Alabama 2025 Regular Session

Alabama House Bill HB562 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	HB562INTRODUCED
2	2	Page 0
3	3	HB562
4	4	UKRTXXX-1
5	5	By Representative Kiel
6	6	RFD: State Government
7	7	First Read: 10-Apr-25
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12	12	5 UKRTXXX-1 02/05/2025 TRP (L)bm 2025-477
13	13	Page 1
14	14	First Read: 10-Apr-25
15	15	SYNOPSIS:
16	16	Under existing law, the State Auditor is an
17	17	elected position in the executive branch responsible
18	18	for monitoring the accounts and records of the
19	19	Department of Finance and the State Treasurer and
20	20	maintaining property records of all state-owned,
21	21	nonconsumable property.
22	22	This bill would require property managers of
23	23	state agencies to report loss or theft of certain state
24	24	property in certain circumstances.
25	25	This bill would provide an exception to the
26	26	standard property inventory process conducted by the
27	27	State Auditor for all Department of Corrections and
28	28	Department of Youth Services secured facility property
29	29	that is located behind security bars.
30	30	This bill would create a new Division of
31	31	Property Investigations within the Office of the State
32	32	Auditor to investigate the loss, theft, or damage of
33	33	certain state property and to demand repayment for the
34	34	value of lost, stolen, or damaged property due to an
35	35	act of negligence.
36	36	This bill would authorize the Attorney General
37	37	to bring civil actions for cases of negligent loss or
38	38	damage of state property.
39	39	This bill would authorize the State Auditor to
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69	69	This bill would authorize the State Auditor to
70	70	refer to the Attorney General or an applicable district
71	71	attorney any matter where there is a reasonable belief
72	72	that a criminal violation has occurred.
73	73	This bill would also make nonsubstantive,
74	74	technical revisions to update the existing code
75	75	language to current style.
76	76	A BILL
77	77	TO BE ENTITLED
78	78	AN ACT
79	79	Relating to the State Auditor; to amend Sections
80	80	36-16-1, 36-16-3, 36-16-6, 36-16-8, 36-16-10, and 36-16-11 of
81	81	the Code of Alabama 1975; to add Section 36-16-1.1 to the Code
82	82	of Alabama 1975; to provide further for the duties and
83	83	authorities of the State Auditor; to provide an exception to
84	84	the standard inventory process for Department of Corrections
85	85	and Department of Youth Services' secured facility property
86	86	located behind security bars; to create a Division of Property
87	87	Investigations within the Office of the State Auditor and
88	88	authorize the division to carry out certain investigations of
89	89	lost property and make referrals to the Attorney General or
90	90	district attorneys; to authorize the Attorney General to bring
91	91	civil actions to recover amounts in certain circumstances; to
92	92	update the code to reflect changes in practices and powers
93	93	granted to the State Auditor; and to make nonsubstantive,
94	94	technical revisions to update the existing code language to
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124	124	technical revisions to update the existing code language to
125	125	current style.
126	126	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
127	127	Section 1. Sections 36-16-1, 36-16-3, 36-16-6, 36-16-8,
128	128	36-16-10, and 36-16-11, Code of Alabama 1975, are amended to
129	129	read as follows:
130	130	"§36-16-1
131	131	(a) The sole powers, functions and duties of the State
132	132	Auditor shall be as followsinclude all of the following :
133	133	(1) Those enumerated in the constitution ;.
134	134	(2) The keeping of To keep a seal with the devise, "The
135	135	State of Alabama, Auditor's Office ;."
136	136	(3) If the Treasurer, in the event of his resignation
137	137	or removal, fails to comply with the provisions of this code,
138	138	or if he dies or absconds, the stating of his account in the
139	139	presence of any person attending on the part of such late
140	140	Treasurer and the delivering of the books, papers and moneys
141	141	belonging to the Treasury to his successor, taking his receipt
142	142	for the same, and recording and filing such receipts and
143	143	statement and reporting the same to the next Legislature;
144	144	(4) The postauditing of the accounts and records of the
145	145	Department of Finance and the Treasurer;
146	146	(5)(3)The serving To serve on the boards and
147	147	commissions of which he or she is by law an ex officio member ;
148	148	and.
149	149	(6) The making of a full and complete report to the
150	150	Governor at the close of each fiscal year showing the audited
151	151	receipts and disbursements of the government for the last
152	152	completed fiscal year, as required by the constitution and as
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182	182	completed fiscal year, as required by the constitution and as
183	183	shown by the records and documents in the office of the
184	184	Department of Finance, which records shall be audited by him.
