State of Illinois
92^nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]

92_SB1284enr

 
SB1284 Enrolled                                LRB9206807LDpr

 1        AN ACT in relation to accounting.

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

 4        Section  5.  The Regulatory  Sunset  Act  is  amended  by
 5    changing Section 4.14 and adding Section 4.24 as follows:

 6        (5 ILCS 80/4.14) (from Ch. 127, par. 1904.14)
 7        Sec. 4.14.  Acts repealed.
 8        (a)  The following Acts are repealed December 31, 2003:
 9             The  Private  Detective,  Private Alarm, and Private
10        Security Act of 1993.
11             The Illinois Occupational Therapy Practice Act.
12        (b)  The following Acts are repealed January 1, 2004:
13             The Illinois Certified Shorthand  Reporters  Act  of
14        1984.
15             The Illinois Public Accounting Act.
16             The  Veterinary Medicine and Surgery Practice Act of
17        1994.
18    (Source: P.A. 87-261; 87-481; 87-576; 87-895; 88-36;  88-363;
19    88-424; 88-670, eff. 12-2-94.)

20        (5 ILCS 80/4.24 new)
21        Sec.   4.24.  Act  repealed  on  January  1,  2014.   The
22    following Act is repealed on January 1, 2014:
23        The Illinois Public Accounting Act.

24        Section  10.   The  Illinois  Public  Accounting  Act  is
25    amended  by  changing  Sections 0.03, 1, 2, 3, 6, 7, 8, 9.01,
26    9.2, 11, 13, 14, 14.1, 14.2, 14.3, 16, 17,  17.1,  17.2,  19,
27    20.01,  20.1,  20.2,  20.3, 20.4, 20.5, 20.6, 21, 26, 27, 28,
28    30, 30.1, and 32 and adding Section 9.02 as follows:
 
SB1284 Enrolled            -2-                 LRB9206807LDpr
 1        (225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
 2        Sec. 0.03.  Definitions. As used in this Act, unless  the
 3    context otherwise requires:
 4        (a)  "Certified  Public  Accountant" means any person who
 5    has  been  issued  a  certificate  as  a   certified   public
 6    accountant   from   the  Board  of  Examiners  University  of
 7    Illinois.
 8        (b)  "Licensed Certified  Public  Accountant"  means  any
 9    person licensed under this Act.
10        (c)  (Blank).   "Department"   means  the  Department  of
11    Professional Regulation.
12        (d)  (Blank).   "Director"   means   the   Director    of
13    Professional Regulation.
14        (e)  (Blank).   "Committee"  means  the  Illinois  Public
15    Accountants Registration Committee appointed by the Director.
16        (f)  "License", "licensee" and "licensure" refers to  the
17    authorization to practice under the provisions of this Act.
18        (g)  "Peer  review  program" means a study, appraisal, or
19    review of one or more aspects of the professional work  of  a
20    person   or  firm  certified  or  licensed  under  this  Act,
21    including quality review, peer review,  practice  monitoring,
22    quality    assurance,   and   similar   programs   undertaken
23    voluntarily or in response to membership  requirements  in  a
24    professional  organization,  or  as  a  prerequisite  to  the
25    providing   of   professional   services   under   government
26    requirements,  or  any  similar internal review or inspection
27    that is required by professional standards.
28        (h)  "Review  committee"  means  any  person  or  persons
29    conducting, reviewing, administering, or supervising  a  peer
30    review program.
31        (i)  "University" means the University of Illinois.
32        (j)  "Board"  means  the  Board  of Examiners established
33    under Section 2.
34    (Source: P.A. 88-36.)
 
SB1284 Enrolled            -3-                 LRB9206807LDpr
 1        (225 ILCS 450/1) (from Ch. 111, par. 5501)
 2        Sec. 1.  Any person, eighteen years of age or older,  who
 3    has   received   from   the  Board  University  of  Illinois,
 4    hereinafter called  the  University,  a  certificate  of  his
 5    qualifications  as  hereinafter provided, shall be styled and
 6    known as a "Certified Public Accountant," and no other person
 7    shall assume such title or use the abbreviation "C. P.A."  or
 8    any  words  or  letters to indicate that the person using the
 9    same is a certified public accountant.
10    (Source: P.A. 83-291.)

11        (225 ILCS 450/2) (from Ch. 111, par. 5502)
12        Sec. 2.   Examinations.  The  Governor  University  shall
13    appoint  a  Board  of  Examiners  that  shall  determine  the
14    qualifications of persons applying for certificates and shall
15    make  rules  for and conduct examinations for determining the
16    qualifications.
17    The Board shall consist of not less than 9 nor more than 11 9
18    examiners, as determined by Board rule,  including  2  public
19    members.  The remainder at least 7 of whom shall be certified
20    public accountants in this State who have been  residents  of
21    this  State  for at least 5 years immediately preceding their
22    appointment,  except  that  one.    One  shall  be  either  a
23    certified public an accountant of the grade herein  described
24    or  an  attorney  licensed and residing in this State and one
25    shall be a certified public accountant who is  an  active  or
26    retired  educator residing in this State.  The term of office
27    of each examiner shall be  3  years,  except  that  upon  the
28    enactment of this amendatory Act of the 92nd General Assembly
29    1993,  those  members  currently  serving  on the Board shall
30    continue to serve the duration of their terms, one additional
31    examiner shall be appointed for  a  term  of  one  year,  one
32    additional  examiner  for  a  term  of  2  years,  and  any 2
33    additional examiners for terms a term of  3  years.   As  the
 
SB1284 Enrolled            -4-                 LRB9206807LDpr
 1    term  of  each  examiner  expires,  the  appointment shall be
 2    filled for a term of 3 years from  the  date  of  expiration.
 3    Any Board member who has served as a member for 6 consecutive
 4    years  shall  not be eligible for reappointment until 2 years
 5    after the end of the term in which the sixth consecutive year
 6    of service occurred, except that members of the Board serving
 7    on the effective date of this Section shall be  eligible  for
 8    appointment   to   one  additional  3-year  term.  Where  the
 9    expiration of any member's term shall result in less than  11
10    members  then serving on the Board, the member shall continue
11    to serve until his or her  successor  is  appointed  and  has
12    qualified.  The Governor may terminate the term of any member
13    of the Board at any time for cause.
14        The time and place of holding the examinations  shall  be
15    determined  by  the Board and shall be duly advertised by the
16    Board.
17        The examination shall test the applicant's  knowledge  of
18    accounting,  auditing, and other related subjects, if any, as
19    the Board may deem advisable.  A candidate must  be  examined
20    in  all  subjects except that a candidate who has passed in 2
21    or more subjects and who attained a  minimum  grade  in  each
22    subject  failed  as  may  be established by Board regulations
23    shall have the right  to  be  re-examined  in  the  remaining
24    subjects   at   one   or   more  of  the  next  6  succeeding
25    examinations.
26        The Board may in certain cases waive or defer any of  the
27    requirements  of  this Section regarding the circumstances in
28    which the various Sections of the examination must be  passed
29    upon  a  showing that, by reasons of circumstances beyond the
30    applicant's control, the applicant was  unable  to  meet  the
31    requirement.
32        Applicants may also be required to pass an examination on
33    the  rules  of  professional  conduct, as determined by Board
34    rule to be appropriate.
 
SB1284 Enrolled            -5-                 LRB9206807LDpr
 1        The examinations shall be given at least twice a year.
 2        Any application, document or other information  filed  by
 3    or  concerning  an applicant and any examination grades of an
 4    applicant shall be  deemed  confidential  and  shall  not  be
 5    disclosed  to  anyone without the prior written permission of
 6    the applicant, except that it is hereby deemed in the  public
 7    interest  that the names and addresses only of all applicants
 8    shall  be  a  public  record  and  be  released   as   public
 9    information.   Nothing  herein  shall  prevent the Board from
10    making public announcement of the names of persons  receiving
11    certificates under this Act.
12        The  Board shall adopt all necessary and reasonable rules
13    and regulations  for  the  effective  administration  of  the
14    Sections   of   this   Act  for  which  it  is  charged  with
15    administering.  Without limiting  the  foregoing,  the  Board
16    shall  adopt  and  prescribe rules and regulations for a fair
17    and  wholly  and  impartial   method   of   determining   the
18    qualifications  of  applicants for examination and for a fair
19    and wholly and impartial method  of  examination  of  persons
20    under   Section  2  and  may  establish  rules  for  subjects
21    conditioned and  for  the  transfer  of  credits  from  other
22    jurisdictions with respect to subjects passed.
23    (Source: P.A. 88-36.)

