Senate Bill 164 Alabama 2026 Session

Summary

Primary Sponsor

Andrew JonesSenator

Republican

Session

2026 Regular Session

Title

Class IV municipalities; audits, restrictions on hiring accountant removed

Summary

SB164 removes the three-year limit on using the same auditor for Class IV Alabama municipalities.

What This Bill Does

It repeals the rule that the same accountant cannot conduct a Class IV municipality's audit for more than three consecutive fiscal years. The bill keeps existing requirements that audits be conducted by a reputable, disinterested CPA and that a true summary of the audit is published in a newspaper and submitted to the city council after completion. The act takes effect on October 1, 2026.

Who It Affects

• Class IV municipalities and their auditing firms, who would be allowed to keep the same CPA for more than three consecutive audits.
• City residents and local media, who continue to rely on and receive a published true summary of the annual audit for public oversight.

Key Provisions

• Amends Section 11-43B-9 to remove the prohibition that audits for Class IV municipalities may not be conducted by the same accountant for more than three consecutive fiscal years.
• Maintains the requirement that the mayor prepare a detailed statement of receipts and expenses and that the council have the books audited by a reputable, disinterested CPA.
• Keeps the publication of a true summary of the annual audit in a newspaper of general circulation in the city.
• Requires the audit report to be submitted by the mayor to the council at its first meeting after completion.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities