HB 4914 — Summary of Key Provisions and Impact
Purpose and intent
- House Bill 4914 would amend the Michigan Occupational Code (section 2010, MCL 339.2010) to change the eligibility requirements for firms practicing architecture, professional engineering, or professional surveying in Michigan.
- The core change removes the current requirement that at least two-thirds of a firm's principals must be licensed professionals in the applicable field.
What the bill would change (Key provisions)
- Elimination of the 2/3 licensure threshold
- Under current law, a firm may engage in the practice only if at least two-thirds of its principals are licensed as architects, professional engineers, or professional surveyors.
- HB 4914 would allow firms to engage in practice even if less than 2/3 of principals are licensed, subject to department approval for nonlicensed principals.
- Departmental approval for nonlicensed principals
- If a principal is not licensed, the firm must apply for and receive approval from the Department of Licensing and Regulatory Affairs (LARA) to engage in the relevant practice, with the firm and its principals required to comply with department rules.
- Reporting requirements
- Upon request, a firm must report to the department the names and addresses of its principals, persons in responsible charge, unlicensed principals, and any other information the department deems necessary.
- Responsible charge requirement
- A firm must employ a person in responsible charge in the field of services offered at each place of business in Michigan where services are provided, with an exception for field offices that provide only construction reviews.
- Rules and oversight
- The conduct of the firm and its principals must comply with rules promulgated by the department.
Who would be affected
- Architecture, professional engineering, and professional surveying firms operating in Michigan.
- Principals of those firms, including licensed and nonlicensed individuals.
- Departments within LARA responsible for licensing and professional practice oversight.
- Clients and projects involving architectural, engineering, or surveying services in Michigan.
Procedural and timeline aspects
- Introduction and sponsorship
- Introduced: September 11, 2025 (Rep. Pat Outman and several cosponsors).
- Committee actions and status
- Referred to Committee on Economic Competitiveness; public hearing held; left pending in committee (as of the documentation).
- Subsequent actions show reporting with recommendation for referral to Rules and a “recommendation concurred in” status (indicating movement toward concurrence with House leadership for a rules referral).
- Fiscal analysis
- Indeterminate fiscal impact.
- Potential increase in LARA fee revenue if more firms become eligible to practice due to the removal of the 2/3 licensure requirement.
Fiscal and administrative impact
- Fiscal: Uncertain overall impact; may increase LARA fee revenue if more firms gain eligibility. No specific dollar amounts are provided.
- Administrative: Requires department rules to govern approvals of nonlicensed principals and ongoing reporting requirements; increases in data collection on principals, responsible charges, and firm structures.
Notes
- The bill would amend 1980 PA 299 (Occupational Code), specifically changing MCL 339.2010.
- The legislation emphasizes department-administered approvals and compliance with departmental rules for nonlicensed principals.
