AL
Alabama Senate Bill SB274

Alabama 2024 Regular Session

Alabama Senate Bill SB274 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 SB274INTRODUCED
22 Page 0
33 SB274
44 MALC11W-1
55 By Senators Jones, Gudger, Givhan, Melson, Shelnutt, Stutts
66 RFD: Fiscal Responsibility and Economic Development
77 First Read: 02-Apr-24
88 1
99 2
1010 3
1111 4
1212 5 MALC11W-1 03/21/2024 TRP (L)tgw 2023-3483
1313 Page 1
1414 First Read: 02-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
4040 1
4141 2
4242 3
4343 4
4444 5
4545 6
4646 7
4747 8
4848 9
4949 10
5050 11
5151 12
5252 13
5353 14
5454 15
5555 16
5656 17
5757 18
5858 19
5959 20
6060 21
6161 22
6262 23
6363 24
6464 25
6565 26
6666 27
6767 28 SB274 INTRODUCED
6868 Page 2
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 ;.
9595 29
9696 30
9797 31
9898 32
9999 33
100100 34
101101 35
102102 36
103103 37
104104 38
105105 39
106106 40
107107 41
108108 42
109109 43
110110 44
111111 45
112112 46
113113 47
114114 48
115115 49
116116 50
117117 51
118118 52
119119 53
120120 54
121121 55
122122 56 SB274 INTRODUCED
123123 Page 3
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; In
135135 the event the State Treasurer resigns or is removed from
136136 office, fails to comply with this code, or dies or leaves
137137 office for any reason, to deliver the books, papers, and
138138 monies belonging to the State Treasurer to his or her
139139 successor, record and file any receipts and statements
140140 relating to the transfer, and submit a comprehensive report on
141141 the transfer to the Legislature during the next legislative
142142 session.
143143 (4) The postauditing of the accounts and records of the
144144 Department of Finance and the Treasurer;
145145 (5)(4)The serving To serve on the boards and
146146 commissions of which he or she is by law an ex officio member ;
147147 and.
148148 (6) The making of a full and complete report to the
149149 Governor at the close of each fiscal year showing the audited
150150 receipts and disbursements of the government for the last
151151 completed fiscal year, as required by the constitution and as
152152 shown by the records and documents in the office of the
153153 57
154154 58
155155 59
156156 60
157157 61
158158 62
159159 63
160160 64
161161 65
162162 66
163163 67
164164 68
165165 69
166166 70
167167 71
168168 72
169169 73
170170 74
171171 75
172172 76
173173 77
174174 78
175175 79
176176 80
177177 81
178178 82
179179 83
180180 84 SB274 INTRODUCED
181181 Page 4
182182 shown by the records and documents in the office of the
183183 Department of Finance, which records shall be audited by him.
184184 The report shall also include the results of his audit of all
185185 taxes and revenues collected and paid into the Treasury and
186186 shall give the results of all other audits made by him. The
187187 report shall be printed and bound with, and as a part of, the
188188 annual financial report of the state prepared by the
189189 Department of Finance. The Auditor shall make reports oftener
190190 upon, and matters pertaining to, his office if required by the
191191 Governor or the Legislature.
192192 (b) Notwithstanding any law to the contrary, the Office
193193 of the State Auditor may do any of the following:
194194 (1) No more frequently than once every two calendar
195195 years, adjust the threshold value of state property that must
196196 be inventoried pursuant to this chapter to reflect the
197197 cumulative change in the Consumer Price Index, as published by
198198 the United States Department of Labor, rounded to the nearest
199199 five dollars ($5). The State Auditor shall notify property
200200 managers described in Section 36-16-8 of the adjusted
201201 threshold value at least 90 days prior to the effective date
202202 of the adjusted threshold value.
203203 (2) Investigate loss or damage to state property as
204204 further provided in Section 36-16-1.1. "
205205 "§36-16-3
206206 The State Auditor may employ a chief clerkchief of
207207 staff, whose employment shall be at the pleasure of the State
208208 Auditor. Subject to the provisions of the Merit System, he the
209209 chief of staff may employ principal accountants, account
210210 clerks, and senior stenographers other clerical staff ."
211211 85
212212 86
213213 87
214214 88
215215 89
216216 90
217217 91
218218 92
219219 93
220220 94
221221 95
222222 96
223223 97
224224 98
225225 99
226226 100
227227 101
228228 102
229229 103
230230 104
231231 105
232232 106
233233 107
234234 108
235235 109
236236 110
237237 111
238238 112 SB274 INTRODUCED
239239 Page 5
240240 clerks, and senior stenographers other clerical staff ."
241241 "§36-16-6
242242 The official acts of the chief clerk chief of staff
243243 shall be presumed to be by the authority of, and shall be
244244 taken as done by, the State Auditor, who shall be responsible
245245 for the same."
246246 "§36-16-8
247247 (a) As used in this section, "threshold value" means a
248248 value of five hundred dollars ($500) or the threshold amount
249249 adjusted by the State Auditor pursuant to Section
250250 36-16-1(b)(1).
251251 (b) The Property Inventory Control Division shall
252252 establish a control in the following manner of all
253253 nonconsumable state personal property not exempt under Section
254254 36-16-11.:
255255 (1) The head of each department or agency of the state
256256 shall designate one of its employees as property manager for
257257 the department or agency. Except for books, the property
258258 manager shall make a full and complete inventory of all
259259 nonconsumable personal property and certain other items of
260260 personal property deemed sufficiently important or sensitive
261261 enough by the Property Inventory Control Division to be
262262 included in the inventory of state property of the value of
263263 five hundred dollars ($500) or more that meets or exceeds the
264264 threshold value owned by the state and used or acquired by the
265265 department or agency. The inventory shall show the complete
266266 description, manufacturer's serial number, cost price, date of
267267 purchase, location, and custodial agency, responsible officer ,
268268 or employee, and the state property control marking. A copy of
269269 113
270270 114
271271 115
272272 116
273273 117
274274 118
275275 119
276276 120
277277 121
278278 122
279279 123
280280 124
281281 125
282282 126
283283 127
284284 128
285285 129
286286 130
287287 131
288288 132
289289 133
290290 134
291291 135
292292 136
293293 137
294294 138
295295 139
296296 140 SB274 INTRODUCED
297297 Page 6
298298 or employee, and the state property control marking. A copy of
299299 the inventory shall be submitted to the Property Inventory
300300 Control Division on October 1 and April 1 of each year for
301301 small agencies with read-only access to Asset Works or similar
302302 electronic reporting system used by the Office of the State
303303 Auditor. Each inventory shall show all property acquired since
304304 the date of the last inventory. When any inventory fails to
305305 show any property shown on the previous inventory, then a
306306 complete explanation accounting for the property or the
307307 disposition thereof shall be attached to the inventory and
308308 submitted to the Property Inventory Control Division. All
309309 property managers shall keep at all times in their files a
310310 copy of all inventories submitted to the Property Inventory
311311 Control Division, and the copies shall be subject to
312312 examination by any and all state auditors or employees of the
313313 Department of Examiners of Public Accounts.
314314 (2) Each property manager shall be the custodian of,
315315 and responsible for, all property in his or her department or
316316 agency. When any property is entrusted to other employees or
317317 officers of the department or agency, the property manager
318318 shall require a written receipt of the property so entrusted ,
319319 which. The receipt shall be executed signed by the person
320320 individual receiving the property. In that event, the property
321321 manager shall be relieved of responsibility of the property ,
322322 and the employee or officer of the department or agency shall
323323 be responsible for the property.
324324 (3) No property, except property being transferred to
325325 the Department of Archives and History under Section 41-6-10,
326326 shall be disposed of, transferred, assigned, or entrusted to
327327 141
328328 142
329329 143
330330 144
331331 145
332332 146
333333 147
334334 148
335335 149
336336 150
337337 151
338338 152
339339 153
340340 154
341341 155
342342 156
343343 157
344344 158
345345 159
346346 160
347347 161
348348 162
349349 163
350350 164
351351 165
352352 166
353353 167
354354 168 SB274 INTRODUCED
355355 Page 7
356356 shall be disposed of, transferred, assigned, or entrusted to
357357 any other department, agency, or employee thereof without the
358358 written permission of the any of the following or his or her
359359 designee:
360360 a. The Director of the Alabama Department of Economic
361361 and Community Affairs , Surplus Property Division or the.
362362 b. The Governor of the State of Alabama or the designee
363363 of either of them .
364364 c. The Chief of the Property Inventory Control Division
365365 of the Office of the State Auditor.
366366 (4)a. Each property manager shall report to the Office
367367 of the State Auditor, on a form and in a manner prescribed by
368368 the State Auditor, the loss or theft of any property required
369369 to be inventoried pursuant to this section not more than 30
370370 days after the property manager learns of the loss or theft.
371371 b. The Property Inventory Control Division shall report
372372 the loss or theft to the Division of Investigations, in a
373373 manner prescribed by the State Auditor, and provide a brief
374374 summary detailing the circumstances surrounding the loss,
375375 regardless of whether the loss or theft was marked
376376 "non-negligent."
377377 (4)(5)Biannually, Every two years, the Property
378378 Inventory Control Division shall conduct an inventory of all
379379 such state personal property , excluding historical materials
380380 in the custody of the Department of Archives and History,
381381 holding every officer or employee strictly accountable for all
382382 personal property assigned to his or her custody.
383383 (5)(6) No later than November 30 of each new fiscal
384384 year, the State Auditor shall report in writing to the
385385 169
386386 170
387387 171
388388 172
389389 173
390390 174
391391 175
392392 176
393393 177
394394 178
395395 179
396396 180
397397 181
398398 182
399399 183
400400 184
401401 185
402402 186
403403 187
404404 188
405405 189
406406 190
407407 191
408408 192
409409 193
410410 194
411411 195
412412 196 SB274 INTRODUCED
413413 Page 8
414414 year, the State Auditor shall report in writing to the
415415 Governor all losses and missing items of state property valued
416416 at more than five hundred dollars ($500) that meet or exceed
417417 the threshold value as revealed by the most recent inventory
418418 of state personal property. No later than November 30 of each
419419 fiscal year, the State Auditor shall publish on the website of
420420 the Office of the State Auditor the Annual Production Report
421421 and Losses Reports for the prior fiscal year. Quarterly Losses
422422 Reports shall be published on the website within 30 days of
423423 the close of each quarter.
424424 (6)(7) Whenever any property manager ceases for any
425425 reason to be the property manager of his or her department or
426426 agency, the director of the department or agency , or the
427427 supervisor of the property manager, shall immediately notify
428428 in writing the Property Inventory Control Division. The
429429 division shall immediately check the inventories of all
430430 property assigned to the property manager in the department or
431431 agency, and the successor to the property manager shall
432432 execute a written receipt for all property received by him or
433433 her or coming into his or her custody or control. The last
434434 payment of salary due the property manager shall be withheld
435435 until a complete check of the inventory of the property has
436436 been made and approved. In the event of any shortages, the
437437 property manager shall may be held strictly accountable based
438438 on internal agency written procedures . Notwithstanding the
439439 foregoing, the property manager shall not be held accountable
440440 for property entrusted to any other employee or officer of the
441441 department or agency and for which he or she holds the written
442442 receipt of the employee or officer.
443443 197
444444 198
445445 199
446446 200
447447 201
448448 202
449449 203
450450 204
451451 205
452452 206
453453 207
454454 208
455455 209
456456 210
457457 211
458458 212
459459 213
460460 214
461461 215
462462 216
463463 217
464464 218
465465 219
466466 220
467467 221
468468 222
469469 223
470470 224 SB274 INTRODUCED
471471 Page 9
472472 receipt of the employee or officer.
473473 (c) The State Auditor or, if delegated by the State
474474 Auditor, the Chief of the Property Inventory Control Division,
475475 may review and analyze the internal policies relating to the
476476 inventorying of state property of a state department, office,
477477 bureau, board, or agency to ensure that state property is
478478 being properly inventoried. Upon receiving a written request
479479 from the State Auditor, a property manager shall submit the
480480 internal policies to the State Auditor for review. "
481481 "§36-16-10
482482 (a) The Chief of the Property Inventory Control
483483 Division shall have the authority to carry out the provisions
484484 of Sections 36-16-8 through 36-16-11 , and shall require that
485485 each department, office, bureau, board , or agency of the state
486486 carry out fully the provisions of Sections 36-16-8 through
487487 36-16-11 applicable to such the department, office, bureau,
488488 board, or agency.
489489 (b) In the event the Chief of the Property Inventory
490490 Control Division neglects to perform the duties imposed upon
491491 him or her by Sections 36-16-8 through 36-16-11, the State
492492 Auditor shall report such neglect to the personnel board State
493493 Personnel Board, which and the board shall administer such
494494 disciplinary action against the chief of the division,
495495 including the right to discharge him or her, as the board
496496 deems proper under the circumstances.
497497 (c) In the event the head of any department or officer
498498 in charge of any office, bureau, board , or agency of the state
499499 neglects to perform the duties imposed upon him or her by
500500 Sections 36-16-8 through 36-16-11, he or she shall be liable
501501 225
502502 226
503503 227
504504 228
505505 229
506506 230
507507 231
508508 232
509509 233
510510 234
511511 235
512512 236
513513 237
514514 238
515515 239
516516 240
517517 241
518518 242
519519 243
520520 244
521521 245
522522 246
523523 247
524524 248
525525 249
526526 250
527527 251
528528 252 SB274 INTRODUCED
529529 Page 10
530530 Sections 36-16-8 through 36-16-11, he or she shall be liable
531531 for the sum of $5.00 in the amount of five dollars ($5) for
532532 each day suchthe neglect continues and for the value of any
533533 and all personal property losses to the state as a result of
534534 such the neglect."
