Public Act 102-0222

SB1723 Enrolled LRB102 05168 SPS 15189 b

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 5. The Illinois Public Accounting Act is amended

by changing Sections 0.03, 2, 3, 4, 5.1, 6, 6.1, 7, 14, 14.1,

and 17.3 as follows:

(225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)

(Section scheduled to be repealed on January 1, 2024)

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.

"Certification" "Certificate" means certification 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 and verification of completion of 150

credit hours. Certification 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.

"Coordinator" means the CPA Coordinator.

"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 or a CPA firm authorized to use the CPA firm title

under Section 5.2 of 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.

"Exam certificate" means an exam certificate issued by the

Board, the University, or a similar jurisdiction specifying

that an individual has successfully passed all sections and

requirements of the Uniform Certified Public Accountant

Examination. An exam certificate issued by the Board, the

University, or a similar jurisdiction does not confer the

ability to use the CPA title and is not equivalent to a

registration or license under 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.

"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.

"Licensed Certified Public Accountant" or "licensed CPA"

means any person licensed under this Act as a Licensed

Certified Public Accountant.

"Committee" means the Public Accountant Registration and

Licensure Committee appointed by the Secretary.

"Department" means the Department of Financial and

Professional Regulation.

"License", "licensee", and "licensure" refer to the

authorization to practice under the provisions of this Act.

"Peer review" 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.

"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.

"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.

"University" means the University of Illinois.

"Board" means the Board of Examiners established under

Section 2.

"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.

"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. 99-78, eff. 7-20-15; 100-419, eff. 8-25-17.)

(225 ILCS 450/2) (from Ch. 111, par. 5502)

(Section scheduled to be repealed on January 1, 2024)

Sec. 2. Board of Examiners. The Governor shall appoint a

Board of Examiners that shall determine the qualifications of

persons applying for certification 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. 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 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. 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 verify completion of educational requirements for

certification as required under this Act.

The Board shall make an annual report of its activities to

the Governor and the Secretary. 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. 98-254, eff. 8-9-13.)

(225 ILCS 450/3) (from Ch. 111, par. 5504)

(Section scheduled to be repealed on January 1, 2024)

Sec. 3. Qualifications of applicants. The Board shall

certify applicants who successfully complete all portions of

the examination and verify completion of 150 semester credit

hours.

(a) To be admitted to take the examination after the year

2000 and before January 1, 2023, for the purpose of

determining the qualifications of applicants for certificates

as certified public accountants under this Act, the applicants

shall be required to present proof of the successful

completion of 150 college or university semester hours of

study or their quarter-hour or other academic credit unit

equivalent, to include a baccalaureate or higher degree

conferred by a college or university acceptable to the Board,

the total educational program to include an accounting

concentration or equivalent as determined by Board rule. In

adopting those rules, the Board shall consider, among other

things, any impediments to the interstate practice of public

accounting that may result from differences in the

requirements in other states.

(b) 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 their quarter-hour or

other academic credit unit equivalent, to include a

baccalaureate or higher degree conferred by a college or

university acceptable to the Board, the total education

program to include an accounting concentration or equivalent

as determined by Board rule. 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.

(c) In adopting rules, the Board shall consider, among

other things, any impediments to the interstate practice of

public accounting that may result from differences in the

requirements in other states.

Candidates who have taken the examination at least once

before January 1, 2001, may take the examination under the

qualifications in effect when they first took the examination.

(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)

(225 ILCS 450/4) (from Ch. 111, par. 5505)

(Section scheduled to be repealed on January 1, 2024)

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 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 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 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 after July 1, 2012. After that date,

any applicant for licensure under this Act shall apply for a

license as a licensed CPA and shall meet the requirements set

forth in this Act. Any person who has been issued a

registration as a registered CPA 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).

(f) The changes made by this amendatory Act of the 102nd

General Assembly do not invalidate any certificate issued

before the effective date of this amendatory Act of the 102nd

General Assembly.

(Source: P.A. 98-254, eff. 8-9-13.)

