HOUSE BILL NO. 5284
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending sections 729, 2009, and 2627 (MCL 339.729, 339.2009, and 339.2627), section 729 as amended by 2018 PA 81, section 2009 as amended by 2010 PA 324, and section 2627 as amended by 2006 PA 414, and by adding section 2504b.
the people of the state of michigan enact:
Sec. 729. (1) As a condition of license renewal, an individual licensee must successfully complete at least not less than 40 hours of continuing education for each year of a license cycle. All of the following apply to the continuing education requirement described in this subsection:
(a) A licensee is not required to meet the continuing education requirements for a period of 12 months, beginning on the date of his or her the licensee's original license.
(b) At least Not less than 8 of the 40 hours of continuing education for each year of a license cycle must be in the areas of auditing and accounting. However, the board shall not require completion of more than 8 hours of education in the areas of auditing and accounting in 1 year of a license cycle.
(c) Subject to subdivision (d), at least not less than 2 of the 40 hours of continuing education for each year of a license cycle must be in the area of professional ethics. However, the board shall not require completion of more than 2 hours of education in the area of professional ethics in 1 year of a license cycle.
(d) The content of 1 hour of the 4 hours of continuing education in professional ethics required in a 2-year license cycle must be the statutes and administrative rules of this state applicable to public accountancy. A statewide professional association of certified public accountants approved by the department shall create the content for this 1 hour of professional ethics education.
(e) A licensee who earns more than the required 40 hours of continuing education in a year may carry over those excess hours to the next year, but not to any subsequent year, subject to all of the following:
(i) The maximum number of excess hours a licensee may carry over into the next year is 40 hours.
(ii) A licensee may shall not carry over more than 8 hours to meet the minimum accounting and auditing education requirements described in subdivision (b) for the next year.
(iii) A licensee may shall not carry over more than 2 hours to meet the minimum professional ethics requirement described in subdivision (c) for the next year.
(iv) A licensee may shall not carry over more than 1 hour of education in public accountancy described in subdivision (d) to meet the minimum ethics requirements for the next license cycle.
(f) Except as provided in subdivision (g), a nonresident licensee must certify in his or her the nonresident licensee's renewal application that he or she the nonresident licensee has met the continuing education requirements under this subsection.
(g) A nonresident licensee who is applying for renewal of his or her the nonresident licensee's license is considered to have met the continuing education requirements under this subsection if he or she the nonresident licensee meets the continuing education requirements for renewal of an individual license in the state in which his or her the nonresidentt licensee's principal place of business is located. If the state in which a nonresident licensee's principal place of business is located does not have continuing education requirements for renewal of a license, the nonresident licensee must comply with all continuing education requirements for renewal of a license under this subsection.
(h) On request, a licensee must provide the department with 1 of the following, as applicable:
(i) For a licensee with a principal place of business located in this state, proof acceptable to the department that the licensee meets the continuing education requirements for license renewal in this state.
(ii) For a nonresident licensee, proof acceptable to the department, from the state board or other licensing authority in the licensing jurisdiction in which his or her the nonresident licensee's principal place of business is located, that the nonresident licensee meets the continuing education requirements for license renewal in that licensing jurisdiction.
(2) Each licensed firm and sole practitioner that performs any of the following services shall participate in a peer review program established by rule of the department and approved by the board:
(a) Audit.
(b) Review.
(c) Compilations that are relied upon by third parties.
(3) An applicant for renewal shall submit to the department, on a form prescribed by the department and at the time of renewal, proof of peer review obtained within the 3 years immediately preceding the application.
(5) Beginning 1 year after the effective date of the amendatory act that added this subsection, a licensee may submit an application to the department to set aside a disciplinary record of the licensee for the failure to complete continuing education required under this section if all of the following apply:
(a) The disciplinary record that the licensee or applicant is seeking to set aside involves a violation that was discovered during an audit and was based on a 1-time failure to complete continuing education required under this section during the time frame that was the subject of the audit.
(b) The licensee or applicant submits the application to the department not sooner than 5 years after the date that the sanctions are no longer in force against the licensee or applicant for the disciplinary record the licensee or applicant is seeking to set aside.
(c) The licensee or applicant demonstrates to the satisfaction of the department that the licensee or applicant has since successfully completed the continuing education requirement that was the subject of the disciplinary record.
(d) The licensee or applicant has timely completed the sanction imposed by the department or board for the disciplinary record the licensee or applicant is seeking to set aside.
(e) The licensee or applicant establishes that the licensee or applicant has not been the subject of any disciplinary action since the date the sanction was imposed for the disciplinary record the licensee or applicant is seeking to set aside.
(f) The licensee or applicant has not previously had a disciplinary record set aside under this section.
(6) If the department sets aside a disciplinary record under this section for a licensee or applicant, the department shall remove the disciplinary record from the department's public licensing website, and the licensee or applicant may represent that no disciplinary record exists regarding the subject matter of the disciplinary record that was set aside.
(7) The department is not liable in a civil action for reporting a public record of discipline that has been set aside under this section if that record was available as a public record on the date of the report.
