SECONDREGULARSESSION
HOUSEBILLNO.2111
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECHRISTOFANELLI.
4503H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections29.005,29.235,374.250,and610.021,RSMo,andtoenactinlieuthereof
fivenewsectionsrelatingtopowersofthestateauditor.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections29.005,29.235,374.250,and610.021,RSMo,arerepealedand
2fivenewsectionsenactedinlieuthereof,tobeknownassections29.005,29.225,29.235,
3374.250,and610.021,toreadasfollows:
29.005.Asusedinthischapter,thefollowingtermsmean:
2 (1)"Accountingsystem",thetotalstructureofrecordsandprocedureswhich
3discover,record,classify,andreportinformationonthefinancialpositionandoperating
4resultsofagovernmentalunitoranyofitsfunds,balancedaccountgroups,and
5organizationalcomponents;
6 (2)"Audit",anindependent,objectiveassessmentofthestewardship,performance,or
7costofgovernmentpolicies,programs,oroperations,dependinguponthetypeandscopeof
8theaudit.Allauditsshallconformtothestandardsestablishedbythecomptrollergeneralof
9theUnitedStatesforauditsofgovernmententities,organizations,programs,activities,and
10functionsaspresentedinthepublicationGovernmentAuditingStandards;
11 (3)"Federalagency",anydepartment,agency,orinstrumentalityofthefederal
12governmentandanyfederallyownedorcontrolledcorporation;
13 (4)"Financialaudits",auditsprovidinganindependentassessmentofwhetheran
14entity'sreportedfinancialinformationispresentedfairlyinaccordancewithrecognized
15criteria.Financialauditsshallconsistofthefollowing:
16 (a)Financialstatementauditsthatshall:
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 a.Provideordisclaimanopinionaboutwhetheranentity'sfinancialstatementsare
18presentedfairlyinallmaterialrespectsinconformitywithaccountingprinciplesgenerally
19acceptedintheUnitedStatesorwithanotherapplicablefinancialreportingframework;or
20 b.Reportoninternalcontroldeficienciesandoncompliancewithprovisionsoflaws,
21regulations,contracts,andgrantagreements,asthosecontrolsandprovisionsrelateto
22financialtransactions,systems,andprocesses;or
23 (b)Otherfinancialauditsofvariousscopeswhichmayinclude,butnotbelimitedto:
24 a.Reportingonspecifiedelements,accounts,oritemsofafinancialstatement;and
25 b.Auditingcompliancewithrequirementsrelatedtofederalawardexpendituresand
26othergovernmentalfinancialassistanceinconjunctionwithafinancialstatementaudit;
27 (5)"Impropergovernmentalactivity",includesofficialmisconduct,fraud,
28misappropriation,mismanagement,wasteofresources,oraviolationofstateorfederal
29law,rule,orregulation;
30 (6)"Internalcontrol",theplans,policies,methods,andproceduresusedtomeetan
31entity'sororganization'smission,goals,andobjectives.Internalcontrolshallincludethe
32processesandproceduresforplanning,organizing,directing,andcontrollingoperations,as
33wellasmanagement'ssystemformeasuring,reporting,andmonitoringperformance;
34 [(6)](7)"Performanceaudits",auditsthatprovidefindingsorconclusionsbasedon
35anevaluationofsufficient,appropriateevidenceagainstidentifiedcriteria.Performanceaudit
36objectivesshallinclude,butnotbelimitedto,thefollowing:
37 (a)Effectivenessandresults.Thisobjectivemaymeasuretheextenttowhichan
38entity,organization,activity,program,orfunctionisachievingitsgoalsandobjectives;
39 (b)Economyandefficiency.Thisobjectiveshallassessthecostsandresourcesused
40toachieveresultsofanentity,organization,activity,program,orfunction;
41 (c)Internalcontrol.Thisobjectiveshallassessoneormorecomponentsofanentity's
42internalcontrolsystem,whichisdesignedtoprovidereasonableassuranceofachieving
43effectiveandefficientoperations,reliablefinancialandperformancereporting,orcompliance
44withapplicablelegalrequirements;and
45 (d)Compliance.Thisobjectiveshallassesscompliancewithcriteriaestablishedby
46provisionsoflaws,regulations,contracts,andgrantagreementsorbyotherrequirementsthat
47couldaffecttheacquisition,protection,use,anddispositionofanentity'sresourcesandthe
48quantity,quality,timeliness,andcostofservicestheentityproducesanddelivers;
49 [(7)](8)"Stateagency",anydepartment,institution,board,commission,committee,
50division,bureau,officer,orofficialwhichshallincludeanyinstitutionofhighereducation,
51mentalorspecialtyhospital,communitycollege,orcircuitcourtanddivisionsofthecircuit
52court.
