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Public Act 098-0254
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HB2726 Enrolled | LRB098 10780 MGM 41198 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Regulatory Sunset Act is amended by changing |
Section 4.24, and by adding Section 4.34 as follows:
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(5 ILCS 80/4.24)
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Sec. 4.24. Acts and Section repealed on January 1, 2014. |
The following
Acts and Section of an Act are repealed
on |
January 1, 2014:
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The Electrologist Licensing Act.
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The Illinois Certified Shorthand Reporters Act of 1984.
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The Illinois Occupational Therapy Practice Act.
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The Illinois Public Accounting Act.
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The Private Detective, Private Alarm, Private Security, |
Fingerprint Vendor, and Locksmith Act
of 2004.
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The Registered Surgical Assistant and Registered Surgical |
Technologist
Title Protection Act.
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Section 2.5 of the Illinois Plumbing License Law. |
The Veterinary Medicine and Surgery Practice Act of 2004.
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(Source: P.A. 97-1139, eff. 12-28-12.)
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(5 ILCS 80/4.34 new) |
Sec. 4.34. Act repealed on January 1, 2024. The following |
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Act is repealed on January 1, 2024: |
The Illinois Public Accounting Act.
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Section 10. The Illinois Public Accounting Act is amended |
by changing Sections 0.02, 0.03, 1, 2, 2.05, 2.1, 4, 5.2, 7, 8, |
9, 9.2, 9.3, 13, 14, 14.1, 14.2, 16, 17, 17.1, 17.2, 20.01, |
20.1, 20.2, 20.3, 20.4, 20.5, 20.6, 21, 27, 28, 30, 30.1, 30.2, |
30.3, 30.4, 30.5, 30.6, 31, and 32 and by adding Sections 8.05, |
14.4, 17.3, 20.7, 20.8, and 30.8 as follows:
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(225 ILCS 450/0.02) (from Ch. 111, par. 5500.02)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 0.02. Declaration of public policy. It is the policy |
of this State and the purpose of this Act:
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(a) To promote the dependability of information which is |
used for guidance
in financial transactions or for accounting |
for or assessing the status
or performance of commercial and |
noncommercial enterprises, whether public,
private, or |
governmental; and
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(b) To protect the public interest by requiring that |
persons engaged in
the practice of public accounting be |
qualified; that a public authority
competent to prescribe and |
assess the qualifications of public accountants
be |
established; and that
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(c) Preparing, auditing or examining financial statements |
and issuing
a report expressing or disclaiming an opinion on |
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such statements or expressing
assurance on such statements be |
reserved to persons who demonstrate their
ability and fitness |
to observe and apply the standards of the accounting
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profession; and that the use of accounting titles likely to |
confuse the
public be prohibited.
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(Source: P.A. 85-1209.)
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(225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 0.03. Definitions. As used in this Act, unless the |
context
otherwise requires:
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"Accountancy activities" means the services as set forth in |
Section 8.05 of the Act. |
"Address of record" means the designated address recorded |
by the Department in the applicant's, licensee's, or |
registrant's application file or license file maintained by the |
Department's licensure maintenance unit. It is the duty of the |
applicant, licensee, or registrant to inform the Department of |
any change of address, and those changes must be made either |
through the Department's website or by directly contacting the |
Department. |
"Certificate" means a certificate issued by the Board or |
University or similar jurisdictions specifying an individual |
has successfully passed all sections and requirements of the |
Uniform Certified Public Accountant Examination. A certificate |
issued by the Board or University or similar jurisdiction does |
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not confer the ability to use the CPA title and is not |
equivalent to a registration or license under this Act. |
"Compilation" means providing a service to be performed in |
accordance with Statements on Standards for Accounting and |
Review Services that is presented in the form of financial |
statements or information that is the representation of |
management or owners without undertaking to express any |
assurance on the statements. |
"CPA" or "C.P.A." means a certified public accountant who |
holds a license or registration issued by the Department or an |
individual authorized to use the CPA title under Section 5.2 of |
this Act. |
"CPA firm" means a sole proprietorship, a corporation, |
registered limited liability partnership, limited liability |
company, partnership, professional service corporation, or any |
other form of organization issued a license in accordance with |
this Act. |
"CPA (inactive)" means a licensed certified public |
accountant who elects to have the Department place his or her |
license on inactive status pursuant to Section 17.2 of this |
Act. |
"Financial statement" means a structured presentation of |
historical financial information, including, but not limited |
to, related notes intended to communicate an entity's economic |
resources and obligations at a point in time or the changes |
therein for a period of time in accordance with generally |
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accepted accounting principles (GAAP) or other comprehensive |
basis of accounting (OCBOA). |
"Other attestation engagements" means an engagement |
performed in accordance with the Statements on Standards for |
Attestation Engagements. |
(a) "Registered Certified Public Accountant" or |
"registered CPA" means any person who has been issued
a |
registration under this Act as a Registered Certified Public |
Accountant.
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"Report", when used with reference to financial |
statements, means an opinion, report, or other form of language |
that states or implies assurance as to the reliability of any |
financial statements and that also includes or is accompanied |
by any statement or implication that the person or firm issuing |
it has special knowledge or competence in accounting or |
auditing. Such a statement or implication of special knowledge |
or competence may arise from use by the issuer of the report of |
names or titles indicating that the person or firm is an |
accountant or auditor, or from the language of the report |
itself. "Report" includes any form of language that disclaims |
an opinion when the form of language is conventionally |
understood to imply any positive assurance as to the |
reliability of the financial statements referred to or special |
competence on the part of the person or firm issuing such |
language; it includes any other form of language that is |
conventionally understood to imply such assurance or such |
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special knowledge or competence. |
(b) "Licensed Certified Public Accountant" or "licensed |
CPA" means any person licensed
under this Act as a Licensed |
Certified Public Accountant.
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(c) "Committee" means the Public Accountant Registration |
and Licensure Committee appointed by the Secretary Director .
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(d) "Department" means the Department of Financial and |
Professional Regulation.
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(e) "Director" means the Director of Professional |
Regulation.
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(f) "License", "licensee" and "licensure" refers to the |
authorization
to practice under the provisions of this Act.
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(g) "Peer review program " means a study, appraisal, or |
review of one or
more aspects of a CPA firm's or sole |
practitioner's compliance with applicable accounting, |
auditing, and other attestation standards adopted by generally |
recognized standard-setting bodies the professional work of
a |
firm or sole practitioner in the practice of public accounting |
to determine the degree of compliance by the firm or sole |
practitioner with professional standards and practices, |
conducted by persons who hold current licenses to practice |
public accounting under the laws of this or another state and |
who are not affiliated with the firm or sole practitioner being |
reviewed .
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"Principal place of business" means the office location |
designated by the licensee from which the person directs, |
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controls, and coordinates his or her professional services. |
(h) "Review committee" means any person or persons |
conducting, reviewing,
administering, or supervising a peer |
review program.
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"Secretary" means the Secretary of the Department of |
Financial and Professional Regulation. |
(i) "University" means the University of Illinois.
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(j) "Board" means the Board of Examiners established under |
Section 2.
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(k) "Registration", "registrant", and "registered" refer |
to the authorization to hold oneself out as or use the title |
"Registered Certified Public Accountant" or "Certified Public |
Accountant", unless the context otherwise requires.
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(l) "Peer Review Administrator" means an organization |
designated by the Department that meets the requirements of |
subsection (f) of Section 16 of this Act and other rules that |
the Department may adopt.
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(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
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(225 ILCS 450/1) (from Ch. 111, par. 5501)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 1. No person shall hold himself or herself out to the |
public in this State in any manner by using the title |
"Certified Public Accountant" , "Licensed Certified Public |
Accountant", "Registered Certified Public Accountant", "Public |
Accountant", or use the abbreviation "C.P.A." , or
"CPA" , |
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"LCPA", "RCPA", "PA", or any words or letters to indicate that |
the person using the same
is a licensed CPA or registered CPA |
certified public accountant , unless he or she has been issued a |
license or registration by the Department under this Act or is |
exercising the practice privilege afforded under Section 5.2 of |
this Act.
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(Source: P.A. 95-386, eff. 1-1-08.)
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(225 ILCS 450/2) (from Ch. 111, par. 5502)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 2. Board of Examiners. The Governor shall appoint a |
Board
of
Examiners that shall determine the qualifications of |
persons applying for
certificates and shall make rules for and |
conduct examinations for determining
the qualifications.
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The Board shall consist of
11 examiners,
including 2 public
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members. The
remainder shall be
certified
public accountants in |
this State who have been residents of this State for at
least 5 |
years immediately preceding their appointment, except that one |
shall be either
a certified public accountant of the grade |
herein described or an
attorney licensed and
residing in this |
State and one shall be a certified public accountant who is an
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active or retired educator residing in this State. The term of |
office of each
examiner shall be 3 years , except that upon the |
enactment of this
amendatory Act of the 93rd General Assembly, |
those members
currently serving on the Board
shall continue to |
serve the duration of their terms, one additional examiner
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shall be appointed for a term of one year, and one additional |
examiner for a term
of 2 years . As the term of
each examiner |
expires, the appointment shall be filled for a term of 3 years
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from the date of expiration. Any Board member who has served as |
a member for 6
consecutive years shall not be eligible for |
reappointment until 2 years after
the end of the term in which |
the sixth consecutive year of service occurred,
except that |
members of the
Board serving on the effective date of this |
Section shall be eligible
for appointment to one additional |
3-year term. Where the expiration of
any member's term shall |
result in less than 11 members then serving on
the Board, the |
member shall continue to serve until his or her successor is
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appointed and has qualified. Except as otherwise provided in |
this Section, no No Board member shall serve more than 2 full |
consecutive terms. Anyone appointed to the Board shall be |
ineligible to be appointed to the Illinois Public Accountants |
Registration and Licensure Committee appointed by the |
Secretary Director .
Appointments to fill vacancies shall be |
made in the same manner as original appointments for the |
unexpired portion of the vacated term. The membership of the |
Board shall reasonably reflect representation from the |
geographic areas in this State. The members of the Board |
appointed by the Governor shall receive reasonable |
compensation for their necessary, legitimate, and authorized |
expenses in accordance with the Governor's Travel Control Board |
rules and the Travel Regulation Rules. The Governor may |
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terminate the term of any
member of the Board at any time for |
cause.
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Information regarding educational requirements, the |
application process,
the
examination, and fees shall be |
available on the Board's Internet web site as
well as in
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printed documents available from the Board's office.
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The Board shall adopt all necessary and reasonable rules |
and regulations
for the effective administration of this Act. |
Without limiting the foregoing,
the Board
shall adopt and |
prescribe rules and regulations for a fair and
impartial method |
of determining the qualifications of applicants for
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examination and for a fair and impartial method of examination |
of
persons under Section 2 and may establish rules for subjects |
conditioned and
for the transfer of credits from other |
jurisdictions with respect to subjects
passed. |
The Board shall make an annual report of its activities to |
the Governor and the Secretary Director . This report shall |
include a complete operating and financial statement covering |
its operations during the year, the number of examinations |
given, the pass/fail ratio for examinations, and any other |
information deemed appropriate. The Board shall have an audit |
of its books and accounts every 2 years by the Auditor General.
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(Source: P.A. 92-457, eff. 7-1-04; 93-629, eff. 12-23-03; |
93-683, eff. 7-2-04.)