24        (225 ILCS 450/3) (from Ch. 111, par. 5504)
25        Sec.  3.  Qualifications of applicants. To be admitted to
26    take the examination given before January 1,  2001,  for  the
27    purpose  of  determining the qualifications of applicants for
28    certificates as certified public accountants under this  Act,
29    the  applicants  shall  be  required  to present proof of the
30    successful completion of 120 college or  university  semester
31    hours  of  study or their equivalent from a school or schools
32    acceptable to the Board. Of the 120 semester hours, at  least
33    27  semester  hours  shall  be  in  the  study of accounting,
 
SB1284 Enrolled            -6-                 LRB9206807LDpr
 1    auditing and business law, provided that of the 27 hours  not
 2    more  than 6 shall be in business law. To be admitted to take
 3    the examination after the  year  2000,  for  the  purpose  of
 4    determining the qualifications of applicants for certificates
 5    as   certified   public   accountants  under  this  Act,  the
 6    applicants  shall  be  required  to  present  proof  of   the
 7    successful  completion  of 150 college or university semester
 8    hours  of  study  or   their   equivalent,   to   include   a
 9    baccalaureate  or  higher  degree  conferred  by a college or
10    university acceptable to the Board of  Examiners,  the  total
11    educational program to include an accounting concentration or
12    equivalent as determined by Board rules to be appropriate. In
13    adopting  those  rules, the Board shall consider, among other
14    things, any impediments to the interstate practice of  public
15    accounting   that   may   result   from  differences  in  the
16    requirements in other states.
17        Candidates who have taken the examination at  least  once
18    before  January  1,  2001, may take the examination under the
19    qualifications  in  effect   when   they   first   took   the
20    examination.
21    (Source: P.A. 87-726; 88-36.)

22        (225 ILCS 450/6) (from Ch. 111, par. 5507)
23        Sec. 6. Fees; pay of examiners; expenses. The Board shall
24    charge  a  fee in an amount at least sufficient to defray the
25    costs and expenses incident to the examination  and  issuance
26    of  a  certificate  provided  for  in  Section  3 and for the
27    issuance of a certificate provided for in Section 5. This fee
28    shall be payable by the applicant at the time  of  filing  an
29    application.
30        The   Board  appointed  by  the  Governor  University  in
31    accordance with the provisions of  Section  2  shall  receive
32    reasonable  compensation,  to be set determined by Board rule
33    the University, for the time actually expended  in  pursuance
 
SB1284 Enrolled            -7-                 LRB9206807LDpr
 1    of  the  duties imposed upon them by this Act, and they shall
 2    be further entitled to their  necessary  traveling  expenses.
 3    All  expenses provided for by this Act shall be paid from the
 4    fees received under this Act, and no expense  incurred  under
 5    this  Act  shall  be  charged  against  other  funds  of  the
 6    University.
 7        From  the  fees  collected,  the  Board shall pay all the
 8    expenses  incident  to  the  examinations,  the  expenses  of
 9    issuing  certificates,  the   traveling   expenses   of   the
10    examiners,  and  their  compensation  while  performing their
11    duties, and other necessary expenses in the administration of
12    this Act.
13    (Source: P.A. 88-36.)

14        (225 ILCS 450/7) (from Ch. 111, par. 5508)
15        Sec.  7.   Licensure.  A  holder  of  a  certificate   as
16    certified  public accountant issued by the Board shall not be
17    entitled to practice public accounting, as defined in Section
18    8, in this State until the person  has  been  licensed  as  a
19    licensed  certified public accountant by the Board Department
20    of Professional Regulation of this State, and has received  a
21    registration card from the Department.
22        The  Board  Department may refuse to issue or may suspend
23    the license of any person who fails to file a return,  or  to
24    pay  the tax, penalty or interest shown in a filed return, or
25    to pay any final assessment of tax, penalty or  interest,  as
26    required   by  any  tax  Act  administered  by  the  Illinois
27    Department of Revenue, until such time as the requirements of
28    any such tax Act are satisfied.
29    (Source: P.A. 88-36.)

30        (225 ILCS 450/8) (from Ch. 111, par. 5509)
31        Sec.  8.  Practicing   as   licensed   certified   public
32    accountant.  Persons,  either  individually,  as members of a
 
SB1284 Enrolled            -8-                 LRB9206807LDpr
 1    partnership or limited liability company, or as officers of a
 2    corporation, who sign, affix or associate their names or  any
 3    trade  or  assumed  names  used  by  them  in a profession or
 4    business to any report expressing or disclaiming  an  opinion
 5    on  a financial statement based on an audit or examination of
 6    that  statement,  or  expressing  assurance  on  a  financial
 7    statement, shall be deemed to  be  in  practice  as  licensed
 8    certified public accountants within the meaning and intent of
 9    this Act.
10    (Source: P.A. 87-435; 88-36.)

11        (225 ILCS 450/9.01)
12        Sec.   9.01.  Unlicensed   practice;   violation;   civil
13    penalty.
14        (a)  Any   person  who  practices,  offers  to  practice,
15    attempts to practice, or holds oneself out to practice  as  a
16    licensed  certified  public accountant without being licensed
17    under this Act  shall,  in  addition  to  any  other  penalty
18    provided  by law, pay a civil penalty to the Board Department
19    in an amount  not  to  exceed  $5,000  for  each  offense  as
20    determined  by  the Board Department. The civil penalty shall
21    be assessed by the Board Department after a hearing  is  held
22    in  accordance  with  the  provisions  set  forth in this Act
23    regarding the provision of a hearing for the discipline of  a
24    licensee.
25        (b)  The  Board Department has the authority and power to
26    investigate any and all unlicensed activity.
27        (c)  The civil penalty shall be paid within 60 days after
28    the effective date of the order imposing the  civil  penalty.
29    The  order  shall  constitute a judgment and may be filed and
30    execution had thereon in the same manner as any judgment from
31    any court of record.
32    (Source: P.A. 89-474, eff. 6-18-96.)
 
SB1284 Enrolled            -9-                 LRB9206807LDpr
 1        (225 ILCS 450/9.02 new)
 2        Sec. 9.02.  Unauthorized use of title;  violation;  civil
 3    penalty.
 4        (a)  Any  person  who  shall  assume the title "certified
 5    public accountant" or use the abbreviation "CPA" or any words
 6    or letters to indicate that the person using the  same  is  a
 7    certified  public  accountant  without  having  been issued a
 8    certificate under  the  provisions  of  this  Act  shall,  in
 9    addition   to   any   other penalty provided  by  law,  pay a
10    civil penalty to the Board in an amount not to exceed  $5,000
11    for   each  offense  as  determined  by the Board.  The civil
12    penalty shall be assessed by the Board  after  a  hearing  is
13    held  in  accordance  with the provisions set  forth  in this
14    Act  regarding  the  provision   of   a   hearing   for   the
15    discipline of a licensee.
16        (b)  The   Board   has   the   authority   and  power  to
17    investigate   any  and  all  alleged  improper  use  of   the
18    certified public accountant title or CPA designation.
19        (c)  The   civil   penalty   shall   be  paid  within  60
20    days after the effective date of the order imposing the civil
21    penalty. The order  shall constitute  a judgment and  may  be
22    filed  and  execution  had  thereon in the same manner as any
23    judgment from any court of record.

24        (225 ILCS 450/9.2) (from Ch. 111, par. 5510.2)
25        Sec. 9.2.  Powers and duties of the Board.
26        (a) The Board Department shall exercise  the  powers  and
27    duties  prescribed  by  "The  Civil  Administrative  Code  of
28    Illinois"  for the administration of licensing acts and shall
29    exercise such other powers and duties invested by this Act.
30        (b)  The Board Director may promulgate  rules  consistent
31    with  the  provisions  of this Act for the administration and
32    enforcement thereof, and for the payment  of  fees  connected
33    therewith  and  may  prescribe forms which shall be issued in
 
SB1284 Enrolled            -10-                LRB9206807LDpr
 1    connection therewith.  The rules shall include standards  and
 2    criteria   for   licensure   and   professional  conduct  and
 3    discipline.  The Department shall consult with the  Committee
 4    in  promulgating  rules.  Notice of proposed rulemaking shall
 5    be transmitted to the  Committee  and  the  Department  shall
 6    review  the Committee's response and any recommendations made
 7    therein.   The  Department  shall  notify  the  Committee  in
 8    writing with explanation of deviations from  the  Committee's
 9    recommendations and responses.
10        (c)  The  Department  may  solicit  the advice and expert
11    knowledge of the Committee on  any  matter  relating  to  the
12    administration and enforcement of this Act.
13        (d)  The   Department   shall   issue  quarterly  to  the
14    Committee a report of the status of all complaints related to
15    the profession received by the Department.
16    (Source: P.A. 83-291.)

