Relating to accountants; creating new provisions; amending ORS 673.010, 673.040, 673.075, 673.150, 673.160, 673.170, 673.185, 673.320, 673.325, 673.455 and 673.457; and repealing section 1a, chapter ___, Oregon Laws 2001 (Enrolled Senate Bill 20).

 
 
 
     71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 901
           (Including Amendments to Resolve Conflicts)
 
                           B-Engrossed
 
                         Senate Bill 280
                   Ordered by the House May 15
         Including Senate Amendments dated March 15 and
                  House Amendments dated May 15
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Governor John A. Kitzhaber,
  M.D., for Oregon Board of Accountancy)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Separates compilation services from attestation services as
services that accountants provide.
  Requires holders of public accountancy permits who provide
compilation services to participate in peer review.
  Allows Oregon Board of Accountancy to authorize licensed
certified public accountant from another jurisdiction with
principal place of business in another state to practice public
accountancy in Oregon under specified circumstances.
  Eliminates right of licensee from another jurisdiction who does
not have principal place of business in another state to obtain
permit to engage in practice of public accountancy in Oregon
without first obtaining certificate of certified public
accountant or public accountant license from board.
  Authorizes board to maintain jurisdiction over licensee for
disciplinary purposes when license no longer valid.
 
                        A BILL FOR AN ACT
Relating to accountants; creating new provisions; amending ORS
  673.010, 673.040, 673.075, 673.150, 673.160, 673.170, 673.185,
  673.320, 673.325, 673.455 and 673.457; and repealing section
  1a, chapter ___, Oregon Laws 2001 (Enrolled Senate Bill 20).
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 673.010 is amended to read:
  673.010. As used in ORS 673.010 to 673.457:
  (1) 'Attest,' 'attesting' or 'attestation' means the opinion of
a licensee as to the reliability or fairness of information that
is used for guidance in the financial transactions of, accounting
for or assessing the status or performance of, commercial and
noncommercial enterprises, whether public or private, following
the completion of an audit, in accordance with generally accepted
accounting and auditing standards. The board by rule shall
further define what constitutes attestation services in
conformance, to the extent possible, with professional standards,
including but not limited to the Statements on Auditing Standards
(SAS) for audits or other engagements, the Statement of Standards
for Accounting and Review Services (SSARS) for the review
 { - or compilation - }  of financial statements and the
Statements on Standards for Attestation Engagements (SSAE) for
examinations of prospective financial information.
  (2) 'Board' means the Oregon Board of Accountancy created by
ORS 673.410.
  (3) 'Business organization' means any form of business
organization authorized by law, including but not limited to a
proprietorship, partnership, corporation, limited liability
company, limited liability partnership or professional
corporation.
  (4) 'Certificate' means a certificate of certified public
accountant issued under ORS 673.040.
  (5) 'Client' means a person who agrees with a licensee to
receive any professional service from the licensee.
   { +  (6) 'Compilation' means those services as defined by the
board by rule. + }
    { - (6) 'Contingent fee' means a fee established for the
performance of any professional service and directly or
indirectly paid to a licensee pursuant to an arrangement in which
no fee will be charged unless a specified finding or result is
attained, or in which the amount of the fee is otherwise
dependent upon the finding or result of such service. A fee is
not contingent if the fee: - }
    { - (a) Is fixed by courts or other public authorities;
or - }
    { - (b) In tax matters, is determined based on the results of
judicial proceedings or the findings of governmental
agencies. - }
  (7) 'License' means:
  (a) A certificate, permit or registration, or a license issued
under ORS 673.100, enabling the holder thereof to practice public
accountancy in this state; or
  (b) A certificate, permit, registration or other authorization
issued by a jurisdiction outside this state enabling the holder
thereof to practice public accountancy in that jurisdiction.
  (8) 'Licensee' means the holder of a license under subsection
(7)(a) of this section.
  (9) 'Manager' means a manager of a limited liability company.
  (10) 'Member' means a member of a limited liability company.
  (11) 'Peer review' means a study, appraisal or review of one or
more aspects of the public accountancy work of a  { + holder of a
permit under ORS 673.150 or of a + } registered business
organization that performs attestation  { + or compilation + }
services { + .  The peer review is conducted + } by a person or
persons  { + who are + } permitted under ORS 673.150 to practice
public accountancy and  { + who are + } independent of the
 { + permit holder or + } registered business organization being
reviewed.
  (12) 'Permit' means a permit to practice public accountancy
issued under ORS 673.150.
  (13) 'Professional' means arising out of or related to the
specialized knowledge or skills associated with certified public
accountants and public accountants.
  (14) 'Public accountant' means a public accountant licensed
under ORS 673.100.
  (15) 'Registration' means the authority issued under ORS
673.160 by the Oregon Board of Accountancy to a business
organization to practice public accountancy { +  in this
state + }.
  (16) 'Report,' when used with reference to attestation  { + or
compilation + } services, means an opinion or other form of
written 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
issuing the report has special knowledge or competence in public
accountancy. 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 issuer is a public
accountancy professional or organization or may arise from the
language of the report itself.
