HOUSE BILL NO. 4892

September 11, 2025, Introduced by Reps. Frisbie, Wozniak, Martin, Borton, Alexander and Schuette and referred to Committee on Finance.

"Occupational code,"

by amending sections 724 and 728 (MCL 339.724 and 339.728), as amended by 2018 PA 81.

the people of the state of michigan enact:

Sec. 724. This article does not prohibit the following:

(a) An individual who is not a certified public accountant from serving as an employee of, or an assistant to, a certified public accountant or firm composed of certified public accountants who are licensed to practice under this article if the individual does not issue an accounting or financial statement over his or her the individual's name.

(b) A licensed certified public accountant of another licensing jurisdiction who does not meet the requirements of section 727a, or an accountant who is licensed in a foreign country for the practice of public accounting in that country, from temporarily and periodically engaging in the practice of public accounting in this state if all of the following requirements are met:

(i) The individual is conducting a regular practice of public accounting in another licensing jurisdiction or foreign country.

(ii) The temporary practice is conducted in conformity with section 736 and applicable rules promulgated by the director, if any.

(iii) The individual secures a temporary permit from the department to conduct the practice in this state.

(c) A practicing attorney from preparing reports or presenting records customarily prepared by an attorney in connection with the attorney's professional work.

(d) A person from preparing a financial report or tax return, not requiring the expression of an opinion on the report or return, for filing with a federal, state, or local governmental unit.

(e) An officer, employee, partner, or principal of an organization from signing a statement or report in reference to the financial affairs of the organization with wording designating the position, title, or office which the officer, employee, partner, or principal of an organization holds in that organization.

(f) An act of a public official or public employee in the performance of that individual's official duties.

(g) An individual who may be employed by more than 1 individual or firm from keeping books, making trial balances or statements, and preparing audits or reports, if the audits or reports are not used or issued by the employer as having been prepared by a certified public accountant.

(h) A firm that does not hold a valid license under section 728 and that does not have an office in this state from providing its the firm's professional services in this state in the practice of public accountancy and from using the certified public accountant designation so long as it the firm complies with the requirements of section 728(4), or (5), or (6), whichever is applicable.

Sec. 728. (1) A Except as otherwise provided in this section, a firm that establishes or maintains an office in this state must apply for and obtain a Michigan license under this article in order to engage in the practice of public accounting in this state.

(2) A firm that is applying for licensure under this article shall meet both of the following requirements:

(a) At least a simple majority of the equity and voting rights of the firm are held directly or beneficially by individuals who are licensed in good standing as certified public accountants of this state or another state or the equivalent in another licensing jurisdiction acceptable to the board. Each owner who is not a certified public accountant must be an active individual participant in the firm or 1 or more of its the firm's affiliated entities. An individual with practice privileges under section 727a who performs services for which a firm license is required under this section is not required to obtain a certificate under section 726 or a registration or license under section 727.

(b) All attest and compilation services provided by the firm in this state are performed under the supervision of an individual who is licensed and in good standing as a certified public accountant in this state or another state or holds an equivalent authorization to practice public accounting from another licensing jurisdiction acceptable to the board.

(3) A firm shall notify the department of any change in address within not more than 30 days of after the change in address.

(4) A firm that is not required to obtain a Michigan license under subsection (1) may perform a review engagement in accordance with the statements on standards for accounting and review services, perform an examination, a review, or agreed-upon procedures engagement in accordance with the statements on standards for attestation engagements, or perform a compilation for a client in this state, only if it the firm meets each of the following conditions:

(a) It The firm has met the requirements in subsection (2)(a) and (b) and section 729(2).

(b) It The firm performs those services through an individual who has practice privileges under section 727a.

(c) It The firm is authorized or permitted to perform those services in the licensing jurisdiction where the individual described in subdivision (b) has his or her the individual's principal place of business.

(5) A firm that is not required to obtain a Michigan license under subsection (1) and that is not seeking to practice under subsection (4) may perform attest services, or any other professional services within the practice of public accountancy, while using the title "CPA" or "CPA firm" in this state without a license issued under subsection (1) only if it the firm meets all of the following conditions:

(a) It The firm performs those services through an individual with practice privileges under section 727a.

(b) It The firm is authorized or permitted to perform those services in the licensing jurisdiction where the individual described in subdivision (a) has his or her the individual's principal place of business.

(6) An individual who is licensed as a certified public accountant under this article and is operating a sole proprietorship that establishes or maintains an office in this state is not required to apply for and obtain a license under subsection (1) in order to engage in the practice of public accounting in this state.