Bill
Number: H.B. 2780
Fann Floor Amendment
Reference
to: House
engrossed bill
Amendment
drafted by: Mike Hans
FLOOR
AMENDMENT EXPLANATION
1. Requires the Office of
the Auditor General (OAG) to establish an audit team to perform election
integrity process audits of county recorders' offices and county elections
departments.
2. Requires the OAG, each
election cycle, to conduct an election integrity audit on at least one county
the OAG chooses through random selection that examines at least one of the
following:
a) voter registration,
maintenance of voter registration rolls and maintenance of the
Active Early Voting List (AEVL);
b)
early
ballot processing and signature verification processing, including the
separation of early ballots into batches or other groupings, ballot drop box
security and early ballot election processing board;
c)
tabulation
of ballots, including ballot adjudication and duplication, security issues
while tabulating and logic and accuracy testing and administration; or
d)
polling
place administration, voting center administration, central counting center
administration and chain of custody of ballots, equipment and removable storage
devices.
3. Allows the OAG to make
recommendations to counties, the Secretary of State (SOS) and the Legislature
to address findings identified in election integrity audits.
4. Requires a county
subject to an election integrity audit to notify the OAG in writing whether the
county board of supervisors or county recorder agree or disagree with the findings
of an election integrity audit and will implement election integrity audit
recommendations, implement modifications to the recommendations or refuse to
implement the recommendations.
5. Requires a county to
submit written status reports on the implementation of election integrity audit
recommendations at the request of the OAG within the two-year period following
the issuance of the election integrity audit.
6. Requires the OAG to
review a county's progress toward implementing election integrity audit recommendations
for up to two years.
7. Allows the OAG to
review a county's progress towards implementing election integrity audit
recommendations that have not yet been implemented beyond the two-year period.
8. Requires the OAG to
report any election integrity audit findings and recommendations and the status
of a county's progress towards implementation to the President of the Senate,
Speaker of the House of Representatives, JLAC, the Governor, SOS and Attorney
General (AG).
9. Requires a county
subject to an election integrity audit to:
a) post the election
integrity audit report and implementation status report on the county website;
and
b)
participate
in any hearing related to the election integrity audit scheduled by JLAC.
10. Requires the OAG and the OAG's
authorized representatives, for the purpose of election integrity audits, to
have access to:
a) any personnel and data
from a county recorder's office and any county elections department, Arizona
Department of Transportation (ADOT) and the SOS, including access to electronic
data or data and property from a third party that the OAG deems necessary to
perform election integrity audit duties, including voter registration data; and
b)
polling
places, voting centers and central counting centers.
11. Requires data required by the OAG for
election integrity audits to be provided in the manner and format prescribed by
the OAG.
12. Defines election integrity audit.
13. Repeals statutory authorization for
election integrity audits on January 1, 2030.
14. Requires the OAG to conduct annual,
rather than biennial, financial and compliance audits of financial transactions
and accounts kept by state agencies subject to federal single-audit
requirements.
15. Requires school districts to submit a
written status report on the implementation of OAG performance audit
recommendations upon request of the OAG, rather than every six months within
the two-year period following the audit.
16. Requires the recipient of a
transportation excise tax, in addition to the ADOT, to:
a) cooperate with and
provide necessary information to the OAG; and
b)
reimburse
the OAG for the cost of conducting studies or hiring a consultant to conduct
studies relating to county transportation excise tax monies.
17. Grants the OAG, in the performance of
official duties, access to employees of state agencies, boards and commissions
or political subdivisions of the state.
18. Requires the OAG to comply with
statutory requirements relating to criminal history information.
19. Allows the OAG or the OAG's authorized
representative to attend executive sessions, in the performance of any official
duties, rather than only duties relating to special research requests, special
audits, assignments designated by JLAC, performance audits and school district
audits.
20. Allows the OAG, in the performance of
official duties, to attend executive sessions of any entity subject to Arizona
open meeting law, rather than only state agencies and school districts.
21. Requires officers of the state or a
political subdivision to:
a) provide reasonable and
needed facilities for OAG staff; and
b)
make
records available to OAG staff.
22. Requires the AG to supervise the
prosecution of all individuals who violate statutory requirements for OAG
access to executive sessions, records and information.
23. Classifies, as a class 6 felony,
knowingly obstructing or misleading the OAG in the execution of the OAG's
duties.