  (a) 'Report' includes any form of written language that:
  (A) Disclaims an opinion when the form of language implies any
positive assurance as to the reliability of the financial
statements referred to or special knowledge or competence on the
part of the person issuing the language;
  (B) Implies any positive assurance as to the reliability of the
financial statements referred to or special knowledge or
competence on the part of the person issuing the language; or
  (C) Relates to the financial affairs of a person and that is
conventionally used by licensees in reports or financial
statements.
  (b) 'Report' does not include:
  (A) The following statement signed by a person who does not
hold a certificate, license or permit under ORS 673.010 to
673.457 as long as the statement is not accompanied by any
wording indicating the person is an accountant or auditor or any
other language prohibited by ORS 673.310 or 673.320:
_________________________________________________________________
  The accompanying balance sheet (or __) of XYZ Company as of
(date), and the related statements of income (or retained
earnings or cash flow) for the year then ended have been prepared
by me (us).
  The information presented in these financial statements is the
representation of management (owners).
_________________________________________________________________
  (B) Any other financial statements or reports that are not and
do not purport to be in compliance with national standards,
including but not limited to Statements of Standards for
Accounting and Review Services (SSARS) and Statements on
Standards for Attestation Engagements (SSAE) adopted by the board
by rule, when the statements or reports are issued by persons not
otherwise subject to regulation by the board under ORS 673.010 to
673.457.
  (17) 'State' means any state, territory or insular possession
of the United States, and the District of Columbia.
  (18) 'Substantial equivalency' means a determination by the
  { - board or its designee - }  { +  National Qualification
Appraisal Service of the National Association of State Boards of
Accountancy + } that:
  (a) The education, examination and experience requirements
contained in the statutes and administrative rules of another
jurisdiction are equivalent to or exceed the education,
examination and experience requirements   { - contained in ORS
673.040, 673.050 and 673.060 and rules of the board issued
thereunder - }  { +  of the Uniform Accountancy Act + }; or
  (b) An individual's education, examination and experience
qualifications are equivalent to or exceed the education,
examination and experience requirements   { - contained in ORS
673.040, 673.050 and 673.060 and rules of the board issued
thereunder - }  { +  of the Uniform Accountancy Act + }.
  SECTION 1a.  { + If Senate Bill 20 becomes law, section 1 of
this 2001 Act (amending ORS 673.010) is repealed and ORS 673.010,
as amended by section 1, chapter ___, Oregon Laws 2001 (Enrolled
Senate Bill 20), is amended to read: + }
  673.010. As used in ORS 673.010 to 673.457:
  (1) 'Attest,' 'attesting' or 'attestation' means the opinion of
a licensee as to the reliability or fairness of information that
is used for guidance in the financial transactions of, accounting
for or assessing the status or performance of, commercial and
noncommercial enterprises, whether public or private, following
the completion of an audit, in accordance with generally accepted
accounting and auditing standards. The board by rule shall
further define what constitutes attestation services in
conformance, to the extent possible, with professional standards,
including but not limited to the Statements on Auditing Standards
(SAS) for audits or other engagements, the Statement of Standards
for Accounting and Review Services (SSARS) for the review of
financial statements and the Statements on Standards for
Attestation Engagements (SSAE) for examinations of prospective
financial information.
  (2) 'Board' means the Oregon Board of Accountancy created by
ORS 673.410.
  (3) 'Business organization' means any form of business
organization authorized by law, including but not limited to a
proprietorship, partnership, corporation, limited liability
company, limited liability partnership or professional
corporation.
  (4) 'Certificate' means a certificate of certified public
accountant issued under ORS 673.040.
  (5) 'Client' means a person who agrees with a licensee to
receive any professional service from the licensee.
  (6) 'Commission' means money or other consideration recognized
as a commission under rules adopted by the board pursuant to
section 4 { + , chapter ___, Oregon Laws 2001 (Enrolled Senate
Bill 20) + }   { - of this 2001 Act - } .
   { +  (7) 'Compilation' means those services as defined by the
board by rule. + }
    { - (7) - }   { + (8) + } 'Contingent fee' means a fee
established for the performance of any professional service and
directly or indirectly paid to a licensee pursuant to an
arrangement in which no fee will be charged unless a specified
finding or result is attained, or in which the amount of the fee
is otherwise dependent upon the finding or result of such
service. The board by rule may further define 'contingent fee.' A
fee is not contingent if the fee:
  (a) Is fixed by courts or other public authorities; or
  (b) In tax matters, is determined based on the results of
judicial proceedings or the findings of governmental agencies.
    { - (8) - }   { + (9) + } 'License' means:
  (a) A certificate, permit or registration, or a license issued
under ORS 673.100, enabling the holder thereof to practice public
accountancy in this state; or
  (b) A certificate, permit, registration or other authorization
issued by a jurisdiction outside this state enabling the holder
thereof to practice public accountancy in that jurisdiction.
    { - (9) - }   { + (10) + } 'Licensee' means the holder of a
license under subsection   { - (8)(a) - }   { + (9)(a) + } of
this section.
    { - (10) - }   { + (11) + } 'Manager' means a manager of a
limited liability company.