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(225 ILCS 450/2.05)
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(Section scheduled to be repealed on January 1, 2014) |
Sec. 2.05. Public Accountant Registration and Licensure |
Committee. The Secretary Director shall appoint a Public |
Accountant Registration and Licensure Committee consisting of |
7 persons, who shall be appointed by and shall serve in an |
advisory capacity to the Secretary Director . A majority of the |
Six members must be licensed CPAs public accountants or |
Licensed Certified Public Accountants in good standing and must |
be actively engaged in the practice of public accounting in |
this State . The remaining members must include registered CPAs |
in good standing in this State and one member must be a member |
of the public who is not licensed or registered under this Act |
or a similar Act of another jurisdiction and who has no |
connection with the accounting or public accounting |
profession. Four members of the Committee shall constitute a |
quorum. A quorum is required for all Committee decisions. |
Members shall serve 4-year terms and until their successors are |
appointed and qualified. No member shall be reappointed to the |
Committee for more than 2 full consecutive terms. Appointments |
to fill vacancies shall be made in the same manner as original |
appointments for the unexpired portion of the vacated term. The |
membership of the Committee shall reasonably reflect |
representation from the geographic areas in this State.
The |
members of the Committee appointed by the Secretary Director |
shall receive reasonable compensation, as determined by the |
Department, for the necessary, legitimate, and authorized |
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expenses approved by the Department. All expenses shall be paid |
from the Registered Certified Public Accountants' |
Administration and Disciplinary Fund.
The Secretary Director |
may terminate the appointment of any member for cause.
The |
Secretary Director shall consider the advice and |
recommendations of the Committee on questions involving |
standards of professional conduct, discipline, and |
qualifications of applicants candidates and licensees under |
this Act.
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(Source: P.A. 93-683, eff. 7-2-04.)
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(225 ILCS 450/2.1) (from Ch. 111, par. 5503)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 2.1. Administrative Procedure Act. The Illinois |
Administrative Procedure
Act is hereby expressly adopted and |
incorporated herein as if all of the
provisions of that Act |
were included in this Act, except that the provision of
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subsection (d) of Section 10-65 of the Illinois Administrative |
Procedure Act
that provides that at hearings the licensee has |
the right to show compliance
with all lawful requirements for |
retention, continuation or renewal of the
license is |
specifically excluded. For the purposes of this Act the notice
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required under Section 10-25 of the Administrative Procedure |
Act is deemed
sufficient when mailed to the licensee's address |
of record last known address of a party .
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(Source: P.A. 88-45.)
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(225 ILCS 450/4) (from Ch. 111, par. 5505)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 4. Transitional language.
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(a) The provisions of this Act shall not be construed to |
invalidate any
certificates as certified public accountants |
issued by the University under
"An Act to regulate the |
profession of public accountants", approved May 15,
1903, as |
amended, or any certificates as Certified Public Accountants
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issued by the University or the Board under Section 4 of "An |
Act to regulate the
practice of public accounting and to repeal |
certain acts therein named",
approved July 22, 1943, as |
amended, which certificates shall be valid and
in force as |
though issued under the provisions of this Act. |
(b) Before July 1, 2012, persons who have received a |
Certified Public Accountant (CPA) Certificate issued by the |
Board or University of Examiners or holding similar |
certifications from other jurisdictions with equivalent |
educational requirements and examination standards may apply |
to the Department on forms supplied by the Department for and |
may be granted a registration as a registered CPA Registered |
Certified Public Accountant from the Department upon payment of |
the required fee. |
(c) Beginning with the 2006 renewal, the Department shall |
cease to issue a license as a Public Accountant. Any person |
holding a valid license as a Public Accountant prior to |
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September 30, 2006 who meets the conditions for renewal of a |
license under this Act, shall be issued a license as a licensed |
CPA Licensed Certified Public Accountant under this Act and |
shall be subject to continued regulation by the Department |
under this Act. The Department may adopt rules to implement |
this Section. |
(d) The Department shall not issue any new registrations as |
a registered CPA on or Registered Certified Public Accountant |
after July 1, 2012. After that date, any applicant for |
licensure under this Act shall apply for a license as a |
licensed CPA Licensed Certified Public Accountant and shall |
meet the requirements set forth in this Act. Any person issued |
a Certified Public Accountant certificate who has been issued a |
registration as a registered CPA Registered Certified Public |
Accountant may renew the registration under the provisions of |
this Act and that person may continue to renew or restore the |
registration during his or her lifetime, subject only to the |
renewal or restoration requirements for the registration under |
this Act. Such registration shall be subject to the |
disciplinary provisions of this Act. |
(e) (Blank). On and after October 1, 2006, no person shall |
hold himself or herself out to the public in this State in any |
manner by using the title "certified public accountant" or use |
the abbreviation "C.P.A." or "CPA" or any words or letters to |
indicate that the person using the same is a certified public |
accountant unless he or she maintains a current registration or |
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license issued by the Department or is exercising the practice |
privilege afforded under Section 5.2 of this Act. It shall be a |
violation of this Act for an individual to assume or use the |
title "certified public accountant" or use the abbreviation |
"C.P.A." or "CPA" or any words or letters to indicate that the |
person using the same is a certified public accountant in this |
State unless he or she maintains a current registration or |
license issued by the Department or is exercising the practice |
privilege afforded under Section 5.2 of this Act.
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(Source: P.A. 95-386, eff. 1-1-08; 96-945, eff. 6-25-10.)
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(225 ILCS 450/5.2)
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(Section scheduled to be repealed on January 1, 2014) |
Sec. 5.2. Substantial equivalency. |
(a) An individual whose principal place of business is not |
in this State shall have all the privileges of a person |
licensed under this Act as a licensed CPA certified public |
accountant without the need to obtain a license or registration |
from the Department or to file notice with the Department, if |
the individual: |
(1) holds a valid license as a certified public |
accountant issued by another state that the National |
Qualification Appraisal Service of the National |
Association of State Boards of Accountancy has verified to |
be in substantial equivalence with the CPA licensure |
requirements of the Uniform Accountancy Act of the American |
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Institute of Certified Public Accountants and the National |
Association of State Boards of Accountancy; or |
(2) holds a valid license as a certified public |
accountant issued by another state and obtains from the |
National Qualification Appraisal Service of the National |
Association of State Boards of Accountancy verification |
that the individual's CPA qualifications are substantially |
equivalent to the CPA licensure requirements of the Uniform |
Accountancy Act of the American Institute of Certified |
Public Accountants and the National Association of State |
Boards of Accountancy; however, any individual who has |
passed the Uniform CPA Examination and holds a valid |
license issued by any other state prior to January 1, 2012 |
shall be exempt from the education requirements of Section |
3 of this Act for the purposes of this item (2). |
(b) Notwithstanding any other provision of law, an |
individual who offers or renders professional services under |
this Section, whether in person or by mail, telephone, or |
electronic means, shall be granted practice privileges in this |
State and no notice or other submission must be provided by any |
such individual. |
(c) An individual licensee of another state who is |
exercising the privilege afforded under this Section and the |
CPA firm that employs such individual, if any, as a condition |
of the grant of this privilege, hereby simultaneously consents: |
(1) to the personal and subject matter jurisdiction and |
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disciplinary authority of the Department; |
(2) to comply with this Act and the Department's rules |
adopted under this Act; |
(3) that in the event that the license from the state |
of the individual's principal place of business is no |
longer valid, the individual shall cease offering or |
rendering accountancy activities as outlined in paragraphs |
(1) and (2) of Section 8.05 professional services in this |
State individually or on behalf of a CPA firm; and |
(4) to the appointment of the state board that issued |
the individual's or the CPA firm's license as the agent |
upon which process may be served in any action or |
proceeding by the Department against the individual. |
(d) An individual licensee who qualifies for practice |
privileges under this Section who, for any entity headquartered |
in this State, performs (i) a financial statement audit or |
other engagement in accordance with Statements on Auditing |
Standards; (ii) an examination of prospective financial |
information in accordance with Statements on Standards for |
Attestation Engagements; or (iii) an engagement in accordance |
with Public Company Accounting Oversight Board Auditing |
Standards may only do so through a CPA firm licensed under this |
Act.
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(Source: P.A. 95-386, eff. 1-1-08.)
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(225 ILCS 450/7) (from Ch. 111, par. 5508)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 7. Licensure. A holder of a
certificate or |
registration as a
certified public accountant
issued by the
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Board
or Department shall not be entitled to practice public |
accounting, as
defined in Section 8, in this
State until the |
person has been licensed as a licensed CPA certified public
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accountant by the Department.
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The Department may refuse to issue or may suspend the |
license
of any person
who fails to file a return, or to pay the |
tax, penalty or interest shown in a
filed return, or to pay any |
final assessment of tax, penalty or interest, as
required by |
any tax Act administered by the Illinois Department of Revenue,
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until such time as the requirements of any such tax Act are |
satisfied.
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(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
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(225 ILCS 450/8) (from Ch. 111, par. 5509)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 8. Practicing as a licensed CPA public accountant or
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licensed certified public accountant . Persons,
either |
individually, as
members of a partnership or limited liability |
company, or as officers of a
corporation, who sign, affix or |
associate their names or any trade or assumed
names used by |
them in a profession or business to any report expressing or
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disclaiming an opinion on a financial statement based on an |
audit or
examination of that statement, or expressing assurance |
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on a financial
statement, shall be deemed to be in practice as |
licensed CPAs and are performing accountancy activities as |
outlined in paragraph (1) of subsection (a) of Section 8.05 |
licensed public accountants or licensed certified public
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accountants within the
meaning and intent of this Act .
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(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
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(225 ILCS 450/8.05 new) |
Sec. 8.05. Accountancy activities. |
(a) Accountancy activities are services performed by a CPA, |
including: |
(1) signing, affixing, or associating the names used by |
a person or CPA firm to any report expressing an assurance |
on a financial statement or disclaiming an opinion on a |
financial statement based on an audit or examination of |
that statement or to express assurance on a financial |
statement; |
(2) other attestation engagements not otherwise |
defined in paragraph (1); or |
(3) offering to perform or performing one or more types |
of the following services involving the use of professional |
skills or competencies: accounting, management, financial |
or consulting services, compilations, internal audit, |
preparation of tax returns, furnishing advice on tax |
matters, bookkeeping, or representations of taxpayers; |
this includes the teaching of any of these areas at the |
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college or university level. |
(b) If offering or performing accountancy activities using |
the CPA title set forth in paragraphs (1), (2), and (3) of |
subsection (a) of this Section, then: |
(1) the activities identified in paragraph (1) of |
subsection (a) may only be performed by licensed CPAs; |
(2) the activities identified in paragraph (2) of |
subsection (a) may only be performed by licensed or |
registered CPAs; and |
(3) the activities identified in paragraph (3) of |
subsection (a) are not restricted to licensed or registered |
CPAs, subject to the provisions of Section 9.02 of this |
Act.
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(225 ILCS 450/9) (from Ch. 111, par. 5510)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 9. Unlicensed practice ; violation; civil penalty .
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(a) Offering, attempting, or holding oneself out to |
practice as a licensed CPA or a registered CPA in this State |
without being licensed or registered under this Act or |
qualifying for the practice privilege set forth in Section 5.2 |
of this Act is prohibited. No person shall practice in this |
State or hold himself or herself out as being able to practice |
in this State
as a licensed certified public accountant, unless |
he or she
is licensed in accordance with the provisions
of this |
Act or is exercising the practice privilege afforded under |
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Section 5.2 of this Act. Any person who is the holder of a |
license as a public accountant
heretofore issued, under any |
prior Act licensing or registering public accountants
in this |
State, valid on the effective date of this amendatory Act shall
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be deemed to be licensed under this Act shall be subject to the |
same
rights and obligations as persons originally licensed |
under this Act.
