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HB 4933

Occupations: employment agencies; deregulation of personnel agencies; provide for. Amends secs. 303a & 411 of 1980 PA 299 (MCL 339.303a & 339.411) & repeals art. 10 of 1980 PA 299 (MCL 339.1001 - 339.1022) & sec. 27 of 1979 PA 152 (MCL 338.2227).

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

HB 4933 repeals state licensure for private personnel agencies and managers, ends LARA oversight and license fees, reducing consumer protections for clients and employers.

referred to second reading
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Bill Summary · HB 4933

Summary — HB 4933 (2025) — Deregulation of Personnel / Employment Agencies

Sponsor: Rep. Donni Steele
Committee: Economic Competitiveness
Introduced: March 13, 2025 — electronically reproduced Sept. 11, 2025

Purpose

House Bill 4933 would eliminate the state licensure regime for private personnel (employment and career counseling) agencies and their managers by repealing the portion of the Occupational Code (Article 10) that currently requires licensure and by removing related references elsewhere in the code. It also repeals the State License Fee Act provision that sets license fees for personnel agencies.

Key provisions

  • Repeals Article 10 of the Occupational Code (MCL 339.1001–339.1022), which establishes licensing requirements for:
    • Type A personnel agencies (employment agencies that place clients with employers and charge clients fees), and
    • Type B personnel agencies (career counseling/consulting agencies that charge clients fees).
  • Repeals MCL 338.2227 (section of the State License Fee Act) that prescribes fee amounts for personnel agency licensure.
  • Amends two general Occupational Code sections (MCL 339.303a and MCL 339.411) to remove or update references to personnel/employment agency licensure and related board/renewal provisions so the code is internally consistent after repeal.

Who is affected

  • Private personnel agencies (both Type A and Type B) and their general managers (currently licensed as employment or consulting agents) — estimated ~100 current licensees.
  • Department of Licensing and Regulatory Affairs (LARA) — will cease licensure, oversight, renewals, and related disciplinary/licensing functions for these agencies.
  • Clients of personnel agencies and employers that use these services — consumer protections enforced through licensure would no longer be available.

Fiscal impact

  • Minimal state fiscal impact. Estimated annual reduction in license fee revenue: about $8,200 (based on current licensee counts and fees).
  • Administrative workload at LARA for licensing/renewals and fee collection would be reduced.

Regulatory and practical impacts

  • Deregulation would lower compliance and licensing costs for agencies and managers.
  • It would remove the current statutory licensing framework used to investigate complaints, discipline agencies/agents, and impose statutory requirements or minimum standards.
  • Potential effects on consumer protection, dispute resolution, and enforcement of conduct standards are likely (fewer state-administered mechanisms to address fraud, misrepresentation, or misconduct by agencies).

Legislative status / key actions

  • Filed: 2025-03-13
  • Committee hearings and substitute considered: Apr–May 2025 (reported favorably as substituted 05/06/2025)
  • Committee report distributed and sent to Calendars: 05/10/2025
  • Reintroduced/electronically reproduced: 09/11/2025
  • Referred to Committee on Economic Competitiveness: 09/11/2025

For detailed statutory language and the House Fiscal Agency analysis, see the legislative resources at the Michigan Legislature website.

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

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