Public Act 102-0222
 
SB1723 EnrolledLRB102 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    (Section scheduled to be repealed on January 1, 2024)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.)

Effective Date: 1/1/2022