Proposal to remove two‑thirds licensed‑owner rule for architecture firms raises safety and competition questions

Representative Altman introduced House Bill 49‑14, which would eliminate the statutory requirement that two‑thirds of a firm's principals be licensed architects, engineers or surveyors. Altman said the provision is an outdated ownership ratio that makes Michigan an outlier in the Great Lakes region and that removing it would promote competition and the formation of new firms.

The sponsor said project safety would remain protected because every design must still be signed, stamped and sealed by a licensed professional; the change affects only ownership structure, not licensing or professional responsibility. Altman cited a February 2025 LARA red‑tape report recommending removal of the requirement and said other states use a more flexible responsible‑in‑charge model.

Committee members asked whether the rule's removal would lead to public‑safety concerns, with several members noting that administrators or nonlicensed owners could exert pressure on licensed professionals at firms. Altman and supporters argued that the evidence from other states shows no widespread safety problems after similar changes and that licensed professionals remain accountable for their work.

The sponsor said 12 states currently retain a two‑thirds requirement while others have lower or no ownership thresholds and cited Iowa's repeal in 2014 as an example. Several trade groups had signaled opposition in written comments (as noted by members), and the committee did not vote on the bill; the sponsor was invited to return for additional testimony at a later time.

No committee action was taken at this meeting.