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. 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.