AL
Alabama House Bill HB485

Alabama 2024 Regular Session

Alabama House Bill HB485 Compare Versions

Only one version of the bill is available at this time.
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44 NK4HJTT-1
55 By Representative Kiel
66 RFD: State Government
77 First Read: 23-Apr-24
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1414 First Read: 23-Apr-24
1515 SYNOPSIS:
1616 Under existing law, the State Auditor is an
1717 elected position in the executive branch responsible
1818 for monitoring the accounts and records of the
1919 Department of Finance and the State Treasurer and
2020 maintaining property records of all state-owned,
2121 nonconsumable property.
2222 This bill would require property managers of
2323 state agencies to report loss or theft of certain state
2424 property in certain circumstances.
2525 This bill would create a new Division of
2626 Investigations within the Office of the State Auditor
2727 to investigate the loss, theft, or damage of certain
2828 state property and to demand repayment for the value of
2929 lost, stolen, or damaged property due to an act of
3030 negligence.
3131 This bill would authorize the Attorney General
3232 to bring civil actions for cases of negligent loss or
3333 damage of state property.
3434 This bill would authorize the State Auditor to
3535 refer to the Attorney General or an applicable district
3636 attorney any matter where there is a reasonable belief
3737 that a criminal violation has occurred.
3838 This bill would also make nonsubstantive,
3939 technical revisions to update the existing code
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6969 technical revisions to update the existing code
7070 language to current style.
7171 A BILL
7272 TO BE ENTITLED
7373 AN ACT
7474 Relating to the State Auditor; to amend Sections
7575 36-16-1, 36-16-3, 36-16-6, 36-16-8, 36-16-10, and 36-16-11 of
7676 the Code of Alabama 1975; to add Section 36-16-1.1 to the Code
7777 of Alabama 1975; to provide further for the duties and
7878 authorities of the State Auditor; to create a Division of
7979 Investigations within the Office of the State Auditor and
8080 authorize the division to carry out certain investigations and
8181 make referrals to the Attorney General or district attorneys;
8282 to authorize the Attorney General to bring civil actions to
8383 recover amounts in certain circumstances; to update the code
8484 to reflect changes in practices and powers granted to the
8585 State Auditor; and to make nonsubstantive, technical revisions
8686 to update the existing code language to current style.
8787 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
8888 Section 1. Sections 36-16-1, 36-16-3, 36-16-6, 36-16-8,
8989 36-16-10, and 36-16-11, Code of Alabama 1975, are amended to
9090 read as follows:
9191 "§36-16-1
9292 (a) The sole powers, functions and duties of the State
9393 Auditor shall be as followsinclude all of the following :
9494 (1) Those enumerated in the constitution ;.
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124124 (1) Those enumerated in the constitution ;.
125125 (2) The keeping of To keep a seal with the devise, "The
126126 State of Alabama, Auditor's Office ;."
127127 (3) If the Treasurer, in the event of his resignation
128128 or removal, fails to comply with the provisions of this code,
129129 or if he dies or absconds, the stating of his account in the
130130 presence of any person attending on the part of such late
131131 Treasurer and the delivering of the books, papers and moneys
132132 belonging to the Treasury to his successor, taking his receipt
133133 for the same, and recording and filing such receipts and
134134 statement and reporting the same to the next Legislature;
135135 (4) The postauditing of the accounts and records of the
136136 Department of Finance and the Treasurer;
137137 (5)(3)The serving To serve on the boards and
138138 commissions of which he or she is by law an ex officio member ;
139139 and.
140140 (6) The making of a full and complete report to the
141141 Governor at the close of each fiscal year showing the audited
142142 receipts and disbursements of the government for the last
143143 completed fiscal year, as required by the constitution and as
144144 shown by the records and documents in the office of the
145145 Department of Finance, which records shall be audited by him.
146146 The report shall also include the results of his audit of all
147147 taxes and revenues collected and paid into the Treasury and
148148 shall give the results of all other audits made by him. The
149149 report shall be printed and bound with, and as a part of, the
150150 annual financial report of the state prepared by the
151151 Department of Finance. The Auditor shall make reports oftener
152152 upon, and matters pertaining to, his office if required by the
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182182 upon, and matters pertaining to, his office if required by the
183183 Governor or the Legislature.
184184 (b) In the event the State Treasurer resigns or is
185185 removed from office, fails to comply with this chapter, or
186186 dies or leaves office for any reason, the successor to the
187187 treasurer shall submit a detailed report regarding the
188188 transfer of duties to the successor during the next
189189 legislative session following the transfer.
