Substitute Senate Bill No. 462
          Substitute Senate Bill No. 462

              PUBLIC ACT NO. 98-143


AN ACT CONCERNING THE REVIEW AND IMPLEMENTATION OF
RECOMMENDATIONS OF THE AUDITORS OF PUBLIC ACCOUNTS
AND   AMENDING   SINGLE   AUDIT   PROVISIONS   FOR
RECIPIENTS OF STATE FINANCIAL ASSISTANCE.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section   2-92   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    The Auditors of  Public Accounts shall present
a report of  the operations of their office to the
General Assembly, not  later than [the fourth week
of each regular session] FEBRUARY FIRST, ANNUALLY,
which report shall contain such recommendations as
they deem desirable.
    Sec. 2. Section  20-8  of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    There shall be within the Department of Public
Health a Connecticut Homeopathic Medical Examining
Board, which shall  consist  of  three homeopathic
physicians and two public members appointed by the
Governor  subject to  the  provisions  of  section
4-9a.  The  Governor   shall   fill   any  vacancy
occurring in said  board. Said board shall meet at
least once during  each  calendar  quarter  and at
such other times  as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the  board  after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE  MEMBERS  OF  THE  BOARD  SHALL  CONSTITUTE  A
QUORUM. Members shall not be compensated for their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No member  shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
official of a  professional society of homeopathic
physicians or have  been  such  an official during
the year immediately  preceding  his  appointment.
Said  board shall  (1)  hear  and  decide  matters
concerning suspension or  revocation of licensure,
(2)  adjudicate complaints  against  practitioners
and (3) impose sanctions where appropriate.
    Sec. 3. Subsection (f) of section 20-8a of the
general statutes is  repealed and the following is
substituted in lieu thereof:
    (f) The Governor  shall  appoint a chairperson
from among the  board  members.  Said  board shall
meet at least  once  during  each calendar quarter
and at such  other  times as the chairperson deems
necessary. Special meetings  shall  be held on the
request of a majority of the board after notice in
accordance with the  provisions of section 1-21. A
MAJORITY  OF  THE   MEMBERS  OF  THE  BOARD  SHALL
CONSTITUTE  A  QUORUM.   Members   shall   not  be
compensated for their  services.  Any  member  who
fails to attend  three consecutive meetings or who
fails to attend  fifty  per  cent  of all meetings
held during any  calendar  year shall be deemed to
have resigned from office. Minutes of all meetings
shall be recorded  by  the  board. No member shall
participate in the affairs of the board during the
pendency of any  disciplinary  proceedings  by the
board against such  member.  Said  board shall (1)
hear and decide  matters  concerning suspension or
revocation of licensure, (2) adjudicate complaints
against  practitioners and  (3)  impose  sanctions
where appropriate.
    Sec. 4. Section  20-15 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    The state board  of  osteopathic  registration
and examination shall  be known as the Connecticut
Osteopathic Examining Board  and shall continue to
consist  of  five   members,   appointed   by  the
Governor, subject to  the  provisions  of  section
4-9a,  three of  whom  shall  be  engaged  in  the
practice of osteopathy  in  this state, and two of
whom shall be  public  members. The Governor shall
appoint a person  to fill any vacancy which occurs
upon the examining board. Said board shall meet at
least once during  each  calendar  quarter  and at
such other times  as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the  board  after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE  MEMBERS  OF  THE  BOARD  SHALL  CONSTITUTE  A
QUORUM. Members shall not be compensated for their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No member  shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer  of a professional society of
osteopathic  physicians  or   have  been  such  an
officer during the  year immediately preceding his
appointment. Said board  shall (1) hear and decide
matters  concerning suspension  or  revocation  of
licensure,  (2)  adjudicate   complaints   against
practitioners  and  (3)   impose  sanctions  where
appropriate.
    Sec. 5. Section  20-25 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    The  State  Board  of  Chiropractic  Examiners
shall consist of seven members, four of whom shall
be practicing chiropractors  and residents of this
state  and  shall   have   practiced  chiropractic
continuously in this  state  for  at  least  three
years, and three  of whom shall be public members.
The Governor shall  appoint  a chairman from among
the members of the board. Said board shall meet at
least once during  each  calendar  quarter  and at
such other times  as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the  board  after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE  MEMBERS  OF  THE  BOARD  SHALL  CONSTITUTE  A
QUORUM. Members shall not be compensated for their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No member  shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer  of a professional society of
chiropractors or have  been such an officer during
the year immediately preceding his appointment. No
member shall serve  more than two full consecutive
terms which commence  after  July  1,  1980.  Said
board shall (1) hear and decide matters concerning
suspension  or  revocation   of   licensure,   (2)
adjudicate  complaints against  practitioners  and
(3) impose sanctions where appropriate.
    Sec. 6. Section  20-35 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    The  State Board  of  Natureopathic  Examiners
shall continue to consist of three members, two of
whom shall be  practicing natureopathic physicians
of this state  and  one  of whom shall be a public
member. The Governor  shall appoint the members of
said board subject  to  the  provisions of section
4-9a. Said board  shall  meet at least once during
each calendar quarter  and  at such other times as
the  chairman deems  necessary.  Special  meetings
shall be held  on the request of a majority of the
board  after  notice   in   accordance   with  the
provisions of section  1-21.  A  MAJORITY  OF  THE
MEMBERS OF THE  BOARD  SHALL  CONSTITUTE A QUORUM.
Members  shall  not   be   compensated  for  their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No member  shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer  of a professional society of
natureopathic  physicians or  have  been  such  an
officer during the  year immediately preceding his
appointment. Said board  shall (1) hear and decide
matters  concerning suspension  or  revocation  of
licensure,  (2)  adjudicate   complaints   against
practitioners  and  (3)   impose  sanctions  where
appropriate.
    Sec. 7. Section  20-51 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    The Connecticut Board of Examiners in Podiatry
shall consist of  five members. The Governor shall
appoint three members  of  said board who shall be
resident practicing podiatrists  of  good standing
in  their profession  and  graduates  of  approved
colleges or schools  of  chiropody or podiatry and
two public members.  The  Governor shall appoint a
chairman from among such members. Said board shall
meet at least  once  during  each calendar quarter
and at such  other  times  as  the  chairman deems
necessary. Special meetings  shall  be held on the
request of a majority of the board after notice in
accordance with the  provisions of section 1-21. A
MAJORITY  OF  THE   MEMBERS  OF  THE  BOARD  SHALL
CONSTITUTE  A  QUORUM.   Members   shall   not  be
compensated for their  services.  Any  member  who
fails to attend  three consecutive meetings or who
fails to attend  fifty  per  cent  of all meetings
held during any  calendar  year shall be deemed to
have resigned from office. Minutes of all meetings
shall be recorded  by  the  board. No member shall
participate in the affairs of the board during the
pendency of any  disciplinary  proceedings  by the
board against such  member. No professional member
shall be an  elected  or  appointed  officer  of a
professional society of  podiatrists  or have been
such  an  officer   during  the  year  immediately
preceding his appointment.  No  member shall serve
more  than  two   full   consecutive  terms  which
commence after July 1, 1980.
    Sec. 8. Section  20-88 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) The Connecticut  State  Board of Examiners
for Nursing shall  consist  of  twelve members who
are residents of  the state to be appointed by the
Governor  subject to  the  provisions  of  section
4-9a. The Governor  shall  appoint two members who
shall  be graduates  of  an  approved  school  for
licensed practical nursing; five members who shall
be registered nurses,  three of whom shall, at the
time  of  appointment,   be   connected   with  an
institution   affording  opportunities   for   the
education of nurses,  and  at  least  two  of whom
shall hold master's  degrees  in  nursing  from  a
recognized college or  university  and one of whom
shall be at  the time of appointment an instructor
in  an  approved  school  for  licensed  practical
nurses;  one  member  who  shall  be  an  advanced
practice registered nurse;  and  four  members who
shall be public  members.  Members  of  said board
shall be residents  of this state and professional
members shall maintain good professional standing.