17        (225 ILCS 450/11) (from Ch. 111, par. 5512)
18        Sec. 11. Exemption from Act. Nothing in  this  Act  shall
19    prohibit  any  person  who  may  be  engaged  by  one or more
20    persons, partnerships or corporations, from keeping books, or
21    from making trial balances or statements, or, as an employee,
22    from making audits or preparing reports,  provided  that  the
23    person  does  not  indicate  or  in any manner imply that the
24    trial balances, statements, or reports have been prepared  or
25    examined  by  a  certified  public  accountant  or a licensed
26    certified  public  accountant  or  that  they  represent  the
27    independent opinion of a certified  public  accountant  or  a
28    licensed  certified  public  accountant.  Nothing in this Act
29    shall prohibit any person from preparing tax and  information
30    returns  or  from  acting  as  representative or agent at tax
31    inquiries, examinations or proceedings, or from preparing and
32    installing accounting systems, or from reviewing accounts and
33    accounting  methods  for  the  purpose  of  determining   the
 
SB1284 Enrolled            -11-                LRB9206807LDpr
 1    efficiency  of  accounting  methods  or  appliances,  or from
 2    studying matters of organization, provided  that  the  person
 3    does  not  indicate  or  in any manner imply that the reports
 4    have  been  prepared  by,  or  that  the  representation   or
 5    accounting  work  has  been  performed  by a certified public
 6    accountant  or  a  licensed  certified   public   accountant.
 7    Unlicensed accountants are not prohibited from performing any
 8    services   that   they  may  have  performed  prior  to  this
 9    Amendatory Act of 1983.
10    (Source: P.A. 88-36.)

11        (225 ILCS 450/13) (from Ch. 111, par. 5514)
12        Sec.   13.   Application   for   licensure.   A   person,
13    partnership,  limited  liability  company,   or   corporation
14    desiring  to  practice  public accounting in this State shall
15    make application to the Board Department for licensure  as  a
16    licensed  certified  public  accountant and shall pay the fee
17    required by Section 17.
18        Applicants have 3 years from the date of  application  to
19    complete  the  application  process.   If the process has not
20    been completed in 3 years, the application shall  be  denied,
21    the fee forfeited and the applicant must reapply and meet the
22    requirements in effect at the time of reapplication.
23    (Source: P.A. 88-36.)

24        (225 ILCS 450/14) (from Ch. 111, par. 5515)
25        Sec.  14.  Qualifications.  The  Board  Department  shall
26    license   as   licensed   certified  public  accountants  the
27    following:
28        (a)  All persons  who  have  received  or  who  hereafter
29    receive certificates as certified public accountants from the
30    Board,   who   have  had  at  least  one  year  of  full-time
31    experience, or its equivalent, providing any type of  service
32    or advice involving the use of accounting, attest, management
 
SB1284 Enrolled            -12-                LRB9206807LDpr
 1    advisory,  financial  advisory,  tax,  or  consulting skills,
 2    which  may  be  gained  through  employment  in   government,
 3    industry, academia, or public practice.
 4        If  the  applicant's  certificate  was issued more than 4
 5    years prior to the application for an internal license  under
 6    this  Section,  the  applicant  shall submit any evidence the
 7    Board  Department  may  require  showing  the  applicant  has
 8    completed not less than 90 hours of  continuing  professional
 9    education  acceptable  to  the  Board Department within the 3
10    years immediately preceding the date of application.
11        The Committee shall be the sole and final  judge  of  the
12    qualification of experience under this section.
13        (b)  All  partnerships,  limited  liability companies, or
14    corporations, or other entities engaged in  the  practice  of
15    public  accounting  in  this  State and meeting the following
16    requirements:
17             (1)  (Blank).
18             (2)  A majority of the ownership  of  the  firm,  in
19        terms  of  financial  interests  and voting rights of all
20        partners, officers, shareholders, members,  or  managers,
21        belongs  to  persons  licensed  in  some  state,  and the
22        partners, officers, shareholders,  members,  or  managers
23        whose  principal  place  of business is in this State and
24        who practice public accounting in this State, as  defined
25        in  Section 8 of this Act, hold a valid license issued by
26        this State.
27             (3)  It shall be lawful for a nonprofit  cooperative
28        association   engaged   in   rendering  an  auditing  and
29        accounting service to its members only,  to  continue  to
30        render  that  service  provided  that  the  rendering  of
31        auditing   and  accounting  service  by  the  cooperative
32        association shall at all times be under the  control  and
33        supervision of licensed certified public accountants.
34             (4)  The   Board  Department  may  adopt  rules  and
 
SB1284 Enrolled            -13-                LRB9206807LDpr
 1        regulations as necessary to provide for the  practice  of
 2        public  accounting  by  business  entities  that  may  be
 3        otherwise  authorized  by  law  to  conduct  business  in
 4        Illinois.
 5        The   Director   shall   appoint   a   Public  Accountant
 6    Registration Committee as follows: 7  persons  who  shall  be
 7    appointed  by  and shall serve in an advisory capacity to the
 8    Director.  Six members must be licensed  public  accountants,
 9    in  good  standing,  and  must  be  actively  engaged  in the
10    practice of public accounting in this State, and  one  member
11    of  the  public,  who  is  not  licensed under this Act, or a
12    similar  Act  of  another  jurisdiction,  and,  who  has   no
13    connection   with   the   accounting   or  public  accounting
14    profession.  Members shall serve 4 year terms and until their
15    successors are appointed and qualified.  No member  shall  be
16    reappointed   to   the  Committee  for  more  than  2  terms.
17    Appointments to fill vacancies shall  be  made  in  the  same
18    manner as original appointments, for the unexpired portion of
19    the  vacated  term.    The membership of the Committee should
20    reasonably reflect representation from the  geographic  areas
21    in this State.
22        The  members  of  the Committee appointed by the Director
23    shall receive reasonable compensation, to  be  determined  by
24    the   Department,   for   the    necessary,  legitimate,  and
25    authorized expenses approved by the Department. All  expenses
26    shall   be   paid   from   the  Registered  Certified  Public
27    Accountants' Administration and Disciplinary Fund.
28        The Director may terminate the appointment of any  member
29    for cause.
30        The    Director    shall    consider   the   advice   and
31    recommendations  of  the  Committee  on  questions  involving
32    standards   of   professional   conduct,    discipline    and
33    qualifications of candidates and licensees under this Act.
34    (Source: P.A. 91-508, eff. 8-13-99; 91-827, eff. 6-13-00.)
 
SB1284 Enrolled            -14-                LRB9206807LDpr
 1        (225 ILCS 450/14.1)
 2        Sec.  14.1.  Foreign  accountants.   The Board Department
 3    shall issue a license to a holder of a  foreign  designation,
 4    granted  in a foreign country entitling the holder thereof to
 5    engage in the practice of public accounting, provided:
 6        (a)  The applicant is the holder of  a  certificate  from
 7    the Board issued under Section 2, 5, or 5.1 of this Act; and
 8        (b)  The  foreign  authority that granted the designation
 9    makes similar provision to allow a person who holds  a  valid
10    license  issued by this State to obtain a foreign authority's
11    comparable designation; and
12        (c)  The foreign designation (i) was  duly  issued  by  a
13    foreign  authority  that  regulates  the  practice  of public
14    accounting and the foreign designation  has  not  expired  or
15    been  revoked or suspended; (ii) entitles the holder to issue
16    reports upon financial statements; and (iii) was issued  upon
17    the   basis   of  educational,  examination,  and  experience
18    requirements established by the foreign authority or by  law;
19    and
20        (d)  The  applicant (i) received the designation based on
21    standards substantially equivalent to those in effect in this
22    State at the time the foreign designation  was  granted;  and
23    (ii)   completed  an  experience  requirement,  substantially
24    equivalent to the requirement set out in Section 14,  in  the
25    jurisdiction  that  granted  the  foreign  designation or has
26    completed 5 years of experience in  the  practice  of  public
27    accounting  in  this  State, or meets equivalent requirements
28    prescribed by the Board Department by  rule,  within  the  10
29    years immediately preceding the application.
30    (Source: P.A. 88-36.)

