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Regular Session, 2014
HOUSE BILL NO. 409
BY REPRESENTATIVE CHAMPAGNE
LEGISLATIVE AUDITOR: Provides relative to the authority and duties of the legislative
auditor
AN ACT1
To amend and reenact R.S. 24:513(A)(4)(a)(vi) and (b) and to enact R.S.2
24:513(A)(4)(a)(vii) and (c), relative to the legislative auditor; to provide relative to3
the authority and duties of the legislative auditor; to authorize the legislative auditor4
to audit or investigate certain local auditees under certain circumstances; to provide5
for reimbursement for certain audits; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 24:513(A)(4)(a)(vi) and (b) are hereby amended and reenacted and8
R.S. 24:513(A)(4)(a)(vii) and (c) are hereby enacted to read as follows: 9
ยง513. Powers and duties of legislative auditor; audit reports as public records;10
assistance and opinions of attorney general; frequency of audits; subpoena11
power12
A.13
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(4)(a) Paragraph (3) of this Subsection and Subsection B of this Section15
notwithstanding, the legislative auditor may audit or investigate a local auditee only16
in those instances when:17
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(vi) The local auditee is a quasi public agency or body in receipt of public19
funds from any source. In such case, the legislative auditor may audit the public20 HLS 14RS-661 ENGROSSED
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funds at his discretion for financial accountability, statutory compliance, and1
evaluation of performance relative to the functions and activities of the quasi public2
agency or body.3
(vii) In the opinion of the legislative auditor and the Legislative Audit4
Advisory Council the best interest of the state of Louisiana would be served by his5
audit of the local auditee.6
(b) The legislative auditor shall be reimbursed in accordance with R.S.7
24:517.1(A) for audits performed pursuant to Subparagraph (a) of this Paragraph.8
(c) Any local auditee selected for audit under the provisions of Item (a)(iii)9
of this Paragraph shall have the right of appeal to the Legislative Audit Advisory10
Council. Furthermore, the legislative auditor shall ensure that under the provisions11
of Item (a)(iii) of this Paragraph audit services are not duplicated.12
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Champagne HB No. 409
Abstract: Authorizes the legislative auditor to audit or investigate certain quasi public
agencies or bodies that receive public funds and provides for reimbursement for
certain audits.
Present law (R.S. 24:513) provides for the powers and duties of the legislative auditor.
Includes the authority to examine, audit, or review the books of certain specified entities,
known as "auditees", including a quasi public agency or body. Defines "quasi public agency
or body" as:
(1)An organization, either not-for-profit or for profit, created by the state of La. or any
political subdivision or agency thereof, any special district or authority, or unit of
local government to perform a public purpose.
(2)An organization, either not-for-profit or for profit, that is a component unit of a
governmental reporting entity, as defined under generally accepted accounting
principles.
(3)An organization, either not-for-profit or for profit, created to perform a public
purpose and having one or more of the following characteristics:
(a)The governing body is elected by the general public. HLS 14RS-661 ENGROSSED
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(b)A majority of the governing body is appointed by or authorized to be
appointed by a governmental entity or individual governmental official as a
part of his official duties.
(c)The entity is the recipient of the proceeds of an ad valorem tax or general
sales tax levied specifically for its operations.
(d)The entity is able to directly issue debt, the interest on which is exempt from
federal taxation.
(e)The entity can be dissolved unilaterally by a governmental entity and its net
assets assumed without compensation by that governmental entity.
(4)Any not-for-profit organization that receives or expends any local or state assistance
in any fiscal year.
(5)Any organization, either not-for-profit or for profit, which is subject to the Open
Meetings Law and derives a portion of its income from payments received from any
public agency or body.
Present law provides that the legislative auditor may audit or investigate a local auditee only
in certain specified instances.
Proposed law retains present law. Additionally provides that the legislative auditor may
audit or investigate a local auditee when the local auditee is a quasi public agency or body
in receipt of public funds from any source. Provides that in such case, the legislative auditor
may audit the public funds at his discretion for financial accountability, statutory
compliance, and evaluation of performance relative to the functions and activities of the
quasi public agency or body.
Proposed law provides that the legislative auditor shall be reimbursed in accordance with
present law (R.S. 24:517.1(A)) for audits of a local auditee performed pursuant to present
law and proposed law.
(Amends R.S. 24:513(A)(4)(a)(vi) and (b); Adds R.S. 24:513(A)(4)(a)(vii) and (c))