HB2111 2 29.225.1.Theauditororhisorherauthorizedrepresentativesmayauditallor
2partofanypoliticalsubdivisionorothergovernmentalentity:
3 (1)If,afteraninvestigationofthepoliticalsubdivisionorgovernmentalentity
4undersection29.221,oritsofficersoremployees,theauditorbelievesanimproper
5governmentalactivityhasoccurred;or
6 (2)Whenrequestedbyaprosecutingattorney,circuitattorney,orlaw
7enforcementagencyaspartofaninvestigationofanimpropergovernmentalactivity.
8 2.Thecostsforallauditsinitiatedunderthissectionshallbepaidoutofthestate
9auditor'sbudget.
29.235.1.Theauditorandtheauditor'sauthorizedagentsareauthorizedto:
2 (1)Examineallbooks,accounts,records,reports,orvouchersofanystateagencyor
3entitysubjecttoaudit,insofarastheyarenecessarytoconductanauditunderthischapter,
4providedthattheauditorcomplieswithstateandfederalfinancialprivacyrequirementsprior
5toaccessingfinancialrecordsincludingprovisionspresentedinchapter408andprovidedthat
6theauditororotherpublicentityreimbursesthereasonabledocumentationandproduction
7costsrelatingtocompliancewithexaminationbytheauditororauditor'sauthorizedagents
8thatpertainto:
9 (a)Amountsreceivedunderagrantorcontractfromthefederalgovernmentorthe
10stateoritspoliticalsubdivisions;
11 (b)Amountsreceived,disbursed,orotherwisehandledonbehalfofthefederal
12governmentorthestate;
13 (2)Examineandinspectallproperty,equipment,andfacilitiesinthepossessionof
14anystateagency,politicalsubdivision,orquasi-governmentalentitythatwerefurnishedor
15otherwiseprovidedthroughgrant,contract,oranyothertypeoffundingbythestateof
16Missouriorthefederalgovernment;and
17 (3)Reviewstatetaxreturns,exceptsuchreviewshallbelimitedtomattersofofficial
18business,andtheauditor'sreportshallnotviolatetheconfidentialityprovisionsoftaxlaws.
19Notwithstandingconfidentialityprovisionsoftaxlawstothecontrary,theauditormayuseor
20discloseinformationrelatedtooverduetaxdebtsinsupportoftheauditor'sstatutorymission.
21 2.Allcontractsoragreementsenteredintoasaresultoftheawardofagrantbystate
22agenciesorpoliticalsubdivisionsshallinclude,asanecessarypart,aclausedescribingthe
23auditor'saccessasprovidedunderthissection.
24 3.Theauditormayobtaintheservicesofcertifiedpublicaccountants,qualified
25managementconsultants,orotherprofessionalpersonsandexpertsastheauditordeems
26necessaryordesirabletocarryoutthedutiesandfunctionsassignedunderthischapter.
27Unlessotherwiseauthorizedbylaw,nostateagencyshallenterintoanycontractforauditing
28serviceswithoutconsultationwith,andthepriorwrittenapprovalof,theauditor.
HB2111 3 29 4.(1)Insofarasnecessarytoconductanauditunderthischapteroraninvestigation
30undersection29.221, theauditorortheauditor'sauthorizedrepresentativesshallhavethe
31powertosubpoenawitnesses,totaketestimonyunderoath,tocausethedepositionof
32witnessesresidingwithinorwithoutthestatetobetakeninamannerprescribedbylaw,and
33toassemblerecordsanddocuments,bysubpoenaorotherwise.Thesubpoenapowergranted
34bythissectionshallbeexercisedonlyatthespecificwrittendirectionoftheauditororthe
35auditor'schiefdeputy.