31        (225 ILCS 450/14.2)
32        Sec. 14.2.  Licensure by endorsement.
33        (a)  The  Board  Department  shall  issue  a license as a
 
SB1284 Enrolled            -15-                LRB9206807LDpr
 1    licensed certified public accountant  to  any  applicant  who
 2    holds  a  certificate as a certified public accountant issued
 3    by the Board and who  holds  a  valid  unrevoked  license  or
 4    permit  to practice as a licensed certified public accountant
 5    issued under the laws of any other state or territory of  the
 6    United States or the District of Columbia, provided:
 7             (1)  the  individual  applicant is determined by the
 8        Board  Department  to  possess  personal   qualifications
 9        substantially   equivalent   to   this   State's  current
10        licensing requirements;
11             (2)  at the time the applicant received his  or  her
12        current  valid  and  unrevoked  license  or  permit,  the
13        applicant    possessed    qualifications    substantially
14        equivalent  to  the  qualifications for licensure then in
15        effect in this State; or
16             (3)  the   applicant   has,   after   passing    the
17        examination upon which his or her license or other permit
18        to   practice  was  based,  not  less  than  4  years  of
19        experience in the practice of  public  accounting  within
20        the 10 years immediately before the application.
21        (b)  In  determining  the  substantial equivalency of any
22    state's requirements to  Illinois'  requirements,  the  Board
23    Department  may  rely  on  the determinations of the National
24    Qualification Appraisal Service of the  National  Association
25    of  State  Boards  of Accountancy or such other qualification
26    appraisal service as it deems appropriate.
27    (Source: P.A. 91-508, eff. 8-13-99; 91-779, eff. 6-9-00.)

28        (225 ILCS 450/14.3)
29        Sec.  14.3.  Additional  requirements  for   firms.    In
30    addition   to   the   ownership  requirements  set  forth  in
31    subsection (b) of Section 14, all firms licensed  under  this
32    Act shall meet the following requirements:
33        (a)  All owners of the firm who are not licensed shall be
 
SB1284 Enrolled            -16-                LRB9206807LDpr
 1    active participants in the firm or its affiliated entities.
 2        (b)  An  individual  who  supervises services for which a
 3    license is required under Section 8 of this Act or who  signs
 4    or  authorizes another to sign any report for which a license
 5    is required under Section 8 of this Act shall hold  a  valid,
 6    unrevoked  license from this State or another state and shall
 7    comply with such additional experience requirements as may be
 8    required by rule of the Board Department.
 9        (c)  The firm shall require that all owners of the  firm,
10    whether  or  not certified or licensed under this Act, comply
11    with rules promulgated under this Act.
12        (d)  The firm shall designate to the Board Department  in
13    writing  an  individual  licensed under this Act who shall be
14    responsible for the proper registration of the firm.
15    (Source: P.A. 91-508, eff. 8-13-99.)

16        (225 ILCS 450/16) (from Ch. 111, par. 5517)
17        Sec. 16. Expiration and renewal of licenses;  renewal  of
18    registration; continuing education.
19        (a)  The  expiration  date  and  renewal  period for each
20    license issued under this Act shall be set by rule.
21        (b)  Every application for renewal of a  license  by  any
22    person  who  has  been licensed under this Act for 3 years or
23    more shall be accompanied or supported by  any  evidence  the
24    Board   Department   shall   prescribe,  in  satisfaction  of
25    completing,  each  3  years,  not  less  than  120  hours  of
26    qualifying  continuing   professional   education   programs.
27    Applications  for renewal by any person who has been licensed
28    less than 3  years  shall  be  accompanied  or  supported  by
29    evidence  of  completion of 20 hours of qualifying continuing
30    professional education programs for each full 6 months  since
31    the  date of licensure or last renewal. Qualifying continuing
32    education  programs  include  those   given   by   continuing
33    education  sponsors registered with the Board, those given by
 
SB1284 Enrolled            -17-                LRB9206807LDpr
 1    the American Institute of CPAs, the Illinois CPA  Foundation,
 2    and   programs   given   by  sponsors  approved  by  national
 3    accrediting organizations approved by the Board. in  subjects
 4    given  by  continuing  education  sponsors  registered by the
 5    Department  upon  recommendation  of   the   Committee.   All
 6    continuing   education   sponsors   applying   to  the  Board
 7    Department for registration shall be required  to  submit  an
 8    initial nonrefundable application fee set by Board Department
 9    rule.  Each  registered continuing education sponsor shall be
10    required to pay an annual renewal fee set by Board Department
11    rule.   Publicly  supported   colleges,   universities,   and
12    governmental  agencies  located  in  Illinois are exempt from
13    payment of any fees required for continuing education sponsor
14    registration.  Failure by a continuing education  sponsor  to
15    be  licensed  or  pay  the fees prescribed in this Act, or to
16    comply with the rules  and  regulations  established  by  the
17    Board  Department  under  this Section regarding requirements
18    for  continuing  education   courses   or   sponsors,   shall
19    constitute grounds for revocation or denial of renewal of the
20    sponsor's  registration.  All  other  courses or programs may
21    qualify  upon  presentation  by  the  licensee  of   evidence
22    satisfactory  to  the  Board that the course or program meets
23    all Board rules for qualifying education programs.
24        Notwithstanding the preceding paragraph,  the  Department
25    may  accept courses and sponsors approved by other states, by
26    the American Institute of Certified  Public  Accountants,  by
27    other   state  CPA  societies,  or  by  national  accrediting
28    organizations such  as  the  National  Association  of  State
29    Boards  of  Accountancy;  provided, however, that the sponsor
30    must register with the Department and pay the required fee if
31    its courses are presented in the State of Illinois.
32        Failure by an applicant for renewal of  a  license  as  a
33    public  accountant  to  furnish the evidence shall constitute
34    grounds for disciplinary action, unless the Board  Department
 
SB1284 Enrolled            -18-                LRB9206807LDpr
 1    in  its  discretion  shall determine the failure to have been
 2    due to  reasonable  cause.   The  Board  Department,  in  its
 3    discretion,  may  renew  a license despite failure to furnish
 4    evidence  of  satisfaction  of  requirements  of   continuing
 5    education   upon   condition  that  the  applicant  follow  a
 6    particular program or schedule of continuing  education.   In
 7    issuing  rules, regulations, and individual orders in respect
 8    of requirements of continuing education, the Board Department
 9    in its discretion may, among other things, use and rely  upon
10    guidelines  and  pronouncements of recognized educational and
11    professional associations; may prescribe rules  for  content,
12    duration,  and  organization  of  courses;  shall  take  into
13    account   the   accessibility  to  applicants  of  continuing
14    education  as  it  may  require,  and  any   impediments   to
15    interstate practice of public accounting that may result from
16    differences  in requirements in other states; and may provide
17    for relaxation or suspension of  requirements  in  regard  to
18    applicants  who  certify that they do not intend to engage in
19    the practice of  public  accounting,  and  for  instances  of
20    individual hardship.
21        The  Board Department shall establish by rule a means for
22    the verification of completion of  the  continuing  education
23    required   by   this   Section.   This  verification  may  be
24    accomplished  through  audits  of   records   maintained   by
25    registrants;  by requiring the filing of continuing education
26    certificates with the Board Department;  or  by  other  means
27    established by the Board Department.
28        The  Board  Department may establish, by rule, guidelines
29    for acceptance of continuing education on behalf of  licensed
30    certified  public  accountants  taking  continuing  education
31    courses in other jurisdictions.
32    (Source: P.A. 87-435; 87-546; 88-36.)

33        (225 ILCS 450/17) (from Ch. 111, par. 5518)
 
SB1284 Enrolled            -19-                LRB9206807LDpr
 1        Sec.  17.  Fees;  returned  checks;  fines.  Each person,
 2    partnership, limited liability company, and  corporation,  to
 3    which  a license is issued, shall pay a fee to be established
 4    by the Board Department which allows the Board Department  to
 5    pay  all costs and expenses incident to the administration of
 6    this Act.  Interim licenses shall be at full rates.
 7        The Board Department, by rule, shall establish fees to be
 8    paid for certification of records, and copies of this Act and
 9    the rules issued for administration of this Act.
10        Any person who delivers a check or other payment  to  the
11    Board  Department  that  is  returned to the Board Department
12    unpaid by the financial institution upon which  it  is  drawn
13    shall  pay to the Board Department, in addition to the amount
14    already owed to the Board Department, a fine in an amount  to
15    be  established  by  Board rule of $50. If the check or other
16    payment was for a renewal or issuance  fee  and  that  person
17    practices  without paying the renewal fee or issuance fee and
18    the  fine  due,  an  additional  fine  in  an  amount  to  be
19    established by Board rule of $100 shall be imposed. The fines
20    imposed  by  this  Section  are  in  addition  to  any  other
21    discipline provided under this Act for unlicensed practice or
22    practice on a nonrenewed license. The Board Department  shall
23    notify  the  person  that  payment of fees and fines shall be
24    paid to the Board Department  by  certified  check  or  money
25    order  within 30 calendar days of the notification. If, after
26    the expiration of 30 days from the date of the  notification,
27    the person has failed to submit the necessary remittance, the
28    Board Department shall automatically terminate the license or
29    certificate  or  deny  the  application, without hearing. If,
30    after termination or denial, the person seeks  a  license  or
31    certificate,  he  or  she shall apply to the Board Department
32    for restoration or issuance of the license or certificate and
33    pay all fees and fines due to the Board Department. The Board
34    Department may establish a  fee  for  the  processing  of  an
 
SB1284 Enrolled            -20-                LRB9206807LDpr
 1    application  for  restoration  of a license or certificate to
 2    pay all expenses of processing this  application.  The  Board
 3    Director  may  waive  the  fines  due  under  this Section in
 4    individual cases where the  Board  Director  finds  that  the
 5    fines would be unreasonable or unnecessarily burdensome.
 6    (Source: P.A. 87-1031; 88-36.)

