REPORT TITLE:
Auditor


DESCRIPTION:
Clarifies scope of the confidentiality of the Auditor's working
papers.  (SB3045 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3045
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE AUDITOR.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 23-5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§23-5 Auditor; powers.  (a)  The auditor may examine and
 
 4 inspect all accounts, books, records, files, papers, and
 
 5 documents and all financial affairs of every department, office
 
 6 and agency and political subdivision[, and may, by precept under
 
 7 the auditor's hand in the form contained in section 40-93,
 
 8 require all such persons as the auditor may think fit to appear
 
 9 personally before the auditor at any time and place to be named
 
10 in the precept, and to produce to the auditor all such accounts,
 
11 books, records, files, papers, and documents in the possession or
 
12 control of such persons as shall appear to be necessary for the
 
13 purpose of examination].
 
14      (b)  The auditor may cause search to be made and extracts to
 
15 be taken from any account, book, file, paper, [or] record, or
 
16 document in the custody of any public officer without paying any
 
17 fee for the same; and every officer having the custody of the
 
18 accounts, books, records, files, papers, and documents shall make
 
19 such search and furnish such extracts as thereto requested.
 

 
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 1      (c)  The auditor may issue:
 
 2      (1)  Subpoenas compelling at a specified time and place the
 
 3           appearance and sworn testimony of any person whom the
 
 4           auditor reasonably believes may be able to give
 
 5           information relating to any audit or other
 
 6           investigation undertaken pursuant to this chapter; and
 
 7      (2)  Subpoena duces tecum compelling the production of
 
 8           accounts, books, records, files, papers, documents, or
 
 9           other evidence, which the auditor reasonably believes
 
10           may relate to an audit or other investigation being
 
11           conducted under this chapter."
 
12      SECTION 2.  Section 23-9.5, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "[[]§23-9.5[]  Confidentiality.]  "Working papers privilege"
 
15 and confidentiality.  (a)  The auditor and the employees,
 
16 consultants, or contractors of the office of the auditor shall
 
17 not be required or compelled to disclose any working papers[.] or
 
18 the contents thereof, in any form, to any person or in response
 
19 to any judicial, quasijudicial, or administrative process.  For
 
20 the purposes of this section, "working papers" means the notes,
 
21 internal memoranda, and records of work performed by the auditor
 
22 on audits and other investigations undertaken pursuant to this
 
23 chapter, including any and all project evidence collected and
 
24 developed by the auditor.
 

 
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 1      (b)  The privilege does not cease upon issuance by the
 
 2 auditor of any audit report, study, or public documents.  The
 
 3 auditor's "working papers privilege" encompasses all working
 
 4 papers collected by, reviewed by, and provided to the auditor and
 
 5 the employees, consultants, and contractors of the office of
 
 6 auditor in the course of their duties to investigate, audit, and
 
 7 produce reports.
 
 8      (c)  The auditor's "working papers privilege" shall be
 
 9 recognized pursuant to the Hawaii Rules of Evidence, the Hawaii
 
10 Rules of Penal Procedure, and the Hawaii Rules of Civil
 
11 Procedure.
 
12      (d)  If compelled by any legal process to disclose in any
 
13 form any working papers or their contents, the auditor, and the
 
14 employees, consultants, and contractors of the office of the
 
15 auditor shall be released from any liability and all claims
 
16 resulting from the disclosure.
 
17      (e)  A decision by the auditor or any other person
 
18 encompassed by the auditor's "working papers privilege" to
 
19 disclose certain working papers or their contents, in any form,
 
20 shall not constitute a waiver of the privilege as to other
 
21 working papers." 
 
22      SECTION 3.  Statutory material to be repealed is bracketed.
 
23 New statutory material is underscored.
 
24      SECTION 4.  This Act shall take effect upon its approval.