Chapter 305
AN ACT
SB 182
Relating to registration requirements of
accounting businesses; amending ORS 673.160.
Be It Enacted by the People of
the State of
SECTION 1. 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)(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 “C.P.A. Firm”
or any similar name indicating that a majority of the ownership of the firm
holds certificates issued under ORS 673.040[;].
(B) A business
organization registered under this section that does not meet the ownership
requirement specified in subparagraph (A) of this paragraph may request an
extension of time to comply with the ownership requirement in accordance with
the process for granting an extension for compliance that the board shall adopt
by rule.
(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. A registration under
this section that is not renewed by the close of the registration period may be
restored upon payment to the board of a delinquent renewal fee in an amount
determined 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.
Approved by the Governor June 7, 2007
Filed in the office of Secretary of State June 7, 2007
Effective date January 1, 2008
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