HB131 Alabama 2018 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2018

Title

Examiners of Public Accounts Department, provisions governing operation of substantially revised, Chapter 5 of Title 41 repealed, Chapter 5A of Title 41 added

Summary

HB 131 overhauls Alabama's Examiners of Public Accounts by creating a new Department of Examiners of Public Accounts (Chapter 5A) with expanded oversight, staffing, and recovery-audit powers.

What This Bill Does

The bill creates the Department of Examiners of Public Accounts as Chapter 5A to replace the old Chapter 5 and sets up a new chief examiner with a five-year term. It authorizes the department to audit all state and county offices, establish uniform accounting and reporting systems, and maintain records, under oversight by the Legislative Committee on Public Accounts. It allows private recovery auditors to identify and recover overpayments, creates a Recovery Audit Fund, requires public reporting of recovery audits, and imposes penalties for false statements in audits. It adds a chief legal counsel and assistant positions, repeals Chapter 5, transfers powers to the new department, and notes that the bill is exempt from certain local-expenditure requirements.

Who It Affects

• State agencies, officers, and employees who handle public funds will be audited, may owe recoveries for overpayments, and must follow uniform accounting rules.
• County boards of education and county/local government entities will be required to implement a uniform accounting system and be subject to audits and potential recovery actions.

Key Provisions

• Chapter 5A created: establishes the Department of Examiners of Public Accounts, with the chief examiner located in Montgomery and the ability to establish divisions as needed.
• Chief examiner: appointed by the Legislative Committee on Public Accounts for a five-year term, subject to Senate confirmation; may be removed for cause by joint resolution.
• Powers and duties: chief examiner oversees audits, sets regulations for investigations, supervises staff, maintains records, and can install uniform accounting and reporting systems for state and county offices.
• Recovery audits: authority to contract with private recovery auditors, with compensation capped at 15% of the amount recovered; a special Recovery Audit Fund is established; recovery reports are public records; arbitration available for disputes.
• Staff and legal counsel: creates a chief legal counsel and assistant legal counsels; assistant chief examiner may be appointed; salaries and classification defined, with some positions in unclassified service.
• Oversight and transparency: Legislative Committee on Public Accounts (12 members) supervises the department; annual reporting to the Legislature and Governor; audits and reports are subject to public disclosure rules.
• Enforcement and penalties: false statements in audits are a Class C felony; funds and accounting standards are standardized across state and county offices.
• Transition and funding: repeals Chapter 5, transfers powers to Chapter 5A, and requires references to be updated; local expenditure concerns are addressed with a constitutional exemption; act becomes effective immediately.

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