The MACPA Board of Directors, Legislative Advisory Group and government relations staff remain extremely busy in the pursuit of the CPA profession’s legislative and regulatory agenda. 2008 promises to be a very exciting and full year on the legislative front; and keeping all MACPA members well-informed is a top priority.

Interstate License Mobility

The nationwide movement for a unified CPA license mobility system continues to build momentum as 13 states have enacted mobility legislation, with legislation pending in 18 other states. Michigan is very close to joining this list as, after months of working cooperatively with the Michigan State Board of Accountancy and the Department of Labor and Economic Growth, mobility legislation should be introduced into the Michigan House of Representatives before the end of March.

Easing practice mobility across state lines while maintaining the CPA profession’s commitment to protecting the public through this legislative initiative is the MACPA’s top priority for 2008. A portion of the MACPA web site is devoted to the pursuit of interstate license mobility – watch it here for updates.

MBT Implementation and Guidance

Michigan’s new business tax structure, better known as the MBT, continues to evolve as the Michigan Department of Treasury disseminates guidance and the State Legislature addresses proposed technical changes.

The Business Tax Restructuring Subcommittee of the MACPA’s State and Local Tax Task Force is focused on two primary objectives: 1) Communicating with policy-makers, sometimes daily, to obtain as much guidance as possible to ensure CPAs have the knowledge to implement the MBT, and 2) Providing technical guidance to the Department of Treasury and the Legislature as guidance is developed and proposals are debated.

Like license mobility, a portion of the MACPA web site focuses on the MBT. Please check here frequently as updates are posted regularly.

Proposed Audit Partner/Firm Rotation Requirement

The State of Michigan Office of Services to the Aging (OSA) released a proposed standard change in January, calling for a three-year audit partner and six-year audit firm rotation requirement for auditors of all Area Agencies on Aging (AAA). The MACPA, along with multiple firms with AAA engagements, has submitted comments to OSA objecting to the proposed rotation requirement and describing the increased audit costs and audit failure risks that would result.

After the March 15 comment, OSA is expected to review all submitted comments and make a recommendation regarding the proposed standard change. The MACPA will continue to monitor the issue and work with OSA to ensure sound policy.

Business Structure Reform

In Miller v Allstate, decided May 31, 2007, the Michigan Court of Appeals held that if a corporation can be formed under the Professional Service Corporation Act, it may not form under the Business Corporation Act. Legislation (House Bills 5356, 5357 and 5358) introduced October 24, 2007 provides clarity through amendments to the Business Corporation Act, Professional Service Corporation Act and Limited Liability Company Act. The MACPA Legislative Advisory Group and Executive Committee have approved endorsement of this legislation, and the MACPA is communicating with legislators and staff to ensure passage.

Other Important Legislative Issues

The MACPA legislative team is continuously monitoring and working with policy-makers on several other issues of importance to the CPA profession:

House Bill 4887 – legislation to prohibit the use of “good credit” as a factor in employment decisions. The MACPA is working with the bill’s sponsor and others to ensure an exemption for licensed and registered CPAs, and those that work for CPAs.

Senate Bill 967 – legislation to provide for a one-time credit against MBT liability equal to the documented amount a business spent preparing for the ill-fated and short-lived service tax. The MACPA has endorsed this legislation and continues to encourage the House of Representatives to act (the measure passed the Senate).

Regulation of commercial tax preparers – multiple movements are afoot to create a licensing or regulatory structure for non-CPA tax preparers. The MACPA is opposed to these efforts and continues to monitor the issue (no legislation has been introduced to date) as a multiple tier license system would confuse the public and fly in the face of the integrity of the CPA designation.

If you have any questions on these or other legislative matters, contact the MACPA government relations and regulatory affairs staff at legislation@michcpa.org or 248.267.3710.