State of Illinois
92^nd General Assembly
Legislation

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 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  Acts repealed.
 8        (a)  The following Acts are repealed December 31, 2003: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12        (b)  The following Acts are repealed January 1, 2004: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  Act  repealed  on  January  1,  2014.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22    following Act is repealed on January 1, 2014: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:
 
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 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)  "Department"  means  the  Department of Professional
11    Regulation.
12        (d)  "Director"  means  the  Director   of   Professional
13    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.)
 
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 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
18    11  9 examiners, as determined by Board rule, 2 at least 7 of
19    whom shall be members of the public who are not  licensed  or
20    certified  under  this  Act  or  a  similar  Act  of  another
21    jurisdiction  and  who have no connection with the accounting
22    or public accounting  profession.   The  remainder  shall  be
23    certified  public  accountants  in  this  State who have been
24    residents of this State for  at  least  5  years  immediately
25    preceding  their  appointment, except that one.  One shall be
26    either a certified public an accountant of the  grade  herein
27    described  or an attorney licensed and residing in this State
28    and one shall be a certified  public  accountant  who  is  an
29    active  or retired educator residing in this State.  The term
30    of office of each examiner shall be 3 years, except that upon
31    the enactment of this amendatory  Act  of  the  92nd  General
32    Assembly  1993,  those members currently serving on the Board
33    shall continue to serve the  duration  of  their  terms,  one
 
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 1    additional  examiner  shall  be  appointed  for a term of one
 2    year, one additional examiner for a term of 2 years, and  any
 3    2  additional  examiners for terms a term of 3 years.  As the
 4    term of each  examiner  expires,  the  appointment  shall  be
 5    filled  for  a  term  of 3 years from the date of expiration.
 6    Any Board member who has served as a member for 6 consecutive
 7    years shall not be eligible for reappointment until  2  years
 8    after the end of the term in which the sixth consecutive year
 9    of service occurred, except that members of the Board serving
10    on  the  effective date of this Section shall be eligible for
11    appointment  to  one  additional  3-year  term.   Where   the
12    expiration  of any member's term shall result in less than 11
13    members then serving on the Board, the member shall  continue
14    to  serve  until  his  or  her successor is appointed and has
15    qualified. The Governor may terminate the term of any  member
16    of the Board at any time for cause.
17        The  time  and place of holding the examinations shall be
18    determined by the Board and shall be duly advertised  by  the
19    Board.
20        The  examination  shall test the applicant's knowledge of
21    accounting, auditing, and other related subjects, if any,  as
22    the  Board  may deem advisable.  A candidate must be examined
23    in all subjects except that a candidate who has passed  in  2
24    or  more  subjects  and  who attained a minimum grade in each
25    subject failed as may be  established  by  Board  regulations
26    shall  have  the  right  to  be  re-examined in the remaining
27    subjects  at  one  or  more  of   the   next   6   succeeding
28    examinations.
29        The  Board may in certain cases waive or defer any of the
30    requirements of this Section regarding the  circumstances  in
31    which  the various Sections of the examination must be passed
32    upon a showing that, by reasons of circumstances  beyond  the
33    applicant's  control,  the  applicant  was unable to meet the
34    requirement.
 
