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HB 4502

Occupations: accounting; qualifications for certified public accountants; revise. Amends secs. 725 & 727a of 1980 PA 299 (MCL 339.725 & 339.727a).

2025-2026 Regular Session Introduced by Steve Carra and 6 co-sponsors

HB 4502 lowers Michigan CPA education to 60 hours (allowing an associate degree) while preserving exam and experience requirements and clarifying reciprocity.

bill electronically reproduced 05/15/2025
#occupations:accounting #occupations:individuallicensingandregistration
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Bill Summary · HB 4502

HB 4502 — Summary (Occupations: accounting; CPA qualifications; revise)

Sponsor: Rep. Steve Carra (introduced Mar 12 / introduced again May 15, 2025)
Statute amended: 1980 PA 299 — Occupational Code, sections 725 & 727a (MCL 339.725 & 339.727a)
Status (as of May 2025): House introduced; referred to Committee on Regulatory Reform; reported favorably as substituted and sent to Calendars (committee activity Apr–May 2025). Companion: SB 1575.

Main purpose

HB 4502 significantly revises Michigan’s statutory education requirements and related reciprocity rules for certified public accountants (CPAs). The bill reduces the minimum required college semester hours to qualify for CPA certification and modifies degree language, while preserving the CPA exam and experience requirements. It also clarifies out‑of‑state practice (reciprocity/practice privileges).

Key provisions

  • Education requirement reduced:
    • Current statutory language requiring "at least 150 semester hours" and a baccalaureate degree is changed to require "not less than 60 semester hours" and permits an associate degree or higher with a concentration in accounting from a board‑approved institution.
    • Individuals with an associate degree in accounting may sit for the CPA examination.
  • Examination:
    • Applicant still must pass an accepted accounting/auditing exam (uniform CPA exam, or examination acceptable to the department and board).
  • Experience:
    • Maintains a requirement of at least 1 year of qualifying experience (verified by a CPA licensed in any state/jurisdiction). Lists qualifying experience categories (audits, reviews, compilations, attest/other auditing, internal audit, government contract audits, tax preparation/research/representation, financial forecasts, management advisory services, supervision of accounting functions, public accounting work, etc.).
    • Explicitly excludes nonprofessional work (e.g., recruiting, bookkeeping) and paraprofessional work that does not meet the public accounting firm standard.
  • Reciprocity / practice privileges (Sec. 727a):
    • Mirrors the reduced education language (60 semester hours / associate degree) for out‑of‑state license equivalency.
    • Retains requirement to have passed the uniform CPA exam and at least 1 year of experience for reciprocal recognition.
    • Reaffirms that out‑of‑state CPAs whose principal place of business is not Michigan are granted practice privileges in the state without notice, fee, or other submission; such practitioners remain subject to Michigan disciplinary rules (sec. 734a).
    • Continues an exemption for those who passed the uniform CPA exam and obtained a license before Jan 1, 2012 (education requirement waiver for that cohort).

Who is affected

  • Prospective CPA candidates in Michigan: lowers the statutory education threshold, potentially increasing the pool of individuals eligible to sit for the CPA exam and seek licensure.
  • Out‑of‑state CPAs who provide services in Michigan: clarifies/expands practice privileges and reciprocity criteria under the new education threshold.
  • Michigan Board of Accountancy and Department of Licensing & Regulatory Affairs: will implement and apply revised educational standards and maintain oversight/enforcement responsibilities.
  • Employers, clients, and the accounting profession: may see changes in the background/credentials of entry‑level licensees; implications for perceived professional standards.

Procedural / timeline notes

  • Filed in March 2025; first reading April 3, 2025.
  • Committee hearings and public testimony occurred in April; a committee substitute was reported favorably on May 1, 2025.
  • Committee report sent to Calendars May 10, 2025; bill reproduced electronically May 15, 2025.
  • Further floor action in the House and any Senate consideration will determine final outcome.

Considerations / potential impacts

  • The bill substantially lowers the statutory college‑hour requirement (150 → 60) and permits an associate degree as the baseline education — a sizable change from common contemporary licensure standards (many jurisdictions use a 150‑hour/bachelor’s + graduate credit model).
  • Supporters may argue it increases access and workforce supply; critics may raise concerns about alignment with national CPA standards, credential comparability across states, and consumer protection.
  • Because the bill retains exam and experience requirements and subjects out‑of‑state practitioners to discipline, enforcement and board rules will shape practical effects.

Compiled from official sources — confirm details with the bill’s official record.

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