Michigan House Bill HB4892

Michigan 2025-2026 Regular Session

• Introduced: 9/11/25
• Refer: 9/11/25

Caption

Occupations: accounting; requirements for an accountancy firm license; modify. Amends secs. 724 & 728 of 1980 PA 299 (MCL 339.724 & 339.728).

Impact

If passed, the amendments would significantly impact the regulatory framework surrounding public accounting practices within the state. By defining the requirements for obtaining a Michigan license, the bill intends to streamline the licensing process for accounting firms, ensuring that at least a majority of the firm's ownership and voting rights are held by licensed CPAs. This could enhance the quality of accounting services provided, as it aligns firm ownership with professional standards governing practice rights.

Summary

House Bill 4892 seeks to amend the Occupational Code by modifying sections 724 and 728, which govern the licensing requirements for accounting firms in Michigan. The bill aims to clarify the conditions under which individuals and firms may operate as certified public accountants (CPAs) and outlines the responsibilities and qualifications necessary for obtaining a license. Importantly, it details provisions for out-of-state CPAs and foreign accountants, allowing them to engage in public accounting activities temporarily under specific criteria.

Contention

There may be points of contention regarding the proposed changes, particularly from representatives of non-CPA firms and those advocating for more flexible regulations. Some stakeholders might argue that the bill could inadvertently restrict opportunities for qualified accounting professionals who do not hold a CPA license, potentially limiting access to diverse services in the accounting field. Furthermore, the provision that allows temporary practice under certain conditions may face scrutiny concerning the adequacy of regulations that protect consumer interests.