24. Increases, from a class 2 misdemeanor to
a class 6 felony, the classification for a failure to provide access and
examination to the OAG by a person or officer.
Page 1,
after Line 29, insert:
"Sec. 2. Section 41-1278, Arizona Revised Statutes, is
amended to read:
41-1278. Definitions
In this article, unless the context otherwise requires:
1. "Committee" means the joint legislative audit
committee.
2. "ELECTION INTEGRITY AUDIT"
MEANS AN AUDIT OF LIMITED SCOPE FOR THE PURPOSE OF ENSURING THE ACCURACY AND
RELIABILITY OF SPECIFIC ELECTIONS PROCESSES, INCLUDING REVIEW OF PREELECTION
AND POSTELECTION ACTIVITIES FOR ELECTIONS CONDUCTED
PURSUANT TO TITLE 16 AND EXCLUDING ELECTIONS HELD BY A SPECIAL TAXING
DISTRICT THAT IS ESTABLISHED PURSUANT TO TITLE 48 FOR THE PURPOSE OF PROTECTING
OR PROVIDING SERVICES TO AGRICULTURAL LANDS OR CROPS AND THAT IS AUTHORIZED TO
CONDUCT ELECTIONS PURSUANT TO TITLE 48.
2. 3. "Investigation"
means an inquiry into specified acts or allegations of impropriety, malfeasance
or nonfeasance in the obligation, expenditure, receipt or use of public funds MONIES of this state or into specified financial transactions or
practices which THAT may involve such impropriety, malfeasance or nonfeasance.
3. 4. "Performance
audit" means an audit which THAT determines with regard to the purpose, functions and duties
of the audited agency all of the following:
(a) Whether the audited agency is managing or utilizing USING its resources, including public funds MONIES of this state, personnel, property, equipment and space, in an
economical and efficient manner.
(b) Causes of inefficiencies or uneconomical practices, including
inadequacies in management information systems, internal and administrative
procedures, organizational structure, use of resources, allocation of personnel,
purchasing policies and equipment.
(c) Whether the desired results are being achieved.
(d) Whether objectives established by the legislature or other
authorizing body are being met.
4. 5. "Special
audit" means an audit of limited scope.
5. 6. "Special
research request" means research and analysis of issues or questions that
are designated as a special research request by the committee, but does not
include a performance audit, financial audit, compliance audit, procedural review,
special audit, investigation or evaluation required by law.
6. 7. "State
agency" means all departments, agencies, boards, commissions, institutions
and instrumentalities of this state.
Sec. 3. Repeal
Section 41-1279.03, Arizona
Revised Statutes, as amended by Laws 2021, chapter 405, section 25, is
repealed.
Sec. 4. Section 41-1279.03, Arizona Revised Statutes, as
amended by Laws 2019, chapter 3, section 11, is amended to read:
41-1279.03. Powers and duties
A. The auditor general shall:
1. Prepare an audit plan for approval by the committee and report
to the committee the results of each audit and investigation and other reviews
conducted by the auditor general.
2. Conduct or cause to be conducted at least biennial ANNUAL financial and compliance audits of financial transactions and
accounts kept by or for all state agencies subject to the FEDERAL single audit act of 1984 (P.L. 98-502) REQUIREMENTS. The audits shall be conducted in accordance with generally
accepted governmental auditing standards and accordingly shall include tests of
the accounting records and other auditing procedures as may be considered
necessary in the circumstances. The audits shall include the issuance of
suitable reports as required by the FEDERAL single audit act of 1984 (P.L. 98-502) REQUIREMENTS so that the
legislature, the federal government and others will be informed as to the
adequacy of financial statements of the THIS state in compliance with generally accepted governmental accounting
principles and to determine whether this state has complied with laws and
regulations that may have a material effect on the financial statements and on
major federal assistance programs.
3. Perform procedural reviews for all state agencies at times
determined by the auditor general. These reviews may include evaluation of
administrative and accounting internal controls and reports on these reviews.
4. Perform special research requests, special audits and related
assignments as designated by the committee and conduct performance audits,
special audits, special research requests and investigations of any state
agency, whether created by the constitution or otherwise, as may be requested
by the committee.
5. Annually on or before the fourth Monday of December, prepare a
written report to the governor and to the committee that contains a summary of
activities for the previous fiscal year.
