Bill Text: IL SB1723 | 2021-2022 | 102nd General Assembly | Enrolled

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Bill Title: Amends the Illinois Public Accounting Act. Provides that the Board of Examiners shall certify applicants who successfully complete all portions of the examination and verify completion of 150 semester credit hours. Provides that beginning January 1, 2023, an applicant for the examination shall be required to present proof of 120 college or university semester hours of study or other academic credit unit equivalent. Provides that applicants shall receive certification by the Board upon successful passage of all sections and requirements of the Uniform Certified Public Accountant Examination and verification of completion of educational requirements as determined by rule. Provides that the amendatory Act shall not be construed to invalidate any certificate issued before the effective date of the amendatory Act. Defines the term "exam certificate". Changes references from "certificate" to "certification" and makes corresponding and other changes.

Spectrum: Bipartisan Bill

Status: (Passed) 2021-07-30 - Public Act . . . . . . . . . 102-0222 [SB1723 Detail]

Download: Illinois-2021-SB1723-Enrolled.html



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1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Public Accounting Act is amended
5by changing Sections 0.03, 2, 3, 4, 5.1, 6, 6.1, 7, 14, 14.1,
6and 17.3 as follows:
7 (225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
8 (Section scheduled to be repealed on January 1, 2024)
9 Sec. 0.03. Definitions. As used in this Act, unless the
10context otherwise requires:
11 "Accountancy activities" means the services as set forth
12in Section 8.05 of the Act.
13 "Address of record" means the designated address recorded
14by the Department in the applicant's, licensee's, or
15registrant's application file or license file maintained by
16the Department's licensure maintenance unit. It is the duty of
17the applicant, licensee, or registrant to inform the
18Department of any change of address, and those changes must be
19made either through the Department's website or by directly
20contacting the Department.
21 "Certification" "Certificate" means certification a
22certificate issued by the Board or University or similar
23jurisdictions specifying an individual has successfully passed

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1all sections and requirements of the Uniform Certified Public
2Accountant Examination and verification of completion of 150
3credit hours. Certification A certificate issued by the Board
4or University or similar jurisdiction does not confer the
5ability to use the CPA title and is not equivalent to a
6registration or license under this Act.
7 "Compilation" means providing a service to be performed in
8accordance with Statements on Standards for Accounting and
9Review Services that is presented in the form of financial
10statements or information that is the representation of
11management or owners without undertaking to express any
12assurance on the statements.
13 "Coordinator" means the CPA Coordinator.
14 "CPA" or "C.P.A." means a certified public accountant who
15holds a license or registration issued by the Department or an
16individual authorized to use the CPA title under Section 5.2
17of this Act.
18 "CPA firm" means a sole proprietorship, a corporation,
19registered limited liability partnership, limited liability
20company, partnership, professional service corporation, or any
21other form of organization issued a license in accordance with
22this Act or a CPA firm authorized to use the CPA firm title
23under Section 5.2 of this Act.
24 "CPA (inactive)" means a licensed certified public
25accountant who elects to have the Department place his or her
26license on inactive status pursuant to Section 17.2 of this

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1Act.
2 "Exam certificate" means an exam certificate issued by the
3Board, the University, or a similar jurisdiction specifying
4that an individual has successfully passed all sections and
5requirements of the Uniform Certified Public Accountant
6Examination. An exam certificate issued by the Board, the
7University, or a similar jurisdiction does not confer the
8ability to use the CPA title and is not equivalent to a
9registration or license under this Act.
10 "Financial statement" means a structured presentation of
11historical financial information, including, but not limited
12to, related notes intended to communicate an entity's economic
13resources and obligations at a point in time or the changes
14therein for a period of time in accordance with generally
15accepted accounting principles (GAAP) or other comprehensive
16basis of accounting (OCBOA).
17 "Other attestation engagements" means an engagement
18performed in accordance with the Statements on Standards for
19Attestation Engagements.
20 "Registered Certified Public Accountant" or "registered
21CPA" means any person who has been issued a registration under
22this Act as a Registered Certified Public Accountant.
23 "Report", when used with reference to financial
24statements, means an opinion, report, or other form of
25language that states or implies assurance as to the
26reliability of any financial statements and that also includes

