SB258 Alabama 2023 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Andrew JonesSenator
Republican
Session: Regular Session 2023
Title: Relating to water utilities; to amend Act 2022-378 of the 2022 Regular Session, now appearing as Section 41-5A-12.2 of the Code of Alabama 1975, relating to certain nonprofit corporations providing water service and providing a one-time audit by the Department of Examiners of Public Accounts, to specify that the law applies to nonprofit corporations providing water service to its members or the public; and to authorize the department to conduct an additional one-time audit of a nonprofit corporation if the department suspects fraud or mismanagement of funds.
Summary: SB258 expands state audits to nonprofit water utilities and allows a second audit if fraud or mismanagement is suspected.
What This Bill Does
The bill adds nonprofit water providers (not organized under Title 11) to the entities that can be audited by the Department of Examiners of Public Accounts, using the same process as other public utilities. It also allows an additional one-time audit if the department suspects fraud or mismanagement of funds in these nonprofits. The department may charge a reasonable fee for audits. It clarifies that municipal or county public water systems and Title 11 entities are not affected by this provision.

Who It Affects
Nonprofit water utilities not incorporated under Title 11: may be audited once, and may receive an additional one-time audit if fraud or mismanagement is suspected, with a possible audit fee.
Department of Examiners of Public Accounts: gains authority to conduct these audits and to charge reasonable fees.
Municipal or county public water systems and entities organized under Title 11: are not covered by this provision and remain outside its scope.

Key Provisions
Expands the audit authority to nonprofit water providers not organized under Title 11, allowing audits in the same manner as other public utilities and authorizing a reasonable audit fee.
Allows an additional one-time audit if the department suspects fraud or mismanagement of funds, with a reasonable fee for audits or examinations.
Explicitly states the provision does not apply to or affect municipal/county public water systems or Title 11 entities.

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