HB2194enr 91st General Assembly


91_HB2194enr

 
HB2194 Enrolled                                LRB9104858ACtm

 1        AN ACT to amend the Public Accounting Act.

 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 5, 9.1, and 14 and  by  adding  Sections
 6    14.2 and 14.3 as follows:

 7        (225 ILCS 450/5) (from Ch. 111, par. 5506)
 8        Sec. 5. Certification of out-of-State accountants.
 9        (a)  The  Board  may  issue  a certificate as a certified
10    public accountant, without examination, to any applicant  who
11    holds  a  valid  unrevoked  certificate as a certified public
12    accountant issued under  the  laws  of  any  other  state  or
13    territory  of  the United States or the District of Columbia,
14    provided:
15             (1)  that the state that issued the certificate  has
16        certification  requirements  that have been determined by
17        the  Board  to  be  substantially   equivalent   to   the
18        certification requirements of Illinois and grants similar
19        rights  to  those  that  Illinois  grants  to certificate
20        holders;
21             (2)  that the state that issued the certificate  has
22        certification   requirements   that  the  Department  has
23        determined not to  be  substantially  equivalent  to  the
24        certification  requirements of Illinois or does not grant
25        similar rights to Illinois certificate holders,  but  the
26        Board  determines that the individual applicant possesses
27        personal  qualifications  substantially   equivalent   to
28        Illinois' certification requirements; or
29             (3)  that  the  applicant  does  not  qualify  under
30        subsections   (1)   or   (2)  above,  but  the  following
31        conditions are met:
 
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 1                  (A) (a)  the certificate  was  granted  to  the
 2             applicant  on  the  basis  of  the Uniform Certified
 3             Public Accountant examination; and
 4                  (B) (b)  the educational qualifications of  the
 5             applicant  for  a  certificate,  at  the time of the
 6             written  examination,   were   equivalent   to   the
 7             educational    qualifications   then   required   of
 8             applicants for admission to the Illinois examination
 9             for certified public accountant  or,  the  applicant
10             has, after passing the examination upon which his or
11             her  certificate was based, not less than 5 years of
12             experience in  the  practice  of  public  accounting
13             within  the  10  years  immediately  preceding  this
14             application,    otherwise    reasonably   considered
15             acceptable by the Board.
16        (b)  In determining the substantial  equivalency  of  the
17    requirements  for  certification  or  the  rights  granted to
18    certificate holders pursuant to this Section, the  Board  may
19    rely  on  the  determinations  of  the National Qualification
20    Appraisal Service of the National Association of State Boards
21    of Accountancy or any other qualification appraisal  service,
22    as it deems appropriate.
23    (Source: P.A. 88-36.)

24        (225 ILCS 450/9.1) (from Ch. 111, par. 5510.1)
25        Sec. 9.1.  Temporary practice.
26        (a)  An   individual  who  has  passed  the  Uniform  CPA
27    Examination and who  holds  a  valid,  unrevoked  license  or
28    permit  to  practice  as  a public accountant from a state or
29    United States territory in which he or she resides or has his
30    or her principal place of business, and who does  not  reside
31    or have his or her principal place of business in this State,
32    may  practice public accounting within this State without the
33    need to obtain a license under this Act.  Such practice shall
 
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 1    be conducted in accordance with the  relevant  provisions  of
 2    this   Act  and  rules  and  regulations  adopted  hereunder.
 3    Licensed certified public accountants  of  other  States  and
 4    Territories  of the United States or the District of Columbia
 5    who do not reside  or  have  an  office  in  this  State  may
 6    temporarily  practice  public  accounting  in  this  State on
 7    professional business  incident  to  their  regular  practice
 8    without  licensure  pursuant  to  this  Act.   Such temporary
 9    practice must be conducted in accordance  with  the  relevant
10    provisions  of  this  Act  and  rules and regulations adopted
11    hereunder,  including  provisions  relating  to  disciplinary
12    action.
13        (b)  A  foreign   accountant   who   holds   a   license,
14    certificate,  or  degree  in a foreign country constituting a
15    recognized  qualification  for   the   practice   of   public
16    accounting  and who does not reside or have an office in this
17    State may temporarily  practice  public  accounting  in  this
18    State or professional business incident to his or her regular
19    practice  without  licensure  under  this  Act  provided  the
20    standards,  including  examination, governing issuance of the
21    foreign license, certificate,  or  degree  are  substantially
22    equivalent to those in Illinois, and the foreign jurisdiction
23    in question grants equal recognition to Illinois accountants.
24    (Source: P.A. 88-36.)