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1or is accompanied by any statement or implication that the
2person or firm issuing it has special knowledge or competence
3in accounting or auditing. Such a statement or implication of
4special knowledge or competence may arise from use by the
5issuer of the report of names or titles indicating that the
6person or firm is an accountant or auditor, or from the
7language of the report itself. "Report" includes any form of
8language that disclaims an opinion when the form of language
9is conventionally understood to imply any positive assurance
10as to the reliability of the financial statements referred to
11or special competence on the part of the person or firm issuing
12such language; it includes any other form of language that is
13conventionally understood to imply such assurance or such
14special knowledge or competence.
15 "Licensed Certified Public Accountant" or "licensed CPA"
16means any person licensed under this Act as a Licensed
17Certified Public Accountant.
18 "Committee" means the Public Accountant Registration and
19Licensure Committee appointed by the Secretary.
20 "Department" means the Department of Financial and
21Professional Regulation.
22 "License", "licensee", and "licensure" refer to the
23authorization to practice under the provisions of this Act.
24 "Peer review" means a study, appraisal, or review of one
25or more aspects of a CPA firm's or sole practitioner's
26compliance with applicable accounting, auditing, and other

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1attestation standards adopted by generally recognized
2standard-setting bodies.
3 "Principal place of business" means the office location
4designated by the licensee from which the person directs,
5controls, and coordinates his or her professional services.
6 "Review committee" means any person or persons conducting,
7reviewing, administering, or supervising a peer review
8program.
9 "Secretary" means the Secretary of the Department of
10Financial and Professional Regulation.
11 "University" means the University of Illinois.
12 "Board" means the Board of Examiners established under
13Section 2.
14 "Registration", "registrant", and "registered" refer to
15the authorization to hold oneself out as or use the title
16"Registered Certified Public Accountant" or "Certified Public
17Accountant", unless the context otherwise requires.
18 "Peer Review Administrator" means an organization
19designated by the Department that meets the requirements of
20subsection (f) of Section 16 of this Act and other rules that
21the Department may adopt.
22(Source: P.A. 99-78, eff. 7-20-15; 100-419, eff. 8-25-17.)
23 (225 ILCS 450/2) (from Ch. 111, par. 5502)
24 (Section scheduled to be repealed on January 1, 2024)
25 Sec. 2. Board of Examiners. The Governor shall appoint a

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1Board of Examiners that shall determine the qualifications of
2persons applying for certification certificates and shall make
3rules for and conduct examinations for determining the
4qualifications.
5 The Board shall consist of 11 examiners, including 2
6public members. The remainder shall be certified public
7accountants in this State who have been residents of this
8State for at least 5 years immediately preceding their
9appointment, except that one shall be either a certified
10public accountant of the grade herein described or an attorney
11licensed and residing in this State and one shall be a
12certified public accountant who is an active or retired
13educator residing in this State. The term of office of each
14examiner shall be 3 years. As the term of each examiner
15expires, the appointment shall be filled for a term of 3 years
16from the date of expiration. Any Board member who has served as
17a member for 6 consecutive years shall not be eligible for
18reappointment until 2 years after the end of the term in which
19the sixth consecutive year of service occurred, except that
20members of the Board serving on the effective date of this
21Section shall be eligible for appointment to one additional
223-year term. Where the expiration of any member's term shall
23result in less than 11 members then serving on the Board, the
24member shall continue to serve until his or her successor is
25appointed and has qualified. Except as otherwise provided in
26this Section, no Board member shall serve more than 2 full

