HB-5220, As Passed Senate, June 3, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5220

     A bill to amend 1980 PA 299, entitled

"Occupational code,"

by amending section 728 (MCL 339.728), as amended by 2010 PA 215.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 728. (1) A firm shall apply for and obtain a Michigan

license under this article in order to engage in the practice of

public accounting in this state if either of the following apply:

     (a) The firm establishes or maintains an office in this state.

     (b) An individual representing who represents the firm

performs any engagement described in section 720(1)(a)(i), (iii), or

(iv) for any client having that has its home office in this state.

     (2) Reports produced pursuant to engagements in subsection

(1)(b) may be supervised or signed, or the report's signature may

be authorized for the firm, by an individual practicing public

accounting in Michigan pursuant to under section 727a.

     (3) A firm that is applying for licensure under this article

shall meet all 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. Owners who are not certified

public accountants as defined by section 720(1)(b) must be active

individual participants in the firm or its 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) The principal officer of the firm and each officer or

director having authority for the practice of public accounting by

the firm are 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 accountants accountant in this state or another state or the

equivalent in another licensing jurisdiction acceptable to the

board.

     (c) Has filed the required certificate of authority with the

department pursuant to the business corporations act, 1972 PA 284,

MCL 450.1101 to 450.2098, if applicable.

     (4) A firm shall provide a notify the department of any change

in address to the department within 30 days of the change.

     (5) 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

or a compilation for a client having that has its home office in

this state, may use the title "CPA" or "CPA firm", and may practice

public accountancy as authorized in this section without a license

issued under subsection (1) only if it meets both of the following

conditions:

     (a) It has met the requirements in subsection (3)(a) and (b)

and section 729(2).

     (b) It performs such those services through an individual with

who has practice privileges under section 727a.

     (6) A firm that is not required to obtain a Michigan license

under subsection (1) and that is not seeking to practice under

subsection (5) may perform 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 meets both of the following conditions:

     (a) It performs such those services though through an

individual with practice privileges under section 727a.

     (b) It can lawfully do so in the licensing jurisdiction where

such those individuals with practice privilege have their principal

place of business.