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(b) The use of the title "certified public accountant", |
"Licensed Certified Public Accountant", "Registered Certified |
Public Accountant", "public accountant", or abbreviation |
"C.P.A." or any similar terms that may be misleading to the |
public indicating that an individual or the members of a firm |
are licensed or registered CPAs is prohibited unless (1) the |
individual or members are holders of an effective unrevoked |
license or registration or qualify for the practice privilege |
under Section 5.2 of this Act and (2) the firm is licensed as a |
CPA firm by the Department and is performing accounting |
activities as outlined in Section 8.05. |
(c) In addition to any other penalty provided by law, any |
individual or person violating subsection (a) or (b) of this |
Section shall pay a civil penalty to the Department in an |
amount not to exceed $10,000 for each offense as determined by |
the Department. The civil penalty shall be assessed by the |
Department after a hearing is held in accordance with the |
provisions set forth in this Act regarding the provision of a |
hearing for the discipline of a licensee. |
|
(d) The Department has the authority and power to |
investigate any and all alleged improper use of the certified |
public accountant title or CPA designation and any unlicensed |
activity. |
(e) The civil penalty shall be paid within 60 days after |
the effective date of the order imposing the civil penalty. The |
order shall constitute a judgment and may be filed and |
execution had thereon in the same manner as any judgment from |
any court of record. |
(Source: P.A. 95-386, eff. 1-1-08.)
|
(225 ILCS 450/9.2) (from Ch. 111, par. 5510.2)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 9.2. Powers and duties of the Department.
|
(a) The Department shall exercise the powers and
duties
|
prescribed
by "The Civil Administrative Code of Illinois" for |
the administration of
licensing acts and shall exercise such |
other powers and duties invested by this
Act.
|
(b) The Secretary Director may promulgate rules consistent |
with the
provisions of
this Act for the administration and |
enforcement of the provisions of this Act for which the |
Department is responsible and for the payment
of fees connected |
therewith and may prescribe forms which shall be issued
in |
connection therewith. The rules shall include standards and |
criteria
for licensure and professional conduct and |
discipline.
|
|
(c) The Department may solicit the advice and expert |
knowledge of the Committee or the Board on any matter relating |
to the administration and enforcement of this Act.
|
The Department may, in its discretion, employ or use the |
legal services of outside counsel and the investigative |
services of outside personnel to assist the Department, and the |
Department is authorized to pay for such services from the |
Registered Certified Public Accountants' Administration and |
Disciplinary Fund. |
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/9.3)
|
(Section scheduled to be repealed on January 1, 2014) |
Sec. 9.3. Sharing of information. Notwithstanding any |
other provision of this Act, for the purpose of carrying out |
their respective duties and responsibilities under this Act and |
to effectuate the purpose of this Act, both the Board of |
Examiners and the Department of Financial and Professional |
Regulation are authorized and directed to share information |
with each other regarding those individuals and entities |
licensed or certified or applying for licensure or |
certification under this Act.
|
(Source: P.A. 94-779, eff. 5-19-06.)
|
(225 ILCS 450/13) (from Ch. 111, par. 5514)
|
(Section scheduled to be repealed on January 1, 2014)
|
|
Sec. 13. Application for licensure.
|
(a) A person or CPA firm that wishes to perform accountancy |
activities , partnership, limited liability
company, or |
corporation desiring to practice public accounting in this |
State , as defined in paragraph (1) of subsection (a) of Section |
8.05 of this Act, or use the CPA title
shall make application |
to the Department for licensure as a
licensed certified public |
accountant
and shall pay the fee required by rule.
|
Applicants have 3 years from the date of application to |
complete the
application process. If the process has not been |
completed in 3 years,
the application shall be denied, the fee |
forfeited and the applicant must
reapply and meet the |
requirements in effect at the time of reapplication.
|
(b) Any CPA firm , whether organized as a partnership, |
limited liability company, corporation, or other entity, that |
(i) has an office in this State that uses the title "CPA" or |
"CPA firm"; (ii) has an office in this State that performs |
accountancy activities public accounting services , as defined |
in paragraph (1) of subsection (a) of Section 8.05 8 of this |
Act; or (iii) does not have an office in this State, but |
performs attest services, as set forth in subsection (d) of |
Section 5.2 of this Act, for a client that is headquartered has |
its home office in this State must hold a license as a CPA firm |
issued under this Act. |
(c) A CPA firm that does not have an office in this State |
may perform a review of a financial statement in accordance |
|
with the Statements on Standards for Accounting and Review |
Services for a client with its headquarters home office in this |
State and may use the title "CPA" or "CPA firm" without |
obtaining a license as a CPA firm under this Act, only if the |
firm (i) performs such services through individuals with |
practice privileges under Section 5.2 of this Act; (ii) |
satisfies any peer review requirements in those states in which |
the individuals with practice privileges under Section 5.2 have |
their principal place of business; and (iii) meets the |
qualifications set forth in paragraph (1) of Section 14.4 item |
(2) of subsection (b) of Section 14 of this Act. |
(d) A CPA firm that is not subject to the requirements of |
subsection (b) or (c) of this Section may perform professional |
services that are not regulated under subsection (b) or (c) of |
this Section while using the title "CPA" or "CPA firm" in this |
State without obtaining a license as a CPA firm under this Act |
if the firm (i) performs such services through individuals with |
practice privileges under Section 5.2 of this Act and (ii) may |
lawfully perform such services in the state where those |
individuals with practice privileges under Section 5.2 of this |
Act have their principal place of business. |
(Source: P.A. 95-386, eff. 1-1-08.)
|
(225 ILCS 450/14) (from Ch. 111, par. 5515)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 14. Qualifications for licensure as a licensed CPA . |
|
The Department may
license as licensed CPAs individuals meeting |
the following requirements
licensed certified public |
accountants the following :
|
(a) All persons who have received certificates as certified |
public accountants from the Board or who hereafter received |
receive registrations as registered CPAs certified public |
accountants from the Department who have had at least one year
|
of full-time experience, or its equivalent, providing any type
|
of service or advice involving
the use of accounting, audit |
attest , management advisory, financial advisory, tax, or
|
consulting skills, or other attestation engagements which may |
be gained through employment in government,
industry, |
academia, or public practice.
|
(a-5) If the applicant's certificate as a certified public |
accountant from the Board or the applicant's registration as a |
registered CPA certified public accountant from the Department |
was issued more than 4 years prior to the
application for a |
license as a licensed CPA under this Section, the applicant |
shall
submit any evidence the Department may require showing |
the
applicant has
completed not less than 90 hours of |
continuing professional education
acceptable to the Department
|
within the 3 years immediately
preceding the date
of |
application.
|
(b) (Blank). All partnerships, limited liability |
companies, or corporations, or
other entities engaged in the |
practice of public accounting in this State and
meeting the |
|
following requirements:
|
(1) (Blank).
|
(2) A majority of the ownership of the firm, in terms |
of
financial interests and voting rights of all partners,
|
officers, shareholders, members, or managers, belongs to
|
persons licensed in some state, and the partners, officers,
|
shareholders, members, or managers whose principal place |
of
business is in this State and who practice public |
accounting
in this State, as defined in Section 8 of this |
Act, hold a
valid license issued by this State. An |
individual exercising the practice privilege afforded |
under Section 5.2 who performs services for which a firm |
license is required under subsection (d) of Section 5.2 |
shall not be required to obtain an individual license under |
this Act.
|
(3) It shall be lawful for a nonprofit cooperative |
association engaged
in rendering an auditing and |
accounting service to its members only, to
continue to |
render that service provided that the rendering of auditing |
and
accounting service by the cooperative association |
shall at all times be under
the control and supervision of |
licensed certified public accountants.
|
(4) The Department may adopt rules and regulations as
|
necessary to provide
for the practice of public accounting |
by business entities that may be
otherwise authorized by |
law to conduct business in Illinois.
|
|
(Source: P.A. 95-386, eff. 1-1-08.)
|
(225 ILCS 450/14.1)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 14.1. Foreign accountants. The Department may shall |
issue a
license as a licensed CPA to a
holder of a foreign |
designation, granted in a foreign country entitling the
holder |
thereof to engage in the practice of public accounting , |
provided that:
|
(a) the applicant is the holder of a certificate as a |
certified public accountant from the Board or a |
registration as a registered CPA certified public |
accountant from the Department
issued under
this Act;
|
(b) (Blank) the foreign authority that granted the |
designation makes similar
provision to allow a person who |
holds a valid license issued by this State to
obtain a |
foreign authority's comparable designation ;
|
(c) the foreign designation (i) was duly issued by a |
foreign authority that
regulates the practice of public |
accounting and the foreign designation has not
expired or |
been revoked or suspended; (ii) entitles the holder to |
issue reports
upon financial statements; and (iii) was |
issued upon the basis of educational,
examination, and |
experience requirements established by the foreign |
authority
or by law; and
|
(d) the applicant (i) received the designation based on |
|
standards
substantially equivalent to those in effect in |
this State at the time the
foreign designation was granted; |
and (ii) completed an experience requirement,
|
substantially equivalent to the requirement set out in |
Section 14, in the
jurisdiction that granted the foreign |
designation or has completed 5 years of
experience in the |
practice of public accounting in this State, or meets
|
equivalent requirements prescribed by the Department by |
rule,
within the 10
years immediately preceding the |
application.
|
Applicants have 3 years from the date of application to |
complete the application process. If the process has not been |
completed in 3 years, the application shall be denied, the fee |
shall be forfeited, and the applicant must reapply and meet the |
requirements in effect at the time of reapplication.
|
(Source: P.A. 95-331, eff. 8-21-07.)
|
(225 ILCS 450/14.2)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 14.2. Licensure by endorsement.
|
(a) The Department shall issue a
license as a licensed CPA |
certified public accountant to any applicant
who holds a |
current, valid, and unrevoked license certificate as a |
certified public accountant issued from another state by the
|
Board of Examiners or similar certification from another |
jurisdiction with equivalent educational requirements and |
|
examination standards, applies to the Department on forms |
supplied by the Department, and pays the required fee,
|
provided:
|
(1) the individual applicant is determined by the |
Department
to possess
qualifications substantially |
equivalent to this State's current
licensing requirements;
|
(2) at the time the applicant received his or her |
current valid and
unrevoked license or permit , the |
applicant possessed qualifications
substantially |
equivalent to the qualifications for licensure then in |
effect in
this State; or
|
(3) the applicant has, after passing the examination |
upon which his or her
license or other permit to practice |
was based, not less than 4 years of
experience as outlined |
in Section 14 of this Act in the practice of public |
accounting within the 10 years immediately
before the |
application.
|
(b) In determining the substantial equivalency of any
|
state's requirements to Illinois' requirements, the
Department |
may rely on the determinations of the National
Qualification |
Appraisal Service of the National Association
of State Boards |
of Accountancy or such other qualification
appraisal service as |
it deems appropriate.
|
(c) Applicants have 3 years from the date of application to |
complete the application process. If the process has not been |
completed in 3 years, the application shall be denied, the fee |
|
shall be forfeited, and the applicant must reapply and meet the |
requirements in effect at the time of reapplication.