 7        (225 ILCS 450/17.1) (from Ch. 111, par. 5518.1)
 8        Sec.  17.1.  Any licensed certified public accountant who
 9    has permitted his license  to  expire  or  who  has  had  his
10    license  on  inactive status may have his license restored by
11    making application to the Board Department and  filing  proof
12    acceptable to the Board Department of his fitness to have his
13    license  restored,  including  sworn  evidence  certifying to
14    active practice in another jurisdiction satisfactory  to  the
15    Board  Department  and by paying the required restoration fee
16    and by submitting proof of the required continuing education.
17        If the  licensed  certified  public  accountant  has  not
18    maintained   an   active  practice  in  another  jurisdiction
19    satisfactory to the Board Department,  the  Board  Department
20    shall  determine,  by  an  evaluation  program established by
21    rule, fitness to resume active status  and  may  require  the
22    applicant   to  complete  a  period  of  supervised  auditing
23    experience.
24        However, any licensed certified public  accountant  whose
25    license expired while he was (1) in Federal Service on active
26    duty with the Armed Forces of the United States, or the State
27    Militia  called  into service or training, or (2) in training
28    or education under  the  supervision  of  the  United  States
29    preliminary  to induction into the military service, may have
30    his license renewed reinstated or restored without paying any
31    lapsed renewal and restoration fees if within 2  years  after
32    honorable  termination of such service, training or education
33    except under conditions other than  honorable,  he  furnished
 
SB1284 Enrolled            -21-                LRB9206807LDpr
 1    the Board Department with satisfactory evidence to the effect
 2    that he has been so engaged and that his service, training or
 3    education has been so terminated.
 4    (Source: P.A. 84-1299.)

 5        (225 ILCS 450/17.2) (from Ch. 111, par. 5518.2)
 6        Sec.  17.2.  Any licensed certified public accountant who
 7    notifies the Board Department in writing on forms  prescribed
 8    by the Board Department, may elect to place his license on an
 9    inactive  status  and  shall,  subject  to rules of the Board
10    Department, be excused from payment of renewal fees until  he
11    notifies  the  Board  Department  in writing of his desire to
12    resume active status.
13        Any  licensed  certified  public  accountant   requesting
14    restoration from inactive status shall be required to pay the
15    current renewal fee, shall be required to submit proof of the
16    required  continuing  education,  and  shall  be  required to
17    restore his license, as provided in this Act.
18        Any licensed certified public accountant whose license is
19    in an inactive status shall not practice public accounting in
20    this State of Illinois.
21        The Board Department may, in its discretion, license as a
22    licensed certified  public  accountant,  on  payment  of  the
23    required fee, an applicant who is a licensed certified public
24    accountant licensed under the laws of another jurisdiction if
25    the  requirements  for licensure of licensed certified public
26    accountants in the jurisdiction in which  the  applicant  was
27    licensed  were,  at  the date of his licensure, substantially
28    equivalent to the requirements in force in this State on that
29    date.
30        Applicants have 3 years from the date of  application  to
31    complete  the  application  process.   If the process has not
32    been completed in 3 years, the application shall  be  denied,
33    the fee forfeited and the applicant must reapply and meet the
 
SB1284 Enrolled            -22-                LRB9206807LDpr
 1    requirements in effect at the time of reapplication.
 2    (Source: P.A. 86-615.)

 3        (225 ILCS 450/19) (from Ch. 111, par. 5520)
 4        Sec.  19.   Hearings.  The Board, or a committee thereof,
 5    shall Committee established under the provisions  of  Section
 6    14  shall,  upon  designation  by  the Director, hear charges
 7    which, if proved, would constitute grounds  for  disciplinary
 8    action;  shall hear applications for restoration of a license
 9    and the issuance of registration cards as licensed  certified
10    public   accountants  of  any  person,  partnership,  limited
11    liability company, or  corporation  whose  license  has  been
12    suspended  or  revoked;  and  shall  report  its findings and
13    recommendations  in  connection  therewith   to   the   Board
14    Director, all as provided in Section 20.01.
15        The   Board   Department,   upon  recommendation  of  the
16    Committee shall also have power to promulgate and amend rules
17    of professional conduct that shall apply to persons certified
18    or every person licensed under this Act.
19    (Source: P.A. 88-36.)

20        (225 ILCS 450/20.01) (from Ch. 111, par. 5521.01)
21        Sec. 20.01.  Grounds for discipline; license.
22        (a)  The Board Department may refuse to issue  or  renew,
23    or may revoke, suspend, or reprimand any license or licensee,
24    place a licensee on probation for a period of time subject to
25    any  conditions  the  Board  Committee  may specify including
26    requiring the licensee to attend continuing education courses
27    or to work under the supervision of another licensee,  impose
28    a  fine not to exceed $5,000 for each violation, restrict the
29    authorized scope  of  practice,  or  require  a  licensee  to
30    undergo  a  peer  review  program, for any one or more of the
31    following:
32             (1)  Violation of any provision of this Act.
 
SB1284 Enrolled            -23-                LRB9206807LDpr
 1             (2)  Attempting to procure  a  license  to  practice
 2        public    accounting    by    bribery    or    fraudulent
 3        misrepresentations.
 4             (3)  Having  a license to practice public accounting
 5        revoked, suspended, or otherwise acted against, including
 6        the denial of licensure, by the  licensing  authority  of
 7        another  state,  the  District of Columbia, or any United
 8        States territory territory, or country.  No  disciplinary
 9        action  shall be taken in Illinois if the action taken in
10        another jurisdiction was based upon failure to  meet  the
11        continuing  professional  education  requirements of that
12        jurisdiction  and  the  applicable  Illinois   continuing
13        professional education requirements are met.
14             (4)  Being  convicted or found guilty, regardless of
15        adjudication,  of  a  crime  in  any  jurisdiction  which
16        directly relates to the practice of public accounting  or
17        the ability to practice public accounting.
18             (5)  Making  or  filing a report or record which the
19        registrant knows to be false, willfully failing to file a
20        report or  record  required  by  state  or  federal  law,
21        willfully impeding or obstructing the filing, or inducing
22        another  person  to  impede  or obstruct the filing.  The
23        reports or records shall  include  only  those  that  are
24        signed  in  the  capacity  of a licensed certified public
25        accountant.
26             (6)  Conviction in this  or  another  State  or  the
27        District  of Columbia, or any United States Territory, of
28        any crime that is punishable  by  one  year  or  more  in
29        prison  or  conviction of a crime in a federal court that
30        is punishable by one year or more in prison.
31             (7)  Proof that the licensee is guilty of  fraud  or
32        deceit,   or   of   gross  negligence,  incompetency,  or
33        misconduct, in the practice of public accounting.
34             (8)  Violation of any rule adopted under this Act.
 