185	185	The report shall also include the results of his audit of all
186	186	taxes and revenues collected and paid into the Treasury and
187	187	shall give the results of all other audits made by him. The
188	188	report shall be printed and bound with, and as a part of, the
189	189	annual financial report of the state prepared by the
190	190	Department of Finance. The Auditor shall make reports oftener
191	191	upon, and matters pertaining to, his office if required by the
192	192	Governor or the Legislature.
193	193	(b) In the event the State Treasurer resigns or is
194	194	removed from office, fails to comply with this chapter, or
195	195	dies or leaves office for any reason, the successor to the
196	196	treasurer shall submit a detailed report regarding the
197	197	transfer of duties to the successor during the next
198	198	legislative session following the transfer.
199	199	(c) Notwithstanding any law to the contrary, the Office
200	200	of the State Auditor may do any of the following:
201	201	(1) Not more frequently than once every four calendar
202	202	years, beginning October 1, 2025, adjust the threshold value
203	203	of state property that must be inventoried pursuant to this
204	204	chapter to reflect the cumulative change in the Consumer Price
205	205	Index, as published by the United States Department of Labor,
206	206	rounded to the nearest one hundred dollars ($100). The State
207	207	Auditor shall notify property managers described in Section
208	208	36-16-8 of the adjusted threshold value at least 90 days prior
209	209	to the effective date of the adjusted threshold value, and the
210	210	adjusted threshold values shall apply only to property
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240	240	adjusted threshold values shall apply only to property
241	241	acquired after that effective date. Notwithstanding the
242	242	foregoing, property managers, upon written request from the
243	243	head of the department or agency and approval by the State
244	244	Auditor, may make a complete inventory of all used and
245	245	acquired property reflecting the adjusted threshold value if
246	246	doing so is determined to be in the best interest of the
247	247	department or agency.
248	248	(2) Investigate loss or damage to state property as
249	249	further provided in Section 36-16-1.1. "
250	250	"§36-16-3
251	251	The State Auditor may employ a chief clerkchief of
252	252	staff, whose employment shall be at the pleasure of the State
253	253	Auditor. Subject to the provisions of the Merit System, he the
254	254	chief of staff may employ principal accountants, account
255	255	clerks, and senior stenographers other clerical staff ."
256	256	"§36-16-6
257	257	The official acts of the chief clerk chief of staff
258	258	shall be presumed to be by the authority of, and shall be
259	259	taken as done by, the State Auditor, who shall be responsible
260	260	for the same."
261	261	"§36-16-8
262	262	(a) As used in this section, "threshold value" means a
263	263	value of five hundred dollars ($500) or the threshold amount
264	264	adjusted by the State Auditor pursuant to Section 36-16-1.
265	265	(b) The Property Inventory Control Division shall
266	266	establish a control in the following manner of all
267	267	nonconsumable state personal property not exempt under Section
268	268	36-16-11.:
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298	298	36-16-11.:
299	299	(1) The head of each department or agency of the state
300	300	shall designate one of its employees as property manager for
301	301	the department or agency. Except for books, the property
302	302	manager shall make a full and complete inventory of all
303	303	nonconsumable personal property and certain other items of
304	304	personal property deemed sufficiently important or sensitive
305	305	enough by the Property Inventory Control Division to be
306	306	included in the inventory of state property of the value of
307	307	five hundred dollars ($500) or more that meets or exceeds the
308	308	threshold value owned by the state and used or acquired by the
309	309	department or agency. The inventory shall show the complete
310	310	description, manufacturer's serial number, cost price, date of
311	311	purchase, location, and custodial agency, responsible officer ,
312	312	or employee, and the state property control marking. A copy of
313	313	the inventory shall be submitted to the Property Inventory
314	314	Control Division on October 1 and April 1 of each year for
315	315	small agencies with read-only access to Asset Works or similar
316	316	electronic reporting systems used by the Office of the State
317	317	Auditor. Each inventory shall show all property acquired since
318	318	the date of the last inventory. When any inventory fails to
319	319	show any property shown on the previous inventory, then a
320	320	complete explanation accounting for the property or the
321	321	disposition thereof shall be attached to the inventory and
322	322	submitted to the Property Inventory Control Division. All
323	323	property managers shall keep at all times in their files a
324	324	copy of all inventories submitted to the Property Inventory
325	325	Control Division, and the copies shall be subject to
326	326	examination by any and all state auditors or employees of the
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356	356	examination by any and all state auditors or employees of the
357	357	Department of Examiners of Public Accounts.
358	358	(2) Each property manager shall be the custodian of,
359	359	and responsible for, all property in his or her department or
360	360	agency. When any property is entrusted to other employees or
361	361	officers of the department or agency, the property manager
362	362	shall require a written receipt of the property so entrusted ,
363	363	which. The receipt shall be executed signed by the person
364	364	individual receiving the property. In that event, the property
365	365	manager shall be relieved of responsibility of the property ,
366	366	and the employee or officer of the department or agency shall
367	367	be responsible for the property.