190190 (c) Notwithstanding any law to the contrary, the Office
191191 of the State Auditor may do any of the following:
192192 (1) Not more frequently than once every four calendar
193193 years, beginning October 1, 2024, adjust the threshold value
194194 of state property that must be inventoried pursuant to this
195195 chapter to reflect the cumulative change in the Consumer Price
196196 Index, as published by the United States Department of Labor,
197197 rounded to the nearest one hundred dollars ($100). The State
198198 Auditor shall notify property managers described in Section
199199 36-16-8 of the adjusted threshold value at least 90 days prior
200200 to the effective date of the adjusted threshold value, and the
201201 adjusted threshold values shall apply only to property
202202 acquired after that effective date. Notwithstanding the
203203 foregoing, property managers, upon written request from the
204204 head of the department or agency and approval by the State
205205 Auditor, may make a complete inventory of all used and
206206 acquired property reflecting the adjusted threshold value if
207207 doing so is determined to be in the best interest of the
208208 department or agency.
209209 (2) Investigate loss or damage to state property as
210210 further provided in Section 36-16-1.1. "
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240240 further provided in Section 36-16-1.1. "
241241 "§36-16-3
242242 The State Auditor may employ a chief clerkchief of
243243 staff, whose employment shall be at the pleasure of the State
244244 Auditor. Subject to the provisions of the Merit System, he the
245245 chief of staff may employ principal accountants, account
246246 clerks, and senior stenographers other clerical staff ."
247247 "§36-16-6
248248 The official acts of the chief clerk chief of staff
249249 shall be presumed to be by the authority of, and shall be
250250 taken as done by, the State Auditor, who shall be responsible
251251 for the same."
252252 "§36-16-8
253253 (a) As used in this section, "threshold value" means a
254254 value of five hundred dollars ($500) or the threshold amount
255255 adjusted by the State Auditor pursuant to Section
256256 36-16-1(b)(1).
257257 (b) The Property Inventory Control Division shall
258258 establish a control in the following manner of all
259259 nonconsumable state personal property not exempt under Section
260260 36-16-11.:
261261 (1) The head of each department or agency of the state
262262 shall designate one of its employees as property manager for
263263 the department or agency. Except for books, the property
264264 manager shall make a full and complete inventory of all
265265 nonconsumable personal property and certain other items of
266266 personal property deemed sufficiently important or sensitive
267267 enough by the Property Inventory Control Division to be
268268 included in the inventory of state property of the value of
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298298 included in the inventory of state property of the value of
299299 five hundred dollars ($500) or more that meets or exceeds the
300300 threshold value owned by the state and used or acquired by the
301301 department or agency. The inventory shall show the complete
302302 description, manufacturer's serial number, cost price, date of
303303 purchase, location, and custodial agency, responsible officer ,
304304 or employee, and the state property control marking. A copy of
305305 the inventory shall be submitted to the Property Inventory
306306 Control Division on October 1 and April 1 of each year for
307307 small agencies with read-only access to Asset Works or similar
308308 electronic reporting system used by the Office of the State
309309 Auditor. Each inventory shall show all property acquired since
310310 the date of the last inventory. When any inventory fails to
311311 show any property shown on the previous inventory, then a
312312 complete explanation accounting for the property or the
313313 disposition thereof shall be attached to the inventory and
314314 submitted to the Property Inventory Control Division. All
315315 property managers shall keep at all times in their files a
316316 copy of all inventories submitted to the Property Inventory
317317 Control Division, and the copies shall be subject to
318318 examination by any and all state auditors or employees of the
319319 Department of Examiners of Public Accounts.
320320 (2) Each property manager shall be the custodian of,
321321 and responsible for, all property in his or her department or
322322 agency. When any property is entrusted to other employees or
323323 officers of the department or agency, the property manager
324324 shall require a written receipt of the property so entrusted ,
325325 which. The receipt shall be executed signed by the person
326326 individual receiving the property. In that event, the property
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356356 individual receiving the property. In that event, the property
357357 manager shall be relieved of responsibility of the property ,
358358 and the employee or officer of the department or agency shall
359359 be responsible for the property.
