BillCam

HB-4259, As Passed Senate, December 5, 2018

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4259

A bill to amend 2003 PA 1, entitled

"An act to provide for the audit and examination of this state and

state funds; to provide for the audit and examination of the books

and accounts of all branches, departments, offices, boards,

commissions, agencies, authorities, and institutions of this state;

to prescribe powers and duties of certain state officers and

employees; to provide for access to certain records; to provide for

the subpoena of witnesses and production of documents and records;

to prescribe penalties; and to provide for the administration of

this act,"

by amending section 1 (MCL 13.101).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. (1) The As provided for in section 53 of article IV of

the state constitution of 1963, the auditor general shall conduct

audits and examinations of all branches, departments, offices,

boards, commissions, agencies, authorities, and institutions of

this state.

(2) In Notwithstanding any other provision of law to the

contrary except as provided in subsection (10) or where the auditor

general's access is expressly limited by law, in connection with

the audits and examinations described in this act, the auditor

general may access and examine, or cause to be accessed and

examined, the books, accounts, documents, records, electronically

stored information, performance activities, and financial affairs,

including, but not limited to, confidential information, of each

branch, department, office, board, commission, agency, authority,

and institution of this state. All of the following apply to

confidential information obtained under this subsection:

(a) The auditor general is subject to the same duty of

confidentiality imposed by law on the entity providing the

confidential information.

(b) The auditor general is subject to any civil or criminal

penalties imposed by law for willfully and intentionally disclosing

that confidential information.

contrary, state officers and employees of all branches,

departments, offices, boards, commissions, agencies, authorities,

and institutions of this state are not subject to civil or criminal

penalties imposed by state law for providing information requested

by the auditor general.

(3) Upon demand of the auditor general, deputy auditor

general, or any person individual appointed by the auditor general

to make the audits and examinations provided in this act, the

officers and employees of all branches, departments, offices,

boards, commissions, agencies, authorities, and institutions of

this state shall produce or provide for unrestricted access and

examination all books, accounts, documents, and records, and

electronically stored information, including, but not limited to,

confidential information, of their respective branch, department,

office, board, commission, agency, authority, and institution and

truthfully answer all questions relating to their books, accounts,

documents, and records, and electronically stored information,

including, but not limited to, confidential information, of their

respective activities and affairs.

(4) The entity providing the information to the auditor

general under this act is responsible for paying all costs to

produce the information.

(5) State officers and employees shall not restrict the

auditor general's access to information requested regardless of

whether the information is sought for the purpose of performing an

audit of another state program or agency.

(6) (4) In connection with audits and examinations described

in this act, the auditor general, deputy auditor general, or any

person individual appointed to make audits and examinations may

issue subpoenas, direct the service of the subpoena by any police

officer, and compel the attendance and testimony of witnesses; may

administer oaths and examine any person individual as may be

necessary; and may compel the production of books, accounts,

papers, documents, and records, and electronically stored

information, including, but not limited to, confidential

information. The orders and subpoenas issued by the auditor

general, deputy auditor general, or any person individual appointed

with the duty of making the examinations provided in this

subsection may be enforced upon application to any circuit court as

provided by law.

(7) (5) The auditor general may employ and compensate

auditors, examiners, and assistants as he or she considers

necessary. In addition, the auditors, examiners, and assistants

shall be paid their necessary traveling expenses while engaging in

the duties provided under this act. Compensation and expenses shall

be paid out of the funds appropriated for that purpose. The auditor

general and the deputy auditor general shall receive their actual

traveling expenses incurred while engaging in the duties provided

under this act, which shall be paid out of the funds appropriated

for that purpose.

(8) (6) Any person individual who gives or offers to any

examiner, accountant, clerk, or other employee of the auditor

general, any money, gift, emolument, or thing of value for the

purpose of influencing the action of the examiner or other

employee, in any matter relating to the examination of any public

account authorized by this act, or for the purpose of preventing or

delaying the examination of any public account, or for the purpose

of influencing the action of the examiner or other employee, in

framing, changing, withholding, or delaying any report of any

examination of any public account, is guilty of a misdemeanor,

punishable by imprisonment for not less than 30 days or more than 6

months, or a fine of not less than $200.00 or more than $1,000.00,

nor less than $200.00, or imprisonment for not more than 6 months

and not less than 30 days, or both.

(9) (7) Any person individual appointed by the auditor general

to make the examinations provided for under this act, or any

officer, clerk, or other employee of the auditor general, who

receives or solicits any money, gift, emolument, or anything of

value for the purpose of being influenced in the matter of the

examination of any public account authorized by this act, or for

the purpose of being influenced to prevent or delay the examination

of any public account, is guilty of a misdemeanor, punishable by

imprisonment for not less than 30 days or more than 6 months, or a

fine of not less than $200.00 or more than $1,000.00, and not less

than $200.00, or imprisonment for not more than 6 months and not

less than 30 days, or both.

(10) This act does not authorize the auditor general to access

or examine records or information subject to the attorney-client

privilege.

(11) All working papers and memorandums of the auditor general

are exempt from public disclosure under the freedom of information

act, 1976 PA 442, MCL 15.231 to 15.246.

(12) (8) As used in this act:

(a) "Audit" means a post audit of financial transactions and

accounts or performance audit as described in section 53 of article

IV of the state constitution of 1963.

(b) "Auditor general" means the individual appointed auditor

general under section 53 of article IV of the state constitution of

1963.

subject to a legal duty to not disclose its contents.

(d) (c) "Examination" means an inquiry, compilation, or review

within the scope of the auditor general's authority under section

53 of article IV of the state constitution of 1963.