093_HB3156

 
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 1        AN ACT concerning accountants.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Public Accounting Act is amended
 5    by changing Sections 0.03, 1, 4, and 20.1 and adding Sections
 6    16.1 and 20.02 as follows:

 7        (225 ILCS 450/0.03) (from Ch. 111, par. 5500.03)
 8        (Section scheduled to be repealed on January 1, 2014)
 9        (Text of Section before amendment by P.A. 92-457)
10        Sec. 0.03.  Definitions. As used in this Act, unless  the
11    context otherwise requires:
12        (a)  "Certified  Public  Accountant" means any person who
13    has  been  issued  a  certificate  as  a   certified   public
14    accountant from the University of Illinois.
15        (b)  "Public  Accountant" means any person licensed under
16    this Act.
17        (c)  "Department" means the  Department  of  Professional
18    Regulation.
19        (d)  "Director"   means   the  Director  of  Professional
20    Regulation.
21        (e)  "Committee" means the  Illinois  Public  Accountants
22    Registration Committee appointed by the Director.
23        (f)  "License",  "licensee" and "licensure" refers to the
24    authorization to practice under the provisions of this Act.
25        (g)  "Peer review program" means a study,  appraisal,  or
26    review  of  one or more aspects of the professional work of a
27    person  or  firm  certified  or  licensed  under  this   Act,
28    including  quality  review, peer review, practice monitoring,
29    quality   assurance,   and   similar   programs    undertaken
30    voluntarily  or  in  response to membership requirements in a
31    professional  organization,  or  as  a  prerequisite  to  the
 
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 1    providing   of   professional   services   under   government
 2    requirements, or any similar internal  review  or  inspection
 3    that is required by professional standards.
 4        (h)  "Review  committee"  means  any  person  or  persons
 5    conducting,  reviewing,  administering, or supervising a peer
 6    review program.
 7        (i)  "University" means the University of Illinois.
 8        (j)  "Board" means the  Board  of  Examiners  established
 9    under Section 2.
10    (Source: P.A. 88-36.)

11        (Text of Section after amendment by P.A. 92-457)
12        Sec.  0.03.  Definitions. As used in this Act, unless the
13    context otherwise requires:
14        (a)  "Certified Public Accountant" means any  person  who
15    has been issued and holds a current, unrevoked certificate as
16    a certified public accountant from the Board of Examiners.
17        (b)  "Licensed  Certified  Public  Accountant"  means any
18    person licensed under this Act.
19        (c)  (Blank).
20        (d)  (Blank).
21        (e)  (Blank).
22        (f)  "License", "licensee" and "licensure" refers to  the
23    authorization to practice under the provisions of this Act.
24        (g)  "Peer  review  program" means a study, appraisal, or
25    review of one or more aspects of the professional work  of  a
26    person   or  firm  certified  or  licensed  under  this  Act,
27    including quality review, peer review,  practice  monitoring,
28    quality    assurance,   and   similar   programs   undertaken
29    voluntarily or in response to membership  requirements  in  a
30    professional  organization,  or  as  a  prerequisite  to  the
31    providing   of   professional   services   under   government
32    requirements,  or  any  similar internal review or inspection
33    that is required by professional standards.
34        (h)  "Review  committee"  means  any  person  or  persons
 
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 1    conducting, reviewing, administering, or supervising  a  peer
 2    review program.
 3        (i)  "University" means the University of Illinois.
 4        (j)  "Board"  means  the  Board  of Examiners established
 5    under Section 2.
 6    (Source: P.A. 92-457, eff. 7-1-04.)

 7        (225 ILCS 450/1) (from Ch. 111, par. 5501)
 8        (Section scheduled to be repealed on January 1, 2014)
 9        (Text of Section before amendment by P.A. 92-457)
10        Sec. 1.  Any person, eighteen years of age or older,  who
11    has  received  from  the  University of Illinois, hereinafter
12    called the University, a certificate of his qualifications as
13    hereinafter  provided,  shall  be  styled  and  known  as   a
14    "Certified  Public  Accountant,"  and  no  other person shall
15    assume such title or use the  abbreviation  "C.P.A."  or  any
16    words  or  letters to indicate that the person using the same
17    is a certified public accountant.
18    (Source: P.A. 83-291.)

