Member Activities

CPA License Mobility Legislation Introduced in Michigan

Mobility legislation to ease restrictions on interstate practice for CPAs was introduced in Lansing on Thursday, March 20, 2008. With the support of the MACPA and the State Board of Accountancy, Representative Andy Coulouris (D-Saginaw) introduced House Bill (HB) 5936.

“Easing practice mobility across state lines while maintaining the CPA profession’s commitment to protecting the public is one of MACPA’s top priorities for 2008,” said MACPA Chair of the Board Gail Sparks Pitts. “Today’s introduction of HB 5936 represents a huge step forward in the national movement toward a simplified process that will allow CPAs to better serve clients across state lines.”

HB 5936 amends the Occupational Code (PA 299 of 1980) by extending the Michigan State Board of Accountancy’s jurisdiction over out-of-state CPAs for disciplinary purposes in the case of wrongdoing. The State Board will gain automatic jurisdiction over all CPAs practicing in Michigan, whether they are registered or licensed in the state or not.

“The proposed legislation will create a system similar to the nation’s driver license system,” explained Pitts. “It will provide CPAs with mobility, while retaining and strengthening the State Board of Accountancy’s ability to protect the public interest.”

The nationwide movement for a unified CPA license mobility system has been gaining momentum since 2007. Prior to 2007, four states had mobility laws in place for CPAs – Missouri, Ohio, Wisconsin and Virginia. There was significant activity in 2007 with seven states enacting mobility – Illinois, Indiana, Louisiana, Maine, Rhode Island, Tennessee and Texas. Now the total number of states has reached 15, as 4 more states have enacted mobility already in 2008. With the introduction of this legislation, Michigan joins 18 other states with legislation in progress.

Mobility = The ability of a CPA to gain a practice privilege outside of their principal jurisdiction without a license or notification.

Why is Mobility important?
Business realities, including an increase in interstate commerce and virtual technologies require a uniform system that allows fluid practice across state lines.

Implementation of a uniform provision would allow consumers to receive timely services from the CPA best suited to the job, regardless of location, without the hindrances of unnecessary filings, forms and increased costs that do not protect the public interest.

Businesses today are often located in multiple states and have compliance responsibilities in multiple jurisdictions. A uniform process will give CPAs the flexibility to better serve these clients.