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1consecutive terms. Anyone appointed to the Board shall be
2ineligible to be appointed to the Illinois Public Accountants
3Registration and Licensure Committee appointed by the
4Secretary. Appointments to fill vacancies shall be made in the
5same manner as original appointments for the unexpired portion
6of the vacated term. The membership of the Board shall
7reasonably reflect representation from the geographic areas in
8this State. The members of the Board appointed by the Governor
9shall receive reasonable compensation for their necessary,
10legitimate, and authorized expenses in accordance with the
11Governor's Travel Control Board rules and the Travel
12Regulation Rules. The Governor may terminate the term of any
13member of the Board at any time for cause.
14 Information regarding educational requirements, the
15application process, the examination, and fees shall be
16available on the Board's Internet web site as well as in
17printed documents available from the Board's office.
18 The Board shall adopt all necessary and reasonable rules
19and regulations for the effective administration of this Act.
20Without limiting the foregoing, the Board shall adopt and
21prescribe rules and regulations for a fair and impartial
22method of determining the qualifications of applicants for
23examination and for a fair and impartial method of examination
24of persons under Section 2 and may establish rules for
25subjects conditioned and for the transfer of credits from
26other jurisdictions with respect to subjects passed. The Board

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1shall verify completion of educational requirements for
2certification as required under this Act.
3 The Board shall make an annual report of its activities to
4the Governor and the Secretary. This report shall include a
5complete operating and financial statement covering its
6operations during the year, the number of examinations given,
7the pass/fail ratio for examinations, and any other
8information deemed appropriate. The Board shall have an audit
9of its books and accounts every 2 years by the Auditor General.
10(Source: P.A. 98-254, eff. 8-9-13.)
11 (225 ILCS 450/3) (from Ch. 111, par. 5504)
12 (Section scheduled to be repealed on January 1, 2024)
13 Sec. 3. Qualifications of applicants. The Board shall
14certify applicants who successfully complete all portions of
15the examination and verify completion of 150 semester credit
16hours.
17 (a) To be admitted to take the examination after the year
182000 and before January 1, 2023, for the purpose of
19determining the qualifications of applicants for certificates
20as certified public accountants under this Act, the applicants
21shall be required to present proof of the successful
22completion of 150 college or university semester hours of
23study or their quarter-hour or other academic credit unit
24equivalent, to include a baccalaureate or higher degree
25conferred by a college or university acceptable to the Board,

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1the total educational program to include an accounting
2concentration or equivalent as determined by Board rule. In
3adopting those rules, the Board shall consider, among other
4things, any impediments to the interstate practice of public
5accounting that may result from differences in the
6requirements in other states.
7 (b) Beginning January 1, 2023, an applicant for the
8examination shall be required to present proof of 120 college
9or university semester hours of study or their quarter-hour or
10other academic credit unit equivalent, to include a
11baccalaureate or higher degree conferred by a college or
12university acceptable to the Board, the total education
13program to include an accounting concentration or equivalent
14as determined by Board rule. Applicants shall receive
15certification by the Board upon successful passage of all
16sections and requirements of the Uniform Certified Public
17Accountant Examination and verification of completion of
18educational requirements as determined by rule.
19 (c) In adopting rules, the Board shall consider, among
20other things, any impediments to the interstate practice of
21public accounting that may result from differences in the
22requirements in other states.
23 Candidates who have taken the examination at least once
24before January 1, 2001, may take the examination under the
25qualifications in effect when they first took the examination.
26(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)

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1 (225 ILCS 450/4) (from Ch. 111, par. 5505)
2 (Section scheduled to be repealed on January 1, 2024)
3 Sec. 4. Transitional language.
4 (a) The provisions of this Act shall not be construed to
5invalidate any certificates as certified public accountants
6issued by the University under "An Act to regulate the
7profession of public accountants", approved May 15, 1903, as
8amended, or any certificates as Certified Public Accountants
9issued by the University or the Board under Section 4 of "An
10Act to regulate the practice of public accounting and to
11repeal certain acts therein named", approved July 22, 1943, as
12amended, which certificates shall be valid and in force as
13though issued under the provisions of this Act.
14 (b) Before July 1, 2012, persons who have received a
15Certified Public Accountant (CPA) Certificate issued by the
16Board or University or holding similar certifications from
17other jurisdictions with equivalent educational requirements
18and examination standards may apply to the Department on forms
19supplied by the Department for and may be granted a
20registration as a registered CPA from the Department upon
21payment of the required fee.
22 (c) Beginning with the 2006 renewal, the Department shall
23cease to issue a license as a Public Accountant. Any person
24holding a valid license as a Public Accountant prior to
25September 30, 2006 who meets the conditions for renewal of a