(225 ILCS 450/5.1)

(Section scheduled to be repealed on January 1, 2024)

Sec. 5.1. Foreign accountants. The Board shall certify

issue a certificate 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:

(a) The foreign authority that granted the designation

makes similar provision to allow a person who holds a

valid certification certificate issued by this State to

obtain the foreign authority's comparable designation; and

(b) 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; and (ii) was issued upon the

basis of educational and examination requirements

established by the foreign authority or by law; and

(c) The applicant (i) received the designation based

on educational and examination standards substantially

equivalent to those in effect in this State at the time the

foreign designation was granted; and (ii) passed a uniform

qualifying examination in national standards and an

examination on the laws, regulations, and code of ethical

conduct in effect in this State acceptable to the Board.

(Source: P.A. 93-683, eff. 7-2-04.)

(225 ILCS 450/6) (from Ch. 111, par. 5507)

(Section scheduled to be repealed on January 1, 2024)

Sec. 6. Fees; pay of examiners; expenses. The Board shall

charge a fee in an amount at least sufficient to defray the

costs and expenses incident to the examination and

certification issuance of a certificate provided for in

Section 6.1 and for the issuance of a certificate provided for

in Section 5. This fee shall be payable by the applicant at the

time of filing an application.

(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)

(225 ILCS 450/6.1)

(Section scheduled to be repealed on January 1, 2024)

Sec. 6.1. Examinations.

(a) The examination shall test the applicant's knowledge

of accounting, auditing, and other related subjects, if any,

as the Board may deem advisable. A candidate shall be required

to pass all sections of the examination in order to qualify for

certification a certificate. A candidate may take the required

test sections individually and in any order, as long as the

examination is taken within a timeframe established by Board

rule.

(b) On and after January 1, 2005, applicants shall also be

required to pass an examination on the rules of professional

conduct for certification by the Board , as determined by Board

rule to be appropriate, before they may be awarded a

certificate as a Certified Public Accountant.

(c) Pursuant to compliance with the Americans with

Disabilities Act, the Board may provide alternative test

administration arrangements that are reasonable in the context

of the Certified Public Accountant examination for applicants

who are unable to take the examination under standard

conditions upon an applicant's submission of evidence as the

Board may require, which may include a signed statement from a

medical or other licensed medical professional, identifying

the applicant's disabilities and the specific alternative

accommodations the applicant may need. Any alteration in test

administration arrangements does not waive the requirement of

sitting for and passing the examination.

(d) Any application, document, or other information filed

by or concerning an applicant and any examination grades of an

applicant shall be deemed confidential and shall not be

disclosed to anyone without the prior written permission of

the applicant, except that the names and addresses only of all

applicants shall be a public record and be released as public

information. Nothing in this subsection shall prevent the

Board from making public announcement of the names of persons

receiving certificates under this Act.

(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)

(225 ILCS 450/7) (from Ch. 111, par. 5508)

(Section scheduled to be repealed on January 1, 2024)

Sec. 7. Licensure. A holder of an exam certificate, a

certificate or registration as a certified public accountant,

or certification 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 by the Department.

(Source: P.A. 98-254, eff. 8-9-13.)

(225 ILCS 450/14) (from Ch. 111, par. 5515)

(Section scheduled to be repealed on January 1, 2024)

Sec. 14. Qualifications for licensure as a licensed CPA.

The Department may license as licensed CPAs individuals

meeting the following requirements:

(a) All persons who have received exam certificates or

certifications certificates as certified public accountants

from the Board or who hereafter received registrations as

registered CPAs 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, management advisory, financial advisory, tax,

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 exam certificate or certification

certificate as a certified public accountant from the Board or

the applicant's registration as a registered CPA 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).

(Source: P.A. 98-254, eff. 8-9-13.)

(225 ILCS 450/14.1)

(Section scheduled to be repealed on January 1, 2024)

Sec. 14.1. Foreign accountants. The Department may issue a

license as a licensed CPA to a holder of a foreign designation,

granted in a foreign country, provided that:

(a) the applicant has received certification is the

holder of a certificate as a certified public accountant

from the Board or a registration as a registered CPA from

the Department issued under this Act;

(b) (Blank);

(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 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. 98-254, eff. 8-9-13.)

(225 ILCS 450/17.3)

(Section scheduled to be repealed on January 1, 2024)

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,

certification 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.

(Source: P.A. 98-254, eff. 8-9-13.)