Bill Text: OR HB3415 | 2011 | Regular Session | Engrossed
Bill Title: Relating to audits of public contracts; appropriating money; declaring an emergency.
Sponsorship: Committee Bill
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3415 Detail]
Download: Oregon-2011-HB3415-Engrossed.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 3245
A-Engrossed
House Bill 3415
Ordered by the House April 26
Including House Amendments dated April 26
Sponsored by COMMITTEE ON GENERAL GOVERNMENT AND CONSUMER
PROTECTION
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.
Requires contracting agency to pay fee to Secretary of State in
amount of one-tenth of one percent of contract price for public
improvement contract. Requires Secretary of State to use proceeds
of fee to conduct { - random - } { + or enter into contract
with person to conduct, without notice, + } financial,
performance and compliance audits of public contracts in
accordance with certain standards.
Establishes Public Contracting Audit Account in General Fund of
State Treasury. Continuously appropriates moneys in account to
Secretary of State for purpose of conducting audits of public
contracts.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to audits of public contracts; appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2011 Act is added to and made
a part of ORS chapter 279C. + }
SECTION 2. { + (1)(a) Except as provided in paragraph (b) or
(c) of this subsection, a contracting agency that awards a public
contract subject to this chapter, in addition to and not in lieu
of the charges specified in ORS 297.230, shall pay a fee
equivalent to one-tenth of one percent of the contract price for
the public contract from funds appropriated for the public
contract to the office of the Secretary of State at the time the
contracting agency executes the public contract. The Secretary of
State shall pay the moneys received under this subsection to the
State Treasurer for deposit in the Public Contracting Audit
Account created under section 4 of this 2011 Act.
(b) A contracting agency that uses funds for a public contract
that are subject to provisions under the Oregon Constitution or
under state or federal law that restrict the use of the funds may
not pay the fee described in paragraph (a) of this subsection
except in accordance with the restrictive provisions.
(c) If in accordance with paragraph (b) of this subsection a
contracting agency does not pay a fee under paragraph (a) of this
subsection, the Secretary of State in an interagency agreement or
an intergovernmental agreement under ORS chapter 190 may require
a contracting agency to pay the costs for auditing a specific
public contract. A contracting agency that is a party to an
interagency or intergovernmental agreement described in this
paragraph is not subject to the provisions of paragraph (a) of
this subsection with respect to the public contract that is the
subject of the interagency or intergovernmental agreement.
(2)(a) The secretary shall use the moneys available in the
account to conduct or enter into contracts to conduct financial,
compliance and performance audits of public contracts that
contracting agencies award under the provisions of this chapter.
The secretary shall choose the subject of and conduct each audit
according to standards adopted under ORS 297.070 and without
advance notice to the contracting agency or other parties to the
public contract. A person that the secretary assigns or enters
into a contract with to conduct the audit must have substantial
familiarity with and experience in public improvement contracting
and auditing.
(b) If the secretary finds during an audit or receives reliable
information at any time concerning fraud, waste, misconduct or
abuse for a particular public contract, the secretary may conduct
a special investigation of the contracting agency or other
parties to the public contract and may use moneys from the
account to conduct the special investigation.
(c) The secretary, in accordance with policies and priorities
that the secretary establishes, each year shall allocate the
amount of moneys available or projected to be available in the
account during the year toward conducting a regular course of
audits under this section.
(3) In addition to complying with the requirements of ORS
297.050, the secretary shall publish the report for every audit
conducted under this section on the secretary's website and on
the Oregon transparency website described in ORS 184.483.
(4) An appropriate committee of the Legislative Assembly may
review the audit reports described in subsection (3) of this
section and may establish and convene a work group composed of
representatives from contracting agencies, contractors, the
office of the Secretary of State and other interested persons to
review the audit reports and make recommendations to the
Legislative Assembly concerning the content of the audit reports
and public contracting practices and procedures. + }
SECTION 3. { + Section 4 of this 2011 Act is added to and made
a part of ORS chapter 297. + }
SECTION 4. { + The Public Contracting Audit Account is
established in the General Fund of the State Treasury. All moneys
in the account are continuously appropriated to the Secretary of
State for the purposes set forth in section 2 of this 2011
Act. + }
SECTION 5. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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