Bill Text: OR SB778 | 2011 | Regular Session | Introduced
Bill Title: Relating to refund anticipation loans; declaring an emergency.
Spectrum: Moderate Partisan Bill (Democrat 9-2)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB778 Detail]
Download: Oregon-2011-SB778-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 280 Senate Bill 778 Sponsored by Senators DINGFELDER, TELFER, Representatives KOTEK, BREWER; Senator ROSENBAUM, Representatives DEMBROW, DOHERTY, FREDERICK, HOLVEY, HOYLE, KOMP 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. Requires facilitators of income tax refund anticipation loans and refund anticipation payment instruments to obtain license from State Board of Tax Practitioners. Requires filing and posting certain disclosures. Prohibits certain activities. Punishes violations by maximum of one year's imprisonment, $6,250 fine, or both. Becomes operative January 1, 2012. Declares emergency, effective on passage. A BILL FOR AN ACT Relating to refund anticipation loans; creating new provisions; amending ORS 673.605, 673.610, 673.615, 673.700, 673.730 and 673.990; repealing ORS 673.712; and declaring an emergency. Be It Enacted by the People of the State of Oregon: SECTION 1. { + Sections 2, 3, 4, 5, 6 and 7 of this 2011 Act are added to and made a part of ORS 673.605 to 673.740. + } SECTION 2. { + (1) A licensee shall file with the State Board of Tax Practitioners a corporate surety bond or irrevocable letter of credit in the sum of $25,000 that runs to the State of Oregon. The corporate surety bond or irrevocable letter of credit must be issued by a corporate surety or an insured institution, as defined in ORS 706.008, that is authorized to do business in this state. (2) The liability of the corporate surety or insured institution that issued the surety bond or irrevocable letter of credit continues until two years after the licensee ceases to conduct business in this state or until the bond or irrevocable letter of credit is canceled, whichever is later. The corporate surety or insured institution shall give the board at least 30 days' written notice before canceling or terminating liability under the surety bond or irrevocable letter of credit. The licensee, in order to comply with this section, shall ensure that the full amount of the surety bond or irrevocable letter of credit required under this section is available at all times. (3) The aggregate liability of the corporate surety or insured institution may not exceed the principal sum of the surety bond or irrevocable letter of credit. + } SECTION 3. { + (1) If at the time an applicant or a licensee applies for or applies to renew a license under ORS 673.605 to 673.740 the licensee or applicant offers or intends to offer refund anticipation loans to consumers, the applicant or licensee shall file with the State Board of Tax Practitioners schedules that disclose for the succeeding year: (a) The interest rates that lenders for which the applicant or licensee facilitates refund anticipation loans will charge; and (b) The fees that the applicant or licensee will charge for preparing tax returns and for filing tax forms electronically. (2) If at any point after the applicant obtains or the licensee renews a license under ORS 673.605 to 673.740 the applicant or licensee learns of or makes a change to a rate, charge or percentage that the applicant or licensee disclosed under subsection (1) of this section, the applicant or licensee within 15 business days after learning of or making the change shall file with the board an amendment that sets forth the corrected rate, charge or percentage. (3) In each location where the licensee conducts business as a facilitator, the licensee shall display in public view: (a) A schedule of the lender's current interest rates for refund anticipation loans; (b) A schedule of the licensee's fees for preparing tax returns and for filing tax forms electronically; and (c) A notice in which the licensee states that the licensee may not require a taxpayer to obtain a refund anticipation loan or refund anticipation payment instrument as a condition of filing the taxpayer's tax return electronically and that the fee for filing a tax return electronically does not depend on whether the taxpayer has obtained a refund anticipation loan or refund anticipation payment instrument. (4) The licensee may not conduct business as a facilitator unless the licensee displays in each location where the licensee conducts business as a facilitator the schedules and the notice described in subsection (3) of this section and unless