Capitol Corner



We had a very successful 2019 legislative session, defeating a sales tax on accounting and tax services proposal, stopping an increase to the CPA license fee, and addressing a number of other troublesome bills. Thank you all for playing an active role in our advocacy efforts. It would not have been possible without the help of all of you who heard our calls to action and emailed legislators, submitted testimony, donated to our digital advertising efforts, and more. Thank you!

Read the 2019 Connecticut Legislative Session Wrap-Up (pdf). 

View the complete text of Public Act 19-186 and Public Act 19-117. 

         

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We've got our eye on happenings at the Capitol! If 
state or federal legislation or accounting standards activity will affect you, your company, or your clients, we'll keep you updated here.

State News

Red Ink Continues To Climb
State Comptroller Kevin Lembo is predicting the state will end the year with a $31.6 million deficit. The total is $1.9 million higher than the $29.7 million the legislature’s Office of Fiscal Analysis predicted last month, and it’s $12 million more than the $19.6 million Gov. Ned Lamont’s Office of Policy and Management predicted.
Gov. Lamont wants special session to vote on highway tolls, hospitals and restaurants during week of Dec. 16
Gov. Ned Lamont told leaders of the state legislature Tuesday evening that he wants a special session before Christmas to approve four contentious issues, including a scaled-back highway tolls plan. "I understand and appreciate this is a difficult and expedited time frame, but believe these to be important issues which require resolution before year-end,'' Lamont said in an email to both Democratic and Republican leaders. “I have instructed my office to prioritize my time to...
Nonprofits say philanthropy alone can’t save services
To paraphrase Connecticut’s private, nonprofit social service agencies: Gov. Ned Lamont just doesn’t get it. Frustration with Lamont, who rebuffed a request from nonprofits for $100 million of the state’s $2.5 billion reserve, recently surged after the governor urged the agencies to ask more from wealthy donors.
Court Hands Municipal Broadband Supporters A Victory
Superior Court Judge Joseph Shortall just made it easier for cities and towns to begin contemplating what municipal Internet service might look like for their residents and businesses. In a decision issued last week, Shortall found that the Public Utilities Regulatory Authority “overstepped its bounds as an administrative agency” in deciding the municipalities were restricted from using what’s called “free gain” or utility pole space to provide internet service to its residents.
Lamont’s dedication to reserves stems from debts heaped on Malloy
As Gov. Ned Lamont tries to decide whether to weaken Connecticut’s firewall against the next recession to jumpstart its cash-starved transportation program — as Republicans have proposed — he can’t help but look backward. Lamont’s rearview mirror is fixed on his predecessor, Dannel P. Malloy. More specifically, it’s centered on the fiscal chaos Malloy faced — due in no small part to the empty reserves and debt he inherited.

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Accounting Standards and Regulations

FASB Issues Narrow-Scope Improvements to Credit Losses Standard
The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that addresses issues raised by stakeholders during the implementation of Accounting Standards Update No. 2016-13, Financial Instruments—Credit...
FASB Delays Certain Effective Dates for Credit Losses, Leases, Hedging, and Long-Duration Insurance Standards
The Financial Accounting Standards Board (FASB) today issued two Accounting Standards Updates (ASUs) that finalize various effective date delays for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance...
How the CPA Exam is poised to change
New technologies with the power to reshape accounting, such as data analytics, are emerging all the time. In this podcast, Rich Gallagher, CPA, senior director of content for the AICPA Examinations team, tells us how the CPA Exam is able to keep...
IRS, Treasury issue final regulations on new reporting requirements for life insurance contract transactions
The Internal Revenue Service today issued final regulations on the new information reporting requirements for certain life insurance contract transactions. The requirement was authorized under new section 6050Y, added to the Internal Revenue...
FASB votes to delay effective dates for 3 major standards
Effective dates will be delayed for private companies and certain other entities for FASB’s standards on accounting for leases, credit losses (known as CECL), and hedging after a unanimous vote Wednesday by FASB. FASB directed its staff to draft...

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Federal News

FASB Issues Narrow-Scope Improvements to Credit Losses Standard
The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that addresses issues raised by stakeholders during the implementation of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
Funding cliff for community health centers puts staffing, patients at risk
Federal funding for community health centers is nearing expiration this year. And both health professionals and politicians are warning, that may have some impacts on Connecticut centers and patients. Laying people off of work isn’t something that CEO Nichelle Mullins wants to do just before the holidays. But if federal funding for Charter Oak Health Center in Hartford stops coming, she may have to.
Consumers support U.S. economy as business spending slumps
U.S. economic growth slowed less than expected in the third quarter as a further contraction in business investment was offset by resilient consumer spending, further allaying financial market fears of a recession. The Federal Reserve cut interest rates for the third time this year on Wednesday amid lingering threats to the longest expansion on record from uncertainty over trade policy, slowing global growth and Britain’s departure from the European Union.
Elections bring new focus on college debt, which burdens CT students more than others
Like many young couples who are starting a life together today, Dan and Sherry Agabiti carry a burden that’s largely unique to their generation – a large amount of college debt. Dan Agabiti, 28, is a Rhode Island native who wanted the experience of attending college away from home. He enrolled as an out-of-state student at the University of Connecticut against the counsel of friends and family who warned him it would cost too much.
How CPAs can prepare for the California Consumer Privacy Act
Last week, California Governor Gavin Newsom signed into law six amendments to the California Consumer Privacy Act, the comprehensive state privacy law that will go into effect Jan. 1, 2020, creating new compliance issues for CPAs and their clients. CCPA will “become the most stringent privacy law of any single state,” explained Anthony Pugliese, CEO of the California Society of CPAs, who spoke to Accounting Today about the wide-ranging effects of the new legislation on the eve of it being...

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