093_SB0713enr SB713 Enrolled LRB093 03166 AMC 03183 b 1 AN ACT concerning accounting. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Public Accounting Act is amended 5 by changing Sections 2 and 20.01 as follows: 6 (225 ILCS 450/2) (from Ch. 111, par. 5502) 7 (Section scheduled to be repealed on January 1, 2014) 8 (Text of Section before amendment by P.A. 92-457) 9 Sec. 2. Examinations. The University shall appoint a 10 Board of Examiners that shall determine the qualifications of 11 persons applying for certificates and shall make rules for 12 and conduct examinations for determining the qualifications. 13 The Board shall consist of 9 examiners, at least 7 of 14 whom shall be certified public accountants in this State who 15 have been residents of this State for at least 5 years 16 immediately preceding their appointment. One shall be either 17 an accountant of the grade herein described or an attorney 18 licensed and residing in this State and one shall be a 19 certified public accountant who is an active or retired 20 educator residing in this State. The term of office of each 21 examiner shall be 3 years, except that upon the enactment of 22 this amendatory Act of 1993, those members currently serving 23 on the Board shall continue to serve the duration of their 24 terms, one additional examiner shall be appointed for a term 25 of one year, one additional examiner for a term of 2 years, 26 and 2 additional examiners for a term of 3 years. As the 27 term of each examiner expires, the appointment shall be 28 filled for a term of 3 years from the date of expiration. 29 Any Board member who has served as a member for 6 consecutive 30 years shall not be eligible for reappointment until 2 years 31 after the end of the term in which the sixth consecutive year SB713 Enrolled -2- LRB093 03166 AMC 03183 b 1 of service occurred. 2 Information regarding educational requirements, the 3 application process, the examination, and fees shall be 4 available on the the Board's Internet web site as well as in 5 printed documents available from the Board's office.The6time and place of holding the examinations shall be7determined by the Board and shall be duly advertised by the8Board.9 The examination shall test the applicant's knowledge of 10 accounting, auditing, and other related subjects, if any, as 11 the Board may deem advisable. Prior to implementation of a 12 computer-based examination, a candidate must be examined in 13 all subjects except that a candidate who has passed in 2 or 14 more subjects and who attained a minimum grade in each 15 subject failed as may be established by Board regulations 16 shall have the right to be re-examined in the remaining 17 subjects at one or more of the next 6 succeeding 18 examinations. Upon implementation of a computer-based 19 examination, a candidate shall be required to pass all 20 sections of the examination in order to qualify for a 21 certificate. A candidate may take the required test sections 22 individually and in any order, as long as the examination is 23 taken within a timeframe established by Board rule. 24 The Board may in certain cases waive or defer any of the 25 requirements of this Section regarding the circumstances in 26 which the various Sections of the examination must be passed 27 upon a showing that, by reasons of circumstances beyond the 28 applicant's control, the applicant was unable to meet the 29 requirement. 30 Applicants may also be required to pass an examination on 31 the rules of professional conduct, as determined by Board 32 rule to be appropriate. 33 The examinations shall be given at least twice a year. 34 Any application, document or other information filed by SB713 Enrolled -3- LRB093 03166 AMC 03183 b 1 or concerning an applicant and any examination grades of an 2 applicant shall be deemed confidential and shall not be 3 disclosed to anyone without the prior written permission of 4 the applicant, except that it is hereby deemed in the public 5 interest that the names and addresses only of all applicants 6 shall be a public record and be released as public 7 information. Nothing herein shall prevent the Board from 8 making public announcement of the names of persons receiving 9 certificates under this Act. 10 The Board shall adopt all necessary and reasonable rules 11 and regulations for the effective administration of the 12 Sections of this Act for which it is charged with 13 administering. Without limiting the foregoing, the Board 14 shall adopt and prescribe rules and regulations for a fair 15 and wholly and impartial method of determining the 16 qualifications of applicants for examination and for a fair 17 and wholly and impartial method of examination of persons 18 under Section 2 and may establish rules for subjects 19 conditioned and for the transfer of credits from other 20 jurisdictions with respect to subjects passed. 