6. In the tenth year and in each fifth year thereafter in which a
transportation excise tax is in effect in a county as provided in section
42-6106 or 42-6107, conduct a performance audit that:
(a) Reviews past expenditures and future planned expenditures of
the transportation excise revenues and determines the impact of the
expenditures in solving transportation problems within the county and, for a
transportation excise tax in effect in a county as provided in section 42-6107,
determines whether the expenditures of the transportation excise revenues
comply with section 28-6392, subsection B.
(b) Reviews projects completed to date and projects to be
completed during the remaining years in which a transportation excise tax is in
effect. Within six months after each review period, the auditor general
shall present a report to the speaker of the house of representatives and the
president of the senate detailing findings and making recommendations.
(c) Reviews, determines, reports and makes recommendations to the
speaker of the house of representatives and the president of the senate whether
the distribution of ARIZONA highway user revenues complies with title 28, chapter 18, article
2.
7. If requested by the committee, conduct performance audits of
counties and incorporated cities and towns receiving ARIZONA highway user revenue fund monies pursuant to title 28,
chapter 18, article 2 to determine whether the monies are being spent as
provided in section 28-6533, subsection B.
8. Perform special audits designated pursuant to law if the
auditor general determines that there are adequate monies appropriated for the
auditor general to complete the audit. If the auditor general determines the
appropriated monies are inadequate, the auditor general shall notify the
committee.
9. Establish a schoolwide audit team in the office of the auditor
general to conduct performance audits and monitor school districts to determine
the percentage of every dollar spent in the classroom by the school district.
Each school district shall prominently post on its website home page a copy of
its profile pages that displays the percentage of every dollar spent in the
classroom by that school district from the most recent status report issued by
the auditor general pursuant to this paragraph. The performance audits shall
determine whether school districts that receive monies from the Arizona English
language learner fund established by section 15-756.04 and the statewide
compensatory instruction fund established by section 15-756.11 comply with
title 15, chapter 7, article 3.1. The auditor general shall determine, through
random selection, the school districts to be audited each year, subject to
review by the joint legislative audit committee. A school district that is
subject to an audit pursuant to this paragraph shall notify the auditor general
in writing whether the school district agrees or disagrees with the
findings and
recommendations of the
audit and whether the school district will implement the findings and recommendations,
implement modifications to the findings and recommendations
or refuse to implement the findings and recommendations.
The school district shall submit to the auditor general a written status report
on the implementation of the audit findings and recommendations every six months for two years after AT THE REQUEST OF THE AUDITOR GENERAL WITHIN THE TWO-YEAR PERIOD
FOLLOWING THE ISSUANCE OF an
audit conducted pursuant to this paragraph. The auditor general shall review
the school district's progress toward implementing the findings and recommendations
of the audit every six
months after receipt of the district's status report for two years AND PROVIDE STATUS REPORTS OF THESE
REVIEWS TO THE JOINT LEGISLATIVE AUDIT COMMITTEE DURING THIS TWO-YEAR PERIOD. The auditor general may review a school district's
progress beyond this two-year period for recommendations that have not yet been
implemented by the school district. The auditor general shall provide a status report of these reviews
to the joint legislative audit committee. The school district shall participate in any hearing
scheduled during this review period by the joint legislative audit committee or
by any other legislative committee designated by the joint legislative audit
committee.
10. Annually review per diem compensation and reimbursement of
expenses for employees of this state and members of a state board, commission,
council or advisory committee by judgmentally selecting samples and evaluating
the propriety of per diem compensation and expense reimbursements.
11. PERFORM ELECTION INTEGRITY AUDITS AS
PRESCRIBED IN SECTION 41-1279.08.
B. The auditor general may:
1. Subject to approval by the committee, adopt rules necessary to
administer the duties of the office.
2. Hire consultants to conduct the studies required by subsection
A, paragraphs 6 and 7 of this section.
C. If approved by the committee, the auditor general may charge a
reasonable fee for the cost of performing audits or providing accounting
services for auditing federal funds, special audits or special services
requested by political subdivisions of this state. Monies collected pursuant to
this subsection shall be deposited in the audit services revolving fund.
D. The department of transportation, THE TRANSPORTATION EXCISE TAX RECIPIENT
AND the board of supervisors of a
county that has approved a county transportation excise tax as provided in
section 42-6106 or 42-6107 and the governing bodies of counties, cities and
towns receiving ARIZONA highway
user revenue fund monies shall cooperate with and provide necessary information
to the auditor general or the auditor general's consultant.
