HB562 Alabama 2025 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

2025 Regular Session

Title

State Auditor; powers and duties revised; Division of Investigations created

Summary

HB562 would create a Division of Property Investigations in the State Auditor’s Office, expand property loss investigations and civil remedies, require loss reporting and threshold-based inventories, and update state property tracking and recovery rules.

What This Bill Does

It establishes the Division of Property Investigations to investigate loss, theft, or damage of state property and to seek repayment for losses due to negligence. It authorizes the Attorney General to bring civil actions to recover losses and allows referrals to AG or district attorneys for possible criminal violations. It requires property managers to report losses within 30 days, sets a threshold for inventory (initially $500) that can be CPI-adjusted every four years, and creates inventory and reporting requirements, with special provisions for properties behind security bars in DOC/DYS facilities. It also requires regular reporting of losses and provides an effective date of October 1, 2025.

Who It Affects

• State agencies and their property managers who must report losses, maintain inventories, and handle property accountability; they may face liability or salary withholding if inventories are not properly completed.
• The State Auditor’s Office, the Division of Property Investigations, the Attorney General, and district attorneys who gain new investigative, enforcement, and civil-recovery roles and responsibilities.

Key Provisions

• Creates the Division of Property Investigations within the Office of the State Auditor to investigate loss, theft, or damage of state property and to demand repayment for negligent losses.
• Allows the Attorney General to bring civil actions to recover amounts due for negligent loss or damage of state property; permits referrals to AG or district attorneys for possible criminal violations.
• Property managers must report the loss or theft of reportable property within 30 days of learning of the loss; the Division of Property Inventory Control must be notified and provide a brief summary of circumstances.
• Defines a threshold value for inventory (initially $500) and provides for CPI-based adjustments every four calendar years, with notices to property managers 90 days before adjustments; allow complete inventory if requested in the department’s best interest.
• Inventory requirements compel designation of a property manager, full inventory details (description, serial number, cost, date of purchase, location, custodial officer, and markings); copies must be submitted to the Division; written receipts required when property is entrusted to others; last salary paid may be withheld until inventory is completed.
• Biennial inventory of nonexempt state property valued at or above the threshold, with exemptions for certain categories; alternative audit methods allowed for areas behind security bars in DOC/DYS facilities; normal processes apply to property not behind bars.
• Auditor and PCI may review internal inventory policies; cooperation required from governmental entities audited.
• Receives an effective date of October 1, 2025.

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 & State Officers