State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]


[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

91_HB2194eng

 
HB2194 Engrossed                               LRB9104858ACtm

 1        AN ACT to amend the Public Accounting Act.

 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 5, 9.1, and 14 and  by  adding  Sections
 6    14.2 and 14.3 as follows:

 7        (225 ILCS 450/5) (from Ch. 111, par. 5506)
 8        Sec. 5. Certification of out-of-State accountants.
 9        (a)  The  Board  may  issue  a certificate as a certified
10    public accountant, without examination, to any applicant  who
11    holds  a  valid  unrevoked  certificate as a certified public
12    accountant issued under  the  laws  of  any  other  state  or
13    territory  of  the United States or the District of Columbia,
14    provided:
15             (1)  that the state that issued the certificate  has
16        certification  requirements  that have been determined by
17        the  Board  to  be  substantially   equivalent   to   the
18        certification requirements of Illinois and grants similar
19        rights  to  those  that  Illinois  grants  to certificate
20        holders;
21             (2)  that the state that issued the certificate  has
22        certification   requirements   that  the  Department  has
23        determined not to  be  substantially  equivalent  to  the
24        certification  requirements of Illinois or does not grant
25        similar rights to Illinois certificate holders,  but  the
26        Board  determines that the individual applicant possesses
27        personal  qualifications  substantially   equivalent   to
28        Illinois' certification requirements; or
29             (3)  that  the  applicant  does  not  qualify  under
30        subsections   (1)   or   (2)  above,  but  the  following
31        conditions are met:
 
HB2194 Engrossed            -2-                LRB9104858ACtm
 1                  (A) (a)  the certificate  was  granted  to  the
 2             applicant  on  the  basis  of  the Uniform Certified
 3             Public Accountant examination; and
 4                  (B) (b)  the educational qualifications of  the
 5             applicant  for  a  certificate,  at  the time of the
 6             written  examination,   were   equivalent   to   the
 7             educational    qualifications   then   required   of
 8             applicants for admission to the Illinois examination
 9             for certified public accountant  or,  the  applicant
10             has, after passing the examination upon which his or
11             her  certificate was based, not less than 5 years of
12             experience in  the  practice  of  public  accounting
13             within  the  10  years  immediately  preceding  this
14             application,    otherwise    reasonably   considered
15             acceptable by the Board.
16        (b)  In determining the substantial  equivalency  of  the
17    requirements  for  certification  or  the  rights  granted to
18    certificate holders pursuant to this Section, the  Board  may
19    rely  on  the  determinations  of  the National Qualification
20    Appraisal Service of the National Association of State Boards
21    of Accountancy or any other qualification appraisal  service,
22    as it deems appropriate.
23    (Source: P.A. 88-36.)

24        (225 ILCS 450/9.1) (from Ch. 111, par. 5510.1)
25        Sec. 9.1.  Temporary practice.
26        (a)  An  individual  whose principal place of business is
27    not in this State and who has a license or permit to practice
28    as a certified public accountant  from  any  state  that  has
29    requirements   that  the  Department  has  determined  to  be
30    substantially equivalent to  the  licensing  requirements  of
31    this  State  and grants similar rights to those that Illinois
32    grants to a licensee, shall have  all  the  privileges  of  a
33    licensee  under this Act without the need to obtain a license
 
