103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2296

 

Introduced 2/14/2023, by Rep. Natalie A. Manley

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Regulatory Sunset Act. Provides for the repeal of the Illinois Public Accounting Act on January 1, 2029 (rather than January 1, 2024). Amends the Illinois Public Accounting Act. Provides that all applicants and registrants shall: (1) provide a valid address and email address to the Department of Financial and Professional Regulation, which shall serve as the address of record and email address of record, respectively, at the time of application for registration or renewal of a registration and (2) inform the Department of any change of address of record or email address of record within 14 days after such change either through the Department's website or by contacting the Department's licensure maintenance unit. Provides that a license application shall have an applicant's federal individual taxpayer identification number. Provides that all CPA firms or sole practitioners required to undergo a peer review shall submit to the Department peer review reports; letters of response, if applicable; acceptance letters; letters signed by the reviewed CPA firm accepting the peer review documents with the understanding that the CPA firm agrees to take certain actions, if applicable; and letters notifying the reviewed CPA firm that certain required actions have been completed, if applicable. Provides that the Secretary of Financial and Professional Regulation shall appoint a full-time CPA Coordinator. Provides that the hearing officer shall report the hearing officer's findings of fact, conclusions of law, and recommendations to the Committee (rather than to the Committee and the Secretary). Removes a provision providing that exhibits shall be certified without cost. Makes corresponding and other changes. Specifies that the changes made to the Regulatory Sunset Act take effect immediately.


LRB103 27672 AMQ 54049 b

 

 

A BILL FOR

 

HB2296LRB103 27672 AMQ 54049 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Regulatory Sunset Act is amended by
5changing Sections 4.34 and 4.39 as follows:
 
6    (5 ILCS 80/4.34)
7    Sec. 4.34. Acts and Section repealed on January 1, 2024.
8The following Acts and Section of an Act are repealed on
9January 1, 2024:
10        The Crematory Regulation Act.
11        The Electrologist Licensing Act.
12        The Illinois Certified Shorthand Reporters Act of
13    1984.
14        The Illinois Occupational Therapy Practice Act.
15        The Illinois Public Accounting Act.
16        The Private Detective, Private Alarm, Private
17    Security, Fingerprint Vendor, and Locksmith Act of 2004.
18        The Registered Surgical Assistant and Registered
19    Surgical Technologist Title Protection Act.
20        Section 2.5 of the Illinois Plumbing License Law.
21        The Veterinary Medicine and Surgery Practice Act of
22    2004.
23(Source: P.A. 102-291, eff. 8-6-21.)
 

 

 

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1    (5 ILCS 80/4.39)
2    Sec. 4.39. Acts repealed on January 1, 2029 and December
331, 2029.
4    (a) The following Act is repealed on January 1, 2029:
5        The Environmental Health Practitioner Licensing Act.
6        The Illinois Public Accounting Act.
7    (b) The following Act is repealed on December 31, 2029:
8        The Structural Pest Control Act.
9(Source: P.A. 100-716, eff. 8-3-18; 100-796, eff. 8-10-18;
10101-81, eff. 7-12-19.)
 
11    Section 10. The Illinois Public Accounting Act is amended
12by changing Sections 0.02, 0.03, 1, 2, 2.05, 2.1, 3, 4, 5.2,
136.1, 8, 9.3, 13, 13.5, 14.2, 14.5, 16, 17, 17.1, 17.2, 20.01,
1420.1, 20.2, 20.6, 20.7, 21, 27, and 30 and by adding Section
150.04 as follows:
 
16    (225 ILCS 450/0.02)  (from Ch. 111, par. 5500.02)
17    (Section scheduled to be repealed on January 1, 2024)
18    Sec. 0.02. Declaration of public policy. It is the policy
19of this State and the purpose of this Act:
20        (a) to promote the dependability of information which
21    is used for guidance in financial transactions or for
22    accounting for or assessing the status or performance of
23    commercial and noncommercial enterprises, whether public,

 

 

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1    private, or governmental; and
2        (b) to protect the public interest by requiring that
3    persons engaged in the practice of public accounting be
4    qualified; that a public authority competent to prescribe
5    and assess the qualifications of public accountants be
6    established; and
7        (c) that preparing, auditing, or examining financial
8    statements and issuing a report expressing or disclaiming
9    an opinion on such statements or expressing assurance on
10    such statements be reserved to persons who demonstrate the
11    their ability and fitness to observe and apply the
12    standards of the accounting profession; and that the use
13    of accounting titles likely to confuse the public be
14    prohibited.
15(Source: P.A. 98-254, eff. 8-9-13; 99-78, eff. 7-20-15.)
 
16    (225 ILCS 450/0.03)  (from Ch. 111, par. 5500.03)
17    (Section scheduled to be repealed on January 1, 2024)
18    Sec. 0.03. Definitions. As used in this Act, unless the
19context otherwise requires:
20    "Accountancy activities" means the services as set forth
21in Section 8.05 of the Act.
22    "Address of record" means the designated address recorded
23by the Department in the applicant's, licensee's, or
24registrant's application file or license file maintained by
25the Department's licensure maintenance unit. It is the duty of

 

 

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1the applicant, licensee, or registrant to inform the
2Department of any change of address, and those changes must be
3made either through the Department's website or by directly
4contacting the Department.
5    "Certification" means certification by the Board or
6University or similar jurisdictions specifying an individual
7has successfully passed all sections and requirements of the
8Uniform Certified Public Accountant Examination and
9verification of completion of 150 credit hours. Certification
10by the Board or University or similar jurisdiction does not
11confer the ability to use the CPA title and is not equivalent
12to a registration or license under this Act.
13    "Compilation" means providing a service to be performed in
14accordance with Statements on Standards for Accounting and
15Review Services that is presented in the form of financial
16statements or information that is the representation of
17management or owners without undertaking to express any
18assurance on the statements.
19    "Coordinator" means the CPA Coordinator.
20    "CPA" or "C.P.A." means a certified public accountant who
21holds a license or registration issued by the Department or an
22individual authorized to use the CPA title under Section 5.2
23of this Act.
24    "CPA firm" means a sole proprietorship, a corporation,
25registered limited liability partnership, limited liability
26company, partnership, professional service corporation, or any

 

 

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1other form of organization issued a license in accordance with
2this Act or a CPA firm authorized to use the CPA firm title
3under Section 5.2 of this Act.
4    "CPA (inactive)" means a licensed certified public
5accountant who elects to have the Department place the
6licensee's his or her license on inactive status pursuant to
7Section 17.2 of this Act.
8    "Email address of record" means the designated email
9address recorded by the Department in the applicant's
10application file or the licensee's license file, as maintained
11by the Department's licensure maintenance unit.
12    "Exam certificate" means an exam certificate issued by the
13Board, the University, or a similar jurisdiction specifying
14that an individual has successfully passed all sections and
15requirements of the Uniform Certified Public Accountant
16Examination. An exam certificate issued by the Board, the
17University, or a similar jurisdiction does not confer the
18ability to use the CPA title and is not equivalent to a
19registration or license under this Act.
20    "Financial statement" means a structured presentation of
21historical financial information, including, but not limited
22to, related notes intended to communicate an entity's economic
23resources and obligations at a point in time or the changes
24therein for a period of time in accordance with generally
25accepted accounting principles (GAAP) or other comprehensive
26basis of accounting (OCBOA).

 

 

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

 

 

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1Certified Public Accountant.
2    "Committee" means the Public Accountant Registration and
3Licensure Committee appointed by the Secretary.
4    "Department" means the Department of Financial and
5Professional Regulation.
6    "License", "licensee", and "licensure" refer to the
7authorization to practice under the provisions of this Act.
8    "Peer review" means a study, appraisal, or review of one
9or more aspects of a CPA firm's or sole practitioner's
10compliance with applicable accounting, auditing, and other
11attestation standards adopted by generally recognized
12standard-setting bodies.
13    "Principal place of business" means the office location
14designated by the licensee from which the person directs,
15controls, and coordinates one's his or her professional
16services.
17    "Review committee" means any person or persons conducting,
18reviewing, administering, or supervising a peer review
19program.
20    "Secretary" means the Secretary of the Department of
21Financial and Professional Regulation.
22    "University" means the University of Illinois.
23    "Board" means the Board of Examiners established under
24Section 2.
25    "Registration", "registrant", and "registered" refer to
26the authorization to hold oneself out as or use the title

 

 

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1"Registered Certified Public Accountant" or "Certified Public
2Accountant", unless the context otherwise requires.
3    "Peer Review Administrator" means an organization
4designated by the Department that meets the requirements of
5subsection (f) of Section 16 of this Act and other rules that
6the Department may adopt.
7(Source: P.A. 102-222, eff. 1-1-22.)
 