21 (Source: P.A. 88-36.) 22 (Text of Section after amendment by P.A. 92-457) 23 Sec. 2. Examinations. The Governor shall appoint a Board 24 of Examiners that shall determine the qualifications of 25 persons applying for certificates and shall make rules for 26 and conduct examinations for determining the qualifications. 27 The Board shall consist of not less than 9 nor more than 11 28 examiners, as determined by Board rule, including 2 public 29 members. The remainder shall be certified public accountants 30 in this State who have been residents of this State for at 31 least 5 years immediately preceding their appointment, except 32 that one shall be either a certified public accountant of the 33 grade herein described or an attorney licensed and residing 34 in this State and one shall be a certified public accountant SB713 Enrolled -4- LRB093 03166 AMC 03183 b 1 who is an active or retired educator residing in this State. 2 The term of office of each examiner shall be 3 years, except 3 that upon the enactment of this amendatory Act of the 92nd 4 General Assembly, those members currently serving on the 5 Board shall continue to serve the duration of their terms, 6 one additional examiner shall be appointed for a term of one 7 year, one additional examiner for a term of 2 years, and any 8 additional examiners for terms of 3 years. As the term of 9 each examiner expires, the appointment shall be filled for a 10 term of 3 years from the date of expiration. Any Board 11 member who has served as a member for 6 consecutive years 12 shall not be eligible for reappointment until 2 years after 13 the end of the term in which the sixth consecutive year of 14 service occurred, except that members of the Board serving on 15 the effective date of this Section shall be eligible for 16 appointment to one additional 3-year term. Where the 17 expiration of any member's term shall result in less than 11 18 members then serving on the Board, the member shall continue 19 to serve until his or her successor is appointed and has 20 qualified. The Governor may terminate the term of any member 21 of the Board at any time for cause. 22 Information regarding educational requirements, the 23 application process, the examination, and fees shall be 24 available on the Board's Internet web site as well as in 25 printed documents available from the Board's office.The time26and place of holding the examinations shall be determined by27the Board and shall be duly advertised by the Board.28 The examination shall test the applicant's knowledge of 29 accounting, auditing, and other related subjects, if any, as 30 the Board may deem advisable. Prior to implementation of a 31 computer-based examination, a candidate must be examined in 32 all subjects except that a candidate who has passed in 2 or 33 more subjects and who attained a minimum grade in each 34 subject failed as may be established by Board regulations SB713 Enrolled -5- LRB093 03166 AMC 03183 b 1 shall have the right to be re-examined in the remaining 2 subjects at one or more of the next 6 succeeding 3 examinations. Upon implementation of a computer-based 4 examination, a candidate shall be required to pass all 5 sections of the examination in order to qualify for a 6 certificate. A candidate may take the required test sections 7 individually and in any order, as long as the examination is 8 taken within a timeframe established by Board rule. 9 The Board may in certain cases waive or defer any of the 10 requirements of this Section regarding the circumstances in 11 which the various Sections of the examination must be passed 12 upon a showing that, by reasons of circumstances beyond the 13 applicant's control, the applicant was unable to meet the 14 requirement. 15 Applicants may also be required to pass an examination on 16 the rules of professional conduct, as determined by Board 17 rule to be appropriate. 18 The examinations shall be given at least twice a year. 19 Any application, document or other information filed by 20 or concerning an applicant and any examination grades of an 21 applicant shall be deemed confidential and shall not be 22 disclosed to anyone without the prior written permission of 23 the applicant, except that it is hereby deemed in the public 24 interest that the names and addresses only of all applicants 25 shall be a public record and be released as public 26 information. Nothing herein shall prevent the Board from 27 making public announcement of the names of persons receiving 28 certificates under this Act. 29 The Board shall adopt all necessary and reasonable rules 30 and regulations for the effective administration of this Act. 31 Without limiting the foregoing, the Board shall adopt and 32 prescribe rules and regulations for a fair and wholly and 33 impartial method of determining the qualifications of 34 applicants for examination and for a fair and wholly and SB713 Enrolled -6- LRB093 03166 AMC 03183 b 1 impartial method of examination of persons under Section 2 2 and may establish rules for subjects conditioned and for the 3 transfer of credits from other jurisdictions with respect to 4 subjects passed. 