2023 Tennessee Code › Title 2 - ELECTIONS (§§ 2-1-101 — 2-20-109) › Chapter 10 - CAMPAIGN FINANCES (§§ 2-10-101 — 2-10-406) › Part 2 - REGISTRY OF ELECTION FINANCE (§§ 2-10-201 — 2-10-214) › Section 2-10-212 - Audits and investigations of reports and statements

(a)
The registry of election finance shall conduct audits and field investigations of reports and statements filed with the registry as follows:
(1)
Each gubernatorial candidate and that candidate's committees that receive at least ten percent (10%) of the vote at the general election shall be audited;
(2)
Each candidate for the general assembly and such candidate's committees shall be subject to an audit by the registry on a random selection of districts in an election. Districts shall be randomly drawn until a total of approximately four percent (4%) of all candidates for the general assembly have been selected. Notwithstanding any law to the contrary, for any audit conducted by the registry under this subdivision (a)(2), the registry shall only conduct the audit for the immediately preceding election cycle and shall not require the production or disclosure of, or consider for purposes of the audit, any information or documents relating to any other election cycle; and
(3)
Each candidate for supreme court, court of appeals and court of criminal appeals shall be subject to an audit by the registry on a random selection. One (1) candidate from each of the supreme court, court of appeals and court of criminal appeals shall be randomly selected by the registry to be audited each election cycle.
(b)
(1)
(A)
The registry shall select by lot the districts to be audited on a random basis regarding candidates for the general assembly. For judicial offices, the registry shall select by lot the names of candidates to be audited on a random basis.
(B)
The selection shall be after the last date for filing the first report or statement following the general election for which the candidate ran or for which the committee donated money. The attorney general and reporter, or the attorney general's designee, shall attend the random selection to preserve the integrity of the proceeding.
(2)
No audit or investigation of any candidate or candidate's committee in connection with a report or statement required by this chapter shall begin until after the last date for filing the first report or statement following the general election for the office for which the candidate ran. When the campaign statements or reports of a candidate are audited and investigated, the audit and investigation shall cover all campaign statements and reports filed for the primary and general elections and any previous campaign statement or report filed since the last election for that office, but shall exclude any statements or reports that have previously been audited.
(3)
Audits of members of the general assembly shall only take place during June through December during odd-numbered years. The registry shall strive to complete and release its findings within such odd-numbered year or another odd-numbered year.
(c)
In order to comply with an audit, candidates, campaigns, and political campaign committees shall retain copies of all checks, money orders, wire or account transfer statements, withdrawal statements, credit or debit statements, bank statements, vendor receipts, and other documentation directly resulting from a financial transaction involving the receipt or disbursement of any funds subject to disclosure under part 1 of this chapter for two (2) years after the date of the election to which the records refer.
(d)
(1)
The registry shall adopt auditing guidelines and standards with guidance from the comptroller of the treasury, which shall govern audits and field investigations conducted under this section. The guidelines and standards shall be formulated to accomplish the following purposes:
(A)
The audits should encourage compliance and detect violations of this chapter;
(B)
The audits should be conducted with maximum efficiency in a cost-effective manner; and
(C)
The audits should be as unobtrusive as possible, consistent with the purposes provided in this subdivision (d)(1).
(2)
In adopting its guidelines and standards, the registry shall consider relevant guidelines and standards of the American Institute of Certified Public Accountants to the extent such guidelines and standards are applicable and consistent with the purposes set forth in this section.
(e)
The detailed information received pursuant to this section for an audit shall be considered working papers of the registry of election finance and is, therefore, confidential and not an open record pursuant to title 10, chapter 7.
(f)
After the completion and approval of an audit by the registry, the registry shall post any finding that could result in an assessment of significant penalties on the registry's website, except that audits of candidates defeated in the primary election shall not be made public until after the general election.
(g)
Failure to comply with an audit investigation under this section is a Class 2 offense as defined in §
2-10-110
.
(h)
Notwithstanding this section, any candidate running for the office of governor more than one (1) year prior to the general election may elect to do self-audits. Such audits shall be given to the registry and the registry may give the candidate a letter of compliance stating the audit is complete and acceptable.
(i)
(1)
Notwithstanding this section, if any candidate files a contribution statement with more than thirty percent (30%) of the candidate's contributions reported as unitemized contributions and such contributions total more than five thousand dollars ($5,000), then the candidate's contributions shall automatically be audited by the registry.
(2)
Subdivision (i)(1) does not apply to reports covering periods beginning on and after January 16, 2023.
(3)
Beginning with reports covering periods beginning on and after January 16, 2023, if any candidate files a contribution statement with more than thirty percent (30%) of the candidate's contributions reported as unitemized contributions, then the candidate's contributions shall automatically be audited by the registry.
Amended by 2022 Tenn. Acts, ch. 1087, Secs.s 9, s 16 eff. 7/1/2022.
Amended by 2017 Tenn. Acts, ch. 479, s 1, eff. 6/6/2017.
Acts 2006 (1st Ex. Sess.), ch. 1, § 14.