No member of  said  board  shall  be an elected or
appointed officer of  any professional association
of nurses or  have been such an officer during the
year  immediately preceding  his  appointment.  No
member shall serve  more than two full consecutive
terms  which commence  after  July  1,  1980.  Any
vacancy shall be  filled  by  the Governor for the
unexpired portion of the term.
    (b) The Governor  shall  appoint a chairperson
from among such  members. Said board shall meet at
least once during  each  calendar  quarter  and at
such other times  as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the  board  after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE  MEMBERS  OF  THE  BOARD  SHALL  CONSTITUTE  A
QUORUM. Members shall not be compensated for their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No member  shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member.
    Sec.  9.  Section   20-103a   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) The State  Dental Commission shall consist
of nine members appointed by the Governor, subject
to the provisions  of  section  4-9a,  six of whom
shall be practitioners  in  dentistry  residing in
this state who  are  in  good  standing  in  their
profession  and three  of  whom  shall  be  public
members. No member  of said commission shall be an
elected or appointed  officer  of  a  professional
association of members  of  his profession or have
been such an  officer  for  the  year  immediately
preceding  his appointment.  The  Commissioner  of
Public Health, with advice and assistance from the
Dental  Commission,  may   issue   regulations  to
implement the provisions  of  this chapter, and to
insure proper dental  care  and  the protection of
public  health, considering  the  convenience  and
welfare of the patient, methods recommended by the
canon of ethics  of  the  Connecticut State Dental
Association and the  American  Dental  Association
and accepted health  standards  as  promulgated by
local health ordinances  and  state  statutes  and
regulations.
    (b) The Governor  shall  appoint a chairperson
from among such  members.  Said  commission  shall
meet at least  once  during  each calendar quarter
and at such  other  times  as  the  chairman deems
necessary. Special meetings  shall  be held on the
request of a  majority  of  the  commission  after
notice  in  accordance   with  the  provisions  of
section 1-21. A  MAJORITY  OF  THE  MEMBERS OF THE
COMMISSION  SHALL  CONSTITUTE  A  QUORUM.  Members
shall not be  compensated  for their services. Any
member  who  fails  to  attend  three  consecutive
meetings or who  fails to attend fifty per cent of
all meetings held  during  any calendar year shall
be deemed to have resigned from office. Minutes of
all meetings shall  be recorded by the commission.
No member shall  participate in the affairs of the
commission during the pendency of any disciplinary
proceedings by the commission against such member.
No member shall  serve  for  more  than  two  full
consecutive terms commencing  after  July 1, 1980.
Said commission shall  (1) hear and decide matters
concerning suspension or  revocation of licensure,
(2)    adjudicate   complaints    filed    against
practitioners  and  (3)   impose  sanctions  where
appropriate.
    Sec.  10.  Section   20-128a  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) There shall  be  within  the Department of
Public Health a Connecticut Board of Examiners for
Optometrists. Said board  shall  consist  of seven
members appointed by  the Governor, subject to the
provisions  of  section  4-9a,  as  follows:  Four
practicing   licensed   optometrists    in    good
professional standing who reside in this state and
three public members.  The  optometrists appointed
for terms beginning  on and after January 1, 1997,
shall  be  optometrists   authorized   under  this
chapter to practice  at the highest level of their
profession, except that any optometrist serving on
the board on  October  1,  1996, shall be eligible
for reappointment on  or  after  January  1, 1997,
whether or not  such  optometrist is authorized to
practice at the  highest  level of his profession.
The Governor shall  appoint  a chairman from among
such members. No  member  appointed  on  or  after
January 1, 1991, shall serve on the board for more
than eight years.
    (b) Said board shall meet at least once during
each calendar quarter  and  at such other times as
the  chairman deems  necessary.  Special  meetings
shall be held  on the request of a majority of the
board  after  notice   in   accordance   with  the
provisions of section  1-21.  A  MAJORITY  OF  THE
MEMBERS OF THE  BOARD  SHALL  CONSTITUTE A QUORUM.
Members  shall  not   be   compensated  for  their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No member  shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer  of a professional society of
optometrists or have  been  such an officer during
the year immediately preceding his appointment.
    (c) The Commissioner  of  Public  Health, with
advice and assistance from the board, may make and
enforce such regulations as the commissioner deems
necessary  to  maintain  proper  professional  and
ethical standards for  optometrists. The board may
revoke or suspend licenses for cause.
    (d) The Board  of  Examiners  for Optometrists
shall  (1)  hear  and  decide  matters  concerning
suspension  or  revocation   of   licensure,   (2)
adjudicate complaints filed  against practitioners
licensed  under  this   chapter   and  (3)  impose
sanctions where appropriate.
    Sec.  11.  Section   20-139a  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) There shall  be  within  the Department of
Public Health a Connecticut Board of Examiners for
Opticians.  Said  board  shall  consist  of  three
members appointed by  the Governor, subject to the
provisions  of  section   4-9a,  as  follows:  Two
practicing licensed opticians in good professional
standing who reside  in  this state and one public
member. The Governor shall appoint a chairman from
among such members.
    (b) Said board shall meet at least once during
each calendar quarter  and  at such other times as
the  chairman deems  necessary.  Special  meetings
shall be held  on the request of a majority of the
board  after  notice   in   accordance   with  the
provisions of section  1-21.  A  MAJORITY  OF  THE
MEMBERS OF THE  BOARD  SHALL  CONSTITUTE A QUORUM.
Members  shall  not   be   compensated  for  their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No members shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer  of a professional society of
opticians or have  been such an officer during the
year immediately preceding his appointment.
    (c) The Commissioner  of  Public  Health, with
advice and assistance from the board, may make and
enforce such regulations as the commissioner deems
necessary  to  maintain  proper  professional  and
ethical standards for  opticians.  The  board  may
revoke or suspend licenses for cause.
    (d) The Board of Examiners for Opticians shall
(1) hear and  decide matters concerning suspension
or  revocation  of   licensure,   (2)   adjudicate
complaints  filed against  practitioners  licensed
under this chapter  and (3) impose sanctions where
appropriate.
    Sec.  12.  Section   20-186   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) The Board  of  Examiners  of Psychologists
shall consist of  five  members  appointed  by the
Governor,  three  of   whom  shall  be  practicing
psychologists in good  professional  standing  and
licensed  according  to  the  provisions  of  this
chapter and two  of  whom shall be public members.
Each such member  shall  be  a  resident  of  this
state. No member of said board shall be an elected
or   appointed   officer   of   any   professional
association of psychologists  or have been such an
officer during the  year immediately preceding his
appointment.  The  Governor  shall  designate  one
member as chairman  of  said  board and shall fill
any  vacancy  therein   by   appointment  for  the
unexpired portion of  the  term.  No  member shall
serve for more  than  two  full  consecutive terms
commencing after July  1,  1980. Members shall not
be compensated for their services.
    (b) Said board shall meet at least once during
each calendar quarter  and  at such other times as
the  chairman deems  necessary.  Special  meetings
shall be held  on the request of a majority of the
board  after  notice   in   accordance   with  the
provisions of section  1-21.  A  MAJORITY  OF  THE
MEMBERS OF THE  BOARD  SHALL  CONSTITUTE A QUORUM.
Any member who  fails  to attend three consecutive
meetings or who  fails to attend fifty per cent of
all meetings held  during  any calendar year shall
be deemed to have resigned from office. Minutes of
all meetings shall  be  recorded  by the board. No
member shall participate  in  the  affairs  of the
board  during the  pendency  of  any  disciplinary
proceedings by the board against such member.
