Notice of proposed rulemaking shall
be transmitted to the  Committee  and  the  Department  shall
review  the Committee's response and any recommendations made
therein.   The  Department  shall  notify  the  Committee  in
writing with explanation of deviations from  the  Committee's
recommendations and responses.
    (c)  The  Department  may  solicit  the advice and expert
knowledge of the Committee on  any  matter  relating  to  the
administration and enforcement of this Act.
    (d)  The   Department   shall   issue  quarterly  to  the
Committee a report of the status of all complaints related to
the profession received by the Department.
(Source: P.A. 83-291.)

    (225 ILCS 450/11) (from Ch. 111, par. 5512)
    Sec. 11. Exemption from Act. Nothing in  this  Act  shall
prohibit  any  person  who  may  be  engaged  by  one or more
persons, partnerships or corporations, from keeping books, or
from making trial balances or statements, or, as an employee,
from making audits or preparing reports,  provided  that  the
person  does  not  indicate  or  in any manner imply that the
trial balances, statements, or reports have been prepared  or
examined  by  a  certified  public  accountant  or a licensed
certified  public  accountant  or  that  they  represent  the
independent opinion of a certified  public  accountant  or  a
licensed  certified  public  accountant.  Nothing in this Act
shall prohibit any person from preparing tax and  information
returns  or  from  acting  as  representative or agent at tax
inquiries, examinations or proceedings, or from preparing and
installing accounting systems, or from reviewing accounts and
accounting  methods  for  the  purpose  of  determining   the
efficiency  of  accounting  methods  or  appliances,  or from
studying matters of organization, provided  that  the  person
does  not  indicate  or  in any manner imply that the reports
have  been  prepared  by,  or  that  the  representation   or
accounting  work  has  been  performed  by a certified public
accountant  or  a  licensed  certified   public   accountant.
Unlicensed accountants are not prohibited from performing any
services   that   they  may  have  performed  prior  to  this
Amendatory Act of 1983.
(Source: P.A. 88-36.)

    (225 ILCS 450/13) (from Ch. 111, par. 5514)
    Sec.   13.   Application   for   licensure.   A   person,
partnership,  limited  liability  company,   or   corporation
desiring  to  practice  public accounting in this State shall
make application to the Board Department for licensure  as  a
licensed  certified  public  accountant and shall pay the fee
required by Section 17.
    Applicants have 3 years from the date of  application  to
complete  the  application  process.   If the process has not
been completed in 3 years, the application shall  be  denied,
the fee forfeited and the applicant must reapply and meet the
requirements in effect at the time of reapplication.
(Source: P.A. 88-36.)

    (225 ILCS 450/14) (from Ch. 111, par. 5515)
    Sec.  14.  Qualifications.  The  Board  Department  shall
license   as   licensed   certified  public  accountants  the
following:
    (a)  All persons  who  have  received  or  who  hereafter
receive certificates as certified public accountants from the
Board,   who   have  had  at  least  one  year  of  full-time
experience, or its equivalent, providing any type of  service
or advice involving the use of accounting, attest, management
advisory,  financial  advisory,  tax,  or  consulting skills,
which  may  be  gained  through  employment  in   government,
industry, academia, or public practice.
    If  the  applicant's  certificate  was issued more than 4
years prior to the application for an internal license  under
this  Section,  the  applicant  shall submit any evidence the
Board  Department  may  require  showing  the  applicant  has
completed not less than 90 hours of  continuing  professional
education  acceptable  to  the  Board Department within the 3
years immediately preceding the date of application.
    The Committee shall be the sole and final  judge  of  the
qualification of experience under this section.
    (b)  All  partnerships,  limited  liability companies, or
corporations, or other entities engaged in  the  practice  of
public  accounting  in  this  State and meeting the following
requirements:
         (1)  (Blank).
         (2)  A majority of the ownership  of  the  firm,  in
    terms  of  financial  interests  and voting rights of all
    partners, officers, shareholders, members,  or  managers,
    belongs  to  persons  licensed  in  some  state,  and the
    partners, officers, shareholders,  members,  or  managers
    whose  principal  place  of business is in this State and
    who practice public accounting in this State, as  defined
    in  Section 8 of this Act, hold a valid license issued by
    this State.
         (3)  It shall be lawful for a nonprofit  cooperative
    association   engaged   in   rendering  an  auditing  and
    accounting service to its members only,  to  continue  to
    render  that  service  provided  that  the  rendering  of
    auditing   and  accounting  service  by  the  cooperative
    association shall at all times be under the  control  and
    supervision of licensed certified public accountants.
         (4)  The   Board  Department  may  adopt  rules  and
    regulations as necessary to provide for the  practice  of
    public  accounting  by  business  entities  that  may  be
    otherwise  authorized  by  law  to  conduct  business  in
    Illinois.
    The   Director   shall   appoint   a   Public  Accountant
Registration Committee as follows: 7  persons  who  shall  be
appointed  by  and shall serve in an advisory capacity to the
Director.  Six members must be licensed  public  accountants,
in  good  standing,  and  must  be  actively  engaged  in the
practice of public accounting in this State, and  one  member
of  the  public,  who  is  not  licensed under this Act, or a
similar  Act  of  another  jurisdiction,  and,  who  has   no
connection   with   the   accounting   or  public  accounting
profession.  Members shall serve 4 year terms and until their
successors are appointed and qualified.  No member  shall  be
reappointed   to   the  Committee  for  more  than  2  terms.
Appointments to fill vacancies shall  be  made  in  the  same
manner as original appointments, for the unexpired portion of
the  vacated  term.    The membership of the Committee should
reasonably reflect representation from the  geographic  areas
in this State.
    The  members  of  the Committee appointed by the Director
shall receive reasonable compensation, to  be  determined  by
the   Department,   for   the    necessary,  legitimate,  and
authorized expenses approved by the Department. All  expenses
shall   be   paid   from   the  Registered  Certified  Public
Accountants' Administration and Disciplinary Fund.
    The Director may terminate the appointment of any  member
for cause.
    The    Director    shall    consider   the   advice   and
recommendations  of  the  Committee  on  questions  involving
standards   of   professional   conduct,    discipline    and
qualifications of candidates and licensees under this Act.
(Source: P.A. 91-508, eff. 8-13-99; 91-827, eff. 6-13-00.)
    (225 ILCS 450/14.1)
    Sec.  14.1.  Foreign  accountants.   The Board Department
shall issue a license to a holder of a  foreign  designation,
granted  in a foreign country entitling the holder thereof to
engage in the practice of public accounting, provided:
    (a)  The applicant is the holder of  a  certificate  from
the Board issued under Section 2, 5, or 5.1 of this Act; and
    (b)  The  foreign  authority that granted the designation
makes similar provision to allow a person who holds  a  valid
license  issued by this State to obtain a foreign authority's
comparable designation; and
    (c)  The foreign designation (i) was  duly  issued  by  a
foreign  authority  that  regulates  the  practice  of public
accounting and the foreign designation  has  not  expired  or
been  revoked or suspended; (ii) entitles the holder to issue
reports upon financial statements; and (iii) was issued  upon
the   basis   of  educational,  examination,  and  experience
requirements established by the foreign authority or by  law;
and
    (d)  The  applicant (i) received the designation based on
standards substantially equivalent to those in effect in this
State at the time the foreign designation  was  granted;  and
(ii)   completed  an  experience  requirement,  substantially
equivalent to the requirement set out in Section 14,  in  the
jurisdiction  that  granted  the  foreign  designation or has
completed 5 years of experience in  the  practice  of  public
accounting  in  this  State, or meets equivalent requirements
prescribed by the Board Department by  rule,  within  the  10
years immediately preceding the application.
(Source: P.A. 88-36.)

    (225 ILCS 450/14.2)
    Sec. 14.2.  Licensure by endorsement.
    (a)  The  Board  Department  shall  issue  a license as a
licensed certified public accountant  to  any  applicant  who
holds  a  certificate as a certified public accountant issued
by the Board and who  holds  a  valid  unrevoked  license  or
permit  to practice as a licensed certified public accountant
issued under the laws of any other state or territory of  the
United States or the District of Columbia, provided:
         (1)  the  individual  applicant is determined by the
    Board  Department  to  possess  personal   qualifications
    substantially   equivalent   to   this   State's  current
    licensing requirements;
         (2)  at the time the applicant received his  or  her
    current  valid  and  unrevoked  license  or  permit,  the
    applicant    possessed    qualifications    substantially
    equivalent  to  the  qualifications for licensure then in
    effect in this State; or
         (3)  the   applicant   has,   after   passing    the
    examination upon which his or her license or other permit
    to   practice  was  based,  not  less  than  4  years  of
    experience in the practice of  public  accounting  within
    the 10 years immediately before the application.
    (b)  In  determining  the  substantial equivalency of any
state's requirements to  Illinois'  requirements,  the  Board
Department  may  rely  on  the determinations of the National
Qualification Appraisal Service of the  National  Association
of  State  Boards  of Accountancy or such other qualification
appraisal service as it deems appropriate.
(Source: P.A. 91-508, eff. 8-13-99; 91-779, eff. 6-9-00.)

    (225 ILCS 450/14.3)
    Sec.  14.3.  Additional  requirements  for   firms.    In
addition   to   the   ownership  requirements  set  forth  in
subsection (b) of Section 14, all firms licensed  under  this
Act shall meet the following requirements:
    (a)  All owners of the firm who are not licensed shall be
active participants in the firm or its affiliated entities.
    (b)  An  individual  who  supervises services for which a
license is required under Section 8 of this Act or who  signs
or  authorizes another to sign any report for which a license
is required under Section 8 of this Act shall hold  a  valid,
unrevoked  license from this State or another state and shall
comply with such additional experience requirements as may be
required by rule of the Board Department.
    (c)  The firm shall require that all owners of the  firm,
whether  or  not certified or licensed under this Act, comply
with rules promulgated under this Act.
    (d)  The firm shall designate to the Board Department  in
writing  an  individual  licensed under this Act who shall be
responsible for the proper registration of the firm.
(Source: P.A. 91-508, eff. 8-13-99.)

    (225 ILCS 450/16) (from Ch. 111, par. 5517)
    Sec. 16. Expiration and renewal of licenses;  renewal  of
registration; continuing education.
    (a)  The  expiration  date  and  renewal  period for each
license issued under this Act shall be set by rule.
    (b)  Every application for renewal of a  license  by  any
person  who  has  been licensed under this Act for 3 years or
more shall be accompanied or supported by  any  evidence  the
Board   Department   shall   prescribe,  in  satisfaction  of
completing,  each  3  years,  not  less  than  120  hours  of
qualifying  continuing   professional   education   programs.
Applications  for renewal by any person who has been licensed
less than 3  years  shall  be  accompanied  or  supported  by
evidence  of  completion of 20 hours of qualifying continuing
professional education programs for each full 6 months  since
the  date of licensure or last renewal. Qualifying continuing
education  programs  include  those   given   by   continuing
education  sponsors registered with the Board, those given by
the American Institute of CPAs, the Illinois CPA  Foundation,
and   programs   given   by  sponsors  approved  by  national
accrediting organizations approved by the Board. in  subjects
given  by  continuing  education  sponsors  registered by the
Department  upon  recommendation  of   the   Committee.   All
continuing   education   sponsors   applying   to  the  Board
Department for registration shall be required  to  submit  an
initial nonrefundable application fee set by Board Department
rule.  Each  registered continuing education sponsor shall be
required to pay an annual renewal fee set by Board Department
rule.   Publicly  supported   colleges,   universities,   and
governmental  agencies  located  in  Illinois are exempt from
payment of any fees required for continuing education sponsor
registration.  Failure by a continuing education  sponsor  to
be  licensed  or  pay  the fees prescribed in this Act, or to
comply with the rules  and  regulations  established  by  the
Board  Department  under  this Section regarding requirements
for  continuing  education   courses   or   sponsors,   shall
constitute grounds for revocation or denial of renewal of the
sponsor's  registration.  All  other  courses or programs may
qualify  upon  presentation  by  the  licensee  of   evidence
satisfactory  to  the  Board that the course or program meets
all Board rules for qualifying education programs.
    Notwithstanding the preceding paragraph,  the  Department
may  accept courses and sponsors approved by other states, by
the American Institute of Certified  Public  Accountants,  by
other   state  CPA  societies,  or  by  national  accrediting
organizations such  as  the  National  Association  of  State
Boards  of  Accountancy;  provided, however, that the sponsor
must register with the Department and pay the required fee if
its courses are presented in the State of Illinois.
    Failure by an applicant for renewal of  a  license  as  a
public  accountant  to  furnish the evidence shall constitute
grounds for disciplinary action, unless the Board  Department
in  its  discretion  shall determine the failure to have been
due to  reasonable  cause.   The  Board  Department,  in  its
discretion,  may  renew  a license despite failure to furnish
evidence  of  satisfaction  of  requirements  of   continuing
education   upon   condition  that  the  applicant  follow  a
particular program or schedule of continuing  education.   In
issuing  rules, regulations, and individual orders in respect
of requirements of continuing education, the Board Department
in its discretion may, among other things, use and rely  upon
guidelines  and  pronouncements of recognized educational and
professional associations; may prescribe rules  for  content,
duration,  and  organization  of  courses;  shall  take  into
account   the   accessibility  to  applicants  of  continuing
education  as  it  may  require,  and  any   impediments   to
interstate practice of public accounting that may result from
differences  in requirements in other states; and may provide
for relaxation or suspension of  requirements  in  regard  to
applicants  who  certify that they do not intend to engage in
the practice of  public  accounting,  and  for  instances  of
individual hardship.
    The  Board Department shall establish by rule a means for
the verification of completion of  the  continuing  education
required   by   this   Section.   This  verification  may  be
accomplished  through  audits  of   records   maintained   by
registrants;  by requiring the filing of continuing education
certificates with the Board Department;  or  by  other  means
established by the Board Department.
    The  Board  Department may establish, by rule, guidelines
for acceptance of continuing education on behalf of  licensed
certified  public  accountants  taking  continuing  education
courses in other jurisdictions.
(Source: P.A. 87-435; 87-546; 88-36.)

    (225 ILCS 450/17) (from Ch. 111, par. 5518)
    Sec.  17.  Fees;  returned  checks;  fines.  Each person,
partnership, limited liability company, and  corporation,  to
which  a license is issued, shall pay a fee to be established
by the Board Department which allows the Board Department  to
pay  all costs and expenses incident to the administration of
this Act.  Interim licenses shall be at full rates.
    The Board Department, by rule, shall establish fees to be
paid for certification of records, and copies of this Act and
the rules issued for administration of this Act.
    Any person who delivers a check or other payment  to  the
Board  Department  that  is  returned to the Board Department
unpaid by the financial institution upon which  it  is  drawn
shall  pay to the Board Department, in addition to the amount
already owed to the Board Department, a fine in an amount  to
be  established  by  Board rule of $50. If the check or other
payment was for a renewal or issuance  fee  and  that  person
practices  without paying the renewal fee or issuance fee and
the  fine  due,  an  additional  fine  in  an  amount  to  be
established by Board rule of $100 shall be imposed. The fines
imposed  by  this  Section  are  in  addition  to  any  other
discipline provided under this Act for unlicensed practice or
practice on a nonrenewed license. The Board Department  shall
notify  the  person  that  payment of fees and fines shall be
paid to the Board Department  by  certified  check  or  money
order  within 30 calendar days of the notification. If, after
the expiration of 30 days from the date of the  notification,
the person has failed to submit the necessary remittance, the
Board Department shall automatically terminate the license or
certificate  or  deny  the  application, without hearing. If,
after termination or denial, the person seeks  a  license  or
certificate,  he  or  she shall apply to the Board Department
for restoration or issuance of the license or certificate and
pay all fees and fines due to the Board Department. The Board
Department may establish a  fee  for  the  processing  of  an
application  for  restoration  of a license or certificate to
pay all expenses of processing this  application.  The  Board
Director  may  waive  the  fines  due  under  this Section in
individual cases where the  Board  Director  finds  that  the
fines would be unreasonable or unnecessarily burdensome.
(Source: P.A. 87-1031; 88-36.)

    (225 ILCS 450/17.1) (from Ch. 111, par. 5518.1)
    Sec.  17.1.  Any licensed certified public accountant who
has permitted his license  to  expire  or  who  has  had  his
license  on  inactive status may have his license restored by
making application to the Board Department and  filing  proof
acceptable to the Board Department of his fitness to have his
license  restored,  including  sworn  evidence  certifying to
active practice in another jurisdiction satisfactory  to  the
Board  Department  and by paying the required restoration fee
and by submitting proof of the required continuing education.
    If the  licensed  certified  public  accountant  has  not
maintained   an   active  practice  in  another  jurisdiction
satisfactory to the Board Department,  the  Board  Department
shall  determine,  by  an  evaluation  program established by
rule, fitness to resume active status  and  may  require  the
applicant   to  complete  a  period  of  supervised  auditing
experience.
    However, any licensed certified public  accountant  whose
license expired while he was (1) in Federal Service on active
duty with the Armed Forces of the United States, or the State
Militia  called  into service or training, or (2) in training
or education under  the  supervision  of  the  United  States
preliminary  to induction into the military service, may have
his license renewed reinstated or restored without paying any
lapsed renewal and restoration fees if within 2  years  after
honorable  termination of such service, training or education
except under conditions other than  honorable,  he  furnished
the Board Department with satisfactory evidence to the effect
that he has been so engaged and that his service, training or
education has been so terminated.
(Source: P.A. 84-1299.)

    (225 ILCS 450/17.2) (from Ch. 111, par. 5518.2)
    Sec.  17.2.  Any licensed certified public accountant who
notifies the Board Department in writing on forms  prescribed
by the Board Department, may elect to place his license on an
inactive  status  and  shall,  subject  to rules of the Board
Department, be excused from payment of renewal fees until  he
notifies  the  Board  Department  in writing of his desire to
resume active status.
    Any  licensed  certified  public  accountant   requesting
restoration from inactive status shall be required to pay the
current renewal fee, shall be required to submit proof of the
required  continuing  education,  and  shall  be  required to
restore his license, as provided in this Act.
    Any licensed certified public accountant whose license is
in an inactive status shall not practice public accounting in
this State of Illinois.
    The Board Department may, in its discretion, license as a
licensed certified  public  accountant,  on  payment  of  the
required fee, an applicant who is a licensed certified public
accountant licensed under the laws of another jurisdiction if
the  requirements  for licensure of licensed certified public
accountants in the jurisdiction in which  the  applicant  was
licensed  were,  at  the date of his licensure, substantially
equivalent to the requirements in force in this State on that
date.
    Applicants have 3 years from the date of  application  to
complete  the  application  process.   If the process has not
been completed in 3 years, the application shall  be  denied,
the fee forfeited and the applicant must reapply and meet the
requirements in effect at the time of reapplication.
(Source: P.A. 86-615.)

    (225 ILCS 450/19) (from Ch. 111, par. 5520)
    Sec.  19.   Hearings.  The Board, or a committee thereof,
shall Committee established under the provisions  of  Section
14  shall,  upon  designation  by  the Director, hear charges
which, if proved, would constitute grounds  for  disciplinary
action;  shall hear applications for restoration of a license
and the issuance of registration cards as licensed  certified
public   accountants  of  any  person,  partnership,  limited
liability company, or  corporation  whose  license  has  been
suspended  or  revoked;  and  shall  report  its findings and
recommendations  in  connection  therewith   to   the   Board
Director, all as provided in Section 20.01.
    The   Board   Department,   upon  recommendation  of  the
Committee shall also have power to promulgate and amend rules
of professional conduct that shall apply to persons certified
or every person licensed under this Act.
(Source: P.A. 88-36.)

    (225 ILCS 450/20.01) (from Ch. 111, par. 5521.01)
    Sec. 20.01.  Grounds for discipline; license.
    (a)  The Board Department may refuse to issue  or  renew,
or may revoke, suspend, or reprimand any license or licensee,
place a licensee on probation for a period of time subject to
any  conditions  the  Board  Committee  may specify including
requiring the licensee to attend continuing education courses
or to work under the supervision of another licensee,  impose
a  fine not to exceed $5,000 for each violation, restrict the
authorized scope  of  practice,  or  require  a  licensee  to
undergo  a  peer  review  program, for any one or more of the
following:
         (1)  Violation of any provision of this Act.
         (2)  Attempting to procure  a  license  to  practice
    public    accounting    by    bribery    or    fraudulent
    misrepresentations.
         (3)  Having  a license to practice public accounting
    revoked, suspended, or otherwise acted against, including
    the denial of licensure, by the  licensing  authority  of
    another  state,  the  District of Columbia, or any United
    States territory territory, or country.  No  disciplinary
    action  shall be taken in Illinois if the action taken in
    another jurisdiction was based upon failure to  meet  the
    continuing  professional  education  requirements of that
    jurisdiction  and  the  applicable  Illinois   continuing
    professional education requirements are met.
         (4)  Being  convicted or found guilty, regardless of
    adjudication,  of  a  crime  in  any  jurisdiction  which
    directly relates to the practice of public accounting  or
    the ability to practice public accounting.
         (5)  Making  or  filing a report or record which the
    registrant knows to be false, willfully failing to file a
    report or  record  required  by  state  or  federal  law,
    willfully impeding or obstructing the filing, or inducing
    another  person  to  impede  or obstruct the filing.  The
    reports or records shall  include  only  those  that  are
    signed  in  the  capacity  of a licensed certified public
    accountant.
         (6)  Conviction in this  or  another  State  or  the
    District  of Columbia, or any United States Territory, of
    any crime that is punishable  by  one  year  or  more  in
    prison  or  conviction of a crime in a federal court that
    is punishable by one year or more in prison.
         (7)  Proof that the licensee is guilty of  fraud  or
    deceit,   or   of   gross  negligence,  incompetency,  or
    misconduct, in the practice of public accounting.
         (8)  Violation of any rule adopted under this Act.
         (9)  Practicing on a revoked, suspended, or inactive
    license.
         (10)  Suspension  or  revocation  of  the  right  to
    practice before any State.
         (11)  Conviction of any crime under the laws of  the
    United  States  or  any  state or territory of the United
    States that is a felony or misdemeanor and has dishonesty
    as essential element, or of any crime  that  is  directly
    related to the practice of the profession.
         (12)  Making  any  misrepresentation for the purpose
    of obtaining  a  license,  or  material  misstatement  in
    furnishing information to the Board Department.
         (13)  Aiding   or   assisting   another   person  in
    violating any provision of this Act or rules  promulgated
    hereunder.
         (14)  Engaging   in   dishonorable,   unethical,  or
    unprofessional conduct of a character likely to  deceive,
    defraud,  or  harm  the public and violating the rules of
    professional conduct adopted by the Board Department.
         (15)  Habitual or  excessive  use  or  addiction  to
    alcohol,  narcotics,  stimulants,  or  any other chemical
    agent or drug that results in the inability  to  practice
    with reasonable skill, judgment, or safety.
         (16)  Directly  or indirectly giving to or receiving
    from  any  person,  firm,  corporation,  partnership,  or
    association any fee, commission, rebate, or other form of
    compensation for any professional  service  not  actually
    rendered.
         (17)  Physical   or   mental  disability,  including
    deterioration  through  the  aging  process  or  loss  of
    abilities and skills that results  in  the  inability  to
    practice  the  profession with reasonable judgment, skill
    or safety.
         (18)  Solicitation of professional services by using
    false or misleading advertising.
         (19)  Failure to file a  return,  or  pay  the  tax,
    penalty  or  interest  shown in a filed return, or to pay
    any final assessment of  tax,  penalty  or  interest,  as
    required  by  any  tax  Act  administered by the Illinois
    Department of Revenue or  any  successor  agency  or  the
    Internal Revenue Service or any successor agency.
         (20)  Practicing  or  attempting to practice under a
    name other than the full name as shown on the license  or
    any other legally authorized name.
         (21)  A  finding  by  the  Board  Department  that a
    licensee has not complied with a provision of any  lawful
    order issued by the Board Department.
         (22)  Making   a   false   statement  to  the  Board
    Department   regarding   compliance    with    continuing
    professional education requirements.
         (23)  Failing  to  make  a substantive response to a
    request for information by the Board Department within 30
    days of the request.
    (b)  (Blank).
    (c)  In rendering an order, the Board Director shall take
into consideration the facts and circumstances involving  the
type  of  acts  or omissions in subsection (a) including, but
not limited to:
         (1)  the extent to which public  confidence  in  the
    public accounting profession was, might have been, or may
    be injured;
         (2)  the  degree  of  trust and dependence among the
    involved parties;
         (3)  the  character  and  degree  of  financial   or
    economic harm which did or might have resulted; and
         (4)  the  intent  or  mental  state  of  the  person
    charged at the time of the acts or omissions.
    (d)  The  Board Department shall reissue the license upon
a showing certification by the Committee that the disciplined
licensee has complied with  all of the terms  and  conditions
set forth in the final order.
    (e)  The  Board Department shall deny any application for
a license or renewal, without hearing, to any person who  has
defaulted  on  an educational loan guaranteed by the Illinois
Student Assistance Commission; however, the Board  Department
may  issue  a license or renewal if the person in default has
established a satisfactory repayment record as determined  by
the Illinois Student Assistance Commission.
    (f)  The  determination  by  a  court  that a licensee is
subject to involuntary admission  or  judicial  admission  as
provided  in the Mental Health and Developmental Disabilities
Code will result in the automatic suspension of  his  or  her
license.   The  suspension will end upon a finding by a court
that  the  licensee  is  no  longer  subject  to  involuntary
admission or judicial admission and  ,  the  issuance  of  an
order  so  finding  and  discharging  the  patient,  and  the
recommendation  of  the  Committee  to  the Director that the
licensee be allowed to resume professional practice.
(Source: P.A. 90-655, eff. 7-30-98.)

    (225 ILCS 450/20.1) (from Ch. 111, par. 5522)
    Sec. 20.1.  Investigations; notice;  hearing.  The  Board
Department  may,  upon  its  own  motion, and shall, upon the
verified complaint in writing of  any  person  setting  forth
facts   which,   if  proved,  would  constitute  grounds  for
disciplinary  action  as  set   forth   in   Section   20.01,
investigate  the  actions  of any person or entity. The Board
Department may  refer  complaints  and  investigations  to  a
disciplinary  body of the accounting profession for technical
assistance.    The   results   of   an   investigation    and
recommendations of the disciplinary body may be considered by
the   Board   Department,   but   shall   not  be  considered
determinative and the Board Department shall not in  any  way
be obligated to take any action or be bound by the results of
the  accounting  profession's  disciplinary  proceedings. The
Board, Department before taking  disciplinary  action,  shall
afford  the  concerned  party  or  parties  an opportunity to
request a hearing and if so requested shall set  a  time  and
place  for  a hearing of the complaint.  The Board Department
shall notify the applicant or the licensed person  or  entity
of  any charges made and the date and place of the hearing of
those charges by mailing notice thereof  to  that  person  or
entity  by  registered  or  certified  mail to the place last
specified by  the  accused  person  or  entity  in  the  last
notification  to the Board Department, at least 30 days prior
to the date set for the  hearing  or  by  serving  a  written
notice  by  delivery  of  the notice to the accused person or
entity at least 15  days  prior  to  the  date  set  for  the
hearing, and shall direct the applicant or licensee to file a
written  answer  to the Board under oath within 20 days after
the service  of  the  notice  and  inform  the  applicant  or
licensee  that  failure  to  file  an  answer  will result in
default being taken against the  applicant  or  licensee  and
that  the  license  or certificate may be suspended, revoked,
placed on probationary status, or other  disciplinary  action
may  be taken, including limiting the scope, nature or extent
of practice, as the Board Director may deem proper.  In  case
the  person  fails  to file an answer after receiving notice,
his or her license or certificate may, in the  discretion  of
the  Board  Department,  be  suspended, revoked, or placed on
probationary  status,  or  the  Board  Department  may   take
whatever   disciplinary   action   deemed  proper,  including
limiting  the  scope,  nature,  or  extent  of  the  person's
practice or the imposition of a fine, without a  hearing,  if
the  act  or  acts  charged constitute sufficient grounds for
such action under this Act. The Board Department shall afford
the accused person or entity an opportunity to  be  heard  in
person  or  by  counsel  at  the  hearing.   Following At the
conclusion of the hearing the  Board  Committee  shall  issue
present  to the Director a written order setting forth report
of its finding of facts, conclusions of law, and penalties to
be imposed recommendations.  The order report shall contain a
finding whether or not the accused person violated  this  Act
or failed to comply with the conditions required in this Act.
The  Committee  shall  specify the nature of the violation or
failure to  comply,  and  make  its  recommendations  to  the
Director.
    The  report  of  findings of fact, conclusions of law and
recommendations of the Committee shall be the basis  for  the
Department's  disciplinary action.  If the Director disagrees
in any regard with the report,  he  may  issue  an  order  in
contravention  of  the  report.  The Director shall provide a
written explanation to the Committee of any  deviations  from
their  report,  and  shall  specify  with  particularity  the
reasons of that action in the final order. The finding is not
admissible  in  evidence  against  the  person  in a criminal
prosecution brought for the violation of this  Act,  but  the
hearing  and findings are not a bar to a criminal prosecution
brought for the violation of this Act.
(Source: P.A. 87-1031; 88-36.)

    (225 ILCS 450/20.2) (from Ch. 111, par. 5523)
    Sec. 20.2.  The Board Department may either  directly  or
through  its  Committee  subpoena  and bring before it at any
hearing any person in this State and take  testimony  through
the  Committee  either orally or by deposition, or both, with
the  same  fees  and  mileage  and  in  the  same  manner  as
prescribed by law in judicial proceedings in civil  cases  in
circuit courts of this State.
    The  Chairman of the Board Director, or any member of the
Board Committee designated by the Chairman,  or  any  hearing
officer  appointed  pursuant  to  Section  20.6, Director may
administer oaths to witnesses at any hearing which the  Board
Department  is  authorized  by  law to conduct, and any other
oaths required or authorized in any Act administered  by  the
Board Department.
(Source: P.A. 83-338.)

    (225 ILCS 450/20.3) (from Ch. 111, par. 5524)
    Sec.  20.3.  Any  circuit court in the State of Illinois,
upon the application of the accused  person,  partnership  or
corporation,  of  the complainant or of the Board Department,
may,  by  order  duly  entered,  require  the  attendance  of
witnesses and the production of  relevant  books  and  papers
before  the  Board  Department  at  any hearing relative to a
disciplinary action and the court may compel obedience to the
order by proceedings for contempt.
(Source: P.A.83-291; 83-334.)

    (225 ILCS 450/20.4) (from Ch. 111, par. 5525)
    Sec. 20.4. The Board Department, at  its  expense,  shall
provide  a  stenographer  to  take  down  the  testimony  and
preserve   a   record  of  all  proceedings  at  disciplinary
hearings. The Board Department shall furnish a transcript  of
that  record  to  any  person interested in that hearing upon
payment of the  reasonable  cost  established  by  the  Board
Department.
(Source: P.A. 83-291.)

    (225 ILCS 450/20.5) (from Ch. 111, par. 5526)
    Sec.  20.5.  Rehearing. In any disciplinary proceeding, a
copy of the Board's order Committee's report shall be  served
upon  the  respondent by the Department, either personally or
as provided in this Act for the  service  of  the  notice  of
hearing.   Within  20 days after such service, the respondent
may present to the Board Department a motion in writing for a
rehearing, which motion shall specify the particular  grounds
therefor.  If no motion for rehearing is filed, then upon the
expiration of the time specified for filing such a motion, or
if a motion or rehearing is denied, then upon such denial the
determination  of the Board shall be final Director may enter
an order in accordance with recommendations of the  Committee
except  as  provided  in  Section  20.6  of this Act.  If the
respondent shall order from the reporting  service,  and  pay
for  a  transcript of the record within the time for filing a
motion for rehearing, the 20 day period within which  such  a
motion  may  be filed shall commence upon the delivery of the
transcript to the respondent.
    Whenever  the  Director  is  satisfied  that  substantial
justice has not been done in the disciplinary proceeding, the
Director may order a rehearing by the Committee or designated
hearing officer.
    Upon the suspension or revocation  of  a  certificate  or
license  the  licensee  shall be required to surrender to the
Board Department the certificate or  license  issued  by  the
Board  Department,  and upon failure or refusal so to do, the
Board Department may seize it.
    The Board Department may exchange information relating to
proceedings  resulting   in   disciplinary   action   against
licensees  with  the  regulatory  licensing  bodies  of other
states,  or  with  other  public   authorities   or   private
organizations having regulatory interest in such matter.
(Source: P.A. 88-36.)

    (225 ILCS 450/20.6) (from Ch. 111, par. 5526.6)
    Sec.  20.6.  Notwithstanding  the  provisions  of Section
20.2 of this Act, the Board Director shall have the authority
to appoint any attorney duly licensed to practice law in  the
State  of  Illinois  to  serve  as the hearing officer in any
disciplinary action.  The Director shall notify the Committee
of such appointment.
    The hearing officer shall have full authority to  conduct
the  hearing.   The hearing officer shall report his findings
of fact, conclusions of law and recommendations to the  Board
Committee  and  the Director.  The Board Committee shall have
60 days from receipt of the report to review  the  report  of
the  hearing  officer  and  present  their  findings of fact,
conclusions of law and recommendations to the  Director.   If
the  Committee  fails to present its report within the 60 day
period, the Director shall issue an order based on the report
of the hearing officer unless it.  If the Director  disagrees
in  any  regard  with  the report of the Committee or hearing
officer,  in  which  case  it  he  may  issue  an  order   in
contravention  thereof, which order may require a new hearing
as to some or all of  the  facts  in  dispute  or  may  issue
findings  of  fact  and  conclusions  of  law contrary to the
findings  and  conclusions  of  the  hearing  officer.    The
Director shall provide a written explanation to the Committee
of  any  such deviations and shall specify with particularity
the reasons for said action in the final order.
(Source: P.A. 83-291.)

    (225 ILCS 450/21) (from Ch. 111, par. 5527)
    Sec. 21. Judicial review; cost of record; order as  prima
facie proof.
    (a)  All  final  administrative  decisions  of  the Board
Department hereunder shall  be  subject  to  judicial  review
pursuant  to the provisions of the Administrative Review Law,
and all amendments and modifications thereof, and  the  rules
adopted pursuant thereto.  The term "administrative decision"
is  defined  as  in  Section  3-101  of  the  Code  of  Civil
Procedure.
    Proceedings for judicial review shall be commenced in the
Circuit  Court  of the county in which the party applying for
review resides;  provided,  that  if  such  party  is  not  a
resident  of  this  State,  the  venue  shall be in Sangamon,
Champaign, or Cook County.
    (b)  The  Board  Department  shall  not  be  required  to
certify any record to the court or file any answer  in  court
or  otherwise  appear  in  any  court  in  a  judicial review
proceeding, unless there is  filed  in  the  court  with  the
complaint  a  receipt from the Board Department acknowledging
payment of the costs of furnishing and certifying the record,
which costs shall be established  by  the  Board  Department.
Exhibits  shall  be  certified  without cost.  Failure on the
part of the plaintiff to file such receipt in court shall  be
grounds for dismissal of the action.
    (c)  An  order of disciplinary action or a certified copy
thereof, over the seal of the Board Department and purporting
to be signed by the Chairman or authorized agent of the Board
Director, shall  be  prima  facie  proof,  subject  to  being
rebutted, that:
         (1)  the  signature  is the genuine signature of the
    Chairman or authorized agent of the Board Director;
         (2)  the Chairman or authorized agent of  the  Board
    Director is duly appointed and qualified; and
         (3)  the Board Committee and the members thereof are
    qualified to act.
(Source: P.A. 91-357, eff. 7-29-99.)

    (225 ILCS 450/26) (from Ch. 111, par. 5532)
    Sec.  26.  Rules  and  regulations.  The  Board  and  the
Department shall adopt all necessary and reasonable rules and
regulations  for the effective administration and enforcement
of the provisions of  this  Act;  and  without  limiting  the
foregoing  the  Board  shall  adopt  and  prescribe rules and
regulations  for  a  fair  and  wholly  impartial  method  of
determining the qualifications of applicants for  examination
and  for a fair and wholly impartial method of examination of
persons under Section 2 and may establish rules for  subjects
conditioned  and  for  the  transfer  of  credits  from other
jurisdictions with respect to subjects passed. All Department
university rules in effect on  the  effective  date  of  this
amendatory  Act  of  the  92nd  General  Assembly  1993 shall
continue in effect under the jurisdiction of the Board  until
changed by the Board.
(Source: P.A. 88-36.)

    (225 ILCS 450/27) (from Ch. 111, par. 5533)
    Sec. 27. A licensed certified public accountant shall not
be  required  by any court to divulge information or evidence
which has been obtained by him in his  confidential  capacity
as  a public accountant.  This Section shall not apply to any
investigation or hearing undertaken pursuant to this Act.
(Source: P.A. 83-291.)

    (225 ILCS 450/28) (from Ch. 111, par. 5534)
    Sec.  28.  Penalties.  Each   of   the   following   acts
perpetrated   in   the   State  of  Illinois  is  a  Class  B
misdemeanor.
    (a)  The practice of  public  accounting  insofar  as  it
consists  in  rendering  service  as  described in Section 8,
without licensure, in violation of  the  provisions  of  this
Act;
    (b)  The obtaining or attempting to obtain licensure as a
licensed certified public accountant by fraud;
    (c)  The  use  of the title "Certified Public Accountant"
or the abbreviation "C.P.A." or any similar words or  letters
indicating  the user is a certified public accountant, by any
person who has not received  a  certificate  as  a  certified
public accountant from the Board;
    (d)  The  use  of the title "Certified Public Accountant"
or the abbreviation "C.P.A." or any similar words or  letters
indicating that the members are certified public accountants,
by  any  partnership  unless  all  members thereof personally
engaged in the practice of public accounting  in  this  State
have  received  certificates  as certified public accountants
from the Board, are licensed  as  licensed  certified  public
accountants  by  the  Board Department, and are holders of an
effective unrevoked license, and the partnership is  licensed
as   licensed  certified  public  accountants  by  the  Board
Department with an effective unrevoked license;
    (e)  The use of  the  title  "licensed  certified  public
accountant",  "licensed  CPA",  "Public  Accountant",  or the
abbreviation  "P.A."  or  any  similar   words   or   letters
indicating   such  person  is  a  licensed  certified  public
accountant,  by  any  person  not  licensed  as  a   licensed
certified  public  accountant  by  the  Board Department, and
holding an effective unrevoked license; provided  nothing  in
this  Act shall prohibit the use of the title "Accountant" or
"Bookkeeper" by any person;
    (f)  The use of  the  title  "Licensed  Certified  Public
Accountants",   "Public   Accountants"  or  the  abbreviation
"P.A.'s" or any similar words or letters indicating that  the
members  are public accountants by any partnership unless all
members thereof personally engaged in the practice of  public
accounting  in  this State are licensed as licensed certified
public accountants by the Board Department and are holders of
effective unrevoked licenses, and the partnership is licensed
as  a  public  accounting  firm  accountants  by  the   Board
Department with an effective unrevoked licenses;
    (g)  Making  false  statements  to  the  Board Department
regarding compliance with continuing  professional  education
requirements.
(Source: P.A. 88-36.)

    (225 ILCS 450/30) (from Ch. 111, par. 5535)
    Sec.  30. The practice of public accounting, as described
in Section 8 of this Act, by any person in violation of  this
Act  is  hereby declared to be inimical to the public welfare
and to be a public nuisance. An action to perpetually  enjoin
from  such  unlawful  practice  any person who has been or is
engaged therein may be maintained in the name of  the  people
of the State of Illinois by the Attorney General of the State
of  Illinois,  by the State's Attorney of any county in which
the action is brought, by the  Board  Department  or  by  any
resident  citizen.  The  injunction  proceeding  shall  be in
addition to and  not  in  lieu  of  any  penalties  or  other
remedies  provided  by  this  Act.  No injunction shall issue
under this section against any person for  any  act  exempted
under Section 11 of this Act.
    If  any  person  shall  practice  as a licensed certified
public accountant or hold himself out as a licensed certified
public accountant without being licensed under the  provision
of  this  Act  then any licensed certified public accountant,
any interested party or any person injured  thereby  may,  in
addition  to  the  Board  Director,  petition  for  relief as
provided in subsection (a) of this Section.
    Whenever in the  opinion  of  the  Board  Department  any
person   violates  any  provision  of  this  Act,  the  Board
Department may issue a rule to show cause  why  an  order  to
cease and desist should not be entered against him.  The rule
shall  clearly set forth the grounds relied upon by the Board
Department and shall provide a period of 7 days from the date
of the rule to file an answer  to  the  satisfaction  of  the
Board  Department.   Failure to answer to the satisfaction of
the Board Department shall cause an order to cease and desist
to be issued forthwith.
(Source: P.A. 83-291.)

    (225 ILCS 450/30.1) (from Ch. 111, par. 5535.1)
    Sec. 30.1.  No person, partnership,  or  corporation,  or
other  entity  licensed  or authorized to practice under this
Act or any of its employees, partners, members,  officers  or
shareholders  shall  be  liable  to persons not in privity of
contract with such person, partnership,  or  corporation,  or
other   entity   for   civil  damages  resulting  from  acts,
omissions, decisions or  other  conduct  in  connection  with
professional  services performed by such person, partnership,
or corporation, or other entity, except for:
    (1)  such acts,  omissions,  decisions  or  conduct  that
constitute fraud or intentional misrepresentations, or
    (2)  such other acts, omissions, decisions or conduct, if
such  person,  partnership  or  corporation  was aware that a
primary  intent  of  the  client  was  for  the  professional
services  to  benefit  or  influence  the  particular  person
bringing the action; provided, however, for the  purposes  of
this  subparagraph  (2),   if  such  person,  partnership, or
corporation, or other entity (i) identifies in writing to the
client  those  persons  who  are  intended  to  rely  on  the
services, and (ii) sends a copy of such  writing  or  similar
statement  to  those  persons  identified  in  the writing or
statement, then such person, partnership, or corporation,  or
other  entity  or  any  of  its employees, partners, members,
officers or shareholders may be  held  liable  only  to  such
persons  intended to so rely, in addition to those persons in
privity  of  contract  with  such  person,  partnership,   or
corporation, or other entity.
(Source: P.A. 84-1251.)

    (225 ILCS 450/32) (from Ch. 111, par. 5537)
    Sec.  32.   (a)  This  subsection  (a) applies only until
July 1, 2004.
    All moneys received by  the  Department  of  Professional
Regulation  under  this  Act  shall  be  deposited  into  the
Registered  Certified  Public Accountants' Administration and
Disciplinary Fund, which is hereby created as a special  fund
in  the  State  Treasury.   The funds in the account shall be
used  by  the  Department  or  the  Board,  as  appropriated,
exclusively for expenses of the  Department  of  Professional
Regulation,   and   the   Public   Accountants'  Registration
Committee, or the Board in the administration of this Act.
    Moneys in the Registered  Certified  Public  Accountants'
Administration  and  Disciplinary  Fund  may  be invested and
reinvested, with all earnings received from  the  investments
to   be   deposited  into  the  Registered  Certified  Public
Accountants' Administration and Disciplinary Fund.
    Moneys from the Fund may also  be  used  for  direct  and
allocable  indirect  costs  related to the public purposes of
the Department  of  Professional  Regulation  or  the  Board.
Moneys  in  the  Fund  may  be transferred to the Professions
Indirect Cost Fund as authorized by Section 2105-300  of  the
Department   of   Professional   Regulation   Law   (20  ILCS
2105/2105-300).
    (b)  This subsection (b) applies beginning July 1, 2004.
    All moneys received by the Board under this Act shall  be
deposited  into  the Registered Certified Public Accountants'
Administration and Disciplinary Fund, a special fund  in  the
State  treasury.  The moneys in the Fund shall be used by the
Board, as  appropriated,  exclusively  for  expenses  of  the
Department  of  Professional  Regulation and the Board in the
administration of this Act.
    Moneys in the Registered  Certified  Public  Accountants'
Administration  and  Disciplinary  Fund  may  be invested and
reinvested, with all earnings received from  the  investments
to   be   deposited  into  the  Registered  Certified  Public
Accountants' Administration and Disciplinary Fund.
(Source: P.A. 91-239, eff. 1-1-00.)

    Section 99.  Effective date.  This  Section,  Section  5,
and  the  changes  to  Section  32  of  the  Illinois  Public
Accounting  Act  take  effect  upon  becoming law; all of the
other provisions take effect July 1, 2004.
    Passed in the General Assembly May 30, 2001.
    Approved August 21, 2001.

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