HB540 Alabama 2017 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2017

Title

Public examiners, provisions governing operation of substantially revised, Chapter 5 of Title 41 repealed, Chapter 5A of Title 41 added

Summary

HB540 would create a new Chapter 5A to reform Alabama's Examiners of Public Accounts, redefine the chief examiner's role, add a chief legal counsel, empower recovery audits, and overhaul legislative oversight of the department.

What This Bill Does

It replaces the old framework with a new Department of Examiners of Public Accounts (Chapter 5A) led by a five-year, Senate-confirmed chief examiner who must be a licensed CPA. It creates a dedicated chief legal counsel and up to two assistant legal counsels, expands the department's audit powers (including private recovery auditors with a 15% cap), and requires regular audits of state and county offices every two years. It also overhauls the Legislative Committee on Public Accounts, sets salary rules, separates local-fund expenditure rules (with exceptions), and requires annual reporting and public disclosure of recovery audits.

Who It Affects

• State agencies and county boards of education that will be audited and may face recovery audits, penalties for false statements, and potential recovery of overpayments.
• The Legislative Committee on Public Accounts and Department staff (chief examiner, assistant chief examiner, chief legal counsel, and deputies), who oversee, manage, and implement the new framework and funding.

Key Provisions

• Adds Chapter 5A to Title 41 to create the Department of Examiners of Public Accounts, with the chief examiner as head and supervision by the Legislative Committee on Public Accounts.
• Chief examiner must be a licensed Alabama CPA, serve a five-year term, and be confirmable by the Senate; can be removed by joint resolution; must take an oath and post a $100,000 bond.
• Requires the chief examiner to appoint a chief legal counsel (and up to two assistant legal counsels); salaries for the chief examiner and assistant chief examiner set by the committee and department funds.
• Empowers the chief examiner to regulate investigations and audits, supervise staff, keep records, issue regulations, and provide annual reports to the Governor and committee; establish uniform accounting systems for state and county offices.
• Authorizes contracts with recovery auditors to identify and recoup overpayments; compensation capped at 15% of the recovered amount; creates a special recovery fund in the State Treasury to handle costs and refunds.
• Recovery audits and reports become public records; disputes may be arbitrated with costs shared according to the ruling; audits of electric utilities have a three-year look-back limit.
• Examinations of state and county offices are required at least every two years, funded by the state; false statements in audits carry a Class C felony.
• Overhauls the Legislative Committee on Public Accounts to 12 members (5 House, 5 Senate; Senate President Pro Tempore as chair; House Speaker as member and vice-chair); annual meetings with time limits and per diem for members.
• Repeals Chapter 5 (existing law) and makes the act effective on the first day of the third month after passage; contains a local-funding provision that is exempt from certain requirements due to specified exceptions.

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