House Introduced Bill 5665

HOUSE BILL No. 5665


     February 14, 2002, Introduced by Rep. Kuipers and referred to the Committee on House Oversight and Operations.


        A bill to amend 1919 PA 71, entitled

   "An act to provide for the formulation and establishment of a
   uniform system of accounting and reporting in the several depart-
   ments, offices, and institutions of the state government, and in
   all county offices; to provide for the examination of the books
   and accounts of each state department, office, and institution,
   and of each county office; to provide for financial reports from
   all such departments, institutions, and offices, and for the tab-
   ulation and publication of comparative financial statistics
   relating thereto; to provide for the administration of this act;
   to provide for the powers and duties of the department of trea-
   sury, the auditor general, the library of Michigan and depository
   libraries, and other officers and entities; to provide penalties;
   and to provide for meeting the expense authorized by this act,"

   by amending the title and sections 1, 2, 5, 6, 7, 8, 9, 10, 11,

   and 12 (MCL 21.41, 21.42, 21.45, 21.46, 21.47, 21.48, 21.49,

   21.50, 21.51, and 21.52), the title as amended by 1996 PA 426,

   section 5 as amended by 1993 PA 196, and sections 11 and 12 as

   amended by 1985 PA 48; and to repeal acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:




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                                      TITLE

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             An act to provide for the formulation and establishment of a

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        uniform system of accounting and reporting in the several depart-

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        ments, offices, and institutions of the state government, and in

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        all county offices; to provide for the examination of the books

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        and accounts of each state department, office, and institution,

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        and of each county office; to provide for financial reports from

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        all  such  THOSE departments, institutions, and offices, and for

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        the tabulation and publication of comparative financial statis-

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        tics relating  thereto  TO THE DEPARTMENTS, INSTITUTIONS, AND

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        OFFICES; to provide for the administration of this act; to pro-

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        vide for the powers and duties of the department of treasury, the

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         auditor general  STATE TREASURER, the library of Michigan and

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        depository libraries, and other officers and entities; to provide

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        penalties; and to provide for meeting the expense authorized by

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        this act.

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             Sec. 1.   It shall be the duty of the auditor general to

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        THE STATE TREASURER SHALL formulate, prescribe, and install a

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        system of accounting and reporting in conformity with the provi-

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        sions of this act that shall be uniform for every state depart-

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        ment, office, and institution, and for every county office and

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        public account of the same class.   The auditor general is hereby

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        required and directed to proceed to carry out the requirements of

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        this section immediately following the date this act takes

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        effect.

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             Sec. 2.   Said  THE ACCOUNTING system shall embrace accounts

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        showing all sources of income, the amounts due, collected and



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        received from each source, including all fees collected by county

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        officers whether turned into the county treasury or not, the

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        amount expended for each purpose, bills, and accounts payable;

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        the receipt, use, and disposition of other public property and

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        the income, if any, derived  therefrom  FROM THEM.   Said  THE

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        ACCOUNTING system shall also  embrace  INCLUDE accounts  which

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        shall  THAT show for each industry conducted by any institution

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        or department of the state government the unit cost of operation

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        and shall be in  such  THE form as shall exhibit actual detailed

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        financial results of each industrial activity.   Said  THE

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        ACCOUNTING system shall  embrace such  INCLUDE other forms of

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        accounts as the  auditor general  STATE TREASURER may  deem

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        CONSIDER wise and essential to efficient financial administration

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        of public affairs pertaining to the state and county

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        governments.

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             Sec. 5.  The  auditor general shall hereafter be  STATE

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        TREASURER IS the supervisor of the accounts of all state depart-

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        ments, institutions and offices, and of all county offices.  The

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         auditor general  STATE TREASURER may examine, or cause to be

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        examined, the books, accounts and financial affairs of each

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        department, institution, and office of the state government, and

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        of each county office.   Such  THE examination shall be made at

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        least once in each year, or as often as  in the judgment of the

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        auditor general it shall  THE STATE TREASURER CONSIDERS IT TO be

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        for the public good.  The  auditor general  STATE TREASURER may