8    (225 ILCS 450/0.04 new)
9    Sec. 0.04. Address of record; email address of record.
10    All applicants and registrants shall:
11        (1) provide a valid address and email address to the
12    Department, which shall serve as the address of record and
13    email address of record, respectively, at the time of
14    application for registration or renewal of a registration;
15    and
16        (2) inform the Department of any change of address of
17    record or email address of record within 14 days after
18    such change either through the Department's website or by
19    contacting the Department's licensure maintenance unit.
 
20    (225 ILCS 450/1)  (from Ch. 111, par. 5501)
21    (Section scheduled to be repealed on January 1, 2024)
22    Sec. 1. No person shall hold oneself himself or herself
23out to the public in this State in any manner by using the
24title "Certified Public Accountant", "Licensed Certified

 

 

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1Public Accountant", "Registered Certified Public Accountant",
2"Public Accountant", or use the abbreviation "C.P.A.", "CPA",
3"LCPA", "RCPA", "PA", or any words or letters to indicate that
4the person using the same is a licensed CPA or registered CPA,
5unless the person he or she has been issued a license or
6registration by the Department under this Act or is exercising
7the practice privilege afforded under Section 5.2 of this Act.
8(Source: P.A. 98-254, eff. 8-9-13.)
 
9    (225 ILCS 450/2)  (from Ch. 111, par. 5502)
10    (Section scheduled to be repealed on January 1, 2024)
11    Sec. 2. Board of Examiners. The Governor shall appoint a
12Board of Examiners that shall determine the qualifications of
13persons applying for certification and shall make rules for
14and conduct examinations for determining the qualifications.
15     The Board shall consist of 11 examiners, including 2
16public members. The remainder shall be certified public
17accountants in this State who have been residents of this
18State for at least 5 years immediately preceding their
19appointment to the Board, except that one shall be either a
20certified public accountant of the grade herein described or
21an attorney licensed and residing in this State and one shall
22be a certified public accountant who is an active or retired
23educator residing in this State. The term of office of each
24examiner shall be 3 years. As the term of each examiner
25expires, the appointment shall be filled for a term of 3 years

 

 

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1from the date of expiration. Any Board member who has served as
2a member for 6 consecutive years shall not be eligible for
3reappointment until 2 years after the end of the term in which
4the sixth consecutive year of service occurred, except that
5members of the Board serving on the effective date of this
6Section shall be eligible for appointment to one additional
73-year term. Where the expiration of any member's term shall
8result in less than 11 members then serving on the Board, the
9member shall continue to serve until a his or her successor is
10appointed and has qualified. Except as otherwise provided in
11this Section, no Board member shall serve more than 2 full
12consecutive terms. Anyone appointed to the Board shall be
13ineligible to be appointed to the Illinois Public Accountants
14Registration and Licensure Committee appointed by the
15Secretary. Appointments to fill vacancies shall be made in the
16same manner as original appointments for the unexpired portion
17of the vacated term. The membership of the Board shall
18reasonably reflect representation from the geographic areas in
19this State. The members of the Board appointed by the Governor
20shall receive reasonable compensation for the member's their
21necessary, legitimate, and authorized expenses in accordance
22with the Governor's Travel Control Board rules and the Travel
23Regulation Rules. The Governor may terminate the term of any
24member of the Board at any time for cause.
25    Information regarding educational requirements, the
26application process, the examination, and fees shall be

 

 

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1available on the Board's Internet web site as well as in
2printed documents available from the Board's office.
3    The Board shall adopt all necessary and reasonable rules
4and regulations for the effective administration of this Act.
5Without limiting the foregoing, the Board shall adopt and
6prescribe rules and regulations for a fair and impartial
7method of determining the qualifications of applicants for
8examination and for a fair and impartial method of examination
9of persons under Section 2 and may establish rules for
10subjects conditioned and for the transfer of credits from
11other jurisdictions with respect to subjects passed. The Board
12shall verify completion of educational requirements for
13certification as required under this Act.
14     The Board shall make an annual report of its activities to
15the Governor and the Secretary. This report shall include a
16complete operating and financial statement covering its
17operations during the year, the number of examinations given,
18the pass/fail ratio for examinations, and any other
19information deemed appropriate. The Board shall have an audit
20of its books and accounts every 2 years by the Auditor General.
21(Source: P.A. 102-222, eff. 1-1-22.)
 
22    (225 ILCS 450/2.05)
23    (Section scheduled to be repealed on January 1, 2024)
24    Sec. 2.05. Public Accountant Registration and Licensure
25Committee. The Secretary shall appoint a Public Accountant

 

 

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1Registration and Licensure Committee consisting of 7 persons,
2who shall be appointed by and shall serve in an advisory
3capacity to the Secretary. A majority of the members must be
4licensed CPAs in good standing and must be actively engaged in
5the practice of public accounting in this State. The remaining
6members must include registered CPAs in good standing in this
7State and one member of the public who is not licensed or
8registered under this Act or a similar Act of another
9jurisdiction and who has no connection with the accounting or
10public accounting profession. Four members of the Committee
11shall constitute a quorum. A quorum is required for all
12Committee decisions. Members shall serve 4-year terms and
13until the member's their successors are appointed and
14qualified. No member shall be reappointed to the Committee for
15more than 2 full consecutive terms. Appointments to fill
16vacancies shall be made in the same manner as original
17appointments for the unexpired portion of the vacated term.
18The members of the Committee appointed by the Secretary shall
19receive reasonable compensation, as determined by the
20Department, for the necessary, legitimate, and authorized
21expenses approved by the Department. All expenses shall be
22paid from the Registered Certified Public Accountants'
23Administration and Disciplinary Fund. The Secretary may
24terminate the appointment of any member for cause. The
25Secretary shall consider the advice and recommendations of the
26Committee on questions involving standards of professional

 

 

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1conduct, discipline, and qualifications of applicants and
2licensees under this Act.
3(Source: P.A. 98-254, eff. 8-9-13.)
 
4    (225 ILCS 450/2.1)  (from Ch. 111, par. 5503)
5    (Section scheduled to be repealed on January 1, 2024)
6    Sec. 2.1. Illinois Administrative Procedure Act. The
7Illinois Administrative Procedure Act is hereby expressly
8adopted and incorporated herein as if all of the provisions of
9that Act were included in this Act, except that the provision
10of subsection (d) of Section 10-65 of the Illinois
11Administrative Procedure Act that provides that at hearings
12the licensee has the right to show compliance with all lawful
13requirements for retention, continuation or renewal of the
14license is specifically excluded. For the purposes of this Act
15the notice required under Section 10-25 of the Illinois
16Administrative Procedure Act is deemed sufficient when mailed
17to the licensee's address of record or email address of
18record.
19(Source: P.A. 98-254, eff. 8-9-13; 98-756, eff. 7-16-14.)
 
20    (225 ILCS 450/3)  (from Ch. 111, par. 5504)
21    (Section scheduled to be repealed on January 1, 2024)
22    Sec. 3. Qualifications of applicants. The Board shall
23certify applicants who successfully complete all portions of
24the examination and verify completion of 150 semester credit

 

 

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1hours.
2    (a) To be admitted to take the examination after the year
32000 and before January 1, 2023, for the purpose of
4determining the qualifications of applicants for certificates
5as certified public accountants under this Act, the applicants
6shall be required to present proof of the successful
7completion of 150 college or university semester hours of
8study or the applicant's their quarter-hour or other academic
9credit unit equivalent, to include a baccalaureate or higher
10degree conferred by a college or university acceptable to the
11Board, the total educational program to include an accounting
12concentration or equivalent as determined by Board rule. In
13adopting those rules, the Board shall consider, among other
14things, any impediments to the interstate practice of public
15accounting that may result from differences in the
16requirements in other states.
17    (b) Beginning January 1, 2023, an applicant for the
18examination shall be required to present proof of 120 college
19or university semester hours of study or the applicant's their
20quarter-hour or other academic credit unit equivalent, to
21include a baccalaureate or higher degree conferred by a
22college or university acceptable to the Board, the total
23education program to include an accounting concentration or
24equivalent as determined by Board rule. Applicants shall
25receive certification by the Board upon successful passage of
26all sections and requirements of the Uniform Certified Public

 

 

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1Accountant Examination and verification of completion of
2educational requirements as determined by rule.
3    (c) In adopting rules, the Board shall consider, among
4other things, any impediments to the interstate practice of
5public accounting that may result from differences in the
6requirements in other states.
7(Source: P.A. 102-222, eff. 1-1-22.)
 