368	368	(3) No property, except property being transferred to
369	369	the Department of Archives and History under Section 41-6-10,
370	370	shall be disposed of, transferred, assigned, or entrusted to
371	371	any other department, agency, or employee thereof without the
372	372	written permission of the any of the following or his or her
373	373	designee:
374	374	a. The Director of the Alabama Department of Economic
375	375	and Community Affairs , Surplus Property Division or the.
376	376	b. The Governor of the State of Alabama or the designee
377	377	of either of them .
378	378	c. The Chief of the Property Inventory Control Division
379	379	of the Office of the State Auditor.
380	380	(4)a. Each property manager shall report to the Office
381	381	of the State Auditor, on a form and in a manner prescribed by
382	382	the State Auditor, the loss or theft of any property required
383	383	to be inventoried pursuant to this section not more than 30
384	384	days after the property manager learns of the loss or theft.
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414	414	days after the property manager learns of the loss or theft.
415	415	b. The Property Inventory Control Division shall report
416	416	the loss or theft to the Division of Property Investigations,
417	417	in a manner prescribed by the State Auditor, and provide a
418	418	brief summary detailing the circumstances surrounding the
419	419	loss, regardless of whether the loss or theft was marked
420	420	"non-negligent."
421	421	(4)(5)a.Biannually, Every two years, the Property
422	422	Inventory Control Division shall conduct an inventory of all
423	423	such state personal property , excluding: (i) historical
424	424	materials in the custody of the Department of Archives and
425	425	History,holding every officer or employee strictly
426	426	accountable for all personal property assigned to his or her
427	427	custody; and (ii) property located behind security bars at any
428	428	Department of Corrections and Department of Youth Services
429	429	facility subject to paragraph b .
430	430	b. The Department of Corrections and the Department of
431	431	Youth Services operate highly secured facilities. Dangerous
432	432	conditions within a facility may impede the State Auditor's
433	433	staff's ability to gain the necessary security clearance for
434	434	physical entry into a facility to conduct the required audit.
435	435	The State Auditor shall permit an alternative audit method in
436	436	all areas located behind bars within a secure facility. All
437	437	state property located within a Department of Corrections or
438	438	Department of Youth Services facility that is not located
439	439	behind bars, shall be audited according to normal processes.
440	440	(5)(6) No later than November 30 of each new fiscal
441	441	year, the State Auditor shall report in writing to the
442	442	Governor all losses and missing items of state property valued
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472	472	Governor all losses and missing items of state property valued
473	473	at more than five hundred dollars ($500) that meet or exceed
474	474	the threshold value as revealed by the most recent inventory
475	475	of state personal property. No later than November 30 of each
476	476	fiscal year, the State Auditor shall publish on the website of
477	477	the Office of the State Auditor the Annual Production Report
478	478	and Losses Reports for the prior fiscal year. Quarterly Losses
479	479	Reports shall be published on the website within 30 days of
480	480	the close of each quarter.
481	481	(6)(7) Whenever any property manager ceases for any
482	482	reason to be the property manager of his or her department or
483	483	agency, the director of the department or agency , or the
484	484	supervisor of the property manager, shall immediately notify
485	485	in writing the Property Inventory Control Division. The
486	486	division shall immediately check the inventories of all
487	487	property assigned to the property manager in the department or
488	488	agency, and the successor to the property manager shall
489	489	execute a written receipt for all property received by him or
490	490	her or coming into his or her custody or control. The last
491	491	payment of salary due the property manager shall be withheld
492	492	until a complete check of the inventory of the property has
493	493	been made and approved. In the event of any shortages, the
494	494	property manager shall may be held strictly accountable based
495	495	on internal agency written procedures . Notwithstanding the
496	496	foregoing, the property manager shall not be held accountable
497	497	for property entrusted to any other employee or officer of the
498	498	department or agency and for which he or she holds the written
499	499	receipt of the employee or officer.
500	500	(c) The State Auditor or, if delegated by the State
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530	530	(c) The State Auditor or, if delegated by the State
531	531	Auditor, the Chief of the Property Inventory Control Division,
532	532	may review and analyze the internal policies relating to the
533	533	inventorying of state property of a state department, office,
534	534	bureau, board, or agency to ensure that state property is
535	535	being properly inventoried. Upon receiving a written request
536	536	from the State Auditor, a property manager shall submit the
537	537	internal policies to the State Auditor for review. "
538	538	"§36-16-10
539	539	(a) The Chief of the Property Inventory Control
540	540	Division shall have the authority to carry out the provisions
541	541	of Sections 36-16-8 through 36-16-11 , and shall require that
542	542	each department, office, bureau, board , or agency of the state
543	543	carry out fully the provisions of Sections 36-16-8 through
544	544	36-16-11 applicable to such the department, office, bureau,
545	545	board, or agency.
