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Bill 4914 would remove two-thirds licensed-owner requirement for design firms; industry groups warn of accountability risks

October 20, 2025 | 2025 House Legislature MI, Michigan


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Bill 4914 would remove two-thirds licensed-owner requirement for design firms; industry groups warn of accountability risks
House Bill 4914 would remove an existing statutory requirement that two-thirds of a design firm's principals be licensed engineers or surveyors. Sponsors described the measure as a red-tape reduction aimed at promoting business formation and broadening ownership opportunities.

Representative Altman, speaking for the bill, said removing the two-thirds ownership requirement "will not impact public safety or the quality of the work being done" and that projects still must be performed or signed-off by licensed individuals. Altman said the change came from LARA's 2025 red-tape report and was intended to encourage formation of new firms.

Opponents from the engineering community, including Ron Brink of the American Council of Engineering Companies (ACEC), told the committee they had not been consulted and raised concerns about accountability and public safety. Brink testified that licensed engineers design critical infrastructure — bridges, water-treatment plants and stadiums — and warned that lowering ownership thresholds could lead to companies where owners are not professionally invested in engineering practice.

Brink also said the two-thirds rule historically helped ensure company decisions are guided by licensed professionals; he said allowing firms with only a single licensed engineer could permit non-engineering owners to control financial decisions that affect technical outcomes.

Committee members discussed how many states retain the two-thirds rule; Brink estimated fewer than 10 states still have it and cited changes in other states (Iowa repealed it in 2014). The committee did not vote on the bill at the hearing. LARA representative Paige Fultz said LARA's recommendations supported removal of the two-thirds ownership piece and that discussions are ongoing with stakeholders.

Ending: Sponsors and LARA said they aim to continue stakeholder engagement; engineering groups asked for further consultation and analyses of safety and reciprocity implications before statute change.

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Scribe from Workplace AI
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