Public Act 93-0629

SB713 Enrolled                       LRB093 03166 AMC 03183 b

    AN ACT concerning accounting.

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

    Section 5.  The Illinois Public Accounting Act is amended
by changing Sections 2 and 20.01 as follows:

    (225 ILCS 450/2) (from Ch. 111, par. 5502)
    (Section scheduled to be repealed on January 1, 2014)
    (Text of Section before amendment by P.A. 92-457)
    Sec.  2.   Examinations.  The  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 9 examiners, 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.  One shall be either
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 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  2  additional  examiners  for 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.
    Information   regarding   educational  requirements,  the
application process,  the  examination,  and  fees  shall  be
available  on the the Board's Internet web site as well as in
printed documents available from the  Board's  office.    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.  Prior to implementation of a
computer-based examination, 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.  Upon  implementation   of   a   computer-based
examination,  a  candidate  shall  be  required  to  pass all
sections of  the  examination  in  order  to  qualify  for  a
certificate.  A candidate may take the required test sections
individually  and in any order, as long as the examination is
taken within a timeframe established by Board rule.
    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.)

    (Text of Section after amendment by P.A. 92-457)
    Sec. 2.  Examinations. The Governor 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
examiners, as determined by Board rule,  including  2  public
members.  The remainder 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 shall be either a certified public 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, 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
additional examiners for terms 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.
    Information  regarding  educational   requirements,   the
application  process,  the  examination,  and  fees  shall be
available on the Board's Internet web  site  as  well  as  in
printed documents available from the Board's office. 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.  Prior to implementation  of  a
computer-based  examination,  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.   Upon   implementation   of  a  computer-based
examination, a  candidate  shall  be  required  to  pass  all
sections  of  the  examination  in  order  to  qualify  for a
certificate.  A candidate may take the required test sections
individually and in any order, as long as the examination  is
taken within a timeframe established by Board rule.
    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 this Act.
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. 92-457, eff. 7-1-04.)

    (225 ILCS 450/20.01) (from Ch. 111, par. 5521.01)
    (Section scheduled to be repealed on January 1, 2014)
    (Text of Section before amendment by P.A. 92-457)
    Sec. 20.01.  Grounds for discipline.
    (a)  The 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 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,  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 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 or federal agency.
         (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 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 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 Department that a licensee
    has not complied with a provision  of  any  lawful  order
    issued by the Department.
         (22)  Making  a  false  statement  to the Department
    regarding   compliance   with   continuing   professional
    education requirements.
         (23)  Failing to make a substantive  response  to  a
    request  for information by the Department within 30 days
    of the request.
    (b)  (Blank).
    (c)  In rendering an order, the 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  Department  shall  reissue  the  license   upon
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  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  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, 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; revised 3-7-02.)

    (Text of Section after amendment by P.A. 92-457)
    Sec. 20.01.  Grounds for discipline; license.
    (a)  The Board 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  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.  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 or federal agency.
         (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 an 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.
         (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.
         (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 that a licensee has not
    complied with a provision of any lawful order  issued  by
    the Board.
         (22)  Making   a   false   statement  to  the  Board
    regarding   compliance   with   continuing   professional
    education requirements.
         (23)  Failing to make a substantive  response  to  a
    request  for  information  by the Board within 30 days of
    the request.
    (b)  (Blank).
    (c)  In rendering an order, the  Board  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 shall reissue the license upon  a  showing
that  the  disciplined licensee has complied with  all of the
terms and conditions set forth in the final order.
    (e)  The Board 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 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.
(Source: P.A. 92-457, eff. 7-1-04; revised 3-7-02.)

    Section  95.   No  acceleration or delay.  Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for  example,  a
Section  represented  by  multiple versions), the use of that
text does not accelerate or delay the taking  effect  of  (i)
the  changes made by this Act or (ii) provisions derived from
any other Public Act.

    Section 99. Effective date.  This Act takes  effect  upon
becoming law.