    Sec.  13.  Section   20-196   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) There shall  be  a  Connecticut  Board  of
Veterinary Medicine. The  board  shall  consist of
five members appointed by the Governor, subject to
the provisions of  section 4-9a, as follows: Three
members of said  board  shall  be practitioners of
veterinary medicine residing in this state in good
professional  standing and  two  shall  be  public
members. No member  of  said  board  shall  be  an
elected or appointed  officer  of  the Connecticut
Veterinary Medical Association  or  have been such
an officer during  the  year immediately preceding
his  appointment,  or  serve  for  more  than  two
consecutive  terms.  The  Commissioner  of  Public
Health with the  advice  and  assistance  of  said
board  may  issue  regulations  to  insure  proper
veterinary  care  and  the  protection  of  public
health, considering the convenience and welfare of
the animals being  treated, methods recommended by
the code of  ethics  of  the  national  and  state
veterinary associations, proper  registrations  of
veterinarians   for  prompt   identification   and
accepted  health  and   veterinary   standards  as
promulgated by the  Department  of  Public Health,
Department of Agriculture  health  ordinances  and
state statutes and regulations.
    (b) The Governor shall appoint a chairman from
among such members. Said board shall meet at least
once during each  calendar  quarter  and  at  such
other  times  as  the  chairman  deems  necessary.
Special meetings shall be held on the request of a
majority of the  board  after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE  MEMBERS  OF  THE  BOARD  SHALL  CONSTITUTE  A
QUORUM. Members shall not be compensated for their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No member  shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member.
    Sec.  14.  Section   20-208   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) The board  shall  consist of five members,
who shall be residents of the state, three of whom
shall be practical  arterial  embalmers,  shall be
actively engaged in  the  practice of embalming at
the  time of  their  respective  appointments  and
shall  be  licensed   embalmers   as   hereinafter
provided; and two of whom shall be public members.
The Governor shall  appoint  the  members  of said
board in accordance with the provisions of section
4-9a. Any vacancy in said board shall be filled by
the Governor for  the  unexpired  portion  of  the
term. No member  of said board shall be an elected
or   appointed   officer   of   any   professional
association of embalmers  or  funeral directors or
have  been  such   an   officer  during  the  year
immediately   preceding   his   appointment.   The
Governor shall appoint  a  chairperson  from among
such members. No  member shall serve for more than
two full consecutive  terms  commencing after July
1, 1980. Members  shall  not  be  compensated  for
their services.
    (b) Said board shall meet at least once during
each calendar quarter  and  at such other times as
the  chairman deems  necessary.  Special  meetings
shall be held  on the request of a majority of the
board  after  notice   in   accordance   with  the
provisions of section  1-21.  A  MAJORITY  OF  THE
MEMBERS OF THE  BOARD  SHALL  CONSTITUTE A QUORUM.
Any member who  fails  to attend three consecutive
meetings or who  fails to attend fifty per cent of
all meetings held  during  any calendar year shall
be deemed to have resigned from office. Minutes of
all meetings shall  be  recorded  by the board. No
member shall participate  in  the  affairs  of the
board  during the  pendency  of  any  disciplinary
proceedings by the board against such member.
    Sec.  15.  Section   20-235a  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    There shall be within the Department of Public
Health a Connecticut  Examining Board for Barbers,
Hairdressers and Cosmeticians.  Said  board  shall
consist of nine  members appointed, subject to the
provisions of section  4-9a,  by  the  Governor as
follows: Three master  barbers,  three persons who
are registered hairdressers  and cosmeticians, and
three public members. The Governor shall appoint a
chairperson from among such members. Members shall
be residents of  this state. No member shall be an
elected official of  a professional association of
barbers, hairdressers or cosmeticians or have been
such  an  official   for   one   year  immediately
preceding his appointment.  Said  board shall meet
at least once  during each calendar quarter and at
such  other  times   as   the   chairperson  deems
necessary. Special meetings  shall  be held at the
request of a majority of the board after notice in
accordance with the  provisions of section 1-21. A
MAJORITY  OF  THE   MEMBERS  OF  THE  BOARD  SHALL
CONSTITUTE  A  QUORUM.   Members   shall   not  be
compensated for their  services.  Any  member  who
fails to attend  three consecutive meetings or who
fails to attend  fifty  per  cent  of all meetings
held during any  calendar  year shall be deemed to
have resigned from office. Minutes of all meetings
shall be recorded  by  the  board. No member shall
participate in the affairs of the board during the
pendency of any  disciplinary  proceedings  by the
board against such  member.  Said  board shall (1)
hear and decide  matters  concerning suspension or
revocation of licensure, (2) adjudicate complaints
filed  against  practitioners   and   (3)   impose
sanctions where appropriate.
    Sec.  16.  Section   20-268   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    There shall be  in  the  Department  of Public
Health a Board of Examiners of Hypertrichologists,
composed of five  members,  one of whom shall be a
doctor of medicine  licensed  to practice medicine
and surgery in  the  state  and a diplomate of the
American Board of  Dermatology,  two of whom shall
be  public  members  and  two  of  whom  shall  be
practicing hypertrichologists who are residents of
this state. The Governor shall appoint the members
of  said  board,  subject  to  the  provisions  of
section 4-9a. Said  board shall meet at least once
during each calendar  quarter  and  at  such other
times as the  chairman  deems  necessary.  Special
meetings  shall  be  held  on  the  request  of  a
majority of the  board  after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE  MEMBERS  OF  THE  BOARD  SHALL  CONSTITUTE  A
QUORUM. Members shall not be compensated for their
services. Any member  who  fails  to  attend three
consecutive meetings or  who fails to attend fifty
per cent of  all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all  meetings  shall be recorded by the
board. No member  shall participate in the affairs
of  the  board   during   the   pendency   of  any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer  of a professional society of
hypertrichologists or have  been  such  an officer
during   the  year   immediately   preceding   his
appointment. Said board  shall (1) hear and decide
matters  concerning suspension  or  revocation  of
licensure,  (2)  adjudicate   complaints   against
practitioners  and  (3)   impose  sanctions  where
appropriate.
