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Regular Session, 2014 ENROLLED
SENATE BILL NO. 220
BY SENATOR MURRAY
AN ACT
To amend and reenact R.S. 24:523 and to enact R.S. 24:524, relative to the legislative1
auditor; to provide for notification of the legislative auditor and the district attorney2
of the misappropriation of certain public funds; to provide for authorization for the3
attorney general to pursue misappropriated funds; to provide with respect to4
restitution for audit costs; to provide for definitions; and to provide for related5
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 has actual knowledge of any or11
reasonable cause to believe that there has been a misappropriation of the public12
funds or assets of his agency shall immediately notify, in writing, the legislative13
auditor and the district attorney of the parish in which the agency is domiciled of14
such misappropriation. "Reasonable cause" shall include information obtained15
as a result of the filing of a police report, an internal audit finding, or other16
source indicating such a misappropriation of agency funds or assets has17
occurred. The district attorney, or other prosecutorial agency, notified of such18
misappropriation may request audit assistance from the legislative auditor with19
respect to the misappropriation.20
B. For the purposes of this Section the terms "agency head" and "his agency"21
ACT No. 692 SB NO. 220 ENROLLED
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shall have the same meanings as provided in R.S. 42:1102.1
C. When misappropriation is discovered and reported, the attorney2
general, at the request of the legislative auditor, shall be authorized to recover3
misappropriated funds from the responsible party by civil suit. Upon a finding4
of misappropriation, the attorney general shall also seek restitution from the5
responsible party of those costs incurred by the legislative auditor to audit,6
investigate, or report an allegation of misappropriation, and all costs and7
reasonable attorney fees incurred by the attorney general in the civil suit shall8
be recoverable from the responsible party.9
D. For the purposes of this Section, "responsible party" means the10
person or entity actually responsible for the reported misappropriation.11
§524. Restitution of audit costs12
A. All costs incurred by the legislative auditor to audit, investigate, or13
report possible fraud, theft, or other misappropriation shall be recoverable by14
civil suit against the responsible party. The attorney general, at the request of15
the legislative auditor, may seek recovery on behalf of the legislative auditor of16
such costs through civil suit against the responsible party.17
B. The attorney general may also seek recovery from the responsible18
party of all costs and reasonable attorney fees incurred by the attorney general19
in a civil suit instituted at the request of the legislative auditor as provided in20
Subsection A of this Section.21
C. The attorney general or the local district attorney prosecuting such22
crimes shall also seek restitution of such costs incurred by the legislative23
auditor.24
D. If costs for an audit that were previously reimbursed pursuant to R.S.25
24:517.1 or 517.3 are recovered pursuant to this Section, those costs shall be26
paid to the appropriate public or quasi public entity.27
E. No person convicted of misappropriation or theft shall have his28
record expunged until he has made restitution and at least five years have29
passed since his conviction.30 SB NO. 220 ENROLLED
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F. For purposes of this Section, "responsible party" means the person1
or entity actually responsible for the misappropriation.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: