SENATE BILL NO. 45 An Act relating to the Legislative Budget and Audit Committee. SENATOR LYDA GREEN noted that SB 45 was an act related to the Legislative Budget and Audit (LBA) Committee. The statute lacks any penalties for those who are uncooperative or who undermine the work of the committee. SB 45 is designed to remedy that by providing prosecutors with the necessary tools to deter and punish those who hinder the investigative work of that committee. A legislative auditor conducts three kinds of audits: · A "look-see" at an agency; · Review of boards due to sunset; and · Post audits. When concerns are presented to the Legislature, audits may be conducted. Senator Green pointed out that audits conducted this year have provided important legislative information. The bill assigns a penalty for non-compliance with an audit and includes provisions for "whistle blowers", on Page 2, Section 4, to provide protection for employees. Senator Green added that penalties and sanctions were included since these situations can be serious. Co-Chair Harris MOVED to ADOPT work draft #23-LS0205\W, Luckhaupt, 5/15/03, as the version of the legislation before the Committee. There being NO OBJECTION, it was adopted. Representative Stoltze realized that when an audit is performed, there are external forces that attempt to delay the release of information. He asked if the legislation would cover that concern. PAT DAVIDSON, DIRECTOR, DIVISION OF LEGISLATIVE AUDIT, responded that the legislation could address that "indirectly". SB 45 will eliminate the obstruction during the course of the audit, which will allow the audit to move forward faster. The bill will enhance the efficiency and timeliness of the audit process. Representative Kerttula voiced appreciation for the sponsor's changes. She referenced Page 3, Lines 9 & 10, "or other matters within the authority of Legislative Budget and Audit Committee". She asked for an example of the range that language indicates. Ms. Davidson explained that the Division of Legislative Budget and Audit performs audits. The Division can be asked to prepare reports, memorandums and/or other matters as directed by the Committee. They attempt to approach all official responsibilities that may be delegated under the auspicious of the LBA Committee. Representative Kerttula voiced concern of "how minimal" that might be. JACQUELINE TUPOU, STAFF, SENATOR LYDA GREEN, interjected that when writing the legislation, it was agreed that the whistle blower statute should be as broad as possible in order to be able to access all information. Representative Kerttula asked about the section of information that allows going into the State employees files. Information could be added to the file regarding if that employee had been dismissed or disciplined for the violation of interference with LBA. She asked if other crimes were intended to be included in that language. Ms. Davidson explained that because one of the penalties was a disciplinary action regarding the personnel laws, disciplinary laws are confidential. If someone had violated the statute, the knowledge of that could not be concealed through the confidentiality of the personnel records. The language of the bill allows that misconduct be publicly exposed. TAPE HFC 03 - 98, Side B  Senator Green advised that the Department of Law was initially opposed to the legislation, but clarified for the record that they now do support current language. SCOTT NORDSTRAND, DEPUTY ATTORNEY GENERAL, CIVIL DIVISION, DEPARTMENT OF LAW, voiced the Department's support of the current committee substitute and reiterated that the bill is "workable". Representative Foster MOVED to report HCS CS SB 45 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HCS CS SB 45 (FIN) was reported out of Committee with a "do pass" recommendation and with zero fiscal note #1 by the Department of Administration and a new zero note by the Department of Law.