The MACPA Government Relations team, including key staff and the Legislative Advisory Group, is always tracking legislation and other policy proposals that may impact CPAs, working diligently to protect the profession’s interests. The Association’s legislative agenda is full – on offense and on defense. The following provides an overview of issues currently under watch:

• A new issue that just materialized in the last couple of weeks – legislation was introduced in the state House (House Bill 4915) to change professional liability exposure for regulated professionals - such as CPAs. Current case-law in Michigan provides an exemption from the Michigan Consumer Protection Act for regulated occupations (CPAs, funeral directors, Realtors, etc.). If one is going to sue a regulated professional, suit must be filed under a regulatory body of law – for example, the Michigan Occupational Code or the Michigan Revenue Act. This bill eliminates that exemption – greatly increasing professional liability exposure. The MACPA is strongly opposed to this measure and is continuing direct advocacy efforts and communication with policy-makers.
   
• Following the passage of CPA license mobility legislation in June 2008, work began on a comprehensive review and rewrite of Article 7 of the Michigan Occupational Code and the Administrative Rules promulgated thereunder. These two documents are essentially the texts that govern licensing of the CPA profession in Michigan.
   
  • The MACPA is working closely with the State Board of Accountancy and staff from the State of Michigan Licensing Bureau and some of these updates are necessary given the new mobility provisions, such as altering the rule regarding temporary practice permits.
     
  • Other items within this initiative are important reforms such as allowing the experience requirement for original licensure to be met in industry and adjusting the references to professional standards.
     
• Still in regards to licensing and regulation, but with a twist – the MACPA is currently working on a bill to amend the Professional Investigators (or PI) Act. During a re-write of their Act last year, the PI’s provided an exemption for licensed CPAs from having to be licensed. This exemption, as it turns out, isn’t broad enough. Support has been secured from the PI Association and the MACPA foresees no problem with this effort.
   
• Beyond the service tax conversation (see related article), the Association, mainly the experts on the Business Tax Restructuring Subcommittee of the State & Local Tax Task Force, continue to review all proposals, debates and discussions relative to changes to the MBT. These changes could be significant; therefore, the MACPA remains committed to engaging in the debate where appropriate. MACPA is currently working with members of this Subcommittee to target ambiguities and necessary technical corrections in the MBT and communicating with the appropriate individuals inside the Michigan Legislature and at the Department of Treasury. An example of this is discussion around legislation to provide a safe-harbor provision similar to what was found in the SBT.
   
• Although no legislation has been introduced, efforts undoubtedly remain afoot here in Michigan to create a licensing or regulatory structure for paid tax preparers, a proposal that flies in the face of MACPA’s mission to protect both the public and the CPA profession. Initiatives have also surfaced in recent years to require audit partner and/or firm rotations for specific sectors (i.e. school districts, area agencies on aging, etc.) The MACPA is committed to defeating any such proposals.

For more information on any of the policy issues above, or to learn about how you can get involved in advocating on behalf of the CPA profession, call 248.267.3700 and ask for the Government Relations Department – or visit www.michcpa.org/gov.

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