5 (Source: P.A. 92-457, eff. 7-1-04.) 6 (225 ILCS 450/20.01) (from Ch. 111, par. 5521.01) 7 (Section scheduled to be repealed on January 1, 2014) 8 (Text of Section before amendment by P.A. 92-457) 9 Sec. 20.01. Grounds for discipline. 10 (a) The Department may refuse to issue or renew, or may 11 revoke, suspend, or reprimand any license or licensee, place 12 a licensee on probation for a period of time subject to any 13 conditions the Committee may specify including requiring the 14 licensee to attend continuing education courses or to work 15 under the supervision of another licensee, impose a fine not 16 to exceed $5,000 for each violation, restrict the authorized 17 scope of practice, or require a licensee to undergo a peer 18 review program, for any one or more of the following: 19 (1) Violation of any provision of this Act. 20 (2) Attempting to procure a license to practice 21 public accounting by bribery or fraudulent 22 misrepresentations. 23 (3) Having a license to practice public accounting 24 revoked, suspended, or otherwise acted against, including 25 the denial of licensure, by the licensing authority of 26 another state, territory, or country. No disciplinary 27 action shall be taken in Illinois if the action taken in 28 another jurisdiction was based upon failure to meet the 29 continuing professional education requirements of that 30 jurisdiction and the applicable Illinois continuing 31 professional education requirements are met. 32 (4) Being convicted or found guilty, regardless of 33 adjudication, of a crime in any jurisdiction which SB713 Enrolled -7- LRB093 03166 AMC 03183 b 1 directly relates to the practice of public accounting or 2 the ability to practice public accounting. 3 (5) Making or filing a report or record which the 4 registrant knows to be false, willfully failing to file a 5 report or record required by state or federal law, 6 willfully impeding or obstructing the filing, or inducing 7 another person to impede or obstruct the filing. The 8 reports or records shall include only those that are 9 signed in the capacity of a public accountant. 10 (6) Conviction in this or another State or the 11 District of Columbia, or any United States Territory, of 12 any crime that is punishable by one year or more in 13 prison or conviction of a crime in a federal court that 14 is punishable by one year or more in prison. 15 (7) Proof that the licensee is guilty of fraud or 16 deceit, or of gross negligence, incompetency, or 17 misconduct, in the practice of public accounting. 18 (8) Violation of any rule adopted under this Act. 19 (9) Practicing on a revoked, suspended, or inactive 20 license. 21 (10) Suspension or revocation of the right to 22 practice before any state or federal agency. 23 (11) Conviction of any crime under the laws of the 24 United States or any state or territory of the United 25 States that is a felony or misdemeanor and has dishonesty 26 as essential element, or of any crime that is directly 27 related to the practice of the profession. 28 (12) Making any misrepresentation for the purpose 29 of obtaining a license, or material misstatement in 30 furnishing information to the Department. 31 (13) Aiding or assisting another person in 32 violating any provision of this Act or rules promulgated 33 hereunder. 34 (14) Engaging in dishonorable, unethical, or SB713 Enrolled -8- LRB093 03166 AMC 03183 b 1 unprofessional conduct of a character likely to deceive, 2 defraud, or harm the public and violating the rules of 3 professional conduct adopted by the Department. 4 (15) Habitual or excessive use or addiction to 5 alcohol, narcotics, stimulants, or any other chemical 6 agent or drug that results in the inability to practice 7 with reasonable skill, judgment, or safety. 8 (16) Directly or indirectly giving to or receiving 9 from any person, firm, corporation, partnership, or 10 association any fee, commission, rebate, or other form of 11 compensation for any professional service not actually 12 rendered. 13 (17) Physical or mental disability, including 14 deterioration through the aging process or loss of 15 abilities and skills that results in the inability to 16 practice the profession with reasonable judgment, skill 17 or safety. 18 (18) Solicitation of professional services by using 19 false or misleading advertising. 20 (19) Failure to file a return, or pay the tax, 21 penalty or interest shown in a filed return, or to pay 22 any final assessment of tax, penalty or interest, as 23 required by any tax Act administered by the Illinois 24 Department of Revenue or any successor agency or the 25 Internal Revenue Service or any successor agency. 