    { - (11) - }   { + (12) + } 'Member' means a member of a
limited liability company.
    { - (12) - }   { + (13) + } 'Peer review' means a study,
appraisal or review of one or more aspects of the public
accountancy work of a  { +  holder of a permit under ORS 673.150
or of a + } registered business organization that performs
attestation  { + or compilation + } services { + .  The peer
review is conducted + } by a person or persons  { + who are + }
permitted under ORS 673.150 to practice public accountancy and
 { + who are + } independent of the  { + permit holder or + }
registered business organization being reviewed.
    { - (13) - }   { + (14) + } 'Permit' means a permit to
practice public accountancy issued under ORS 673.150.
 
    { - (14) - }   { + (15) + } 'Professional' means arising out
of or related to the specialized knowledge or skills associated
with certified public accountants and public accountants.
    { - (15) - }   { + (16) + } 'Public accountant' means a
public accountant licensed under ORS 673.100.
    { - (16) - }   { + (17) + } 'Referral fee' means a fee
recognized as a referral fee under rules adopted by the board
pursuant to section 4 { + , chapter ___, Oregon Laws 2001
(Enrolled Senate Bill 20) + }   { - of this 2001 Act - } .
    { - (17) - }   { + (18) + } 'Registration' means the
authority issued under ORS 673.160 by the Oregon Board of
Accountancy to a business organization to practice public
accountancy { +  in this state + }.
    { - (18) - }   { + (19) + } 'Report,' when used with
reference to attestation  { + or compilation + } services, means
an opinion or other form of written 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 issuing the report has
special knowledge or competence in public accountancy. 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 issuer is a public accountancy professional
or organization or may arise from the language of the report
itself.
  (a) 'Report' includes any form of written language that:
  (A) Disclaims an opinion when the form of language implies any
positive assurance as to the reliability of the financial
statements referred to or special knowledge or competence on the
part of the person issuing the language;
  (B) Implies any positive assurance as to the reliability of the
financial statements referred to or special knowledge or
competence on the part of the person issuing the language; or
  (C) Relates to the financial affairs of a person and that is
conventionally used by licensees in reports or financial
statements.
  (b) 'Report' does not include:
  (A) The following statement signed by a person who does not
hold a certificate, license or permit under ORS 673.010 to
673.457 as long as the statement is not accompanied by any
wording indicating the person is an accountant or auditor or any
other language prohibited by ORS 673.310 or 673.320:
_________________________________________________________________
  The accompanying balance sheet (or __) of XYZ Company as of
(date), and the related statements of income (or retained
earnings or cash flow) for the year then ended have been prepared
by me (us).
  The information presented in these financial statements is the
representation of management (owners).
_________________________________________________________________
  (B) Any other financial statements or reports that are not and
do not purport to be in compliance with national standards,
including but not limited to Statements of Standards for
Accounting and Review Services (SSARS) and Statements on
Standards for Attestation Engagements (SSAE) adopted by the board
by rule, when the statements or reports are issued by persons not
otherwise subject to regulation by the board under ORS 673.010 to
673.457.
    { - (19) - }   { + (20) + } 'State' means any state,
territory or insular possession of the United States, and the
District of Columbia.
    { - (20) - }   { + (21) + } 'Substantial equivalency' means a
determination by the   { - board or its designee - }
 { + National Qualification Appraisal Service of the National
Association of State Boards of Accountancy + } that:
 
  (a) The education, examination and experience requirements
contained in the statutes and administrative rules of another
jurisdiction are equivalent to or exceed the education,
examination and experience requirements   { - contained in ORS
673.040, 673.050 and 673.060 and rules of the board issued
thereunder - }  { +  of the Uniform Accountancy Act + }; or
  (b) An individual's education, examination and experience
qualifications are equivalent to or exceed the education,
examination and experience requirements   { - contained in ORS
673.040, 673.050 and 673.060 and rules of the board issued
thereunder - }  { +  of the Uniform Accountancy Act + }.
  SECTION 2.  { + Section 3 of this 2001  + }  { +  Act is added
to and made a part of ORS 673.010 to 673.457. + }
  SECTION 3.  { + (1) The Oregon Board of Accountancy may
authorize a holder of a license with a principal place of
business in another state to practice public accountancy in this
state if the holder holds in good standing a valid certificate
and license as a certified public accountant from:
  (a) Another state that is verified to be of substantial
equivalency, as defined in ORS 673.010 (18)(a).
  (b) Another state that is not verified to be of substantial
equivalency, as defined in ORS 673.010 (18)(a), but the holder's
skills are verified to be of substantial equivalency, as defined
in ORS 673.010 (18)(b).
  (2) A holder authorized under subsection (1) of this section
shall be presumed to meet this state's requirements to practice
public accountancy and shall have all the rights and privileges
of certificate holders and licensees of this state without the
need to obtain a certificate under ORS 673.040 or a permit under
ORS 673.150.
  (3) A holder of a license from another state who is engaged in
the practice of public accountancy under this section shall:
  (a) Notify the board of the holder's intent to practice public
accountancy in this state on a form provided by the board;
  (b) Pay an annual fee in an amount and by the date determined
by the board by rule;
  (c) Consent to the personal and subject matter jurisdiction of
the board;
  (d) Comply with the requirements of ORS 673.010 to 673.457 and
any rules adopted thereunder; and
  (e) Agree to the appointment of the other state's licensing
authority as the agent of the holder, upon whom process may be
served in any action or proceeding by the board against the
holder. + }
  SECTION 3a. If Senate Bill 20 becomes law, section 3 of this
2001 Act is amended to read:
   { +  Sec. 3. + } (1) The Oregon Board of Accountancy may
authorize a holder of a license with a principal place of
business in another state to practice public accountancy in this
state if the holder holds in good standing a valid certificate
and license as a certified public accountant from:
  (a) Another state that is verified to be of substantial
equivalency, as defined in ORS 673.010   { - (18)(a) - }  { +
(21)(a) + }.
  (b) Another state that is not verified to be of substantial
equivalency, as defined in ORS 673.010   { - (18)(a) - }  { +
(21)(a) + }, but the holder's skills are verified to be of
substantial equivalency, as defined in ORS 673.010
 { - (18)(b) - }  { +  (21)(b) + }.
  (2) A holder authorized under subsection (1) of this section
shall be presumed to meet this state's requirements to practice
public accountancy and shall have all the rights and privileges
of certificate holders and licensees of this state without the
need to obtain a certificate under ORS 673.040 or a permit under
ORS 673.150.
 
  (3) A holder of a license from another state who is engaged in
the practice of public accountancy under this section shall:
  (a) Notify the board of the holder's intent to practice public
accountancy in this state on a form provided by the board;
  (b) Pay an annual fee in an amount and by the date determined
by the board by rule;
  (c) Consent to the personal and subject matter jurisdiction of
the board;
  (d) Comply with the requirements of ORS 673.010 to 673.457 and
any rules adopted thereunder; and
  (e) Agree to the appointment of the other state's licensing
authority as the agent of the holder, upon whom process may be
served in any action or proceeding by the board against the
holder.
  SECTION 4. ORS 673.040 is amended to read:
  673.040. (1) A certificate of certified public accountant shall
be granted to any applicant who meets the requirements of this
section and ORS 673.050 and 673.060 and who passes an examination
on the code of professional ethics adopted by the Oregon Board of
Accountancy.
  (2) An applicant for a certificate shall show that after
meeting the eligibility requirements for the examination required
by ORS 673.050, the applicant has had one year of experience,
meeting requirements prescribed by the board by rule, under the
direct supervision of a public accountant or of a certified
public accountant who is licensed and in good standing in this
state or another jurisdiction.
    { - (3) The board may issue a certificate to a holder in good
standing of a license of certified public accountant issued by
another state or by a foreign country upon a showing that the
holder meets requirements that are substantially equivalent to
the education, experience and other requirements that must be
satisfied for the issuance of a certificate of certified public
accountant under ORS 673.010 to 673.457. - }
    { - (4) - }  { +  (3) + } The board shall charge a fee for
each application for issuance of a certificate under this section
in an amount prescribed by the board by rule.
    { - (5) - }  { +  (4) + } The board by rule shall prescribe:
  (a) Information required of applicants regarding the practice
of public accountancy outside this state; and
  (b) Information required of licensees regarding changes in the
ability or authority of the licensee to practice public
accountancy.
    { - (6) - }  { +  (5) + } Any certified public accountant may
also be known as a 'public accountant.  '
  SECTION 5. ORS 673.075 is amended to read:
  673.075. (1) The Oregon Board of Accountancy may, in accordance
with its rules, grant credit to an applicant who has successfully
completed an examination given by the licensing authority in any
other state. The board may grant credit under this subsection if
the applicant has successfully completed an examination in any
two or more subjects described in ORS 673.060 or required by the
board to be part of the examination in this state.
  (2) Any examination for which credit is granted an applicant
under subsection (1) of this section shall be substantially
equivalent  { - , in the judgment of the board, to the most
recent examination given by the board at the time of the granting
of the credit - }  { +   + }  { +  to examination requirements
described in ORS 673.060 + }.
  SECTION 6. ORS 673.150 is amended to read:
  673.150. (1)   { - Permits - }  { +  A permit + } to engage in
the practice of public accountancy in this state shall be issued
by the Oregon Board of Accountancy biennially to   { - applicants
who are - }  { +  an applicant who is + }:
 
 
  (a)   { - Holders - }  { +  A holder + } of the certificate of
certified public accountant issued under ORS 673.040 to
673.075; { +  or + }
    { - (b) Holders of a license as defined in ORS 673.010 (7)(b)
issued by another jurisdiction, if the license requirements meet
the education, examination and experience requirements
established by the board by rule as substantially equivalent to
the requirements for a certificate under ORS 673.040, 673.050,
673.060 and 673.075; or - }
    { - (c) - }  { +  (b) A + } public   { - accountants - }
 { +  accountant + } licensed under ORS 673.100.
  (2) The board by rule shall cause all permits issued under this
section to be renewed biennially.