E. The department of transportation OR THE TRANSPORTATION EXCISE TAX RECIPIENT shall reimburse the auditor general as follows, and the auditor
general shall deposit the reimbursed monies in the audit services revolving
fund:
1. For the cost of conducting the studies or hiring a consultant
to conduct the studies required by subsection A, paragraph 6, subdivisions (a)
and (b) of this section, from monies collected pursuant to a county
transportation excise tax levied pursuant to section 42-6106 or 42-6107.
2. For the cost of conducting the studies or hiring a consultant
pursuant to subsection A, paragraph 6, subdivision (c) and paragraph 7 of this
section, from the Arizona highway user revenue fund.
Sec. 5. Section 41-1279.04, Arizona Revised Statutes, is
amended to read:
41-1279.04. Authority to examine records; violation;
classification
A. The auditor general or the auditor general's authorized
representatives, in the
performance of PERFORMING official duties, shall have access to, EMPLOYEES and authority to examine, any and all books, accounts, reports, vouchers, correspondence
files and other records, bank accounts, criminal history record information as
defined in section 41-1701 AND IN ACCORDANCE WITH SECTION 41-1750, money MONIES and other
property of any state agency, board, commission, department, institution,
program, advisory council or committee or political subdivision of this state,
whether created by the constitution or otherwise, or such documents and
property of a contractor relating to a contract with this state pursuant to the
provisions of section 35-214. It is the duty of Any
officer or employee of any such agency or political subdivision, having such
records under the officer's or employee's control, to permit SHALL ALLOW access to and examination of the records on the request of
the auditor general or the auditor general's authorized representative.
B. For the
purpose of complying with section 41-1279.03, subsection A, paragraphs 4 and 9, The auditor general or the auditor general's authorized
representative, in the
performance of PERFORMING official duties, may attend executive sessions of the
governing body of any state agency or school district ENTITY in this state THAT IS SUBJECT TO TITLE 38, CHAPTER 3,
ARTICLE 3.1.
C. For the purpose of auditing the department of revenue, the
auditor general and the auditor general's authorized representatives have
access to state tax returns, except that a report of the auditor general shall
not violate the confidentiality of state tax laws.
D. FOR THE PURPOSE OF ELECTION INTEGRITY
AUDITS, THE AUDITOR GENERAL AND THE AUDITOR GENERAL'S AUTHORIZED
REPRESENTATIVES SHALL HAVE ACCESS TO BOTH OF THE FOLLOWING:
1. ANY PERSONNEL AND DATA FROM THE COUNTY
RECORDER'S OFFICE AND ANY COUNTY ELECTIONS DEPARTMENT, THE DEPARTMENT OF
TRANSPORTATION AND THE SECRETARY OF STATE, WHICH SHALL INCLUDE ACCESS TO
ELECTRONIC DATA OR ANY SUCH DATA AND PROPERTY FROM A THIRD PARTY, THAT THE
AUDITOR GENERAL DEEMS NECESSARY TO PERFORM THE DUTIES PRESCRIBED IN SECTION
41-1279.08, INCLUDING VOTER REGISTRATION DATA. THIS DATA SHALL BE PROVIDED IN
THE MANNER AND FORMAT PRESCRIBED BY THE AUDITOR GENERAL.
2. POLLING PLACES, VOTING CENTERS AND
CENTRAL COUNTING CENTERS.
E. ALL OFFICERS OF ANY STATE AGENCY,
BOARD, COMMISSION, DEPARTMENT, INSTITUTION, PROGRAM, ADVISORY COUNCIL OR
COMMITTEE OR POLITICAL SUBDIVISION OF THIS STATE SHALL PROVIDE REASONABLE AND
NEEDED FACILITIES FOR AUDITOR GENERAL STAFF AND SHALL MAKE RECORDS AVAILABLE IN
THE FORM AND AT THE TIME PRESCRIBED.
D. F. Any
officer or person who knowingly fails or refuses to permit such ALLOW access and examination PURSUANT TO THIS SECTION OR WHO OTHERWISE
KNOWINGLY OBSTRUCTS OR MISLEADS THE AUDITOR GENERAL IN THE EXECUTION OF THE
AUDITOR GENERAL'S DUTIES is guilty of
a class 2 misdemeanor 6 FELONY.
G. THE ATTORNEY GENERAL SHALL SUPERVISE
THE PROSECUTION OF ALL OFFENDERS UNDER THIS SECTION.