36 (2)Ifanypersonrefusestocomplywithasubpoena,theauditorshallseektoenforce
37thesubpoenabeforeacourtofcompetentjurisdictiontorequiretheattendanceandtestimony
38ofwitnessesandtheproductionofbooks,papers,correspondence,memoranda,contracts,
39agreements,andotherrecords.Suchcourtmayissueanorderrequiringsuchpersontoappear
40beforetheauditororofficersdesignatedbytheauditortoproducerecordsortogive
41testimonyrelatingtothematterunderinvestigationorinquestion.Anyfailuretocomply
42withsuchorderofthecourtmaybepunishedbysuchcourtascontempt.
43 5.Testimonyandrecordsobtainedthroughtheauthoritytosubpoenaunderthis
44sectionshallbesubjecttothesameconfidentialityanddisclosureprovisionsprovided
45undersection29.200forauditworkpapersandrelatedsupportivematerial.
374.250.1.Thedirectorshalltakepropervouchersforallpaymentsmadebythe
2departmentandshalltakereceiptsfromthedirectorofrevenueforallmoneysthedepartment
3paystothedirectorofrevenue.
4 2.Atthecloseofeachstatefiscalyear,thestateauditorshallaudit,adjustandsettle
5allreceiptsanddisbursementsintheinsurancededicatedfundandtheinsuranceexaminers'
6fund,[andtaxescertifiedorcollectedundersections148.310to148.461orsections384.011
7to384.071] andtheresultsshallbereportedaspartoftheannualauditofthestate's
8financialstatements.
610.021.Excepttotheextentdisclosureisotherwiserequiredbylaw,apublic
2governmentalbodyisauthorizedtoclosemeetings,recordsandvotes,totheextenttheyrelate
3tothefollowing:
4 (1)Legalactions,causesofactionorlitigationinvolvingapublicgovernmentalbody
5andanyconfidentialorprivilegedcommunicationsbetweenapublicgovernmentalbodyor
6itsrepresentativesanditsattorneys.However,anyminutes,voteorsettlementagreement
7relatingtolegalactions,causesofactionorlitigationinvolvingapublicgovernmentalbody
8oranyagentorentityrepresentingitsinterestsoractingonitsbehalforwithitsauthority,
9includinganyinsurancecompanyactingonbehalfofapublicgovernmentbodyasitsinsured,
10shallbemadepublicuponfinaldispositionofthemattervoteduponoruponthesigningby
11thepartiesofthesettlementagreement,unless,priortofinaldisposition,thesettlement
12agreementisorderedclosedbyacourtafterawrittenfindingthattheadverseimpacttoa
HB2111 4 13plaintifforplaintiffstotheactionclearlyoutweighsthepublicpolicyconsiderationsof
14section610.011,however,theamountofanymoneyspaidby,oronbehalfof,thepublic
15governmentalbodyshallbedisclosed;provided,however,inmattersinvolvingtheexerciseof
16thepowerofeminentdomain,thevoteshallbeannouncedorbecomepublicimmediately
17followingtheactiononthemotiontoauthorizeinstitutionofsuchalegalaction.Legalwork
18productshallbeconsideredaclosedrecord;
19 (2)Leasing,purchaseorsaleofrealestatebyapublicgovernmentalbodywhere
20publicknowledgeofthetransactionmightadverselyaffectthelegalconsiderationtherefor.
21However,anyminutes,voteorpublicrecordapprovingacontractrelatingtotheleasing,
22purchaseorsaleofrealestatebyapublicgovernmentalbodyshallbemadepublicupon
23executionofthelease,purchaseorsaleoftherealestate;
24 (3)Hiring,firing,discipliningorpromotingofparticularemployeesbyapublic
25governmentalbodywhenpersonalinformationabouttheemployeeisdiscussedorrecorded.
