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 499
 
                         Senate Bill 182
 
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 and Office of
  Regulatory Streamlining of Department of Consumer and Business
  Services)
 
 
                             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.
 
  Authorizes Oregon Board of Accountancy to grant extension of
time for business organizations of certified public accountants
or public accountants to comply with ownership requirement for
registration with board.
 
                        A BILL FOR AN ACT
Relating to registration requirements of accounting businesses;
  amending ORS 673.160.
Be It Enacted by the People of the State of Oregon:
  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.
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