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| Public Act 095-0386 |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Illinois Public Accounting Act is amended by | ||||
changing Sections 1, 4, 9, 9.01, 9.02, 13, 14, 14.3, and 30.2 | ||||
and by adding Section 5.2 as follows:
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(225 ILCS 450/1) (from Ch. 111, par. 5501)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 1. No person shall hold himself or herself out to the | ||||
public in this State in any manner by using the title | ||||
"Certified Public Accountant" 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 has been issued a license or registration by the Department | ||||
under this Act or is exercising the practice privilege afforded | ||||
under Section 5.2 of this Act.
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(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 10-1-06.)
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(225 ILCS 450/4) (from Ch. 111, par. 5505)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 4. Transitional language.
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(a) The provisions of this Act shall not be construed to | ||||
invalidate any
certificates as certified public accountants | ||||
issued by the University under
"An Act to regulate the | ||
profession of public accountants", approved May 15,
1903, as | ||
amended, or any certificates as Certified Public Accountants
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issued by the University or the Board under Section 4 of "An | ||
Act to regulate the
practice of public accounting and to repeal | ||
certain acts therein named",
approved July 22, 1943, as | ||
amended, which certificates shall be valid and
in force as | ||
though issued under the provisions of this Act. | ||
(b) Before July 1, 2010, persons who have received a | ||
Certified Public Accountant (CPA) Certificate issued by the | ||
Board 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 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 | ||
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 Certified Public Accountant after July 1, 2010. | ||
After that date, any applicant for licensure under this Act | ||
shall apply for a license as a 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 | ||
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) 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.
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(Source: P.A. 93-683, eff. 7-2-04.)
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(225 ILCS 450/5.2 new)
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(Section scheduled to be repealed on January 1, 2014) | ||
Sec. 5.2. Substantial equivalency. | ||
(a) An individual whose principal place of business is not | ||
in this State shall have all the privileges of a person | ||
licensed under this Act as a licensed 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 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 firm licensed under this | ||
Act. | ||
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(225 ILCS 450/9) (from Ch. 111, par. 5510)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 9. Unlicensed practice.
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No person shall, after the effective date of this | ||
amendatory
Act of the 93rd General Assembly, begin to practice | ||
in this State or hold himself out as being able to
practice | ||
licensed certified public accounting in this State or hold | ||
himself or herself out as being able to practice in this State
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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.
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No person shall, after the effective date of this | ||
amendatory Act of the 93rd General Assembly, begin to hold | ||
himself or herself out as a registered certified public | ||
accountant unless he or she is registered in accordance with | ||
the provisions
of this Act. | ||
On and after October 1, 2006, no person may use or | ||
incorporate the title "certified public accountant" without | ||
holding a license as a licensed certified public accountant or | ||
registered certified public accountant under this Act.
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(Source: P.A. 93-683, eff. 7-2-04.)
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(225 ILCS 450/9.01)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 9.01. Unlicensed practice; violation; civil penalty.
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(a) Any person or firm that practices, offers to practice, | ||
attempts to practice, or
holds oneself out to practice as a | ||
licensed certified public accountant
in this State without | ||
being licensed
under this Act or qualifying for the practice | ||
privilege set forth in Section 5.2 of this Act shall, in
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addition to any other penalty provided by law, pay a civil | ||
penalty to the
Department in an amount not to exceed $5,000 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.
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(b) The Department has the authority and power to | ||
investigate
any and all
unlicensed activity.
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(c) 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.
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(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
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(225 ILCS 450/9.02)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 9.02. Unauthorized use of title; violation; civil | ||
penalty.
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(a) Any
On and after October 1, 2006, any person who holds | ||
himself or herself out to the public as a certified public | ||
accountant in this State by using
shall assume the title | ||
"certified public
accountant" or use the abbreviation "CPA" or | ||
any words or letters
to indicate that the person using the same | ||
is a certified public
accountant without having been issued a | ||
registration as a registered certified public accountant or a | ||
license as a licensed certified public accountant under the
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provisions of this Act or without qualifying for the practice | ||
privilege under Section 5.2 of this Act shall, in addition to | ||
any other penalty
provided by law, pay a civil penalty to the | ||
Department in an amount not to
exceed $5,000 for each offense | ||
as determined by the Department. The
civil penalty shall be | ||
assessed by the Department
after a hearing is held in
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accordance with the provisions set forth in this Act regarding | ||
the
provision of a hearing for the discipline of a licensee.
