CPA REQUIREMENTS - H.B. 4238: FLOOR ANALYSIS

House Bill 4238 (as reported by the Committee of the Whole)

Sponsor: Representative Barbara J. Dobb

House Committee: Regulatory Affairs

Senate Committee: Economic Development, International Trade and Regulatory Affairs

CONTENT

The bill would repeal and replace provisions in the Occupational Code regulating certified public accountants. Among other things, the bill would include a definition of "certified public accountant" (CPA); permit a licensed CPA to receive contingent fees and commissions under certain circumstances; require that persons intending only to use a CPA title be registered with the Department of Consumer and Industry Services (DCIS), rather than licensed; provide that at least two-thirds (rather than all) of the individuals holding equity and voting rights of a firm would have to be CPAs; extend current penalty provisions to a violation of professional standards; and provide that a licensee who agreed to issue an audit report concerning the statutory financial statements of a domestic insurer would have to include an opinion as to whether the financial information was presented according to statutory accounting principles of the Insurance Code. The bill would delete, among other things, the current residency requirement to sit for the CPA exam, the requirement that qualifying experience be completed within the six-year period preceding examination for certification as a CPA, and a requirement that the DCIS publish biennially a register containing a list of registered CPAs and firms of CPAs in the State.

Proposed MCL 339.720-339.736 - Legislative Analyst: S. Margules

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed: 4-30-97 - Fiscal Analyst: M. Tyszkiewicz

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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.