HB2194 Engrossed            -3-                LRB9104858ACtm
 1    under this Act.
 2        (a-5)  An individual whose principal place of business is
 3    not in this State and who has a valid license  or  permit  to
 4    practice as a certified public accountant from any state that
 5    has  requirements  that  Department  has  determined  are not
 6    substantially equivalent to  the  licensing  requirements  of
 7    this  State  or  does  not grant similar rights to those that
 8    Illinois  grants  to  a  licensee,  but  who  the  Department
 9    determines possesses  personal  qualifications  substantially
10    equivalent to Illinois licensure requirements, shall have all
11    the  privileges of a licensee under this Act without the need
12    to obtain a license or certificate under this  Act.  Licensed
13    certified  public accountants of other States and Territories
14    of the United States or the District of Columbia who  do  not
15    reside  or  have  an  office  in  this  State may temporarily
16    practice public accounting  in  this  State  on  professional
17    business incident to their regular practice without licensure
18    pursuant  to  this  Act.   Such  temporary  practice  must be
19    conducted in accordance with the relevant provisions of  this
20    Act  and  rules  and regulations adopted hereunder, including
21    provisions relating to disciplinary action.
22        (b)  A  foreign   accountant   who   holds   a   license,
23    certificate,  or  degree  in a foreign country constituting a
24    recognized  qualification  for   the   practice   of   public
25    accounting  and who does not reside or have an office in this
26    State may temporarily  practice  public  accounting  in  this
27    State or professional business incident to his or her regular
28    practice  without  licensure  under  this  Act  provided  the
29    standards,  including  examination, governing issuance of the
30    foreign license, certificate,  or  degree  are  substantially
31    equivalent to those in Illinois, and the foreign jurisdiction
32    in question grants equal recognition to Illinois accountants.
33        (c)  The Department may, by rule, require that any person
34    practicing  in this State under the provisions of subsections
 
HB2194 Engrossed            -4-                LRB9104858ACtm
 1    (a), (a-5), or (b) of this Section notify the  Department  of
 2    his  or  her  intent  to  practice  in  this  State under the
 3    provisions of this Section. Anyone practicing in  this  State
 4    under  the provisions of this Section shall be subject to the
 5    personal and subject matter jurisdiction of  the  Department,
 6    and  shall  comply  with  this  Act and all rules promulgated
 7    hereunder. By practicing in this State under  the  provisions
 8    of this Section, the person shall be deemed to consent to the
 9    appointment  of  the  licensing authority of the jurisdiction
10    which granted his or her license as agent upon  whom  process
11    may  be  served in any action or proceeding by the Department
12    against the person.
13    (Source: P.A. 88-36.)

14        (225 ILCS 450/14) (from Ch. 111, par. 5515)
15        Sec. 14. Qualifications. The Department shall license  as
16    public accountants the following:
17        (a)  All  persons  who  have  received  or  who hereafter
18    receive certificates as certified public accountants from the
19    Board, who have had at least one year of full-time experience
20    , or its equivalent, providing any type of service or  advice
21    involving the use of accounting, attest, management advisory,
22    financial  advisory,  tax, or consulting skills, which may be
23    gained through employment in government, industry,  academia,
24    or  public  practice.  either  on the professional staff of a
25    practicing public accountant of this or any other state or in
26    a  responsible  audit  position  including  work  of  a  type
27    normally directed toward the  expression  of  an  independent
28    opinion  on  financial  statements  in  a governmental agency
29    either: (1) in auditing the books and accounts  or  financial
30    activities  of  partnerships,  corporations  or other persons
31    engaged  in  3  or  more  distinct  lines  of  commercial  or
32    industrial business in  accordance  with  generally  accepted
33    auditing standards; or (2) in auditing the books and accounts
 