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1license under this Act, shall be issued a license as a licensed
2CPA under this Act and shall be subject to continued
3regulation by the Department under this Act. The Department
4may adopt rules to implement this Section.
5 (d) The Department shall not issue any new registrations
6as a registered CPA on or after July 1, 2012. After that date,
7any applicant for licensure under this Act shall apply for a
8license as a licensed CPA and shall meet the requirements set
9forth in this Act. Any person who has been issued a
10registration as a registered CPA may renew the registration
11under the provisions of this Act and that person may continue
12to renew or restore the registration during his or her
13lifetime, subject only to the renewal or restoration
14requirements for the registration under this Act. Such
15registration shall be subject to the disciplinary provisions
16of this Act.
17 (e) (Blank).
18 (f) The changes made by this amendatory Act of the 102nd
19General Assembly do not invalidate any certificate issued
20before the effective date of this amendatory Act of the 102nd
21General Assembly.
22(Source: P.A. 98-254, eff. 8-9-13.)
23 (225 ILCS 450/5.1)
24 (Section scheduled to be repealed on January 1, 2024)
25 Sec. 5.1. Foreign accountants. The Board shall certify

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1issue a certificate to a holder of a foreign designation,
2granted in a foreign country entitling the holder thereof to
3engage in the practice of public accounting, provided:
4 (a) The foreign authority that granted the designation
5 makes similar provision to allow a person who holds a
6 valid certification certificate issued by this State to
7 obtain the foreign authority's comparable designation; and
8 (b) The foreign designation (i) was duly issued by a
9 foreign authority that regulates the practice of public
10 accounting and the foreign designation has not expired or
11 been revoked or suspended; and (ii) was issued upon the
12 basis of educational and examination requirements
13 established by the foreign authority or by law; and
14 (c) The applicant (i) received the designation based
15 on educational and examination standards substantially
16 equivalent to those in effect in this State at the time the
17 foreign designation was granted; and (ii) passed a uniform
18 qualifying examination in national standards and an
19 examination on the laws, regulations, and code of ethical
20 conduct in effect in this State acceptable to the Board.
21(Source: P.A. 93-683, eff. 7-2-04.)
22 (225 ILCS 450/6) (from Ch. 111, par. 5507)
23 (Section scheduled to be repealed on January 1, 2024)
24 Sec. 6. Fees; pay of examiners; expenses. The Board shall
25charge a fee in an amount at least sufficient to defray the

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1costs and expenses incident to the examination and
2certification issuance of a certificate provided for in
3Section 6.1 and for the issuance of a certificate provided for
4in Section 5. This fee shall be payable by the applicant at the
5time of filing an application.
6(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
7 (225 ILCS 450/6.1)
8 (Section scheduled to be repealed on January 1, 2024)
9 Sec. 6.1. Examinations.
10 (a) The examination shall test the applicant's knowledge
11of accounting, auditing, and other related subjects, if any,
12as the Board may deem advisable. A candidate shall be required
13to pass all sections of the examination in order to qualify for
14certification a certificate. A candidate may take the required
15test sections individually and in any order, as long as the
16examination is taken within a timeframe established by Board
17rule.
18 (b) On and after January 1, 2005, applicants shall also be
19required to pass an examination on the rules of professional
20conduct for certification by the Board , as determined by Board
21rule to be appropriate, before they may be awarded a
22certificate as a Certified Public Accountant.
23 (c) Pursuant to compliance with the Americans with
24Disabilities Act, the Board may provide alternative test
25administration arrangements that are reasonable in the context

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1of the Certified Public Accountant examination for applicants
2who are unable to take the examination under standard
3conditions upon an applicant's submission of evidence as the
4Board may require, which may include a signed statement from a
5medical or other licensed medical professional, identifying
6the applicant's disabilities and the specific alternative
7accommodations the applicant may need. Any alteration in test
8administration arrangements does not waive the requirement of
9sitting for and passing the examination.
10 (d) Any application, document, or other information filed
11by or concerning an applicant and any examination grades of an
12applicant shall be deemed confidential and shall not be
13disclosed to anyone without the prior written permission of
14the applicant, except that the names and addresses only of all
15applicants shall be a public record and be released as public
16information. Nothing in this subsection shall prevent the
17Board from making public announcement of the names of persons
18receiving certificates under this Act.
19(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
20 (225 ILCS 450/7) (from Ch. 111, par. 5508)
21 (Section scheduled to be repealed on January 1, 2024)
22 Sec. 7. Licensure. A holder of an exam certificate, a
23certificate or registration as a certified public accountant,
24or certification issued by the Board or Department shall not
25be entitled to practice public accounting, as defined in