the licensee ensures that the lender charges and that the consumer pays only the interest rate for a refund anticipation loan that the licensee both displays on the schedule and discloses to the consumer, as provided in section 4 of this 2011 Act. + } SECTION 4. { + (1)(a) A licensee shall disclose to a consumer, in the manner described in subsection (3) of this section and at the time the consumer applies for a refund anticipation loan or a refund anticipation payment instrument, all of the items set forth in subsection (2) of this section. (b) In making a disclosure under this section, the licensee shall calculate the annual percentage rate as defined by the federal Truth in Lending Act, 15 U.S.C. 1601 et seq., as in effect on the effective date of this 2011 Act, except that, notwithstanding the definition set forth for the annual percentage rate under the Act, the annual percentage rate that the licensee calculates and discloses under this section must include all fees that the lender charges in connection with the refund anticipation loan. (2) The licensee must disclose: (a) The fees that the licensee will charge for preparing a tax return or filing tax forms electronically. (b) A list or table that shows examples of the amounts that the licensee and the lender will charge in fees and in interest for refund anticipation loans of $500, $750, $1,000, $1,500, $2,000 and $3,000. For each example, the list or table must disclose separately the amount of each lender's fee, the annual percentage rate for the loan and the total amount of money a consumer would pay in fees and in interest for the loan. (c) The lender's fees, interest rate and annual percentage rate for the refund anticipation loan that the consumer will pay if approved. If a consumer, as a condition of obtaining the loan, must establish or maintain a deposit account with the lender to receive the consumer's tax refund and thereby to offset the amount the consumer owes on the loan, the maturity date of the loan for the purpose of determining the annual percentage rate disclosure under this section, regardless of the annual percentage rate disclosure that the federal Truth in Lending Act requires, is the estimated date on which the tax refund will be deposited in the consumer's account. (d) The time at which the consumer will receive the amount loaned if the lender approves the loan. (e) A notice in which the licensee discloses: (A) The average amount of time in which a person that files a tax return electronically in the current filing year can expect to receive a tax refund deposited directly into the person's bank account, according to information available from state and federal taxing authorities; (B) The average amount of time in which a person that files a tax return electronically in the current filing year can expect to receive a tax refund mailed to the person, according to information provided by state and federal taxing authorities; and (C) The difference, in days, between the time at which the consumer would receive the loan amount from a refund anticipation loan, as disclosed in accordance with paragraph (d) of this subsection, and the time by which, on average, a person that files a tax return electronically will receive a refund from the taxing authority deposited directly to the person's deposit account, without applying for or receiving a refund anticipation loan. (f) A notice in which the licensee states that: (A) A refund anticipation payment instrument is not necessary if the consumer has an account in a depository institution; (B) The state and federal taxing authorities do not guarantee that the consumer will receive the full amount of an anticipated tax refund or that the consumer will receive a refund on a specific date; (C) A refund anticipation loan is a loan and not the consumer's actual tax refund; and (D) The consumer is responsible for repaying the loan and related fees and interest from other money or assets the consumer has if the consumer does not receive a tax refund or the anticipated full amount of the tax refund. (3)(a) The facilitator must make the disclosures described in subsection (2) of this section orally and in writing on a form separate from the application form. If the facilitator solicits or conducts negotiations with the consumer concerning a refund anticipation loan or refund anticipation payment instrument in a language other than the English language, the facilitator shall make the disclosures described in this section in writing in the English language and orally and in writing in the language in which the