Bill Text: MI HB5648 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Occupations; accounting; accountants engaged in audits of public bodies; require bond and professional liability insurance. Amends 1980 PA 299 (MCL 339.101 - 339.2677) by adding sec. 728a.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-05-17 - Bill Electronically Reproduced 05/12/2016 [HB5648 Detail]
Download: Michigan-2015-HB5648-Introduced.html
HOUSE BILL No. 5648
May 12, 2016, Introduced by Rep. Lucido and referred to the Committee on Regulatory Reform.
A bill to amend 1980 PA 299, entitled
"Occupational code,"
(MCL 339.101 to 339.2677) by adding section 728a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 728a. (1) A firm engaged in the practice of public
accounting in this state shall not perform attest or compilation
services for public bodies unless it meets all of the following:
(a) Holds a Michigan license under this part.
(b) Provides a surety bond to the department that meets all of
the following:
(i) Is issued by a bonding company or insurance company
authorized to do business in this state.
(ii) Expires after the date the firm's license expires.
(iii) Is in a principal amount of at least $25,000,000.00, as
determined by the firm.
(iv) Is in a form satisfactory to the department, is payable
to the department for the benefit of Michigan residents, and
secures the performance of the obligations of the applicant in
connection with the conduct of its business providing attest or
compilation services for public bodies.
(c) Maintains a policy of professional liability insurance
that meets all of the following, and provides proof that is
satisfactory to the department of that insurance:
(i) Is issued by an insurer that is authorized to transact
business in this state.
(ii) Is approved by the department.
(iii) Is in an amount of at least $25,000,000.00, as
determined by the firm.
(2) As used in this section, "public body" means 1 or more of
the following:
(a) A state agency, department, division, bureau, board,
commission, council, authority, or other body in the executive
branch of state government.
(b) The legislature or an agency, board, commission, or
council in the legislative branch of state government.
(c) A county, city, township, village, intercounty, intercity,
or regional governing body; a council, school district, special
district, or municipal corporation; or a board, department,
commission, or council or an agency of a board, department,
commission, or council.
(d) Any other body that is created by state or local authority
or is primarily funded by or through state or local authority, if
the body exercises governmental or proprietary authority or
performs a governmental or proprietary function.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