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 1        Applicants may also be required to pass an examination on
 2    the rules of professional conduct,  as  determined  by  Board
 3    rule to be appropriate.
 4        The examinations shall be given at least twice a year.
 5        Any  application,  document or other information filed by
 6    or concerning an applicant and any examination grades  of  an
 7    applicant  shall  be  deemed  confidential  and  shall not be
 8    disclosed to anyone without the prior written  permission  of
 9    the  applicant, except that it is hereby deemed in the public
10    interest that the names and addresses only of all  applicants
11    shall   be   a  public  record  and  be  released  as  public
12    information.  Nothing herein shall  prevent  the  Board  from
13    making  public announcement of the names of persons receiving
14    certificates under this Act.
15        The Board shall adopt all necessary and reasonable  rules
16    and  regulations  for  the  effective  administration  of the
17    Sections  of  this  Act  for  which  it   is   charged   with
18    administering.   Without  limiting  the  foregoing, the Board
19    shall adopt and prescribe rules and regulations  for  a  fair
20    and   wholly   and   impartial   method  of  determining  the
21    qualifications of applicants for examination and for  a  fair
22    and  wholly  and  impartial  method of examination of persons
23    under  Section  2  and  may  establish  rules  for   subjects
24    conditioned  and  for  the  transfer  of  credits  from other
25    jurisdictions with respect to subjects passed.
26    (Source: P.A. 88-36.)

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

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

17        (225 ILCS 450/7) (from Ch. 111, par. 5508)
18        Sec.   7.   Licensure.  A  holder  of  a  certificate  as
19    certified public accountant issued by the Board shall not  be
20    entitled to practice public accounting, as defined in Section
21    8,  in  this  State  until  the person has been licensed as a
22    licensed certified public accountant by the Board  Department
23    of  Professional Regulation of this State, and has received a
24    registration card from the Department.
25        The Board Department may refuse to issue or  may  suspend
26    the  license  of any person who fails to file a return, or to
27    pay the tax, penalty or interest shown in a filed return,  or
28    to  pay  any final assessment of tax, penalty or interest, as
29    required  by  any  tax  Act  administered  by  the   Illinois
30    Department of Revenue, until such time as the requirements of
31    any such tax Act are satisfied.
32    (Source: P.A. 88-36.)
 
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 1        (225 ILCS 450/8) (from Ch. 111, par. 5509)
 2        Sec.   8.   Practicing   as   licensed  certified  public
 3    accountant. Persons, either individually,  as  members  of  a
 4    partnership or limited liability company, or as officers of a
 5    corporation,  who sign, affix or associate their names or any
 6    trade or assumed names  used  by  them  in  a  profession  or
 7    business  to  any report expressing or disclaiming an opinion
 8    on a financial statement based on an audit or examination  of
 9    that  statement,  or  expressing  assurance  on  a  financial
10    statement,  shall  be  deemed  to  be in practice as licensed
11    certified public accountants within the meaning and intent of
12    this Act.
13    (Source: P.A. 87-435; 88-36.)

14        (225 ILCS 450/9.01)
15        Sec.   9.01.  Unlicensed   practice;   violation;   civil
16    penalty.
17        (a)  Any  person  who  practices,  offers  to   practice,
18    attempts  to  practice, or holds oneself out to practice as a
19    public accountant  without  being  licensed  under  this  Act
20    shall,  in addition to any other penalty provided by law, pay
21    a civil penalty to the Board Department in an amount  not  to
22    exceed  $5,000  for  each  offense as determined by the Board
23    Department. The civil penalty shall be assessed by the  Board
24    Department  after  a  hearing  is held in accordance with the
25    provisions set forth in this Act regarding the provision of a
26    hearing for the discipline of a licensee.
27        (b)  The Board Department has the authority and power  to
28    investigate any and all unlicensed activity.
29        (c)  The civil penalty shall be paid within 60 days after
30    the  effective  date of the order imposing the civil penalty.
31    The order shall constitute a judgment and may  be  filed  and
32    execution had thereon in the same manner as any judgment from
33    any court of record.
 
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 1    (Source: P.A. 89-474, eff. 6-18-96.)

 2        (225 ILCS 450/9.02 new)
 3        Sec.  9.02.   Unauthorized use of title; violation; civil
 4    penalty.
 5        (a)  Any person who shall  assume  the  title  "certified
 6    public accountant" or use the abbreviation "CPA" or any words
 7    or  letters  to  indicate that the person using the same is a
 8    certified public accountant  without  having  been  issued  a
 9    certificate  under  the  provisions  of  this  Act  shall, in
10    addition  to  any  other penalty provided  by   law,   pay  a
11    civil  penalty to the Board in an amount not to exceed $5,000
12    for  each  offense  as  determined  by the Board.  The  civil
13    penalty  shall  be  assessed  by the Board after a hearing is
14    held in accordance with the provisions set   forth   in  this
15    Act   regarding   the  provision   of   a   hearing  for  the
16    discipline of a licensee.
17        (b)  The  Board  has   the   authority   and   power   to
18    investigate    any  and  all  alleged  improper  use  of  the
19    certified public accountant title or CPA designation.
20        (c)  The  civil  penalty  shall   be   paid   within   60
21    days after the effective date of the order imposing the civil
22    penalty.  The  order  shall constitute  a judgment and may be
23    filed and execution had thereon in the  same  manner  as  any
24    judgment from any court of record.

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

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

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

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

 3        (225 ILCS 450/14.1)
 4        Sec. 14.1.  Foreign accountants.   The  Board  Department
 5    shall  issue  a license to a holder of a foreign designation,
 6    granted in a foreign country entitling the holder thereof  to
 7    engage in the practice of public accounting, provided:
 8        (a)  The  applicant  is  the holder of a certificate from
 9    the Board issued under Section 2, 5, or 5.1 of this Act; and
10        (b)  The foreign authority that granted  the  designation
11    makes  similar  provision to allow a person who holds a valid
12    license issued by this State to obtain a foreign  authority's
13    comparable designation; and
14        (c)  The  foreign  designation  (i)  was duly issued by a
15    foreign authority  that  regulates  the  practice  of  public
16    accounting  and  the  foreign  designation has not expired or
17    been revoked or suspended; (ii) entitles the holder to  issue
18    reports  upon financial statements; and (iii) was issued upon
19    the  basis  of  educational,  examination,   and   experience
20    requirements  established by the foreign authority or by law;
21    and
22        (d)  The applicant (i) received the designation based  on
23    standards substantially equivalent to those in effect in this
24    State  at  the  time the foreign designation was granted; and
25    (ii)  completed  an  experience  requirement,   substantially
26    equivalent  to  the requirement set out in Section 14, in the
27    jurisdiction that granted  the  foreign  designation  or  has
28    completed  5  years  of  experience in the practice of public
29    accounting in this State, or  meets  equivalent  requirements
30    prescribed  by  the  Department  by rule, within the 10 years
31    immediately preceding the application.
32    (Source: P.A. 88-36.)
 
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 1        (225 ILCS 450/14.2)
 2        Sec. 14.2.  Licensure by endorsement.
 3        (a)  The Board Department shall  issue  a  license  as  a
 4    public accountant to any applicant who holds a certificate as
 5    a  certified  public  accountant  issued by the Board and who
 6    holds a valid unrevoked license or permit to  practice  as  a
 7    public accountant issued under the laws of any other state or
 8    territory  of  the United States or the District of Columbia,
 9    provided:
10             (1)  the individual applicant is determined  by  the
11        Board   Department  to  possess  personal  qualifications
12        substantially  equivalent   to   this   State's   current
13        licensing requirements;
14             (2)  at  the  time the applicant received his or her
15        current  valid  and  unrevoked  license  or  permit,  the
16        applicant    possessed    qualifications    substantially
17        equivalent to the qualifications for  licensure  then  in
18        effect in this State; or
19             (3)  the    applicant   has,   after   passing   the
20        examination upon which his or her license or other permit
21        to  practice  was  based,  not  less  than  4  years   of
22        experience  in  the  practice of public accounting within
23        the 10 years immediately before the application.
24        (b)  In determining the substantial  equivalency  of  any
25    state's  requirements  to  Illinois'  requirements, the Board
26    Department may rely on the  determinations  of  the  National
27    Qualification  Appraisal  Service of the National Association
28    of State Boards of Accountancy or  such  other  qualification
29    appraisal service as it deems appropriate.
30    (Source: P.A. 91-508, eff. 8-13-99; 91-779, eff. 6-9-00.)

