SB37 Alabama 2013 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Co-Sponsors

Jerry L. FieldingCam Ward

Session

Regular Session 2013

Title

Accountants, CPA's licensed in Alabama prohibited from charging a contigent fee for preparation of financial document used in a claim in a court in Alabama, Class B misdemeanor

Summary

SB37 would ban licensed Alabama accountants and CPAs from charging contingent fees for preparing financial documents used in court filings, with a narrow independence carve-out, and would make violations a Class B misdemeanor.

What This Bill Does

Prohibits a licensed accountant or CPA in Alabama from charging a contingent fee for preparing or compiling financial documents that are expected to be used in a court filing in Alabama. Provides a carve-out: the prohibition does not apply if the financial document clearly shows that the accountant has no contractual relationship with the client and works independently of the client. Violations would be punishable as Class B misdemeanors, with the act becoming effective immediately after the bill is enacted.

Who It Affects

• Licensed accountants and CPAs in Alabama would be restricted from charging contingent fees for court-related financial documents and could face Class B misdemeanor penalties for violations.
• Clients or claimants who rely on financial documents prepared for court filings may see changes in how fees are structured, particularly regarding independence and potential contingencies in fees.

Key Provisions

• Section 1: An Alabama-licensed accountant or CPA may not charge a contingent fee for the preparation or compilation of a financial document that might be used in a court filing, unless the document clearly indicates the accountant has no contractual relationship with the client and works independently of the client.
• Section 2: A violation is a Class B misdemeanor.
• Section 3: The bill is treated as defining a crime, and is excluded from local-funds expenditure rules under Amendment 621 for that reason.
• Section 4: The act becomes effective immediately upon passage and approval by the Governor, or otherwise becoming law.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Accountancy