SB1284 Enrolled            -24-                LRB9206807LDpr
 1             (9)  Practicing on a revoked, suspended, or inactive
 2        license.
 3             (10)  Suspension  or  revocation  of  the  right  to
 4        practice before any State.
 5             (11)  Conviction of any crime under the laws of  the
 6        United  States  or  any  state or territory of the United
 7        States that is a felony or misdemeanor and has dishonesty
 8        as essential element, or of any crime  that  is  directly
 9        related to the practice of the profession.
10             (12)  Making  any  misrepresentation for the purpose
11        of obtaining  a  license,  or  material  misstatement  in
12        furnishing information to the Board Department.
13             (13)  Aiding   or   assisting   another   person  in
14        violating any provision of this Act or rules  promulgated
15        hereunder.
16             (14)  Engaging   in   dishonorable,   unethical,  or
17        unprofessional conduct of a character likely to  deceive,
18        defraud,  or  harm  the public and violating the rules of
19        professional conduct adopted by the Board Department.
20             (15)  Habitual or  excessive  use  or  addiction  to
21        alcohol,  narcotics,  stimulants,  or  any other chemical
22        agent or drug that results in the inability  to  practice
23        with reasonable skill, judgment, or safety.
24             (16)  Directly  or indirectly giving to or receiving
25        from  any  person,  firm,  corporation,  partnership,  or
26        association any fee, commission, rebate, or other form of
27        compensation for any professional  service  not  actually
28        rendered.
29             (17)  Physical   or   mental  disability,  including
30        deterioration  through  the  aging  process  or  loss  of
31        abilities and skills that results  in  the  inability  to
32        practice  the  profession with reasonable judgment, skill
33        or safety.
34             (18)  Solicitation of professional services by using
 
SB1284 Enrolled            -25-                LRB9206807LDpr
 1        false or misleading advertising.
 2             (19)  Failure to file a  return,  or  pay  the  tax,
 3        penalty  or  interest  shown in a filed return, or to pay
 4        any final assessment of  tax,  penalty  or  interest,  as
 5        required  by  any  tax  Act  administered by the Illinois
 6        Department of Revenue or  any  successor  agency  or  the
 7        Internal Revenue Service or any successor agency.
 8             (20)  Practicing  or  attempting to practice under a
 9        name other than the full name as shown on the license  or
10        any other legally authorized name.
11             (21)  A  finding  by  the  Board  Department  that a
12        licensee has not complied with a provision of any  lawful
13        order issued by the Board Department.
14             (22)  Making   a   false   statement  to  the  Board
15        Department   regarding   compliance    with    continuing
16        professional education requirements.
17             (23)  Failing  to  make  a substantive response to a
18        request for information by the Board Department within 30
19        days of the request.
20        (b)  (Blank).
21        (c)  In rendering an order, the Board Director shall take
22    into consideration the facts and circumstances involving  the
23    type  of  acts  or omissions in subsection (a) including, but
24    not limited to:
25             (1)  the extent to which public  confidence  in  the
26        public accounting profession was, might have been, or may
27        be injured;
28             (2)  the  degree  of  trust and dependence among the
29        involved parties;
30             (3)  the  character  and  degree  of  financial   or
31        economic harm which did or might have resulted; and
32             (4)  the  intent  or  mental  state  of  the  person
33        charged at the time of the acts or omissions.
34        (d)  The  Board Department shall reissue the license upon
 
SB1284 Enrolled            -26-                LRB9206807LDpr
 1    a showing certification by the Committee that the disciplined
 2    licensee has complied with  all of the terms  and  conditions
 3    set forth in the final order.
 4        (e)  The  Board Department shall deny any application for
 5    a license or renewal, without hearing, to any person who  has
 6    defaulted  on  an educational loan guaranteed by the Illinois
 7    Student Assistance Commission; however, the Board  Department
 8    may  issue  a license or renewal if the person in default has
 9    established a satisfactory repayment record as determined  by
10    the Illinois Student Assistance Commission.
11        (f)  The  determination  by  a  court  that a licensee is
12    subject to involuntary admission  or  judicial  admission  as
13    provided  in the Mental Health and Developmental Disabilities
14    Code will result in the automatic suspension of  his  or  her
15    license.   The  suspension will end upon a finding by a court
16    that  the  licensee  is  no  longer  subject  to  involuntary
17    admission or judicial admission and  ,  the  issuance  of  an
18    order  so  finding  and  discharging  the  patient,  and  the
19    recommendation  of  the  Committee  to  the Director that the
20    licensee be allowed to resume professional practice.
21    (Source: P.A. 90-655, eff. 7-30-98.)

22        (225 ILCS 450/20.1) (from Ch. 111, par. 5522)
23        Sec. 20.1.  Investigations; notice;  hearing.  The  Board
24    Department  may,  upon  its  own  motion, and shall, upon the
25    verified complaint in writing of  any  person  setting  forth
26    facts   which,   if  proved,  would  constitute  grounds  for
27    disciplinary  action  as  set   forth   in   Section   20.01,
28    investigate  the  actions  of any person or entity. The Board
29    Department may  refer  complaints  and  investigations  to  a
30    disciplinary  body of the accounting profession for technical
31    assistance.    The   results   of   an   investigation    and
32    recommendations of the disciplinary body may be considered by
33    the   Board   Department,   but   shall   not  be  considered
 
SB1284 Enrolled            -27-                LRB9206807LDpr
 1    determinative and the Board Department shall not in  any  way
 2    be obligated to take any action or be bound by the results of
 3    the  accounting  profession's  disciplinary  proceedings. The
 4    Board, Department before taking  disciplinary  action,  shall
 5    afford  the  concerned  party  or  parties  an opportunity to
 6    request a hearing and if so requested shall set  a  time  and
 7    place  for  a hearing of the complaint.  The Board Department
 8    shall notify the applicant or the licensed person  or  entity
 9    of  any charges made and the date and place of the hearing of
10    those charges by mailing notice thereof  to  that  person  or
11    entity  by  registered  or  certified  mail to the place last
12    specified by  the  accused  person  or  entity  in  the  last
13    notification  to the Board Department, at least 30 days prior
14    to the date set for the  hearing  or  by  serving  a  written
15    notice  by  delivery  of  the notice to the accused person or
16    entity at least 15  days  prior  to  the  date  set  for  the
17    hearing, and shall direct the applicant or licensee to file a
18    written  answer  to the Board under oath within 20 days after
19    the service  of  the  notice  and  inform  the  applicant  or
20    licensee  that  failure  to  file  an  answer  will result in
21    default being taken against the  applicant  or  licensee  and
22    that  the  license  or certificate may be suspended, revoked,
23    placed on probationary status, or other  disciplinary  action
24    may  be taken, including limiting the scope, nature or extent
25    of practice, as the Board Director may deem proper.  In  case
26    the  person  fails  to file an answer after receiving notice,
27    his or her license or certificate may, in the  discretion  of
28    the  Board  Department,  be  suspended, revoked, or placed on
29    probationary  status,  or  the  Board  Department  may   take
30    whatever   disciplinary   action   deemed  proper,  including
31    limiting  the  scope,  nature,  or  extent  of  the  person's
32    practice or the imposition of a fine, without a  hearing,  if
33    the  act  or  acts  charged constitute sufficient grounds for
34    such action under this Act. The Board Department shall afford
 
SB1284 Enrolled            -28-                LRB9206807LDpr
 1    the accused person or entity an opportunity to  be  heard  in
 2    person  or  by  counsel  at  the  hearing.   Following At the
 3    conclusion of the hearing the  Board  Committee  shall  issue
 4    present  to the Director a written order setting forth report
 5    of its finding of facts, conclusions of law, and penalties to
 6    be imposed recommendations.  The order report shall contain a
 7    finding whether or not the accused person violated  this  Act
 8    or failed to comply with the conditions required in this Act.
 9    The  Committee  shall  specify the nature of the violation or
10    failure to  comply,  and  make  its  recommendations  to  the
11    Director.
12        The  report  of  findings of fact, conclusions of law and
13    recommendations of the Committee shall be the basis  for  the
14    Department's  disciplinary action.  If the Director disagrees
15    in any regard with the report,  he  may  issue  an  order  in
16    contravention  of  the  report.  The Director shall provide a
17    written explanation to the Committee of any  deviations  from
18    their  report,  and  shall  specify  with  particularity  the
19    reasons of that action in the final order. The finding is not
20    admissible  in  evidence  against  the  person  in a criminal
21    prosecution brought for the violation of this  Act,  but  the
22    hearing  and findings are not a bar to a criminal prosecution
23    brought for the violation of this Act.
24    (Source: P.A. 87-1031; 88-36.)

25        (225 ILCS 450/20.2) (from Ch. 111, par. 5523)
26        Sec. 20.2.  The Board Department may either  directly  or
27    through  its  Committee  subpoena  and bring before it at any
28    hearing any person in this State and take  testimony  through
29    the  Committee  either orally or by deposition, or both, with
30    the  same  fees  and  mileage  and  in  the  same  manner  as
31    prescribed by law in judicial proceedings in civil  cases  in
32    circuit courts of this State.
33        The  Chairman of the Board Director, or any member of the
 
SB1284 Enrolled            -29-                LRB9206807LDpr
 1    Board Committee designated by the Chairman,  or  any  hearing
 2    officer  appointed  pursuant  to  Section  20.6, Director may
 3    administer oaths to witnesses at any hearing which the  Board
 4    Department  is  authorized  by  law to conduct, and any other
 5    oaths required or authorized in any Act administered  by  the
 6    Board Department.
 7    (Source: P.A. 83-338.)

