HLS 15RS-737 REENGROSSED
2015 Regular Session
HOUSE BILL NO. 647
BY REPRESENTATIVE IVEY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
LEGISLATIVE AUDITOR: Provides relative to the powers of the Legislative Audit
Advisory Council
1 AN ACT
2To amend and reenact R.S. 24:554(B), relative to the Legislative Audit Advisory Council;
3 to provide relative to the powers, duties, and authority of the council; to provide
4 relative to an auditee or local auditee that fails to comply with recommendations or
5 to correct findings contained in an audit report; to authorize the council to conduct
6 a hearing under certain circumstances; to authorize the council to direct the treasurer
7 to withhold funds under certain circumstances; to provide relative to the authority,
8 functions, and duties of the Joint Legislative Committee on the Budget; to require
9 the committee to hold certain hearings; to authorize the committee to recommend
10 certain appropriation penalties under certain circumstances; and to provide for
11 related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 24:554(B) is hereby amended and reenacted to read as follows:
14 ยง554. Powers
15 * * *
16 B.(1)(a) If the council determines based upon its review and investigation
17 that, without appropriate cause, an auditee has not complied with the
18 recommendations resolved the findings contained in an audit report of such auditee,
19 the council shall forward its determination of noncompliance to the Joint Legislative
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1 Committee on the Budget and the appropriate oversight committees of the House of
2 Representatives and the Senate.
3 (b)(i) If the council determines based upon its review and investigation that,
4 without appropriate cause, an auditee has failed for three consecutive years to
5 sufficiently resolve the findings contained in an audit report of such auditee, the
6 council may, after notice to and a public hearing with the auditee, make a
7 determination that the auditee has failed or refused to comply with the provisions of
8 R.S. 24:513, and upon two-thirds vote of the entire membership of the council, may
9 forward its determination of noncompliance to the Joint Legislative Committee on
10 the Budget.
11 (ii) If the Joint Legislative Committee on the Budget receives a
12 determination of noncompliance pursuant to Item (i) of this Subparagraph, the
13 committee shall hold a hearing on the matter. If the committee determines that the
14 auditee has failed for three consecutive years to sufficiently resolve the findings
15 contained in an audit report of such auditee, the committee may, by the adoption of
16 a committee resolution, provide for the imposition of a penalty upon the auditee by
17 recommendation to the legislature that provisions for such penalty be included in a
18 subsequent appropriation for the auditee.
19 (iii) The provisions of Items (i) and (ii) of this Subparagraph shall apply only
20 to financial findings, findings relative to a material weakness as defined by the
21 Governmental Accounting Standards Board, or findings in a compliance audit.
22 (2) If the council determines based upon its review and investigation that,
23 without appropriate cause, a local auditee as defined in R.S. 24:513 has failed for
24 three consecutive years to sufficiently resolve the findings contained in an audit
25 report of such local auditee, the council may, after notice to and a public hearing
26 with the local auditee, make a determination that the local auditee has failed or
27 refused to comply with the provisions of R.S. 24:513, and upon two-thirds vote of
28 the entire membership of the council, may direct the treasurer to withhold funds in
29 accordance with R.S. 39:72.1.
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HB NO. 647
1 Section. 2. This Act shall become effective on June 30, 2016.
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)]
HB 647 Reengrossed 2015 Regular Session Ivey
Abstract: Provides relative to the powers, duties, and authority of the Legislative Audit
Advisory Council.
Present law (R.S. 24:513) grants the legislative auditor the authority to compile financial
statements and to examine, audit, or review the books and accounts of the state treasurer, all
public boards, commissions, agencies, departments, political subdivisions of the state, public
officials and employees, public retirement systems enumerated in present law (R.S.
11:173(A)), municipalities, and all other public or quasi public agencies or bodies. Provides
that the scope of the examinations may include financial accountability, legal compliance,
and evaluations of the economy, efficiency, and effectiveness of the auditee's programs or
any combination of the foregoing. Provides further that the legislative auditor shall have
access to and be permitted to examine all papers, books, accounts, records, files, instruments,
documents, films, tapes, and any other forms of recordation of all auditees, including but not
limited to computers and recording devices, and all software and hardware which hold data,
is part of the technical processes leading up to the retention of data, or is part of the security
system.
Present law (R.S. 39:72.1) provides that no funds appropriated in the general appropriations
Act, the capital outlay Act, or other appropriation Act, shall be released or provided to any
recipient of an appropriation if, when, and for as long as, the recipient fails or refuses to
comply with the provisions of present law (R.S. 24:513).
Present law (R.S. 24:651) creates the Joint Legislative Committee on the Budget (JLCB) as
the budgetary and fiscal representative of the legislature to assist that body in the discharge
of its fiscal and budgetary responsibilities under the Constitution of La. and to provide the
legislature with information relative to such responsibilities from a source created by and
responsible solely to the members of the legislature.