facilitator solicited or conducted negotiations with the consumer concerning the refund anticipation loan or refund anticipation payment instrument. (b) The licensee shall make a written disclosure required under subsection (2) of this section on a form that the State Board of Tax Practitioners specifies by rule. + } SECTION 5. { + (1) The State Board of Tax Practitioners by rule shall specify the form and content for the schedules and disclosures required in sections 3 and 4 of this 2011 Act, except for information in the schedules or disclosures that the licensee must fill in or supply. (2) The board shall make the forms for the schedules and disclosures described in subsection (1) of this section available to licensees in the three languages other than the English language that are most commonly spoken in this state. + } SECTION 6. { + A licensee, while acting as a facilitator, may not: (1)(a) Charge a consumer a fee of any type in a transaction related to a refund anticipation loan or refund anticipation payment instrument. The licensee may charge a fee in a transaction related to a refund anticipation loan or refund anticipation payment instrument only if the fee is a fee that the lender imposes for originating or processing the refund anticipation loan or refund anticipation payment instrument. The licensee shall remit the amount of a lender's fee to the lender. (b) This subsection does not preclude a facilitator from charging a fee or other consideration that the facilitator usually charges or imposes in the ordinary course of business for services that are not connected with a refund anticipation loan or refund anticipation payment instrument, such as a fee for preparing a tax return or filing a tax return electronically. (2) Misrepresent a term, condition or material fact associated with an agreement for a refund anticipation loan or refund anticipation payment instrument. (3) Fail to arrange for a refund anticipation loan promptly after a consumer applies for the loan or fail to deliver a refund anticipation loan approved by the lender to the consumer within 48 hours after the time disclosed in accordance with section 4 (2)(d) of this 2011 Act. (4) Require a taxpayer to obtain a refund anticipation loan or refund anticipation payment instrument in exchange for filing the taxpayer's tax return electronically or in exchange for a reduction or discount in any fee the licensee charges for preparing or filing the taxpayer's tax return. (5) Engage in a fraudulent transaction, practice or course of business in connection with a refund anticipation loan or refund anticipation payment instrument. (6) Facilitate a refund anticipation loan for which the annual percentage rate, calculated and disclosed as provided in section 4 (1)(b) of this 2011 Act, exceeds 36 percent. (7) Facilitate a refund anticipation loan for which the lender charges more interest than the licensee indicated in schedules filed with the board under section 3 of this 2011 Act. (8) Facilitate a loan that a lender secures with or arranges to have repaid directly from the proceeds of a tax refund a consumer receives from the State Treasury. (9) Collect or facilitate in collecting, alone or in conjunction with another person, an outstanding or delinquent refund anticipation loan for a lender or other creditor, or an assignee of the lender or creditor. For the purposes of this subsection, soliciting, processing, receiving or accepting an application for a refund anticipation loan or refund anticipation payment instrument in which a contract provision or other agreement permits the lender, creditor or assignee to receive payment for an outstanding or delinquent refund anticipation loan by offset or other means constitutes facilitating the collection of the outstanding or delinquent refund anticipation loan. (10) Direct, or arrange for the direction of, any portion of the amount that a consumer pays toward a refund anticipation loan into paying fees or charges for check cashing, credit insurance or other goods or services unrelated to preparing and filing tax returns or facilitating the refund anticipation loan. (11) Take, or arrange for another person to take, an interest in property of the consumer other than the proceeds of the consumer's tax refund as security for the payment of the refund anticipation loan. (12) Engage in unconscionable activity. (13) Violate a rule or order that the board adopts or issues under this section or section 2, 3, 4, 5 or 7 of this 2011 Act, or violate a consent agreement between the licensee and the board. + } SECTION 