HB350 Alabama 2014 Session

Summary

Primary Sponsor

Ed Henry

Republican

Co-Sponsors

Ken JohnsonWilliam RobertsDonnie ChesteenRichard BaughnTerri CollinsApril WeaverAlan HarperMac ButtramMack N. ButlerMike HubbardWes LongDan Williams

Session

Regular Session 2014

Title

Examiners of Public Accounts Department, placed in Office of State Auditor, appointment of Chief Examiner of the department, Secs. 36-16-1, 41-5-1, 41-5-3, 41-5-6, 41-5-6.1, 41-5-7, 41-5-8, 41-5-10 am'd; Secs. 41-5-4, 41-5-5, 41-5-9, 41-5-18, 41-5-19, 41-5-20 repealed

Summary

HB350 moves the Department of Examiners of Public Accounts into the Office of the State Auditor, with the State Auditor taking over the Chief Examiner’s duties and authority.

What This Bill Does

If enacted, the Department would operate as part of the State Auditor’s Office starting October 1, 2014. The State Auditor would assume all powers and duties of the Chief Examiner and oversee the department’s work auditing state and county offices and improving accounting and reporting systems. All funds, papers, and property of the department would transfer to the State Auditor, and most employees (except the Chief Examiner) would keep their rights under merit system rules. Some existing laws would be amended or repealed to reflect the new structure, and the State Auditor would supervise recovery audits under the new framework.

Who It Affects

• State Auditor and the Office of the State Auditor would take over the duties and authority of the Chief Examiner and supervise the Department of Examiners of Public Accounts.
• Employees of the Department of Examiners of Public Accounts (excluding the Chief Examiner) would transfer to the State Auditor’s Office and remain under merit system rules with their existing rights.

Key Provisions

• Transfers the Department of Examiners of Public Accounts to operate within the Office of the State Auditor, with the State Auditor serving as Chief Examiner.
• Amends Sections 36-16-1, 41-5-1, 41-5-3, 41-5-6, 41-5-6.1, 41-5-7, and 41-5-10; repeals Sections 41-5-4, 41-5-5, 41-5-8, 41-5-9, 41-5-18, 41-5-19, and 41-5-20.
• All funds, papers, and property of the department would transfer to the Office of the State Auditor.
• Effective October 1, 2014, the State Auditor shall perform duties and assume authority previously assigned to the Chief Examiner; the department shall be guided by the State Auditor acting as Chief Examiner.
• The deputy chief examiner must be a Merit System employee with at least eight years of CPA experience or eight years as an examiner; other staff are appointed under merit system rules and bonded as required.
• The Chief Examiner (now the State Auditor acting as Chief Examiner) may contract with recovery auditors to conduct recovery audits, with limitations on timeframes, compensation (not to exceed 15% of amounts recovered), confidentiality, and a requirement that audits be completed within 12 months.
• Establishes a special fund in the State Treasury to receive funds from recovery audits and to be used for lawful purposes; requires referrals of any amounts due federal programs to be calculated and remitted accordingly.
• Recovery audit reports are public records; arbitration is available for disputes, with costs shared by the audited entity and the recovery auditor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Examiners of Public Accounts Department