 8        (225 ILCS 450/20.3) (from Ch. 111, par. 5524)
 9        Sec.  20.3.  Any  circuit court in the State of Illinois,
10    upon the application of the accused  person,  partnership  or
11    corporation,  of  the complainant or of the Board Department,
12    may,  by  order  duly  entered,  require  the  attendance  of
13    witnesses and the production of  relevant  books  and  papers
14    before  the  Board  Department  at  any hearing relative to a
15    disciplinary action and the court may compel obedience to the
16    order by proceedings for contempt.
17    (Source: P.A.83-291; 83-334.)

18        (225 ILCS 450/20.4) (from Ch. 111, par. 5525)
19        Sec. 20.4. The Board Department, at  its  expense,  shall
20    provide  a  stenographer  to  take  down  the  testimony  and
21    preserve   a   record  of  all  proceedings  at  disciplinary
22    hearings. The Board Department shall furnish a transcript  of
23    that  record  to  any  person interested in that hearing upon
24    payment of the  reasonable  cost  established  by  the  Board
25    Department.
26    (Source: P.A. 83-291.)

27        (225 ILCS 450/20.5) (from Ch. 111, par. 5526)
28        Sec.  20.5.  Rehearing. In any disciplinary proceeding, a
29    copy of the Board's order Committee's report shall be  served
30    upon  the  respondent by the Department, either personally or
31    as provided in this Act for the  service  of  the  notice  of
 
SB1284 Enrolled            -30-                LRB9206807LDpr
 1    hearing.   Within  20 days after such service, the respondent
 2    may present to the Board Department a motion in writing for a
 3    rehearing, which motion shall specify the particular  grounds
 4    therefor.  If no motion for rehearing is filed, then upon the
 5    expiration of the time specified for filing such a motion, or
 6    if a motion or rehearing is denied, then upon such denial the
 7    determination  of the Board shall be final Director may enter
 8    an order in accordance with recommendations of the  Committee
 9    except  as  provided  in  Section  20.6  of this Act.  If the
10    respondent shall order from the reporting  service,  and  pay
11    for  a  transcript of the record within the time for filing a
12    motion for rehearing, the 20 day period within which  such  a
13    motion  may  be filed shall commence upon the delivery of the
14    transcript to the respondent.
15        Whenever  the  Director  is  satisfied  that  substantial
16    justice has not been done in the disciplinary proceeding, the
17    Director may order a rehearing by the Committee or designated
18    hearing officer.
19        Upon the suspension or revocation  of  a  certificate  or
20    license  the  licensee  shall be required to surrender to the
21    Board Department the certificate or  license  issued  by  the
22    Board  Department,  and upon failure or refusal so to do, the
23    Board Department may seize it.
24        The Board Department may exchange information relating to
25    proceedings  resulting   in   disciplinary   action   against
26    licensees  with  the  regulatory  licensing  bodies  of other
27    states,  or  with  other  public   authorities   or   private
28    organizations having regulatory interest in such matter.
29    (Source: P.A. 88-36.)

30        (225 ILCS 450/20.6) (from Ch. 111, par. 5526.6)
31        Sec.  20.6.  Notwithstanding  the  provisions  of Section
32    20.2 of this Act, the Board Director shall have the authority
33    to appoint any attorney duly licensed to practice law in  the
 
SB1284 Enrolled            -31-                LRB9206807LDpr
 1    State  of  Illinois  to  serve  as the hearing officer in any
 2    disciplinary action.  The Director shall notify the Committee
 3    of such appointment.
 4        The hearing officer shall have full authority to  conduct
 5    the  hearing.   The hearing officer shall report his findings
 6    of fact, conclusions of law and recommendations to the  Board
 7    Committee  and  the Director.  The Board Committee shall have
 8    60 days from receipt of the report to review  the  report  of
 9    the  hearing  officer  and  present  their  findings of fact,
10    conclusions of law and recommendations to the  Director.   If
11    the  Committee  fails to present its report within the 60 day
12    period, the Director shall issue an order based on the report
13    of the hearing officer unless it.  If the Director  disagrees
14    in  any  regard  with  the report of the Committee or hearing
15    officer,  in  which  case  it  he  may  issue  an  order   in
16    contravention  thereof, which order may require a new hearing
17    as to some or all of  the  facts  in  dispute  or  may  issue
18    findings  of  fact  and  conclusions  of  law contrary to the
19    findings  and  conclusions  of  the  hearing  officer.    The
20    Director shall provide a written explanation to the Committee
21    of  any  such deviations and shall specify with particularity
22    the reasons for said action in the final order.
23    (Source: P.A. 83-291.)

24        (225 ILCS 450/21) (from Ch. 111, par. 5527)
25        Sec. 21. Judicial review; cost of record; order as  prima
26    facie proof.
27        (a)  All  final  administrative  decisions  of  the Board
28    Department hereunder shall  be  subject  to  judicial  review
29    pursuant  to the provisions of the Administrative Review Law,
30    and all amendments and modifications thereof, and  the  rules
31    adopted pursuant thereto.  The term "administrative decision"
32    is  defined  as  in  Section  3-101  of  the  Code  of  Civil
33    Procedure.
 
SB1284 Enrolled            -32-                LRB9206807LDpr
 1        Proceedings for judicial review shall be commenced in the
 2    Circuit  Court  of the county in which the party applying for
 3    review resides;  provided,  that  if  such  party  is  not  a
 4    resident  of  this  State,  the  venue  shall be in Sangamon,
 5    Champaign, or Cook County.
 6        (b)  The  Board  Department  shall  not  be  required  to
 7    certify any record to the court or file any answer  in  court
 8    or  otherwise  appear  in  any  court  in  a  judicial review
 9    proceeding, unless there is  filed  in  the  court  with  the
10    complaint  a  receipt from the Board Department acknowledging
11    payment of the costs of furnishing and certifying the record,
12    which costs shall be established  by  the  Board  Department.
13    Exhibits  shall  be  certified  without cost.  Failure on the
14    part of the plaintiff to file such receipt in court shall  be
15    grounds for dismissal of the action.
16        (c)  An  order of disciplinary action or a certified copy
17    thereof, over the seal of the Board Department and purporting
18    to be signed by the Chairman or authorized agent of the Board
19    Director, shall  be  prima  facie  proof,  subject  to  being
20    rebutted, that:
21             (1)  the  signature  is the genuine signature of the
22        Chairman or authorized agent of the Board Director;
23             (2)  the Chairman or authorized agent of  the  Board
24        Director is duly appointed and qualified; and
25             (3)  the Board Committee and the members thereof are
26        qualified to act.
27    (Source: P.A. 91-357, eff. 7-29-99.)

28        (225 ILCS 450/26) (from Ch. 111, par. 5532)
29        Sec.  26.  Rules  and  regulations.  The  Board  and  the
30    Department shall adopt all necessary and reasonable rules and
31    regulations  for the effective administration and enforcement
32    of the provisions of  this  Act;  and  without  limiting  the
33    foregoing  the  Board  shall  adopt  and  prescribe rules and
 
SB1284 Enrolled            -33-                LRB9206807LDpr
 1    regulations  for  a  fair  and  wholly  impartial  method  of
 2    determining the qualifications of applicants for  examination
 3    and  for a fair and wholly impartial method of examination of
 4    persons under Section 2 and may establish rules for  subjects
 5    conditioned  and  for  the  transfer  of  credits  from other
 6    jurisdictions with respect to subjects passed. All Department
 7    university rules in effect on  the  effective  date  of  this
 8    amendatory  Act  of  the  92nd  General  Assembly  1993 shall
 9    continue in effect under the jurisdiction of the Board  until
10    changed by the Board.
11    (Source: P.A. 88-36.)

12        (225 ILCS 450/27) (from Ch. 111, par. 5533)
13        Sec. 27. A licensed certified public accountant shall not
14    be  required  by any court to divulge information or evidence
15    which has been obtained by him in his  confidential  capacity
16    as  a public accountant.  This Section shall not apply to any
17    investigation or hearing undertaken pursuant to this Act.
18    (Source: P.A. 83-291.)