7. { + Sections 2, 3, 4, 5 and 6 of this 2011 Act do not apply to a person that does not deal directly with taxpayers or consumers but that acts solely as an intermediary between a facilitator and a lender or between a facilitator and a state or federal taxing authority by processing or transmitting, electronically or otherwise, tax or credit information or by preparing a payment instrument by means of which a facilitator delivers a refund anticipation loan to a consumer. + } SECTION 8. ORS 673.605 is amended to read: 673.605. As used in ORS 673.605 to 673.740 { + : + } { - unless the context requires otherwise: - } { - (1) 'Board' means the State Board of Tax Practitioners created by ORS 673.725. - } { - (2)(a) 'Facilitator' means a person that individually or in conjunction or cooperation with another person processes, receives or accepts for delivery an application for a refund anticipation loan or a check in payment of refund anticipation loan proceeds or in any other manner materially facilitates the making of a refund anticipation loan. - } { - (b) 'Facilitator' does not mean a financial institution as defined in ORS 706.008, a person who has been issued a license under ORS chapter 725, an affiliate that is a servicer for a financial institution or for a person issued a license under ORS chapter 725, a person issued a certificate as a certified public accountant or licensed as a public accountant by the Oregon Board of Accountancy, or any person that acts solely as an intermediary and does not deal with a taxpayer in the making of a refund anticipation loan. - } { - (3) 'Lender' means a person that makes a refund anticipation loan with the person's own funds or a line of credit or other funding from a financial institution as defined in ORS 706.008, but does not include a financial institution as defined in ORS 706.008. - } { - (4) 'Refund anticipation loan' means a loan that the lender arranges to be repaid directly from the proceeds of the taxpayer's federal or state personal income tax refund. - } { - (5)(a) 'Refund anticipation loan fee' means the charges, fees or other consideration charged or imposed by the lender or facilitator for the making of a refund anticipation loan. - } { - (b) 'Refund anticipation loan fee' does not mean any charge, fee or other consideration usually charged or imposed by the facilitator in the ordinary course of business for nonloan services, including fees for tax return preparation and fees for electronic filing of tax returns. - } { - (6) 'Tax consultant' means a person who is licensed under ORS 673.605 to 673.740 to prepare or advise or assist in the preparation of personal income tax returns for another and for valuable consideration. - } { - (7) 'Taxpayer' means an individual who files a federal or Oregon personal income tax return. - } { - (8) 'Tax preparer' means any person who is licensed under ORS 673.605 to 673.740 as a tax preparer. - } { + (1) 'Consumer' means an individual who, alone or together with another individual: (a) Receives a solicitation for a refund anticipation loan from a facilitator; (b) Applies for a refund anticipation loan; or (c) Receives from a facilitator or lender approval for or funds in connection with a refund anticipation loan or refund anticipation payment instrument. (2) 'Facilitator' means: (a) A person that alone or in conjunction or cooperation with another person: (A) Solicits or conducts negotiations in connection with an application for a refund anticipation loan or refund anticipation payment instrument; (B) Receives, accepts or processes an application for a refund anticipation loan or refund anticipation payment instrument; (C) Services or collects proceeds from a refund anticipation loan or refund anticipation payment instrument on behalf of another person; or (D) Facilitates a refund anticipation loan or refund anticipation payment instrument in any other manner. (b) A lender that, without the assistance or cooperation of another person, directly: (A) Solicits or conducts negotiations in connection with an application for a refund anticipation loan or refund anticipation payment instrument; (B) Receives, accepts or processes an application for a refund anticipation loan or refund anticipation payment instrument; (C) Collects for the lender's own benefit a fee, charge or other consideration, other than interest due the lender from a refund anticipation loan, for services related to receiving, accepting or processing an application for a refund anticipation loan or refund anticipation payment instrument; or (D) Services or collects