HB2194 Engrossed            -5-                LRB9104858ACtm
 1    or  financial  activities  of 3 or more distinct governmental
 2    agencies or independent organizational units, not an employer
 3    of the  applicant,  in  accordance  with  generally  accepted
 4    auditing standards, and in which the results of such auditing
 5    are  reported to a third party; or (3) in reviewing financial
 6    statements and supporting  material  covering  the  financial
 7    condition  and  operations  of  entities engaged in 3 or more
 8    distinct  lines  of  commercial  or  industrial  business  to
 9    determine the  reliability  and  fairness  of  the  financial
10    reporting  and  compliance with generally accepted accounting
11    principles and applicable laws and governmental  regulations;
12    or  who  provide  satisfactory  evidence  to  the  Committee,
13    established herein, of such other experience or employment as
14    the Committee may consider substantially equivalent thereto.
15        If  the  applicant's  certificate  was issued more than 4
16    years prior to the application for an internal license  under
17    this  Section,  the  applicant  shall submit any evidence the
18    Department may require showing the  applicant  has  completed
19    not  less  than 90 hours of continuing professional education
20    acceptable to the Department within the 3  years  immediately
21    preceding the date of application.
22        The  Committee  shall  be the sole and final judge of the
23    qualification of experience under this section.
24        (b)  All partnerships, limited  liability  companies,  or
25    corporations,  or  other  entities engaged in the practice of
26    public accounting in this State  and  meeting  the  following
27    requirements:
28             (1)  (Blank)  At  least  one  partner,  member  of a
29        limited  liability   company,   or   shareholder   in   a
30        corporation  must  be  licensed as a public accountant by
31        the Department under the provisions of this Act and  must
32        be  a holder of an effective unrevoked registration card;
33        and each partner, member of a limited liability  company,
34        or  shareholder  of  a  corporation personally engaged in
 
HB2194 Engrossed            -6-                LRB9104858ACtm
 1        this State in the practice of public accounting and  each
 2        person  in  charge of an office of the firm in this State
 3        must be so licensed and must be a holder of such a card.
 4             (2)  A majority of the ownership  of  the  firm,  in
 5        terms  of  financial  interests  and voting rights of all
 6        partners, officers, shareholders, members,  or  managers,
 7        belongs  to  persons  licensed  in  some  state,  and the
 8        partners, officers, shareholders,  members,  or  managers
 9        whose  principal  place  of business is in this State and
10        who practice public accounting in this State, as  defined
11        in  Section 8 of this Act, hold a valid license issued by
12        this State. Each partner, member of a  limited  liability
13        company,  or  shareholder of a corporation not personally
14        engaged  in  this  State  in  the  practice   of   public
15        accounting  must  be  a certified public accountant or be
16        otherwise authorized to practice accounting in some State
17        or Territory of the United States,  in  the  District  of
18        Columbia   or   in  a  foreign  country  or  a  political
19        subdivision thereof.
20             (3)  It shall be lawful for a nonprofit  cooperative
21        association   engaged   in   rendering  an  auditing  and
22        accounting service to its members only,  to  continue  to
23        render  that  service  provided  that  the  rendering  of
24        auditing   and  accounting  service  by  the  cooperative
25        association shall at all times be under the  control  and
26        supervision of public accountants.
27             (4)  The  Department may adopt rules and regulations
28        as necessary  to  provide  for  the  practice  of  public
29        accounting  by  business  entities  that may be otherwise
30        authorized by law to conduct business in Illinois.
31        The  Director   shall   appoint   a   Public   Accountant
32    Registration  Committee  as  follows:  7 persons who shall be
33    appointed by and shall serve in an advisory capacity  to  the
34    Director.   Six  members must be licensed public accountants,
 
HB2194 Engrossed            -7-                LRB9104858ACtm
 1    in good  standing,  and  must  be  actively  engaged  in  the
 2    practice  of  public accounting in this State, and one member
 3    of the public, who is not  licensed  under  this  Act,  or  a
 4    similar   Act  of  another  jurisdiction,  and,  who  has  no
 5    connection  with  the   accounting   or   public   accounting
 6    profession.  Members shall serve 4 year terms and until their
 7    successors  are  appointed and qualified.  No member shall be
 8    reappointed  to  the  Committee  for  more  than   2   terms.
 9    Appointments  to  fill  vacancies  shall  be made in the same
10    manner as original appointments, for the unexpired portion of
11    the vacated term.   The membership of  the  Committee  should
12    reasonably  reflect  representation from the geographic areas
13    in this State.
14        The members of the Committee appointed  by  the  Director
15    shall  receive  reasonable  compensation, to be determined by
16    the  Department,  for  the     necessary,   legitimate,   and
17    authorized  expenses approved by the Department. All expenses
18    shall  be  paid  from   the   Registered   Certified   Public
19    Accountants' Administration and Disciplinary Fund.
20        The  Director may terminate the appointment of any member
21    for cause.
22        The Committee shall  present  an  annual  report  to  the
23    Department the content of which shall be specified by rule.
24        The    Director    shall    consider   the   advice   and
25    recommendations  of  the  Committee  on  questions  involving
26    standards   of   professional   conduct,    discipline    and
27    qualifications of candidates and licensees under this Act.
28    (Source: P.A. 88-36.)

