Full Text of HB6065 099th General Assembly
HB6065 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB6065 Introduced 2/11/2016, by Rep. Robert Rita SYNOPSIS AS INTRODUCED: |
| 225 ILCS 450/0.03 | from Ch. 111, par. 5500.03 | 225 ILCS 450/5.2 | | 225 ILCS 450/13 | from Ch. 111, par. 5514 |
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Amends the Illinois Public Accounting Act. Allows a certified public accountant (CPA) firm whose principal place of business is not in this State to have all the privileges of a CPA firm licensed under the Act without the need to obtain a license from the Department of Financial and Professional Regulation or to file notice with the Department if the CPA firm complies with specified substantial equivalency requirements; makes conforming changes. Provides that firms that do not meet the certain requirements but offer or render services in the State must hold a license issued under the Act. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 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 by | 5 | | changing Sections 0.03, 5.2, and 13 as follows:
| 6 | | (225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
| 7 | | (Section scheduled to be repealed on January 1, 2024)
| 8 | | Sec. 0.03. Definitions. As used in this Act, unless the | 9 | | context
otherwise requires:
| 10 | | "Accountancy activities" means the services as set forth in | 11 | | Section 8.05 of the Act. | 12 | | "Address of record" means the designated address recorded | 13 | | by the Department in the applicant's, licensee's, or | 14 | | registrant's application file or license file maintained by the | 15 | | Department's licensure maintenance unit. It is the duty of the | 16 | | applicant, licensee, or registrant to inform the Department of | 17 | | any change of address, and those changes must be made either | 18 | | through the Department's website or by directly contacting the | 19 | | Department. | 20 | | "Certificate" means a certificate issued by the Board or | 21 | | University or similar jurisdictions specifying an individual | 22 | | has successfully passed all sections and requirements of the | 23 | | Uniform Certified Public Accountant Examination. A certificate |
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| 1 | | issued by the Board or University or similar jurisdiction does | 2 | | not confer the ability to use the CPA title and is not | 3 | | equivalent to a registration or license under this Act. | 4 | | "Compilation" means providing a service to be performed in | 5 | | accordance with Statements on Standards for Accounting and | 6 | | Review Services that is presented in the form of financial | 7 | | statements or information that is the representation of | 8 | | management or owners without undertaking to express any | 9 | | assurance on the statements. | 10 | | "CPA" or "C.P.A." means a certified public accountant who | 11 | | holds a license or registration issued by the Department or an | 12 | | individual authorized to use the CPA title under Section 5.2 of | 13 | | this Act. | 14 | | "CPA firm" means a sole proprietorship, a corporation, | 15 | | registered limited liability partnership, limited liability | 16 | | company, partnership, professional service corporation, or any | 17 | | other form of organization issued a license in accordance with | 18 | | this Act or a CPA firm authorized to use the CPA firm title | 19 | | under Section 5.2 of this Act . | 20 | | "CPA (inactive)" means a licensed certified public | 21 | | accountant who elects to have the Department place his or her | 22 | | license on inactive status pursuant to Section 17.2 of this | 23 | | Act. | 24 | | "Financial statement" means a structured presentation of | 25 | | historical financial information, including, but not limited | 26 | | to, related notes intended to communicate an entity's economic |
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| 1 | | resources and obligations at a point in time or the changes | 2 | | therein for a period of time in accordance with generally | 3 | | accepted accounting principles (GAAP) or other comprehensive | 4 | | basis of accounting (OCBOA). | 5 | | "Other attestation engagements" means an engagement | 6 | | performed in accordance with the Statements on Standards for | 7 | | Attestation Engagements. | 8 | | "Registered Certified Public Accountant" or "registered | 9 | | CPA" means any person who has been issued
a registration under | 10 | | this Act as a Registered Certified Public Accountant.
| 11 | | "Report", when used with reference to financial | 12 | | statements, means an opinion, report, or other form of language | 13 | | that states or implies assurance as to the reliability of any | 14 | | financial statements and that also includes or is accompanied | 15 | | by any statement or implication that the person or firm issuing | 16 | | it has special knowledge or competence in accounting or | 17 | | auditing. Such a statement or implication of special knowledge | 18 | | or competence may arise from use by the issuer of the report of | 19 | | names or titles indicating that the person or firm is an | 20 | | accountant or auditor, or from the language of the report | 21 | | itself. "Report" includes any form of language that disclaims | 22 | | an opinion when the form of language is conventionally | 23 | | understood to imply any positive assurance as to the | 24 | | reliability of the financial statements referred to or special | 25 | | competence on the part of the person or firm issuing such | 26 | | language; it includes any other form of language that is |
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| 1 | | conventionally understood to imply such assurance or such | 2 | | special knowledge or competence. | 3 | | "Licensed Certified Public Accountant" or "licensed CPA" | 4 | | means any person licensed
under this Act as a Licensed | 5 | | Certified Public Accountant.
