When the 2024 state legislative session started, the AICPA Advocacy Team predicted that artificial intelligence (AI), digital assets, and environmental, social and governance (ESG) matters would be pressing and pertinent topics. And as predicted, these topics came up a lot — with AI legislation and licensing issues being the biggest priorities in states.
“This was a very busy season,” said Marta Zaniewski, vice president of state regulatory and legislative affairs at AICPA & CIMA, together as the Association of International Certified Professional Accountants. “Given what we saw this year, we expect these issues and trends to continue for the next several years.”
Trends to monitor in state legislatures
During this legislative session, the AICPA tracked 400 AI bills that were introduced in several states, including Virginia, New York, Hawaii and New Jersey. Fourteen states addressed the topic of AI by forming task forces, studying deepfakes and learning more about campaign transparency. States including Washington, Delaware and Georgia introduced legislation to begin creation of an AI regulatory framework.
Utah, Oklahoma, Iowa and Arizona focused attention on the regulation of digital assets during their legislative session. In total, the AICPA tracked over 200 bills pertaining to digital assets.
Another subject of importance during this past session was ESG matters, which had the biggest push in New York and Illinois. New York introduced SB 7705 and SB 897; meanwhile, Illinois introduced HB 4268. All of these bills had a strong focus on sustainability as it pertains to ESG reporting and followed key policy provisions of the 2023 California ESG legislation — AB 1305, SB 253 and SB 261.
“The California bill that passed last year is the most progressive in the country, but that also has come with some level of scrutiny.” said Zaniewski. “We will continue to watch what will happen in California regarding ESG policy as it will provide a roadmap for other jurisdictions.”
Advocacy for accounting begins in the states
The upcoming 2024 presidential and state elections added to the busyness of the year. Zaniewski believes that after the elections legislative sessions will only get busier, and this will trickle down to the profession. As new policies are set, and new lawmakers come into office, the profession will continue to advocate and educate on key issues.
“At the state level, there will be new governors and state legislators,” said Zaniewski. “Folks need to know that when these new policymakers come in, they will need to learn about our issues, why they matter, and learn about the profession and the role it plays with the public.”
To continue the profession’s advocacy success, we will need to be able to explain in a concise way what issues matter to the profession and how partnerships can be forged, said Zaniewski. She predicts the new state legislators will have full dockets reviewing pertinent issues for their constituents.
“We need to figure out how we prioritize and really discuss our issues to these new legislators in a way that will matter to them and matter to our members,” said Zaniewski. “We are a trusted source and a trusted resource in the states, and we need to continue to build on that trust.”