26 (20) Practicing or attempting to practice under a 27 name other than the full name as shown on the license or 28 any other legally authorized name. 29 (21) A finding by the Department that a licensee 30 has not complied with a provision of any lawful order 31 issued by the Department. 32 (22) Making a false statement to the Department 33 regarding compliance with continuing professional 34 education requirements. SB713 Enrolled -9- LRB093 03166 AMC 03183 b 1 (23) 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 (c) In rendering an order, the Director shall take into 6 consideration the facts and circumstances involving the type 7 of acts or omissions in subsection (a) including, but not 8 limited to: 9 (1) the extent to which public confidence in the 10 public accounting profession was, might have been, or may 11 be injured; 12 (2) the degree of trust and dependence among the 13 involved parties; 14 (3) the character and degree of financial or 15 economic harm which did or might have resulted; and 16 (4) the intent or mental state of the person 17 charged at the time of the acts or omissions. 18 (d) The Department shall reissue the license upon 19 certification by the Committee that the disciplined licensee 20 has complied with all of the terms and conditions set forth 21 in the final order. 22 (e) The Department shall deny any application for a 23 license or renewal, without hearing, to any person who has 24 defaulted on an educational loan guaranteed by the Illinois 25 Student Assistance Commission; however, the Department may 26 issue a license or renewal if the person in default has 27 established a satisfactory repayment record as determined by 28 the Illinois Student Assistance Commission. 29 (f) The determination by a court that a licensee is 30 subject to involuntary admission or judicial admission as 31 provided in the Mental Health and Developmental Disabilities 32 Code will result in the automatic suspension of his or her 33 license. The suspension will end upon a finding by a court 34 that the licensee is no longer subject to involuntary SB713 Enrolled -10- LRB093 03166 AMC 03183 b 1 admission or judicial admission, the issuance of an order so 2 finding and discharging the patient, and the recommendation 3 of the Committee to the Director that the licensee be allowed 4 to resume professional practice. 5 (Source: P.A. 90-655, eff. 7-30-98; revised 3-7-02.) 6 (Text of Section after amendment by P.A. 92-457) 7 Sec. 20.01. Grounds for discipline; license. 8 (a) The Board may refuse to issue or renew, or may 9 revoke, suspend, or reprimand any license or licensee, place 10 a licensee on probation for a period of time subject to any 11 conditions the Board may specify including requiring the 12 licensee to attend continuing education courses or to work 13 under the supervision of another licensee, impose a fine not 14 to exceed $5,000 for each violation, restrict the authorized 15 scope of practice, or require a licensee to undergo a peer 16 review program, for any one or more of the following: 17 (1) Violation of any provision of this Act. 18 (2) Attempting to procure a license to practice 19 public accounting by bribery or fraudulent 20 misrepresentations. 21 (3) Having a license to practice public accounting 22 revoked, suspended, or otherwise acted against, including 23 the denial of licensure, by the licensing authority of 24 another state, the District of Columbia, or any United 25 States territory. No disciplinary action shall be taken 26 in Illinois if the action taken in another jurisdiction 27 was based upon failure to meet the continuing 28 professional education requirements of that jurisdiction 29 and the applicable Illinois continuing professional 30 education requirements are met. 31 (4) Being convicted or found guilty, regardless of 32 adjudication, of a crime in any jurisdiction which 33 directly relates to the practice of public accounting or 34 the ability to practice public accounting. SB713 Enrolled -11- LRB093 03166 AMC 03183 b 1 (5) Making or filing a report or record which the 2 registrant knows to be false, willfully failing to file a 3 report or record required by state or federal law, 4 willfully impeding or obstructing the filing, or inducing 5 another person to impede or obstruct the filing. The 6 reports or records shall include only those that are 7 signed in the capacity of a licensed certified public 8 accountant. 9 (6) Conviction in this or another State or the 10 District of Columbia, or any United States Territory, of 11 any crime that is punishable by one year or more in 12 prison or conviction of a crime in a federal court that 13 is punishable by one year or more in prison. 14 (7) Proof that the licensee is guilty of fraud or 15 deceit, or of gross negligence, incompetency, or 16 misconduct, in the practice of public accounting. 