HB378 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Prince ChestnutRepresentative
Democrat
Session: Regular Session 2019
Title: Department of Examiners of Public Accounts, dept. authorized to perform audits of a municipality when fraud is suspected, governing body of a municipality authorized to request an audit under certain circumstances, penalties
Summary: HB 378 creates the Municipal Audit Accountability Act, giving the Department of Examiners of Public Accounts authority to audit municipalities for fraud or mismanagement, require audits when needed, maintain a public repository of audit reports, and impose penalties on officials who fail to comply.
What This Bill Does
The department may examine a municipality’s books and records if fraud or mismanagement is suspected. A municipality’s governing body can request an audit in writing, and the department will decide, after a quick review, whether an in-depth audit is needed and perform it within six months if warranted. If a municipality has an independent audit, the final report must be shared with the department within 60 days, and the department will maintain a public repository with weekly notices; noncompliant municipalities can be audited at their expense, with penalties up to $250 per week for ongoing noncompliance.

Who It Affects
Municipal officials and governing bodies: subject to audits, required to cooperate, and potential costs and penalties for noncompliance.
Residents and the general public: gain access to a public repository of independent municipal audit reports and receive public notices about audits.

Key Provisions
Authorizes the Department of Examiners of Public Accounts to examine a municipality’s books, records, vouchers, and accounts when fraud or mismanagement is suspected.
Allows the municipality’s governing body to request an examination by written resolution; the department will determine if an in-depth audit is necessary and, if warranted, conduct it within six months.
Requires municipalities with independent audits to provide the final report to the department within 60 days; the department shall establish a repository of these reports, provide weekly public notices, and, upon request, provide copies to the public.
If a municipality fails to have an audit or to comply with reporting, the department may audit at the municipality’s expense; the municipality must be notified 30 days before the audit, and may file a completed audit or provide CPA details within 30 days if an audit is pending.
If noncompliance continues, penalties of up to $250 per week may be levied on municipal officers or governing bodies, with penalties paid into the State General Fund; good faith effort to comply must be demonstrated to avoid penalties.
The act becomes effective on the first day of the third month after its passage and approval by the Governor.

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