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

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

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

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

 6        (225 ILCS 450/17.2) (from Ch. 111, par. 5518.2)
 7        Sec. 17.2.  Any licensed certified public accountant  who
 8    notifies  the Board Department in writing on forms prescribed
 9    by the Board Department, may elect to place his license on an
10    inactive status and shall, subject  to  rules  of  the  Board
11    Department,  be excused from payment of renewal fees until he
12    notifies the Board Department in writing  of  his  desire  to
13    resume active status.
14        Any   licensed  certified  public  accountant  requesting
15    restoration from inactive status shall be required to pay the
16    current renewal fee and shall  be  required  to  restore  his
17    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
 
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 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
 9    certificate or license and the issuance of registration cards
10    as  licensed  certified  public  accountants  of  any person,
11    partnership, limited liability company, or corporation  whose
12    certificate  or  license  has  been suspended or revoked; and
13    shall report its findings and recommendations  in  connection
14    therewith  to  the Board Director, all as provided in Section
15    20.01.
16        The  Board  Department,  upon   recommendation   of   the
17    Committee shall also have power to promulgate and amend rules
18    of professional conduct that shall apply to persons certified
19    or every person licensed under this Act.
20    (Source: P.A. 88-36.)

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

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

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

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

25        (225 ILCS 450/20.4) (from Ch. 111, par. 5525)
26        Sec.  20.4.  The  Board Department, at its expense, shall
27    provide  a  stenographer  to  take  down  the  testimony  and
28    preserve  a  record  of  all  proceedings   at   disciplinary
29    hearings.  The Board Department shall furnish a transcript of
30    that record to any person interested  in  that  hearing  upon
31    payment of the reasonable cost established by the Department.
32    (Source: P.A. 83-291.)
 
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 1        (225 ILCS 450/20.5) (from Ch. 111, par. 5526)
 2        Sec.  20.5.  Rehearing. In any disciplinary proceeding, a
 3    copy of the Board's order Committee's report shall be  served
 4    upon  the  respondent by the Department, either personally or
 5    as provided in this Act for the  service  of  the  notice  of
 6    hearing.   Within  20 days after such service, the respondent
 7    may present to the Board Department a motion in writing for a
 8    rehearing, which motion shall specify the particular  grounds
 9    therefor.  If no motion for rehearing is filed, then upon the
10    expiration of the time specified for filing such a motion, or
11    if a motion or rehearing is denied, then upon such denial the
12    determination  of the Board shall be final Director may enter
13    an order in accordance with recommendations of the  Committee
14    except  as  provided  in  Section  20.6  of this Act.  If the
15    respondent shall order from the reporting  service,  and  pay
16    for  a  transcript of the record within the time for filing a
17    motion for rehearing, the 20 day period within which  such  a
18    motion  may  be filed shall commence upon the delivery of the
19    transcript to the respondent.
20        Whenever  the  Director  is  satisfied  that  substantial
21    justice has not been done in the disciplinary proceeding, the
22    Director may order a rehearing by the Committee or designated
23    hearing officer.
24        Upon the suspension or revocation  of  a  certificate  or
25    license  the  licensee  shall be required to surrender to the
26    Board Department the certificate or  license  issued  by  the
27    Board  Department,  and upon failure or refusal so to do, the
28    Board Department may seize it.
29        The Board Department may exchange information relating to
30    proceedings  resulting   in   disciplinary   action   against
31    certificate   holders   and  licensees  with  the  regulatory
32    licensing bodies  of  other  states,  or  with  other  public
33    authorities   or   private  organizations  having  regulatory
34    interest in such matter.
 
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 1    (Source: P.A. 88-36.)

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

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

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

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

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

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

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

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

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

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