  (3) Applications for permits or for renewals of permits may be
submitted to the board on a form prescribed by the board within
such time periods as the board prescribes by rule. Applications
for permits or for renewals of permits shall be accompanied by a
fee determined by the board by rule.
  (4) Applications for renewals of permits shall be accompanied
by evidence satisfactory to the board that the applicant has
complied with continuing education requirements under ORS 673.165
unless those requirements have been waived by the board.
  (5) A permit that is not renewed by the close of the permit
period may be restored upon payment to the board of a delinquent
renewal fee in an amount determined by the board by rule. Any
permit that is not renewed within 60 days after the close of the
permit period for which it was issued or renewed shall lapse. The
board may restore a lapsed permit upon payment to it of all past
unpaid renewal fees and the delinquent renewal fee. However, the
board may restore a permit issued or renewed for a permit period
that ended more than five years prior to the date of the
application for restoration only upon demonstration satisfactory
to the board that the applicant is qualified to engage in the
practice of public accountancy.
  (6) Notwithstanding subsection (3) of this section, the board
may by rule prescribe a reduced fee for renewal of permits of
those certified public accountants and public accountants who
have reached the age of 65 years.
  SECTION 6a.  { + If Senate Bill 20 becomes law, section 1a,
chapter ___, Oregon Laws 2001 (Enrolled Senate Bill 20) (amending
ORS 673.150), is repealed. + }
  SECTION 7. ORS 673.160 is amended to read:
  673.160. (1) Business organizations of certified public
accountants or of public accountants shall register with the
Oregon Board of Accountancy if the business organization:
  (a) Uses the terms 'certified public accountants' or ' public
accountants' or abbreviations for such terms { +  in this
state + };
  (b) Holds itself out to clients  { + in this state + } or the
public  { +  in this state  + }as a business organization engaged
in the practice of public accountancy; or
  (c) Performs attestation  { + or compilation + } services { +
in this state + }.
  (2) Nothing in this section shall be construed to require a
holder of a permit under ORS 673.150 to register under this
section unless the permit holder:
  (a) Holds the permit holder out to clients  { + in this
state + } or the public  { + in this state + } as a business
organization composed of more than one licensee; or
  (b) Performs attestation  { + or compilation + } services { +
in this state + }.
  (3) Registrations shall be issued and renewed for periods of
not more than two years. Applications for registration shall be
made in a form prescribed by the board by rule. Applications for
renewal shall be made between the dates prescribed by the board
by rule.
  (4) The following requirements must be satisfied before a
registration may be issued or renewed under this section:
  (a) Notwithstanding any other provision of law, a simple
majority of the ownership of the business organization, in terms
of financial interests and voting rights of all partners,
officers, shareholders, members or managers, shall belong to
holders of permits or holders of certificates who are licensed in
any state, and the partners, officers, shareholders, members or
managers of the business organization whose principal place of
business is in this state and who perform public accountancy
services in this state, shall be holders of permits under ORS
673.150. If a majority of the ownership of the business
organization is held by holders of permits who are public
accountants holding licenses issued under ORS 673.100, the
business organization may not use the name 'CPA Firm' or any
similar name indicating that a majority of the ownership of the
firm holds certificates issued under ORS 673.040;
  (b) In the case of a business organization that includes owners
who are not holders of permits under ORS 673.150, a holder of a
permit in this state shall be responsible for the management and
proper registration of the business organization;
  (c) All owners of the business organization who are not holders
of permits under ORS 673.150 shall be active individual
participants in the business organization or affiliated entities;
and
  (d) Any person who is responsible for supervising attestation
 { +  or compilation + } services and who signs or authorizes
someone to sign the accountant's report on the financial
statements on behalf of the business organization in this state,
shall hold a permit under ORS 673.150 and meet the competency
requirements established by the board by rule.
  (5) An application for registration or renewal of registration
under this section shall:
  (a) List all states in which the business organization has
applied for or holds permits to practice public accountancy; and
  (b) Provide evidence that the requirements of subsection (4) of
this section are satisfied.
  (6) Each applicant for registration or renewal under this
section and each registrant shall notify the board in writing,
within the time period specified by the board by rule, of:
  (a) The identities of partners, officers, shareholders,
members, managers or owners of the business organization who work
regularly in this state;
  (b) The number or location of offices in this state;
  (c) The identity of the persons in charge of the offices { +
in this state + };
  (d) Any issuance, denial, revocation, lapse or suspension of
authority to perform professional or other services in any
jurisdiction against a partner, officer, shareholder, member,
manager or owner of the applicant or registrant { +  that seeks
registration or is registered in this state + }; and
  (e) The filing of a lawsuit relating to professional services
of the business organization, the commencement of any civil
action an essential element of which involves fraud, dishonesty
or misrepresentation, or of any criminal action against the
applicant or registrant  { + that seeks registration or is
registered in this state + } or against a partner, officer,
shareholder, member, manager or owner of the applicant or
registrant { +  that seeks registration or is registered in this
state + }.
  (7) The board shall charge a fee for each application for
issuance or renewal of registration under this section in an
amount prescribed by the board by rule.
  (8) Applicants for renewals of registrations under this section
shall undergo a peer review as provided under ORS 673.455, unless
the registrant notifies the board that the registrant is exempt
from peer review requirements because the registrant does not
perform attestation  { + or compilation + } services { +  in this
state + }.
  SECTION 8. ORS 673.170 is amended to read:
  673.170. (1) The Oregon Board of Accountancy may take any of
the following disciplinary actions:
  (a) Revoke, suspend or refuse to issue any certificate issued
under ORS 673.040 to 673.075.
  (b) Revoke, suspend or refuse to issue any public accountant's
license issued under ORS 673.100.
  (c) Revoke, suspend, refuse to renew or refuse to issue any
permit described in ORS 673.150.
   { +  (d) Revoke, suspend, refuse to renew or refuse to issue
authorization to practice public accountancy in this state under
section 3 of this 2001 Act. + }
    { - (d) - }  { +  (e) + } Censure the holder of any permit
described in ORS 673.150 { +  or authorization described in
section 3 of this 2001 Act + }.
    { - (e) - }  { +  (f) + } Revoke, suspend, refuse to renew or
refuse to issue any registration issued under ORS 673.160.
    { - (f) - }  { +  (g) + } Censure the holder of any
registration issued under ORS 673.160.
  (2) The board may take any of the actions described in
subsection (1) of this section for any one or any combination of
the following causes:
  (a) Fraud or deceit in obtaining or applying for:
  (A) A certificate under ORS 673.040 to 673.075;
  (B) A public accountant's license under ORS 673.100;
  (C) A registration under ORS 58.345 or 673.160;
  (D) A permit under ORS 673.150;   { - or - }
   { +  (E) Authorization to practice public accountancy in this
state under the provisions of section 3 of this 2001 Act; or + }
    { - (E) - }  { +  (F) + } Admission to the roster of
authorized accountants referred to in ORS 297.670.
  (b) Dishonesty, fraud or gross negligence in the practice of
public accountancy.
  (c) Incompetence in the practice of public accountancy. A
holder of a license issued under ORS 673.100, certificate, permit
or registration is incompetent in the practice of public
accountancy if the holder:
  (A) Engages or has engaged in conduct that evidences a lack of
ability or fitness to discharge the duty owed to a client or the
general public; or
  (B) Engages or has engaged in conduct that evidences a lack of
knowledge or ability to apply principles or skills of the
practice of public accountancy, as adopted by the board.
  (d) Violation of any of the provisions of ORS 673.010 to
673.457.
  (e) Violation of any of the provisions of ORS 297.405 to
297.555.
  (f) Violation of any provision of the Code of Professional
Conduct adopted by the board under the authority granted by ORS
673.010 to 673.457, or rules adopted by the board under ORS
670.310.
  (g) Conduct resulting in a conviction of a felony under the
laws of any state, of any foreign jurisdiction or of the United
States. However, such conduct may be considered only to the
extent permissible under the provisions of ORS 670.280.
  (h) Conviction of any crime, an essential element of which is
dishonesty, fraud or misrepresentation, under the laws of any
state, of any foreign jurisdiction or of the United States.
  (i) Conviction of willful failure to pay any tax, file any tax
return, keep records or supply information required under the tax
laws of any state, of any foreign jurisdiction or of the United
States, or conviction of the willful making, rendering, delivery,
disclosure, signing or verifying of any false or fraudulent list,
return, account, statement or other document, or of supplying any
false or fraudulent information, required under the tax laws of
any state, of any foreign jurisdiction or of the United States.
  (j) Cancellation, revocation, suspension or refusal to renew,
authority to practice as a certified public accountant or a
public accountant in any state or foreign jurisdiction.
  (k) Cancellation, suspension, revocation or refusal to renew by
any state, any foreign jurisdiction or any federal agency of the
right to practice law, to practice as an enrolled agent before
the Internal Revenue Service pursuant to 31 C.F.R. part 10, or to
practice under other regulatory law if the cancellation,
suspension, revocation or refusal to renew was related to the
practice of public accountancy or if dishonesty, fraud or
deception was involved.
  (L) Failure to comply with the continuing education
requirements under ORS 673.165 unless such requirements have been
waived by the board.
  (m) Failure to pay a civil penalty imposed by the board after
the period for requesting a hearing on the civil penalty
terminates if the person or business organization against whom
the penalty is imposed has not requested a hearing, or after the
period for seeking judicial review of the order assessing the
civil penalty has passed.
  (n) Failure to comply with the terms of a consent agreement
described in subsection (3) of this section.
  (o) Failure to comply with any reporting or other requirement
established by the board by rule.
  (3) In lieu of disciplinary actions under subsection (1) of
this section, the board may enter into a consent agreement with
the holder of any certificate described in ORS 673.040 to
673.075, the holder of any public accountant's license, the
holder of any registration described in ORS 673.160,   { - or - }
the holder of any permit described in ORS 673.150  { - , - }
 { + or the holder of any authorization described in section 3 of
this 2001 Act,  + }under which the holder   { - of any
certificate, license, registration or permit - } agrees to comply
with conditions prescribed by the board.
  (4) In addition to the causes in subsection (2) of this
section, the board may take any of the actions described in
subsection (1) of this section for dishonesty, fraud or
misrepresentation not in the practice of public accountancy.
  (5) In lieu of or in addition to any action described in
subsection (1) of this section, the board may take any of the
following actions:
  (a) Require a  { + holder of a permit under ORS 673.150 that
provides compilation services or a + } business organization
registered under ORS 673.160 to undergo a peer review conducted
as the board may specify; or
  (b) Require a holder of a permit under ORS 673.150 to complete
any continuing professional education programs the board may
specify.
  (6) In the case of a registered business organization, the
board may take any of the actions described in subsection (1) of
this section for any of the following additional causes:
  (a) The cancellation, revocation or suspension of, or refusal
to renew, the authority to provide professional services, in this
state or any other jurisdiction, of any partner, officer,
shareholder, member, manager or owner of the business
organization; or
  (b) The cancellation, revocation or suspension of, or refusal
to renew, the authority of the business organization to practice
public accountancy or provide other professional services in any
other state or foreign jurisdiction.
  (7) Notwithstanding any protective order issued under ORCP 36
C, upon motion of the board, the court shall order disclosure of
materials or information subject to a protective order under ORCP
36 C. The board may use the material or information to take
disciplinary action under this section.
  SECTION 9. ORS 673.185 is amended to read:
  673.185. (1)   { - Where - }   { + When + } the Oregon Board of
Accountancy proposes to refuse to issue a certificate { +  under
ORS 673.040 + }, license under ORS 673.100, permit  { + under ORS
673.150, + }   { - or - } registration { +  under ORS 673.160 or
authorization under section 3 of this 2001 Act + }, proposes to
refuse to renew a permit or registration or proposes to revoke or
suspend a certificate, registration, license { + , + }
 { - issued under ORS 673.100 or - }  permit { +  or
authorization + }, opportunity for hearing shall be accorded as
provided in ORS 183.310 to 183.550 and chapter 734, Oregon Laws
1971.
   { +  (2) When the board institutes or continues a disciplinary
action under ORS 673.170, the surrender, retirement or other
forfeiture, expiration, lapse or revocation of a license issued
by the board does not deprive the board of its authority to
institute or continue the disciplinary action against the
licensee. + }
    { - (2) - }  { +  (3) + } Adoption of rules, conduct of
hearings, issuance of orders and judicial review of rules and
orders shall be in accordance with ORS 183.310 to 183.550 and
chapter 734, Oregon Laws 1971.
    { - (3) - }  { +  (4) + } The decision of the board under
subsection (1) of this section shall be by majority vote.
  SECTION 10. ORS 673.320 is amended to read:
  673.320. (1) A person or business organization in this state
shall not provide attestation  { + or compilation  + }services
for or issue a report on financial statements of any other
person, firm, organization or governmental unit unless the person
or business organization holds a permit or registration issued
under ORS 673.010 to 673.457. The prohibitions of this subsection
do not apply to:
  (a) An officer, partner, employee, shareholder, member, manager
or owner of any firm or organization affixing that person's own
signature to any statement or report in reference to the
financial affairs of the firm or organization with wording
designating the position, title or office that the person holds
in the firm or organization;
  (b) Any act of a public official or employee in the performance
of official duties; or
  (c) The performance by any person, other than a licensee or
registrant, of other services, including the preparation of tax
returns, management advisory services and the preparation of
financial statements, without the issuance of reports thereon.
  (2) Any transmission of financial statements or information
using language as specified in ORS 673.325 or as adopted by the
Oregon Board of Accountancy by rule under this subsection shall
not be considered a report.
  (3) A person shall not assume or use the title or designation '
certified public accountant,' or the abbreviation 'CPA,' or any
other title, designation, words, letters, abbreviation, sign,
card or device tending to indicate that the person is a certified
public accountant, unless the person holds a valid certificate of
certified public accountant issued under ORS 673.040 and a permit
issued pursuant to ORS 673.150.
  (4) A business organization shall not assume or use the title
or designation 'certified public accountant,' or the abbreviation
'CPA,' or any other title, designation, words, letters,
abbreviation, sign, card or device tending to indicate that the
business organization is composed of certified public accountants
unless the business organization is registered under ORS 673.160.
  (5) A person shall not assume or use the title or designation '
public accountant,' or the abbreviation 'PA,' or any other title,
designation, words, letters, abbreviation, sign, card or device
tending to indicate that the person is a public accountant unless
that person holds a valid license issued under ORS 673.100 and
permit issued under ORS 673.150.
  (6) A business organization shall not assume or use the title
or designation 'public accountant,' or the abbreviation 'PA, ' or
any other title, designation, words, letters, abbreviation, sign,
card or device tending to indicate that the business organization
is composed of public accountants, unless the business
organization is registered under ORS 673.160.
  (7) A person or business organization shall not assume or use
any title or designation likely to be confused with the titles '
certified public accountant' or 'public accountant,' or any
abbreviations likely to be confused with the abbreviations 'CPA '
or 'PA,' unless the person or business organization holds a valid
permit or registration issued under ORS 673.010 to 673.457.  This
subsection does not restrict the use of any title, designation or
abbreviation awarded by institutions that are recognized by the
board by rule.
