74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1680
 
                         House Bill 2001
 
Sponsored by Representatives D EDWARDS, CLEM; Representatives
  BARNHART, C EDWARDS, GALIZIO, HUNT, KOMP, KOTEK, NATHANSON,
  RILEY, ROBLAN
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Directs Secretary of State to conduct performance and program
audits on tax expenditures. Requires Secretary of State to adopt
rules establishing criteria for audits of tax expenditures.
 
                        A BILL FOR AN ACT
Relating to auditing of tax expenditures; amending ORS 297.070.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 297.070 is amended to read:
  297.070. (1) Performance and program audits of all state
departments, boards, commissions, institutions { + , + }
 { - and - }  state-aided institutions and agencies  { + and tax
expenditures + } shall be conducted on the basis of risk
assessment and on standards established by national recognized
entities including, but not limited to, the United States
 { - General Accounting Office - }   { + Government
Accountability Office + } and the National Association of State
Auditors. The Secretary of State shall adopt and the Joint
Legislative Audit Committee shall approve rules specifying all
criteria to be considered for conducting a performance or program
audit under this section.  { + Rules specifying criteria to be
considered for conducting a performance or program audit of a tax
expenditure shall establish criteria for measuring specific
economic, employment or other outcomes by which the goals and
purposes of a tax expenditure may be objectively measured. + }
The Secretary of State shall schedule the performance and program
audits as directed by the Joint Legislative Audit Committee.
  (2) The Secretary of State may subpoena witnesses, may require
the production of books and papers and rendering of reports in
such manner and form as the Secretary of State requires and may
do all things necessary to secure a full and thorough audit. The
Secretary of State shall report, in writing, to the Legislative
Assembly as provided in ORS 192.245. The report shall include a
copy of the report on each performance and program audit.
  (3) The Secretary of State, as State Auditor, shall contract
with qualified private sector auditors to conduct audits required
by this section, unless the Secretary of State determines that it
is not practical or in the public interest to do so. If the
Secretary of State determines that it is not practical or in the
public interest to contract with qualified private sector
auditors, after notifying the Joint Legislative Audit Committee,
the Secretary of State shall employ auditors for such purpose and
shall include in the written audit report the circumstances that
rendered it impractical or not in the public interest to contract
with qualified private sector auditors. All contracts for
conducting performance and program audits under this section
shall be in a form prescribed or approved by the Secretary of
State. A copy of each completed contract shall be furnished to
the Secretary of State and the Joint Legislative Audit Committee.
The Secretary of State shall employ or contract with auditors
upon terms and for compensation as the Secretary of State
determines are advantageous and advisable.
  (4) An audit conducted under contract as provided in subsection
(3) of this section shall be considered to be conducted by the
Division of Audits for purposes of ORS 297.020, 297.050 and
297.535.
  (5) If a person fails to comply with any subpoena issued under
subsection (2) of this section, a judge of the circuit court of
any county, on application of the Secretary of State, shall
compel obedience by proceedings for contempt as in the case of
disobedience of the requirements of a subpoena issued from the
circuit court.
  (6) The Secretary of State may enter into an agreement with the
department, board, commission, institution  { - , - }
 { + or + } state-aided institution or agency that is the subject
of a performance or program audit { + , or that is the
administrator of a tax expenditure that is the subject of a
performance or program audit, + } for payment of the expenses
incurred by the Secretary of State in conducting the audit. The
Emergency Board may also make funds available to the Division of
Audits to reimburse it for expenses incurred under this section.
  (7) As used in this section:
  (a) 'Performance audit' includes determining:
  (A) Whether an entity described in subsection (1) of this
section that is the subject of the audit is acquiring, protecting
and using its resources economically and efficiently;
   { +  (B) Whether an entity described in subsection (1) of this
section that is charged with administering a tax expenditure is
administering the tax expenditure to economically and efficiently
achieve the goals and purposes of the tax expenditure; + }
    { - (B) - }   { + (C) + } The causes of inefficiencies or
uneconomical practices; and
    { - (C) - }   { + (D) + } Whether the entity has complied
with laws and regulations concerning matters of economy and
efficiency.
  (b) 'Program audit' includes determining:
  (A) The extent to which the desired results or benefits of a
program  { + or tax expenditure + } established by the
Legislative Assembly or other authorizing body are being
achieved;
  (B) The extent to which the need for or objectives of an
ongoing program  { + or tax expenditure + } are necessary or
relevant;
  (C) Whether the program  { + or tax expenditure + }
complements, duplicates, overlaps or conflicts with other related
programs;
  (D) The effectiveness of organizations, programs,
activities { + , + }
  { - or - }  functions { +  or tax expenditures + }; and
  (E) Whether the entity described in subsection (1) of this
section that is the subject of the audit has complied with laws
and regulations applicable to the program.
   { +  (c) 'Tax expenditure' has the meaning given that term in
ORS 291.201. + }
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