Iowa House Republican lawmakers passed legislation Thursday that would define and in some cases limit the scope of the state auditor’s authority while conducting investigations into the use of taxpayer money.
Senate File 478 would place limits on what personal information the state taxpayers’ watchdog could demand during an audit.
Republicans say the bill protects Iowans’ personal information and puts into state law general accounting standards.
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House Democrats decried the bill as a “power grab” that dilutes the statutory and constitutional powers of the auditor’s office to ensure taxpayer dollars are not being misspent, putting billions in federal funds at risk.
Iowa State Auditor Rob Sand is the lone Democrat to hold statewide office.
“We're giving more power to the (Iowa) attorney general and taking it away from the only statewide elected Democratic official” in Iowa, House Minority Leader Jennifer Konfrst, D-Windsor Heights, said of legislation recently signed by Republican Gov. Kim Reynolds to reorganize and consolidate state government.
“This bill is infuriating. This bill is overreach,” Konfrst said. “ … This bill is politics at its worst.”
Republican lawmakers have denied claims the bill is a personal attack meant specifically to target Sand.
The bill would prohibit the State Auditor’s Office from accessing certain information, including medical records, students' educational records, peace officers' reports and any private information that an individual would reasonably expect to keep private.
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House Republicans amended the Senate bill to allow the auditor to access some of the categories of prohibited information as long as the office follows generally accepted government auditing standards, or in cases of embezzlement or theft or to comply with any other state or federal regulation.
Any dispute with another state government agency — including the governor’s office or other statewide offices — would be resolved by a three-member arbitration panel and could not be taken to court.
The panel would include a representative from the auditor’s office and the state agency involved in the dispute and a third member appointed by the governor.
Sand said that would allow any agency being audited to hide records from the auditor's office as long as the governor agrees, erasing the auditor’s access to Iowa courts for independent review.
“It remains the greatest pro-corruption bill in state history, and the worst perversion of checks and balances in Iowa history,” Sand said during a news conference Thursday. “To take an independently elected office that is in the Iowa Constitution and subject its work to the approval of the very same entity that it is attempting to audit, perverts checks and balances, plain and simple.”
Sand called the bill “disgusting” and “partisan,” and thanked the six House Republicans who joined Democrats in voting against the bill.
A bipartisan coalition of state auditors and national organizations that represent state auditors and accounting professionals has said the proposal would hinder the state auditor’s ability to root out and prevent waste, fraud and abuse of taxpayer dollars.
A fiscal analysis by the nonpartisan Legislative Services Agency warns Senate File 478 could limit the ability of the state auditor to perform oversight on programs that total more than $12 billion.
The agency warns the bill may limit the scope of an audit performed by the auditor’s office, which could impact the state’s ability to comply with federal award requirements.
Denial of information requested by the auditor’s office for an audit would lead to a modified opinion stating the office was unable to obtain all documents needed to sufficiently audit to federal standards. That would result in more frequent audits, increasing costs to the state, according to the agency.
It also could potentially lead to federal agencies withholding, suspending or disallowing cash payments to the state through programs such as Medicaid, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Children’s Health Insurance Program (CHIP) and others.
LSA notes Iowa Code and federal law already maintain the strict confidentiality of information and records obtained during the course of an audit, including medical and student education records.
Auditors also are subject to the same restrictions and penalties as the custodian of records for improper disclosure.
Rep. Michael Bergan, the bill’s floor manager and a Republican from Dorchester, argued the amended bill avoids any risk to federal funding and addresses issues raised in the LSA fiscal note.
“That’s the very crux and reason for the amendment — to make sure that there is accessibility” to information when such review is “consistent with the generally accepted government auditing standards,” Bergan said. “So I’m confident that we’ve addressed those issues as we go forward.”
Sand disputed the claim, noting the bill removes language in Iowa Code related to subpoena power of the auditor’s office. And the National State Auditor’s Association, in a letter, said the arbitration board “presents a clear threat to the state auditor’s independence.”
“As comprised, it clearly favors the audited agency rather than having an objective third party decide the matter,” the association wrote. “ … Access to records necessary to conduct an independent audit is essential for the proper oversight of public funds.”
Bergan argued binding arbitration is a “reasonable, effective, timely” way to resolve disputes between state offices and agencies.
He said the bill is needed to clarify questions that were raised during a 2021 Iowa Supreme Court case about when an audit begins, what information is confidential and how disputes are resolved.
“We in no way, in my opinion, are leaving fraud unattended,” Bergan said.
Last month the Iowa Supreme Court ruled the state auditor does not have the authority to investigate the Iowa Communities Assurance Pool that provides property an casualty insurance coverage to counties, cities and other taxpayer funded local government entities across Iowa.
Sand had filed a subpoena seeking records about annual meetings the risk pool’s board of directors held at out of state resorts.
Bergan sits on the board.
The Iowa Supreme Court ruled the risk pool was formed under a section of Iowa law that does not fall under the oversight of the state auditor’s office.
Republican state senators say the ruling shows Sand abused his subpoena power and that the bill is needed to restrict what the auditor’s office can investigate.
Three Republican senators — Mike Bousselot of Ankeny, Mike Klimesh of Spillville and Jason Schultz of Schleswig — have asked Sand to provide them with the records of all the subpoenas the state auditor’s office has issued since Sand took office in January of 2019.
Sand said the records request is a distraction from what outside analysts and Republicans and Democrats alike say is a bill that will make it easier to conceal waste, fraud and abuse of taxpayer money.
“Let’s be clear about this. This is the destruction of Democratic norms,” Sand told reporters Thursday.
