SB258ENROLLED
Page 0
S2OH58-2
By Senator Jones
RFD: County and Municipal Government
First Read: 27-Apr-23
2023 Regular Session
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Enrolled, An Act,
SYNOPSIS:
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
specify that the law applies to nonprofit corporations
providing water service to its members or the public; and to
authorize the department to conduct an additional one-time
audit of a nonprofit corporation 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,
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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 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 in addition to the audit provided in
subsection (a) by the Department of Examiners of Public
Accounts in the same manner as provided in Chapter 5A of Title
41, if the department suspects fraud or mismanagement of funds
by the nonprofit 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."
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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________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB258
Senate 11-May-23
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Amended and passed: 31-May-23
Senate concurred in House amendment 31-May-23
By: Senator Jones
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