HB22 • 2026

Class IV municipalities; audits, restrictions on hiring accountant removed

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Butler (M)
Last action: 2026-02-05
Official status: Read Second Time in Second House
Effective date: Not listed

Plain English Breakdown

The official bill summary does not provide details about specific requirements for mayors or councils beyond removing the restriction on hiring accountants.

Class IV Municipalities; Audit Rules Changed

This bill removes a rule that stops the same accountant from auditing Class IV municipalities for more than three consecutive years.

What This Bill Does

Removes the restriction on hiring the same accountant to audit a Class IV municipality for more than three consecutive years.

Who It Names or Affects

Class IV municipalities in Alabama
Accountants who audit Class IV municipalities

Terms To Know

Class IV municipality: A type of city or town in Alabama with a specific population range and governance structure.
Certified Public Accountant (CPA): An accountant who has passed a national exam and meets state requirements to provide auditing services.

Limits and Unknowns

The bill does not specify what happens if the same accountant audits for more than three years after this rule is removed.
It's unclear how many Class IV municipalities will be affected by this change.

Bill History

2026-02-05 Senate
Read for the Second Time and placed on the Calendar
2026-02-04 Senate
Reported Out of Committee Second House
2026-01-20 House
Motion to Read a Third Time and Pass - Adopted Roll Call 56 (Yeas 94, Nays 2)
2026-01-20 House
Third Reading in House of Origin (Yeas 95, Nays 0)
2026-01-20 Senate
Pending Committee Action in Second House
2026-01-20 Senate
Read for the first time and referred to the Senate Committee on County and Municipal Government
2026-01-14 House
Read for the Second Time and placed on the Calendar
2026-01-14 House
Reported Out of Committee House of Origin
2026-01-13 House
Pending Committee Action in House of Origin
2026-01-13 House
Read for the first time and referred to the House Committee on County and Municipal Government

Official Summary Text

Class IV municipalities; audits, restrictions on hiring accountant removed

Current Bill Text

Read the full stored bill text

HB22 INTRODUCED
Page 0
HB22
7BH37EV-1
By Representative Butler
RFD: County and Municipal Government
First Read: 13-Jan-26
PFD: 11-Aug-25
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7BH37EV-1 05/28/2025 THR (L)lg 2025-2021
Page 1
PFD: 11-Aug-25
SYNOPSIS:
Under existing law, a Class IV municipality may
not hire the same accountant to conduct the
municipality's audit for more than three consecutive
years.
This bill would remove that restriction.
A BILL
TO BE ENTITLED
AN ACT
Relating to Class IV municipalities; to amend Section
11-43B-9, Code of Alabama 1975; to remove the restriction that
audits for Class IV municipalities may not be conducted by the
same accountant for more than three consecutive years.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-43B-9, Code of Alabama 1975, is
amended to read as follows:
"§11-43B-9
The mayor shall , from time to time, shall prepare a
detailed statement of all receipts and expenses of the city.
At the end of each fiscal year , the council shall cause the
books and accounts of the city to be audited by a reputable,
disinterested certified public accountant. The same accountant
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HB22 INTRODUCED
Page 2
disinterested certified public accountant. The same accountant
shall not conduct the audit for more than three consecutive
fiscal years. A true summary of the annual audit report shall
be published once in a newspaper of general circulation in the
city. The audit report shall be submitted by the mayor to the
council at its first meeting after the completion of such the
report."
Section 2. This act shall become effective on October
1, 2026.
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