HOUSE BILL No. 4336

 

 

March 12, 2019, Introduced by Reps. Steven Johnson and LaFave and referred to the Committee on Oversight.

 

     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 the title and section 1 (MCL 13.101).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     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.

 

     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 and specifically 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.

 

     (c) Notwithstanding any other provision of law to the

 

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 must be paid their necessary traveling expenses while

 

engaging in the duties provided under this act. Compensation and

 

expenses shall must be paid out of the funds appropriated for that

 

purpose. The auditor general and the deputy auditor general shall

 

must receive their actual traveling expenses incurred while

 

engaging in the duties provided under this act, which shall must 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 records of the auditor general in

 

connection with audits and examinations 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.

 

     (c) "Confidential information" means information that is

 

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.