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/14.4 new) |
Sec. 14.4. Qualifications for licensure as a CPA firm. The |
Department may license as licensed CPA firms individuals or |
entities meeting the following requirements: |
(1) A majority of the ownership of the firm, in terms |
of financial interests and voting rights of all partners, |
officers, shareholders, members, or belongs to persons |
licensed or registered in some state. All partners, |
officers, shareholders, or members, whose principal place |
of business is in this State and who have overall |
responsibility for accountancy activities in this State, |
as defined in paragraph (1) of subsection (a) of Section |
8.05 of this Act, must hold a valid license as a licensed |
CPA issued by this State. An individual exercising the |
practice privilege afforded under Section 5.2 who performs |
services for which a firm license is required under |
subsection (d) of Section 5.2 shall not be required to |
obtain an individual license under this Act. |
(2) All owners of the CPA firm, whether licensed as a |
licensed CPA or not, shall be active participants in the |
CPA firm or its affiliated entities and shall comply with |
the rules adopted under this Act. |
|
(3) It shall be lawful for a nonprofit cooperative |
association engaged in rendering an auditing and |
accounting service to its members only to continue to |
render that service provided that the rendering of auditing |
and accounting service by the cooperative association |
shall at all times be under the control and supervision of |
licensed CPAs. |
(4) An individual who supervises services for which a |
license is required under paragraph (1) of subsection (a) |
of Section 8.05 of this Act, who signs or authorizes |
another to sign any report for which a license is required |
under paragraph (1) of subsection (a) of Section 8.05 of |
this Act, or who supervises services for which a CPA firm |
license is required under subsection (d) of Section 5.2 of |
this Act shall hold a valid, active licensed CPA license |
from this State or another state considered to be |
substantially equivalent under paragraph (1) of subsection |
(a) of Section 5.2. |
(5) The CPA firm shall designate to the Department in |
writing an individual licensed as a licensed CPA under this |
Act or, in the case of a firm that must have a CPA firm |
license pursuant to subsection (b) of Section 13 of this |
Act, a licensee of another state who meets the requirements |
set out in paragraph (1) or (2) of subsection (a) of |
Section 5.2 of this Act, who shall be responsible for the |
proper licensure of the CPA firm.
|
|
(225 ILCS 450/16) (from Ch. 111, par. 5517)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 16. Expiration and renewal of licenses; renewal of |
registration;
continuing education. |
(a) The expiration date and renewal period for each license |
or registration
issued under this Act shall be set by rule.
|
(b) Every holder of a license or registration under this |
Act may renew such license or registration before the |
expiration date upon payment of the required renewal fee as set |
by rule.
|
(c) Every application for renewal of a license by a |
licensed CPA certified public accountant who has been licensed |
under this Act for 3 years or more shall be accompanied or |
supported by any evidence the Department shall prescribe, in |
satisfaction of completing, each 3 years, not less than 120 |
hours of continuing professional education as prescribed by |
Department rules programs in subjects given by continuing |
education sponsors registered by the Department upon |
recommendation of the Committee . Of the 120 hours, not less |
than 4 hours shall be courses covering the subject of |
professional ethics. All continuing education sponsors |
applying to the Department for registration shall be required |
to submit an initial nonrefundable application fee set by |
Department rule. Each registered continuing education sponsor |
shall be required to pay an annual renewal fee set by |
|
Department rule. Publicly supported colleges, universities, |
and governmental agencies located in Illinois are exempt from |
payment of any fees required for continuing education sponsor |
registration. Failure by a continuing education sponsor to be |
licensed or pay the fees prescribed in this Act, or to comply |
with the rules and regulations established by the Department |
under this Section regarding requirements for continuing |
education courses or sponsors, shall constitute grounds for |
revocation or denial of renewal of the sponsor's registration. |
(d) Licensed CPAs Certified Public Accountants are exempt |
from the continuing professional education requirement for the |
first renewal period following the original issuance of the |
license. |
Notwithstanding the provisions of subsection (c), the |
Department may accept courses and sponsors approved by other |
states, by the American Institute of Certified Public |
Accountants, by other state CPA societies, or by national |
accrediting organizations such as the National Association of |
State Boards of Accountancy. |
Failure by an applicant for renewal of a license as a |
licensed CPA certified public accountant to furnish the |
evidence shall constitute grounds for disciplinary action, |
unless the Department in its discretion shall determine the |
failure to have been due to reasonable cause. The Department, |
in its discretion, may renew a license despite failure to |
furnish evidence of satisfaction of requirements of continuing |
|
education upon condition that the applicant follow a particular |
program or schedule of continuing education. In issuing rules |
and individual orders in respect of requirements of continuing |
education, the Department in its discretion may, among other |
things, use and rely upon guidelines and pronouncements of |
recognized educational and professional associations; may |
prescribe rules for the content, duration, and organization of |
courses; shall take into account the accessibility to |
applicants of such continuing education as it may require, and |
any impediments to interstate practice of public accounting |
that may result from differences in requirements in other |
states; and may provide for relaxation or suspension of |
requirements in regard to applicants who certify that they do |
not intend to engage in the performance of accountancy |
activities practice of public accounting , and for instances of |
individual hardship. |
The Department shall establish by rule a means for the |
verification of completion of the continuing education |
required by this Section. This verification may be accomplished |
through audits of records maintained by licensees; by requiring |
the filing of continuing education certificates with the |
Department; or by other means established by the Department. |
The Department may establish, by rule, guidelines for |
acceptance of continuing education on behalf of licensed CPAs |
certified public accountants taking continuing education |
courses in other jurisdictions.
|
|
(e) For renewals on and after July 1, 2012, as a condition |
for granting a renewal license to CPA firms and sole |
practitioners who perform accountancy activities outlined in |
paragraph (1) of subsection (a) of Section 8.05 provide |
services requiring a license under this Act, the Department |
shall require that the CPA firm or sole practitioner |
satisfactorily complete a peer review during the immediately |
preceding 3-year period, accepted by a Peer Review |
Administrator in accordance with established standards for |
performing and reporting on peer reviews, unless the CPA firm |
or sole practitioner is exempted under the provisions of |
subsection (i) of this Section. A CPA firm or sole practitioner |
shall, at the request of the Department, submit to the |
Department a letter from the Peer Review Administrator stating |
the date on which the peer review was satisfactorily completed. |
A new CPA firm or sole practitioner not subject to |
subsection (l) of this Section shall not be required to comply |
with the peer review requirements for the first license |
renewal. A CPA firm or sole practitioner shall undergo its |
first peer review during the first full renewal cycle after it |
is granted its initial license.
|
The requirements of this subsection (e) shall not apply to |
any person providing services requiring a license under this |
Act to the extent that such services are provided in the |
capacity of an employee of the Office of the Auditor General or |
to a nonprofit cooperative association engaged in the rendering |
|
of licensed service to its members only under paragraph (3) of |
Section 14.4 subsection (b) of Section 14 of this Act or any of |
its employees to the extent that such services are provided in |
the capacity of an employee of the association. |
(f) The Department shall approve only Peer Review |
Administrators that the Department finds comply with |
established standards for performing and reporting on peer |
reviews. The Department may adopt rules establishing |
guidelines for peer reviews, which shall do all of the |
following:
|
(1) Require that a peer review be conducted by a |
reviewer that is independent of the CPA firm reviewed and |
approved by the Peer Review Administrator under |
established standards. |
(2) Other than in the peer review process, prohibit the |
use or public disclosure of information obtained by the |
reviewer, the Peer Review Administrator, or the Department |
during or in connection with the peer review process. The |
requirement that information not be publicly disclosed |
shall not apply to a hearing before the Department that the |
CPA firm or sole practitioner requests be public or to the |
information described in paragraph (3) of subsection (i) of |
this Section. |
(g) If a CPA firm or sole practitioner fails to |
satisfactorily complete a peer review as required by subsection |
(e) of this Section or does not comply with any remedial |
|
actions determined necessary by the Peer Review Administrator, |
the Peer Review Administrator shall notify the Department of |
the failure and shall submit a record with specific references |
to the rule, statutory provision, professional standards, or |
other applicable authority upon which the Peer Review |
Administrator made its determination and the specific actions |
taken or failed to be taken by the licensee that in the opinion |
of the Peer Review Administrator constitutes a failure to |
comply. The Department may at its discretion or shall upon |
submission of a written application by the CPA firm or sole |
practitioner hold a hearing under Section 20.1 of this Act to |
determine whether the CPA firm or sole practitioner has |
complied with subsection (e) of this Section. The hearing shall |
be confidential and shall not be open to the public unless |
requested by the CPA firm or sole practitioner. |
(h) The CPA firm or sole practitioner reviewed shall pay |
for any peer review performed. The Peer Review Administrator |
may charge a fee to each firm and sole practitioner sufficient |
to cover costs of administering the peer review program. |
(i) A CPA firm or sole practitioner shall not be required |
to comply with the peer review requirements be exempt from the |
requirement to undergo a peer review if: |
(1) Within 3 years before the date of application for |
renewal licensure, the sole practitioner or CPA firm has |
undergone a peer review conducted in another state or |
foreign jurisdiction that meets the requirements of |
|
paragraphs (1) and (2) of subsection (f) of this Section. |
The sole practitioner or CPA firm shall , at the request of |
the Department, submit to the Department a letter from the |
organization administering the most recent peer review |
stating the date on which the peer review was completed; or |
(2) Within 2 years before the date of application for |
renewal licensure, the The sole practitioner or CPA firm |
satisfies all of the following conditions: |
(A) has not accepted or performed any accountancy |
activities outlined in paragraph (1) of subsection (a) |
of Section 8.05 of this Act; and during the preceding 2 |
years, the firm or sole practitioner has not accepted |
or performed any services requiring a license under |
this Act; |
(B) the firm or sole practitioner agrees to notify |
the Peer Review Administrator Department within 30 |
days of accepting an engagement for services requiring |
a license under this Act and to undergo a peer review |
within 18 months after the end of the period covered by |
the engagement; or |
(3) For reasons of personal health, military service, |
or other good cause, the Department determines that the |
sole practitioner or firm is entitled to an exemption, |
which may be granted for a period of time not to exceed 12 |
months. |
(j) If a peer review report indicates that a CPA firm or |
|
sole practitioner complies with the appropriate professional |
standards and practices set forth in the rules of the |
Department and no further remedial action is required, the Peer |
Review Administrator shall, after issuance of the final letter |
of acceptance, destroy all working papers and documents related |
to the peer review, other than report-related documents and |
documents evidencing completion of remedial actions, if any, in |
accordance with rules established by the Department. |
(k) (Blank). |
(Source: P.A. 96-945, eff. 6-25-10.)
|
(225 ILCS 450/17) (from Ch. 111, par. 5518)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 17. Fees; returned checks; fines. The fees for the |
administration and enforcement of this Act, including, but not |
limited to, original licensure, registration, renewal, and |
restoration fees, shall be set by the Department by rule. The |
fees shall be nonrefundable. Each person, partnership, limited
|
liability company, and corporation, to which a license or |
registration is issued, shall pay
a fee to be established by |
the Department which allows the Department to pay all
costs and |
expenses incident to the administration of this Act. Interim
|
licenses shall be at full rates.
|
The Department, by rule, shall establish fees to be paid |
for certification
of records, and copies of this Act and the |
rules issued for administration
of this Act.
|
|
Any person who delivers a check or other payment to the |
Department that is
returned to the Department
unpaid by the |
financial institution upon which it is
drawn shall pay to the |
Department, in addition to the amount already owed to the
|
Department, a fine of $50.
The fines imposed by this Section |
are in addition to any other discipline
provided under this Act |
for unlicensed practice or practice on a nonrenewed
license or |
registration. The Department shall notify the person that |
payment of fees and fines
shall be paid to the Department by |
certified check or money order within 30 calendar
days of the |
notification. If, after the expiration of 30 days from the date
|
of the notification, the person has failed to submit the |
necessary remittance,
the Department
shall automatically |
terminate the license or registration or deny the
application, |
without hearing. If, after termination or denial, the person
|
seeks a license or registration, he or she shall apply to the |
Department for
restoration or issuance of the license or |
registration and pay all fees and
fines due to the Department. |
The Department may establish
a fee for the processing of an |
application for restoration of a license or
registration to pay |
all expenses of processing this application. The Department
may |
waive the fines due under this Section in individual cases |
where the
Department
finds that the fines would be unreasonable |
or unnecessarily burdensome.
|
(Source: P.A. 92-146, eff. 1-1-02; 92-457, eff. 7-1-04; 92-651, |
eff. 7-11-02; 93-683, eff. 7-2-04.)
|
|
(225 ILCS 450/17.1) (from Ch. 111, par. 5518.1)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 17.1. Restoration. |
(a) Any registered CPA certified public accountant who has |
permitted his or her registration to expire or who has had his |
or her registration on inactive status may have his or her |
registration restored by making application to the Department |
and filing proof acceptable to the Department as defined by |
rule of his or her fitness to have his or her registration |
restored, which may include sworn evidence certifying to active |
practice in another jurisdiction satisfactory to the |
Department and by paying the required restoration fee.
|
(b) Any licensed CPA certified public accountant who has |
permitted
his or her license to expire
or who has had his or |
her license on inactive status may have his or her license |
restored
by making application to the Department and filing |
proof
acceptable to the
Department as defined by rule of his or |
her fitness to have his or her license restored, including
|
sworn
evidence certifying to active practice in another |
jurisdiction satisfactory
to the Department and by paying the |
required restoration fee
and by submitting proof of the
|
required continuing education.
|
(c) If the licensed CPA certified public accountant or |
registered CPA certified public accountant has not maintained |
an active
practice in another
jurisdiction satisfactory to the |
|
Department, the Department shall determine,
by an evaluation |
program established by rule, fitness to resume active status
|
and may require the applicant to complete a period of |
supervised
experience.
|
Any licensed CPA However, any licensed certified public |
accountant or registered CPA certified public accountant whose |
license or registration expired
while he or she was (1) in
|
Federal Service on active duty with the Armed Forces of the |
United States,
or the State Militia called into service or |
training, or (2) in training
or education under the supervision |
of the United States preliminary to
induction
into the military |
service, may have his or her license or registration renewed |
reinstated or restored
without
paying any lapsed renewal and |
restoration fees if within 2 years after
honorable termination
|
of such service, training or education except under conditions |
other than
honorable, he or she furnished
the Department with |
satisfactory evidence to the effect that he or she
has been
so |
engaged and that his or her service, training , or education has |
been so terminated.