19        (Text of Section after amendment by P.A. 92-457)
20        Sec. 1.  Any person, eighteen years of age or older,  who
21    has   received   from   the   Board   a  certificate  of  his
22    qualifications  as  hereinafter  provided  and  who  holds  a
23    current, registered,  and  unrevoked  certificate,  shall  be
24    styled  and  known as a "Certified Public Accountant," and no
25    other person shall assume such title or use the  abbreviation
26    "C.P.A."  or any words or letters to indicate that the person
27    using the same is a certified public accountant.
28    (Source: P.A. 92-457, eff. 7-1-04.)

29        (225 ILCS 450/4) (from Ch. 111, par. 5505)
30        (Section scheduled to be repealed on January 1, 2014)
31        Sec.  4.  The  provisions  of  this  Act  shall  not   be
32    construed  to invalidate any certificates as certified public
 
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 1    accountants  issued  by  the  University  under  "An  Act  to
 2    regulate the profession of public accountants", approved  May
 3    15, 1903, as amended, or any certificates as Certified Public
 4    Accountants  issued  by the University under Section 4 of "An
 5    Act to regulate the practice  of  public  accounting  and  to
 6    repeal  certain  acts therein named", approved July 22, 1943,
 7    as amended, which certificates shall be valid and in force as
 8    though issued  under  the  provisions  of  this  Act,  unless
 9    suspended or revoked under the provisions of Section 20.02 of
10    this Act.
11    (Source: P.A. 83-291.)

12        (225 ILCS 450/16.1 new)
13        (Section scheduled to be repealed on January 1, 2014)
14        Sec. 16.1.  Expiration and renewal of certificates.
15        (a)  Each  holder  of a CPA certificate issued under this
16    Act or under "An Act to regulate  the  profession  of  public
17    accountants",  approved  May  15,  1903, as amended, or under
18    Section 4 of "An Act  to  regulate  the  practice  of  public
19    accounting   and  to  reveal  certain  acts  therein  named",
20    approved July  22,  1943,  as  amended,  shall  register  and
21    reregister   his   or  her  name,  address,  and  such  other
22    information with the Board at such times as the Board may  by
23    rule require.
24        (b)  Every application for renewal of a certificate shall
25    be accompanied by a nominal fee, as the Board may require.
26        (c)  Failure  by  the  holder  of  a  CPA  certificate to
27    register or reregister as  required  by  this  Section  shall
28    constitute  grounds  for  disciplinary  action  under Section
29    20.02, unless the Board in its discretion shall determine the
30    failure to have been due to reasonable cause.

31        (225 ILCS 450/20.02 new)
32        (Section scheduled to be repealed on January 1, 2014)
 
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 1        Sec.  20.02.  Grounds  for  discipline   of   certificate
 2    holder.
 3        (a)  The  Board  may  refuse  to issue a certificate, may
 4    revoke or suspend any certificate, reprimand any  certificate
 5    holder,  place a certificate holder on probation for a period
 6    of time, or impose a fine  not  to  exceed  $5,000  for  each
 7    violation for any one or more of the following:
 8             (1)  Attempting  to  procure  a  CPA  certificate or
 9        license to  practice  public  accounting  by  bribery  or
10        fraudulent misrepresentation.
11             (2)  Having a CPA certificate or license to practice
12        public  accounting revoked, suspended, or otherwise acted
13        against by the licensing authority of another  state,  or
14        the District of Columbia, or any United States territory.
15        No  disciplinary action shall be taken in Illinois if the
16        action taken  in  another  jurisdiction  was  based  upon
17        failure  to  pay a license renewal fee or failure to meet
18        the  experience  or  continuing  professional   education
19        requirements of that jurisdiction.
20             (3)  Being  convicted or found guilty, regardless of
21        adjudication, of a crime under the  laws  of  the  United
22        States  or  any  state or territory of the United States,
23        that is a felony or misdemeanor and that directly relates
24        to the practice of accounting or the ability to  practice
25        accounting,  including  but  not limited to any felony or
26        misdemeanor that has dishonesty as an essential element.
27             (4)  Making or filing a report or  record  that  the
28        individual knows to be false, willfully failing to file a
29        report  or  record  required  by  State  or  federal law,
30        willfully impeding or obstructing the filing, or inducing
31        another person to impede  or  obstruct  the  filing.  The
32        reports  or  records  shall  include  only those that are
33        signed in the CPA's professional capacity.
34             (5)  Proof that the certificate holder or  applicant
 