25        (225 ILCS 450/14) (from Ch. 111, par. 5515)
26        Sec.  14. Qualifications. The Department shall license as
27    public accountants the following:
28        (a)  All persons  who  have  received  or  who  hereafter
29    receive certificates as certified public accountants from the
30    Board, who have had at least one year of full-time experience
31    ,  or its equivalent, providing any type of service or advice
32    involving the use of accounting, attest, management advisory,
33    financial advisory, tax, or consulting skills, which  may  be
 
HB2194 Enrolled            -4-                 LRB9104858ACtm
 1    gained  through employment in government, industry, academia,
 2    or public practice. either on the  professional  staff  of  a
 3    practicing public accountant of this or any other state or in
 4    a  responsible  audit  position  including  work  of  a  type
 5    normally  directed  toward  the  expression of an independent
 6    opinion on financial  statements  in  a  governmental  agency
 7    either:  (1)  in auditing the books and accounts or financial
 8    activities of partnerships,  corporations  or  other  persons
 9    engaged  in  3  or  more  distinct  lines  of  commercial  or
10    industrial  business  in  accordance  with generally accepted
11    auditing standards; or (2) in auditing the books and accounts
12    or financial activities of 3 or  more  distinct  governmental
13    agencies or independent organizational units, not an employer
14    of  the  applicant,  in  accordance  with  generally accepted
15    auditing standards, and in which the results of such auditing
16    are reported to a third party; or (3) in reviewing  financial
17    statements  and  supporting  material  covering the financial
18    condition and operations of entities engaged  in  3  or  more
19    distinct  lines  of  commercial  or  industrial  business  to
20    determine  the  reliability  and  fairness  of  the financial
21    reporting and compliance with generally  accepted  accounting
22    principles  and applicable laws and governmental regulations;
23    or  who  provide  satisfactory  evidence  to  the  Committee,
24    established herein, of such other experience or employment as
25    the Committee may consider substantially equivalent thereto.
26        If the applicant's certificate was  issued  more  than  4
27    years  prior to the application for an internal license under
28    this Section, the applicant shall  submit  any  evidence  the
29    Department  may  require  showing the applicant has completed
30    not less than 90 hours of continuing  professional  education
31    acceptable  to  the Department within the 3 years immediately
32    preceding the date of application.
33        The Committee shall be the sole and final  judge  of  the
34    qualification of experience under this section.
 
HB2194 Enrolled            -5-                 LRB9104858ACtm
 1        (b)  All  partnerships,  limited  liability companies, or
 2    corporations, or other entities engaged in  the  practice  of
 3    public  accounting  in  this  State and meeting the following
 4    requirements:
 5             (1)  (Blank) At  least  one  partner,  member  of  a
 6        limited   liability   company,   or   shareholder   in  a
 7        corporation must be licensed as a  public  accountant  by
 8        the  Department under the provisions of this Act and must
 9        be a holder of an effective unrevoked registration  card;
10        and  each partner, member of a limited liability company,
11        or shareholder of a  corporation  personally  engaged  in
12        this  State in the practice of public accounting and each
13        person in charge of an office of the firm in  this  State
14        must be so licensed and must be a holder of such a card.
15             (2)  A  majority  of  the  ownership of the firm, in
16        terms of financial interests and  voting  rights  of  all
17        partners,  officers,  shareholders, members, or managers,
18        belongs to  persons  licensed  in  some  state,  and  the
19        partners,  officers,  shareholders,  members, or managers
20        whose principal place of business is in  this  State  and
21        who  practice public accounting in this State, as defined
22        in Section 8 of this Act, hold a valid license issued  by
23        this  State.  Each partner, member of a limited liability
24        company, or shareholder of a corporation  not  personally
25        engaged   in   this  State  in  the  practice  of  public
26        accounting must be a certified public  accountant  or  be
27        otherwise authorized to practice accounting in some State
28        or  Territory  of  the  United States, in the District of
29        Columbia  or  in  a  foreign  country  or   a   political
30        subdivision thereof.
31             (3)  It  shall be lawful for a nonprofit cooperative
32        association  engaged  in  rendering   an   auditing   and
33        accounting  service  to  its members only, to continue to
34        render  that  service  provided  that  the  rendering  of
 
