74th OREGON LEGISLATIVE ASSEMBLY--2007 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 870
 
                         Senate Bill 68
 
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 Theodore R.
  Kulongoski 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 as
introduced.
 
  Makes conduct that interferes with reporting of certain acts to
Oregon Board of Accountancy or with cooperation with board during
investigation basis for discipline of licensee.
 
                        A BILL FOR AN ACT
Relating to grounds for discipline of licensee of Oregon Board of
  Accountancy; amending ORS 673.170.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. 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
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 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.
  (p) Issuance of a cease and desist order against the person
under subsection (7) of this section.
   { +  (q) Conduct that is intended to persuade, frustrate,
discourage, intimidate or otherwise prevent a client or another
person from reporting conduct by a licensee that might be the
basis for disciplinary action under this subsection or from
cooperating with the board when the board conducts an
investigation. + }
  (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 ORS 673.173, 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.
  (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.
  (9) If the board takes disciplinary action under this section,
the board may assess against the person disciplined costs
associated with the disciplinary action. An assessment under this
subsection is in addition to, and not in lieu of, any other
action taken by the board. Moneys collected under this subsection
shall be deposited in the Oregon Board of Accountancy Account
established in the General Fund pursuant to ORS 670.335.
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