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Regular Session, 2012
SENATE BILL NO. 666
BY SENATOR MURRAY
FISCAL CONTROLS. Provides for access to, and availability of, privileged information
of offices subject to audit or review by the legislative auditor for such purposes. (8/1/12)
AN ACT1
To amend and reenact R.S. 24:513(A)(5)(a)(i), (G) and (I), 513.3(C) and (G), and 518(A)(1),2
(B) and (C) and Code of Evidence Art. 513 and to enact Code of Evidence Art.3
506(C)(7) and 515(C)(11), relative to audit of public funds; to provide for access to,4
and availability of, privileged information of offices subject to audit or review by the5
legislative auditor for such purpose; to provide for applicability of restrictions on6
disclosure of such privileged information; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 24:513(A)(5)(a)(i), (G) and (I), 513.3(C) and (G), and 518(A)(1),9
(B), and (C) are hereby amended and reenacted to read as follows: 10
§513. Powers and duties of legislative auditor; audit reports as public records;11
assistance and opinions of attorney general; frequency of audits; subpoena12
power13
A. * * *14
(5)(a)(i) In lieu of examinations of the records and accounts of any office15
subject to audit or review by the legislative auditor, the legislative auditor may, at16
his discretion, accept an audit or review report prepared by a licensed certified public17 SB NO. 666
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accountant, provided that such audit or review is performed in accordance with1
generally accepted governmental auditing standards and the Louisiana Governmental2
Audit Guide, which is to be jointly published by the legislative auditor and the3
Society of Louisiana Certified Public Accountant's Governmental Accounting and4
Auditing Committee, and further provided that the legislative auditor has approved5
the engagement letter in accordance with this Section. The Louisiana Governmental6
Audit Guide is a standard for audits and reviews of auditees within Louisiana and7
shall be produced by the society and the legislative auditor, with input from the8
Louisiana Municipal Association, the Louisiana Police Jury Association, the9
Louisiana School Board Association, and any other interested parties. Such audits10
shall be completed within six months of the close of the entity's fiscal year. Reviews11
shall be conducted in accordance with the authoritative pronouncements issued by12
the American Institute of Certified Public Accountants and guidance provided in the13
Louisiana Governmental Audit Guide. For the limited purpose of providing the14
audits and reviews as provided in this Subsection, the certified public accountant15
shall have the access and assistance privileges afforded the legislative auditor in R.S.16
24:513(E) and (I). However, the certified public accountant shall comply with any17
and all restrictions imposed by law on documents, data, or information deemed18
confidential or privileged by law and furnished to the certified public accountant19
during the course of the audit or review.20
* * *21
G. The audit reports issued by the legislative auditor or accepted by the22
legislative auditor pursuant to this Section or R.S. 46:1064(B), shall be subject to the23
laws providing for inspection of public records and shall be available in the office24
of the legislative auditor three days after the date of issuance of the reports as25
provided by R.S. 44:6. However, this Subsection shall not apply to any documents,26
data, or information furnished the legislative auditor which are deemed confidential27
or privileged by law.28
* * *29 SB NO. 666
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I. The authority granted to the legislative auditor in this Section to examine,1
audit, inspect or copy shall extend to all books, accounts, papers, documents, records,2
files, instruments, films, tapes, and any other forms of recordation, including but not3
limited to computers and recording devices, whether confidential, privileged, or4
otherwise. However, the legislative auditor shall comply with any and all restrictions5
imposed by law on documents, data, or information deemed confidential or6
privileged by law and furnished to the legislative auditor.7
* * *8
§513.3. Audit reports; gaming regulator audits; review of gaming facilities9
* * *10
C. In addition and in furtherance of the legislative auditor's responsibility11
shown in Subsections A and B of this Section, provided the legislative auditor12
previously has obtained the written consent of the gaming operator and unless such13
written consent is subsequently rescinded in writing by the gaming operator, the14
legislative auditor may examine, audit, inspect, copy and/or review the books and15
records relating to revenues, including but not limited to accounts, papers,16
documents, files, instruments, films, tapes, all software and hardware which hold17
data, is part of the technical processes leading up to the retention of data, or is part18
of the security system, and any other forms of recordation relating to revenues,19
whether confidential, privileged, or otherwise, of a gaming operator of a facility.20
* * *21
G. In performing the functions of this Section, the legislative auditor shall22
comply with any and all restrictions imposed by law and by any rule, regulation, or23
contractual agreement on documents, data, or information deemed confidential or24
privileged by law and by any rule, regulation, or contractual agreement.25
* * *26
§518. Penalties27
A.(1) Any auditee, local auditee, or public officer, employee, or other person28
of said auditee:29 SB NO. 666
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(a) Who neglects, fails, or refuses, to furnish the legislative auditor with such1
papers, accounts, books, documents, films, tapes, and other forms of recordation,2
including but not limited to computer and recording devices, whether confidential,3
