House of Representatives

HB 2243

contract auditors; contingent fees; prohibition

Sponsor: Representative May

DPA	Committee on Ways and Means
X	Committee on Commerce and Economic Development
	Caucus and COW
	Third Read
	As Passed the House

HB 2243 prohibits the state or cities from hiring contract auditors on a contingency fee basis.

Current Status

HB 2243 was amended in the Ways and Means Committee to allow contingency fee auditors with respect to unclaimed property audits and removes provisions relating to municipalities.

History

According to the League of Arizona Cities and Towns, there are no cities or towns currently using contract auditors on a contingency fee basis. The Arizona Department of Revenue (DOR) also does not use contract auditors on a contingency fee basis to collect income, transaction privilege, and use taxes. However, DOR does hire contract auditors on a contingency fee basis for unclaimed property. According to DOR, the use of contract auditors for unclaimed property is a general practice among states.

Provisions

· Prohibits DOR from hiring contract auditors on a contingency fee basis.

· Prohibits cities and towns from hiring contract auditors on a contingency fee basis to collect transaction privilege (sales) taxes and use taxes.

Amendments

HB 2243 was amended in the Ways and Means Committee as follows:

· Allows hiring of contingency fee auditors for enforcing unclaimed property provisions.

· Removes provisions relating to municipalities.

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· 45th Legislature

· Second Regular Session 2 March 25, 2002

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