18-1-118. (Temporary) Access to records of contracting entities and foundations. (1) Money may not be spent by a state agency under a contract with a nonstate entity unless the contract contains a provision that allows the legislative auditor sufficient access to the records of the nonstate entity to determine whether the parties have complied with the terms of the contract. The access to records is necessary to carry out the functions provided for in Title 5, chapter 13. A state agency may terminate a contract, without incurring liability, for the refusal of a nonstate entity to allow access to records as required by this section.
     (2) Public money or public property may not be transferred to a private foundation or organization established for the promotion, support, or encouragement of the university system unless the transfer:
     (a) provides the legislative auditor sufficient access to the records of the private foundation or organization to allow compliance with Article VIII, section 12, and Article X, section 9(2)(d), of the Montana constitution; and
     (b) provides the legislative auditor with annual financial reports that include audited financial statements.
     (3) Notwithstanding the provisions of subsection (2), this section does not permit the legislative auditor to audit the financial records of private donors to entities described in subsection (2). (Effective July 1, 2001)
     18-1-118. (Effective July 1, 2001) . Access to records of contracting entities. Money may not be spent by a state agency under a contract with a nonstate entity unless the contract contains a provision that allows the legislative auditor sufficient access to the records of the nonstate entity to determine whether the parties have complied with the terms of the contract. The access to records is necessary to carry out the functions provided for in Title 5, chapter 13. A state agency may terminate a contract, without incurring liability, for the refusal of a nonstate entity to allow access to records as required by this section.

     History: En. Sec. 12, Ch. 787, L. 1991; amd. Sec. 60, Ch. 545, L. 1995; amd. Sec. 2, Ch. 377, L. 1997.