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/17.2) (from Ch. 111, par. 5518.2)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 17.2. Inactive status. |
(a) Any licensed or registered CPA with an active, |
unencumbered license or registration licensed certified public |
|
accountant or Registered Certified Public Accountant who |
notifies the
Department in writing
on forms prescribed by the |
Department, may elect to place his or her
license or |
registration on
an inactive status and shall, subject to rules |
of the Department,
be excused
from payment of renewal fees and |
completion of continuing education hours until he or she |
notifies the Department in
writing
of his or her desire to |
resume active status.
|
(b) Any licensed CPA licensed certified public accountant |
requesting restoration from
inactive status shall
be required |
to pay the current renewal fee, shall be required to submit
|
proof of the required continuing education,
and shall be |
required to comply with any requirements established by rule |
restore
his license, as provided in this Act .
|
(c) Any registered CPA Registered Certified Public |
Accountant requesting restoration from inactive status shall |
be required to pay the current renewal fee and shall be |
required to comply with any requirements established by rule.
|
(d) Any licensed CPA or registered CPA licensed certified |
public accountant whose license is in an inactive
status shall |
not perform accountancy activities outlined in Section 8.05 of |
this Act
practice public accounting in this State of Illinois .
|
(e) Any licensed CPA or registered CPA Registered Certified |
Public Accountant whose license or registration is in an |
inactive status shall not in any manner hold himself or herself |
out to the public as a CPA, except in accordance with |
|
subsection (f) of this Section C.P.A. or R.C.P.A .
|
(f) Any licensed CPA whose license is in inactive status |
may use the title "CPA (inactive)" if: |
(1) he or she is not performing accountancy activities |
outlined in Section 8.05; or |
(2) he or she is performing governance functions on a |
non-profit volunteer board using his or her accountancy |
skills and competencies and complies with the following |
requirements: |
(A) he or she discloses to the non-profit volunteer |
board and respective committees that his or her license |
is on inactive status; and |
(B) he or she is not serving as an audit committee |
financial expert as defined in Section 407 of the |
federal Sarbanes-Oxley Act of 2002. |
The Department may, in its discretion, license as a |
licensed
certified public accountant,
on payment of the |
required fee, an applicant who is a licensed certified
public |
accountant
licensed under the laws of another jurisdiction if |
the requirements for
licensure of licensed certified public |
accountants in the jurisdiction in
which the applicant
was |
licensed were, at the date of his licensure, substantially |
equivalent
to the requirements in force in this State on that |
date.
|
Applicants have 3 years from the date of application to |
complete the
application process. If the process has not been |
|
completed in 3 years,
the application shall be denied, the fee |
forfeited and the applicant must
reapply and meet the |
requirements in effect at the time of reapplication.
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/17.3 new) |
Sec. 17.3. Restoration of license from discipline. At any |
time after the successful completion of a term of indefinite |
probation, suspension, or revocation of a license or |
registration, the Department may restore the license or |
registration to active status, unless, after an investigation |
and a hearing, the Secretary determines that restoration is not |
in the public interest. No person or entity whose license, |
certificate, or authority has been revoked as authorized in |
this Act may apply for restoration of that license, |
certification, or authority until such time as provided for in |
the Civil Administrative Code of Illinois.
|
(225 ILCS 450/20.01) (from Ch. 111, par. 5521.01)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 20.01. Grounds for discipline; license or |
registration.
|
(a) The Department may refuse to issue or renew, or may |
revoke, suspend, or
reprimand any registration or registrant,
|
any license or licensee, place a licensee or registrant on |
probation for a period
of time subject to any conditions the |
|
Department may specify including requiring
the licensee or |
registrant to attend continuing education courses or to work |
under the
supervision of another licensee or registrant, impose |
a fine not to exceed $10,000 $5,000 for each
violation, |
restrict the authorized scope of practice, or require a |
licensee
or registrant to undergo a peer review program, assess |
costs as provided for under Section 20.4, or take other |
disciplinary or non-disciplinary action for any one or more of |
the following:
|
(1) Violation of any provision of this Act or rule |
adopted by the Department under this Act or violation of |
professional standards .
|
(2) Dishonesty, fraud, or deceit in obtaining, |
reinstating, or restoring a license or registration |
Attempting to procure a license or registration to practice |
under this Act by
bribery or fraudulent |
misrepresentations .
|
(3) Cancellation, revocation, suspension, denial of |
licensure or registration, or refusal to renew a license or |
privileges under Section 5.2 for disciplinary reasons in |
any other U.S. jurisdiction, unit of government, or |
government agency for any cause Having a license to |
practice public accounting or registration revoked, |
suspended,
or otherwise acted against, including the |
denial of licensure or registration, by the licensing or |
registering
authority of another state, territory, or |
|
country, including but not limited to the District of |
Columbia, or any United States
territory. No disciplinary |
action shall be taken in Illinois if the action
taken in |
another jurisdiction was based upon failure to meet the |
continuing
professional education requirements of that |
jurisdiction and the applicable
Illinois continuing |
professional education requirements are met .
|
(4) Failure, on the part of a licensee under Section 13 |
or registrant under Section 16, to maintain compliance with |
the requirements for issuance or renewal of a license or |
registration or to report changes to the Department Being |
convicted or found guilty, regardless of adjudication, of a
|
crime in any jurisdiction which directly relates to the |
practice of public
accounting or the ability to practice |
public accounting or as a Registered Certified Public |
Accountant .
|
(5) Revocation or suspension of the right to practice |
by or before any state or federal regulatory authority or |
by the Public Company Accounting Oversight Board Making or |
filing a report or record which the registrant or licensee |
knows to
be false, willfully failing to file a report or |
record required by state
or federal law, willfully impeding |
or obstructing the filing, or inducing
another person to |
impede or obstruct the filing. The reports or records shall
|
include only those that are signed in the capacity of a |
licensed certified
public accountant or a registered |
|
certified public accountant .
|
(6) Dishonesty, fraud, deceit, or gross negligence in |
the performance of services as a licensee or registrant or |
individual granted privileges under Section 5.2 Conviction |
in this or another State or the District of Columbia, or
|
any United States Territory, of any crime that is |
punishable by one year or
more in prison or conviction of a |
crime in a federal court that is punishable
by one year or |
more in prison .
|
(7) Conviction by plea of guilty or nolo contendere, |
finding of guilt, jury verdict, or entry of judgment or |
sentencing, including, but not limited to, convictions, |
preceding sentences of supervision, conditional discharge, |
or first offender probation, under the laws of any |
jurisdiction of the United States that is (i) a felony or |
(ii) a misdemeanor, an essential element of which is |
dishonesty, or that is directly related to the practice of |
public accounting Proof that the licensee or registrant is |
guilty of fraud or deceit, or of gross
negligence, |
incompetency, or misconduct, in the practice of public
|
accounting .
|
(8) Performance of any fraudulent act while holding a |
license or privilege issued under this Act or prior law |
Violation of any rule adopted under this Act .
|
(9) Practicing on a revoked, suspended, or inactive |
license or registration.
|
|
(10) Making or filing a report or record that the |
registrant or licensee knows to be false, willfully failing |
to file a report or record required by State or federal |
law, willfully impeding or obstructing the filing or |
inducing another person to impede or obstruct only those |
that are signed in the capacity of a licensed CPA or a |
registered CPA Suspension or revocation of the right to |
practice before any
state or federal agency .
|
(11) Conviction of any crime under the laws of the |
United States or any
state or territory of the United |
States that is a felony or misdemeanor and
has dishonesty |
as an essential element, or of any crime that is directly
|
related to the practice of the profession.
|
(12) Making any misrepresentation for the purpose of |
obtaining a license,
or registration or material |
misstatement in furnishing information to the Department.
|
(11) (13) Aiding or assisting another person in |
violating any provision of
this Act or rules promulgated |
hereunder.
|
(12) (14) Engaging in dishonorable, unethical, or |
unprofessional conduct of a
character likely to deceive, |
defraud, or harm the public.
|
(13) (15) Habitual or excessive use or abuse of drugs, |
addiction to alcohol, narcotics,
stimulants, or any other |
substance chemical agent or drug that results in the |
inability
to practice with reasonable skill, judgment, or |
|
safety.
|
(14) (16) Directly or indirectly giving to or receiving |
from any person, firm,
corporation, partnership, or |
association any fee, commission, rebate, or other
form of |
compensation for any professional service not actually |
rendered.
|
(15) (17) Physical illness or mental disability , |
including , but not limited to, deterioration through the
|
aging process or loss of motor skill abilities and skills |
that results in the licensee or registrant's inability to
|
practice under this Act the profession with reasonable |
judgment, skill , or safety.
|
(16) (18) Solicitation of professional services by |
using false or misleading
advertising.
|
(17) Any conduct reflecting adversely upon the |
licensee's fitness to perform services while a licensee or |
individual granted privileges under Section 5.2 (19) |
Failure to file a return, or pay the tax, penalty or |
interest shown
in a filed return, or to pay any final |
assessment of tax, penalty or interest,
as required by any |
tax Act administered by the Illinois Department of Revenue
|
or any successor agency or the Internal Revenue Service or |
any successor
agency .
|
(18) (20) Practicing or attempting to practice under a |
name other than the
full name as shown on the license or |
registration or any other legally authorized name.
|
|
(19) (21) A finding by the Department that a licensee |
or registrant has not complied with a
provision of any |
lawful order issued by the Department.
|
(20) (22) Making a false statement to the Department
|
regarding compliance with
continuing professional |
education or peer review requirements.
|
(21) (23) Failing to make a substantive response to a |
request for information
by the Department within 30 days of |
the request.
|
(b) (Blank).
|
(b-5) All fines or costs imposed under this Section shall |
be paid within 60 days after the effective date of the order |
imposing the fine or costs or in accordance with the terms set |
forth in the order imposing the fine or cost. |
(c) In cases where the Department of Healthcare and Family |
Services has previously determined a licensee or a potential |
licensee is more than 30 days delinquent in the payment of |
child support and has subsequently certified the delinquency to |
the Department, the Department may refuse to issue or renew or |
may revoke or suspend that person's license or may take other |
disciplinary or non-disciplinary action against that person |
based solely upon the certification of delinquency made by the |
Department of Healthcare and Family Services in accordance with |
item (5) of subsection (a) of Section 2105-15 of the Department |
of Professional Regulation Law of the Civil Administrative Code |
of Illinois. In rendering an order, the Department shall take |
|
into consideration
the facts and circumstances involving the |
type of acts or omissions in
subsection (a) including, but not |
limited to:
|
(1) the extent to which public confidence in the public |
accounting
profession was, might have been, or may be |
injured;
|
(2) the degree of trust and dependence among the |
involved parties;
|
(3) the character and degree of financial or economic |
harm which did or
might have resulted; and
|
(4) the intent or mental state of the person charged at |
the time of the
acts or omissions.