| 6 | | "Committee" means the Public Accountant Registration and | 7 | | Licensure Committee appointed by the Secretary.
| 8 | | "Department" means the Department of Financial and | 9 | | Professional Regulation.
| 10 | | "License", "licensee", and "licensure" refer to the | 11 | | authorization
to practice under the provisions of this Act.
| 12 | | "Peer review" means a study, appraisal, or review of one or
| 13 | | more aspects of a CPA firm's or sole practitioner's compliance | 14 | | with applicable accounting, auditing, and other attestation | 15 | | standards adopted by generally recognized standard-setting | 16 | | bodies.
| 17 | | "Principal place of business" means the office location | 18 | | designated by the licensee from which the person directs, | 19 | | controls, and coordinates his or her professional services. | 20 | | "Review committee" means any person or persons conducting, | 21 | | reviewing,
administering, or supervising a peer review | 22 | | program.
| 23 | | "Secretary" means the Secretary of the Department of | 24 | | Financial and Professional Regulation. | 25 | | "University" means the University of Illinois.
| 26 | | "Board" means the Board of Examiners established under |
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| 1 | | Section 2.
| 2 | | "Registration", "registrant", and "registered" refer to | 3 | | the authorization to hold oneself out as or use the title | 4 | | "Registered Certified Public Accountant" or "Certified Public | 5 | | Accountant", unless the context otherwise requires.
| 6 | | "Peer Review Administrator" means an organization | 7 | | designated by the Department that meets the requirements of | 8 | | subsection (f) of Section 16 of this Act and other rules that | 9 | | the Department may adopt.
| 10 | | (Source: P.A. 98-254, eff. 8-9-13; 99-78, eff. 7-20-15.)
| 11 | | (225 ILCS 450/5.2)
| 12 | | (Section scheduled to be repealed on January 1, 2024) | 13 | | Sec. 5.2. Substantial equivalency. | 14 | | (a) An individual whose principal place of business is not | 15 | | in this State shall have all the privileges of a person | 16 | | licensed under this Act as a licensed CPA without the need to | 17 | | obtain a license from the Department or to file notice with the | 18 | | Department, if the individual: | 19 | | (1) holds a valid license as a certified public | 20 | | accountant issued by another state that the National | 21 | | Qualification Appraisal Service of the National | 22 | | Association of State Boards of Accountancy has verified to | 23 | | be in substantial equivalence with the CPA licensure | 24 | | requirements of the Uniform Accountancy Act of the American | 25 | | Institute of Certified Public Accountants and the National |
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| 1 | | Association of State Boards of Accountancy; or | 2 | | (2) holds a valid license as a certified public | 3 | | accountant issued by another state and obtains from the | 4 | | National Qualification Appraisal Service of the National | 5 | | Association of State Boards of Accountancy verification | 6 | | that the individual's CPA qualifications are substantially | 7 | | equivalent to the CPA licensure requirements of the Uniform | 8 | | Accountancy Act of the American Institute of Certified | 9 | | Public Accountants and the National Association of State | 10 | | Boards of Accountancy; however, any individual who has | 11 | | passed the Uniform CPA Examination and holds a valid | 12 | | license issued by any other state prior to January 1, 2012 | 13 | | shall be exempt from the education requirements of Section | 14 | | 3 of this Act for the purposes of this item (2). | 15 | | (a-5) A CPA firm whose principal place of business is not | 16 | | in this State shall have all the privileges of a CPA firm | 17 | | licensed under this Act without the need to obtain a license | 18 | | from the Department or to file notice with the Department if | 19 | | the CPA firm complies with the requirements outlined in | 20 | | Sections 14.4 and 16 through substantial equivalency of their | 21 | | licensed state. | 22 | | (b) Notwithstanding any other provision of law, an | 23 | | individual or CPA firm who offers or renders professional | 24 | | services under this Section, whether in person or by mail, | 25 | | telephone, or electronic means, shall be granted practice | 26 | | privileges in this State and no notice or other submission must |
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| 1 | | be provided by any such individual or CPA firm . | 2 | | (c) An individual licensee or CPA firm of another state who | 3 | | is exercising the privilege afforded under this Section and the | 4 | | CPA firm that employs such individual licensee , if any, as a | 5 | | condition of the grant of this privilege, hereby simultaneously | 6 | | consents: | 7 | | (1) to the personal and subject matter jurisdiction and | 8 | | disciplinary authority of the Department; | 9 | | (2) to comply with this Act and the Department's rules | 10 | | adopted under this Act; | 11 | | (3) that in the event that the license from the state | 12 | | of the individual's or CPA firm's principal place of | 13 | | business is no longer valid, the individual or CPA firm | 14 | | shall cease offering or rendering accountancy activities | 15 | | as outlined in paragraphs (1) and (2) of Section 8.05 in | 16 | | this State individually or on behalf of a CPA firm; and | 17 | | (4) to the appointment of the state board that issued | 18 | | the individual's or the CPA firm's license as the agent | 19 | | upon which process may be served in any action or | 20 | | proceeding by the Department against the individual or CPA | 21 | | firm . | 22 | | (d) An individual licensee who qualifies for practice | 23 | | privileges under this Section who, for any entity headquartered | 24 | | in this State, performs (i) a financial statement audit or | 25 | | other engagement in accordance with Statements on Auditing | 26 | | Standards; (ii) an examination of prospective financial |
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| 1 | | information in accordance with Statements on Standards for | 2 | | Attestation Engagements; or (iii) an engagement in accordance | 3 | | with Public Company Accounting Oversight Board Auditing | 4 | | Standards may only do so through a CPA firm licensed under this | 5 | | Act or a CPA firm with practice privileges under this Section .