Sec. 2009. (1) Beginning the license cycle after the effective date of the rules promulgated under subsection (2), a demonstration of the completion of a program of continuing education shall be is required for renewal of a license issued under this article.
(2) The department shall, by rule, establish a program of continuing education for all licensees under this article.
(3) Beginning 1 year after the effective date of the amendatory act that added this subsection, a licensee may submit an application to the department to set aside a disciplinary record of the licensee for the failure to complete continuing education required under this section if all of the following apply:
(a) The disciplinary record that the licensee or applicant is seeking to set aside involves a violation that was discovered during an audit and was based on a 1-time failure to complete continuing education required under this section during the time frame that was the subject of the audit.
(b) The licensee or applicant submits the application to the department not sooner than 5 years after the date that the sanctions are no longer in force against the licensee or applicant for the disciplinary record the licensee or applicant is seeking to set aside.
(c) The licensee or applicant demonstrates to the satisfaction of the department that the licensee or applicant has since successfully completed the continuing education requirement that was the subject of the disciplinary record.
(d) The licensee or applicant has timely completed the sanction imposed by the department or board for the disciplinary record the licensee or applicant is seeking to set aside.
(e) The licensee or applicant establishes that the licensee or applicant has not been the subject of any disciplinary action since the date the sanction was imposed for the disciplinary record the licensee or applicant is seeking to set aside.
(f) The licensee or applicant has not previously had a disciplinary record set aside under this section.
(4) If the department sets aside a disciplinary record under this section for a licensee or applicant, the department shall remove the disciplinary record from the department's public licensing website, and the licensee or applicant may represent that no disciplinary record exists regarding the subject matter of the disciplinary record that was set aside.
(5) The department is not liable in a civil action for reporting a public record of discipline that has been set aside under this section if that record was available as a public record on the date of the report.
Sec. 2504b. (1) Beginning 1 year after the effective date of the amendatory act that added this subsection, a licensee may submit an application to the department to set aside a disciplinary record of the licensee for the failure to complete continuing education required under section 2504a if all of the following apply:
(a) The disciplinary record that the licensee or applicant is seeking to set aside involves a violation that was discovered during an audit and was based on a 1-time failure to complete continuing education required under this section during the time frame that was the subject of the audit.
(b) The licensee or applicant submits the application to the department not sooner than 5 years after the date that the sanctions are no longer in force against the licensee or applicant for the disciplinary record the licensee or applicant is seeking to set aside.
(c) The licensee or applicant demonstrates to the satisfaction of the department that the licensee or applicant has since successfully completed the continuing education requirement that was the subject of the disciplinary record.
(d) The licensee or applicant has timely completed the sanction imposed by the department or board for the disciplinary record the licensee or applicant is seeking to set aside.
(e) The licensee or applicant establishes that the licensee or applicant has not been the subject of any disciplinary action since the date the sanction was imposed for the disciplinary record the licensee or applicant is seeking to set aside.
(f) The licensee or applicant has not previously had a disciplinary record set aside under this section.
(2) If the department sets aside a disciplinary record under this section for a licensee or applicant the department shall remove the disciplinary record from the department's public licensing website, and the licensee or applicant may represent that no disciplinary record exists regarding the subject matter of the disciplinary record that was set aside.
(3) The department is not liable in a civil action for reporting a public record of discipline that has been set aside under this section if that record was available as a public record on the date of the report.
Sec. 2627. (1) As a condition for the renewal of licensure as a limited real estate appraiser, a certified general real estate appraiser, a certified residential real estate appraiser, or a state licensed real estate appraiser, a licensee shall complete the minimum continuing education requirements described in the AQB criteria.
(a) The disciplinary record that the licensee or applicant is seeking to set aside involves a violation that was discovered during an audit and was based on a 1-time failure to complete continuing education required under this section during the time frame that was the subject of the audit.
(b) The licensee or applicant submits the application to the department not sooner than 5 years after the date that the sanctions are no longer in force against the licensee or applicant for the disciplinary record the licensee or applicant is seeking to set aside.
(c) The licensee or applicant demonstrates to the satisfaction of the department that the licensee or applicant has since successfully completed the continuing education requirement that was the subject of the disciplinary record.
(d) The licensee or applicant has timely completed the sanction imposed by the department or board for the disciplinary record the licensee or applicant is seeking to set aside.
(e) The licensee or applicant establishes that the licensee or applicant has not been the subject of any disciplinary action since the date the sanction was imposed for the disciplinary record the licensee or applicant is seeking to set aside.
(f) The licensee or applicant has not previously had a disciplinary record set aside under this section.
(3) If the department sets aside a disciplinary record under this section for a licensee or applicant, the department shall remove the disciplinary record from the department's public licensing website, and the licensee or applicant may represent that no disciplinary record exists regarding the subject matter of the disciplinary record that was set aside.
(4) The department is not liable in a civil action for reporting a public record of discipline that has been set aside under this section if that record was available as a public record on the date of the report.