8    (225 ILCS 450/4)  (from Ch. 111, par. 5505)
9    (Section scheduled to be repealed on January 1, 2024)
10    Sec. 4. Transitional language.
11    (a) The provisions of this Act shall not be construed to
12invalidate any certificates as certified public accountants
13issued by the University under "An Act to regulate the
14profession of public accountants", approved May 15, 1903, as
15amended, or any certificates as Certified Public Accountants
16issued by the University or the Board under Section 4 of "An
17Act to regulate the practice of public accounting and to
18repeal certain acts therein named", approved July 22, 1943, as
19amended, which certificates shall be valid and in force as
20though issued under the provisions of this Act.
21    (b) Before July 1, 2012, persons who have received a
22Certified Public Accountant (CPA) Certificate issued by the
23Board or University or holding similar certifications from
24other jurisdictions with equivalent educational requirements
25and examination standards may apply to the Department on forms

 

 

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1supplied by the Department for and may be granted a
2registration as a registered CPA from the Department upon
3payment of the required fee.
4    (c) Beginning with the 2006 renewal, the Department shall
5cease to issue a license as a Public Accountant. Any person
6holding a valid license as a Public Accountant prior to
7September 30, 2006 who meets the conditions for renewal of a
8license under this Act, shall be issued a license as a licensed
9CPA under this Act and shall be subject to continued
10regulation by the Department under this Act. The Department
11may adopt rules to implement this Section.
12    (d) The Department shall not issue any new registrations
13as a registered CPA on or after July 1, 2012. After that date,
14any applicant for licensure under this Act shall apply for a
15license as a licensed CPA and shall meet the requirements set
16forth in this Act. Any person who has been issued a
17registration as a registered CPA may renew the registration
18under the provisions of this Act and that person may continue
19to renew or restore the registration during the registrant's
20his or her lifetime, subject only to the renewal or
21restoration requirements for the registration under this Act.
22Such registration shall be subject to the disciplinary
23provisions of this Act.
24    (e) (Blank).
25    (f) The changes made by this amendatory Act of the 102nd
26General Assembly do not invalidate any certificate issued

 

 

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1before the effective date of this amendatory Act of the 102nd
2General Assembly.
3(Source: P.A. 102-222, eff. 1-1-22.)
 
4    (225 ILCS 450/5.2)
5    (Section scheduled to be repealed on January 1, 2024)
6    Sec. 5.2. Substantial equivalency.
7    (a) An individual whose principal place of business is not
8in this State shall have all the privileges of a person
9licensed under this Act as a licensed CPA without the need to
10obtain a license from the Department or to file notice with the
11Department, if the individual:
12        (1) holds a valid license as a certified public
13    accountant issued by another state that the National
14    Qualification Appraisal Service of the National
15    Association of State Boards of Accountancy has verified to
16    be in substantial equivalence with the CPA licensure
17    requirements of the Uniform Accountancy Act of the
18    American Institute of Certified Public Accountants and the
19    National Association of State Boards of Accountancy; or
20        (2) holds a valid license as a certified public
21    accountant issued by another state and obtains from the
22    National Qualification Appraisal Service of the National
23    Association of State Boards of Accountancy verification
24    that the individual's CPA qualifications are substantially
25    equivalent to the CPA licensure requirements of the

 

 

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1    Uniform Accountancy Act of the American Institute of
2    Certified Public Accountants and the National Association
3    of State Boards of Accountancy; however, any individual
4    who has passed the Uniform CPA Examination and holds a
5    valid license issued by any other state prior to January
6    1, 2012 shall be exempt from the education requirements of
7    Section 3 of this Act for the purposes of this item (2).
8    (a-5) A CPA firm whose principal place of business is not
9in this State shall have all the privileges of a CPA firm
10licensed under this Act without the need to obtain a license
11from the Department or to file notice with the Department if
12the CPA firm complies with the requirements outlined in
13Sections 14.4 and 16 through substantial equivalency of the
14firm's their licensed state.
15    (b) Notwithstanding any other provision of law, an
16individual or CPA firm who offers or renders professional
17services under this Section, whether in person or by mail,
18telephone, or electronic means, shall be granted practice
19privileges in this State and no notice or other submission
20must be provided by any such individual or CPA firm.
21    (c) An individual licensee or CPA firm of another state
22exercising the privilege afforded under this Section and the
23CPA firm that employs such individual licensee, if any, as a
24condition of the grant of this privilege, hereby
25simultaneously consents:
26        (1) to the personal and subject matter jurisdiction

 

 

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1    and disciplinary authority of the Department;
2        (2) to comply with this Act and the Department's rules
3    adopted under this Act;
4        (3) that in the event that the license from the state
5    of the individual's or CPA firm's principal place of
6    business is no longer valid, the individual or CPA firm
7    shall cease offering or rendering accountancy activities
8    as outlined in paragraphs (1) and (2) of Section 8.05 in
9    this State individually or on behalf of a CPA firm; and
10        (4) to the appointment of the state board that issued
11    the individual's or the CPA firm's license as the agent
12    upon which process may be served in any action or
13    proceeding by the Department against the individual or CPA
14    firm.
15    (d) An individual licensee who qualifies for practice
16privileges under this Section who, for any entity
17headquartered in this State, performs (i) a financial
18statement audit or other engagement in accordance with
19Statements on Auditing Standards; (ii) an examination of
20prospective financial information in accordance with
21Statements on Standards for Attestation Engagements; or (iii)
22an engagement in accordance with Public Company Accounting
23Oversight Board Auditing Standards may only do so through a
24CPA firm licensed under this Act or a CPA firm with practice
25privileges under this Section.
26    (e) A CPA firm that qualifies for practice privileges

 

 

HB2296- 20 -LRB103 27672 AMQ 54049 b

1under this Section and, for any entity headquartered in this
2State, performs the following may only do so through an
3individual or individuals licensed under this Act or an
4individual or individuals with practice privileges under this
5Section:
6        (1) a financial statement audit or other engagement in
7    accordance with Statements on Auditing Standards;
8        (2) an examination of prospective financial
9    information in accordance with Statements on Standards for
10    Attestation Engagements; or
11        (3) an engagement in accordance with Public Company
12    Accounting Oversight Board auditing standards.
13(Source: P.A. 100-419, eff. 8-25-17.)
 
14    (225 ILCS 450/6.1)
15    (Section scheduled to be repealed on January 1, 2024)
16    Sec. 6.1. Examinations.
17    (a) The examination shall test the applicant's knowledge
18of accounting, auditing, and other related subjects, if any,
19as the Board may deem advisable. A candidate shall be required
20to pass all sections of the examination in order to qualify for
21certification. A candidate may take the required test sections
22individually and in any order, as long as the examination is
23taken within a timeframe established by Board rule.
24    (b) On and after January 1, 2005, applicants shall also be
25required to pass an examination on the rules of professional

 

 

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1conduct for certification by the Board.
2    (c) Pursuant to compliance with the Americans with
3Disabilities Act, the Board may provide alternative test
4administration arrangements that are reasonable in the context
5of the Certified Public Accountant examination for applicants
6who are unable to take the examination under standard
7conditions upon an applicant's submission of evidence as the
8Board may require, which may include a signed statement from a
9medical or other licensed medical professional, identifying
10the applicant's disabilities and the specific alternative
11accommodations the applicant may need. Any alteration in test
12administration arrangements does not waive the requirement of
13sitting for and passing the examination.
14    (d) Any application, document, or other information filed
15by or concerning an applicant and any examination grades of an
16applicant shall be deemed confidential and shall not be
17disclosed to anyone without the prior written permission of
18the applicant, except that the names and addresses only of all
19applicants shall be a public record and be released as public
20information. Nothing in this subsection shall prevent the
21Board from making public announcement of the names of persons
22receiving certificates under this Act.
23(Source: P.A. 102-222, eff. 1-1-22.)
 