17 (8) Violation of any rule adopted under this Act. 18 (9) Practicing on a revoked, suspended, or inactive 19 license. 20 (10) Suspension or revocation of the right to 21 practice before any state or federal agency. 22 (11) Conviction of any crime under the laws of the 23 United States or any state or territory of the United 24 States that is a felony or misdemeanor and has dishonesty 25 as an essential element, or of any crime that is directly 26 related to the practice of the profession. 27 (12) Making any misrepresentation for the purpose 28 of obtaining a license, or material misstatement in 29 furnishing information to the Board. 30 (13) Aiding or assisting another person in 31 violating any provision of this Act or rules promulgated 32 hereunder. 33 (14) Engaging in dishonorable, unethical, or 34 unprofessional conduct of a character likely to deceive, SB713 Enrolled -12- LRB093 03166 AMC 03183 b 1 defraud, or harm the public and violating the rules of 2 professional conduct adopted by the Board. 3 (15) Habitual or excessive use or addiction to 4 alcohol, narcotics, stimulants, or any other chemical 5 agent or drug that results in the inability to practice 6 with reasonable skill, judgment, or safety. 7 (16) Directly or indirectly giving to or receiving 8 from any person, firm, corporation, partnership, or 9 association any fee, commission, rebate, or other form of 10 compensation for any professional service not actually 11 rendered. 12 (17) Physical or mental disability, including 13 deterioration through the aging process or loss of 14 abilities and skills that results in the inability to 15 practice the profession with reasonable judgment, skill 16 or safety. 17 (18) Solicitation of professional services by using 18 false or misleading advertising. 19 (19) Failure to file a return, or pay the tax, 20 penalty or interest shown in a filed return, or to pay 21 any final assessment of tax, penalty or interest, as 22 required by any tax Act administered by the Illinois 23 Department of Revenue or any successor agency or the 24 Internal Revenue Service or any successor agency. 25 (20) Practicing or attempting to practice under a 26 name other than the full name as shown on the license or 27 any other legally authorized name. 28 (21) A finding by the Board that a licensee has not 29 complied with a provision of any lawful order issued by 30 the Board. 31 (22) Making a false statement to the Board 32 regarding compliance with continuing professional 33 education requirements. 34 (23) Failing to make a substantive response to a SB713 Enrolled -13- LRB093 03166 AMC 03183 b 1 request for information by the Board within 30 days of 2 the request. 3 (b) (Blank). 4 (c) In rendering an order, the Board shall take into 5 consideration the facts and circumstances involving the type 6 of acts or omissions in subsection (a) including, but not 7 limited to: 8 (1) the extent to which public confidence in the 9 public accounting profession was, might have been, or may 10 be injured; 11 (2) the degree of trust and dependence among the 12 involved parties; 13 (3) the character and degree of financial or 14 economic harm which did or might have resulted; and 15 (4) the intent or mental state of the person 16 charged at the time of the acts or omissions. 17 (d) The Board shall reissue the license upon a showing 18 that the disciplined licensee has complied with all of the 19 terms and conditions set forth in the final order. 20 (e) The Board shall deny any application for a license 21 or renewal, without hearing, to any person who has defaulted 22 on an educational loan guaranteed by the Illinois Student 23 Assistance Commission; however, the Board may issue a license 24 or renewal if the person in default has established a 25 satisfactory repayment record as determined by the Illinois 26 Student Assistance Commission. 27 (f) The determination by a court that a licensee is 28 subject to involuntary admission or judicial admission as 29 provided in the Mental Health and Developmental Disabilities 30 Code will result in the automatic suspension of his or her 31 license. The suspension will end upon a finding by a court 32 that the licensee is no longer subject to involuntary 33 admission or judicial admission and the issuance of an order 34 so finding and discharging the patient. SB713 Enrolled -14- LRB093 03166 AMC 03183 b 1 (Source: P.A. 92-457, eff. 7-1-04; revised 3-7-02.) 2 Section 95. No acceleration or delay. Where this Act 3 makes changes in a statute that is represented in this Act by 4 text that is not yet or no longer in effect (for example, a 5 Section represented by multiple versions), the use of that 6 text does not accelerate or delay the taking effect of (i) 7 the changes made by this Act or (ii) provisions derived from 8 any other Public Act. 9 Section 99. Effective date. This Act takes effect upon 10 becoming law.