19        (225 ILCS 450/28) (from Ch. 111, par. 5534)
20        Sec.  28.  Penalties.  Each   of   the   following   acts
21    perpetrated   in   the   State  of  Illinois  is  a  Class  B
22    misdemeanor.
23        (a)  The practice of  public  accounting  insofar  as  it
24    consists  in  rendering  service  as  described in Section 8,
25    without licensure, in violation of  the  provisions  of  this
26    Act;
27        (b)  The obtaining or attempting to obtain licensure as a
28    licensed certified public accountant by fraud;
29        (c)  The  use  of the title "Certified Public Accountant"
30    or the abbreviation "C.P.A." or any similar words or  letters
31    indicating  the user is a certified public accountant, by any
32    person who has not received  a  certificate  as  a  certified
 
SB1284 Enrolled            -34-                LRB9206807LDpr
 1    public accountant from the Board;
 2        (d)  The  use  of the title "Certified Public Accountant"
 3    or the abbreviation "C.P.A." or any similar words or  letters
 4    indicating that the members are certified public accountants,
 5    by  any  partnership  unless  all  members thereof personally
 6    engaged in the practice of public accounting  in  this  State
 7    have  received  certificates  as certified public accountants
 8    from the Board, are licensed  as  licensed  certified  public
 9    accountants  by  the  Board Department, and are holders of an
10    effective unrevoked license, and the partnership is  licensed
11    as   licensed  certified  public  accountants  by  the  Board
12    Department with an effective unrevoked license;
13        (e)  The use of  the  title  "licensed  certified  public
14    accountant",  "licensed  CPA",  "Public  Accountant",  or the
15    abbreviation  "P.A."  or  any  similar   words   or   letters
16    indicating   such  person  is  a  licensed  certified  public
17    accountant,  by  any  person  not  licensed  as  a   licensed
18    certified  public  accountant  by  the  Board Department, and
19    holding an effective unrevoked license; provided  nothing  in
20    this  Act shall prohibit the use of the title "Accountant" or
21    "Bookkeeper" by any person;
22        (f)  The use of  the  title  "Licensed  Certified  Public
23    Accountants",   "Public   Accountants"  or  the  abbreviation
24    "P.A.'s" or any similar words or letters indicating that  the
25    members  are public accountants by any partnership unless all
26    members thereof personally engaged in the practice of  public
27    accounting  in  this State are licensed as licensed certified
28    public accountants by the Board Department and are holders of
29    effective unrevoked licenses, and the partnership is licensed
30    as  a  public  accounting  firm  accountants  by  the   Board
31    Department with an effective unrevoked licenses;
32        (g)  Making  false  statements  to  the  Board Department
33    regarding compliance with continuing  professional  education
34    requirements.
 
SB1284 Enrolled            -35-                LRB9206807LDpr
 1    (Source: P.A. 88-36.)

 2        (225 ILCS 450/30) (from Ch. 111, par. 5535)
 3        Sec.  30. The practice of public accounting, as described
 4    in Section 8 of this Act, by any person in violation of  this
 5    Act  is  hereby declared to be inimical to the public welfare
 6    and to be a public nuisance. An action to perpetually  enjoin
 7    from  such  unlawful  practice  any person who has been or is
 8    engaged therein may be maintained in the name of  the  people
 9    of the State of Illinois by the Attorney General of the State
10    of  Illinois,  by the State's Attorney of any county in which
11    the action is brought, by the  Board  Department  or  by  any
12    resident  citizen.  The  injunction  proceeding  shall  be in
13    addition to and  not  in  lieu  of  any  penalties  or  other
14    remedies  provided  by  this  Act.  No injunction shall issue
15    under this section against any person for  any  act  exempted
16    under Section 11 of this Act.
17        If  any  person  shall  practice  as a licensed certified
18    public accountant or hold himself out as a licensed certified
19    public accountant without being licensed under the  provision
20    of  this  Act  then any licensed certified public accountant,
21    any interested party or any person injured  thereby  may,  in
22    addition  to  the  Board  Director,  petition  for  relief as
23    provided in subsection (a) of this Section.
24        Whenever in the  opinion  of  the  Board  Department  any
25    person   violates  any  provision  of  this  Act,  the  Board
26    Department may issue a rule to show cause  why  an  order  to
27    cease and desist should not be entered against him.  The rule
28    shall  clearly set forth the grounds relied upon by the Board
29    Department and shall provide a period of 7 days from the date
30    of the rule to file an answer  to  the  satisfaction  of  the
31    Board  Department.   Failure to answer to the satisfaction of
32    the Board Department shall cause an order to cease and desist
33    to be issued forthwith.
 
SB1284 Enrolled            -36-                LRB9206807LDpr
 1    (Source: P.A. 83-291.)

 2        (225 ILCS 450/30.1) (from Ch. 111, par. 5535.1)
 3        Sec. 30.1.  No person, partnership,  or  corporation,  or
 4    other  entity  licensed  or authorized to practice under this
 5    Act or any of its employees, partners, members,  officers  or
 6    shareholders  shall  be  liable  to persons not in privity of
 7    contract with such person, partnership,  or  corporation,  or
 8    other   entity   for   civil  damages  resulting  from  acts,
 9    omissions, decisions or  other  conduct  in  connection  with
10    professional  services performed by such person, partnership,
11    or corporation, or other entity, except for:
12        (1)  such acts,  omissions,  decisions  or  conduct  that
13    constitute fraud or intentional misrepresentations, or
14        (2)  such other acts, omissions, decisions or conduct, if
15    such  person,  partnership  or  corporation  was aware that a
16    primary  intent  of  the  client  was  for  the  professional
17    services  to  benefit  or  influence  the  particular  person
18    bringing the action; provided, however, for the  purposes  of
19    this  subparagraph  (2),   if  such  person,  partnership, or
20    corporation, or other entity (i) identifies in writing to the
21    client  those  persons  who  are  intended  to  rely  on  the
22    services, and (ii) sends a copy of such  writing  or  similar
23    statement  to  those  persons  identified  in  the writing or
24    statement, then such person, partnership, or corporation,  or
25    other  entity  or  any  of  its employees, partners, members,
26    officers or shareholders may be  held  liable  only  to  such
27    persons  intended to so rely, in addition to those persons in
28    privity  of  contract  with  such  person,  partnership,   or
29    corporation, or other entity.
30    (Source: P.A. 84-1251.)

31        (225 ILCS 450/32) (from Ch. 111, par. 5537)
32        Sec.  32.   (a)  This  subsection  (a) applies only until
 
SB1284 Enrolled            -37-                LRB9206807LDpr
 1    July 1, 2004.
 2        All moneys received by  the  Department  of  Professional
 3    Regulation  under  this  Act  shall  be  deposited  into  the
 4    Registered  Certified  Public Accountants' Administration and
 5    Disciplinary Fund, which is hereby created as a special  fund
 6    in  the  State  Treasury.   The funds in the account shall be
 7    used  by  the  Department  or  the  Board,  as  appropriated,
 8    exclusively for expenses of the  Department  of  Professional
 9    Regulation,   and   the   Public   Accountants'  Registration
10    Committee, or the Board in the administration of this Act.
11        Moneys in the Registered  Certified  Public  Accountants'
12    Administration  and  Disciplinary  Fund  may  be invested and
13    reinvested, with all earnings received from  the  investments
14    to   be   deposited  into  the  Registered  Certified  Public
15    Accountants' Administration and Disciplinary Fund.
16        Moneys from the Fund may also  be  used  for  direct  and
17    allocable  indirect  costs  related to the public purposes of
18    the Department  of  Professional  Regulation  or  the  Board.
19    Moneys  in  the  Fund  may  be transferred to the Professions
20    Indirect Cost Fund as authorized by Section 2105-300  of  the
21    Department   of   Professional   Regulation   Law   (20  ILCS
22    2105/2105-300).
23        (b)  This subsection (b) applies beginning July 1, 2004.
24        All moneys received by the Board under this Act shall  be
25    deposited  into  the Registered Certified Public Accountants'
26    Administration and Disciplinary Fund, a special fund  in  the
27    State  treasury.  The moneys in the Fund shall be used by the
28    Board, as  appropriated,  exclusively  for  expenses  of  the
29    Department  of  Professional  Regulation and the Board in the
30    administration of this Act.
31        Moneys in the Registered  Certified  Public  Accountants'
32    Administration  and  Disciplinary  Fund  may  be invested and
33    reinvested, with all earnings received from  the  investments
34    to   be   deposited  into  the  Registered  Certified  Public
 
SB1284 Enrolled            -38-                LRB9206807LDpr
 1    Accountants' Administration and Disciplinary Fund.
 2    (Source: P.A. 91-239, eff. 1-1-00.)

 3        Section 99.  Effective date.  This  Section,  Section  5,
 4    and  the  changes  to  Section  32  of  the  Illinois  Public
 5    Accounting  Act  take  effect  upon  becoming law; all of the
 6    other provisions take effect July 1, 2004.

[ Top ]