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 1        has,  in  his  or  her  professional practice, engaged in
 2        fraud,   deceit,    gross    negligence,    incompetence,
 3        misconduct, or dishonorable, unethical, or unprofessional
 4        conduct  of  a  character  likely to deceive, defraud, or
 5        harm the public or violating the  rules  of  professional
 6        conduct adopted by the Board.
 7             (6)  Failing  to  register or reregister as required
 8        by Section 16.1 of this Act.
 9             (7)  A finding  by  the  Board  that  a  certificate
10        holder  has  not  complied with a provision of any lawful
11        order issued by the Board.
12             (8)  Failing to make a  substantive  response  to  a
13        request  for  information  by the Board within 60 days of
14        the request.
15        (b)  In rendering an order, the  Board  shall  take  into
16    consideration  the  facts and circumstances involving acts or
17    omissions in subsection (a), including but not limited to:
18             (1)  the extent to which public  confidence  in  the
19        public accounting profession was, might have been, or may
20        be injured;
21             (2)  the  degree  of  trust and dependence among the
22        involved parties;
23             (3)  the  character  and  degree  of  financial   or
24        economic harm that did or might have resulted; and
25             (4)  the  intent  or  mental  state  of  the  person
26        charged at the time of the acts or omissions.
27        (c)  The  Board  shall reissue the certificate upon proof
28    that the disciplined certificate holder has complied with all
29    of the terms and conditions set forth in the final order.
30        (d)  The determination by  a  court  that  a  certificate
31    holder  is  subject  to  involuntary  admission  or  judicial
32    admission  as provided in the Mental Health and Developmental
33    Disabilities Code will result in the automatic suspension  of
34    his  or  her  certificate.  The  suspension  will  end upon a
 
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 1    finding by a court that the certificate holder is  no  longer
 2    subject  to  involuntary admission or judicial admission, and
 3    the issuance of an  order  so  finding  and  discharging  the
 4    patient.

 5        (225 ILCS 450/20.1) (from Ch. 111, par. 5522)
 6        (Section scheduled to be repealed on January 1, 2014)
 7        (Text of Section before amendment by P.A. 92-457)
 8        Sec.    20.1.  Investigations;   notice;   hearing.   The
 9    Department may, upon its own  motion,  and  shall,  upon  the
10    verified  complaint  in  writing  of any person setting forth
11    facts  which,  if  proved,  would  constitute   grounds   for
12    disciplinary   action   as   set   forth  in  Section  20.01,
13    investigate the actions of any  person.  The  Department  may
14    refer complaints and investigations to a disciplinary body of
15    the  accounting  profession  for  technical  assistance.  The
16    results  of  an  investigation  and  recommendations  of  the
17    disciplinary body may be considered by  the  Department,  but
18    shall  not  be  considered  determinative  and the Department
19    shall not in any way be obligated to take any  action  or  be
20    bound   by   the   results  of  the  accounting  profession's
21    disciplinary  proceedings.  The  Department   before   taking
22    disciplinary  action,  shall  afford  the  concerned party or
23    parties an  opportunity  to  request  a  hearing  and  if  so
24    requested  shall  set  a  time and place for a hearing of the
25    complaint.  The Department shall notify the applicant or  the
26    licensed  person  or  entity of any charges made and the date
27    and place of the hearing of those charges by  mailing  notice
28    thereof  to  that person or entity by registered or certified
29    mail to the place last specified by  the  accused  person  or
30    entity  in  the last notification to the Department, at least
31    30 days prior to the date set for the hearing or by serving a
32    written notice by delivery  of  the  notice  to  the  accused
33    person  or  entity at least 15 days prior to the date set for
 
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 1    the hearing, and shall direct the applicant  or  licensee  to
 2    file  a written answer to the Board under oath within 20 days
 3    after the service of the notice and inform the  applicant  or
 4    licensee  that  failure  to  file  an  answer  will result in
 5    default being taken against the  applicant  or  licensee  and
 6    that  the  license  or certificate may be suspended, revoked,
 7    placed on probationary status, or other  disciplinary  action
 8    may  be taken, including limiting the scope, nature or extent
 9    of practice, as the Director may deem  proper.  In  case  the
10    person fails to file an answer after receiving notice, his or
11    her  license  or  certificate  may,  in the discretion of the
12    Department, be suspended, revoked, or placed on  probationary
13    status,  or  the  Department  may  take whatever disciplinary
14    action deemed proper, including limiting the  scope,  nature,
15    or  extent  of  the  person's practice or the imposition of a
16    fine,  without  a  hearing,  if  the  act  or  acts   charged
17    constitute sufficient grounds for such action under this Act.
18    The  Department  shall afford the accused person or entity an
19    opportunity to be heard  in  person  or  by  counsel  at  the
20    hearing.   At  the  conclusion  of  the hearing the Committee
21    shall present to the Director a written report of its finding
22    of facts, conclusions of law and recommendations.  The report
23    shall contain a finding whether or  not  the  accused  person
24    violated  this  Act  or  failed to comply with the conditions
25    required in this Act.  The Committee shall specify the nature
26    of  the  violation  or  failure  to  comply,  and  make   its
27    recommendations to the Director.
28        The  report  of  findings of fact, conclusions of law and
29    recommendations of the Committee shall be the basis  for  the
30    Department's  disciplinary action.  If the Director disagrees
31    in any regard with the report,  he  may  issue  an  order  in
32    contravention  of  the  report.  The Director shall provide a
33    written explanation to the Committee of any  deviations  from
34    their  report,  and  shall  specify  with  particularity  the
 