    Sec.  17.  Section   4-230   of   the  general
statutes, as amended  by  section  5 of public act
97-238,  is  repealed   and   the   following   is
substituted in lieu thereof:
    As used in sections 4-230 to 4-236, inclusive,
AS AMENDED BY THIS ACT:
    (1) "Cognizant agency"  means  a  state agency
which   is   assigned   by   the   secretary   the
responsibility for implementing  the  requirements
of sections 4-230  to 4-236, inclusive, AS AMENDED
BY THIS ACT;
    (2) "Secretary" means  the  Secretary  of  the
Office of Policy and Management;
    (3)   "State   financial   assistance"   means
assistance  THAT A  NONSTATE  ENTITY  RECEIVES  OR
ADMINISTERS WHICH IS provided by a state agency OR
PASS-THROUGH  ENTITY  in   the   form  of  grants,
contracts,  loans,  loan   guarantees,   property,
cooperative   agreements,   interest    subsidies,
insurance or direct  appropriations,  but does not
include   direct   state    cash   assistance   to
individuals OR PAYMENTS TO A VENDOR;
    (4)  "State  agency"   means  any  department,
board, commission, institution  or other agency of
the state;
    (5) "Generally accepted accounting principles"
has  the  meaning   specified   in  the  generally
accepted [government] auditing standards ISSUED BY
THE  AMERICAN  INSTITUTE   OF   CERTIFIED   PUBLIC
ACCOUNTANTS (AICPA);
    (6)  "Generally accepted  government  auditing
standards" (GAGAS) means  the  GENERALLY  ACCEPTED
GOVERNMENT AUDITING standards  [for  the  audit of
governmental organizations, programs,  activities,
and functions,] issued  by the Comptroller General
of  the  United  States  THAT  ARE  APPLICABLE  TO
FINANCIAL AUDITS;
    (7)  "Independent auditor"  means  [:  (A)  An
external  state,  municipal   or   audited  agency
auditor  who  meets   the  independence  standards
included in generally accepted government auditing
standards  or (B)]  a  public  accountant  who  IS
LICENSED TO PRACTICE IN THE STATE AND meets [such]
THE independence standards  INCLUDED  IN GENERALLY
ACCEPTED GOVERNMENT AUDITING STANDARDS;
    (8) "Internal controls"  means  [the  plan  of
organization and methods and procedures adopted by
management to ensure  that:  (A)  Resource  use is
consistent with laws,  regulations  and  policies,
(B) resources are  safeguarded against waste, loss
and misuse and  (C)  reliable  data  are obtained,
maintained  and fairly  disclosed  in  reports]  A
PROCESS,  EFFECTED  BY   AN   ENTITY'S   BOARD  OF
DIRECTORS,   MANAGEMENT   AND   OTHER   PERSONNEL,
DESIGNED TO PROVIDE REASONABLE ASSURANCE REGARDING
THE ACHIEVEMENT OF  OBJECTIVES IN: (A) RELIABILITY
OF  FINANCIAL  REPORTING,  (B)  EFFECTIVENESS  AND
EFFICIENCY OF OPERATIONS  AND  (C) COMPLIANCE WITH
APPLICABLE LAWS AND REGULATIONS;
    (9) "Municipality" means  a town, consolidated
town and city, consolidated town and borough, city
or borough, including  a  local board of education
as described in subsection (c) of section 7-392;
    (10) "Audited agency"  means  a fire district,
fire and sewer  district,  sewer district or other
municipal utility, the  Metropolitan  District  of
Hartford County, a  regional board of education, a
regional  planning  agency,  any  other  political
subdivision of similar  character which is created
or any other  agency  created  or  designated by a
municipality to act  for  such  municipality whose
average annual receipts  from  all  sources exceed
two  hundred  thousand   dollars  or  any  tourism
district  established  under  section  32-302,  AS
AMENDED;
    (11) "Nonprofit agency" means any organization
that is not  a  for-profit  business  and provides
services contracted for  by  (A)  the  state  [, a
municipality  or  an  audited  agency]  OR  (B)  A
NONSTATE ENTITY. [to  its citizens.] It also means
private  institutions  of  higher  learning  which
receive state financial assistance;
    (12) "Major state  [assistance] program" means
any  program, EXCLUDING  AN  EXEMPT  PROGRAM,  for
which  total  expenditures   of   state  financial
assistance by a  [municipality,  audited agency or
nonprofit  agency]  NONSTATE   ENTITY  during  the
applicable  year exceed  the  larger  of  (A)  one
hundred thousand dollars  or  (B)  one per cent of
the total amount  of  state  financial  assistance
expended,  EXCLUDING  EXPENDITURES  OF  AN  EXEMPT
PROGRAM by the  [municipality,  audited  agency or
nonprofit  agency]  NONSTATE   ENTITY  during  the
audited year;
    (13) "Public accountant"  means  an individual
who meets the  [qualification]  standards included
in   generally   accepted    government   auditing
standards  for  personnel   performing  government
audits AND THE LICENSING REQUIREMENTS OF THE STATE
BOARD OF ACCOUNTANCY;
    (14)  "Subrecipient"  means   [any  person  or
governmental]  A  NONSTATE  entity  that  receives
state    financial    assistance     [through    a
municipality, audited agency  or nonprofit agency]
FROM A PASS-THROUGH  ENTITY,  but does not include
an individual who receives such assistance;
    (15)  "TOURISM  DISTRICT"   MEANS  A  DISTRICT
ESTABLISHED UNDER SECTION 32-302, AS AMENDED;
    (16) "NONSTATE ENTITY"  MEANS  A MUNICIPALITY,
TOURISM  DISTRICT,  AUDITED  AGENCY  OR  NONPROFIT
AGENCY;
    (17) "PASS-THROUGH ENTITY"  MEANS  A  NONSTATE
ENTITY THAT PROVIDES STATE FINANCIAL ASSISTANCE TO
A SUBRECIPIENT;
    (18) "PROGRAM-SPECIFIC AUDIT"  MEANS  AN AUDIT
OF A SINGLE  STATE PROGRAM CONDUCTED IN ACCORDANCE
WITH THE REGULATIONS  ADOPTED UNDER SECTION 4-236,
AS AMENDED;
    (19) "EXPENDED" AND  "EXPENDITURES"  HAVE  THE
MEANINGS ATTRIBUTED TO  THOSE  TERMS  IN GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES,  EXCEPT  THAT  (A)
STATE FINANCIAL ASSISTANCE  RECEIVED  WHO DOES NOT
SPECIFY A REQUIRED  USE  SHALL  BE  ASSUMED  TO BE
FULLY EXPENDED IN  THE  FISCAL YEAR OF RECEIPT AND
(B)  EXEMPT  PROGRAMS   SHALL  BE  ASSUMED  TO  BE
EXPENDED  IN  THE   FISCAL  YEAR  THAT  THE  STATE
FINANCIAL ASSISTANCE IS RECEIVED;
    (20)  "EXEMPT  PROGRAM"   MEANS   ANY  OF  THE
FOLLOWING   PROGRAMS:  EDUCATION   COST   SHARING,
PURSUANT   TO   SECTIONS   10-262f   TO   10-262j,
INCLUSIVE;  PUBLIC  AND   NONPUBLIC  SCHOOL  PUPIL
TRANSPORTATION, PURSUANT TO SECTIONS 10-54, 10-97,
10-266m, AS AMENDED,  10-273a,  10-277 AND 10-281;
SPECIAL EDUCATION, EXCESS  COSTS EQUITY AND EXCESS
COSTS STUDENT-BASED, PURSUANT TO SUBSECTION (e) OF
SECTION 10-76d, SUBSECTIONS  (a),  (b)  AND (c) OF
SECTION 10-76g AND SECTION 10-253; SCHOOL BUILDING
GRANTS -PRINCIPAL AND  INTEREST  SUBSIDY, PURSUANT
TO CHAPTER 173  AND  SECTION  10-264h, AS AMENDED;
AND SCHOOL CONSTRUCTION  GRANTS PURSUANT TO PUBLIC
ACT 97-265 AND  PUBLIC  ACT  97-11  OF THE JUNE 18
SPECIAL SESSION; AND
    (21)  "VENDOR" MEANS  A  DEALER,  DISTRIBUTOR,
MERCHANT  OR  OTHER   SELLER  PROVIDING  GOODS  OR
SERVICES THAT ARE  REQUIRED  FOR  THE CONDUCT OF A
STATE PROGRAM. SUCH  GOODS  OR SERVICES MAY BE FOR
AN  ORGANIZATION'S OWN  USE  OR  FOR  THE  USE  OF
BENEFICIARIES OF THE STATE PROGRAM.
    Sec. 18. Section 4-231 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) (1) [Each  municipality and audited agency
which receives a  total amount of combined federal
and state financial  assistance  equal  to  or  in
excess of one  hundred  thousand  dollars  in  any
fiscal  year  of   such   municipality  or  agency
beginning on or  after July 1, 1992, shall have an
audit made for each such fiscal year in accordance
with the requirements  of sections 4-230 to 4-236,
inclusive, and the requirements of the regulations
adopted pursuant to  section 4-236. Each nonprofit
agency subject to  the  federal  Single Audit Act,
Public Law 98-502, shall have the option of having
an  audit  made  for  each  such  fiscal  year  in
accordance with the requirements of sections 4-230
to 4-236, inclusive,  and  the requirements of the
regulations  adopted pursuant  to  section  4-236.
