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MODEL LEGISLATION: CONSTITUTIONAL & FISCAL AUDIT LAW

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Overview


This legislation mandates cyclical audits and constitutionality reviews of all government actions to ensure adherence to legal and fiscal standards. It serves as the foundation for the Good Governance Guarantee, an initiative of Nations In Action.


Section 1: Constitutional & Fiscal Audits


(a) Audit Requirements: All actions by government departments, agencies, and commissions shall be audited for constitutional compliance and fiscal responsibility using Generally Accepted Accounting Principles (GAAP). Each entity will be audited within the first five years and then biannually thereafter. Non-compliance with the audit schedule and documentation requirements will result in the immediate suspension of funding. Audit results must be publicly disseminated and reported to the legislature.


(b) Sunset Clause: Statutes authorizing any program, agency, or mandate will sunset annually with renewal upon successful completion and implementation of the necessary corrections identified from the constitutional and fiscal audit.  The completed and passed audit must be accepted and reauthorized by a majority vote of the legislature.


Section 2: Government Review Commission


(a) Commission Composition: A Government Review Commission will be established, consisting of nine members:

 

  • Three public members appointed by the Governor.

  • Three House members appointed by the Speaker of the House.

  • Three Senate members appointed by the Presiding Officer of the Senate.


(b) Public Member Restrictions: Public members cannot be current legislators or have previously served in government. They also cannot be employees, owners, or officers of companies receiving more than 10% of their gross revenue from government contracts.


(c) Term and Compensation: Commission members will serve without pay for a term of three years, at the discretion of the appointing official.


Section 3: Government Review Requirements


Each department, agency, and commission shall undergo a comprehensive evaluation to:

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  1. Ensure Constitutional Adherence: Maintain compliance with constitutional requirements.

  2. Eliminate Duplication and Overlap: Identify and remove redundant functions within and across departments.

  3. Seek Consolidation Opportunities: Explore opportunities for merging similar functions to improve efficiency.

  4. Assess Efficiency and Goals: Evaluate operational efficiency and goal achievement.

  5. Implement Statute and Budget Changes: Propose changes to improve operations, reduce costs, and enhance services.

  6. Assess Federal, State, or Local Impacts: Evaluate the impact of losing or gaining funds from other government levels.

  7. Explore Alternative Service Methods: Identify cost-effective, performance-improving alternatives.

  8. Enforce Laws and Regulations: Review law enforcement efficacy and identify areas for improvement.

  9. Examine Compliance and Conflicts of Interest: Identify conflicts of interest and ensure compliance with documentation and attendance requirements.

  10. Review Employee Actions and Decisions: Document disciplinary actions, hiring, and retention patterns.

  11. Evaluate Advisory Committees and Boards: Assess the necessity and effectiveness of advisory groups.

  12. List Unauthorized Programs: Identify and evaluate programs operating without statutory authority.

  13. Ensure Employee Compliance: Confirm full compliance with job attendance and documentation requirements.

  14. Study Committee Efficiency: Examine the success and potential training needs of study committees.

  15. Analyze Private Sector Comparisons: Compare government services with private sector offerings for validity and legality.

  16. Adhere to Transparency and Audit Requirements: Ensure full transparency and adherence to audit requirements.

  17. Evaluate Economic and Fiscal Impact: Assess how government actions affect free enterprise, government spending, and future tax obligations.

 

Section 4: Published Outcomes from Government Review


(a) Cyclical Evaluations: Each program, agency, and commission will be evaluated on a regular basis.
(b) Economic Benefits: Measure the net economic benefits to all state citizens.
(c) Federal Funding Compliance: Document compliance with federal funding agreements.
(d) Market Impact: Evaluate the impact on the free-market economy and government spending displacement.
(e) Necessary Government Functions: Confirm whether the government action fills a unique and necessary role.
(f) Future Financial Obligations: Assess potential future tax increases resulting from government actions.
(g) Constitutional Authorization: Ensure actions are authorized by both the U.S. and state constitutions.


Section 5: Penalties


(a) Non-Compliance Penalties: Failure to correct discrepancies, provide full transparency, adhere to affidavits, and pass audits will result in defunding, investigations and possible termination of employees, along with the loss of health and pension benefits. Intentional obfuscation will result in permanent termination and defunding within the department.


Section 6: Effective Date


This law will take effect on [Insert Effective Date Here or Upon Signature of the Governor].

 

Take Action

Now is the time to demand ethical governance that works for the people. Join us in ensuring the passage of constitutional and fiscal audits at all levels of government. Together, we can build a future where transparency, accountability, and trust are the foundation of society.

Support the Good Governance Guarantee—because integrity in leadership starts with accountability.

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