The amended bill will now go back to the Iowa Senate for approval.
www.thegazette.com
Senate File 478 would place limits on what personal information the state taxpayers’ watchdog could demand during an audit.
Republicans say the bill protects Iowans’ personal information and puts into state law general accounting standards.
Advertisement
House Democrats decried the bill as a “power grab” that dilutes the statutory and constitutional powers of the auditor’s office to ensure taxpayer dollars are not being misspent, putting billions in federal funds at risk.
Iowa State Auditor Rob Sand is the lone Democrat to hold statewide office.
“We're giving more power to the (Iowa) attorney general and taking it away from the only statewide elected Democratic official” in Iowa, House Minority Leader Jennifer Konfrst, D-Windsor Heights, said of legislation recently signed by Republican Gov. Kim Reynolds to reorganize and consolidate state government.
“This bill is infuriating. This bill is overreach,” Konfrst said. “ … This bill is politics at its worst.”
Republican lawmakers have denied claims the bill is a personal attack meant specifically to target Sand.
The bill would prohibit the State Auditor’s Office from accessing certain information, including medical records, students' educational records, peace officers' reports and any private information that an individual would reasonably expect to keep private.
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House Republicans amended the Senate bill to allow the auditor to access some of the categories of prohibited information as long as the office follows generally accepted government auditing standards, or in cases of embezzlement or theft or to comply with any other state or federal regulation.
Any dispute with another state government agency — including the governor’s office or other statewide offices — would be resolved by a three-member arbitration panel and could not be taken to court.
The panel would include a representative from the auditor’s office and the state agency involved in the dispute and a third member appointed by the governor.
Sand said that would allow any agency being audited to hide records from the auditor's office as long as the governor agrees, erasing the auditor’s access to Iowa courts for independent review.
“It remains the greatest pro-corruption bill in state history, and the worst perversion of checks and balances in Iowa history,” Sand said during a news conference Thursday. “To take an independently elected office that is in the Iowa Constitution and subject its work to the approval of the very same entity that it is attempting to audit, perverts checks and balances, plain and simple.”
Sand called the bill “disgusting” and “partisan,” and thanked the six House Republicans who joined Democrats in voting against the bill.
A bipartisan coalition of state auditors and national organizations that represent state auditors and accounting professionals has said the proposal would hinder the state auditor’s ability to root out and prevent waste, fraud and abuse of taxpayer dollars.
A fiscal analysis by the nonpartisan Legislative Services Agency warns Senate File 478 could limit the ability of the state auditor to perform oversight on programs that total more than $12 billion.
The agency warns the bill may limit the scope of an audit performed by the auditor’s office, which could impact the state’s ability to comply with federal award requirements.
Denial of information requested by the auditor’s office for an audit would lead to a modified opinion stating the office was unable to obtain all documents needed to sufficiently audit to federal standards. That would result in more frequent audits, increasing costs to the state, according to the agency.
It also could potentially lead to federal agencies withholding, suspending or disallowing cash payments to the state through programs such as Medicaid, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Children’s Health Insurance Program (CHIP) and others.
LSA notes Iowa Code and federal law already maintain the strict confidentiality of information and records obtained during the course of an audit, including medical and student education records.
Auditors also are subject to the same restrictions and penalties as the custodian of records for improper disclosure.
Rep. Michael Bergan, the bill’s floor manager and a Republican from Dorchester, argued the amended bill avoids any risk to federal funding and addresses issues raised in the LSA fiscal note.
“That’s the very crux and reason for the amendment — to make sure that there is accessibility” to information when such review is “consistent with the generally accepted government auditing standards,” Bergan said. “So I’m confident that we’ve addressed those issues as we go forward.”
Sand disputed the claim, noting the bill removes language in Iowa Code related to subpoena power of the auditor’s office. And the National State Auditor’s Association, in a letter, said the arbitration board “presents a clear threat to the state auditor’s independence.”
“As comprised, it clearly favors the audited agency rather than having an objective third party decide the matter,” the association wrote. “ … Access to records necessary to conduct an independent audit is essential for the proper oversight of public funds.”
Bergan argued binding arbitration is a “reasonable, effective, timely” way to resolve disputes between state offices and agencies.
He said the bill is needed to clarify questions that were raised during a 2021 Iowa Supreme Court case about when an audit begins, what information is confidential and how disputes are resolved.
“We in no way, in my opinion, are leaving fraud unattended,” Bergan said.
Last month the Iowa Supreme Court ruled the state auditor does not have the authority to investigate the Iowa Communities Assurance Pool that provides property an casualty insurance coverage to counties, cities and other taxpayer funded local government entities across Iowa.
Sand had filed a subpoena seeking records about annual meetings the risk pool’s board of directors held at out of state resorts.
Bergan sits on the board.
The Iowa Supreme Court ruled the risk pool was formed under a section of Iowa law that does not fall under the oversight of the state auditor’s office.
Republican state senators say the ruling shows Sand abused his subpoena power and that the bill is needed to restrict what the auditor’s office can investigate.
Three Republican senators — Mike Bousselot of Ankeny, Mike Klimesh of Spillville and Jason Schultz of Schleswig — have asked Sand to provide them with the records of all the subpoenas the state auditor’s office has issued since Sand took office in January of 2019.
Sand said the records request is a distraction from what outside analysts and Republicans and Democrats alike say is a bill that will make it easier to conceal waste, fraud and abuse of taxpayer money.
“Let’s be clear about this. This is the destruction of Democratic norms,” Sand told reporters Thursday.
The amended bill will now go back to the Iowa Senate for approval.
Iowa House advances bill limiting state taxpayer watchdog
Iowa House Republican lawmakers passed legislation Thursday that would define and in some cases
www.thegazette.com