Each nonprofit agency  which is not subject to the
federal Single Audit  Act,  Public Law 98-502, and
which receives such amount of combined federal and
state financial assistance  in  any fiscal year of
the nonprofit agency beginning on or after July 1,
1994, shall have  an audit made for each such year
in accordance with  the  requirements  of sections
4-230 to 4-236, inclusive, and the requirements of
the regulations adopted pursuant to section 4-236.
Each nonprofit agency  which  is  subject  to  the
federal Single Audit  Act,  Public Law 98-502, and
which receives such amount of combined federal and
state financial assistance  in  any fiscal year of
the nonprofit agency beginning on or after July 1,
1994, shall have  an audit made for each such year
in accordance with  the  requirements  of sections
4-230 to 4-236, inclusive, and the requirements of
the  regulations  adopted   pursuant   to  section
4-236.] EACH NONSTATE ENTITY WHICH EXPENDS A TOTAL
AMOUNT OF STATE  FINANCIAL  ASSISTANCE EQUAL TO OR
IN EXCESS OF  ONE  HUNDRED THOUSAND DOLLARS IN ANY
FISCAL YEAR OF  SUCH  NONSTATE ENTITY BEGINNING ON
OR AFTER JULY  1, 1998, SHALL HAVE EITHER A SINGLE
AUDIT OR A  PROGRAM-SPECIFIC  AUDIT  MADE FOR SUCH
FISCAL YEAR, IN  ACCORDANCE WITH THE PROVISIONS OF
SUBDIVISION (2) OR  (3) OF THIS SUBSECTION AND THE
REQUIREMENTS OF REGULATIONS  ADOPTED  PURSUANT  TO
SECTION 4-236, AS  AMENDED  BY  SECTION 23 OF THIS
ACT. IF A  PROVISION OF THE GENERAL STATUTES OR AN
ADMINISTRATIVE   RULE,   REGULATION,    GUIDELINE,
STANDARD OR POLICY,  WHICH IS EFFECTIVE ON JULY 1,
1992, REQUIRES A  NONSTATE  ENTITY  TO  CONDUCT  A
BIENNIAL  AUDIT, THE  AUDIT  REQUIRED  UNDER  THIS
SECTION SHALL BE  CONDUCTED  ON  THE SAME BIENNIAL
BASIS AND SHALL  COVER  BOTH YEARS OF THE BIENNIAL
PERIOD.
    (2)  [Each  municipality  and  audited  agency
which receives a  total amount of combined federal
and state financial  assistance  equal  to  or  in
excess of twenty-five  thousand  dollars  but less
than one hundred  thousand  dollars  in any fiscal
year of such  municipality  or agency beginning on
or after July  1,  1992,  shall: (A) Have an audit
made for such  fiscal  year in accordance with the
requirements   of   sections   4-230   to   4-236,
inclusive, and the requirements of the regulations
adopted pursuant to  section  4-236  or (B) comply
with   any  applicable   requirements   concerning
financial  or  financial   and  compliance  audits
contained in the  general statutes and regulations
governing   programs  under   which   such   state
financial   assistance   is   provided   to   such
municipality, audited agency  or nonprofit agency.
Each  nonprofit  agency  which  receives  such  an
amount of combined  federal  and  state  financial
assistance in any  fiscal  year  of  the nonprofit
agency beginning on  or  after July 1, 1994, shall
have such an  audit  made  for such fiscal year or
shall comply with any such applicable requirements
concerning financial or  financial  and compliance
audits.] IF THE  TOTAL  AMOUNT  OF STATE FINANCIAL
ASSISTANCE EXPENDED IN ANY SUCH FISCAL YEAR IS FOR
A SINGLE PROGRAM,  SUCH  NONSTATE ENTITY MAY ELECT
TO HAVE A PROGRAM-SPECIFIC AUDIT MADE IN LIEU OF A
SINGLE AUDIT.
    (3)  [Notwithstanding  any  provision  of  the
general  statutes,  each   municipality,   audited
agency and nonprofit  agency that receives a total
amount of combined  federal  and  state  financial
assistance which is less than twenty-five thousand
dollars in any fiscal year of such municipality or
agency shall be  exempt  for such fiscal year from
compliance   with  any   applicable   requirements
concerning financial or  financial  and compliance
audits  contained  in   the  general  statutes  or
regulations adopted thereunder, governing programs
under which such  financial assistance is provided
to such municipality  or  agency.  Nothing  herein
shall exempt a  municipality,  audited  agency  or
nonprofit   agency  from   compliance   with   any
provision of the  general  statutes or regulations
adopted thereunder, that requires the municipality
or agency to  maintain  records  concerning  state
financial assistance provided  to the municipality
or agency or  that  permits  a state agency or the
Auditors  of  Public   Accounts   access  to  such
records.] IF THE  TOTAL  AMOUNT OF STATE FINANCIAL
ASSISTANCE EXPENDED IN ANY SUCH FISCAL YEAR IS FOR
MORE THAN ONE  PROGRAM,  SUCH  ENTITY SHALL HAVE A
SINGLE AUDIT MADE FOR SUCH FISCAL YEAR.
    (b)  [For the  purposes  of  this  section,  a
municipality, audited agency  or  nonprofit agency
shall  be  deemed   to   receive  state  financial
assistance  whether such  assistance  is  received
directly from a state agency or indirectly through
another municipality, audited  agency or nonprofit
agency.]  NOTWITHSTANDING  ANY  PROVISION  OF  THE
GENERAL STATUTES OR  ANY  REGULATION ADOPTED UNDER
ANY  PROVISION  OF   THE  GENERAL  STATUTES,  EACH
NONSTATE ENTITY THAT EXPENDS TOTAL STATE FINANCIAL
ASSISTANCE  OF  LESS  THAN  ONE  HUNDRED  THOUSAND
DOLLARS IN ANY FISCAL YEAR OF SUCH NONSTATE ENTITY
BEGINNING ON OR  AFTER  JULY  1,  1998,  SHALL  BE
EXEMPT WITH RESPECT  TO  SUCH  YEAR FROM COMPLYING
WITH  ANY  STATUTORY  OR  REGULATORY  REQUIREMENTS
CONCERNING FINANCIAL OR  FINANCIAL  AND COMPLIANCE
AUDITS THAT WOULD OTHERWISE BE APPLICABLE.
    (c) [The audits  required by subsection (a) of
this section shall be conducted annually, unless a
provision    of   the    general    statutes    or
administrative  rules,  regulations,   guidelines,
standards or policies,  in effect on July 1, 1992,
requires  the  municipality,   audited  agency  or
nonprofit   agency   to    conduct   such   audits
biennially. Biennial audits shall cover both years
within the biennial  period.] NO PROVISION OF THIS
SECTION  SHALL BE  DEEMED  TO  EXEMPT  A  NONSTATE
ENTITY  FROM  COMPLYING   WITH  ANY  STATUTORY  OR
REGULATORY PROVISION REQUIRING  THE  ENTITY TO (1)
MAINTAIN   RECORDS  CONCERNING   STATE   FINANCIAL
ASSISTANCE OR (2)  PROVIDE  ACCESS TO SUCH RECORDS
TO A STATE AGENCY.
