AUDITS BASED ON IMPROPER GOVERNMENTAL ACTIVITY (Sections 29.225 and 610.021)

The act allows the State Auditor, or his or her authorized representatives, to audit all or part of any political subdivision or other governmental entity if, after an investigation of the political subdivision or governmental entity, or its officers or employees, the Auditor believes an improper governmental activity has occurred. An audit may also be conducted by the Auditor when requested by a prosecuting attorney, circuit attorney, or law enforcement agency as part of an investigation of an improper governmental activity. Records relating to reports of allegations of improper governmental activities are permitted to be closed under the Sunshine Law.

SUBPOENA POWER (Section 29.235)

Insofar as necessary to conduct an investigation, the act allows the Auditor or the Auditor's authorized representatives to have the power to subpoena witnesses, to take testimony under oath, to cause the deposition of witnesses residing within or without the state to be taken in a manner prescribed by law, and to assemble records and documents, by subpoena or otherwise. The subpoena power shall be exercised in the same manner as permitted in the course of conducting an audit under current law.

RESULTS OF AUDITS OF INSURANCE FUNDS (Section 374.250)

Current law requires the State Auditor to audit, adjust and settle all receipts and disbursements in the Insurance Dedicated Fund and the Insurance Examiners' Fund, and certain taxes certified or collected on foreign and domestic insurance premiums, surplus line premiums, and county taxes on the property owned by insurance companies in the state. This act repeals the requirement with respect to the taxes certified and collected and additionally requires the results with respect to the Insurance Dedicated Fund and the Insurance Examiners' Fund to be reported as part of the annual audit of the state's financial statements.

This act is identical to the truly agreed to and finally passed HB 2111 (2024) and substantially similar to SB 645 (2023) and HB 1175 (2023).

SCOTT SVAGERA