| 6 | | (e) A CPA firm that qualifies for practice privileges under | 7 | | this Section and, for any entity headquartered in this State, | 8 | | performs the following may only do so through an individual or | 9 | | individuals licensed under this Act or an individual or | 10 | | individuals with practice privileges under this Section: | 11 | | (1) a financial statement audit or other engagement in | 12 | | accordance with Statements on Auditing Standards; | 13 | | (2) an examination of prospective financial | 14 | | information in accordance with Statements on Standards for | 15 | | Attestation Engagements; or | 16 | | (3) an engagement in accordance with Public Company | 17 | | Accounting Oversight Board Auditing Standards. | 18 | | (Source: P.A. 98-254, eff. 8-9-13.)
| 19 | | (225 ILCS 450/13) (from Ch. 111, par. 5514)
| 20 | | (Section scheduled to be repealed on January 1, 2024)
| 21 | | Sec. 13. Application for licensure.
| 22 | | (a) A person or CPA firm that wishes to perform accountancy | 23 | | activities in this State, as defined in paragraph (1) of | 24 | | subsection (a) of Section 8.05 of this Act, or use the CPA | 25 | | title
shall make application to the Department
and shall pay |
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| 1 | | the fee required by rule.
| 2 | | Applicants have 3 years from the date of application to | 3 | | complete the
application process. If the process has not been | 4 | | completed in 3 years,
the application shall be denied, the fee | 5 | | forfeited and the applicant must
reapply and meet the | 6 | | requirements in effect at the time of reapplication.
| 7 | | (b) Any CPA firm that (i) has an office in this State that | 8 | | uses the title "CPA" or "CPA firm"; (ii) has an office in this | 9 | | State that performs accountancy activities, as defined in | 10 | | paragraph (1) of subsection (a) of Section 8.05 of this Act; or | 11 | | (iii) does not have an office in this State and does not meet | 12 | | the practice privilege requirements as defined in Section 5.2 | 13 | | of this Act , but offers or renders performs services, as set | 14 | | forth in subsection (e) (d) of Section 5.2 of this Act, for a | 15 | | client that is headquartered in this State must hold a license | 16 | | as a CPA firm issued under this Act. | 17 | | (c) (Blank). A CPA firm that does not have an office in | 18 | | this State may perform a review of a financial statement in | 19 | | accordance with the Statements on Standards for Accounting and | 20 | | Review Services for a client with its headquarters in this | 21 | | State and may use the title "CPA" or "CPA firm" without | 22 | | obtaining a license as a CPA firm under this Act, only if the | 23 | | firm (i) performs such services through individuals with | 24 | | practice privileges under Section 5.2 of this Act; (ii) | 25 | | satisfies any peer review requirements in those states in which | 26 | | the individuals with practice privileges under Section 5.2 have |
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| 1 | | their principal place of business; and (iii) meets the | 2 | | qualifications set forth in paragraph (1) of Section 14.4 of | 3 | | this Act. | 4 | | (d) A CPA firm that is not subject to the requirements of | 5 | | subsection (b) or (c) of this Section may perform professional | 6 | | services that are not regulated under subsection (b) or (c) of | 7 | | this Section while using the title "CPA" or "CPA firm" in this | 8 | | State without obtaining a license as a CPA firm under this Act | 9 | | if the firm (i) performs such services through individuals with | 10 | | practice privileges under Section 5.2 of this Act and (ii) may | 11 | | lawfully perform such services in the state where those | 12 | | individuals with practice privileges under Section 5.2 of this | 13 | | Act have their principal place of business. | 14 | | (Source: P.A. 98-254, eff. 8-9-13.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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