House committee substitute to the 2nd edition makes the following changes.
Discards the amendments to definitions of federal agency and state agency in Section 4 and adds a new definition of “publicly funded entity” in GS 147-64.4(5), which is any individual, corporation, institution, association, board, or other organization that receives, disburses, or otherwise handles state or federal funds.
Replaces the reference to individuals who receive public funds with publicly funded entities in Section 5’s proposed changes to GS 147-64.6B(b).
Amends GS 147-64.7 to also give the auditor access to databases, datasets, and digital records, and limits the access to all of the listed items to audits and investigations under GS 147-64.6 (c)(25), as described below. Adds the state government, the State, or its political subdivisions, to the proposed language in Section 6 for GS 147-64.7(a)(2)b. Includes publicly funded entity instead of individuals, corporations, or institutions under subdivision (3), and provides that audits and investigations of publicly funded entities are limited by GS 147-64.6(c).
Makes the previous Section 7 language the new Section 7.(a), and adds Section 7.(b), which amends GS 126-1.1(c) to provide procedures for employees of the Office of State Auditor that have attained career status before July 1, 2025, to elect to waive that status and become exempt under GS 126-5(c1)(41), and for probationary employees hired before July 1, 2025, to elect to continue to earn career status or become exempt under GS 126-5(c1)(41).
Adds subdivision (25) to the amendments of GS 147-64.6(c) in Section 11, which permits the auditor to engage in audits or investigations of any publicly funded entity, limited to the state or federal funds received or otherwise handled by the entity.
Bill Summaries: H549 CLARIFY POWERS OF STATE AUDITOR.
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Bill H 549 (2025-2026)Summary date: Apr 29 2025 - View Summary
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Bill H 549 (2025-2026)Summary date: Apr 8 2025 - View Summary
House committee substitute to the 1st edition makes the following changes.
Changes the effective date of the following from when the act became law to July 1, 2025, applicable to contracts entered into or renewed on or after that date: (1) changes to GS 143-64.24, (2) changes to GS 143B-1320, and (3) changes to GS 143B-1350.
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Bill H 549 (2025-2026)Summary date: Mar 26 2025 - View Summary
Exempts the Office of the State Auditor (Auditor) from the following provisions of the General Statutes:
- Article 3C of GS Chapter 143 (contracts to obtain consultant services).
- Article 15 of GS Chapter 143B (the Department of Information Technology under the Executive Organization Act of 1973).
- Part 4 of Article 15 of GS Chapter 143B (procurement of information technology), but directs the Auditor to comply with GS 147-64.7(b)(1) instead (the auditor’s powers to contract with certain professional persons and experts).
- For officers and employees of the Auditor, all of GS Chapter 126 (NC Human Resources Act), except for Articles 6 and 7 (Equal Employment and Compensation Opportunities and Privacy of State Personnel Records, respectively).
Amends GS 143B-1320 (Scope of Article 15 of GS Chapter 143B) so that listed government entities are only exempt from Article 15 (was, all of GS Chapter 143B).
Broadens the definition of federal agency so that it includes any entity that receives federal funds and clarifies that State agency includes any entity that receives State funds in the definitions provisions pertaining to the Auditor, GS 147-64.4. Expands the Auditor’s investigative authority under GS 147-64.6B(b) to include investigations of employees of State agencies, and individuals who receive public funds. Requires entities receiving a demand for records from the Auditor under GS 147-64.7(a)(1) to, upon demand by the Auditor, also provide access to continuous and unrestricted view of databases, datasets, and digital records necessary for any purpose within the authority of the Auditor, including performing audits of any type, assessing government efficiency, risk assessment, fraud detection, audit planning, and evidence gathering. Now allows representatives of the Auditor (was, agents of the Auditor) to examine all books and accounts of those individuals as they relate to transactions with any State agency. Authorizes the Auditor to initiate an action in Superior Court for a show cause hearing upon a person's failure or refusal to comply with a request made under GS 147-64.7. Makes technical changes. Increases the Auditor’s responsibilities under GS 147-64.6(c) to include notifying the Department of Revenue if an audit or investigation reveals that money is owed to a State agency so that it may collect the funds owed.
Makes conforming changes to GS 143B-1350 and GS 126-5. Repeals 143B-168.12(b) which subjected the North Carolina Partnership to audit and review by the State Auditor and required the Auditor to conduct annual financial and compliance audits of the North Carolina Partnership. Repeals Section 62(b) of SL 2014-115, which required the State Auditor to verify and certify the required membership numbers need to qualify for payroll deduction for the employees' association. Repeals GS 143B-1410, which concerned the State Auditor's audits of the 911 Board.