    Sec. 19. Section 4-232 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a)  Each [municipality,  audited  agency  and
nonprofit  agency]  NONSTATE   ENTITY   which   is
required to be  audited pursuant to sections 4-230
to 4-236, inclusive, AS AMENDED BY THIS ACT, shall
designate an independent  auditor  to conduct such
audit. Not later  than  thirty days before the end
of  the fiscal  period  for  which  the  audit  is
required, the [municipality  or  agency]  NONSTATE
ENTITY shall file  the  name  of such auditor with
the cognizant agency.  [for  the  municipality  or
agency, for its  approval.  No such approval shall
be required if the auditor conducted the audit for
the  municipality  or  agency  for  the  preceding
fiscal  year,  unless  the  cognizant  agency  has
notified the municipality  or agency that it would
not approve the  auditor.]  If  a [municipality or
agency] NONSTATE ENTITY fails to make such filing,
the cognizant agency  may designate an independent
auditor to conduct the audit.
    (b) (1) UPON  THE  COMPLETION  OF  THE  AUDIT,
PURSUANT TO SECTIONS 4-230 TO 4-236, INCLUSIVE, AS
AMENDED BY THIS  ACT,  THE  NONSTATE  ENTITY SHALL
FILE COPIES OF THE AUDIT REPORT WITH STATE GRANTOR
AGENCIES, THE COGNIZANT  AGENCY AND IF APPLICABLE,
PASS-THROUGH  ENTITIES. ONCE  FILED,  SUCH  REPORT
SHALL BE MADE AVAILABLE BY THE NONSTATE ENTITY FOR
PUBLIC INSPECTION. COPIES  OF  THE REPORT SHALL BE
FILED NOT LATER  THAN THIRTY DAYS AFTER COMPLETION
OF SUCH REPORT,  IF  POSSIBLE,  BUT NOT LATER THAN
SIX MONTHS AFTER  THE END OF THE AUDIT PERIOD. THE
COGNIZANT AGENCY MAY  GRANT  AN  EXTENSION  OF NOT
MORE THAN THIRTY  DAYS,  IF THE AUDITOR MAKING THE
AUDIT  AND THE  CHIEF  EXECUTIVE  OFFICER  OF  THE
NONSTATE  ENTITY  JOINTLY   SUBMIT  A  REQUEST  IN
WRITING  TO  THE   COGNIZANT  AGENCY  STATING  THE
REASONS FOR SUCH  EXTENSION  AT  LEAST THIRTY DAYS
PRIOR TO THE  END OF SUCH SIX-MONTH PERIOD. IF THE
REASON FOR THE  EXTENSION  RELATES TO DEFICIENCIES
IN THE ACCOUNTING  SYSTEM  OF THE NONSTATE ENTITY,
THE REQUEST SHALL  BE  ACCOMPANIED BY A CORRECTIVE
ACTION PLAN. THE  COGNIZANT  AGENCY  MAY,  AFTER A
HEARING WITH THE  AUDITOR  AND  OFFICIALS  OF  THE
NONSTATE ENTITY, GRANT  AN ADDITIONAL EXTENSION IF
CONDITIONS WARRANT.
    (2) ANY NONSTATE  ENTITY,  OR  AUDITOR OF SUCH
NONSTATE ENTITY, WHICH  FAILS  TO  HAVE  THE AUDIT
REPORT FILED ON ITS BEHALF WITHIN SIX MONTHS AFTER
THE END OF  THE  FISCAL  YEAR  OR  WITHIN THE TIME
GRANTED BY THE  COGNIZANT  AGENCY MAY BE ASSESSED,
BY THE SECRETARY  OF  THE  OFFICE  OF  POLICY  AND
MANAGEMENT, A CIVIL  PENALTY  OF NOT LESS THAN ONE
THOUSAND DOLLARS BUT  NOT  MORE  THAN TEN THOUSAND
DOLLARS.  IN ADDITION  TO,  OR  IN  LIEU  OF  SUCH
PENALTY,  THE  COGNIZANT   AGENCY  MAY  ASSIGN  AN
AUDITOR TO PERFORM  THE  AUDIT  OF  SUCH  NONSTATE
ENTITY. IN SUCH CASE, THE NONSTATE ENTITY SHALL BE
RESPONSIBLE FOR THE  COSTS  RELATED  TO THE AUDIT.
THE  SECRETARY MAY,  UPON  RECEIPT  OF  A  WRITTEN
REQUEST FROM AN OFFICIAL OF THE NONSTATE ENTITY OR
ITS  AUDITOR, WAIVE  ALL  SUCH  PENALTIES  IF  THE
SECRETARY  DETERMINES THAT  THERE  APPEARS  TO  BE
REASONABLE  CAUSE  FOR   THE   ENTITY  NOT  HAVING
COMPLETED OR PROVIDED THE REQUIRED AUDIT REPORT.
    Sec. 20. Section 4-233 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) Each audit  required  by sections 4-230 to
4-236, inclusive, AS AMENDED BY THIS ACT, shall:
    (1) Be conducted  in accordance with generally
accepted  government  auditing  standards,  except
that,  for the  purposes  of  said  sections  such
standards  shall  not   be  construed  to  require
economy  and efficiency  audits,  program  results
audits, or program evaluations; and
    (2)   [Cover]   EXCEPT    IN   THE   CASE   OF
PROGRAM-SPECIFIC   AUDITS,   COVER    the   entire
operations, including financial operations, of the
[municipality, audited agency or nonprofit agency]
NONSTATE  ENTITY,  except   that  such  audit  may
exclude public hospitals.
    (b) Each such audit shall determine and report
whether:  (1)  The  financial  statements  of  the
[municipality  or  agency   present   fairly   its
financial  position  and   the   results   of  its
financial  operations  in   accordance]   NONSTATE
ENTITY  ARE  PRESENTED   FAIRLY  IN  ALL  MATERIAL
RESPECTS  IN CONFORMITY  with  generally  accepted
accounting principles; [(2)  the  municipality  or
agency has complied with laws and regulations that
may have a  material  effect  upon  the  financial
statements; (3) the  municipality  or  agency  has
internal  control systems  to  provide  reasonable
assurance  that it  is  managing  state  financial
assistance programs in  compliance with applicable
laws  and  regulations;]   (2)   THE  SCHEDULE  OF
EXPENDITURES OF STATE  FINANCIAL ASSISTANCE OF THE
NONSTATE  ENTITY  IS   PRESENTED   FAIRLY  IN  ALL
MATERIAL RESPECTS IN  RELATION  TO  THE  FINANCIAL
STATEMENTS TAKEN AS  A  WHOLE;  (3) IN ADDITION TO
THE REQUIREMENTS OF  GENERALLY ACCEPTED GOVERNMENT
AUDITING  STANDARDS,  THE  AUDITOR  HAS  PERFORMED
PROCEDURES TO OBTAIN  AN UNDERSTANDING OF INTERNAL
CONTROL OVER STATE PROGRAMS SUFFICIENT TO (A) PLAN
THE AUDIT TO  SUPPORT  A  LOW  ASSESSED  LEVEL  OF
CONTROL RISK FOR  MAJOR  STATE  PROGRAMS, (B) PLAN
THE TESTING OF  INTERNAL  CONTROL OVER MAJOR STATE
PROGRAMS  TO  SUPPORT  A  LOW  ASSESSED  LEVEL  OF
CONTROL RISK FOR  THE  ASSERTIONS  RELEVANT TO THE
COMPLIANCE  REQUIREMENT  FOR   EACH   MAJOR  STATE
PROGRAM,  AND  (C)  PERFORM  TESTING  OF  INTERNAL
CONTROLS; and (4)  the  [municipality  or  agency]
NONSTATE  ENTITY has  complied  with  laws,  [and]
regulations AND GRANT  OR CONTRACT PROVISIONS that
may  have  a   material   effect  upon  INDIVIDUAL
COMPLIANCE  REQUIREMENTS  FOR   each  major  state
[assistance]  program.  In   complying   with  the
requirements   of   subdivision    (4)   of   this
subsection, the independent  auditor  shall select
and test a  representative  number of transactions
from each major  state  [assistance] program. Each
audit report shall  identify  which  programs were
tested for compliance.