privileged, or otherwise, that he has the right to inspect and examine, or4
(b) Who shall deny him access to the office, or to papers, accounts, books,5
documents, films, tapes, and other forms of recordation, including but not limited to6
computer and recording devices, whether confidential, privileged, or otherwise, that7
he has the right to inspect or examine, or8
(c) Who refuses, fails, or neglects to transmit to the legislative auditor9
reports, statements of accounts or other documents upon request as provided by law10
or11
(d) Who, otherwise in any manner, obstructs or impedes the legislative12
auditor in making the examination authorized by law13
shall be fined not less than five hundred dollars, nor more than five thousand dollars,14
or imprisoned for not less than ten days, nor more than six months, or both.15
* * *16
B. Any director, officer, employee or agent of a corporation, cooperative17
association or partnership, or any other person:18
(1) Who neglects, fails, or refuses to furnish in a timely fashion to the19
auditee or local auditee or its representative such papers, accounts, books,20
documents, films, tapes, and other forms of recordation, including but not limited to21
computer and recording devices, whether confidential, privileged, or otherwise, that22
the auditee has the right to inspect and examine, or23
(2) Who shall deny the auditee or local auditee or its representative access24
to the office, or to papers, accounts, books, documents, films, tapes, and other forms25
of recordation, including but not limited to computer and recording devices, whether26
confidential, privileged, or otherwise, that the auditee has the right to inspect or27
examine, or28
(3) Who refuses, fails, or neglects to transmit to the auditee or local auditee29 SB NO. 666
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reports, statements of accounts or other documents upon request as provided by law1
or who obstructs or impedes the auditee in making the examination authorized by2
law shall be fined not less than five hundred dollars nor more than five thousand3
dollars, or imprisoned for not less than ten days nor more than six months, or both.4
C.(1) Each elected and appointed official, employee, and agent of the auditee5
or local auditee shall comply with any and all restrictions imposed by law on6
documents, data, or information deemed confidential or privileged by law and7
furnished to the auditee pursuant to Subsection B of this Section.8
(2) Any person who discloses such confidential or privileged documents,9
data, or information shall be fined not less than five hundred dollars nor more than10
five thousand dollars and, if a public employee, shall also be subject to dismissal11
from public employment.12
Section 2. Code of Evidence Art. 513 is hereby amended and reenacted and Art.13
506(C)(7) and 515(C)(11) are hereby enacted to read as follows:14
Art. 506. Lawyer-client privilege15
* * *16
C. Exceptions. There is no privilege under this Article as to a17
communication:18
* * *19
(7) Requested by the legislative auditor or a certified public accountant,20
in accordance with the provisions of R.S. 24:513, 513.1, 513.3, or 518. However,21
such communication, if otherwise privileged under this Article, shall remain22
privileged as to other parties.23
* * *24
Art. 513. Trade secrets25
A. A person has a privilege, which may be claimed by him or his agent or26
employee, to refuse to disclose, and to prevent another person from disclosing, a27
trade secret owned by him, if the allowance of the privilege will not tend to conceal28
fraud or otherwise work injustice. When disclosure is directed, the judge shall take29 SB NO. 666
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such protective measure as the interests of the holder of the privilege and of the1
parties and the furtherance of justice may require.2
B. There shall be no privilege under this Article concerning any trade3
secret document, data, or information requested to be examined, audited,4
inspected, copied, or reviewed by the legislative auditor, in accordance with the5
provisions of R.S. 24:513, 513.1,513.3, or 518. However, such document, data,6
or information, if otherwise privileged under this Article, shall remain7
privileged as to other parties, except as provided in Paragraph A of this Article.8
* * *9
Art. 515. Accountant-client privilege10
* * *11
C. Exceptions. There is no privilege under this Article as to a communication:12
* * *13
(11) Requested by the legislative auditor or a certified public accountant,14
in accordance with the provisions of R.S. 24:513, 513.1, 513.3, or 518. However,15
such communication, if otherwise privileged under this Article, shall remain16
privileged as to other parties.17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
Present law, relative to the audit of public funds, provides that in lieu of examinations of the
records and accounts of any office subject to audit or review by the legislative auditor, the
legislative auditor may accept an audit or review report prepared by a licensed certified
public accountant, provided that such audit or review is performed in accordance with
generally accepted governmental auditing standards and the Louisiana Governmental Audit
Guide and the legislative auditor has approved the engagement letter. Provides that for this
purpose, the certified public accountant shall have the access and assistance privileges
afforded the legislative auditor in present law.
Present law requires the certified public accountant to comply with any and all restrictions
imposed by law on documents, data, or information deemed confidential by law and
furnished to the certified public accountant during the course of the audit or review.
Proposed law retains present law and extends provisions to documents, data, or information
deemed privileged by law.
Present law provides that audit reports issued, or accepted, by the legislative auditor are
subject to the laws providing for inspection of public records and shall be available in the
office of the legislative auditor three days after the date of issuance of the reports. Provides SB NO. 666
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this shall not apply to any documents, data, or information deemed confidential by law.
Proposed law retains present law and extends exception to any documents, data, or
information deemed privileged by law.
Present law provides that the authority granted to the legislative auditor to examine, audit,
inspect or copy extends to all books, accounts, papers, documents, records, files,
instruments, films, tapes, and any other forms of recordation, including but not limited to
computers and recording devices, whether confidential or otherwise. Proposed law retains
present law and provides that the authority extends to privileged records.
Present law requires that the legislative auditor comply with any and all restrictions imposed
by law on documents, data, or information deemed confidential by law and furnished to the
legislative auditor. Proposed law retains present law and extends provisions to documents,
data, or information deemed privileged by law.
Present law, relative to gaming regulator audits and review of gaming facilities, provides that
if the legislative auditor previously has obtained the written consent of the gaming operator
and unless such written consent is subsequently rescinded in writing by the gaming operator,
the legislative auditor may examine, audit, inspect, copy and/or review the books and records
relating to revenues, including but not limited to accounts, papers, documents, files,
instruments, films, tapes, all software and hardware which hold data, is part of the technical
processes leading up to the retention of data, or is part of the security system, and any other
forms of recordation relating to revenues, whether confidential or otherwise, of a gaming
operator of a facility.
Proposed law retains present law and further authorizes access to such information and
materials of a gaming operator of a facility that is privileged by law under the same
circumstances.
Present law, relative to gaming regulator audits and review of gaming facilities, requires that
the legislative auditor comply with any and all restrictions imposed by law and by any rule,
regulation, or contractual agreement on documents, data, or information deemed confidential
by law and by any rule, regulation, or contractual agreement. Proposed law retains present
law and further makes such restrictions applicable to information and materials deemed
privileged by law and by any rule, regulation, or contractual agreement.
Present law provides that any auditee, local auditee, or public officer, employee, or other
person of said auditee:
(a)Who neglects, fails, or refuses to furnish the legislative auditor with such papers,
accounts, books, documents, films, tapes, and other forms of recordation, including
but not limited to computer and recording devices, whether confidential or otherwise,
that he has the right to inspect and examine, or
(b)Who shall deny him access to the office, or to papers, accounts, books, documents,
films, tapes, and other forms of recordation, including but not limited to computer
and recording devices, whether confidential or otherwise, that he has the right to
inspect or examine
is subject to a fine of not less than $500, nor more than $5,000, or imprisoned for not less
than 10 days, nor more than six months, or both.
Proposed law retains present law and extends its provisions to include privileged records.
Present law provides that any director, officer, employee or agent of a corporation,
cooperative association or partnership, or any other person: SB NO. 666
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(a)Who neglects, fails, or refuses to furnish in a timely fashion to the auditee or local
auditee or its representative such papers, accounts, books, documents, films, tapes,
and other forms of recordation, including but not limited to computer and recording
devices, whether confidential or otherwise, that the auditee has the right to inspect
and examine, or
(b)Who shall deny the auditee or local auditee or its representative access to the office,
or to papers, accounts, books, documents, films, tapes, and other forms of
recordation, including but not limited to computer and recording devices, whether
confidential or otherwise, that the auditee has the right to inspect or examine
is subject to a fine of not less than $500, nor more than $5,000, or imprisoned for not less
than 10 days, nor more than six months, or both.
Proposed law retains present law and extends its provisions to include privileged records.
Present law requires that each elected and appointed official, employee, and agent of the
auditee or local auditee comply with any and all restrictions imposed by law on documents,
data, or information deemed confidential by law and furnished to the auditee. Provides that
any person who discloses such confidential documents, data, or information shall be fined
not less than $500 nor more than $5,000 and, if a public employee, shall also be subject to
dismissal from public employment.
Proposed law retains present law and extends its provisions to include privileged records.
Present law provides a lawyer client privilege for certain communication between a client
and his lawyer and also provides an accountant privilege for certain communication between
a client and his accountant. Present law provides circumstances where such privileges do
not apply to a communication.
Proposed law retains present law and provides that the lawyer client privilege and accountant
client privilege do not apply to any communication requested by the legislative auditor or
a certified public accountant for audit purposes. However, such communication, if otherwise
privileged, shall remain privileged as to other parties.
Present law provides and establishes a privilege for certain trade secrets. Provides when
disclosure of such information is required. Proposed law provides that the privilege does not
apply to any trade secret document, data, or information requested by the legislative auditor
for audit purposes. However, such information, if otherwise privileged, shall remain
privileged as to other parties.
Effective August 1, 2012.
(Amends R.S. 24:513(A)(5)(a)(i), (G) and (I), 513.3(C) and (G), and 518(A)(1), (B), and (C)
and C.E. Art. 513; adds C.E. Art. 506(C)(7) and 515(C)(11))