24    (225 ILCS 450/8)  (from Ch. 111, par. 5509)
25    (Section scheduled to be repealed on January 1, 2024)

 

 

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1    Sec. 8. Practicing as a licensed CPA. Persons, either
2individually, as members of a partnership or limited liability
3company, or as officers of a corporation, who sign, affix, or
4associate their names or any trade or assumed names used by the
5persons them in a profession or business to any report
6expressing or disclaiming an opinion on a financial statement
7based on an audit or examination of that statement, or
8expressing assurance on a financial statement, shall be deemed
9to be in practice as licensed CPAs and are performing
10accountancy activities as outlined in paragraph (1) of
11subsection (a) of Section 8.05.
12(Source: P.A. 98-254, eff. 8-9-13.)
 
13    (225 ILCS 450/9.3)
14    (Section scheduled to be repealed on January 1, 2024)
15    Sec. 9.3. Sharing of information. Notwithstanding any
16other provision of this Act, for the purpose of carrying out
17the their respective duties and responsibilities of the Board
18and the Department under this Act and to effectuate the
19purpose of this Act, both the Board and the Department are
20authorized and directed to share information with each other
21regarding those individuals and entities licensed or certified
22or applying for licensure or certification under this Act.
23(Source: P.A. 98-254, eff. 8-9-13.)
 
24    (225 ILCS 450/13)  (from Ch. 111, par. 5514)

 

 

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1    (Section scheduled to be repealed on January 1, 2024)
2    Sec. 13. Application for licensure.
3    (a) A person or CPA firm that wishes to perform
4accountancy activities in this State, as defined in paragraph
5(1) of subsection (a) of Section 8.05 of this Act, or use the
6CPA title shall make application to the Department and shall
7pay the fee required by rule.
8    Applicants have 3 years from the date of application to
9complete the application process. If the process has not been
10completed in 3 years, the application shall be denied, the fee
11forfeited and the applicant must reapply and meet the
12requirements in effect at the time of reapplication.
13    (b) Any CPA firm that (i) has an office in this State that
14uses the title "CPA" or "CPA firm"; (ii) has an office in this
15State that performs accountancy activities, as defined in
16paragraph (1) of subsection (a) of Section 8.05 of this Act; or
17(iii) does not have an office in this State and does not meet
18the practice privilege requirements as defined in Section 5.2
19of this Act, but offers or renders services, as set forth in
20subsection (e) of Section 5.2 of this Act, for a client that is
21headquartered in this State must hold a license as a CPA firm
22issued under this Act.
23    (c) (Blank).
24    (d) A CPA firm that is not subject to the requirements of
25subsection (b) of this Section may perform professional
26services that are not regulated under subsection (b) of this

 

 

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1Section while using the title "CPA" or "CPA firm" in this State
2without obtaining a license as a CPA firm under this Act if the
3firm (i) performs such services through individuals with
4practice privileges under Section 5.2 of this Act and (ii) may
5lawfully perform such services in the state where those
6individuals with practice privileges under Section 5.2 of this
7Act have a their principal place of business.
8(Source: P.A. 100-419, eff. 8-25-17.)
 
9    (225 ILCS 450/13.5)
10    (Section scheduled to be repealed on January 1, 2024)
11    Sec. 13.5. Social Security Number or federal individual
12taxpayer identification number on license application. In
13addition to any other information required to be contained in
14the application, every application for an original license
15under this Act shall include the applicant's Social Security
16Number or federal individual taxpayer identification number,
17which shall be retained in the agency's records pertaining to
18the license. As soon as practical, the Department shall assign
19a customer's identification number to each applicant for a
20license.
21    Every application for a renewal or restored license shall
22require the applicant's customer identification number.
23(Source: P.A. 97-400, eff. 1-1-12.)
 
24    (225 ILCS 450/14.2)

 

 

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1    (Section scheduled to be repealed on January 1, 2024)
2    Sec. 14.2. Licensure by endorsement.
3    (a) The Department shall issue a license as a licensed CPA
4to any applicant who holds a current, valid, and unrevoked
5license as a certified public accountant issued from another
6state with equivalent educational requirements and examination
7standards, applies to the Department on forms supplied by the
8Department, and pays the required fee, provided:
9        (1) the individual applicant is determined by the
10    Department to possess qualifications substantially
11    equivalent to this State's current licensing requirements;
12        (2) at the time the applicant became licensed received
13    his or her license, the applicant possessed qualifications
14    substantially equivalent to the qualifications for
15    licensure then in effect in this State; or
16        (3) the applicant has, after passing the examination
17    upon which licensure his or her license to practice was
18    based, not less than 4 years of experience as outlined in
19    Section 14 of this Act within the 10 years immediately
20    before the application.
21    (b) In determining the substantial equivalency of any
22state's requirements to Illinois' requirements, the Department
23may rely on the determinations of the National Qualification
24Appraisal Service of the National Association of State Boards
25of Accountancy or such other qualification appraisal service
26as it deems appropriate.

 

 

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1    (c) Applicants have 3 years from the date of application
2to complete the application process. If the process has not
3been completed in 3 years, the application shall be denied,
4the fee shall be forfeited, and the applicant must reapply and
5meet the requirements in effect at the time of reapplication.
6    (d) Any individual who is the holder of a current, valid,
7and not previously disciplined license as a certified public
8accountant of any state and has applied in writing to the
9Department in form and substance satisfactory to the
10Department for a license as a licensed CPA may perform
11accountancy activities as set forth in Section 8.05 until the
12earlier of the following dates:
13        (1) the expiration of 6 months after filing the
14    written application; or
15        (2) the denial of the application by the Department.
16    Any individual performing accountancy activities under
17this subsection (d) shall be subject to discipline in the same
18manner as an individual licensed under this Act.
19(Source: P.A. 98-254, eff. 8-9-13; 98-730, eff. 1-1-15.)
 
20    (225 ILCS 450/14.5)
21    (Section scheduled to be repealed on January 1, 2024)
22    Sec. 14.5. CPA Coordinator; duties. The Secretary shall
23appoint a full-time CPA Coordinator, who shall hold a
24currently valid CPA license or registration. The Coordinator
25shall not practice during the term of the Coordinator's his or

 

 

HB2296- 27 -LRB103 27672 AMQ 54049 b

1her appointment. The Coordinator shall be exempt from all fees
2related to the his or her CPA license or registration that come
3due during the Coordinator's his or her employment. In
4appointing the Coordinator, the Secretary shall give due
5consideration to recommendations made by members,
6organizations, and associations of the CPA and accounting
7profession, if possible. The Coordinator shall:
8        (1) act as Chairperson of the Committee, ex officio,
9    without a vote;
10        (2) be the direct liaison between the Department, the
11    profession, and CPA and accounting organizations and
12    associations;
13        (3) prepare and circulate to licensees any educational
14    and informational material that the Department deems
15    necessary for providing guidance or assistance to
16    licensees;
17        (4) appoint any necessary committees to assist in the
18    performance of the functions and duties of the Department
19    under this Act; and
20        (5) subject to the administrative approval of the
21    Secretary, supervise all activities relating to the
22    regulation of the CPA profession.
23(Source: P.A. 100-419, eff. 8-25-17.)
 
24    (225 ILCS 450/16)  (from Ch. 111, par. 5517)
25    (Section scheduled to be repealed on January 1, 2024)

 

 

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1    Sec. 16. Expiration and renewal of licenses; renewal of
2registration; continuing education; peer review.
3    (a) The expiration date and renewal period for each
4license or registration issued under this Act shall be set by
5rule.
6    (b) Every holder of a license or registration under this
7Act may renew such license or registration before the
8expiration date upon payment of the required renewal fee as
9set by rule.
10    (c) Every application for renewal of a license by a
11licensed CPA who has been licensed under this Act for 3 years
12or more shall be accompanied or supported by any evidence the
13Department shall prescribe, in satisfaction of completing
14continuing professional education as prescribed by Department
15rules. All continuing education sponsors applying to the
16Department for registration shall be required to submit an
17initial nonrefundable application fee set by Department rule.
18Each registered continuing education sponsor shall be required
19to pay an annual renewal fee set by Department rule. Publicly
20supported colleges, universities, and governmental agencies
21located in Illinois are exempt from payment of any fees
22required for continuing education sponsor registration.
23Failure by a continuing education sponsor to be licensed or
24pay the fees prescribed in this Act, or to comply with the
25rules and regulations established by the Department under this
26Section regarding requirements for continuing education

 

 