proceeds from a refund anticipation loan or refund anticipation payment instrument on behalf of another person. (3)(a) 'Lender' means a person that makes a refund anticipation loan with the person's own funds or a line of credit or other funding from a financial institution, as defined in ORS 706.008. (b) 'Lender' does not include a federal bank, as defined in ORS 706.008, or a federal credit union. (4) 'Licensee' means a person that is licensed under ORS 673.605 to 673.740. (5) 'Person' means an individual, a joint venture, a partnership, a cooperative, a limited liability company, an association, a joint stock company, a corporation, a trust or an unincorporated organization. (6) 'Refund anticipation loan' means: (a) A loan that a lender makes under a contract or agreement that requires a consumer to repay the loan from the proceeds of the consumer's federal or state income tax refund, or a loan that a consumer expects to repay from the proceeds of the tax refund; or (b) A loan that a lender makes under a contract or agreement that requires a consumer to repay the loan from the proceeds of a subsequent loan of the type described in paragraph (a) of this subsection, or a loan that a consumer expects to repay from the proceeds of a subsequent loan of the type described in paragraph (a) of this subsection. (7) 'Refund anticipation payment instrument' means evidence of an arrangement under which a lender, facilitator or affiliated person: (a) Opens a temporary account to receive a consumer's tax refund on the consumer's behalf; (b) Issues the proceeds of the consumer's tax refund to the consumer in the form of a check, prefunded debit card, gift card or other record of a promise to pay an amount of money or provide goods or services in an amount specified in the record when the record is presented to another person; and (c) Charges and receives a fee or other compensation from the consumer for the arrangement. (8) 'Tax consultant' means a person that is licensed under ORS 673.605 to 673.740 to prepare or advise or assist in preparing personal income tax returns for a consumer in exchange for valuable consideration. + } { + (9) 'Tax preparer' means a person that is licensed as a tax preparer under ORS 673.605 to 673.740. + } { + (10) 'Taxpayer' means an individual who: (a) Files a federal or Oregon personal income tax return; or (b) Pays a fee, charge or other consideration for the services of a licensee in preparing the individual's tax return, filing the tax return electronically or applying for a refund anticipation loan or refund anticipation payment instrument. (11) 'Unconscionable activity' means actions or conduct by which a facilitator knowingly takes advantage of a consumer's or taxpayer's physical infirmity, lack of knowledge, illiteracy or inability to understand the contracts, documents, charges or fees related to a refund anticipation loan or refund anticipation payment instrument. + } SECTION 9. ORS 673.610 is amended to read: 673.610. ORS 673.605 to 673.740 do not apply to: (1) { - Any - } { + A + } full or part-time employee hired to fill a permanent position, who in connection with { - the - } duties as an employee has { - the - } { + an + } incidental duty { - of preparing - } { + to prepare + } income tax returns { + only + } for the { + employer's + } business { - of the employer only - } . (2) { - Any - } { + An + } attorney at law { - rendering - } { + who renders + } services in { - the performance of the - } { + performing + } duties { - of - } { + as + } an attorney at law. (3) { - While acting as such, any fiduciary, or the regular employees thereof, acting on behalf of the fiduciary estate, the testator, trustor, grantor, or beneficiaries thereof. - } { + A fiduciary or an employee of a fiduciary during the time the fiduciary acts on behalf of a fiduciary estate or a testator, trustor, grantor or beneficiary of the fiduciary estate. + } (4) A certified public accountant who holds an active permit issued by { - any - } { + this or another + } state, a public accountant { - holding - } { + who holds + } a valid permit issued under ORS 673.100 or a public accounting firm { + that is + } registered in { - any - } { + this or another + } state. (5) { - Any - } { + An + } employee of a certified public accountant, public accountant or registered public accounting firm described in subsection (4) of this section. (6) { - Any - } { + A + } person employed by a local, state or federal governmental agency but only { - in performance of - } { + at the time the person is performing + } official duties. { + (7) A