SB-0160,As Passed House,Mar 12, 2003                                        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                           HOUSE SUBSTITUTE FOR                                 

                                                                                

                           SENATE BILL NO. 160                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill 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.                                             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  (1) The auditor general shall conduct audits and                   

                                                                                

2   examinations of all branches, departments, offices, boards,                 

                                                                                

3   commissions, agencies, authorities, and institutions of this                

                                                                                

4   state.                                                                      

                                                                                

5       (2) In connection with the audits and examinations described                

                                                                                


                                                                                

1   in this act, the auditor general may examine, or cause to be                

                                                                                

2   examined, the books, accounts, documents, records, performance              

                                                                                

3   activities, and financial affairs of each branch, department,               

                                                                                

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

                                                                                

5   this state.                                                                 

                                                                                

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

                                                                                

7   general, or any person appointed by the auditor general to make             

                                                                                

8   the audits and examinations provided in this act, the officers              

                                                                                

9   and employees of all branches, departments, offices, boards,                

                                                                                

10  commissions, agencies, authorities, and institutions of this                

                                                                                

11  state shall produce for examination all books, accounts,                    

                                                                                

12  documents, and records of their respective branch, department,              

                                                                                

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

                                                                                

14  truthfully answer all questions relating to their books,                    

                                                                                

15  accounts, documents, and records of their respective activities             

                                                                                

16  and affairs.                                                                

                                                                                

17      (4) In connection with audits and examinations described in                 

                                                                                

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

                                                                                

19  person appointed to make audits and examinations may issue                  

                                                                                

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

                                                                                

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

                                                                                

22  may administer oaths and examine any person as may be necessary;            

                                                                                

23  and may compel the production of books, accounts, papers,                   

                                                                                

24  documents, and records.  The orders and subpoenas issued by the             

                                                                                

25  auditor general, deputy auditor general, or any person appointed            

                                                                                

26  with the duty of making the examinations provided in this                   

                                                                                

27  subsection may be enforced upon application to any circuit court            


                                                                                

1   as provided by law.                                                         

                                                                                

2       (5) The auditor general may employ and compensate auditors,                 

                                                                                

3   examiners, and assistants as he or she considers necessary.  In             

                                                                                

4   addition, the auditors, examiners, and assistants shall be paid             

                                                                                

5   their necessary traveling expenses while engaging in the duties             

                                                                                

6   provided under this act.  Compensation and expenses shall be paid           

                                                                                

7   out of the funds appropriated for that purpose.  The auditor                

                                                                                

8   general and the deputy auditor general shall receive their actual           

                                                                                

9   traveling expenses incurred while engaging in the duties provided           

                                                                                

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

                                                                                

11  for that purpose.                                                           

                                                                                

12      (6) Any person who gives or offers to any examiner,                         

                                                                                

13  accountant, clerk, or other employee of the auditor general, any            

                                                                                

14  money, gift, emolument, or thing of value for the purpose of                

                                                                                

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

                                                                                

16  matter relating to the examination of any public account                    

                                                                                

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

                                                                                

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

                                                                                

19  purpose of influencing the action of the examiner or other                  

                                                                                

20  employee, in framing, changing, withholding, or delaying any                

                                                                                

21  report of any examination of any public account, is guilty of a             

                                                                                

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

                                                                                

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

                                                                                

24  not less than 30 days, or both.                                             

                                                                                

25      (7) Any person appointed by the auditor general to make the                 

                                                                                

26  examinations provided for under this act, or any officer, clerk,            

                                                                                

27  or other employee of the auditor general, who receives or                   


                                                                                

1   solicits any money, gift, emolument, or anything of value for the           

                                                                                

2   purpose of being influenced in the matter of the examination of             

                                                                                

3   any public account authorized by this act, or for the purpose of            

                                                                                

4   being influenced to prevent or delay the examination of any                 

                                                                                

5   public account, is guilty of a misdemeanor, punishable by a fine            

                                                                                

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

                                                                                

7   imprisonment for not more than 6 months and not less than 30                

                                                                                

8   days, or both.                                                              

                                                                                

9       (8) As used in this act:                                                    

                                                                                

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

                                                                                

11  accounts or performance audit as described in section 53 of                 

                                                                                

12  article IV of the state constitution of 1963.                               

                                                                                

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

                                                                                

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

                                                                                

15  of 1963.                                                                    

                                                                                

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

                                                                                

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

                                                                                

18  53 of article IV of the state constitution of 1963.