Murray (SB 220) Act No. 692
Prior law provided that an agency head of an auditee who has actual knowledge of any
misappropriation of the public funds or assets of his agency shall immediately notify, in
writing, the legislative auditor and the district attorney of the parish in which the agency is
domiciled of such misappropriation.
New law retains prior law and additionally provides that an agency head who has reasonable
cause to believe that there has been a misappropriation shall provide such notification.
Provides that "reasonable cause" includes information obtained as a result of the filing of a
police report, an internal audit finding, or other source indicating such a misappropriation
has occurred.
New law provides that when misappropriation is discovered and reported, the attorney
general, at the request of the legislative auditor, is authorized to recover misappropriated
funds from the responsible party by civil suit. Requires that upon a finding of
misappropriation, the attorney general is to seek restitution from the responsible party of
those costs incurred by the legislative auditor to audit, investigate, or report an allegation of
misappropriation. Provides that all costs and reasonable attorney fees incurred by the
attorney general be recoverable from the responsible party.
New law defines "responsible party" as the person or entity actually responsible for the
reported misappropriation.
New law provides for restitution of audit costs and requires that costs incurred by the auditor
to audit, investigate, or report possible fraud, theft, or other misappropriation be recoverable
by civil suit against the responsible party and authorizes the attorney general, at the request
of the legislative auditor, to seek recovery of these costs through civil suit against the
responsible party. Also authorizes the attorney general or the local district attorney
prosecuting the case to seek recovery of costs and reasonable attorney fees incurred.
Provides that if audit costs were previously reimbursed, then those costs are to be paid to the
appropriate public or quasi public entity.
New 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.
Effective August 1, 2014.
(Amends R.S. 24:523; adds R.S. 24:524)