financial institution, as defined in ORS 706.008, or an employee of a financial institution. + } SECTION 10. ORS 673.615 is amended to read: 673.615. Except as otherwise provided in ORS 673.605 to 673.740: (1) A person may not prepare or advise or assist in { - the preparation of - } { + preparing + } personal income tax returns for { - another and - } { + a taxpayer in exchange + } for valuable consideration or represent that the person { - is so engaged - } { + prepares or advises or assists in preparing income tax returns in exchange for valuable consideration + } unless the person is licensed as a tax consultant under ORS 673.605 to 673.740. (2) A tax preparer may prepare or advise or assist in { - the preparation of - } { + preparing + } tax returns only under the supervision of a tax consultant, or a person described in ORS 673.610 (2) or (4), and subject to { - such - } conditions and limitations { - as - } { + that + } the State Board of Tax Practitioners { - by rule may impose - } { + imposes by rule + }. (3) A person may not { - be a facilitator of a refund anticipation loan without first being issued a license - } { + act or conduct business as a facilitator in this state unless the person is licensed + } as a tax consultant or tax preparer under ORS { - 673.640 - } { + 673.605 to 673.740 + }. SECTION 11. ORS 673.700 is amended to read: 673.700. The State Board of Tax Practitioners may refuse to issue or renew a tax { - consultant - } { + consultant's + } or { + tax + } preparer's license, or may suspend or revoke a tax { - consultant - } { + consultant's + } or { + tax + } preparer's license, or may reprimand { - any - } { + a + } person licensed as a tax consultant or tax preparer for: (1) { - Violation of - } { + Violating + } ORS 673.615 { - , - } { + or + } 673.705 or { - 673.712 - } { + section 2, 3, 4 or 6 of this 2011 Act + }. (2) { - Failure - } { + Failing + } to keep the records required by ORS 673.690. (3) Negligence or incompetence in tax consultant or tax preparer practice or when acting in the capacity of a tax preparer or tax consultant in another state, or under an exempt status or in preparation of the personal income tax return for another state or the federal government. (4)(a) Conduct resulting in a { + felony + } conviction { - of a felony - } under the laws of { - any - } { + this or another + } state or of the United States. However, { - such conduct - } { + the board + } may { - be considered - } { + consider a conviction + } only to the extent permissible under the provisions of ORS 670.280; or (b) Conviction of { - any - } { + a + } crime, an essential element of which is dishonesty, fraud or deception, under the laws of { - any - } { + this or another + } state or of the United States. (5) Conviction of willful failure to pay { - any - } { + a + } tax or estimated tax, file { - any - } { + a + } tax return, keep records or supply information required under the tax laws of { - any - } { + this or another + } state or of the United States, or conviction of { - the willful - } { + willfully + } making, rendering, { - delivery, disclosure, - } { + delivering, disclosing, + } signing or verifying { - of any - } { + a + } 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 - } { + this or another + } state or of the United States. (6) { - Failure - } { + Failing + } to comply with continuing education requirements under ORS 673.655 or under ORS 673.667 unless { - such requirements have been waived by the board. - } { + the board has waived the requirements. + } (7) { - Violation of - } { + Violating + } the code of professional conduct prescribed by the board. (8) { - Failure - } { + Failing + } to pay { - any - } { + a + } civil penalty incurred under ORS 673.735 within the time determined by the board. (9) Cancellation, revocation or refusal to renew by { - any - } { + a + } state or federal agency of, or entry of a consent order, stipulated agreement or judgment related to, the person's authority to practice law, to practice as a certified public accountant or a public accountant or to practice under other regulatory law in { - any - } { + this or another + } state, or to practice as an enrolled agent, if the grounds for the cancellation, revocation, refusal to renew, consent order, stipulated agreement or judgment were related to income tax preparation or if dishonesty, fraud or deception was involved. (10) Cancellation, revocation or refusal to renew by { - any - } { + a + } state or federal agency of, or entry of a consent order, stipulated agreement or judgment related to, a