  (8) A person or business organization shall not assume or use
any title or designation that includes the words 'accountant, ' '
auditor' or 'accounting' in connection with any other wording,
including that of a report, that implies that the person or
business organization holds a permit or registration or has
special competence as an accountant or auditor, unless the person
or business organization holds a permit or registration issued
under ORS 673.010 to 673.457. This subsection does not prohibit:
  (a) A partner, officer, employee, shareholder, member, manager
or owner of any firm or organization from affixing that person's
own signature to any statement or report in reference to the
financial affairs of the firm or organization with wording
designating the position, title or office that the person holds
in the firm or organization;
  (b) Any act of a public official or employee in the performance
of official duties; or
  (c) Use of the words 'accountant' or 'accounting' by a person
or business offering services that are not restricted to a person
or business organization holding a license or permit to practice
public accountancy.
  (9) A person or business organization holding a permit or
registration under ORS 673.010 to 673.457 shall not use a
professional or business name or designation that is misleading
about the legal form of the business organization, about the
persons who are partners, officers, shareholders, members,
managers or owners of the business organization or about any
other matter. The board by rule may specify the appropriate use
by licensees of abbreviations and initials in a professional or
business name. Notwithstanding any provision of this subsection,
the names of one or more former partners, shareholders, members
or managers may be included in the name of a registered business
organization or its successor.
  (10) A person holding a permit issued under ORS 673.150 shall
not perform attestation  { + or compilation + } services in any
business organization that does not hold a valid registration
under ORS 673.160.
  (11) Subsections (1) to (10) of this section apply to a person
or business organization holding a certification, license,
permit, designation or degree granted in another jurisdiction
entitling the holder to engage in the practice of public
accountancy or its equivalent in the other jurisdiction unless:
  (a) The activities of the person or business organization in
this state are limited to the provision of professional services
to clients in this state, where the clients are residents of,
governments of or business entities in the other jurisdiction in
which the person holds the entitlement;
  (b) The person or business organization does not provide
attestation  { + or compilation + } services or issue reports
regarding the financial statements of any other persons,
organizations or governmental units in this state; and
  (c) The person or business organization does not hold out to
clients, potential clients or the public in this state that the
person or business organization is licensed or registered under
ORS 673.010 to 673.457 and does not use any title or designation
other than the one under which the person or business
organization practices in the other jurisdiction, followed by the
name of the other jurisdiction and, if applicable, any
translation of the title or designation into the English
language.
  SECTION 11. ORS 673.325 is amended to read:
  673.325. The following statement signed by a person who does
not hold a permit issued under ORS 673.150  { + or the
authorization granted under section 3 of this 2001 Act  + }shall
not constitute a report under ORS 673.320, so long as the
statement is not accompanied by any wording indicating the person
is an accountant or auditor or other language prohibited by ORS
673.310 or 673.320:
  ' The accompanying balance sheet of XYZ Company as of ___, 2__,
and the related statements of income (or retained earnings or
cash flow) for the year then ended have been prepared by me (us).
  ' The information presented in these financial statements is
the representation of management (owners). '
  SECTION 12. ORS 673.455 is amended to read:
  673.455. (1) The Oregon Board of Accountancy shall appoint a
Peer Review Oversight Committee. The board may also approve
applications for operation of alternative peer review programs
such as programs provided by the American Institute of Certified
Public Accountants and the National Society of Accountants.
  (2) Each  { + holder of a permit under ORS 673.150 and each + }
business organization registered under ORS 673.160 that performs
attestation  { + or compilation + } services shall participate in
a peer review program described in this section. The peer review
shall be conducted by the board or by an alternative peer review
program approved by the board under subsection (1) of this
section.
  (3) The members of the committee serve at the pleasure of the
board.
  (4) A member of the committee appointed under this section is
entitled to compensation and expenses as provided in ORS 292.495.
  (5) The committee also may review:
  (a) Any financial statement or report filed with the state or
any political subdivision and prepared by a certified public
accountant or public accountant; and
  (b) Any procedure, working paper or supporting document
relating to the financial statement or report.
  (6) If the client grants permission or if all information
identifying the client has been removed, the committee also may
review any financial statement not described in subsection (5) of
this section and prepared by a licensee, or any procedure,
working paper or supporting document relating to the financial
statement.
  (7) The failure or refusal by any licensee to comply with a
request for review or explanation, or both, of such financial
statement as set forth in this section constitutes a violation of
ORS 673.170 (2)(b).
  SECTION 13. ORS 673.457 is amended to read:
  673.457. A review of the accountancy practice of a  { + holder
of a permit under ORS 673.150 that provides compilation services
or of a + } registered business organization by an alternative
peer review program approved under ORS 673.455 shall not preclude
the Oregon Board of Accountancy from conducting a review of
specified aspects of the professional services of any licensee
affiliated with the  { + permit holder or + } business
 
organization or of the  { + permit holder or + } business
organization itself.
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