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HB 4893

Occupations: accounting; required hours of instruction for accountants; revise. Amends secs. 725 & 727a of 1980 PA 299 (MCL 339.725 & 339.727a).

2025-2026 Regular Session Introduced by Greg Alexander and 5 co-sponsors

HB 4893 lowers CPA education from 150 to 120 semester hours starting Jan 1, 2027, with two years of qualifying experience for the 120-hour path.

REFERRED TO COMMITTEE ON REGULATORY AFFAIRS
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Bill Summary · HB 4893

Summary — HB 4893 (As passed by the House)

Status: Passed House (Nov 12, 2025); transmitted to Senate. Introduced: Mar 13, 2025. Primary sponsor: Rep. Mark Tisdel.

Purpose

HB 4893 amends Michigan’s Occupational Code to lower the college-hour education threshold required to receive a certified public accountant (CPA) certificate (the prerequisite to licensure) from 150 semester hours to 120 semester hours, with a phased effective date.

Key provisions

  • Education requirement
    • Until Dec. 31, 2026: applicants must meet the existing 150-semester-hour threshold.
    • Beginning Jan. 1, 2027: the required semester hours are reduced to 120 (i.e., a typical bachelor’s degree).
    • The bill lists alternative routes consistent with current practice (post‑baccalaureate degree with accounting concentration, etc.).
  • Experience requirement
    • Applicants who qualify under the higher-education routes (150 hours or post‑baccalaureate) must have 1 year of qualifying experience.
    • Applicants who qualify under the 120‑hour route must have 2 years of qualifying experience.
    • Qualifying experience must be verified by a licensed CPA and may be gained in government, industry, academia, or public practice.
    • Enumerated acceptable experience includes audits, reviews, compilations, attest engagements, tax return preparation and documented tax research, management advisory services (including valuation, forensic accounting, fraud examination), internal audit, supervisory accounting, and other professional accounting work.
    • Explicitly excluded as qualifying experience: nonprofessional work (e.g., recruiting, bookkeeping, appraisals) and paraprofessional work that does not meet specified public accounting firm standards.
  • Out‑of‑state practice privileges (Sec. 727a)
    • The out‑of‑state practice-privilege provisions are updated to reflect the same education threshold change (150 until 12/31/2026; 120 starting 1/1/2027) for purposes of determining substantial equivalency.
    • Retains existing transitional/exemption language for certain licensees (e.g., those licensed prior to Jan. 1, 2012 as currently provided).
  • Other
    • Clarifies verification and reciprocity language consistent with the board and department standards.

Who is affected

  • CPA candidates/aspiring licensees (students and graduates): those with a 120‑hour bachelor’s degree would be eligible to pursue CPA certification (subject to experience and exam requirements) beginning Jan. 1, 2027.
  • Out‑of‑state licensees seeking to practice in Michigan under practice-privilege provisions.
  • Educational institutions (colleges/universities) and employers who engage in training/mentoring for qualifying experience.
  • Department of Licensing and Regulatory Affairs (LARA): administrative and licensing workload/fee revenue may change.

Fiscal and procedural notes

  • Fiscal impact: Indeterminate. Lowering the education threshold could increase the pool of eligible applicants and potentially raise licensing fee revenue, but the magnitude is uncertain.
  • Legislative status: Passed the House by roll call on Nov. 12, 2025 (substitute H‑2 adopted); transmitted to the Senate. If enacted, the statutory amendments take effect as specified (education change effective Jan. 1, 2027).

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

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