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1Section 8, in this State until the person has been licensed as
2a licensed CPA by the Department.
3(Source: P.A. 98-254, eff. 8-9-13.)
4 (225 ILCS 450/14) (from Ch. 111, par. 5515)
5 (Section scheduled to be repealed on January 1, 2024)
6 Sec. 14. Qualifications for licensure as a licensed CPA.
7The Department may license as licensed CPAs individuals
8meeting the following requirements:
9 (a) All persons who have received exam certificates or
10certifications certificates as certified public accountants
11from the Board or who hereafter received registrations as
12registered CPAs from the Department who have had at least one
13year of full-time experience, or its equivalent, providing any
14type of service or advice involving the use of accounting,
15audit, management advisory, financial advisory, tax,
16consulting skills, or other attestation engagements which may
17be gained through employment in government, industry,
18academia, or public practice.
19 (a-5) If the applicant's exam certificate or certification
20certificate as a certified public accountant from the Board or
21the applicant's registration as a registered CPA from the
22Department was issued more than 4 years prior to the
23application for a license as a licensed CPA under this
24Section, the applicant shall submit any evidence the
25Department may require showing the applicant has completed not

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1less than 90 hours of continuing professional education
2acceptable to the Department within the 3 years immediately
3preceding the date of application.
4 (b) (Blank).
5(Source: P.A. 98-254, eff. 8-9-13.)
6 (225 ILCS 450/14.1)
7 (Section scheduled to be repealed on January 1, 2024)
8 Sec. 14.1. Foreign accountants. The Department may issue a
9license as a licensed CPA to a holder of a foreign designation,
10granted in a foreign country, provided that:
11 (a) the applicant has received certification is the
12 holder of a certificate as a certified public accountant
13 from the Board or a registration as a registered CPA from
14 the Department issued under this Act;
15 (b) (Blank);
16 (c) the foreign designation (i) was duly issued by a
17 foreign authority that regulates the practice of public
18 accounting and the foreign designation has not expired or
19 been revoked or suspended; (ii) entitles the holder to
20 issue reports upon financial statements; and (iii) was
21 issued upon the basis of educational, examination, and
22 experience requirements established by the foreign
23 authority or by law; and
24 (d) the applicant (i) received the designation based
25 on standards substantially equivalent to those in effect

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1 in this State at the time the foreign designation was
2 granted; and (ii) completed an experience requirement,
3 substantially equivalent to the requirement set out in
4 Section 14, in the jurisdiction that granted the foreign
5 designation or meets equivalent requirements prescribed by
6 the Department by rule, within the 10 years immediately
7 preceding the application.
8 Applicants have 3 years from the date of application to
9complete the application process. If the process has not been
10completed in 3 years, the application shall be denied, the fee
11shall be forfeited, and the applicant must reapply and meet
12the requirements in effect at the time of reapplication.
13(Source: P.A. 98-254, eff. 8-9-13.)
14 (225 ILCS 450/17.3)
15 (Section scheduled to be repealed on January 1, 2024)
16 Sec. 17.3. Restoration of license from discipline. At any
17time after the successful completion of a term of indefinite
18probation, suspension, or revocation of a license or
19registration, the Department may restore the license or
20registration to active status, unless, after an investigation
21and a hearing, the Secretary determines that restoration is
22not in the public interest. No person or entity whose license,
23certification certificate, or authority has been revoked as
24authorized in this Act may apply for restoration of that
25license, certification, or authority until such time as

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1provided for in the Civil Administrative Code of Illinois.
2(Source: P.A. 98-254, eff. 8-9-13.)
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