HB364 Alabama 2021 Session

Summary

Primary Sponsor

Andrew SorrellAuditor

Republican

Session

Regular Session 2021

Title

State Auditor, assumption of responsibilities of Chief Examiner of Public Accounts, Dept. of Examiners of Public Accounts established as division of office of State Auditor, transfer of functions and employees provided provisions regarding Chief Examiner of Public Accounts and Legislative Committee of Public Accounts repealed, Sec. 36-16-1 am'd; Secs. 36-16-20 to 36-16-37, inclusive, added; Secs. 41-5A-1 to 41-5A-23, inclusive, repealed

Summary

HB364 moves auditing functions from the Legislative Branch to a Division of Examiners of Public Accounts under the State Auditor, transferring staff and repealing the old legislative oversight structure.

What This Bill Does

It designates Chapter 16 as Article 1 and adds Article 2, creating the Division of Examiners of Public Accounts within the State Auditor's Office. All functions, duties, powers, funds, papers, and property of the Chief Examiner of Public Accounts and the Department of Examiners of Public Accounts would be transferred to the State Auditor and the new division. The State Auditor would become the executive head of the division, overseeing audits of state and county offices and establishing uniform accounting systems for counties and county boards of education. The bill repeals Chapter 5A, creates a recovery-audit program with a dedicated fund, and becomes effective October 1, 2023, with provisions regarding local-funding requirements noted as exempt under the constitution.

Who It Affects

• State Auditor and Division staff: gains new authority to supervise, hire, and oversee audits of state and county entities.
• Former employees of the Department of Examiners of Public Accounts: transferred into the Division within the State Auditor's Office and continue employment under the new structure.
• Chief Examiner of Public Accounts: functions and reference to the position are replaced by the State Auditor in the new structure.
• County and municipal governments and county boards of education: will be audited by the Division; required to adopt or align with uniform accounting and reporting systems; affected by new audit procedures and oversight.
• Legislative Branch: loses the standalone Legislative Committee on Public Accounts, as the bill repeals Chapter 5A.
• Higher education and other public entities: audits and reviews continue under the Division with state auditor oversight.

Key Provisions

• Transfers and reorganization: Transfers all functions, duties, and property of the Chief Examiner of Public Accounts to the State Auditor and places the Department of Examiners of Public Accounts under the Division of Examiners of Public Accounts within the State Auditor's office; repeals Chapter 5A (Chief Examiner, Department of Examiners of Public Accounts, and Legislative Committee on Public Accounts).
• Creation and leadership: Establishes the Division of Examiners of Public Accounts within the State Auditor's Office, with the State Auditor as the executive head and grant of powers to supervise, hire staff, set rules, and conduct audits.
• Expanded audit authority and duties: The division may examine and audit all state and county offices and agencies, develop uniform accounting and reporting systems for counties and county boards of education, and report expenditures or contracts found to violate laws.
• Recovery audits and funding: Allows the State Auditor to contract with recovery auditors, creates a special fund for recovery-money, and sets compensation limits and public reporting requirements for recovery audits.
• Public records and legal tools: Recovery audit reports are public records; the Division may issue subpoenas and use legal processes; the Attorney General assists with legal matters and enforcement.
• Municipal audits and accountability: The Division takes on municipal audits and maintains a repository of independent audit reports; penalties can be imposed if municipalities fail to comply.
• Personnel and budget: Details on deputy chief examiner qualifications, staff assignment, and merit-system considerations; funds related to the Division are managed within the State Auditor's appropriation framework.
• Effective date and local-funding note: Effective October 1, 2023; Section 5 states local-funding implications are exempt under Amendment 621 due to the bill’s provisions (and related crime-definition considerations).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

State Auditor