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        employ  such  auditors, examiners, and assistants as he or she

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        considers necessary, the number and compensation of whom shall be



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        subject to the approval of the state administrative board and

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        shall be within the limits of the amount of money appropriated

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        for  such  THAT purpose.  In addition to  such  THEIR compensa-

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        tion, they shall be paid their necessary traveling expenses,

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        which compensation and expenses, when audited and approved by the

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         auditor general  STATE TREASURER, shall be paid by the state

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        treasurer out of the fund appropriated for that purpose, upon

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        warrant of the proper officer.  The  auditor general and the

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        deputy auditor general  STATE TREASURER shall receive  their  HIS

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        OR HER actual traveling expenses incurred while engaged in admin-

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        istering the provisions of this act, which shall be paid by the

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        state treasurer out of the funds appropriated for that purpose.

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         , upon warrant of the auditor general.

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             Sec. 6.  Upon demand of the  auditor general, deputy auditor

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        general  STATE TREASURER, or any person duly appointed by the

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         auditor general  STATE TREASURER, to make the examinations

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         herein  provided IN THIS ACT,  it shall be the duty of  any and

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        all officers of the state and county governments  to  SHALL

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        produce, for examination, the books of account and papers of

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        their respective departments, institutions, and offices, and  to

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        SHALL truthfully answer all questions relating  thereto  TO THAT

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        EXAMINATION.  In connection with  such  THE examinations, the

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         auditor general, deputy auditor general  STATE TREASURER, or any

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        person designated to make  such  THE examinations, may issue sub-

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        poenas, direct the service  thereof  OF THOSE SUBPOENAS by any

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        police officer, and compel the attendance and testimony of

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        witnesses, may administer oaths and examine  such  THOSE persons



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        as may be necessary, and may compel the production of books and

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        papers.  The orders and subpoenas issued by the  auditor general,

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        deputy auditor general  STATE TREASURER, or by any person charged

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        with the duty of making the examinations  herein  AS provided IN

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        THIS SECTION, in pursuance of the authority in them vested by

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        provisions of this section, may be enforced upon their applica-

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        tion to any circuit court by proceedings in contempt,  therein,

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        as provided by law.

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             Sec. 7.  A report shall be made, in duplicate, of each exam-

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        ination made in accordance with the provisions of this act.

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         Said  THE duplicate report shall be signed and verified by the

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        officer making the examination, 1 copy of which shall be filed

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         in the office of the auditor general  WITH THE STATE TREASURER

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        and 1 copy with the executive officer of the department,

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        institution, or office examined.  If any  such  examination dis-

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        closes malfeasance, misfeasance, nonfeasance, or gross neglect of

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        duty on the part of any officer or  employe  EMPLOYEE of any

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        department, institution, or office of the state government, or on

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        the part of any officer or employe of any county office, for

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        which a criminal penalty is provided by law, an additional copy

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        of  such  THE report shall be made and filed with the attorney

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        general,  whose duty it shall be  AND THE ATTORNEY GENERAL,

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        within 60 days after receipt of  such  THAT report,  to  SHALL

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        institute criminal proceedings against  such  THE officer or

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         employe  EMPLOYEE, or direct that  such  criminal proceedings be

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        instituted by the prosecuting attorney of the county in which the

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        offense was committed.   It shall also be the duty of the  THE



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        attorney general, or the prosecuting attorney, as the case may

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        be,  to  ALSO SHALL institute civil action in any court of compe-

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        tent jurisdiction for the recovery of any public  moneys  MONEY,

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        disclosed by any  such  examinations to have been illegally

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        expended, or collected and not accounted for  ; also  AND for the

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        recovery of any public property disclosed to have been converted

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        and misappropriated.  Refusal or neglect to comply with the

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        requirements of this section on the part of the attorney general,

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        or on the part of the prosecuting attorney of any county in the

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        state,  shall be  IS sufficient cause for his OR HER removal from

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        office by the governor.