Sec. 6. Title 41, chapter 7, article 10.1, Arizona Revised
Statutes, is amended by adding section 41-1279.08, to read:
41-1279.08. Auditor general; election integrity
audits; duties
A. THE AUDITOR GENERAL SHALL ESTABLISH AN
AUDIT TEAM TO PERFORM ELECTION INTEGRITY PROCESS AUDITS
OF COUNTY RECORDERS' OFFICES AND COUNTY ELECTIONS DEPARTMENTS.
B. Each election cycle, the auditor general
shall conduct an election integrity audit of at least one Arizona county the
auditor general chooses through random selection that examines at least one
area within the following topics:
1. Voter registration, maintenance of
voter registration rolls and maintenance of the active early voting list.
2. Early ballot processing and signature
verification processing, including the separation of early ballots into batches
or other groupings, ballot drop box security and early ballot election
processing boards.
3. Tabulation of ballots, including ballot
adjudication and duplication, security issues while tabulating and logic and
accuracy testing and administration.
4. Polling place administration, voting
center administration, central counting center administration and chain of
custody of ballots, equipment and removable storage devices.
C. THE AUDITOR GENERAL MAY MAKE
RECOMMENDATIONS TO THE COUNTIES, THE SECRETARY OF STATE AND THE LEGISLATURE TO
ADDRESS FINDINGS IDENTIFIED IN THE ELECTION INTEGRITY AUDITS.
D. A COUNTY SUBJECT TO AN ELECTION
INTEGRITY AUDIT PURSUANT TO THIS SECTION SHALL NOTIFY THE AUDITOR GENERAL IN
WRITING WHETHER THE COUNTY BOARD OF SUPERVISORS OR COUNTY RECORDER, OR BOTH,
AGREE OR DISAGREE WITH THE FINDINGS OF THE ELECTION INTEGRITY AUDIT AND WHETHER
THE COUNTY BOARD OF SUPERVISORS OR COUNTY RECORDER, OR BOTH, WILL IMPLEMENT THE
RECOMMENDATIONS, IMPLEMENT MODIFICATIONS TO THE RECOMMENDATIONS OR REFUSE TO
IMPLEMENT THE RECOMMENDATIONS. THE COUNTY SHALL SUBMIT TO THE AUDITOR GENERAL
WRITTEN STATUS REPORTS ON THE IMPLEMENTATION OF THE ELECTION INTEGRITY AUDIT
RECOMMENDATIONS AT THE REQUEST OF THE AUDITOR GENERAL WITHIN THE TWO-YEAR
PERIOD FOLLOWING THE ISSUANCE OF THE ELECTION INTEGRITY AUDIT PURSUANT TO THIS
SECTION. THE AUDITOR GENERAL SHALL REVIEW THE COUNTY'S PROGRESS TOWARD
IMPLEMENTING THE RECOMMENDATIONS OF THE ELECTION INTEGRITY AUDIT FOR UP TO TWO
YEARS. THE AUDITOR GENERAL MAY REVIEW THE COUNTY'S PROGRESS BEYOND THIS
TWO-YEAR PERIOD FOR RECOMMENDATIONS THAT HAVE NOT YET BEEN IMPLEMENTED.
E. THE AUDITOR GENERAL SHALL REPORT ANY
ELECTION INTEGRITY AUDIT FINDINGS AND RECOMMENDATIONS AND THE STATUS OF A
COUNTY'S PROGRESS TOWARDS IMPLEMENTING RECOMMENDATIONS TO THE PRESIDENT OF THE
SENATE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE JOINT LEGISLATIVE
AUDIT COMMITTEE, THE GOVERNOR, THE SECRETARY OF STATE AND THE ATTORNEY GENERAL.
F. A COUNTY SUBJECT TO AN ELECTION
INTEGRITY AUDIT SHALL POST THE AUDIT REPORT AND STATUS REPORT OF PROGRESS
TOWARD IMPLEMENTING RECOMMENDATIONS ON ITS WEBSITE FOR TWENTY-FOUR MONTHS AND
SHALL PARTICIPATE IN ANY HEARING RELATED TO THE ELECTION INTEGRITY AUDIT
SCHEDULED BY THE JOINT LEGISLATIVE AUDIT COMMITTEE.
Sec. 7. Delayed repeal
Section 41-1279.08, Arizona Revised
Statutes, as added by this act, is repealed from and after December 31,
2029."
Amend title to conform