OAR 852-020-0045
Requirements for Business Entity Organization
(1)
Definitions. As used in these administrative rules, unless the context requires otherwise:(a)
“Business entity” means:(A)
A professional corporation organized under ORS Chapter 58 (Professional Corporations), predecessor law or comparable law of another jurisdiction;(B)
A limited liability company organized under ORS Chapter 63 (Limited Liability Companies) or comparable law of another jurisdiction;(C)
A partnership organized in Oregon after January 1, 1998, or that is registered as a limited liability partnership, or that has elected to be governed by ORS Chapter 67 (Partnerships) or comparable law of another jurisdiction; or(D)
A limited partnership organized under ORS Chapter 70 (Limited Partnerships), predecessor law or comparable law of another jurisdiction.(b)
“Majority ownership interest” means more than 50 percent of:(A)
The issued voting stock of a professional corporation;(B)
The members of a limited liability company; or(C)
Participation in the profits of a partnership.(c)
“Organizational document” means:(A)
The articles of incorporation of a professional corporation, or comparable document of another jurisdiction;(B)
The articles of organization of a limited liability company, or comparable document of another jurisdiction;(C)
The partnership agreement and, for a limited liability partnership, its registration, or comparable document(s) of another jurisdiction; or(D)
A certificate of limited partnership, or comparable document of another jurisdiction.(d)
“Owner” means a voting shareholder of a professional corporation, member of a limited liability company, or partner of a partnership.(e)
“Principal” means a person who is a director of a professional corporation, manager of a limited liability company, or general partner of a limited partnership.(2)
Requirements for business entities organized to practice optometry:(a)
The majority ownership interest must be held by optometric physicians licensed in this state to practice optometry:(A)
A majority of the principals must be optometric physicians who are licensed in this state to practice optometry;(B)
All officers except the secretary and treasurer, if any, must be optometric physicians who are licensed in this state to practice optometry. Any two or more offices may be held by the same person;(b)
A professional corporation may be a shareholder of a professional corporation organized for the purpose of practicing optometry solely for the purpose of effecting a reorganization as defined in the Internal Revenue Code;(c)
The Oregon Board of Optometry has the discretion to allow business entities to apply for a waiver of the majority ownership requirement provided full disclosure of business ownership is provided to the Board, a plan and timetable is presented for a transition to meet the requirements of this rule, and the Board finds that the health and welfare of the patient is the first priority of the optometric physicians and business entity; and(d)
Upon a finding that a holder or owner of an optometric practice has failed to comply with the provisions of this rule or the regulations prescribed by the Board pursuant to the practice of optometry, the Oregon Board of Optometry may consider the failure to comply with this rule as a violation of this rule which may subject a holder or owner to discipline pursuant to ORS 683.140 (Grounds for and nature of discipline).
Source:
Rule 852-020-0045 — Requirements for Business Entity Organization, https://secure.sos.state.or.us/oard/view.action?ruleNumber=852-020-0045.