Chapter 39 Oregon Laws 2005
AN ACT
HB 2195
Relating to accountancy; creating new provisions; and amending ORS 673.170, 673.220, 673.360, 673.400 and 673.455.
Be It Enacted by the People of the State of
SECTION 1. ORS 673.170 is amended to read:
673.170. (1) The
(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 ORS 673.153.
(e) Censure the holder of any permit described in ORS 673.150 or authorization described in ORS 673.153.
(f) Revoke, suspend, refuse to renew or refuse to issue any registration issued under ORS 673.160.
(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;
(E) Authorization to practice public accountancy in this state under the provisions of ORS 673.153; or
(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
(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
(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.
(p) Issuance of a cease and desist order against the person under subsection (7) of this section.
(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, the holder of any permit described in ORS 673.150 or the holder of any authorization described in ORS 673.153, under which the holder 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)
If the board has reasonable cause to believe that any person has engaged, is
engaging or is about to engage in any violation of any provision of ORS 673.010
to 673.457 or any rule or order adopted under ORS 673.010 to 673.457, the board
may
issue an order, subject to section 3 of this 2005 Act, directed to the person, and to any other person directly or indirectly controlling the person, to cease and desist from the violation or threatened violation.
[(7)] (8) 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 2. Section 3 of this 2005 Act is added to and made a part of ORS 673.010 to 673.457.
SECTION
3. (1) A cease and desist order
issued under ORS 673.170 shall include the following:
(a)
A statement of the facts constituting the violation.
(b)
A provision requiring the person named in the order to cease and desist from
the violation.
(c)
The effective date of the order.
(d)
A notice to the person named in the order of the right to a contested case
hearing under ORS chapter 183.
(2) An order under this section shall be effective 30 days after the date of the order unless the person named in the order requests a hearing on the order.
SECTION 4. ORS 673.360 is amended to read:
673.360. (1) Whenever in the judgment of the Oregon Board of Accountancy any person has engaged, or is about to engage, in any acts or practices [which] that constitute or may constitute a violation of any of the provisions of ORS 673.010 to 673.457, the board may [make application] apply to the [appropriate] court for an order enjoining [such] the acts or practices, and upon a showing by the board that [such] the person has engaged, or is about to engage, in any such acts or practices, an injunction, restraining order [,] or [such] other order [as] may be granted by the court without bond.
(2) The board may apply to the court for an injunction against a person for failure to comply with a cease and desist order.
SECTION 5. ORS 673.400 is amended to read:
673.400. (1) Any person who violates any provision of ORS 673.010 to 673.457, [or] any rule adopted thereunder or any order of the Oregon Board of Accountancy shall forfeit and pay a civil penalty into the General Fund to be credited to the Oregon Board of Accountancy for its use in carrying out the provisions of this section. The civil penalty shall be in an amount determined by the board of not more than $5,000 for each offense.
(2) The board may impose a civil penalty as part of a cease and desist order issued under ORS 673.170 (7). The civil penalty may not exceed $5,000 per violation.
[(2)] (3) The civil penalty may be recovered by the Attorney General in an action brought in the name of the State of Oregon in any court of appropriate jurisdiction or may be imposed as provided in ORS 183.745.
[(3)] (4) The provisions of this section are in addition to and not in lieu of any other penalty provided by law.
SECTION 6. ORS 673.220 is amended to read:
673.220. (1) The
(2) A licensee granted inactive status by the board:
(a) [Shall] Must pay any fee in an amount determined by the board by rule for becoming or remaining inactive or becoming active.
(b) [Shall] May not hold the licensee out to clients or the public as a certified public accountant or a public accountant or otherwise engage in the practice of public accountancy until restored to active status.
(3) The board by rule shall adopt procedures and requirements for granting and renewing inactive status and for restoring to active status any licensee on inactive status.
(4) The board may restore a lapsed permit to inactive status upon payment to it of all past unpaid renewal fees and the delinquent renewal fee as provided in ORS 673.150 (5).
(5) The board shall maintain a current roster of all licensees granted inactive status.
SECTION 7. ORS 673.455 is amended to read:
673.455. (1) The
(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 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; and
(c) Any peer review 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
8. (1) Section 3 of this 2005
Act and the amendments to ORS 673.170, 673.360 and 673.400 by sections 1, 4 and
5 of this 2005 Act apply to violations or failures to comply that occur on or
after the effective date of this 2005 Act.
(2)
The amendments to ORS 673.220 by section 6 of this 2005 Act apply to certified
public accountants and public accountants licensed before, on or after the
effective date of this 2005 Act.
(3) The amendments to ORS 673.455 by section 7 of this 2005 Act apply to peer review reports completed prior to, on or after the effective date of this 2005 Act.
Approved by the Governor Approved by the Governor May 13, 2005
Filed in the office of Secretary of State Filed in the office of Secretary of State May 13, 2005
Effective date Effective date January 1, 2006
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