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(b) The Department has the authority and power to | ||
investigate any and
all alleged improper use of the certified | ||
public accountant title or CPA
designation.
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(c) 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.
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(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
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(225 ILCS 450/13) (from Ch. 111, par. 5514)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 13. Application for licensure.
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(a) A person, partnership, limited liability
company, or | ||
corporation desiring to practice public accounting in this | ||
State
shall make application to the Department for licensure as | ||
a
licensed certified public accountant
and shall pay the fee | ||
required by rule.
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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.
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(b) Any 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 public | ||
accounting services, as defined in Section 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 has its home office in this | ||
State must hold a license issued under this Act. | ||
(c) A 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 home office in this State and may use the | ||
title "CPA" or "CPA firm" without obtaining a license 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 item (2) of subsection | ||
(b) of Section 14 of this Act. | ||
(d) A 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 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. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
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(225 ILCS 450/14) (from Ch. 111, par. 5515)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 14. Qualifications. The Department may
license as
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licensed certified public accountants the following:
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(a) All persons who have received certificates as certified | ||
public accountants from the Board or who hereafter receive | ||
registrations as registered 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, attest, management | ||
advisory, financial advisory, tax, or
consulting skills, which | ||
may be gained through employment in government,
industry, | ||
academia, or public practice.
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If the applicant's certificate as a certified public | ||
accountant from the Board or the applicant's registration as a | ||
registered certified public accountant from the Department was | ||
issued more than 4 years prior to the
application for a license | ||
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
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acceptable to the Department
within the 3 years immediately
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preceding the date
of application.
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(b) 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:
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(1) (Blank).
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(2) A majority of the ownership of the firm, in terms | ||
of
financial interests and voting rights of all partners,
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officers, shareholders, members, or managers, belongs to
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persons licensed in some state, and the partners, officers,
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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.
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(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.
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(4) The Department may adopt rules and regulations as
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necessary to provide
for the practice of public accounting | ||
by business entities that may be
otherwise authorized by | ||
law to conduct business in Illinois.
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(Source: P.A. 92-457, eff. 7-1-04; 93-683, eff. 7-2-04.)
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(225 ILCS 450/14.3)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 14.3. Additional requirements for firms. In
addition | ||
to the ownership requirements set forth in subsection (b) of | ||
Section
14, all firms licensed under this Act shall meet the
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following requirements:
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(a) All owners of the firm, whether licensed or not, shall
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be active participants in the firm or its affiliated
entities.
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(b) An individual who supervises services for which a
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license is required under Section 8 of this Act,
or who signs
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or authorizes another to sign any report for which a license
is | ||
required under Section 8 of this Act, or who supervises | ||
services for which a firm license is required under subsection | ||
(d) of Section 5.2 of this Act shall hold a valid,
active | ||
Licensed Certified Public Accountant license from this State or | ||
another state and shall comply with such
additional experience | ||
requirements as may be required by rule
of the Department
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Board.
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(c) The firm shall require that all owners of the
firm, | ||
whether or not certified or licensed under this Act,
comply | ||
with rules promulgated under this Act.
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(d) The firm shall designate to the Department in
writing | ||
an individual licensed under this Act or, in the case of a firm | ||
that must have a license pursuant to subsection (b) of Section | ||
13 of this Act, a licensee of another state who meets the | ||
requirements set out in item (1) or (2) of subsection (a) of | ||
Section 5.2 of this Act, who shall be
responsible for the | ||
proper registration of the firm.
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(e) 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.
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(Source: P.A. 93-683, eff. 7-2-04; 94-779, eff. 5-19-06.)
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(225 ILCS 450/30.2) (from Ch. 111, par. 5535.2)
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(Section scheduled to be repealed on January 1, 2014)
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Sec. 30.2. Contributory fault. Except in causes of action | ||
based on actual
fraud or intentional misrepresentation, the
the
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principles of liability set forth
in Sections 2-1115.05,
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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 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.
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This Section applies to causes of action accruing on or
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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.
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(Source: P.A. 89-380, eff. 8-18-95.)
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(225 ILCS 450/9.1 rep.)
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Section 10. The Illinois Public Accounting Act is amended | ||
by repealing Section 9.1. | ||
Section 97. Severability. The provisions of this Act are | ||
severable under Section 1.31 of the Statute on Statutes.
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Section 99. Effective date. This Act takes effect January | ||
1, 2008.
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