SB258INTRODUCED
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S2OH58-1
By Senator Jones
RFD: County and Municipal Government
First Read: 27-Apr-23
2023 Regular Session
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6 S2OH58-1 04/17/2023 FC (L) ma/lg 2023-908
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SYNOPSIS:
Under existing law, a nonprofit corporation that
is not incorporated pursuant to Title 11, Code of
Alabama 1975, that provides water service to the public
may be audited one time by the Department of Examiners
of Public Accounts.
This bill would specify that the law applies to
a nonprofit corporation that provides water service to
its members or the public.
This bill would also authorize the Department of
Examiners of Public Accounts to conduct a one-time
audit of a public corporation organized under Article 9
of Chapter 50 of Title 11, Code of Alabama 1975,
providing water service if the department suspects
fraud or mismanagement of funds.
A BILL
TO BE ENACTED
AN ACT
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
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specify that the law applies to nonprofit corporations
providing water service to its members or the public; and to
authorize the department to conduct a one-time audit of a
public corporation organized under Article 9 of Chapter 50 of
Title 11, Code of Alabama 1975, providing water service if the
department suspects fraud or mismanagement of funds.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Act 2022-378 of the 2022 Regular Session,
now appearing as Section 41-5A-12.2 of the Code of Alabama
1975, is amended to read as follows:
"ยง41-5A-12.2
(a) After April 14, 2022, the effective date of the
act adding this amendatory language, beginning after the close
of the then current fiscal year, any nonprofit corporation
organized under the laws of this state as a nonprofit
corporation that is not incorporated pursuant to Title 11,
which provides water service to its members or the public, may
be audited or examined one time by the Department of Examiners
of Public Accounts in the same manner as provided in Chapter
5A of Title 41. The department may charge a reasonable fee for
the audits.
(b) After the effective date of the act adding this
amendatory language, beginning after the close of the then
current fiscal year, any public corporation organized,
created, or incorporated under Article 9, Chapter 50 of Title
11, which provides water service to its members or the public,
may be audited or examined one time by the Department of
Examiners of Public Accounts in the same manner as provided in
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Chapter 5A of Title 41, if the department suspects fraud or
mismanagement of funds by the public corporation. The
department may charge a reasonable fee for the audits or
examinations.
(b)(c) This section does not apply to or affect any
public water supply system, waterworks plant, or water
distribution system owned or operated by a municipality or
county, or by a public corporation, board, or other entity
organized, created, or incorporated pursuant to Title 11 ,
except as provided in subsection (b) ."
Section 2. This act shall become effective immediately
following its passage and approval by the Governor, or its
otherwise becoming law.
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