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1courses or sponsors, shall constitute grounds for revocation
2or denial of renewal of the sponsor's registration.
3    (d) Licensed CPAs are exempt from the continuing
4professional education requirement for the first renewal
5period following the original issuance of the license.
6    Failure by an applicant for renewal of a license as a
7licensed CPA to furnish the evidence shall constitute grounds
8for disciplinary action, unless the Department in its
9discretion shall determine the failure to have been due to
10reasonable cause. The Department, in its discretion, may renew
11a license despite failure to furnish evidence of satisfaction
12of requirements of continuing education upon condition that
13the applicant follow a particular program or schedule of
14continuing education. In issuing rules and individual orders
15in respect of requirements of continuing education, the
16Department in its discretion may, among other things, use and
17rely upon guidelines and pronouncements of recognized
18educational and professional associations; may prescribe rules
19for the content, duration, and organization of courses; shall
20take into account the accessibility to applicants of such
21continuing education as it may require, and any impediments to
22interstate practice of public accounting that may result from
23differences in requirements in other states; and may provide
24for relaxation or suspension of requirements in regard to
25applicants who certify that they do not intend to engage in the
26performance of accountancy activities, and for instances of

 

 

HB2296- 30 -LRB103 27672 AMQ 54049 b

1individual hardship.
2    The Department shall establish by rule a means for the
3verification of completion of the continuing education
4required by this Section. This verification may be
5accomplished through audits of records maintained by
6licensees; by requiring the filing of continuing education
7certificates with the Department; or by other means
8established by the Department.
9    The Department may establish, by rule, guidelines for
10acceptance of continuing education on behalf of licensed CPAs
11taking continuing education courses in other jurisdictions.
12    (e) For renewals on and after July 1, 2012, as a condition
13for granting a renewal license to CPA firms and sole
14practitioners who perform accountancy activities outlined in
15paragraph (1) of subsection (a) of Section 8.05 under this
16Act, the Department shall require that the CPA firm or sole
17practitioner satisfactorily complete a peer review during the
18immediately preceding 3-year period, accepted by a Peer Review
19Administrator in accordance with established standards for
20performing and reporting on peer reviews, unless the CPA firm
21or sole practitioner is exempted under the provisions of
22subsection (i) of this Section. All CPA firms or sole
23practitioners required to undergo a peer review under this
24Section shall submit to the Department peer review reports;
25letters of response, if applicable; acceptance letters;
26letters signed by the reviewed CPA firm accepting the peer

 

 

HB2296- 31 -LRB103 27672 AMQ 54049 b

1review documents with the understanding that the CPA firm
2agrees to take certain actions, if applicable; and letters
3notifying the reviewed CPA firm that certain required actions
4have been completed, if applicable. CPA firms and sole
5practitioners shall satisfy this document submission
6requirement by allowing the Peer Review Administrator to
7provide the Department access to the documents through the
8Association of International Certified Public Accountants'
9Facilitated State Board Access within 45 days after the peer
10review has been conducted. Nothing in this subsection shall
11prevent the Department from requesting this documentation or
12any other documentation from the licensee. A CPA firm or sole
13practitioner shall, at the request of the Department, submit
14to the Department a letter from the Peer Review Administrator
15stating the date on which the peer review was satisfactorily
16completed.
17    A new CPA firm or sole practitioner shall not be required
18to comply with the peer review requirements for the first
19license renewal. A CPA firm or sole practitioner shall comply
20with the Department's rules adopted under this Act and agree
21to notify the Peer Review Administrator by the report date of
22the initial within 30 days after accepting an engagement for
23services requiring a license under this Act and to undergo a
24peer review within 18 months of the report date for the initial
25after the end of the period covered by the engagement.
26    The requirements of this subsection (e) shall not apply to

 

 

HB2296- 32 -LRB103 27672 AMQ 54049 b

1any person providing services requiring a license under this
2Act to the extent that such services are provided in the
3capacity of an employee of the Office of the Auditor General or
4to a nonprofit cooperative association engaged in the
5rendering of licensed service to its members only under
6paragraph (3) of Section 14.4 of this Act or any of its
7employees to the extent that such services are provided in the
8capacity of an employee of the association.
9    (f) The Department shall approve only Peer Review
10Administrators that the Department finds comply with
11established standards for performing and reporting on peer
12reviews. The Department may adopt rules establishing
13guidelines for peer reviews, which shall do all of the
14following:
15        (1) Require that a peer review be conducted by a
16    reviewer that is independent of the CPA firm or sole
17    practitioner reviewed and approved by the Peer Review
18    Administrator under established standards.
19        (2) Other than in the peer review process, prohibit
20    the use or public disclosure of information obtained by
21    the reviewer, the Peer Review Administrator, or the
22    Department during or in connection with the peer review
23    process. The requirement that information not be publicly
24    disclosed shall not apply to a hearing before the
25    Department that the CPA firm or sole practitioner requests
26    be public or to the information described in paragraph (3)

 

 

HB2296- 33 -LRB103 27672 AMQ 54049 b

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

 

 

HB2296- 34 -LRB103 27672 AMQ 54049 b

1of the following conditions are met:
2        (1) Within 3 years before the date of application for
3    renewal licensure, the sole practitioner or CPA firm has
4    undergone a peer review conducted in another state or
5    foreign jurisdiction that meets the requirements of
6    paragraphs (1) and (2) of subsection (f) of this Section.
7    The sole practitioner or CPA firm shall submit to the
8    Department peer review reports; letters of response, if
9    applicable; acceptance letters; letters signed by the
10    reviewed CPA firm accepting the peer review documents with
11    the understanding that the CPA firm agrees to take certain
12    actions, if applicable; and letters notifying the reviewed
13    CPA firm that certain required actions have been
14    completed, if applicable. CPA firms and sole practitioners
15    shall satisfy this document submission requirement by
16    allowing the Peer Review Administrator to provide the
17    Department access to the documents through the Association
18    of International Certified Public Accountants' Facilitated
19    State Board Access within 45 days after the peer review
20    has been conducted. Nothing in this subsection shall
21    prevent the Department from requesting this documentation
22    or any other documentation from the licensee. , at the
23    request of the Department, submit to the Department a
24    letter from the organization administering the most recent
25    peer review stating the date on which the peer review was
26    completed; or

 

 

HB2296- 35 -LRB103 27672 AMQ 54049 b

1        (2) Within 2 years before the date of application for
2    renewal licensure, the sole practitioner or CPA firm
3    satisfies all of the following conditions:
4            (A) has not accepted or performed any accountancy
5        activities outlined in paragraph (1) of subsection (a)
6        of Section 8.05 of this Act; and
7            (B) the firm or sole practitioner agrees to notify
8        the Peer Review Administrator by the date of the
9        initial within 30 days of accepting an engagement for
10        services requiring a license under this Act and to
11        undergo a peer review within 18 months of the report
12        date for the initial after the end of the period
13        covered by the engagement. ; or
14        (3) For reasons of personal health, military service,
15    or other good cause, the Department determines that the
16    sole practitioner or firm is entitled to an exemption,
17    which may be granted for a period of time not to exceed 12
18    months.
19    (j) If a peer review report indicates that a CPA firm or
20sole practitioner complies with the appropriate professional
21standards and practices set forth in the rules of the
22Department and no further remedial action is required, the
23Peer Review Administrator shall, after issuance of the final
24letter of acceptance, destroy all working papers and documents
25related to the peer review, other than report-related
26documents and documents evidencing completion of remedial

 

 

HB2296- 36 -LRB103 27672 AMQ 54049 b

1actions, if any, in accordance with rules established by the
2Department.
3    (k) (Blank).
4(Source: P.A. 100-419, eff. 8-25-17.)
 
5    (225 ILCS 450/17)  (from Ch. 111, par. 5518)
6    (Section scheduled to be repealed on January 1, 2024)
7    Sec. 17. Fees; returned checks; fines. The fees for the
8administration and enforcement of this Act, including, but not
9limited to, original licensure, registration, renewal, and
10restoration fees, shall be set by the Department by rule. The
11fees shall be nonrefundable.
12    Any person who delivers a check or other payment to the
13Department that is returned to the Department unpaid by the
14financial institution upon which it is drawn shall pay to the
15Department, in addition to the amount already owed to the
16Department, a fine of $50. The fines imposed by this Section
17are in addition to any other discipline provided under this
18Act for unlicensed practice or practice on a nonrenewed
19license or registration. The Department shall notify the
20person that payment of fees and fines shall be paid to the
21Department by certified check or money order within 30
22calendar days of the notification. If, after the expiration of
2330 days from the date of the notification, the person has
24failed to submit the necessary remittance, the Department
25shall automatically terminate the license or registration or

 

 

HB2296- 37 -LRB103 27672 AMQ 54049 b

1deny the application, without a hearing. If, after termination
2or denial, the person seeks a license or registration, the
3person he or she shall apply to the Department for restoration
4or issuance of the license or registration and pay all fees and
5fines due to the Department. The Department may establish a
6fee for the processing of an application for restoration of a
7license or registration to pay all expenses of processing this
8application. The Department may waive the fines due under this
9Section in individual cases where the Department finds that
10the fines would be unreasonable or unnecessarily burdensome.
11(Source: P.A. 98-254, eff. 8-9-13.)
 
12    (225 ILCS 450/17.1)  (from Ch. 111, par. 5518.1)
13    (Section scheduled to be repealed on January 1, 2024)
14    Sec. 17.1. Restoration.
15    (a) Any registered CPA who has permitted the registrant's
16his or her registration to expire or who has had the
17registrant's his or her registration on inactive status may
18have the his or her registration restored by making
19application to the Department and filing proof acceptable to
20the Department as defined by rule of the registrant's his or
21her fitness to have the his or her registration restored,
22which may include sworn evidence certifying to active practice
23in another jurisdiction satisfactory to the Department and by
24paying the required restoration fee.
25    (b) Any licensed CPA who has permitted the licensee's his

 

 

HB2296- 38 -LRB103 27672 AMQ 54049 b

1or her license to expire or who has had the licensee's his or
2her license on inactive status may have the his or her license
3restored by (1) making application to the Department and
4filing proof acceptable to the Department as defined by rule
5of the licensee's his or her fitness to have the his or her
6license restored, including sworn evidence certifying to
7active practice in another jurisdiction satisfactory to the
8Department, (2) paying the required restoration fee, (3)
9submitting proof of the required continuing education and (4)
10in the case of a sole practitioner, satisfactory completion of
11peer review outlined in subsection (e) of Section 16, unless
12exempt from peer review under subsection (i) of Section 16.
13    (c) Any firm that has permitted its license to expire may
14have its license restored by (1) making application to the
15Department and filing proof acceptable to the Department as
16defined by rule of its fitness to have its license restored,
17including sworn evidence certifying to active practice in
18another jurisdiction satisfactory to the Department, (2)
19paying the required restoration fee, and (3) satisfactory
20completion of peer review outlined in subsection (e) of
21Section 16, unless exempt from peer review under subsection
22(i) of Section 16.
23    (d) If the licensed CPA or registered CPA has not
24maintained an active practice in another jurisdiction
25satisfactory to the Department, the Department shall
26determine, by an evaluation program established by rule, the

 

 

HB2296- 39 -LRB103 27672 AMQ 54049 b

1licensee or registrant's fitness to resume active status and
2may require the applicant to complete a period of supervised
3experience.
4    Any licensed CPA or registered CPA whose license or
5registration expired while he or she was (1) in Federal
6Service on active duty with the Armed Forces of the United
7States, or the State Militia called into service or training,
8or (2) in training or education under the supervision of the
9United States preliminary to induction into the military
10service, may have the his or her license or registration
11renewed reinstated or restored without paying any lapsed
12renewal and restoration fees if within 2 years after honorable
13termination of such service, training or education except
14under conditions other than honorable, the Department is
15furnished with satisfactory evidence to the effect that the
16licensee or registrant has been so engaged and that the
17service, training, or education has been terminated he or she
18furnished the Department with satisfactory evidence to the
19effect that he or she has been so engaged and that his or her
20service, training, or education has been so terminated.
21(Source: P.A. 98-254, eff. 8-9-13; 98-730, eff. 1-1-15.)
 
22    (225 ILCS 450/17.2)  (from Ch. 111, par. 5518.2)
23    (Section scheduled to be repealed on January 1, 2024)
24    Sec. 17.2. Inactive status.
25    (a) Any licensed or registered CPA with an active,

 

 

HB2296- 40 -LRB103 27672 AMQ 54049 b

1unencumbered license or registration who notifies the
2Department in writing on forms prescribed by the Department,
3may elect to place the his or her license or registration on an
4inactive status and shall, subject to rules of the Department,
5be excused from payment of renewal fees and completion of
6continuing education hours until he or she notifies the
7Department is notified in writing of the licensee or
8registrant's his or her desire to resume active status.
9    (b) Any licensed CPA requesting restoration from inactive
10status shall be required to pay the current renewal fee, shall
11be required to submit proof of the required continuing
12education, and shall be required to comply with any
13requirements established by rule.
14    (c) Any registered CPA requesting restoration from
15inactive status shall be required to pay the current renewal
16fee and shall be required to comply with any requirements
17established by rule.
18    (d) Any licensed CPA or registered CPA whose license is in
19an inactive status shall not perform accountancy activities
20outlined in Section 8.05 of this Act.
21    (e) Any licensed CPA or registered CPA whose license or
22registration is in an inactive status shall not in any manner
23hold oneself himself or herself out to the public as a CPA,
24except in accordance with subsection (f) of this Section.
25    (f) Any licensed CPA whose license is in inactive status
26may use the title "CPA (inactive)" if:

 

 

HB2296- 41 -LRB103 27672 AMQ 54049 b

1        (1) the licensee he or she is not performing
2    accountancy activities outlined in Section 8.05; or
3        (2) the licensee he or she is performing governance
4    functions on a non-profit volunteer board using the
5    licensee's his or her accountancy skills and competencies
6    and complies with the following requirements:
7            (A) the licensee he or she discloses to the
8        non-profit volunteer board and respective committees
9        that the his or her license is on inactive status; and
10            (B) the licensee he or she is not serving as an
11        audit committee financial expert as defined in Section
12        407 of the federal Sarbanes-Oxley Act of 2002.
13(Source: P.A. 98-254, eff. 8-9-13.)
 
14    (225 ILCS 450/20.01)  (from Ch. 111, par. 5521.01)
15    (Section scheduled to be repealed on January 1, 2024)
16    Sec. 20.01. Grounds for discipline; license or
17registration.
18    (a) The Department may refuse to issue or renew, or may
19revoke, suspend, or reprimand any registration or registrant,
20any license or licensee, place a licensee or registrant on
21probation for a period of time subject to any conditions the
22Department may specify including requiring the licensee or
23registrant to attend continuing education courses or to work
24under the supervision of another licensee or registrant,
25impose a fine not to exceed $10,000 for each violation,

 

 

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1restrict the authorized scope of practice, require a licensee
2or registrant to undergo a peer review program, assess costs
3as provided for under Section 20.4, or take other disciplinary
4or non-disciplinary action for any one or more of the
5following:
6        (1) Violation of any provision of this Act or rule
7    adopted by the Department under this Act or violation of
8    professional standards.
9        (2) Dishonesty, fraud, or deceit in obtaining,
10    reinstating, or restoring a license or registration.
11        (3) Cancellation, revocation, suspension, denial of
12    licensure or registration, or refusal to renew a license
13    or privileges under Section 5.2 for disciplinary reasons
14    in any other U.S. jurisdiction, unit of government, or
15    government agency for any cause.
16        (4) Failure, on the part of a licensee under Section
17    13 or registrant under Section 16, to maintain compliance
18    with the requirements for issuance or renewal of a license
19    or registration or to report changes to the Department.
20        (5) Revocation or suspension of the right to practice
21    by or before any state or federal regulatory authority or
22    by the Public Company Accounting Oversight Board.
23        (6) Dishonesty, fraud, deceit, or gross negligence in
24    the performance of services as a licensee or registrant or
25    individual granted privileges under Section 5.2.
26        (7) Conviction by plea of guilty or nolo contendere,

 

 

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1    finding of guilt, jury verdict, or entry of judgment or
2    sentencing, including, but not limited to, convictions,
3    preceding sentences of supervision, conditional discharge,
4    or first offender probation, under the laws of any
5    jurisdiction of the United States that is (i) a felony or
6    (ii) a misdemeanor, an essential element of which is
7    dishonesty, or that is directly related to the practice of
8    public accounting.
9        (8) Performance of any fraudulent act while holding a
10    license or privilege issued under this Act or prior law.
11        (9) Practicing on a revoked, suspended, or inactive
12    license or registration.
13        (10) Making or filing a report or record that the
14    registrant or licensee knows to be false, willfully
15    failing to file a report or record required by State or
16    federal law, willfully impeding or obstructing the filing
17    or inducing another person to impede or obstruct only
18    those that are signed in the capacity of a licensed CPA or
19    a registered CPA.
20        (11) Aiding or assisting another person in violating
21    any provision of this Act or rules promulgated hereunder.
22        (12) Engaging in dishonorable, unethical, or
23    unprofessional conduct of a character likely to deceive,
24    defraud, or harm the public.
25        (13) Habitual or excessive use or abuse of drugs,
26    alcohol, narcotics, stimulants, or any other substance

 

 

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1    that results in the inability to practice with reasonable
2    skill, judgment, or safety.
3        (14) Directly or indirectly giving to or receiving
4    from any person, firm, corporation, partnership, or
5    association any fee, commission, rebate, or other form of
6    compensation for any professional service not actually
7    rendered.
8        (15) Physical illness, including, but not limited to,
9    deterioration through the aging process or loss of motor
10    skill that results in the licensee or registrant's
11    inability to practice under this Act with reasonable
12    judgment, skill, or safety.
13        (16) Solicitation of professional services by using
14    false or misleading advertising.
15        (17) Any conduct reflecting adversely upon the
16    licensee's fitness to perform services while a licensee or
17    individual granted privileges under Section 5.2.
18        (18) Practicing or attempting to practice under a name
19    other than the full name as shown on the license or
20    registration or any other legally authorized name.
21        (19) A finding by the Department that a licensee or
22    registrant has not complied with a provision of any lawful
23    order issued by the Department.
24        (20) Making a false statement to the Department
25    regarding compliance with continuing professional
26    education or peer review requirements.

 

 

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1        (21) Failing to make a substantive response to a
2    request for information by the Department within 30 days
3    of the request.
4    (b) (Blank).
5    (b-5) All fines or costs imposed under this Section shall
6be paid within 60 days after the effective date of the order
7imposing the fine or costs or in accordance with the terms set
8forth in the order imposing the fine or cost.
9    (c) In cases where the Department of Healthcare and Family
10Services has previously determined a licensee or a potential
11licensee is more than 30 days delinquent in the payment of
12child support and has subsequently certified the delinquency
13to the Department, the Department may refuse to issue or renew
14or may revoke or suspend that person's license or may take
15other disciplinary or non-disciplinary action against that
16person based solely upon the certification of delinquency made
17by the Department of Healthcare and Family Services in
18accordance with item (5) of subsection (a) of Section 2105-15
19of the Department of Professional Regulation Law of the Civil
20Administrative Code of Illinois.
21    (d) The Department may refuse to issue or may suspend
22without hearing, as provided for in the Code of Civil
23Procedure, the license or registration of any person who fails
24to file a return, to pay a tax, penalty, or interest shown in a
25filed return, or to pay any final assessment of tax, penalty,
26or interest, as required by any tax Act administered by the

 

 

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1Illinois Department of Revenue, until such time as the
2requirements of any such tax Act are satisfied in accordance
3with subsection (g) of Section 2105-15 of the Department of
4Professional Regulation Law of the Civil Administrative Code
5of Illinois.
6    (e) (Blank).
7    (f) The determination by a court that a licensee or
8registrant is subject to involuntary admission or judicial
9admission as provided in the Mental Health and Developmental
10Disabilities Code will result in the automatic suspension of
11the his or her license or registration. The licensee or
12registrant shall be responsible for notifying the Department
13of the determination by the court that the licensee or
14registrant is subject to involuntary admission or judicial
15admission as provided in the Mental Health and Developmental
16Disabilities Code. The suspension shall end only upon a
17finding by a court that the patient is no longer subject to
18involuntary admission or judicial admission, the issuance of
19an order so finding and discharging the patient, and the
20filing of a petition for restoration demonstrating fitness to
21practice.
22    (g) In enforcing this Section, the Department, upon a
23showing of a possible violation, may compel, any licensee or
24registrant or any individual who has applied for licensure
25under this Act, to submit to a mental or physical examination
26and evaluation, or both, which may include a substance abuse

 

 

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1or sexual offender evaluation, at the expense of the
2Department. The Department shall specifically designate the
3examining physician licensed to practice medicine in all of
4its branches or, if applicable, the multidisciplinary team
5involved in providing the mental or physical examination and
6evaluation, or both. The multidisciplinary team shall be led
7by a physician licensed to practice medicine in all of its
8branches and may consist of one or more or a combination of
9physicians licensed to practice medicine in all of its
10branches, licensed chiropractic physicians, licensed clinical
11psychologists, licensed clinical social workers, licensed
12clinical professional counselors, and other professional and
13administrative staff. Any examining physician or member of the
14multidisciplinary team may require any person ordered to
15submit to an examination and evaluation under this Section to
16submit to any additional supplemental testing deemed necessary
17to complete any examination or evaluation process, including,
18but not limited to, blood testing, urinalysis, psychological
19testing, or neuropsychological testing. The Department may
20order the examining physician or any member of the
21multidisciplinary team to provide to the Department any and
22all records, including business records, that relate to the
23examination and evaluation, including any supplemental testing
24performed. The Department may order the examining physician or
25any member of the multidisciplinary team to present testimony
26concerning this examination and evaluation of the licensee,

 

 

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1registrant, or applicant, including testimony concerning any
2supplemental testing or documents relating to the examination
3and evaluation. No information, report, record, or other
4documents in any way related to the examination and evaluation
5shall be excluded by reason of any common law or statutory
6privilege relating to communication between the licensee,
7registrant, or applicant and the examining physician or any
8member of the multidisciplinary team. No authorization is
9necessary from the individual ordered to undergo an evaluation
10and examination for the examining physician or any member of
11the multidisciplinary team to provide information, reports,
12records, or other documents or to provide any testimony
13regarding the examination and evaluation.
14    The individual to be examined may have, at the
15individual's his or her own expense, another physician of the
16individual's his or her choice present during all aspects of
17the examination. Failure of any individual to submit to mental
18or physical examination and evaluation, or both, when
19directed, shall result in an automatic suspension, without
20hearing, until such time as the individual submits to the
21examination. If the Department finds a licensee, registrant,
22or applicant unable to practice because of the reasons set
23forth in this Section, the Department shall require such
24licensee, registrant, or applicant to submit to care,
25counseling, or treatment by physicians approved or designated
26by the Department, as a condition for continued, reinstated,

 

 

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1or renewed licensure to practice.
2    When the Secretary immediately suspends a license or
3registration under this Section, a hearing upon such person's
4license or registration must be convened by the Department
5within 15 days after such suspension and completed without
6appreciable delay. The Department shall have the authority to
7review the subject's record of treatment and counseling
8regarding the impairment, to the extent permitted by
9applicable federal statutes and regulations safeguarding the
10confidentiality of medical records.
11    Individuals licensed or registered under this Act,
12affected under this Section, shall be afforded an opportunity
13to demonstrate to the Department that they can resume practice
14in compliance with acceptable and prevailing standards under
15the provisions of the individual's their license or
16registration.
17(Source: P.A. 100-872, eff. 8-14-18.)
 
18    (225 ILCS 450/20.1)  (from Ch. 111, par. 5522)
19    (Section scheduled to be repealed on January 1, 2024)
20    Sec. 20.1. Investigations; notice; hearing.
21    (a) The Department may investigate the actions of an
22applicant, person, or entity holding or claiming to hold a
23license.
24    (b) The Department shall, before revoking, suspending,
25placing on probation, reprimanding, or taking any other

 

 

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1disciplinary or non-disciplinary action under Section 20.01 of
2this Act, at least 30 days before the date set for the hearing,
3(i) notify the accused in writing of the charges made and the
4time and place for the hearing on the charges, (ii) direct the
5accused him or her to file a written answer to the charges with
6the Department under oath within 20 days after the service on
7him or her of the notice is made, and (iii) inform the accused
8that, if the Department he or she fails to receive an answer,
9default shall be taken against the accused him or her or the
10accused's that his or her license or registration may be
11suspended, revoked, placed on probationary status, or other
12disciplinary action taken with regard to the licensee,
13including limiting the scope, nature, or extent of the
14accused's his or her practice, as the Department may consider
15proper.
16    (c) With respect to determinations by a Peer Review
17Administrator duly appointed by the Department under
18subsection (f) of Section 16 of this Act that a licensee has
19failed to satisfactorily complete a peer review as required
20under subsection (e) of Section 16, the Department may
21consider the Peer Review Administrator's findings of fact as
22prima facie evidence, and upon request by a licensee for a
23hearing the Department shall review the record presented and
24hear arguments by the licensee or the licensee's counsel but
25need not conduct a trial or hearing de novo or accept
26additional evidence.

 

 

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1    (d) At the time and place fixed in the notice, the
2Department shall proceed to hear the charges and the parties
3or the parties' their counsel shall be accorded ample
4opportunity to present any pertinent statements, testimony,
5evidence, and arguments. The Department may continue the
6hearing from time to time.
7    (e) In case the person, after receiving the notice, fails
8to file an answer, the his or her license or registration may,
9in the discretion of the Department, be suspended, revoked,
10placed on probationary status, or the Department may take
11whatever disciplinary action considered proper, including
12limiting the scope, nature, or extent of the person's practice
13or the imposition of a fine, without a hearing, if the act or
14acts charged constitute sufficient grounds for that action
15under this Act. The written notice may be served by regular
16registered or certified mail to the licensee or registrant's
17address of record or electronically to the licensee's email
18address of record.
19(Source: P.A. 98-254, eff. 8-9-13.)
 
20    (225 ILCS 450/20.2)  (from Ch. 111, par. 5523)
21    (Section scheduled to be repealed on January 1, 2024)
22    Sec. 20.2. Subpoenas; depositions; oaths.
23    (a) The Department may subpoena and bring before it any
24person to take the oral or written testimony or compel the
25production of any books, papers, records, or any other

 

 

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1documents that the Secretary or the Secretary's his or her
2designee deems relevant or material to any investigation or
3hearing conducted by the Department with the same fees and
4mileage as prescribed in civil cases in circuit courts of this
5State and in the same manner as prescribed by this Act and its
6rules.
7    (b) The Secretary, any member of the Committee designated
8by the Secretary, a certified shorthand reporter, or any
9hearing officer appointed may administer oaths at any hearing
10which the Department conducts. Notwithstanding any statute or
11Department rule to the contrary, all requests for testimony,
12production of documents, or records shall be in accordance
13with this Act.
14(Source: P.A. 98-254, eff. 8-9-13.)
 
15    (225 ILCS 450/20.6)  (from Ch. 111, par. 5526.6)
16    (Section scheduled to be repealed on January 1, 2024)
17    Sec. 20.6. Hearing officer. Notwithstanding the provisions
18of Section 20.2 of this Act, the Secretary shall have the
19authority to appoint any attorney duly licensed to practice
20law in the State of Illinois to serve as the hearing officer in
21any disciplinary action.
22    The hearing officer shall have full authority to conduct
23the hearing. The hearing officer shall report the hearing
24officer's his findings of fact, conclusions of law, and
25recommendations to the Committee and the Secretary.

 

 

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1(Source: P.A. 98-254, eff. 8-9-13.)
 
2    (225 ILCS 450/20.7)
3    (Section scheduled to be repealed on January 1, 2024)
4    Sec. 20.7. Findings and recommendations.
5    (a) The Committee shall review the report of the hearing
6officer and present its findings of fact, conclusions of law,
7and recommendations to the Secretary. The report of the
8findings and recommendations of the Committee shall be the
9basis for the Secretary's order for refusing to issue,
10restore, or renew a license or registration, or otherwise
11discipline a licensee or registrant.
12    (b) If the Secretary disagrees in any regard with the
13report of the Committee or hearing officer, the Secretary he
14or she may issue an order contrary to the report.
15    (c) The findings are not admissible in evidence against
16the person in a criminal prosecution brought for the violation
17of this Act, but the hearing and findings are not a bar to a
18criminal prosecution brought for the violation of this Act.
19(Source: P.A. 98-254, eff. 8-9-13.)
 
20    (225 ILCS 450/21)  (from Ch. 111, par. 5527)
21    (Section scheduled to be repealed on January 1, 2024)
22    Sec. 21. Administrative review; certification of record;
23order as prima facie proof.
24    (a) All final administrative decisions of the Department

 

 

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

 

 

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1    is duly appointed and qualified; and
2        (3) the Committee and the members thereof are
3    qualified to act.
4(Source: P.A. 98-254, eff. 8-9-13.)
 
5    (225 ILCS 450/27)  (from Ch. 111, par. 5533)
6    (Section scheduled to be repealed on January 1, 2024)
7    Sec. 27. Confidentiality of licensee's and registrant's
8records. A licensed or registered CPA shall not be required by
9any court to divulge information or evidence which has been
10obtained by him in the licensee or registrant's his
11confidential capacity as a licensed or registered CPA. This
12Section shall not apply to any investigation or hearing
13undertaken pursuant to this Act.
14(Source: P.A. 98-254, eff. 8-9-13.)
 
15    (225 ILCS 450/30)  (from Ch. 111, par. 5535)
16    (Section scheduled to be repealed on January 1, 2024)
17    Sec. 30. Injunctions; cease and desist.
18    (a) If any person or entity violates any provision of this
19Act, the Secretary may, in the name of the people of the State
20of Illinois by the Attorney General of the State of Illinois or
21the State's Attorney of any county in which the violation is
22alleged to have occurred, petition for an order enjoining the
23violation or for an order enforcing compliance with this Act.
24Upon the filing of a verified petition in court, the court may

 

 

HB2296- 56 -LRB103 27672 AMQ 54049 b

1issue a temporary restraining order, without notice or bond,
2and may preliminarily and permanently enjoin the violation. If
3it is established that the person has violated or is violating
4the injunction, the court may punish the offender for contempt
5of court. The injunction proceeding shall be in addition to
6and not in lieu of any penalties or other remedies provided by
7this Act. No injunction shall issue under this section against
8any person for any act exempted under Section 11 of this Act.
9    (b) If any person shall practice as a licensed CPA or a
10registered CPA or hold oneself himself or herself out as a
11licensed CPA or registered CPA without being licensed or
12registered under the provisions provision of this Act then any
13licensed CPA or registered CPA, any interested party, or any
14person injured thereby may, in addition to the Department,
15petition for relief as provided in subsection (a) of this
16Section.
17    (c) Whenever in the opinion of the Department any person
18violates any provision of this Act, the Department may issue a
19rule to show cause why an order to cease and desist should not
20be entered against the person him. The rule shall clearly set
21forth the grounds relied upon by the Department and shall
22provide a period of 7 days from the date of the rule to file an
23answer to the satisfaction of the Department. Failure to
24answer to the satisfaction of the Department shall cause an
25order to cease and desist to be issued forthwith.
26(Source: P.A. 98-254, eff. 8-9-13.)
 

 

 

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1    Section 99. Effective date. This Section and Section 5
2take effect upon becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 80/4.34
4    5 ILCS 80/4.39
5    225 ILCS 450/0.02from Ch. 111, par. 5500.02
6    225 ILCS 450/0.03from Ch. 111, par. 5500.03
7    225 ILCS 450/0.04 new
8    225 ILCS 450/1from Ch. 111, par. 5501
9    225 ILCS 450/2from Ch. 111, par. 5502
10    225 ILCS 450/2.05
11    225 ILCS 450/2.1from Ch. 111, par. 5503
12    225 ILCS 450/3from Ch. 111, par. 5504
13    225 ILCS 450/4from Ch. 111, par. 5505
14    225 ILCS 450/5.2
15    225 ILCS 450/6.1
16    225 ILCS 450/8from Ch. 111, par. 5509
17    225 ILCS 450/9.3
18    225 ILCS 450/13from Ch. 111, par. 5514
19    225 ILCS 450/13.5
20    225 ILCS 450/14.2
21    225 ILCS 450/14.5
22    225 ILCS 450/17from Ch. 111, par. 5518
23    225 ILCS 450/17.1from Ch. 111, par. 5518.1
24    225 ILCS 450/17.2from Ch. 111, par. 5518.2
25    225 ILCS 450/20.01from Ch. 111, par. 5521.01

 

 

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1    225 ILCS 450/20.1from Ch. 111, par. 5522
2    225 ILCS 450/20.2from Ch. 111, par. 5523
3    225 ILCS 450/20.6from Ch. 111, par. 5526.6
4    225 ILCS 450/20.7
5    225 ILCS 450/21from Ch. 111, par. 5527
6    225 ILCS 450/27from Ch. 111, par. 5533
7    225 ILCS 450/30from Ch. 111, par. 5535
8    225 ILCS 450/16from Ch. 111, par. 5517