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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; to provide4
relative to the expungement of records of persons convicted of misappropriation and5
theft; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 24:523 is hereby amended and reenacted and R.S. 24:524 is hereby8
enacted to read as follows: 9
§523. Notification of the legislative auditor and district attorney10
A. An agency head of an auditee who reasonably suspects, because of an11
action, including but not limited to an investigation, filing of a police report, or an12
internal audit finding, or who has actual knowledge of any misappropriation of the13
public funds or assets of his agency shall immediately notify, in writing, the14
legislative auditor and the district attorney of the parish in which the agency is15
domiciled of such misappropriation. The district attorney, or other prosecutorial16
agency, notified of such misappropriation may request audit assistance from the17
legislative auditor with respect to the misappropriation.18 HLS 14RS-1202 REENGROSSED
HB NO. 439
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B. When misappropriation is discovered and reported, the attorney general,1
at the request of the legislative auditor, may recover misappropriated funds or assets2
from the responsible party by civil suit. The attorney general shall also seek3
restitution from the responsible party of those costs incurred by the legislative4
auditor to audit, investigate, or report on allegations of misappropriation.5
C. For the purposes of this Section:6
(1) the The terms "agency head" and "his agency" shall have the same7
meanings as provided in R.S. 42:1102.8
(2) "Responsible party" means the person or entity actually responsible for9
the reported misappropriation.10
§524. Restitution of audit costs11
A. All costs incurred by the legislative auditor to audit, investigate, or report12
possible fraud, theft, or other misappropriation shall be recoverable by civil suit13
against the responsible party. The attorney general, at the request of the legislative14
auditor, may seek recovery on behalf of the legislative auditor of such costs through15
civil suit against the responsible party.16
B. The attorney general may also seek recovery from the responsible party17
of all costs and reasonable attorney fees incurred by the attorney general in a civil18
suit instituted at the request of the legislative auditor as provided in Subsection A of19
this Section.20
C. The attorney general or the local district attorney prosecuting such crimes21
shall also seek restitution of such costs incurred by the legislative auditor.22
D. If costs for an audit that were previously reimbursed pursuant to R.S.23
24:517.1 or 517.3 are recovered pursuant to this Section, those costs shall be paid to24
the appropriate public or quasi public entity.25
E. No person convicted of misappropriation or theft shall have his record26
expunged until he has made restitution and at least five years have passed since his27
conviction.28 HLS 14RS-1202 REENGROSSED
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F. For purposes of this Section, "responsible party" means the person or1
entity actually responsible for the misappropriation.2
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, provides for recovery of misappropriated funds or
assets and for recovery and restitution of related costs, and provides relative to
expungement of records of persons convicted of misappropriation or theft.
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.
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. Further
authorizes the attorney general to seek recovery from the responsible party of all costs and
reasonable attorney fees incurred by the attorney general in a civil suit instituted at the
request of the legislative auditor as provided by proposed law.
Proposed law further specifies that if costs for an audit that were previously reimbursed
pursuant to present law (R.S. 24:517.1 or 517.3) are recovered pursuant to proposed law,
those costs shall be paid to the appropriate public or quasi public entity.
Proposed law provides that no person convicted of misappropriation or theft shall have his
record expunged until he has made restitution and at least five years have passed since his
conviction. HLS 14RS-1202 REENGROSSED
HB NO. 439
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are additions.
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)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on House and Governmental
Affairs to the original bill.
1. Adds that the attorney general may seek recovery of his costs and attorney fees
in a civil suit.
2. Specifies that if costs are recovered for an audit that were previously reimbursed,
those costs shall be paid to the appropriate public or quasi public entity.
House Floor Amendments to the engrossed bill.
1. Adds provision that no person convicted of misappropriation or theft shall have
his record expunged until he has made restitution and at least five years have
passed since his conviction.