Senate AET panel advances bill expanding auditor audits and requiring notice for large consent decrees

The Senate Accountability, Efficiency, Transparency Committee moved Senate Bill 2847 forward after senators adopted several amendments clarifying and expanding the state auditor's oversight and adding a notice requirement for certain consent decrees.

Sponsor (Senator, sponsor) told the committee the bill “increases the number of required audits by the state auditor and clears up ambiguity in the statute” and that the measure "does not decrease audits or investigations." The sponsor said the bill grew from concerns first noted September 12 and from consultations with the secretary of state and the attorney general.

The bill, as amended in committee, requires a pre-audit and post-audit when a for-profit or nonprofit receives $10,000,000 or more in public funds and directs that, when the auditor relies on outside accounting firms, a financial statement audit be conducted and working papers be available to the auditor. The sponsor said the changes are aimed at giving the state auditor more “comprehensive audit documentation” to analyze findings.

Section 1 creates a notification requirement: certain consent decrees or judgments that would require an expenditure exceeding a specified amount or would “impact the administration of any election” must trigger written notification to the governor and specified legislative leaders. Colby, a staff member from the Secretary of State’s office, told the committee the provision is intended to notify the legislature when a consent agreement could prevent an election official from performing statutory duties; he said the change is limited to notification and does not require legislative approval.

Committee members pressed for clarifications and edits. Senator Blunt moved and the committee adopted an amendment striking language that would have broadly exempted records from the Public Records Act when transmitted under the new notice requirement; the committee also accepted an amendment raising the notification dollar threshold from $1,000,000 to $5,000,000 for the Secretary of State-related provision and inserted explicit post‑audit language for profit entities.

The bill also removes a unique phrase in current law that created ambiguity about who should institute suit on unpaid demands; committee members said the change clarifies that the attorney general will prosecute such cases in coordination with the auditor. The sponsor told senators the attorney general’s office affirmed willingness to assume that role.

After amendments, the committee adopted a motion that the title is sufficient and that the bill do pass as amended; the motion carried by voice vote and the bill was reported from committee.

The committee discussion contained questions about scope — particularly what constitutes something that would “impact the administration of any election” — and the sponsor and Secretary of State staff said they expect further drafting in later stages if needed. The sponsor said he withheld legislative action on social media and wanted the measure vetted in committee.

Action: Title sufficient, do pass as amended; bill reported from committee.

Votes at a glance: voice votes were taken at multiple points; committee recorded the motions as adopted and the bill as reported.