HB 4707 — CPA - LICENSING

HB4707 EngrossedEnrolled LRB098 17321 ZMM 52417 b AN ACT concerning regulation.

accounting, management, financial or consulting services, compilations, internal audit, preparation of tax returns, furnishing advice on tax HB4707 EngrossedEnrolled - 2 - LRB098 17321 ZMM 52417 b matters, bookkeeping, or representations of taxpayers;

HB4707 EngrossedEnrolled - 3 - LRB098 17321 ZMM 52417 b (1) the individual applicant is determined by the Department to possess qualifications substantially equivalent to this State's current licensing requirements;

(d) Any individual who is the holder of a current, valid, and not previously disciplined license as a certified public accountant of any state and has applied in writing to the HB4707 EngrossedEnrolled - 4 - LRB098 17321 ZMM 52417 b Department in form and substance satisfactory to the Department for a license as a licensed CPA may perform accountancy activities as set forth in Section 8.05 until the earlier of the following dates:

All partners, officers, shareholders, or members, whose principal place of business is in this State and who have overall responsibility for accountancy activities in this State, as defined in paragraph (1) of subsection (a) of Section 8.05 of this Act, must hold a valid license as a licensed HB4707 EngrossedEnrolled - 5 - LRB098 17321 ZMM 52417 b CPA issued by this State.

(4) An individual who supervises services for which a license is required under paragraph (1) of subsection (a) of Section 8.05 of this Act, who signs or authorizes another to sign any report for which a license is required under paragraph (1) of subsection (a) of Section 8.05 of this Act, or who supervises services for which a CPA firm license is required under subsection (d) of Section 5.2 of this Act shall hold a valid, active licensed CPA license from this State or another state considered to be substantially equivalent under paragraph (1) of subsection HB4707 EngrossedEnrolled - 6 - LRB098 17321 ZMM 52417 b (a) of Section 5.2.

(c) Every application for renewal of a license by a licensed CPA who has been licensed under this Act for 3 years or more shall be accompanied or supported by any evidence the Department shall prescribe, in satisfaction of completing, each 3 years, not less than 120 hours of continuing HB4707 EngrossedEnrolled - 7 - LRB098 17321 ZMM 52417 b professional education as prescribed by Department rules.

The Department, in its discretion, may renew a license despite failure to furnish evidence of satisfaction of requirements of continuing education upon condition that the HB4707 EngrossedEnrolled - 8 - LRB098 17321 ZMM 52417 b applicant follow a particular program or schedule of continuing education.

(e) For renewals on and after July 1, 2012, as a condition for granting a renewal license to CPA firms and sole HB4707 EngrossedEnrolled - 9 - LRB098 17321 ZMM 52417 b practitioners who perform accountancy activities outlined in paragraph (1) of subsection (a) of Section 8.05 under this Act, the Department shall require that the CPA firm or sole practitioner satisfactorily complete a peer review during the immediately preceding 3-year period, accepted by a Peer Review Administrator in accordance with established standards for performing and reporting on peer reviews, unless the CPA firm or sole practitioner is exempted under the provisions of subsection (i) of this Section.

HB4707 EngrossedEnrolled - 10 - LRB098 17321 ZMM 52417 b (f) The Department shall approve only Peer Review Administrators that the Department finds comply with established standards for performing and reporting on peer reviews.

(g) If a CPA firm or sole practitioner fails to satisfactorily complete a peer review as required by subsection (e) of this Section or does not comply with any remedial actions determined necessary by the Peer Review Administrator, the Peer Review Administrator shall notify the Department of the failure and shall submit a record with specific references to the rule, statutory provision, professional standards, or HB4707 EngrossedEnrolled - 11 - LRB098 17321 ZMM 52417 b other applicable authority upon which the Peer Review Administrator made its determination and the specific actions taken or failed to be taken by the licensee that in the opinion of the Peer Review Administrator constitutes a failure to comply.

or HB4707 EngrossedEnrolled - 12 - LRB098 17321 ZMM 52417 b (2) Within 2 years before the date of application for renewal licensure, the sole practitioner or CPA firm satisfies all of the following conditions:

HB4707 EngrossedEnrolled - 13 - LRB098 17321 ZMM 52417 b (k) (Blank).

(b) Any licensed CPA who has permitted his or her license to expire or who has had his or her license on inactive status may have his or her license restored by (1) making application to the Department and filing proof acceptable to the Department as defined by rule of his or her fitness to have his or her license restored, including sworn evidence certifying to active practice in another jurisdiction satisfactory to the Department, (2) and by paying the required restoration fee, (3) and by submitting proof of the required continuing education and (4) in the case of a sole practitioner, satisfactory completion of peer review outlined in subsection (e) of Section HB4707 EngrossedEnrolled - 14 - LRB098 17321 ZMM 52417 b 16, unless exempt from peer review under subsection (i) of Section 16.

Any licensed CPA or registered CPA whose license or registration expired while he or she was (1) in Federal Service on active duty with the Armed Forces of the United States, or the State Militia called into service or training, or (2) in training or education under the supervision of the United States preliminary to induction into the military service, may have his or her license or registration renewed reinstated or restored without paying any lapsed renewal and restoration fees HB4707 EngrossedEnrolled - 15 - LRB098 17321 ZMM 52417 b if within 2 years after honorable termination of such service, training or education except under conditions other than honorable, he or she furnished the Department with satisfactory evidence to the effect that he or she has been so engaged and that his or her service, training, or education has been so terminated.