business's authority to conduct operations related to the practice of law, certified public accountancy, public accountancy or other services provided under regulatory law in { - any - } { + this or another + } state, or to provide enrolled agent services, if the grounds for the cancellation, revocation, refusal to renew, consent order, stipulated agreement or judgment involved the conduct or actions of the licensee or applicant and: (a) Were related to income tax preparation; or (b) Involved dishonesty, fraud or deception. SECTION 12. ORS 673.730 is amended to read: 673.730. The State Board of Tax Practitioners { - shall have - } { + has + } the following powers, in addition to the powers otherwise granted by ORS 673.605 to 673.740, and { - shall have - } { + has + } all powers necessary or proper to carry the granted powers into effect: (1) { + (a) + } To determine qualifications of applicants for licensing as a tax consultant or a tax preparer in this state; { + (b) + } To cause examinations to be prepared, conducted and graded; and { + (c) + } To issue licenses to qualified applicants upon { - their - } { + the applicants' + } compliance with ORS 673.605 to 673.740 and the rules of the board. (2)(a) To restore the license of { - any - } { + a + } tax consultant or { + tax + } preparer whose license has been suspended or revoked. { + The board's power to restore a license specifically includes the power to restore a license that was suspended or revoked because a person was convicted of a crime. In making a determination to restore a license, the board shall consider the relationship of the facts that supported the conviction to the code of professional conduct and shall consider intervening circumstances in evaluating the person's fitness to receive or hold a tax consultant's or tax preparer's license. + } (b) { - The power of the board - } To suspend { - any - } { + a + } license under ORS 673.700 { + , which + } includes the power to restore { + the license + }: (A) At a time certain; or (B) When the person subject to suspension fulfills conditions for reissuance set by the board. { - (c) The power of the board to restore a license under paragraph (a) of this subsection specifically includes the power to restore a license suspended or revoked for the reason that the person has been convicted of a crime. In making a determination to restore a license, the board shall consider the relationship of the facts which supported the conviction to the code of professional conduct and all intervening circumstances in determining the fitness of the person to receive or hold a tax consultant's or tax preparer's license. - } (3) To investigate alleged violations of ORS 673.605 to 673.740, or { - any - } { + a + } rule or order adopted { - thereunder - } { + or issued under ORS 673.605 to 673.740 + }. The board may keep information gathered pursuant to an investigation by the board confidential until there is a final order or determination by the board, unless { + the board considers + }disclosure { - is considered - } necessary { - by the board for the investigation or prosecution of - } { + to investigate or prosecute + } an alleged violation of ORS 673.605 to 673.740, or { - any - } { + a + } rule or order { + the board + } adopted { - thereunder - } { + or issued under ORS 673.605 to 673.740 + }. The board may keep personal financial information { + the board + } gathered pursuant to an investigation { - by the board - } confidential after { + the board makes + } a final order or determination { - by the board - } , unless { + the board considers + } disclosure { - is considered - } necessary { - by the board for the investigation or prosecution of - } { + to investigate or prosecute + } an alleged violation of ORS 673.605 to 673.740, or { - any - } { + a + } rule or order { + the board + } adopted { - thereunder - } { + or issued under ORS 673.605 to 673.740 + }. For purposes of this subsection, personal financial information includes but is not limited to tax returns. (4) To enforce the provisions of ORS 673.605 to 673.740 and to exercise general supervision over tax consultant and tax preparer practice. (5) To issue an order directed to a person to cease and desist from { - any - } { + a + } violation or threatened violation of ORS 673.615, 673.643 { - , - } { + or + } 673.705 or { - 673.712 - } { + section 2, 3, 4 or 6 of this 2011 Act + }, or { - any - } { + a + } rule or order { + the board + } adopted { - thereunder - } { + or issued under ORS 673.615, 673.643 or 673.705 or section 2, 3, 4 or 6 of this 2011 Act + }, if