360360 (3) No property, except property being transferred to
361361 the Department of Archives and History under Section 41-6-10,
362362 shall be disposed of, transferred, assigned, or entrusted to
363363 any other department, agency, or employee thereof without the
364364 written permission of the any of the following or his or her
365365 designee:
366366 a. The Director of the Alabama Department of Economic
367367 and Community Affairs , Surplus Property Division or the.
368368 b. The Governor of the State of Alabama or the designee
369369 of either of them .
370370 c. The Chief of the Property Inventory Control Division
371371 of the Office of the State Auditor.
372372 (4)a. Each property manager shall report to the Office
373373 of the State Auditor, on a form and in a manner prescribed by
374374 the State Auditor, the loss or theft of any property required
375375 to be inventoried pursuant to this section not more than 30
376376 days after the property manager learns of the loss or theft.
377377 b. The Property Inventory Control Division shall report
378378 the loss or theft to the Division of Investigations, in a
379379 manner prescribed by the State Auditor, and provide a brief
380380 summary detailing the circumstances surrounding the loss,
381381 regardless of whether the loss or theft was marked
382382 "non-negligent."
383383 (4)(5)Biannually, Every two years, the Property
384384 Inventory Control Division shall conduct an inventory of all
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414414 Inventory Control Division shall conduct an inventory of all
415415 such state personal property , excluding historical materials
416416 in the custody of the Department of Archives and History,
417417 holding every officer or employee strictly accountable for all
418418 personal property assigned to his or her custody.
419419 (5)(6) No later than November 30 of each new fiscal
420420 year, the State Auditor shall report in writing to the
421421 Governor all losses and missing items of state property valued
422422 at more than five hundred dollars ($500) that meet or exceed
423423 the threshold value as revealed by the most recent inventory
424424 of state personal property. No later than November 30 of each
425425 fiscal year, the State Auditor shall publish on the website of
426426 the Office of the State Auditor the Annual Production Report
427427 and Losses Reports for the prior fiscal year. Quarterly Losses
428428 Reports shall be published on the website within 30 days of
429429 the close of each quarter.
430430 (6)(7) Whenever any property manager ceases for any
431431 reason to be the property manager of his or her department or
432432 agency, the director of the department or agency , or the
433433 supervisor of the property manager, shall immediately notify
434434 in writing the Property Inventory Control Division. The
435435 division shall immediately check the inventories of all
436436 property assigned to the property manager in the department or
437437 agency, and the successor to the property manager shall
438438 execute a written receipt for all property received by him or
439439 her or coming into his or her custody or control. The last
440440 payment of salary due the property manager shall be withheld
441441 until a complete check of the inventory of the property has
442442 been made and approved. In the event of any shortages, the
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472472 been made and approved. In the event of any shortages, the
473473 property manager shall may be held strictly accountable based
474474 on internal agency written procedures . Notwithstanding the
475475 foregoing, the property manager shall not be held accountable
476476 for property entrusted to any other employee or officer of the
477477 department or agency and for which he or she holds the written
478478 receipt of the employee or officer.
479479 (c) The State Auditor or, if delegated by the State
480480 Auditor, the Chief of the Property Inventory Control Division,
481481 may review and analyze the internal policies relating to the
482482 inventorying of state property of a state department, office,
483483 bureau, board, or agency to ensure that state property is
484484 being properly inventoried. Upon receiving a written request
485485 from the State Auditor, a property manager shall submit the
486486 internal policies to the State Auditor for review. "
487487 "§36-16-10
488488 (a) The Chief of the Property Inventory Control
489489 Division shall have the authority to carry out the provisions
490490 of Sections 36-16-8 through 36-16-11 , and shall require that
491491 each department, office, bureau, board , or agency of the state
492492 carry out fully the provisions of Sections 36-16-8 through
493493 36-16-11 applicable to such the department, office, bureau,
494494 board, or agency.