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 1    reasons  of  that  action in the final order.  The finding is
 2    not admissible in evidence against the person in  a  criminal
 3    prosecution  brought  for  the violation of this Act, but the
 4    hearing and findings are not a bar to a criminal  prosecution
 5    brought for the violation of this Act.
 6    (Source: P.A. 87-1031; 88-36.)

 7        (Text of Section after amendment by P.A. 92-457)
 8        Sec.  20.1.  Investigations;  notice;  hearing. The Board
 9    may, upon its  own  motion,  and  shall,  upon  the  verified
10    complaint in writing of any person setting forth facts which,
11    if  proved,  would constitute grounds for disciplinary action
12    as set forth in  Section  20.01  or  20.02,  investigate  the
13    actions  of  any  person  or  entity.  The  Board  may  refer
14    complaints  and  investigations to a disciplinary body of the
15    accounting profession for technical assistance.  The  results
16    of  an  investigation and recommendations of the disciplinary
17    body may be  considered  by  the  Board,  but  shall  not  be
18    considered  determinative  and the Board shall not in any way
19    be obligated to take any action or be bound by the results of
20    the accounting  profession's  disciplinary  proceedings.  The
21    Board,  before  taking  disciplinary action, shall afford the
22    concerned party  or  parties  an  opportunity  to  request  a
23    hearing  and if so requested shall set a time and place for a
24    hearing  of  the  complaint.   The  Board  shall  notify  the
25    applicant or the licensed person or  entity  of  any  charges
26    made  and  the date and place of the hearing of those charges
27    by mailing  notice  thereof  to  that  person  or  entity  by
28    registered  or  certified mail to the place last specified by
29    the accused person or entity in the last notification to  the
30    Board, at least 30 days prior to the date set for the hearing
31    or  by  serving a written notice by delivery of the notice to
32    the accused person or entity at least 15 days  prior  to  the
33    date  set  for the hearing, and shall direct the applicant or
34    licensee to file a written answer to  the  Board  under  oath
 
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 1    within 20 days after the service of the notice and inform the
 2    applicant  or  licensee  that  failure to file an answer will
 3    result in  default  being  taken  against  the  applicant  or
 4    licensee   and   that  the  license  or  certificate  may  be
 5    suspended, revoked, placed on probationary status,  or  other
 6    disciplinary  action  may  be  taken,  including limiting the
 7    scope, nature or extent of practice, as the  Board  may  deem
 8    proper.  In  case  the  person  fails to file an answer after
 9    receiving notice, his or her license or certificate  may,  in
10    the discretion of the Board, be suspended, revoked, or placed
11    on  probationary  status,  or  the  Board  may  take whatever
12    disciplinary action deemed  proper,  including  limiting  the
13    scope,  nature,  or  extent  of  the person's practice or the
14    imposition of a fine, without a hearing, if the act  or  acts
15    charged  constitute  sufficient grounds for such action under
16    this Act. The Board shall afford the accused person or entity
17    an opportunity to be heard in person or  by  counsel  at  the
18    hearing.   Following  the conclusion of the hearing the Board
19    shall issue a written order  setting  forth  its  finding  of
20    facts,  conclusions of law, and penalties to be imposed.  The
21    order shall contain a finding  whether  or  not  the  accused
22    person  violated  this  Act  or  failed  to  comply  with the
23    conditions required in this Act.
24        The finding is not admissible  in  evidence  against  the
25    person in a criminal prosecution brought for the violation of
26    this  Act,  but  the  hearing and findings are not a bar to a
27    criminal prosecution brought for the violation of this Act.
28    (Source: P.A. 92-457, eff. 7-1-04.)

29        Section 99. Effective date.  This  Act  takes  effect  on
30    July 1, 2004.