PUBLIC ACCOUNTING FIRMS H.B. 4334 & 4654:
FLOOR SUMMARY
House Bills 4334 and 4654 (as reported without amendment)
Sponsor: Representative Tom McMillin (H.B. 4334)
Representative Earl Poleski (H.B. 4654)
Senate Committee: Banking and Financial Institutions
CONTENT
House Bill 4334 would amend the Michigan Limited Liability Company Act, and House Bill 4654 would amend the Business Corporation Act, to permit a professional limited liability company (PLLC) or a professional corporation (PC), respectively, to practice public accounting if more than 50% of the PLLC's or the PC's equity and voter rights were held directly or beneficially by individuals licensed or otherwise authorized to practice public accounting under Article 7 of the Occupational Code.
Under Article 7 of the Occupational Code, a public accounting firm generally must have a State license to practice public accounting. To apply for a license, individuals who are licensed in good standing as certified public accountants must directly or beneficially hold at least a simple majority of the equity and voting rights of the firm.
Each bill would incorporate the definition of "practice of public accounting" that is within Article 7 of the Occupational Code
MCL 450.4904 (H.B. 4334) Legislative Analyst: Glenn Steffens
450.1284 (H.B. 4654)
FISCAL IMPACT
The bills would have no fiscal impact on State or local government.
Date Completed: 9-30-13 Fiscal Analyst: Josh Sefton
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.