495495 (b) In the event the Chief of the Property Inventory
496496 Control Division neglects to perform the duties imposed upon
497497 him or her by Sections 36-16-8 through 36-16-11, the State
498498 Auditor shall report such neglect to the personnel board State
499499 Personnel Board, which and the board shall administer such
500500 disciplinary action against the chief of the division,
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530530 disciplinary action against the chief of the division,
531531 including the right to discharge him or her, as the board
532532 deems proper under the circumstances.
533533 (c) In the event the head of any department or officer
534534 in charge of any office, bureau, board , or agency of the state
535535 neglects to perform the duties imposed upon him or her by
536536 Sections 36-16-8 through 36-16-11, he or she shall be liable
537537 for the sum of $5.00 in the amount of five dollars ($5) for
538538 each day suchthe neglect continues and for the value of any
539539 and all personal property losses to the state as a result of
540540 such the neglect."
541541 "§36-16-11
542542 There is hereby expressly exempt from Sections 36-16-8
543543 to 36-16-10, inclusive, all livestock, of the following:
544544 (1) Livestock, animals, and farm and agricultural
545545 products.
546546 (2) and property Property owned or used by, or in
547547 connection with, or under the control of, all public schools,
548548 universities, colleges, trade schools, Alabama Institute for
549549 Deaf and Blind, State Library Service, and all any public
550550 preK-12 school, state preK-12 school, or two-year or four-year
551551 public institution of higher education.
552552 (3) Property owned or used by, or in connection with or
553553 under the control of, any facility owned or operated by the
554554 Department of Mental Health which provides mental health or
555555 psychiatric care services.
556556 (4) Any fire control or fire rescue equipment acquired
557557 by the Alabama Forestry Commission from sources other than
558558 state agencies and subsequently donated to volunteer fire
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588588 state agencies and subsequently donated to volunteer fire
589589 departments pursuant to Section 9-3-19 ; provided, Sections
590590 36-16-8 to 36-16-10, inclusive, shall not apply to the Alabama
591591 hospitals for the insane and the Partlow State School and
592592 Hospital."
593593 Section 2. Section 36-16-1.1 is added to the Code of
594594 Alabama 1975, to read as follows:
595595 §36-16-1.1
596596 (a) For purposes of this section, the term "state
597597 property" refers to any state property that meets or exceeds
598598 the threshold value, as defined in Section 36-16-8.
599599 (b) There is created within the Office of State Auditor
600600 the Division of Investigations which shall be responsible for
601601 carrying out investigations described in this section. The
602602 division may initiate an investigation upon a request of the
603603 State Auditor or the Property Inventory Control Division or,
604604 upon receiving notice, whether through its website or through
605605 another channel of communication, of acts of negligence in the
606606 loss, theft, or damage of state property.
607607 (c)(1) The Division of Investigation may investigate
608608 any instance of lost, stolen, or damaged state property,
609609 including instances where marked as "non-negligent" by the
610610 custodial agency. If in carrying out a full investigation,
611611 including the procuring of evidence, the division confirms
612612 that the loss, theft, or damage was not negligent, the
613613 division shall issue a finding of "non-negligence."
614614 (2) If the division finds that the loss, theft, or
615615 damage was caused by negligence or willful neglect, the State
616616 Auditor may compel the offending public official or public
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646646 Auditor may compel the offending public official or public
647647 employee to pay the value of the lost, stolen, or damaged
648648 property, and if such amount is not recovered, the State
649649 Auditor shall certify the facts and amount due to the Attorney
650650 General. The Attorney General may bring civil action in the
651651 name of the state against the employee.
652652 (d) Governmental entities, including any agency or
653653 board of the state or political subdivision thereof that is
654654 audited by the State Auditor, shall cooperate with and provide
655655 assistance to the Division of Investigations by providing
656656 necessary information to allow the division to carry out its
657657 investigations in a timely manner.
658658 (e) The Division of Investigations shall refer to the
659659 Attorney General or the appropriate district attorney any
660660 matter where there is a reasonable belief that a criminal
661661 violation has occurred.
662662 Section 3. This act shall become effective on October
663663 1, 2024.
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