HB229 Alabama 2018 Session

Summary

Primary Sponsor

Paul Beckman

Republican

Session

Regular Session 2018

Title

State Auditor, duties further provided, authorized to make written demand for recovery of public funds improperly withheld or illegally expended, initiate legal action for recovery of funds or value of property, Sec. 36-16-1 am'd.

Summary

The bill would authorize the State Auditor to demand repayment of public funds improperly withheld or expended and to seek the value of public property disposed of unlawfully, including pursuing legal action when needed.

What This Bill Does

It would add to the State Auditor’s duties the authority to issue written demands and, if needed, start legal action to recover improperly withheld funds and the value of property disposed of unlawfully. The demand must be based on competent evidence and kept confidential until served, with notice to bonding companies if contact cannot be made; recovered funds go to the State Treasury and are payable to the appropriate department within 30 days with 1% monthly interest. If not paid, the Auditor may sue in Montgomery County with help from the Attorney General, and the surety may face a civil penalty for failing to respond or pay within 120 days. The bill also strengthens inventory enforcement by making the property manager bear the cost if an agency fails to inventory, and allows recovery of missing items against the agency head and the property manager.

Who It Affects

• State agencies, departments, and other public bodies (including their property managers and agency heads) who handle public funds or property, who would face written demands and potential legal action for recovery.
• Bonding companies and official bond sureties, who could face penalties and must respond or pay under the new procedures.

Key Provisions

• Adds written demand and potential legal action by the State Auditor to recover improperly withheld or misappropriated funds and the value of property disposed of unlawfully.
• Demands must be based on competent evidence and remain confidential until served; notice to bonding companies is required if contact cannot be made; interest of 1% per month applies; recovered funds go to the State Treasury and can be disbursed within 30 days.
• If unpaid, the State Auditor may sue in the Montgomery County Circuit Court with Attorney General assistance; a civil penalty on the bond may be applied for failure to respond or pay within 120 days (12% of bond up to $10,000).
• If agencies fail to conduct required inventories, the property manager bears the inventory costs; missing items identified in audits can be recovered against the agency head and property manager.
• Effective date: the first day of the third month after passage and approval.

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

Subjects

State Auditor