HB2194 Enrolled            -6-                 LRB9104858ACtm
 1        auditing  and  accounting  service  by  the   cooperative
 2        association  shall  at all times be under the control and
 3        supervision of public accountants.
 4             (4)  The Department may adopt rules and  regulations
 5        as  necessary  to  provide  for  the  practice  of public
 6        accounting by business entities  that  may  be  otherwise
 7        authorized by law to conduct business in Illinois.
 8        The   Director   shall   appoint   a   Public  Accountant
 9    Registration Committee as follows: 7  persons  who  shall  be
10    appointed  by  and shall serve in an advisory capacity to the
11    Director.  Six members must be licensed  public  accountants,
12    in  good  standing,  and  must  be  actively  engaged  in the
13    practice of public accounting in this State, and  one  member
14    of  the  public,  who  is  not  licensed under this Act, or a
15    similar  Act  of  another  jurisdiction,  and,  who  has   no
16    connection   with   the   accounting   or  public  accounting
17    profession.  Members shall serve 4 year terms and until their
18    successors are appointed and qualified.  No member  shall  be
19    reappointed   to   the  Committee  for  more  than  2  terms.
20    Appointments to fill vacancies shall  be  made  in  the  same
21    manner as original appointments, for the unexpired portion of
22    the  vacated  term.    The membership of the Committee should
23    reasonably reflect representation from the  geographic  areas
24    in this State.
25        The  members  of  the Committee appointed by the Director
26    shall receive reasonable compensation, to  be  determined  by
27    the   Department,   for   the    necessary,  legitimate,  and
28    authorized expenses approved by the Department. All  expenses
29    shall   be   paid   from   the  Registered  Certified  Public
30    Accountants' Administration and Disciplinary Fund.
31        The Director may terminate the appointment of any  member
32    for cause.
33        The  Committee  shall  present  an  annual  report to the
34    Department the content of which shall be specified by rule.
 
HB2194 Enrolled            -7-                 LRB9104858ACtm
 1        The   Director   shall   consider    the    advice    and
 2    recommendations  of  the  Committee  on  questions  involving
 3    standards    of    professional   conduct,   discipline   and
 4    qualifications of candidates and licensees under this Act.
 5    (Source: P.A. 88-36.)

 6        (225 ILCS 450/14.2 new)
 7        Sec. 14.2.  Licensure by endorsement. (a) The  Department
 8    shall issue a license as a public accountant to any applicant
 9    who  holds a valid unrevoked license or permit to practice as
10    a public accountant issued under the laws of any other  state
11    or  territory  of  the  United  States  or  the  District  of
12    Columbia, provided:
13             (1)  the  individual  applicant is determined by the
14        Department    to    possess    personal    qualifications
15        substantially  equivalent   to   this   State's   current
16        licensing requirements;
17             (2)  at  the  time the applicant received his or her
18        current  valid  and  unrevoked  license  or  permit,  the
19        applicant    possessed    qualifications    substantially
20        equivalent to the qualifications for  licensure  then  in
21        effect in this State; or
22             (3)  the    applicant   has,   after   passing   the
23        examination upon which his or her license or other permit
24        to  practice  was  based,  not  less  than  4  years   of
25        experience  in  the  practice of public accounting within
26        the 10 years immediately before the application.
27        (b)  In determining the substantial  equivalency  of  any
28    state's   requirements   to   Illinois'   requirements,   the
29    Department  may  rely  on  the determinations of the National
30    Qualification Appraisal Service of the  National  Association
31    of  State  Boards  of Accountancy or such other qualification
32    appraisal service as it deems appropriate.
 
HB2194 Enrolled            -8-                 LRB9104858ACtm
 1        (225 ILCS 450/14.3 new)
 2        Sec.  14.3.  Additional  requirements  for   firms.    In
 3    addition   to   the   ownership  requirements  set  forth  in
 4    subsection (b) of Section 14, all firms licensed  under  this
 5    Act shall meet the following requirements:
 6        (a)  All owners of the firm who are not licensed shall be
 7    active participants in the firm or its affiliated entities.
 8        (b) An individual who supervises  services  for  which  a
 9    license  is required under Section 8 of this Act or who signs
10    or authorizes another to sign any report for which a  license
11    is  required  under Section 8 of this Act shall hold a valid,
12    unrevoked license from this State or another state and  shall
13    comply with such additional experience requirements as may be
14    required by rule of the Department.
15        (c)  The  firm shall require that all owners of the firm,
16    whether or not certified or licensed under this  Act,  comply
17    with rules promulgated under this Act.
18        (d)  The  firm  shall  designate  to  the  Department  in
19    writing  an  individual  licensed under this Act who shall be
20    responsible for the proper registration of the firm.

21        Section 99.  Effective date.  This Act takes effect  upon
22    becoming law.
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State of Illinois 91st General Assembly Legislation

State of Illinois
91st General Assembly
Legislation
