RE: HB 4914 — The Honorable Mike Hoadley, Chair, Committee on Economic Competitiveness (October 28, 2025)

Summary

A letter dated October 28, 2025 from the American Council of Engineering Companies (ACEC) of Michigan to Chair Mike Hoadley and the Committee on Economic Competitiveness of the Michigan House of Representatives, opposing House Bill 4914. The letter states that the bill would amend the Occupational Code (MCL 339.2010) by eliminating the requirement that at least two-thirds of a firm's principals be licensed architects, professional engineers or professional surveyors. It argues that Michigan licenses only individuals, not firms, and that the two-thirds rule is its only firm-level safeguard. It cites an American Bar Association survey of firm licensure and gives examples from Alabama, Connecticut, Maryland, Nevada and North Carolina. The letter is signed by the executive director of ACEC/Michigan, with copies to Speaker Matt Hall and House Rules Committee Chair Bill G. Schuette.

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AMERICAN COUNCIL O EERING COMPANIES
of Michigan

October 28, 2025

The Honorable Mike Hoadley, Chair
Committee on Economic Competitiveness
Michigan House of Representatives

P.O. Box 30014

Lansing, MI 48909-7514

RE: HB 4914

Dear Chair Hoadley and Honorable Members of the Committee on Economic
Competitiveness:

On behalf of the American Council of Engineering Companies (ACEC) of Michigan we are
writing to express our strong opposition to House Bill 4914. As an organization representing
more than 100 firms and thousands of licensed engineers dedicated to upholding the
highest standards in design, engineering, and surveying, we urge the Committee to reject
this legislation, which would compromise public safety, professional accountability, and
the integrity of Michigan’s built environment.

House Bill 4914 seeks to amend the Occupational Code (MCL 339.2010) by eliminating the
longstanding requirement that at least two-thirds of a firm’s principals be licensed
architects, professional engineers, or professional surveyors in order to engage in these
practices. While the bill maintains provisions for licensed individuals in responsible charge
at business locations and departmental approval for non-licensed principals, removing the
ownership threshold could allow non-professionals to dominate firm governance—
prioritizing commercial interests over ethical and safety considerations. This change,
introduced on September 11, 2025, and currently pending in your committee, overlooks the
critical role of licensed majority ownership in safeguarding public welfare.

Public Safety and Professional Oversight at Risk

Licensed professionals in architecture, engineering, and surveying are bound by rigorous
ethical codes and disciplinary mechanisms that ensure competence and accountability.

ACEC Michigan | 530 W. Ionia Street, Suite D | Lansing, MI 48933
P:517.332.2066 | F:517.332.4333 | acecmi.org
The current two-thirds requirement guarantees that decision-making remains in the hands
of those educated and trained to prioritize public health, safety, and welfare—preventing
scenarios where unqualified individuals influence designs that could lead to structural
failures, public health concerns, environmental hazards, or costly errors. Firm principals
and owners guide the firm and control final decisions on architectural/engineering designs.
These important decisions need to be made by licensed design professionals that
understand the science behind the decision. Without this threshold, firms might cut
corners to maximize profits, diluting the protections that have served Michigan well for
decades.

Public Safeguards for Firms

Michigan only licenses individuals to practice professional engineering, architecture or
surveying. Professional firms are not licensed to practice professional engineering or
architecture. This means Michigan does not issue a firm Certificate of Authorization, firm
license, or firm registration as many other states do (currently 40+).

HB 4914 deletes the only real statutory safeguard Michigan currently has at the firm level -
the two-thirds licensed-principal requirement.

In other words:

¢ Before HB 4914: Firm ownership and leadership had to have a 2/3 majority of
professional licensed individuals personally accountable to the Board.

e After HB 4914: There is no statutory firm ownership or competency threshold.

Moreover, HB 4914 does not add a new firm-licensing regime (such as a Certificate of
Authorization) to replace the lost protection, leaving Michigan well below the standard of
care used in other states.

Key message: Michigan’s two-thirds rule is not “red tape.” It is the only statewide structural
safety check in place to ensure professional architecturaVengineering firms are protecting
the health, safety and welfare of the public. All other states have at least one of several
protections: Licensed ownership requirements, firm licensure, or Certificate of
Authorization. HB 4914 would remove the states current and only protection and knowingly
lower the bar below what other states require to protect the public.

Alignment with National Standards

As detailed in the American Bar Association’s Forum on Construction Law’s 50-State
Survey of Firm Licensure Requirements for Architectural and Engineering Firms (2nd
Edition, October 2024), Michigan’s current requirment aligns with practices in
approximately 20-25 states that mandate majority licensed ownership, often at two-thirds,
This survey, co-edited by experts Matthew J. Ninneman and Mark W. Mercante, emphasizes
that such thresholds ensure professional control and ethical governance.

Nearly every state—42 out of 50—requires engineering firms to have either licensed
owners/principals or to obtain a Certificate of Authorization (COA) or permit to offer
services, with many mandating both requirements for layered protection. Examples
include:

Alabama: Requires two-thirds or more of officers, partners, or directors to be
licensed for COAs, ensuring accountable oversight.

e¢ Connecticut: Requires not less than two-thirds of members or owners to be
licensed, holding two-thirds of voting interests for firm registration.

e Maryland: Requires at least two-thirds of directors, partners, or members to be
licensed, with mandatory permitting.

e Nevada: Requires control and two-thirds ownership by licensed persons, with
resident professionals in responsible charge.

« North Carolina: Requires a minimum of two-thirds ownership by professionals,
with state-licensed officers.

These examples demonstrate that Michigan’s framework is not an outlier but a proven
mechanism for protection. Removing the two-thirds requirement without implementing
Certificates of Authorization or similar mechanisms would leave no firm-level safeguards,
uniquely exposing residents to risks and placing Michigan below national standards.

Broader Professional Perspectives

National organizations—including the National Council of Architectural Registration

Boards (NCARB) and the Alliance for Responsible Professional Licensing—emphasize that
licensure protects against negligence in high-risk professions. While deregulation might
appear to ease business entry, it risks eroding public trust and safety. Our coalition urges
the Committee to preserve the two-thirds rule, which already provides flexibility by allowing
one-third non-licensed ownership while maintaining essential public protections.

We respectfully request that the Committee not advance House Bill 4914. We are

available to provide testimony or additional information at your convenience. Please
contact us at the addresses below.

Sincerely,

Hin Brunke

Ron Brenke, PE, Executive Director
ACEC/Michigan

530 W. lonia Street, Suite D
Lansing, MI 48933

(517) 332-2066

rbrenke@acecmi.org

cc: The Honorable Matt Hall, Speaker of the Michigan House of Representatives
The Honorable Bill G. Schuette, Chair, House Rules Committee

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