29        (225 ILCS 450/14.2 new)
30        Sec. 14.2. Licensure by reciprocity.
31        (a)  The  Department  shall  issue  a license as a public
32    accountant to any  applicant  who  holds  a  valid  unrevoked
33    license   or   permit  to  practice  as  a  certified  public
 
HB2194 Engrossed            -8-                LRB9104858ACtm
 1    accountant issued under  the  laws  of  any  other  state  or
 2    territory  of  the United States or the District of Columbia,
 3    provided:
 4             (1)  that the  state  that  issued  the  license  or
 5        permit  to  practice has licensure requirements that have
 6        been determined by the  Department  to  be  substantially
 7        equivalent  to  the  licensure requirements of this State
 8        and grants similar rights to Illinois licensees; or
 9             (2)  that the  state  that  issued  the  license  or
10        permit  to  practice has requirements that the Department
11        has determined  not to be substantially  equivalent  with
12        the  licensure  requirements  of  this  State or does not
13        grant similar  rights  to  Illinois  licensees,  but  the
14        individual  applicant  is determined by the Department to
15        possess personal qualifications substantially  equivalent
16        to this State's licensing requirements; or
17             (3)  that  the  applicant  does  not  qualify  under
18        paragraphs (1) or (2) above, but the following conditions
19        are met:
20                  (A)  the  license  or  permit  to  practice was
21             granted to the applicant on the basis of the uniform
22             CPA examination; and
23                  (B)  the  educational  qualifications  of   the
24             applicant for a license or other permit to practice,
25             at   the  time  of  the  written  examination,  were
26             equivalent to the  educational  qualifications  then
27             required of applicants for admission to the Illinois
28             examination  for certified public accountants or the
29             applicant has, after passing  the  examination  upon
30             which his or her license or other permit to practice
31             was  based,  not  less than 4 years of experience in
32             the practice of  public  accounting  within  the  10
33             years immediately before the application.
34        (b)  In  determining  the  substantial equivalency of any
 
HB2194 Engrossed            -9-                LRB9104858ACtm
 1    state's   requirements   to   Illinois'   requirements,   the
 2    Department may rely on the  determinations  of  the  National
 3    Qualification  Appraisal  Service of the National Association
 4    of State Boards of Accountancy or  such  other  qualification
 5    appraisal service as it deems appropriate.

 6        (225 ILCS 450/14.3 new)
 7        Section  14.3.  Additional  requirements  for  firms.  In
 8    addition  to  the  ownership  requirements   set   forth   in
 9    subsection  (b)  of Section 14, all firms licensed under this
10    Act shall meet the following requirements:
11        (a) All owners of the firm who are not licensed shall  be
12    active participants in the firm or its affiliated entities.
13        (b)  An  individual  who  supervises services for which a
14    license is required under Section 8 of this Act or who  signs
15    or  authorizes another to sign any report for which a license
16    is required under Section 8 of this Act shall hold  a  valid,
17    unrevoked  license from this State and shall comply with such
18    additional experience requirements as may be required by rule
19    of the Department.
20        (c)  The firm shall require that all owners of the  firm,
21    whether  or  not certified or licensed under this Act, comply
22    with rules promulgated under this Act.
23        (d)  The  firm  shall  designate  to  the  Department  in
24    writing an individual licensed under this Act  who  shall  be
25    responsible for the proper registration of the firm.

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

[ Top ]