| 16 | + | Under existing law, a nonprofit corporation that |
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| 17 | + | is not incorporated pursuant to Title 11, Code of |
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| 18 | + | Alabama 1975, that provides water service to the public |
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| 19 | + | may be audited one time by the Department of Examiners |
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| 20 | + | of Public Accounts. |
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| 21 | + | This bill would specify that the law applies to |
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| 22 | + | a nonprofit corporation that provides water service to |
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| 23 | + | its members or the public. |
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| 24 | + | This bill would also authorize the Department of |
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| 25 | + | Examiners of Public Accounts to conduct a one-time |
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| 26 | + | audit of a public corporation organized under Article 9 |
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| 27 | + | of Chapter 50 of Title 11, Code of Alabama 1975, |
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| 28 | + | providing water service if the department suspects |
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| 29 | + | fraud or mismanagement of funds. |
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24 | | - | specify that the law applies to nonprofit corporations |
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25 | | - | providing water service to its members or the public; and to |
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26 | | - | authorize the department to conduct an additional one-time |
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27 | | - | audit of a nonprofit corporation if the department suspects |
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28 | | - | fraud or mismanagement of funds. |
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29 | | - | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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30 | | - | Section 1. Act 2022-378 of the 2022 Regular Session, |
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31 | | - | now appearing as Section 41-5A-12.2 of the Code of Alabama |
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32 | | - | 1975, is amended to read as follows: |
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33 | | - | "§41-5A-12.2 |
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34 | | - | (a) After April 14, 2022, the effective date of the |
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35 | | - | act adding this amendatory language, beginning after the close |
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36 | | - | of the then current fiscal year, any nonprofit corporation |
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37 | | - | organized under the laws of this state as a nonprofit |
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38 | | - | corporation that is not incorporated pursuant to Title 11, |
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| 67 | + | specify that the law applies to nonprofit corporations |
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| 68 | + | providing water service to its members or the public; and to |
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| 69 | + | authorize the department to conduct a one-time audit of a |
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| 70 | + | public corporation organized under Article 9 of Chapter 50 of |
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| 71 | + | Title 11, Code of Alabama 1975, providing water service if the |
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| 72 | + | department suspects fraud or mismanagement of funds. |
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| 73 | + | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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| 74 | + | Section 1. Act 2022-378 of the 2022 Regular Session, |
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| 75 | + | now appearing as Section 41-5A-12.2 of the Code of Alabama |
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| 76 | + | 1975, is amended to read as follows: |
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| 77 | + | "§41-5A-12.2 |
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| 78 | + | (a) After April 14, 2022, the effective date of the |
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| 79 | + | act adding this amendatory language, beginning after the close |
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| 80 | + | of the then current fiscal year, any nonprofit corporation |
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| 81 | + | organized under the laws of this state as a nonprofit |
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| 82 | + | corporation that is not incorporated pursuant to Title 11, |
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75 | | - | current fiscal year, any nonprofit corporation that is not |
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76 | | - | incorporated pursuant to Title 11, which provides water |
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77 | | - | service to its members or the public, may be audited or |
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78 | | - | examined one time in addition to the audit provided in |
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79 | | - | subsection (a) by the Department of Examiners of Public |
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80 | | - | Accounts in the same manner as provided in Chapter 5A of Title |
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81 | | - | 41, if the department suspects fraud or mismanagement of funds |
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82 | | - | by the nonprofit corporation. The department may charge a |
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83 | | - | reasonable fee for the audits or examinations. |
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84 | | - | (b)(c) This section does not apply to or affect any |
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85 | | - | public water supply system, waterworks plant, or water |
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86 | | - | distribution system owned or operated by a municipality or |
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87 | | - | county, or by a public corporation, board, or other entity |
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88 | | - | organized, created, or incorporated pursuant to Title 11." |
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89 | | - | Section 2. This act shall become effective immediately |
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90 | | - | following its passage and approval by the Governor, or its |
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91 | | - | otherwise becoming law. |
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| 90 | + | current fiscal year, any public corporation organized, |
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| 91 | + | created, or incorporated under Article 9, Chapter 50 of Title |
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| 92 | + | 11, which provides water service to its members or the public, |
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| 93 | + | may be audited or examined one time by the Department of |
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| 94 | + | Examiners of Public Accounts in the same manner as provided in |
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134 | | - | 56 |
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| 122 | + | 56 SB258 INTRODUCEDSB258 INTRODUCED |
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| 123 | + | Page 3 |
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| 124 | + | Chapter 5A of Title 41, if the department suspects fraud or |
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| 125 | + | mismanagement of funds by the public corporation. The |
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| 126 | + | department may charge a reasonable fee for the audits or |
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| 127 | + | examinations. |
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| 128 | + | (b)(c) This section does not apply to or affect any |
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| 129 | + | public water supply system, waterworks plant, or water |
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| 130 | + | distribution system owned or operated by a municipality or |
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| 131 | + | county, or by a public corporation, board, or other entity |
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| 132 | + | organized, created, or incorporated pursuant to Title 11 , |
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| 133 | + | except as provided in subsection (b) ." |
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| 134 | + | Section 2. This act shall become effective immediately |
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| 135 | + | following its passage and approval by the Governor, or its |
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| 136 | + | otherwise becoming law. |
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