S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10246
 
                           I N  A S S E M B L Y
 
                               May 13, 2022
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. K. Brown) --
   read once and referred to the Committee on Governmental Operations
 
 AN  ACT  to amend the cannabis law, the state finance law and the execu-
   tive law, in relation to  requiring  the  state  comptroller  and  the
   attorney  general to conduct an annual audit of the office of cannabis
   management

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The cannabis law is amended by adding a new section 140 to
 read as follows:
   § 140. INDEPENDENT AUDIT OF THE OFFICE OF CANNABIS MANAGEMENT.  1.  AT
 LEAST  ONCE  EVERY  YEAR,  THE COMPTROLLER, THE ATTORNEY GENERAL AND THE
 INDEPENDENT CERTIFIED  PUBLIC  ACCOUNTANTS  SELECTED  PURSUANT  TO  THIS
 SECTION  SHALL  CONDUCT AUDITS OF THE INTERNAL CONTROLS OF THE OFFICE OF
 CANNABIS MANAGEMENT. SUCH AUDITS SHALL BE PERFORMED IN  ACCORDANCE  WITH
 GENERALLY  ACCEPTED  GOVERNMENT  AUDITING  STANDARDS AND SHALL INCLUDE A
 REPORT ON WHETHER THE OFFICE'S INTERNAL  CONTROLS  ARE  ESTABLISHED  AND
 FUNCTIONING  IN  A  MANNER  THAT PROVIDES REASONABLE ASSURANCE THAT THEY
 MEET THE OBJECTIVES OF INTERNAL  CONTROL  AS  DEFINED  IN  SECTION  NINE
 HUNDRED FIFTY OF THE EXECUTIVE LAW. THE REPORT SHALL IDENTIFY THE INTER-
 NAL  CONTROLS BOTH EVALUATED AND NOT EVALUATED AND SHALL IDENTIFY INTER-
 NAL CONTROL WEAKNESSES THAT HAVE NOT BEEN CORRECTED AND ACTIONS THAT ARE
 RECOMMENDED TO CORRECT THESE WEAKNESSES. IF ANY  SUCH  INTERNAL  CONTROL
 WEAKNESSES ARE SIGNIFICANT OR MATERIAL WITH RESPECT TO SUCH DEPARTMENTS,
 THE  INDEPENDENT AUDITORS SHALL SO STATE. THE COMPTROLLER AND THE ATTOR-
 NEY GENERAL SHALL MAKE AVAILABLE TO  THE  PUBLIC  THE  RESULTS  OF  SUCH
 AUDITS,  INCLUDING  ANY  RELATED MANAGEMENT LETTERS. THE COMPTROLLER AND
 ATTORNEY GENERAL AND ANY OFFICER OR EMPLOYEE OF SUCH  DEPARTMENTS  SHALL
 MAKE  AVAILABLE  UPON  REQUEST  TO  SUCH  INDEPENDENT  CERTIFIED  PUBLIC
 ACCOUNTANTS ALL BOOKS AND RECORDS RELEVANT TO SUCH INDEPENDENT AUDITS.
   2. THE COMPTROLLER AND THE ATTORNEY GENERAL  SHALL  REQUEST  PROPOSALS
 FROM INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS FOR AUDITS OF THE INTERNAL
 CONTROLS  OF  THEIR  RESPECTIVE  DEPARTMENTS. THE REQUESTS FOR PROPOSALS
 SHALL INCLUDE A REFERENCE  TO  THE  REQUIREMENTS  FOR  AUDITS  CONDUCTED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10793-01-1
 A. 10246                            2

 PURSUANT  TO SUBDIVISION ONE OF THIS SECTION. THE COMPTROLLER AND ATTOR-
 NEY GENERAL SHALL SELECT SUCH INDEPENDENT AUDITORS IN ACCORDANCE WITH  A
 COMPETITIVE  PROCEDURE  INCLUDING  AN  EVALUATION,  BASED ON QUALITY AND
 PRICE  FACTORS, OF THOSE PROPOSALS RECEIVED IN RESPONSE TO SUCH REQUESTS
 FOR PROPOSALS.
   3. WHENEVER THE COMPTROLLER OR THE COMPTROLLER'S APPOINTEE IS A MEMBER
 OF ANY BOARD, COMMISSION,  COMMITTEE,  COUNCIL,  OR  CORPORATION,  WHICH
 CONSTITUTES  A  STATE  AGENCY, THE GOVERNING BODY OF SUCH BOARD, COMMIS-
 SION, COMMITTEE, COUNCIL, OR CORPORATION  SHALL  SELECT  AN  INDEPENDENT
 AUDITOR  FOR  THE  PURPOSE  OF CONDUCTING AUDITS OF INTERNAL CONTROLS IN
 ACCORDANCE WITH THIS SECTION.
   § 2. Section 10 of the cannabis law is amended by adding a new  subdi-
 vision 17-a to read as follows:
   17-A.  SHALL MAKE AVAILABLE UPON REQUEST TO THE STATE COMPTROLLER, THE
 ATTORNEY  GENERAL  AND  THE  INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANTS
 COMPLETING  ANNUAL  AUDITS PURSUANT TO SECTION ONE HUNDRED FORTY OF THIS
 CHAPTER ALL BOOKS AND RECORDS RELEVANT TO SUCH INDEPENDENT AUDITS.
   § 3. Paragraph a of subdivision 2-b of section 8 of the state  finance
 law,  as added by chapter 510 of the laws of 1999, is amended to read as
 follows:
   a. Either as part of one or more  audits,  or  separately,  conducting
 periodic  audits  of  internal controls and operations of state agencies
 (other than those state agencies for which an audit is required pursuant
 to sections nine hundred fifty-three and nine hundred fifty-four of  the
 executive  law)  and  of  covered authorities.   AUDITS OF THE OFFICE OF
 CANNABIS MANAGEMENT SHALL BE CONDUCTED ANNUALLY PURSUANT TO SECTION  ONE
 HUNDRED FORTY OF THE CANNABIS LAW. All such audits shall be performed in
 accordance  with generally accepted government auditing standards. Noth-
 ing in the New York state governmental accountability, audit and  inter-
 nal  control act shall be deemed to diminish or impair the comptroller's
 power to audit and authority to supervise accounts under articles V  and
 X  of the state constitution and this chapter. The audits shall identify
 internal control weaknesses that have not  been  corrected  and  actions
 that  are  recommended to correct these weaknesses. If any such internal
 control weaknesses are significant or material with respect to the oper-
 ations of the agency that is the subject of the audit,  the  comptroller
 shall  so  state. The comptroller shall make available to the public the
 results of any such audits.
   § 4. Section 63 of the executive law is amended by adding a new subdi-
 vision 17 to read as follows:
   17. CONDUCT AN ANNUAL AUDIT  OF  THE  OFFICE  OF  CANNABIS  MANAGEMENT
 PURSUANT  TO THE PROVISIONS OF SECTION ONE HUNDRED FORTY OF THE CANNABIS
 LAW.
   § 5. This act shall take effect immediately.