Bill Text: IL HB2726 | 2013-2014 | 98th General Assembly | Chaptered

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Bill Title: Amends the Illinois Public Accounting Act. Makes changes in provisions concerning definitions, the Board of Examiners, the Public Accountant Registration Committee, the Administrative Procedure Act, licensure, practice, unlicensed practice, accountancy activities, powers and duties of the Department of Financial and Professional Regulation, sharing of information, exemption from the Act, application for licensure, qualifications, foreign accountants, expiration and renewal of licenses, fees, inactive status, discipline, investigations, hearings, summary suspension, administrative review, criminal penalties, injunctions, contributory fault, prohibited practice, home rule, and the Registered Certified Public Accountants' Administration and Disciplinary Fund. Changes references throughout the Act from "certified public accountant" to "CPA". Changes references throughout the Act from "Director" to "Secretary". Creates new provisions concerning accountancy activities, qualifications for licensure as a CPA firm, restoration of license from discipline, findings, and recommendations, summary suspension, and confidentiality. Amends the Regulatory Sunset Act. Extends the repeal of the Illinois Public Accounting Act from January 1, 2014 to January 1, 2024. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-08-09 - Public Act . . . . . . . . . 98-0254 [HB2726 Detail]

Download: Illinois-2013-HB2726-Chaptered.html

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Public Act 098-0254
HB2726 Enrolled LRB098 10780 MGM 41198 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Regulatory Sunset Act is amended by changing
Section 4.24, and by adding Section 4.34 as follows:
(5 ILCS 80/4.24)
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 Acts and Section repealed on January 1, 2014.
The following Acts and Section of an Act are repealed on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:
The Electrologist Licensing Act.
The Illinois Certified Shorthand Reporters Act of 1984.
The Illinois Occupational Therapy Practice Act.
The Illinois Public Accounting Act.
The Private Detective, Private Alarm, Private Security,
Fingerprint Vendor, and Locksmith Act of 2004.
The Registered Surgical Assistant and Registered Surgical
Technologist Title Protection Act.
Section 2.5 of the Illinois Plumbing License Law.
The Veterinary Medicine and Surgery Practice Act of 2004.
(Source: P.A. 97-1139, eff. 12-28-12.)
(5 ILCS 80/4.34 new)
Sec. 4.34. Act repealed on January 1, 2024. The following

Act is repealed on January 1, 2024:
The Illinois Public Accounting Act.
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:
(225 ILCS 450/0.02) (from Ch. 111, par. 5500.02)
(Section scheduled to be repealed on January 1, 2014)
Sec. 0.02. Declaration of public policy. It is the policy
of this State and the purpose of this Act:
(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
(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
(c) Preparing, auditing or examining financial statements
and issuing a report expressing or disclaiming an opinion on

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
profession; and that the use of accounting titles likely to
confuse the public be prohibited.
(Source: P.A. 85-1209.)
(225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
(Section scheduled to be repealed on January 1, 2014)
Sec. 0.03. Definitions. As used in this Act, unless the
context otherwise requires:
"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

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

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.
"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

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.
(c) "Committee" means the Public Accountant Registration
and Licensure Committee appointed by the Secretary Director.
(d) "Department" means the Department of Financial and
Professional Regulation.
(e) "Director" means the Director of Professional
Regulation.
(f) "License", "licensee" and "licensure" refers to the
authorization to practice under the provisions of this Act.
(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.
"Principal place of business" means the office location
designated by the licensee from which the person directs,

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.
"Secretary" means the Secretary of the Department of
Financial and Professional Regulation.
(i) "University" means the University of Illinois.
(j) "Board" means the Board of Examiners established under
Section 2.
(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.
(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.
(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
(225 ILCS 450/1) (from Ch. 111, par. 5501)
(Section scheduled to be repealed on January 1, 2014)
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",

"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.
(Source: P.A. 95-386, eff. 1-1-08.)
(225 ILCS 450/2) (from Ch. 111, par. 5502)
(Section scheduled to be repealed on January 1, 2014)
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.
The Board shall consist of 11 examiners, including 2 public
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
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

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
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
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

terminate the term of any member of the Board at any time for
cause.
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
printed documents available from the Board's office.
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
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.
(Source: P.A. 92-457, eff. 7-1-04; 93-629, eff. 12-23-03;
93-683, eff. 7-2-04.)
(225 ILCS 450/2.05)

(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

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.
(Source: P.A. 93-683, eff. 7-2-04.)
(225 ILCS 450/2.1) (from Ch. 111, par. 5503)
(Section scheduled to be repealed on January 1, 2014)
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
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
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.
(Source: P.A. 88-45.)

(225 ILCS 450/4) (from Ch. 111, par. 5505)
(Section scheduled to be repealed on January 1, 2014)
Sec. 4. Transitional language.
(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
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

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

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.
(Source: P.A. 95-386, eff. 1-1-08; 96-945, eff. 6-25-10.)
(225 ILCS 450/5.2)
(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

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

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.
(Source: P.A. 95-386, eff. 1-1-08.)
(225 ILCS 450/7) (from Ch. 111, par. 5508)

(Section scheduled to be repealed on January 1, 2014)
Sec. 7. Licensure. A holder of a certificate or
registration as a certified public accountant issued by the
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
accountant by the Department.
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,
until such time as the requirements of any such tax Act are
satisfied.
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
(225 ILCS 450/8) (from Ch. 111, par. 5509)
(Section scheduled to be repealed on January 1, 2014)
Sec. 8. Practicing as a licensed CPA public accountant or
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
disclaiming an opinion on a financial statement based on an
audit or examination of that statement, or expressing assurance

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
accountants within the meaning and intent of this Act.
(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
(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

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.
(225 ILCS 450/9) (from Ch. 111, par. 5510)
(Section scheduled to be repealed on January 1, 2014)
Sec. 9. Unlicensed practice; violation; civil penalty.
(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

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
be deemed to be licensed under this Act shall be subject to the
same rights and obligations as persons originally licensed
under this Act.
(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