Substitute House Bill No. 6699
          Substitute House Bill No. 6699

              PUBLIC ACT NO. 97-305


AN  ACT POSTPONING THE IMPLEMENTATION OF GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES (GAAP).


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Section  3-115b  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  Effective with the fiscal year commencing
July 1, [1997] 1999, the Comptroller is authorized
to   implement   the  use  of  generally  accepted
accounting  principles,  as  prescribed   by   the
Government   Accounting   Standards   Board,  with
respect to the preparation and maintenance of  the
annual  financial statements of the state, and the
Office of Policy and Management is  authorized  to
implement the use of generally accepted accounting
principles,  as  prescribed  by   the   Government
Accounting  Standards  Board,  with respect to the
preparation of the annual budget of the state.
    (b)  To  implement such accounting principles,
the Comptroller and the Secretary of the Office of
Policy  and  Management shall concurrently prepare
conversion    plans     for     the     respective
implementations pursuant to subsection (a) of this
section. The conversion plans shall  be  submitted
to  the  joint  standing  committee of the General
Assembly having cognizance of matters relating  to
appropriations  and  the budgets of state agencies
not later than February 1, 1994.
    (c)   The   Comptroller   shall  establish  an
opening   combined   balance   sheet    for    all
appropriated  funds  as of July 1, [1997] 1999, on
the  basis  of   generally   accepted   accounting
principles.  The  accrued  and unpaid expenses and
liabilities and other adjustments for the purposes
of generally accepted accounting principles, as of
June 30, [1997] 1999, shall be aggregated and  set
up  as  a  deferred charge on the combined balance
sheet and such deferred charge shall be  amortized
in   equal   increments   in  each  annual  budget
commencing with the fiscal year  ending  June  30,
[1999]  2001,  and  for  the  succeeding  fourteen
fiscal years.
    Sec.  2.  This  act  shall take effect July 1,
1997.

Approved July 8, 1997