|
(d) The Department may refuse to issue or may suspend |
without hearing, as provided for in the Code of Civil |
Procedure, the license or registration of any person who fails |
to file a return, to pay a tax, penalty, or interest shown in a |
filed return, or to pay any final assessment of tax, penalty, |
or interest, as required by any tax Act administered by the |
Illinois Department of Revenue, until such time as the |
requirements of any such tax Act are satisfied in accordance |
with subsection (g) of Section 2105-15 of the Department of |
Professional Regulation Law of the Civil Administrative Code of |
Illinois The Department shall reissue the license or |
registration upon a showing that the disciplined
licensee or |
registrant has complied with all of the terms and conditions |
set forth in the
final order .
|
|
(e) The Department shall deny any application for a |
license, registration, or renewal,
without hearing, to any |
person who has defaulted on an educational loan
guaranteed by |
the Illinois Student Assistance Commission; however, the
|
Department
may issue a license, registration, or renewal if the |
person in default has
established a satisfactory repayment |
record as determined by the Illinois
Student Assistance |
Commission.
|
(f) The determination by a court that a licensee or |
registrant is subject to involuntary
admission or judicial |
admission as provided in the Mental Health and
Developmental |
Disabilities Code will result in the automatic suspension of |
his
or her license or registration. The licensee or registrant |
shall be responsible for notifying the Department of the |
determination by the court that the licensee or registrant is |
subject to involuntary admission or judicial admission as |
provided in the Mental Health and Developmental Disabilities |
Code. The suspension shall end only upon a finding by a court |
that the patient is no longer subject to involuntary admission |
or judicial admission, the issuance of an order so finding and |
discharging the patient, and the filing of a petition for |
restoration demonstrating fitness to practice The licensee or |
registrant shall also notify the Department upon discharge so |
that a determination may be made under item (17) of subsection |
(a) whether the licensee or registrant may resume practice .
|
(g) In enforcing this Section, the Department, upon a |
|
showing of a possible violation, may compel, any licensee or |
registrant or any individual who has applied for licensure |
under this Act, to submit to a mental or physical examination |
and evaluation, or both, which may include a substance abuse or |
sexual offender evaluation, at the expense of the Department. |
The Department shall specifically designate the examining |
physician licensed to practice medicine in all of its branches |
or, if applicable, the multidisciplinary team involved in |
providing the mental or physical examination and evaluation, or |
both. The multidisciplinary team shall be led by a physician |
licensed to practice medicine in all of its branches and may |
consist of one or more or a combination of physicians licensed |
to practice medicine in all of its branches, licensed |
chiropractic physicians, licensed clinical psychologists, |
licensed clinical social workers, licensed clinical |
professional counselors, and other professional and |
administrative staff. Any examining physician or member of the |
multidisciplinary team may require any person ordered to submit |
to an examination and evaluation under this Section to submit |
to any additional supplemental testing deemed necessary to |
complete any examination or evaluation process, including, but |
not limited to, blood testing, urinalysis, psychological |
testing, or neuropsychological testing. The Department may |
order the examining physician or any member of the |
multidisciplinary team to provide to the Department any and all |
records, including business records, that relate to the |
|
examination and evaluation, including any supplemental testing |
performed. The Department may order the examining physician or |
any member of the multidisciplinary team to present testimony |
concerning this examination and evaluation of the licensee, |
registrant, or applicant, including testimony concerning any |
supplemental testing or documents relating to the examination |
and evaluation. No information, report, record, or other |
documents in any way related to the examination and evaluation |
shall be excluded by reason of any common law or statutory |
privilege relating to communication between the licensee, |
registrant, or applicant and the examining physician or any |
member of the multidisciplinary team. No authorization is |
necessary from the individual ordered to undergo an evaluation |
and examination for the examining physician or any member of |
the multidisciplinary team to provide information, reports, |
records, or other documents or to provide any testimony |
regarding the examination and evaluation. |
The individual to be examined may have, at his or her own |
expense, another physician of his or her choice present during |
all aspects of the examination. Failure of any individual to |
submit to mental or physical examination and evaluation, or |
both, when directed, shall result in an automatic suspension, |
without hearing, until such time as the individual submits to |
the examination. If the Department finds a licensee, |
registrant, or applicant unable to practice because of the |
reasons set forth in this Section, the Department shall require |
|
such licensee, registrant, or applicant to submit to care, |
counseling, or treatment by physicians approved or designated |
by the Department, as a condition for continued, reinstated, or |
renewed licensure to practice. |
When the Secretary immediately suspends a license or |
registration under this Section, a hearing upon such person's |
license or registration must be convened by the Department |
within 15 days after such suspension and completed without |
appreciable delay. The Department shall have the authority to |
review the subject's record of treatment and counseling |
regarding the impairment, to the extent permitted by applicable |
federal statutes and regulations safeguarding the |
confidentiality of medical records. |
Individuals licensed or registered under this Act, |
affected under this Section, shall be afforded an opportunity |
to demonstrate to the Department that they can resume practice |
in compliance with acceptable and prevailing standards under |
the provisions of their license or registration. |
(Source: P.A. 93-629, eff. 12-23-03; 93-683, eff. 7-2-04; |
94-779, eff. 5-19-06.)
|
(225 ILCS 450/20.1) (from Ch. 111, par. 5522)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 20.1. Investigations; notice; hearing. |
(a) The Department
may , upon
its own motion, and shall, |
upon the
verified complaint in writing of any person setting |
|
forth facts which, if
proved, would constitute grounds for |
disciplinary action
as set forth in Section 20.01, investigate |
the actions of an applicant, any
person , or entity holding or |
claiming to hold a license . |
(b) The Department shall, before revoking, suspending, |
placing on probation, reprimanding, or taking any other |
disciplinary or non-disciplinary action under Section 20.01 of |
this Act, at least 30 days before the date set for the hearing, |
(i) notify the accused in writing of the charges made and the |
time and place for the hearing on the charges, (ii) direct him |
or her to file a written answer to the charges with the |
Department under oath within 20 days after the service on him |
or her of the notice, and (iii) inform the accused that, if he |
or she fails to answer, default shall be taken against him or |
her or that his or her license or registration may be |
suspended, revoked, placed on probationary status, or other |
disciplinary action taken with regard to the licensee, |
including limiting the scope, nature, or extent of his or her |
practice, as the Department may consider proper. The
Department |
may refer complaints and investigations to a
disciplinary body
|
of the accounting profession for technical assistance. The |
results of
an investigation and recommendations of the |
disciplinary body
may be considered
by the Department, but |
shall not be considered determinative and
the Department
shall |
not in any way be obligated to take any action or be bound by |
the
results of the accounting profession's disciplinary |
|
proceedings. The
Department, before taking disciplinary |
action, shall afford the
concerned
party or parties an |
opportunity to request a hearing and if so requested
shall set |
a time and place for a hearing of the complaint. |
(c) With respect to determinations by a Peer Review |
Administrator duly appointed by the Department under |
subsection (f) of Section 16 of this Act that a licensee has |
failed to satisfactorily complete a peer review as required |
under subsection (e) of Section 16, the Department may consider |
the Peer Review Administrator's findings of fact as prima facie |
evidence, and upon request by a licensee for a hearing the |
Department shall review the record presented and hear arguments |
by the licensee or the licensee's counsel but need not conduct |
a trial or hearing de novo or accept additional evidence. |
(d) At the time and place fixed in the notice, the |
Department shall proceed to hear the charges and the parties or |
their counsel shall be accorded ample opportunity to present |
any pertinent statements, testimony, evidence, and arguments. |
The Department may continue the hearing from time to time. |
(e) In case the person, after receiving the notice, fails |
to file an answer, his or her license or registration may, in |
the discretion of the Department, be suspended, revoked, placed |
on probationary status, or the Department may take whatever |
disciplinary action considered proper, including limiting the |
scope, nature, or extent of the person's practice or the |
imposition of a fine, without a hearing, if the act or acts |
|
charged constitute sufficient grounds for that action under |
this Act. The written notice may be served by registered or |
certified mail to the licensee or registrant's address of |
record. The
Department shall notify the
applicant or the |
licensed or registered
person or entity of any
charges made and |
the date and place of the hearing of those charges by
mailing |
notice thereof to that person or entity by
registered or |
certified mail to the place last specified by the
accused |
person or entity in the last
notification to the
Department, at |
least 30 days prior to the date set for the
hearing or by
|
serving a written notice by delivery of the notice to the |
accused
person or entity at least 15 days prior to
the date set
|
for the hearing, and shall
direct the applicant or licensee or |
registrant to file a written
answer to the Department
under |
oath within 20 days after the service of the notice and inform |
the
applicant or licensee or registrant that failure to file an |
answer
will result in default
being taken against the applicant |
or licensee or registrant and that
the license or registration
|
may be
suspended, revoked, placed on probationary status, or |
other disciplinary
action may be taken, including limiting the |
scope, nature or extent of
practice, as the Director may deem |
proper.
In case the person fails to file an answer after |
receiving notice, his or
her license or registration may, in |
the discretion of the Department, be
suspended, revoked, or |
placed on probationary status, or the Department may
take |
whatever disciplinary action deemed proper, including limiting |
|
the
scope, nature, or extent of the person's practice or the |
imposition of a
fine, without a hearing, if the act or acts |
charged constitute sufficient
grounds for such action under |
this Act.
The Department
shall afford the accused person or |
entity an
opportunity to be heard
in person or by counsel at |
the hearing. At the conclusion of
the hearing
the Committee |
shall present to the Director a
written report setting forth |
its finding
of facts, conclusions of law, and recommendations. |
The report shall contain
a finding whether or not the accused |
person violated this Act or failed to
comply with the |
conditions required in this Act. If the Director disagrees in |
any regard with the report, he or she may issue an order in |
contravention of the report. The Director shall provide a |
written explanation to the Committee of any such deviations and |
shall specify with particularity the reasons for the |
deviations.
|
The finding is not admissible in evidence against the |
person in a criminal
prosecution brought for the violation of |
this Act, but the hearing and
findings are not a bar to a |
criminal prosecution brought for the violation
of this Act.
|
(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
|
(225 ILCS 450/20.2) (from Ch. 111, par. 5523)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 20.2. Subpoenas; depositions; oaths. |
(a) The Department may subpoena and bring before it at any |
|
hearing any
person to in this
State and take the oral or |
written testimony or compel the production of any books, |
papers, records, or any other documents that the Secretary or |
his or her designee deems relevant or material to any |
investigation or hearing conducted by the Department either |
orally or by
deposition, or both, with the same fees and |
mileage and in the same
manner as prescribed by law in judicial |
proceedings in
civil cases in circuit
courts of this State and |
in the same manner as prescribed by this Act and its rules .
|
(b) The Secretary Director , any member of the Committee |
designated by the Secretary Director , a certified shorthand |
reporter, or any hearing officer appointed may administer oaths |
to witnesses at any hearing which the Department conducts. |
Notwithstanding any statute or Department rule to the contrary, |
all requests for testimony, production of documents, or records |
shall be in accordance with this Act is authorized by law to |
conduct or any other oaths required or authorized in any Act |
administered by the Department .
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/20.3) (from Ch. 111, par. 5524)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 20.3. Required testimony. Any circuit court in the |
State of Illinois,
upon the application of the licensee, |
registrant accused person , partnership or corporation, of
the |
complainant or of the Department, may, by order duly entered,
|
|
require
the attendance and testimony of witnesses and the |
production of relevant documents, books , files, records, and |
papers
before the Department at any hearing relative to a |
disciplinary
action and
the court may compel obedience to the |
order by proceedings for contempt.