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             Sec. 8.   It is hereby made the duty of the  THE executive

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        officers of each state department, institution and office, and

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        the executive officer of each county office,  to  SHALL adopt and

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        use the books, forms, records and systems of accounting and

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        reporting  ,  prescribed by the  auditor general  STATE TREASURER

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        and  to  SHALL promptly purchase  such  THE books, forms, and

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        records as may be necessary  thereto  TO IMPLEMENT THEIR USE, in

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        the manner now provided by law for the purchase of  such  THOSE

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        articles.  Refusal or neglect on the part of any officer of any

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        branch of the state government, or any county officer, to provide

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         such  THE books, forms, or records, or to use them, or to make

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        the reports required by this act, or keep the accounts of his OR

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        HER office as directed by the  auditor general  STATE TREASURER,

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         shall be  IS sufficient cause for his OR HER removal from office

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        by the governor.  :  Provided, That  IF, after the uniform

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        accounting system has been installed in any county,  should it



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        become  IT BECOMES necessary for an examiner employed under this

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        act to perform any service, which a county officer has neglected

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        or refused to do, in order to properly continue  such  THE

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        system, then the per diem and expense incurred  shall be  IS a

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        proper charge against the county  wherein such  WHERE THE service

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        was performed.  A statement covering  such  THAT per diem and

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        expense may be forwarded by the  auditor general  STATE TREASURER

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        to the county clerk who shall  forthwith  IMMEDIATELY issue his

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        OR HER warrant upon the county treasurer who shall pay it from

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        the general fund of the county.  Money so received by the state

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        shall be paid into the state treasury to the credit of the gen-

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        eral fund.

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             Sec. 9.  The governor  shall have the power  MAY, and he  is

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        hereby directed  OR SHE SHALL upon a finding of guilt,  to

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        remove from office the officer of any branch of the state govern-

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        ment  ,  or county government, who refuses or wilfully neglects

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        to keep the accounts of his OR HER office in the manner and form

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        prescribed by the  auditor general  STATE TREASURER, or to make

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        the reports  herein  provided IN THIS ACT, or who refuses or

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        neglects to comply with any other requirements of this act.   It

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        shall be the duty of the auditor general to  THE STATE TREASURER

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        SHALL promptly report to the governor  ,  each  such  refusal or

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        neglect and  thereupon  the governor, before taking final action

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         thereon  ON THAT REPORT, shall summons the officer complained

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        against to make answer why he OR SHE should not be removed from

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        office.





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             Sec. 10.  The  auditor general's  department OF TREASURY

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        shall be audited by the  state board of auditors who shall have

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        like powers and authority for that purpose as hereby conferred

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        upon the auditor general for the examination of other boards and

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        institutions  AUDITOR GENERAL AS PROVIDED BY LAW.

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             Sec. 11.  Any person who  shall give or offer  GIVES OR

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        OFFERS to any examiner, accountant, clerk, or other employee of

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        the  auditor general  DEPARTMENT OF TREASURY, any money, gift,

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        emolument, or thing of value for the purpose of influencing the

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        action of  such  THE examiner or other employee, in any matter

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        relating to the examination of any public account authorized by

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        this act, or for the purpose of preventing or delaying the exami-

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        nation of any  such  public account, or for the purpose of influ-

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        encing the action of the examiner or other employee, in framing,

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        changing, withholding, or delaying any report of any examination

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        of any  such  public account  shall be deemed  IS guilty of a

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        misdemeanor, punishable by a fine of not more than $1,000.00 nor

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

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        not less than 30 days, or both.

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             Sec. 12.  Any person appointed by the  auditor general

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        STATE TREASURER to make the examinations provided for under this

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        act, or any officer, clerk, or other employee of the  auditor

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        general  STATE TREASURER, who  shall receive, or solicit

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        RECEIVES OR SOLICITS any money, gift, emolument, or anything of

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

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

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        the purpose of being influenced to prevent or delay the



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        examination of any  such  public account,  shall be deemed  IS

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        guilty of a misdemeanor, punishable by a fine of not more than

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        $1,000.00 and not less than $200.00, or imprisonment for not more

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        than 6 months and not less than 30 days, or both.

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             Enacting section 1.  Section 13 of 1919 PA 71, MCL 21.53, is

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        repealed.












































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