26However,anyvoteonafinaldecision,whentakenbyapublicgovernmentalbody,tohire,
27fire,promoteordisciplineanemployeeofapublicgovernmentalbodyshallbemade
28availablewitharecordofhoweachmembervotedtothepublicwithinseventy-twohoursof
29thecloseofthemeetingwheresuchactionoccurs;provided,however,thatanyemployeeso
30affectedshallbeentitledtopromptnoticeofsuchdecisionduringtheseventy-two-hour
31periodbeforesuchdecisionismadeavailabletothepublic.Asusedinthissubdivision,the
32term"personalinformation"meansinformationrelatingtotheperformanceormeritof
33individualemployees;
34 (4)Thestatemilitiaornationalguardoranypartthereof;
35 (5)Nonjudicialmentalorphysicalhealthproceedingsinvolvingidentifiablepersons,
36includingmedical,psychiatric,psychological,oralcoholismordrugdependencydiagnosisor
37treatment;
38 (6)Scholasticprobation,expulsion,orgraduationofidentifiableindividuals,
39includingrecordsofindividualtestorexaminationscores;however,personallyidentifiable
40studentrecordsmaintainedbypubliceducationalinstitutionsshallbeopenforinspectionby
41theparents,guardianorothercustodianofstudentsundertheageofeighteenyearsandbythe
42parents,guardianorothercustodianandthestudentifthestudentisovertheageofeighteen
43years;
44 (7)Testingandexaminationmaterials,beforethetestorexaminationisgivenor,ifit
45istobegivenagain,beforesogivenagain;
46 (8)Welfarecasesofidentifiableindividuals;
47 (9)Preparation,includinganydiscussionsorworkproduct,onbehalfofapublic
48governmentalbodyoritsrepresentativesfornegotiationswithemployeegroups;
49 (10)Softwarecodesforelectronicdataprocessinganddocumentationthereof;
HB2111 5 50 (11)Specificationsforcompetitivebidding,untileitherthespecificationsare
51officiallyapprovedbythepublicgovernmentalbodyorthespecificationsarepublishedfor
52bid;
53 (12)Sealedbidsandrelateddocuments,untilthebidsareopened;andsealed
54proposalsandrelateddocumentsoranydocumentsrelatedtoanegotiatedcontractuntila
55contractisexecuted,orallproposalsarerejected;
56 (13)Individuallyidentifiablepersonnelrecords,performanceratingsorrecords
57pertainingtoemployeesorapplicantsforemployment,exceptthatthisexemptionshallnot
58applytothenames,positions,salariesandlengthsofserviceofofficersandemployeesof
59publicagenciesoncetheyareemployedassuch,andthenamesofprivatesourcesdonatingor
60contributingmoneytothesalaryofachancellororpresidentatallpubliccollegesand
61universitiesinthestateofMissouriandtheamountofmoneycontributedbythesource;
62 (14)Recordswhichareprotectedfromdisclosurebylaw;
63 (15)Meetingsandpublicrecordsrelatingtoscientificandtechnologicalinnovations
64inwhichtheownerhasaproprietaryinterest;
65 (16)Recordsrelatingtomunicipalhotlinesestablishedforthereportingofabuseand
66wrongdoing;
67 (17)Recordsrelatingtoreportsofallegationsofimpropergovernmental
68activitiesundersection29.221;
69 (18)Confidentialorprivilegedcommunicationsbetweenapublicgovernmentalbody
70anditsauditor,includingallauditorworkproduct;however,allfinalauditreportsissuedby
71theauditoraretobeconsideredopenrecordspursuanttothischapter;
72 [(18)] (19)(a)Securitymeasures,globalpositioningsystem(GPS)data,
73investigativeinformation,orinvestigativeorsurveillancetechniquesofanypublicagency
74responsibleforlawenforcementorpublicsafetythat,ifdisclosed,hasthepotentialto
75endangerthehealthorsafetyofanindividualorthepublic.
76 (b)Anyinformationordataprovidedtoatiplineforthepurposeofsafetyorsecurity
77ataneducationalinstitutionthat,ifdisclosed,hasthepotentialtoendangerthehealthor
78safetyofanindividualorthepublic.
79 (c)Anyinformationcontainedinanysuspiciousactivityreportprovidedtolaw
80enforcementthat,ifdisclosed,hasthepotentialtoendangerthehealthorsafetyofan
81individualorthepublic.
82 (d)Operationalguidelines,policiesandspecificresponseplansdeveloped,adopted,
83ormaintainedbyanypublicagencyresponsibleforlawenforcement,publicsafety,first
84response,orpublichealthforuseinrespondingtoorpreventinganycriticalincidentwhich
85hasthepotentialtoendangerindividualorpublicsafetyorhealth.Financialrecordsrelatedto
86theprocurementoforexpendituresrelatingtooperationalguidelines,policiesorplans
HB2111 6 87purchasedwithpublicfundsshallbeopen.Whenseekingtocloseinformationpursuantto
88thisexception,thepublicgovernmentalbodyshallaffirmativelystateinwritingthat
89disclosurewouldimpairthepublicgovernmentalbody'sabilitytoprotectthesecurityor
90safetyofpersonsorrealproperty,andshallinthesamewritingstatethatthepublicinterestin
91nondisclosureoutweighsthepublicinterestindisclosureoftherecords;
92 [(19)] (20)Existingorproposedsecuritysystemsandstructuralplansofrealproperty
93ownedorleasedbyapublicgovernmentalbody,andinformationthatisvoluntarilysubmitted
94byanonpublicentityowningoroperatinganinfrastructuretoanypublicgovernmentalbody
95forusebythatbodytodeviseplansforprotectionofthatinfrastructure,thepublicdisclosure
96ofwhichwouldthreatenpublicsafety:
97 (a)Recordsrelatedtotheprocurementoforexpendituresrelatingtosecuritysystems
98purchasedwithpublicfundsshallbeopen;
99 (b)Whenseekingtocloseinformationpursuanttothisexception,thepublic
100governmentalbodyshallaffirmativelystateinwritingthatdisclosurewouldimpairthepublic
101governmentalbody'sabilitytoprotectthesecurityorsafetyofpersonsorrealproperty,and
102shallinthesamewritingstatethatthepublicinterestinnondisclosureoutweighsthepublic
103interestindisclosureoftherecords;
104 (c)Recordsthatarevoluntarilysubmittedbyanonpublicentityshallbereviewedby
105thereceivingagencywithinninetydaysofsubmissiontodetermineifretentionofthe
106documentisnecessaryinfurtheranceofastatesecurityinterest.Ifretentionisnotnecessary,
107thedocumentsshallbereturnedtothenonpublicgovernmentalbodyordestroyed;
108 [(20)] (21)Theportionofarecordthatidentifiessecuritysystemsoraccesscodesor
109authorizationcodesforsecuritysystemsofrealproperty;
110 [(21)] (22)Recordsthatidentifytheconfigurationofcomponentsortheoperationof
111acomputer,computersystem,computernetwork,ortelecommunicationsnetwork,andwould
112allowunauthorizedaccesstoorunlawfuldisruptionofacomputer,computersystem,
113computernetwork,ortelecommunicationsnetworkofapublicgovernmentalbody.This
114exceptionshallnotbeusedtolimitordenyaccesstootherwisepublicrecordsinafile,
115document,datafileordatabasecontainingpublicrecords.Recordsrelatedtotheprocurement
116oforexpendituresrelatingtosuchcomputer,computersystem,computernetwork,or
117telecommunicationsnetwork,includingtheamountofmoneyspaidby,oronbehalfof,a
118publicgovernmentalbodyforsuchcomputer,computersystem,computernetwork,or
119telecommunicationsnetworkshallbeopen;
120 [(22)] (23)Creditcardnumbers,personalidentificationnumbers,digitalcertificates,
121physicalandvirtualkeys,accesscodesorauthorizationcodesthatareusedtoprotectthe
122securityofelectronictransactionsbetweenapublicgovernmentalbodyandapersonorentity
123doingbusinesswithapublicgovernmentalbody.Nothinginthissectionshallbedeemedto
HB2111 7 124closetherecordofapersonorentityusingacreditcardheldinthenameofapublic
125governmentalbodyoranyrecordofatransactionmadebyapersonusingacreditcardor
126othermethodofpaymentforwhichreimbursementismadebyapublicgovernmentalbody;
127 [(23)] (24)Recordssubmittedbyanindividual,corporation,orotherbusinessentity
128toapublicinstitutionofhighereducationinconnectionwithaproposaltolicenseintellectual
129propertyorperformsponsoredresearchandwhichcontainssalesprojectionsorother
130businessplaninformationthedisclosureofwhichmayendangerthecompetitivenessofa
131business;
132 [(24)] (25)Recordsrelatingtofosterhomeorkinshipplacementsofchildreninfoster
133careundersection210.498;and
134 [(25)] (26)Individuallyidentifiablecustomerusageandbillingrecordsforcustomers
135ofamunicipallyownedutility,unlesstherecordsarerequestedbythecustomerorauthorized
136forreleasebythecustomer,exceptthatamunicipallyownedutilityshallmakeavailableto
137thepublicthecustomer'sname,billingaddress,locationofservice,anddatesofservice
138providedforanycommercialserviceaccount.
âś”
HB2111 8