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/20.4) (from Ch. 111, par. 5525)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 20.4. Record of proceedings. |
(a) The Department, at its expense, shall provide a
|
stenographer to
take down the testimony and preserve a record |
of all proceedings at formal
disciplinary
hearings. The |
Department shall furnish a transcript of that
record to
any |
person interested in that hearing upon payment of the |
reasonable cost
established by the Department.
|
(b) Any registrant or licensee who is found to have |
violated this Act or who fails to appear for a hearing to |
refuse to issue, restore, or renew a license or to discipline a |
license may be required by the Department to pay for the costs |
of the proceeding. These costs are limited to costs for court |
reporters, transcripts, and witness attendance and mileage |
fees. All costs imposed under this Section shall be paid within |
60 days after the effective date of the order imposing the |
fine. |
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
|
(225 ILCS 450/20.5) (from Ch. 111, par. 5526)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 20.5. Rehearing ; surrender of license . |
(a) In any hearing to refuse to issue, restore, or renew a |
license or to discipline a licensee or registrant disciplinary |
proceeding , a copy of the
Committee's report shall be served |
upon the respondent by the Department,
either personally or as |
provided in this Act for the service of the notice of
hearing. |
Within 20 days after such service, the respondent may present |
to the
Department a motion in writing for a rehearing, which |
motion
shall specify the
particular grounds therefor. If no |
motion for rehearing is filed, then upon
the expiration of the |
time specified for filing such a motion, or if a motion
or |
rehearing is denied, then upon such denial the Secretary |
Director may enter an order in accordance with recommendations |
of the Committee except as provided in Section 20.7 20.6 . If |
the respondent shall order from the reporting
service, and pay |
for a transcript of the record within the time for filing a
|
motion for rehearing, the 20 day period within which such a |
motion may be filed
shall commence upon the delivery of the |
transcript to the respondent.
|
(b) Whenever the Secretary believes Director is satisfied |
that substantial justice has not been done in the disciplinary |
proceeding, the Secretary Director may order a rehearing by the |
same or different Committee or designated hearing officer. The |
|
Director shall provide a written explanation to the Committee |
of any deviation from the recommendations of the Committee and |
shall specify with particularity the reasons for the deviation.
|
(c) Upon the suspension or revocation of a registration or |
license of a registrant or
licensee , the registrant or licensee |
shall be required
to surrender to the Department the |
registration or license
issued by the Department, and upon
|
failure or refusal so to do, the Department may seize it.
|
The Department may exchange information relating to |
proceedings
resulting
in disciplinary action against licensees |
or registrants with the
regulatory bodies of other
states, or |
with other public authorities or private organizations or with |
federal authorities having
regulatory interest in such matter.
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/20.6) (from Ch. 111, par. 5526.6)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 20.6. Hearing officer. Notwithstanding the provisions |
of Section 20.2 of this Act,
the Secretary Director shall have |
the authority to appoint any attorney
duly licensed
to practice |
law in the State of Illinois to serve as the hearing officer
in |
any disciplinary action. The Director shall notify the |
Committee of such appointment.
|
The hearing officer shall have full authority to conduct |
the hearing.
The hearing officer shall report his findings of |
fact, conclusions of law
and recommendations to the Committee |
|
and the Secretary. Director. The Committee shall have 60 days |
after receiving the report to review the report of the hearing |
officer and present its findings of fact, conclusions of law, |
and recommendations to the Director. If the Committee fails to |
present its report within the 60-day period, the Director shall |
issue an order based on the report of the hearing officer. If |
the Director disagrees in any regard with the report of the |
Committee or hearing officer, he or she may issue an order in |
contravention thereof. The Director shall provide a written |
explanation to the Committee of any such deviations and shall |
specify with particularity the reasons for said action in the |
final order.
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/20.7 new) |
Sec. 20.7. Findings and recommendations. |
(a) The Committee shall review the report of the hearing |
officer and present its findings of fact, conclusions of law, |
and recommendations to the Secretary. The report of the |
findings and recommendations of the Committee shall be the |
basis for the Secretary's order for refusing to issue, restore, |
or renew a license or registration, or otherwise discipline a |
licensee or registrant. |
(b) If the Secretary disagrees in any regard with the |
report of the Committee or hearing officer, he or she may issue |
an order contrary to the report. |
|
(c) The findings are not admissible in evidence against the |
person in a criminal prosecution brought for the violation of |
this Act, but the hearing and findings are not a bar to a |
criminal prosecution brought for the violation of this Act.
|
(225 ILCS 450/20.8 new) |
Sec. 20.8. Summary suspension. The Secretary may summarily |
suspend the license or registration without a hearing, |
simultaneously with the institution of proceedings for a |
hearing under Section 20.1 of this Act, if the Secretary finds |
the evidence indicates that continuation in practice would |
constitute an imminent danger to the public. In the event that |
the Secretary summarily suspends a license without a hearing, a |
hearing by the Department shall be held within 30 days after |
the suspension has occurred and shall be concluded as |
expeditiously as possible.
|
(225 ILCS 450/21) (from Ch. 111, par. 5527)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 21. Administrative Judicial review; certification |
cost of record; order as prima facie proof.
|
(a) All final administrative decisions of the
Department
|
hereunder shall
be subject to judicial review pursuant to the |
provisions of the Administrative
Review Law, and all amendments |
and modifications thereof, and the rules adopted
pursuant |
thereto. The term "administrative decision" is defined as in |
|
Section
3-101 of the Code of Civil Procedure.
|
Proceedings for judicial review shall be commenced in the |
Circuit
Court of the county in which the party applying for |
review resides; provided,
that if such party is not a resident |
of this State, the venue shall be in
Sangamon, Champaign, or |
Cook County.
|
(b) The Department shall not be required to certify any |
record
to the
court or file any answer in court or otherwise |
appear in any court in a
judicial review proceeding, unless and |
until the Department has received from the plaintiff there is |
filed in the court with the
complaint a receipt from the |
Department acknowledging payment of
the costs of
furnishing and |
certifying the record, which costs shall be established
by the |
Department. Exhibits shall be certified without cost.
Failure |
on the part of the plaintiff to file such receipt in court |
shall be
grounds for dismissal of the action.
|
(c) An order of disciplinary action or a certified copy |
thereof, over
the seal of the Department and purporting to be |
signed by the Secretary
Director or authorized agent of the |
Secretary Director , shall be prima
facie
proof, subject to |
being rebutted, that:
|
(1) the signature is the genuine signature of the |
Secretary
Director or authorized agent of the Secretary |
Director ;
|
(2) the Secretary Director or authorized agent of the |
Secretary Director is duly
appointed and qualified;
and
|
|
(3) the Committee and the members thereof are qualified
|
to act.
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/27) (from Ch. 111, par. 5533)
|
(Section scheduled to be repealed on January 1, 2014) |
Sec. 27. Confidentiality of licensee's and registrant's |
records. A licensed or registered CPA certified public |
accountant shall not be required by
any court to divulge
|
information or evidence which has been obtained by him in his |
confidential
capacity as a licensed or registered CPA certified
|
public accountant . This Section shall not apply to any
|
investigation or hearing undertaken pursuant to this Act.
|
(Source: P.A. 94-779, eff. 5-19-06.)
|
(225 ILCS 450/28) (from Ch. 111, par. 5534)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 28. Criminal penalties Penalties . Each of the |
following acts perpetrated in the State
of Illinois is a Class |
A B misdemeanor.
|
(a) The practice of accountancy activities as defined |
in paragraph (1) of subsection (a) of Section 8.05 without |
an active CPA license public accounting insofar as it |
consists in
rendering service as described in Section 8, |
without licensure, in
violation of the provisions of this |
Act;
|
|
(b) The obtaining or attempting to obtain licensure as |
a licensed CPA
certified public accountant
or registration |
as a registered CPA certified public accountant by fraud;
|
(c) The use of the title "Certified Public Accountant" , |
"public accountant", or the abbreviation "C.P.A." , "RCPA", |
"LCPA", "PA" or use of any similar words or letters |
indicating the user is a certified public accountant, or |
the title "Registered Certified Public Accountant" , the |
abbreviation "R.C.P.A.", any similar words or letters |
indicating the user is a certified public accountant or a |
registered certified public accountant by any person in |
contravention of this Act ; |
(c-5) (Blank); The use of the title "Certified Public |
Accountant" or "Licensed Certified Public Accountant" or |
the abbreviation "C.P.A." or "L.C.P.A." or any similar |
words or letters indicating the user is a certified public |
accountant by any person in contravention with this Act;
|
(d) The use of the title
"Certified Public Accountant" , |
"public accountant", or the
abbreviation "C.P.A." , "RCPA", |
"LCPA", "PA" or any similar words or letters indicating |
that the
members are certified public accountants, by any |
partnership, limited liability company, corporation, or |
other entity in violation of this Act unless all
members |
thereof personally engaged in the practice of public |
accounting in
this State
are licensed as licensed certified |
public
accountants by the
Department, and
are holders of an |
|
effective unrevoked license, and the partnership, limited |
liability company, corporation, or other entity
is |
licensed as licensed certified public accountants by the
|
Board
with an effective
unrevoked license ;
|
(e) The unauthorized practice in the performance of |
accountancy activities as defined in Section 8.05 and in |
violation of this Act The use of the title "Licensed |
Certified Public Accountant", or the abbreviation
|
"L.C.P.A."
or any similar words or letters indicating such |
person is a licensed
certified public
accountant, by any |
person not licensed as a licensed certified public
|
accountant by the
Department, and holding an effective |
unrevoked license; provided
nothing in
this Act shall |
prohibit the use of the title "Accountant" or "Bookkeeper" |
by
any person ;
|
(f) (Blank); The use of the title "Licensed Certified |
Public Accountants",
"Public
Accountants" or the |
abbreviation "P.A.'s"
or any similar words or letters |
indicating that the members are public
accountants by any |
partnership, limited liability company, corporation, or |
other entity
unless all members thereof personally
engaged |
in the practice of public accounting in this State are |
licensed
as licensed certified public accountants by the
|
Department
and are holders
of effective
unrevoked |
licenses, and the partnership is licensed as a public
|
accounting
firm by
the Department with an effective |
|
unrevoked license;
|
(g) Making false statements to the Department
|
regarding
compliance with
continuing professional |
education or peer review requirements;
|
(h) (Blank). The use of the title "Certified Public |
Accountant" or the abbreviation "C.P.A." or any similar |
words or letters indicating that the members are certified |
public accountants, by any partnership unless all members |
thereof personally engaged in the practice of public |
accounting in this State have received certificates as |
certified public accountants from the Board, are licensed |
as public accountants by the Department, and are holders of |
an effective unrevoked license, and the partnership is |
licensed as public accountants by the Department with an |
effective unrevoked license. |
This Section does not prohibit a firm partnership, limited |
liability company, corporation, or other entity who does not |
practice public accounting as set forth in Section 8 of this |
Act and whose members residing in Illinois are registered with |
the Department from using the title "Certified Public |
Accountant" or the abbreviation "C.P.A." or "CPA" or similar |
words or letters indicating that the members are certified |
public accountants.
|
(Source: P.A. 95-331, eff. 8-21-07.)
|
(225 ILCS 450/30) (from Ch. 111, par. 5535)
|
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 30. Injunctions; cease and desist. |
(a) If any person or entity violates any provision of this |
Act, the Secretary may, The practice of public accounting, as |
described in Section 8 of
this Act, by any person in violation |
of this Act is hereby declared to be
inimical to the public |
welfare and to be a public nuisance. An action to
perpetually |
enjoin from such unlawful practice any person who has been or
|
is engaged therein may be maintained in the name of the people |
of the State
of Illinois by the Attorney General of the State |
of Illinois or , by the
State's Attorney of any county in which |
the violation is alleged to have occurred, petition for an |
order enjoining the violation or for an order enforcing |
compliance with this Act. Upon the filing of a verified |
petition in court, the court may issue a temporary restraining |
order, without notice or bond, and may preliminarily and |
permanently enjoin the violation. If it is established that the |
person has violated or is violating the injunction, the court |
may punish the offender for contempt of court action is |
brought, by the
Department or by any resident citizen . The |
injunction proceeding
shall be
in addition to and not in lieu |
of any penalties or other remedies provided
by this Act. No |
injunction shall issue under this section against any
person |
for any act exempted under Section 11 of this Act.
