HLS 14RS-1202 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 439
BY REPRESENTATIVE GREENE
AUDITS/AUDITING: Provides with respect to misappropriation of public funds and
restitution and recovery related thereto
AN ACT1
To amend and reenact R.S. 24:523 and to enact R.S. 24:524, relative to misappropriation of2
public funds or assets; to require certain notifications by agency heads; to provide3
for recovery of misappropriated funds and for restitution of related costs; and to4
provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 24:523 is hereby amended and reenacted and R.S. 24:524 is hereby7
enacted to read as follows: 8
§523. Notification of the legislative auditor and district attorney9
A. An agency head of an auditee who reasonably suspects, because of an10
action, including but not limited to an investigation, filing of a police report, or an11
internal audit finding, or who has actual knowledge of any misappropriation of the12
public funds or assets of his agency shall immediately notify, in writing, the13
legislative auditor and the district attorney of the parish in which the agency is14
domiciled of such misappropriation. The district attorney, or other prosecutorial15
agency, notified of such misappropriation may request audit assistance from the16
legislative auditor with respect to the misappropriation.17
B. When misappropriation is discovered and reported, the attorney general,18
at the request of the legislative auditor, may recover misappropriated funds or assets19
from the responsible party by civil suit. The attorney general shall also seek20
restitution from the responsible party of those costs incurred by the legislative21
auditor to audit, investigate, or report on allegations of misappropriation.22 HLS 14RS-1202 ORIGINAL
HB NO. 439
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
C. For the purposes of this Section:1
(1) the The terms "agency head" and "his agency" shall have the same2
meanings as provided in R.S. 42:1102.3
(2) "Responsible party" means the person or entity actually responsible for4
the reported misappropriation.5
§524. Restitution of audit costs6
A. All costs incurred by the legislative auditor to audit, investigate, or report7
possible fraud, theft, or other misappropriation shall be recoverable by civil suit8
against the responsible party. The attorney general, at the request of the legislative9
auditor, may seek recovery on behalf of the legislative auditor of such costs through10
civil suit against the responsible party.11
B. The attorney general or the local district attorney prosecuting such crimes12
shall also seek restitution of such costs incurred by the legislative auditor.13
C. For purposes of this Section, "responsible party" means the person or14
entity actually responsible for the misappropriation.15
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)]
Greene HB No. 439
Abstract: Relative to misappropriation of public funds and assets, requires certain
notifications by agency heads and provides for recovery of misappropriated funds
or assets and for restitution of related costs incurred by the legislative auditor.
Present law requires an agency head of an auditee who has actual knowledge of any
misappropriation of the public funds or assets of his agency to immediately notify, in
writing, the legislative auditor and the district attorney of the parish in which the agency is
domiciled of such misappropriation. Authorizes the district attorney, or other prosecutorial
agency, so notified to request audit assistance from the legislative auditor with respect to the
misappropriation. Defines "agency head" and "his agency" as defined in the Code of
Governmental Ethics.
Proposed law retains present law and additionally requires an agency head who reasonably
suspects, because of an action, including but not limited to an investigation, filing of a police
report, or an internal audit finding, any misappropriation of public funds or agency assets
to give written notice of such misappropriation to the legislative auditor and the district
attorney. HLS 14RS-1202 ORIGINAL
HB NO. 439
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law further authorizes the attorney general, at the request of the legislative auditor,
to recover misappropriated funds or assets from the responsible party by civil suit when
misappropriation is discovered and reported . Requires the attorney general also to seek
restitution from the responsible party of costs incurred by the legislative auditor to audit,
investigate, or report on allegations of misappropriation.
Proposed law provides that all costs incurred by the legislative auditor to audit, investigate,
or report possible fraud, theft, or other misappropriation shall be recoverable by civil suit
against the responsible party. Authorizes the attorney general, at the request of the
legislative auditor, to seek recovery of such costs on behalf of the legislative auditor through
such a suit. Requires the attorney general or the local district attorney prosecuting such
crimes to also seek restitution of such costs incurred by the legislative auditor.
Proposed law provides that "responsible party" means the person or entity actually
responsible for the reported misappropriation.
(Amends R.S. 24:523; Adds R.S. 24:524)