House Bill 516 Alabama 2026 Session

Summary

Primary Sponsor

Juandalynn GivanRepresentative

Democrat

Session

2026 Regular Session

Title

Water boards; expand types of water boards that Department of Examiners of Public Accounts may audit

Summary

HB516 would allow the Department of Examiners of Public Accounts to audit local water boards and authorities organized under Title 11, which previously could not be audited.

What This Bill Does

It expands the types of water boards that may be audited by the Department of Examiners of Public Accounts to include local boards and authorities organized under Title 11. It authorizes one-time audits of nonprofit water service providers not under Title 11 after the close of the then-current fiscal year (starting after June 14, 2023) in the same manner as other DEPA audits, with the department allowed to charge a reasonable fee. It also lets DEPA conduct a one-time additional audit if fraud or mismanagement is suspected, for nonprofit corporations not under Title 11, with a reasonable fee. It does not apply to public water systems owned or operated by municipalities or counties, or to entities organized under Title 11.

Who It Affects

• Local water boards and authorities organized under Title 11: may be audited by the Department of Examiners of Public Accounts.
• Nonprofit water service providers not organized under Title 11: may be audited once after the end of the current fiscal year, and possibly a second time if fraud or mismanagement is suspected; audits may incur fees.
• Public water systems owned or operated by municipalities or counties, or by Title 11 entities: not affected by these audit provisions.

Key Provisions

• Authorizes DEPA to audit local water boards and authorities organized under Title 11, one time after the close of the then current fiscal year, in the same manner as Chapter 5A of Title 41, with a reasonable audit fee.
• Authorizes a one-time audit of nonprofit corporations not organized under Title 11 that provide water service after the close of the current fiscal year, if the department suspects fraud or mismanagement, in addition to the audit under subsection (a), with a reasonable fee.
• Excludes from these provisions public water systems owned or operated by a municipality or county, or by public corporations, boards, or other entities organized under Title 11.
• The act becomes effective October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 26, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Authorities, Boards, & Commissions