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2006 SESSION

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SB 108 Employee stock ownership plan; authorizes option plans.

Introduced by: Walter A. Stosch | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Professional corporations; employee stock ownership plans. Authorizes a professional corporation to issue shares of its stock to, and authorizes its shareholders to transfer shares to, the trustees of an eligible employee stock ownership plan. An eligible employee stock ownership plan is a plan with trustees who are licensed to render the professional service for which the corporation is organized and that prohibits an individual not licensed to render the professional service from owning, or being issued, shares in the professional corporation. However, professional corporations rendering the services of certified public accountants, architects, engineers, land surveyors, certified landscape architects or certified interior designers may have employee stock ownership plans that permit individuals who are not duly licensed to render such service or legally authorized to use such title, as appropriate, to render these services to participate in the plan if the minimum percentages of equity interest required for stock ownership generally are satisfied.

SUMMARY AS INTRODUCED:

Board for Accountancy; firm ownership by employee stock ownership plans.  Authorizes a Certified Public Accounting firm to issue shares of its stock to the trustees of an eligible employee stock ownership plan. In addition, the bill also authorizes the Board for Accountancy to issue a permit to a CPA firm that has issued shares of its stock to an eligible employee stock ownership plan. An eligible employee stock ownership plan is a plan for which (i) the trustees are all licensed to render the services of accounting, (ii) a majority of the beneficiary interests in the plan are held by individuals duly licensed or otherwise legally authorized to render the services of accounting, and (iii) at least 51% of the total of allocated and unallocated equity interests in the firm sponsoring the plan are held in trust by the plan or by individuals holding a valid CPA certificate. The bill also requires the Board to promulgate emergency regulations.