535535 "§36-16-11
536536 There is hereby expressly exempt from Sections 36-16-8
537537 to 36-16-10, inclusive, all livestock, of the following:
538538 (1) Livestock, animals, and farm and agricultural
539539 products.
540540 (2) and property Property owned or used by, or in
541541 connection with, or under the control of, all public schools,
542542 universities, colleges, trade schools, Alabama Institute for
543543 Deaf and Blind, State Library Service, and all any public
544544 preK-12 school, state preK-12 school, or two-year or four-year
545545 public institution of higher education.
546546 (3) Property owned or used by, or in connection with or
547547 under the control of, any facility owned or operated by the
548548 Department of Mental Health which provides mental health or
549549 psychiatric care services.
550550 (4) Any fire control or fire rescue equipment acquired
551551 by the Alabama Forestry Commission from sources other than
552552 state agencies and subsequently donated to volunteer fire
553553 departments pursuant to Section 9-3-19 ; provided, Sections
554554 36-16-8 to 36-16-10, inclusive, shall not apply to the Alabama
555555 hospitals for the insane and the Partlow State School and
556556 Hospital."
557557 Section 2. Section 36-16-1.1 is added to the Code of
558558 Alabama 1975, to read as follows:
559559 253
560560 254
561561 255
562562 256
563563 257
564564 258
565565 259
566566 260
567567 261
568568 262
569569 263
570570 264
571571 265
572572 266
573573 267
574574 268
575575 269
576576 270
577577 271
578578 272
579579 273
580580 274
581581 275
582582 276
583583 277
584584 278
585585 279
586586 280 SB274 INTRODUCED
587587 Page 11
588588 Alabama 1975, to read as follows:
589589 §36-16-1.1
590590 (a) For purposes of this section, the term "state
591591 property" refers to any state property that meets or exceeds
592592 the threshold value, as defined in Section 36-16-8.
593593 (b) There is created within the Office of State Auditor
594594 the Division of Investigations which shall be responsible for
595595 carrying out investigations described in this section. The
596596 division may initiate an investigation upon a request of the
597597 State Auditor or the Property Inventory Control Division or,
598598 upon receiving notice, whether through its website or through
599599 another channel of communication, of acts of negligence in the
600600 loss, theft, or damage of state property.
601601 (c)(1) The Division of Investigation may investigate
602602 any instance of lost, stolen, or damaged state property,
603603 including instances where marked as "non-negligent" by the
604604 custodial agency. If in carrying out a full investigation,
605605 including the procuring of evidence, the division confirms
606606 that the loss, theft, or damage was not negligent, the
607607 division shall issue a finding of "non-negligence."
608608 (2) If the division finds that the loss, theft, or
609609 damage was caused by negligence or willful neglect, the State
610610 Auditor may compel the offending public official or public
611611 employee to pay the value of the lost, stolen, or damaged
612612 property, and if such amount is not recovered, the State
613613 Auditor shall certify the facts and amount due to the Attorney
614614 General. The Attorney General may bring civil action in the
615615 name of the state against the employee.
616616 (d) Governmental entities, including any agency or
617617 281
618618 282
619619 283
620620 284
621621 285
622622 286
623623 287
624624 288
625625 289
626626 290
627627 291
628628 292
629629 293
630630 294
631631 295
632632 296
633633 297
634634 298
635635 299
636636 300
637637 301
638638 302
639639 303
640640 304
641641 305
642642 306
643643 307
644644 308 SB274 INTRODUCED
645645 Page 12
646646 (d) Governmental entities, including any agency or
647647 board of the state or political subdivision thereof that is
648648 audited by the State Auditor, shall cooperate with and provide
649649 assistance to the Division of Investigations by providing
650650 necessary information to allow the division to carry out its
651651 investigations in a timely manner.
652652 (e) The Division of Investigations shall refer to the
653653 Attorney General or the appropriate district attorney any
654654 matter where there is a reasonable belief that a criminal
655655 violation has occurred.
656656 Section 3. This act shall become effective on October
657657 1, 2026.
658658 309
659659 310
660660 311
661661 312
662662 313
663663 314
664664 315
665665 316
666666 317
667667 318
668668 319