Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 1197]

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1294

BOARD OF TRUSTEES

[November 23

On January 10, 1948, proceedings were instituted in the Circuit Court of Cook County challenging the. constitutionality of Section 4 (b) of the Act of 1943 under which certificates were being issued to applicants in the second category described above. The gist of the complaint was the charge that the special board of five examiners was not directed by the statute to conduct examinations in accounting theory and practice, auditing, and commercial law with sufficient definiteness as to satisfy constitutional requirements of specific standards for examination. On March 21, 1951, the Circuit Court declared Section 4 (b) unconstitutional but sustained as constitutional all other sections of the law which had been attacked by the complainants. The plaintiffs appealed and this appeal is now pending in the Supreme Court of Illinois. In the meantime, at the request of the Illinois Society of Certified Public Accountants and of the Public Accountants Association of Illinois, the Sixtyseventh General Assembly of Illinois enacted corrective legislation amending Section 4 (b) o£ the Act of 1943. The law now authorizes the University to issue new Certified Public Accountant certificates to all qualified applicants, including holders of certificates obtained under the unconstitutional section, upon proof satisfactory to the University that such applicants have passed an examination in accounting theory and practice, auditing, and commercial law given by a special Board of Examiners under the supervision of the University of Illinois. It is the opinion of counsel for the two professional organizations, the Attorney General of Illinois, and Professor William E. Britton, former Legal Counsel of the University of Illinois (who has been representing the University in this matter), that the amendment corrects the constitutional defects in Section 4 (b). Motion 'to dismiss the appeal from the Circuit Court of Cook County is now pending in the Supreme Court of Illinois. The amendment of the Accountancy Act makes it necessary to revise the rules and regulations adopted by the Board of Trustees for admission of candidates to Certified Public Accountant examinations. Several new rules are required to carry out the statutory direction as well as changes in existing rules. Accordingly, the University Committee on Accountancy recommends adoption of the following set of rules and regulations and repeal of all existing rules and regulations heretofore adopted by the Board of Trustees. The content and form of the revised and new rules have been the subject of careful study by all parties. Representatives of both professional organizations, the Attorney General of Illinois, the Director of Registration and Education, and the Committee on Accountancy have all agreed on the rules as here proposed for the consideration of the Board of Trustees. The proposed rules recite "a determination" by the Board of Trustees and by the Director of Registration and Education that the special board of five examiners which heretofore has conducted examinations under Section 4 (b) is the special board of five examiners referred to in the 1951 amendment to the Accountancy Act of 1943. This recital has been approved by the Director of Registration and Education in a conference with the Committee on Accountancy of the University. The 1951 amendment also made necessary changes in the language of C.P.A. certificates to be issued to the 133 holders of certificates heretofore issued under Section 4 (b) and to those candidates who subsequently pass examinations under the amended Section 4 (b). Copies of these revised forms are appended to the proposed rules and regulations. The language of the certificates has been approved by all parties concerned. I recommend adoption of the revised rules, approval of the new certificates, and the repeal of all existing rules relating to these matters. REGULATIONS ADOPTED BY T H E BOARD OF. TRUSTEES OF THE UNIVERSITY FOR ADMINISTERING THE ACCOUNTANCY ACT The University Committee on Accountancy 1. The administrative functions of the University of Illinois under the Accountancy Act of 1943 as amended shall be performed by a Committee on Accountancy responsible to the President of the University. The Committee shall consist of the Director of Admissions and Records and two other members of the University staff, to be appointed by the President.