|
(b) If any person shall practice as a licensed CPA |
certified public accountant or
a registered CPA certified |
|
public accountant or hold himself or herself out
as a licensed |
CPA certified public accountant or registered CPA certified |
public accountant without being licensed or registered under |
the
provision
of this
Act then any licensed CPA certified |
public accountant or registered CPA certified public |
accountant , any interested party , or
any person
injured thereby |
may, in addition to the Department, petition for
relief
as |
provided in subsection (a) of this Section.
|
(c) Whenever in the opinion of the Department any person |
violates
any provision
of this Act, the Department may issue a |
rule to show cause why an
order
to cease and desist should not |
be entered against him. The rule shall clearly
set
forth the |
grounds relied upon by the Department and shall provide
a |
period
of 7 days from the date of the rule to file an answer to |
the satisfaction
of the Department. Failure to answer to the |
satisfaction of the
Department
shall cause an order to cease |
and desist to be issued forthwith.
|
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/30.1) (from Ch. 111, par. 5535.1)
|
(Section scheduled to be repealed on January 1, 2014) |
Sec. 30.1. Liability. No person, partnership, corporation, |
or other
entity
licensed or
authorized to practice under this |
Act or any of its employees, partners,
members, officers or |
shareholders shall be liable to persons not in privity
of |
contract with such person, partnership, corporation, or other
|
|
entity for civil damages
resulting from acts, omissions,
|
decisions or other conduct in connection with professional |
services
performed by such person, partnership, corporation, |
or other
entity,
except for:
|
(1) such acts, omissions, decisions or conduct that |
constitute fraud or
intentional misrepresentations, or
|
(2) such other acts, omissions, decisions or conduct, if |
such person,
partnership or corporation
was aware that a |
primary intent of the client was for the professional
services |
to benefit or influence the particular person bringing the |
action;
provided, however, for the purposes of this |
subparagraph (2), if
such person, partnership, corporation, or |
other entity (i)
identifies in writing to the
client those |
persons who
are intended to rely on the services, and (ii) |
sends a copy of such writing
or similar statement to those |
persons identified in the writing or
statement, then such |
person, partnership, corporation, or other
entity or any of its
|
employees, partners, members, officers or shareholders may be |
held liable
only to such persons intended to so rely, in
|
addition to those persons in privity of contract with such |
person,
partnership,
corporation, or other entity.
|
(Source: P.A. 92-457, eff. 7-1-04 .)
|
(225 ILCS 450/30.2) (from Ch. 111, par. 5535.2)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 30.2. Contributory fault. Except in causes of action |
|
based on actual
fraud or intentional misrepresentation, the
|
principles of liability set forth
in Sections 2-1115.05,
|
2-1116, and 2-1117 of the Code of Civil Procedure shall apply |
to all
claims for civil damages brought against any person, |
partnership, corporation,
or any other entity registered |
certified , licensed, or practicing under this Act, or any
of |
its employees, partners, members, officers, or shareholders |
that are alleged
to result from acts, omissions, decisions, or |
other conduct in connection with
professional services.
|
This Section applies to causes of action accruing on or
|
after the effective date of this amendatory Act of 1992.
This |
amendatory Act of 1995 applies to causes of action accruing on |
or
after its effective date.
|
(Source: P.A. 95-386, eff. 1-1-08.)
|
(225 ILCS 450/30.3)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 30.3. Confidentiality of peer review records.
|
(a) The proceedings, records, and work papers of a review |
committee shall be
privileged and shall not be subject to |
discovery, subpoena, or other means of
legal process or |
introduction into evidence in any civil action, arbitration,
or |
administrative proceeding and no member of a review committee |
or person
involved in a peer review program shall be required |
or permitted to testify in
any civil action, arbitration, or |
administrative proceeding regarding any
matters produced, |
|
presented, disclosed, or discussed during or in connection
with |
the peer review process, or regarding any findings, |
recommendations,
evaluations, opinions, or other actions of |
those committees, or any member of a
committee.
|
(b) Information, documents, or records that are otherwise |
publicly available
are not to be construed as immune from |
discovery or use in any civil action,
arbitration, or |
administrative proceeding merely because they were presented |
or
considered in connection with a peer review. Subsection (a) |
shall not be
construed to protect materials prepared in |
connection with a particular
engagement merely because they |
happen to subsequently be presented or
considered as part of a |
peer review; nor does the privilege apply to disputes
between |
review committees and persons or CPA firms subject to a peer |
review arising
from the performance of a review.
|
(Source: P.A. 88-36.)
|
(225 ILCS 450/30.4)
|
(Section scheduled to be repealed on January 1, 2014) |
Sec. 30.4. Prohibited practice. |
(a) No licensed CPA public accountant, licensed certified |
public accountant, or CPA public accounting firm may provide |
contemporaneously with an audit those non-auditing services |
referenced in subsection (g) of Section 10A of the federal |
Securities Exchange Act of 1934, as amended, to a company, |
excluding a not-for-profit organization, that (1) is not |
|
required to file periodic information, documents, and reports |
pursuant to the Securities Exchange Act of 1934 and (2) during |
the previous fiscal year, had annual revenues exceeding |
$50,000,000 or more than 500 employees.
|
(b) (1) A licensed CPA public accountant, licensed |
certified public accountant, or CPA public accounting firm |
is exempted from the prohibition in subsection (a) of this |
Section 30.4 if:
|
(A) the licensed CPA public accountant, licensed |
certified public accountant, or CPA public accounting |
firm presents written notice of the contemporaneous |
provision of auditing and non-auditing services to the |
company prior to the commencement of the |
contemporaneous provision of the services; and
|
(B) the president or chief executive officer of the |
company to which the contemporaneous auditing and |
non-auditing services are to be provided subsequently |
signs an acknowledgement that the company is aware of |
and agrees to the contemporaneous provision of the |
auditing and non-auditing services.
|
(2) A licensed CPA public accountant, licensed |
certified public accountant, or CPA public accounting firm |
waives the exemption provided for in paragraph (1) of this |
subsection (b) if the licensed CPA public accountant, |
certified public accountant, or CPA public accounting firm |
engages in criminal activity or willful or wanton |
|
negligence regarding the provision of contemporaneous |
auditing and non-auditing services to the company.
|
(c) A violation of this Section shall subject a licensed |
CPA public accountant, licensed certified public accountant, |
or CPA public accounting firm to the provisions of Section |
20.01 of this Act.
|
(d) Nothing in this Section shall be construed to authorize |
or permit the provision of any services by a licensed CPA |
public accountant, licensed certified public accountant, or |
CPA public accounting firm that would result in a lack of |
independence under applicable ethics standards of the |
accounting profession.
|
(Source: P.A. 93-683, eff. 7-2-04.)
|
(225 ILCS 450/30.5)
|
(Section scheduled to be repealed on January 1, 2014) |
Sec. 30.5. Improper influence on the conduct of audits. |
(a) It shall be unlawful for any officer or director of a |
company that is not required to file periodic information, |
documents, and reports pursuant to the federal Securities |
Exchange Act of 1934, or any other person acting under the |
direction thereof, to take any action to fraudulently |
influence, coerce, manipulate, or mislead any licensed CPA |
licensed public accountant or licensed certified public |
accountant engaged in the performance of an audit of the |
financial statements of that company for the purpose of |
|
rendering the financial statements being audited materially |
misleading.
|
(b) A person who , with the intent to deceive, violates this |
Section is guilty of a Class 4 felony.
|
(Source: P.A. 93-683, eff. 7-2-04.)
|
(225 ILCS 450/30.6)
|
(Section scheduled to be repealed on January 1, 2014) |
Sec. 30.6. Misleading behavior by licensees certified |
public accountants . |
(a) It shall be unlawful for any licensee licensed public |
accountant or licensed certified public accountant to |
intentionally mislead a company that is not required to file |
periodic information, documents, and reports pursuant to the |
federal Securities Exchange Act of 1934 by falsifying records |
it creates as part of an audit of the company.
|
(b) A person who knowingly violates this Section is guilty |
of a Class 4 felony.
|
(Source: P.A. 93-683, eff. 7-2-04.)
|
(225 ILCS 450/30.8 new) |
Sec. 30.8. Confidentiality. All information collected by |
the Department in the course of an examination or investigation |
of a licensee, registrant, or applicant, including, but not |
limited to, any complaint against a licensee or registrant |
filed with the Department and information collected to |
|
investigate any such complaint, shall be maintained for the |
confidential use of the Department and shall not be disclosed. |
The Department shall not disclose the information to anyone |
other than law enforcement officials, regulatory agencies that |
have an appropriate regulatory interest as determined by the |
Secretary, or a party presenting a lawful subpoena to the |
Department. Information and documents disclosed to a federal, |
State, county, or local law enforcement agency shall not be |
disclosed by the agency for any purpose to any other agency or |
person. A formal complaint filed against a licensee or |
registrant by the Department or any other issued by the |
Department against a licensee, registrant, or applicant shall |
be a public record, except as otherwise prohibited by law.
|
(225 ILCS 450/31) (from Ch. 111, par. 5536)
|
(Section scheduled to be repealed on January 1, 2014)
|
Sec. 31. Home rule. Public Policy. The regulation, |
licensing, and registration of accountants and CPA firms are |
exclusive powers and functions of the State. A home rule may |
not regulate or license accountants or CPA firms. This Section |
is a denial and limitation of home rule powers and functions |
under subsection (h) of Section 6 of Article VII of the |
Illinois Constitution. It is declared to be the public policy |
of this
State, pursuant to
paragraphs (h) and (i) of Section 6 |
of Article VII of the Illinois
Constitution of 1970, that any |
power or function set forth in this Act to
be exercised by the |
|
State is an exclusive State power or function. Such
power of |
function shall not be exercised concurrently, either directly |
or
indirectly, by any unit of local government, including home |
rule units,
except as otherwise provided in this Act.
|
(Source: P.A. 78-1219.)
|
(225 ILCS 450/32) (from Ch. 111, par. 5537)
|
(Section scheduled to be repealed on January 1, 2014) |
Sec. 32. Fund.
All
moneys received by the
Department
of |
Professional
Regulation
under this Act shall be deposited into |
the Registered Certified
Public Accountants' Administration |
and Disciplinary Fund, which is hereby
created as a special |
fund in the State Treasury. The funds in the account
shall be |
used by the Department, as appropriated, exclusively
for |
expenses
of the Department
of Professional
Regulation , or the |
Public Accountants' Registration
Committee, in the
|
administration of this Act.
|
Moneys in the Registered Certified Public Accountants' |
Administration and
Disciplinary Fund may be invested and |
reinvested, with all earnings
received from the investments to |
be deposited into the Registered Certified
Public Accountants' |
Administration and Disciplinary Fund.
|
Moneys from the Fund may also be used for direct and |
allocable indirect
costs related to the public purposes of the |
Department of Professional
Regulation. Moneys in the Fund may |
be transferred to the
Professions Indirect
Cost Fund as |
|
authorized by Section 2105-300 of the Department of
|
Professional Regulation Law (20 ILCS 2105/2105-300).
|
(Source: P.A. 92-457, eff. 8-21-01; 93-683, eff. 7-2-04.)
|
(225 ILCS 450/5 rep.)
|
(225 ILCS 450/9.01 rep.)
|
(225 ILCS 450/9.02 rep.)
|
(225 ILCS 450/14.3 rep.)
|
(225 ILCS 450/19 rep.) |
Section 15. The Illinois Public Accounting Act is amended |
by repealing Sections 5, 9.01, 9.02, 14.3, and 19.
|
Section 99. Effective date. This Act takes effect upon |
becoming law.
|
|
INDEX
|
Statutes amended in order of appearance
|
|