546	546	(b) In the event the Chief of the Property Inventory
547	547	Control Division neglects to perform the duties imposed upon
548	548	him or her by Sections 36-16-8 through 36-16-11, the State
549	549	Auditor shall report such neglect to the personnel board State
550	550	Personnel Board, which and the board shall administer such
551	551	disciplinary action against the chief of the division,
552	552	including the right to discharge him or her, as the board
553	553	deems proper under the circumstances.
554	554	(c) In the event the head of any department or officer
555	555	in charge of any office, bureau, board , or agency of the state
556	556	neglects to perform the duties imposed upon him or her by
557	557	Sections 36-16-8 through 36-16-11, he or she shall be liable
558	558	for the sum of $5.00 in the amount of five dollars ($5) for
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588	588	for the sum of $5.00 in the amount of five dollars ($5) for
589	589	each day suchthe neglect continues and for the value of any
590	590	and all personal property losses to the state as a result of
591	591	such the neglect."
592	592	"§36-16-11
593	593	There is hereby expressly exempt from Sections 36-16-8
594	594	to 36-16-10, inclusive, all livestock, of the following:
595	595	(1) Livestock, animals, and farm and agricultural
596	596	products.
597	597	(2) and property Property owned or used by, or in
598	598	connection with, or under the control of, all public schools,
599	599	universities, colleges, trade schools, Alabama Institute for
600	600	Deaf and Blind, State Library Service, and all any public
601	601	preK-12 school, state preK-12 school, or two-year or four-year
602	602	public institution of higher education.
603	603	(3) Property owned or used by, or in connection with or
604	604	under the control of, any facility owned or operated by the
605	605	Department of Mental Health which provides mental health or
606	606	psychiatric care services.
607	607	(4) Any fire control or fire rescue equipment acquired
608	608	by the Alabama Forestry Commission from sources other than
609	609	state agencies and subsequently donated to volunteer fire
610	610	departments pursuant to Section 9-3-19 ; provided, Sections
611	611	36-16-8 to 36-16-10, inclusive, shall not apply to the Alabama
612	612	hospitals for the insane and the Partlow State School and
613	613	Hospital."
614	614	Section 2. Section 36-16-1.1 is added to the Code of
615	615	Alabama 1975, to read as follows:
616	616	§36-16-1.1
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646	646	§36-16-1.1
647	647	(a) For purposes of this section, the term "state
648	648	property" refers to any state property that meets or exceeds
649	649	the threshold value, as defined in Section 36-16-8.
650	650	(b) There is created within the Office of the State
651	651	Auditor the Division of Property Investigations which shall be
652	652	responsible for carrying out investigations described in this
653	653	section. The division may initiate an investigation upon a
654	654	request of the State Auditor or the Property Inventory Control
655	655	Division or, upon receiving notice, whether through its
656	656	website or through another channel of communication, of acts
657	657	of negligence in the loss, theft, or damage of state property.
658	658	(c)(1) The Division of Property Investigations may
659	659	investigate any instance of lost, stolen, or damaged state
660	660	property, including instances where marked as "non-negligent"
661	661	by the custodial agency. If in carrying out a full
662	662	investigation, including the procuring of evidence, the
663	663	division confirms that the loss, theft, or damage was not
664	664	negligent, the division shall issue a finding of
665	665	"non-negligence."
666	666	(2) If the division finds that the loss, theft, or
667	667	damage was caused by negligence or willful neglect, the State
668	668	Auditor may compel the offending public official or public
669	669	employee to pay the value of the lost, stolen, or damaged
670	670	property, and if such amount is not recovered, the State
671	671	Auditor shall certify the facts and amount due to the Attorney
672	672	General. The Attorney General may bring civil action in the
673	673	name of the state against the employee.
674	674	(d) Governmental entities, including any agency or
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702	702	336 HB562 INTRODUCED
703	703	Page 13
704	704	(d) Governmental entities, including any agency or
705	705	board of the state or political subdivision thereof that is
706	706	audited by the State Auditor, shall cooperate with and provide
707	707	assistance to the Division of Property Investigations by
708	708	providing necessary information to allow the division to carry
709	709	out its investigations in a timely manner.
710	710	(e) The Division of Property Investigations shall refer
711	711	to the Attorney General or the appropriate district attorney
712	712	any matter where there is a reasonable belief that a criminal
713	713	violation has occurred.
714	714	Section 3. This act shall become effective on October
715	715	1, 2025.
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