Present law creates the Legislative Audit Advisory Council to advise and consult with the
legislative auditor with respect to all matters arising out of his functions, duties, and
responsibilities to the legislature. Provides that the council shall make such
recommendations to the legislative auditor and to the legislature as it deems necessary or
expedient. Provides that the council is responsible for reviewing and approving, with
whatever changes it deems necessary or appropriate, each annual budget for the office of the
legislative auditor prior to submission of such budget to the legislature for funding and that
the council is responsible for fixing the salary of the legislative auditor.
Present law (R.S. 24:554) provides that the council shall have the power and authority to
hold hearings, to subpoena witnesses, administer oaths, compel the production of books,
documents, records, and papers, public and private, to order the compiling and furnishing
to the legislative auditor of the sworn statements and actuarial valuations which are required
by present law (R.S. 24:514), to petition directly, or through a representative authorized by
the council, the courts for writs of mandamus to order the compiling and furnishing of the
sworn statements and actuarial valuations required by present law (R.S. 24:514), and to do
all other things necessary to advise, aid, and assist the legislative auditor in carrying out the
duties and responsibilities of his office. Provides that the council also has the full power and
authority of the legislature inherent in that body and conferred by law to take testimony at
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HB NO. 647
public or private hearings, and upon failure of any person to comply with an order of the
council, to punish for contempt.
Present law provides that if the council determines based upon its review and investigation
that, without appropriate cause, an auditee has not complied with the recommendations
contained in an audit report of such auditee, the council shall forward its determination of
noncompliance to the JLCB and the appropriate oversight committees of the House of
Representatives and the Senate.
Proposed law retains present law and additionally provides that if the council determines
based upon its review and investigation that, without appropriate cause, an auditee has failed
for three consecutive years to sufficiently resolve the findings contained in an audit report
of such auditee, the council may, after notice to and a public hearing with the auditee, make
a determination that the auditee has failed or refused to comply with the provisions of
present law (R.S. 24:513), and upon two-thirds vote of the entire membership of the council,
may forward its determination of noncompliance to the JLCB.
Proposed law provides that if the JLCB receives a determination of noncompliance pursuant
to proposed law, the committee shall hold a hearing on the matter. Provides that if the
committee determines that the auditee has failed for three consecutive years to sufficiently
resolve the findings contained in an audit report of such auditee, the committee may, by the
adoption of a committee resolution, provide for the imposition of a penalty upon the auditee
by recommendation to the legislature that provisions for such penalty be included in a
subsequent appropriation for the auditee.
Proposed law limits its applicability to financial findings, findings relative to a material
weakness as defined by the Governmental Accounting Standards Board, or findings in a
compliance audit.
Proposed law additionally provides that if the Audit Advisory Council determines based
upon its review and investigation that, without appropriate cause, a local auditee as defined
in present law (R.S. 24:513) has failed for three consecutive years to sufficiently resolve the
findings contained in an audit report of such local auditee, the council may, after notice to
and a public hearing with the local auditee, make a determination that the local auditee has
failed or refused to comply with the provisions of present law (R.S. 24:513) and, upon a two-
thirds vote of the entire membership of the council, may direct the treasurer to withhold
funds in accordance with present law (R.S. 39:72.1).
Effective June 30, 2016.
(Amends R.S. 24:554(B))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on House and
Governmental Affairs to the original bill:
1. Make the holding of a hearing and directing the treasurer to withhold funds under
certain circumstances permissive instead of mandatory.
2. Require a two-thirds vote of the entire council in order to direct the treasurer to
withhold funds.
3. Require the auditee or local auditee to "resolve" the findings contained in an
audit report instead of requiring the auditee or local auditee to "comply with
recommendations or correct findings" in the audit report.
4. Add a special effective date.
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HB NO. 647
The House Floor Amendments to the engrossed bill:
1. Remove auditees from proposed law provisions relative to withholding funds in
accordance with present law (R.S. 39:72.1), thereby making such provisions
applicable only to local auditees.
2. Authorize the Audit Advisory Council to forward to the Joint Legislative
Committee on the Budget (JLCB) a determination that an auditee has failed for
three consecutive years to sufficiently resolve the findings contained in an audit
report.
3. Require the JLCB to conduct a hearing on such a determination and authorize the
JLCB to recommend an appropriation penalty to the legislature if the committee
determines that the auditee has failed for three consecutive years to sufficiently
resolve the findings contained in the audit report for the auditee.
4. Limit proposed law provisions relative to the JLCB to financial findings, findings
relative to a material weakness as defined by the Governmental Accounting
Standards Board, or findings in a compliance audit.
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