    (c)  (1)  [Transactions  selected  from  state
assistance  programs,  other   than   major  state
assistance   programs,   shall   be   tested   for
compliance with state  laws  and  regulations that
apply  to  such  transactions.  Any  noncompliance
found  in such  transactions  by  the  independent
auditor in making  determinations required by this
subsection shall be  reported  in the audit.] WHEN
THE  TOTAL EXPENDITURES  OF  A  NONSTATE  ENTITY'S
MAJOR STATE PROGRAMS  ARE LESS THAN FIFTY PER CENT
OF SUCH NONSTATE  ENTITY'S  TOTAL  EXPENDITURES OF
STATE  FINANCIAL  ASSISTANCE,   EXCLUDING   EXEMPT
PROGRAM  EXPENDITURES,  THE   INDEPENDENT  AUDITOR
SHALL SELECT AND TEST ADDITIONAL PROGRAMS AS MAJOR
STATE PROGRAMS AS  MAY  BE  NECESSARY  TO  ACHIEVE
AUDIT COVERAGE OF  AT  LEAST FIFTY PER CENT OF THE
NONSTATE  ENTITY'S  TOTAL  EXPENDITURES  OF  STATE
FINANCIAL  ASSISTANCE,  EXCLUDING  EXEMPT  PROGRAM
EXPENDITURES. THE PROVISIONS  OF  THIS  SUBSECTION
SHALL  BE  CARRIED  OUT  IN  ACCORDANCE  WITH  THE
REGULATIONS ADOPTED PURSUANT  TO SECTION 4-236, AS
AMENDED BY SECTION  23  OF  THIS ACT, AND SHALL BE
SUBJECT TO THE  PROVISIONS  OF  SUBDIVISION (2) OF
THIS SUBSECTION.
    (2)  IN  ACHIEVING   THE   AUDIT  COVERAGE  IN
ACCORDANCE   WITH   SUBDIVISION    (1)   OF   THIS
SUBSECTION, NO MORE  THAN  TWO PROGRAMS WHICH EACH
HAVE TOTAL STATE FINANCIAL ASSISTANCE EXPENDITURES
OF TWENTY-FIVE THOUSAND  DOLLARS  OR  MORE BUT NOT
MORE THAN ONE  HUNDRED  THOUSAND  DOLLARS SHALL BE
TESTED, IF SUCH PROGRAMS ARE REQUIRED TO BE TESTED
TO ACHIEVE THE  AUDIT  COVERAGE OF SUBDIVISION (1)
OF THIS SUBSECTION.
    [(d) The number  of  transactions selected and
tested  under subsections  (b)  and  (c)  of  this
section,  the  selection   and   testing  of  such
transactions, and the  determinations  required by
said   subsections   shall   be   based   on   the
professional judgment of the independent auditor.
    (e) (1) Each  municipality, audited agency and
nonprofit agency which  is  subject  to  the audit
requirements   of   sections   4-230   to   4-236,
inclusive, receives state financial assistance and
provides twenty-five thousand  dollars  or more of
such  assistance  in   any   fiscal   year   to  a
subrecipient  shall:  (A)   If   the  subrecipient
conducts  an  audit   in   accordance   with   the
requirements of said  sections,  review such audit
and ensure that  prompt and appropriate corrective
action  is  taken   on   instances   of   material
noncompliance with applicable laws and regulations
with  respect  to   state   financial   assistance
provided to the  subrecipient  by the municipality
or agency; or  (B)  if  the  subrecipient does not
conduct   an  audit   in   accordance   with   the
requirements  of  said   sections:  (i)  Determine
whether  the  expenditures   of   state  financial
assistance provided to  the  subrecipient  by  the
municipality  or agency  are  in  accordance  with
applicable laws and  regulations  and  (ii) ensure
that prompt and  appropriate  corrective action is
taken in instances  of material noncompliance with
applicable laws and  regulations  with  respect to
such state financial assistance.
    (2) Each such municipality, audited agency and
nonprofit agency shall  require  each subrecipient
of state assistance  through  such municipality or
agency to permit, as a condition of receiving such
assistance,  the  independent   auditor   of   the
municipality or agency  to have such access to the
subrecipient's records and financial statements as
may be necessary for the municipality or agency to
comply with sections 4-230 to 4-236, inclusive.
    (f) The report  made  on  any  audit conducted
pursuant to this section shall, within thirty days
after completion of  such report but no later than
six months after  the  end  of  the  audit period,
unless a longer  period  is  agreed  to  with  the
cognizant   agency,   be    transmitted   to   the
appropriate state officials  and made available by
the  municipality,  audited  agency  or  nonprofit
agency for public inspection.
    (g) If an  audit  conducted  pursuant  to this
section  finds  any  material  noncompliance  with
applicable laws and  regulations  by,  or material
weakness  in  the   internal   controls   of,  the
municipality, audited agency  or  nonprofit agency
with  respect  to   the   matters   described   in
subsection (b) of  this  section, the municipality
or  agency  shall   submit  to  appropriate  state
officials  a  plan   for   corrective   action  to
eliminate such material  noncompliance or weakness
or  a  statement   describing   the   reasons  why
corrective action is not necessary.]
    (d) IF AN  AUDIT  CONDUCTED  PURSUANT  TO THIS
SECTION  FINDS ANY  MATERIAL  NONCOMPLIANCE  BY  A
NONSTATE ENTITY WITH  APPLICABLE LAWS, REGULATIONS
AND GRANT OR  CONTRACT  PROVISIONS,  OR  FINDS ANY
REPORTABLE  CONDITION OR  MATERIAL  WEAKNESS  WITH
RESPECT TO THE  INTERNAL  CONTROLS OF THE NONSTATE
ENTITY  CONCERNING  THE   MATTERS   DESCRIBED   IN
SUBSECTION  (b)  OF  THIS  SECTION,  THE  NONSTATE
ENTITY SHALL SUBMIT TO APPROPRIATE STATE OFFICIALS
A PLAN FOR  CORRECTIVE  ACTION  TO  ELIMINATE SUCH
MATERIAL  NONCOMPLIANCE, REPORTABLE  CONDITION  OR
MATERIAL WEAKNESS.
    Sec. 21. Section 4-234 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a)  An audit  conducted  in  accordance  with
sections 4-230 to  4-236, inclusive, AS AMENDED BY
THIS ACT, shall  be  in  lieu  of any financial or
financial and compliance  audit of [an individual]
state  FINANCIAL  assistance   [program]  PROGRAMS
which a [municipality, audited agency or nonprofit
agency] NONSTATE ENTITY  is  required  to  conduct
under any other  state  law  or regulation. To the
extent that such  audit  provides  a  state agency
with the information  it requires to carry out its
responsibilities under state law or regulations, a
state  agency  shall   rely   upon  and  use  such
information and plan  and  conduct  its own audits
accordingly in order  to  avoid  a  duplication of
effort.
    (b)   Notwithstanding   the    provisions   of
subsection (a) of  this  section,  a  state agency
shall conduct any additional audits which it deems
necessary to carry  out its responsibilities, upon
a written determination by the executive authority
of  the  agency,   based  on  evidence  of  fiscal
irregularities  or noncompliance  with  applicable
laws and regulations,  and  after  consulting with
the cognizant agency.  The  provisions of sections
4-230 to 4-236, inclusive, AS AMENDED BY THIS ACT,
do  not  authorize   a  cognizant  agency  or  any
[municipality, audited agency or nonprofit agency]
NONSTATE ENTITY, or  any  subrecipient thereof, to
constrain, in any  manner,  such state agency from
carrying out such  additional  audits.  As used in
this  subsection  and   subsection   (d)  of  this
section, "executive authority"  shall be construed
as defined in section 4-37e.
    (c) The provisions of sections 4-230 to 4-236,
inclusive, AS AMENDED  BY  THIS  ACT,  do  not (1)
limit the authority  of state agencies to conduct,
or enter into contracts for the conduct of, audits
and  evaluations  of  state  financial  assistance
programs or (2)  limit  the authority of any state
agency auditor or other state audit official.
    (d) A state  agency that performs or contracts
for audits in addition to the audits conducted for
recipients of state  financial assistance pursuant
to sections 4-230  to 4-236, inclusive, AS AMENDED
BY  THIS  ACT,   shall,   consistent   with  other
applicable  law,  pay   for   the   cost  of  such
additional  audits.  Such  additional  audits  may
include, but shall  not be limited to, economy and
efficiency  audits,  program  results  audits  and
program evaluations. The  state  agency  shall use
the results of the single audit as a basis for any
additional requirements, and  shall  not duplicate
the single audit unless the executive authority of
such  agency  determines   in  writing  that  such
duplication is necessary.
    [(e) Audits of  recipients  of state financial
assistance which are required pursuant to sections
4-230 to 4-236,  inclusive,  shall be conducted in
conjunction with the  federal  Single  Audit  Act,
Public Law 98-502, as from time to time amended.]
    Sec. 22. Section 4-235 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) The secretary  shall  designate  cognizant
agencies for audits conducted pursuant to sections
4-230 to 4-236, inclusive, AS AMENDED BY THIS ACT.
    (b)   A  cognizant   agency   shall:   [,   in
conjunction  with  the  federal  cognizant  agency
designated pursuant to  the  federal  Single Audit
Act, Public Law  98-502,  as  from  time  to  time
amended, if one  is  involved:] (1) Ensure THROUGH
COORDINATION WITH STATE  AGENCIES, that audits are
made in a timely manner and in accordance with the
requirements   of   sections   4-230   to   4-236,
inclusive, AS AMENDED BY THIS ACT; (2) ensure that
[the audit reports  and]  corrective  action plans
made pursuant to  section 4-233 are transmitted to
the  appropriate  state  officials;  and  (3)  (A)
coordinate, to the extent practicable, audits done
by or under  contract with state agencies that are
in addition to  the  audits  conducted pursuant to
sections 4-230 to  4-236, inclusive, AS AMENDED BY
THIS ACT; and  (B)  ensure  that  such  additional
audits build upon the audits conducted pursuant to
said sections.
    (c)  (1) EACH  PASS-THROUGH  ENTITY  WHICH  IS
SUBJECT  TO THE  AUDIT  REQUIREMENTS  OF  SECTIONS
4-230 TO 4-236, INCLUSIVE, AS AMENDED BY THIS ACT,
SHALL:
    (A)  ADVISE  SUBRECIPIENTS   OF   REQUIREMENTS
IMPOSED ON THEM  BY  STATE  LAWS, REGULATIONS, AND
THE PROVISIONS OF  CONTRACTS  OR GRANT AGREEMENTS,
AND ANY SUPPLEMENTAL  REQUIREMENTS  IMPOSED BY THE
PASS-THROUGH ENTITY;
    (B) IF THE SUBRECIPIENT IS SUBJECT TO AN AUDIT
IN  ACCORDANCE  WITH   THE  REQUIREMENTS  OF  SAID
SECTIONS 4-230 TO  4-236,  INCLUSIVE,  REVIEW SUCH
AUDIT  AND  ENSURE  THAT  PROMPT  AND  APPROPRIATE
CORRECTIVE  ACTION  IS   TAKEN   WITH  RESPECT  TO
MATERIAL FINDINGS OF NONCOMPLIANCE WITH INDIVIDUAL
COMPLIANCE REQUIREMENTS OR  REPORTABLE  CONDITIONS
OR  MATERIAL  WEAKNESSES   IN   INTERNAL  CONTROLS
PERTAINING TO STATE  FINANCIAL ASSISTANCE PROVIDED
TO THE SUBRECIPIENT BY THE PASS-THROUGH ENTITY; OR
    (C) IF THE  SUBRECIPIENT  IS NOT SUBJECT TO AN
AUDIT IN ACCORDANCE  WITH THE REQUIREMENTS OF SAID
SECTIONS 4-230 TO  4-236,  INCLUSIVE,  MONITOR THE
ACTIVITIES OF SUBRECIPIENTS AS NECESSARY TO ENSURE
THAT  STATE  FINANCIAL   ASSISTANCE  IS  USED  FOR
AUTHORIZED  PURPOSES  IN   COMPLIANCE  WITH  LAWS,
REGULATIONS, AND THE  PROVISIONS  OF  CONTRACTS OR
GRANT AGREEMENTS.
    (2) EACH PASS-THROUGH  ENTITY,  AS A CONDITION
OF  RECEIVING STATE  FINANCIAL  ASSISTANCE,  SHALL
REQUIRE EACH OF  ITS  SUBRECIPIENTS  TO PERMIT THE
INDEPENDENT AUDITOR OF  THE PASS-THROUGH ENTITY TO
HAVE SUCH ACCESS TO THE SUBRECIPIENT'S RECORDS AND
FINANCIAL STATEMENTS AS  MAY  BE NECESSARY FOR THE
PASS-THROUGH ENTITY TO  COMPLY WITH SECTIONS 4-230
TO 4-236, INCLUSIVE, AS AMENDED BY THIS ACT.
    Sec. 23. Section 4-236 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) The secretary  shall, in consultation with
the Auditors of Public Accounts, appropriate state
[, municipal and  audited  agency]  officials  and
representatives of [nonprofit  agencies]  NONSTATE
ENTITIES,  adopt  regulations   pursuant   to  the
provisions  of  chapter   54   to   implement  the
provisions of sections  4-230 to 4-236, inclusive,
AS AMENDED BY  THIS  ACT.  [The  regulations shall
include criteria for  determining  the appropriate
charges to programs  of state financial assistance
for  the  cost  of  audits.  Such  criteria  shall
prohibit  a  municipality,   audited   agency   or
nonprofit agency which  is  required to conduct an
audit  pursuant  to   sections   4-230  to  4-236,
inclusive, from charging  to  any such program (1)
the  cost  of   any  financial  or  financial  and
compliance  audit  which   is   not  conducted  in
accordance with the  provisions  of  said sections
and (2) more than a reasonably proportionate share
of the cost of any such audit that is conducted in
accordance with the  provisions  of said sections.
Such  criteria  shall   not,  in  the  absence  of
documentation demonstrating a  higher actual cost,
permit (A) the ratio of (i) the total charges by a
municipality, audited agency  or  nonprofit agency
to state financial  assistance  programs  for  the
cost of audits performed pursuant to said sections
to (ii) the  total  cost of such audits, to exceed
(B)  the  ratio   of  (i)  total  state  financial
assistance expended by such municipality or agency
during the applicable fiscal year or years to (ii)
such municipality's or agency's total expenditures
during such fiscal year or years.]
    (b)   The   secretary    shall    also   adopt
regulations, in accordance  with the provisions of
chapter 54, concerning the recovery of grant funds
based on audit  findings,  as  the secretary deems
appropriate for any  grantee  which  is found as a
result of an  audit  to  not be in compliance with
the  standards  established  pursuant  to  section
4-233.
    Sec. 24. This  act  shall take effect from its
passage  and  shall   be   applicable   to  audits
conducted for fiscal years commencing on and after
July  1, 1998,  except  that  sections  1  to  16,
inclusive, shall take effect July 1, 1998.

Approved June 4, 1998