Government Administration and Elections Committee
JOINT FAVORABLE REPORT
Bill No.: SB-1071
AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE AUDITORS OF
Title: PUBLIC ACCOUNTS.
Vote Date: 3/31/2021
Vote Action: Joint Favorable Substitute
PH Date: 3/24/2021
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
The Government Administration and Elections Committee
REASONS FOR BILL:
This bill seeks to implement the recommendations made by the Auditors of Public Accounts
in their 2020 annual report. Recommendations include revisions of current statute to help
streamline the state audit process and provide for better public transparency. Some of the
changes include adjustments to the statutes governing state contracting, new deadlines for
the real property surplus process administered by the Department of Administrative Services,
and explicitly prohibits agencies from denying the auditors access to the agency's records.
RESPONSE FROM ADMINISTRATION/AGENCY:
John C. Geragosian, State Auditor, Auditors of Public Accounts: Mr. Geragosians
testimony highlighted the intent of all the sections contained in this bill. Section 1 was
incorporated to strengthen the Auditors of Public Accounts access to state and quasi-public
agency records. Section 2 of the bill mandates that agreements with private contractors
include language requiring the contractor to provide related records and information to the
contracting agency. Section 3 modernized the state auditing statutes and requires private
contractors carrying out state business to provide more information to the Auditors of Public
Accounts. Section 4 requires state agencies contracting for audit services to notify the
Auditors of Public Accounts about said contract. Section 5 amends statute to clarify the
definition of private special education provider and what constitutes special education
services. Section 6 amends statute to remove certain references to management function
placed on the Auditors of Public Accounts. Section 7 amends statutes to establish deadlines
for DAS in terms of the real property surplus process. Section 11 amends statutes to extend
the Code of Ethics for Public Officials to the employees of consultants or independent
contractors. The Auditors of Public Accounts testimony reviewed several other sections of
the bill that mainly involved statutory revision. Attached to the Auditors of Public Accounts
testimony is a copy of their 2020 Annual Report.
Department of Administrative Services (DAS): DAS expressed support for the bill. In
particular, DAS referenced Section 7 of the bill, which reduces the timeframe that
municipalities have to notify DAS of its intention to purchase or decline a piece of property.
Additionally, DAS supports Section 2 of the bill, which contains language requiring that any
contract between a contracting agency and a contractor contain a provision authorizing the
state contracting authority to access any data concerning the agency that is using the
contractors. Specifically, DAS recommends that the word agency in line 16 be replaced by
the word contract. DAS believes that this clarification will ensure that any relevant agency
data collected by the contractor is a result of its performance under the terms and scope of
the specified contract.
Peter Lewandowski, Executive Director, Office of State Ethics (OSE): The Office of State
Ethics provided testimony in support of the bill. OSE cited Section 11 of the bill, which
amends the Code of Ethics for Public Officials to extend prohibited activities that currently
apply to consultants and independent contractors to the employees hired by such consultants
and independent contractors. OSE emphasized the goal of the amendment, which is to
prevent the potential for self-dealing by the employees of consultants and independent
contractors. Such employees could be inclined to steer a state agency to purchase goods or
services from an entity that could be of financial benefit to them. OSE contends that this
amendment would help to protect the state from any malfeasance or improper business
steering.
NATURE AND SOURCES OF SUPPORT:
None expressed.
NATURE AND SOURCES OF OPPOSITION:
None expressed.
Reported by: Trevor Hoffman Date: 03/31/2021
Page 2 of 2 SB-1071


Statutes affected:
Raised Bill: 2-90, 31-426, 8-260, 15-120kk, 32-42, 1-86e, 2-90b
GAE Joint Favorable Substitute: 2-90, 1-122, 31-426, 8-260, 15-120kk, 32-42, 1-86e, 2-90b
File No. 523: 2-90, 1-122, 31-426, 8-260, 15-120kk, 32-42, 1-86e, 2-90b
Public Act No. 21-145: 2-90, 1-122, 31-426, 8-260, 15-120kk, 32-42, 1-86e, 2-90b