the board has reason to believe that a person has { - been - } engaged, is engaging or is about to engage in { - any violation of - } { + violating + } ORS 673.615, 673.643 { - , - } { + or + } 673.705 or { - 673.712 - } { + section 2, 3, 4 or 6 of this 2011 Act + }, or { - any - } { + a + } rule or order { + the board + } adopted { - thereunder - } { + or issued under ORS 673.615, 673.643 or 673.705 or section 2, 3, 4 or 6 of this 2011 Act + }. (6) To assess civil penalties within a cease and desist order issued under subsection (5) of this section if the board has reason to believe that a person has { - been - } engaged or is engaging in { - any - } { + a + } violation of ORS 673.615, 673.643 { - , - } { + or + } 673.705 or { - 673.712 - } { + section 2, 3, 4 or 6 of this 2011 Act + }, or { - any - } { + a + } rule or order { + the board + } adopted { - thereunder - } { + or issued under ORS 673.615, 673.643 or 673.705 or section 2, 3, 4 or 6 of this 2011 Act + }. The civil penalty may not exceed $5,000 per violation. (7) To formulate a code of professional conduct for tax consultants and tax preparers. { + As part of the code of professional conduct, the board shall state that a licensee acting as a facilitator violates the code of professional conduct if the licensee charges a fee for the licensee's benefit in connection with offering or facilitating a refund anticipation loan or refund anticipation payment instrument, or if the licensee facilitates a loan for which the annual percentage rate, calculated and disclosed as provided in section 4 (1)(b) of this 2011 Act, exceeds 36 percent. + } (8) To assess against the licensee or any other person found guilty of violating { - any - } { + a + } provision of ORS 673.605 to 673.740, or { - any - } { + a + } rule or order { + the board + } adopted { - thereunder - } { + or issued under ORS 673.605 to 673.740 + }, in addition to any other sanctions, the costs associated with the disciplinary or other action { - taken by - } the board { + takes + }. (9) To order that { - any person who has - } { + a person that + } engaged in or is engaging in { - any - } { + a + } violation of ORS 673.605 to 673.740, or { - any - } { + a + } rule or order { + the board + } adopted { - thereunder - } { + or issued under ORS 673.605 to 673.740 + }, shall offer to rescind and pay restitution to { - anyone - } { + a person + } harmed by the violation { - who - } { + that + } seeks rescission. (10) To adopt rules pursuant to ORS chapter 183 necessary to carry out the provisions of ORS 673.605 to 673.740. SECTION 13. ORS 673.990 is amended to read: 673.990. (1) Violation of any of the provisions of ORS 673.310, 673.320, 673.345 or 673.350 is a Class A misdemeanor. Whenever the Oregon Board of Accountancy has reason to believe that any person is liable to punishment under this subsection it may certify the facts to the Attorney General, who may, in the discretion of the Attorney General, cause appropriate proceedings to be brought. (2) Violation of any provision of ORS 673.605 to 673.740, or { - any rule adopted thereunder - } { + a rule or order adopted or issued by the State Board of Tax Practitioners under ORS 673.605 to 673.740 + }, is a { + Class A + } misdemeanor. SECTION 14. { + ORS 673.712 is repealed. + } SECTION 15. { + Sections 2 to 7 of this 2011 Act, the amendments to ORS 673.605, 673.610, 673.615, 673.700, 673.730 and 673.990 by sections 8 to 13 of this 2011 Act and the repeal of ORS 673.712 by section 14 of this 2011 Act apply to the activities of facilitators and lenders, as defined in ORS 673.605, that conduct business on or after the operative date set forth in section 16 (1) of this 2011 Act. + } SECTION 16. { + (1) Sections 2 to 7 of this 2011 Act, the amendments to ORS 673.605, 673.610, 673.615, 673.700, 673.730 and 673.990 by sections 8 to 13 of this 2011 Act and the repeal of ORS 673.712 by section 14 of this 2011 Act become operative on January 1, 2012. (2) The State Board of Tax Practitioners may adopt rules or take any action before the operative date set forth in subsection (1) of this section that is necessary to enable the board to exercise, on and after the operative date set forth in subsection (1) of this section, all the duties, functions and powers conferred upon the board by sections 2 to 7 of this 2011 Act and the amendments to ORS 673.605, 673.610, 673.615, 673.700, 673.730 and 673.990 by sections 8 to 13 of this 2011 Act. + } SECTION 17. { + This 2011 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2011 Act takes effect on its passage. + } ----------