HB516 • 2026

Water boards; expand types of water boards that Department of Examiners of Public Accounts may audit

Passed Legislature

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

Sponsor: Givan
Last action: 2026-02-26
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The official source material does not specify that audits must be conducted in a specific manner unless fraud or mismanagement is suspected, which was implied but not explicitly stated in the candidate explanation.

Expanding Water Board Audits

This bill allows the Department of Examiners of Public Accounts to audit local water boards and authorities organized under Title 11 of Alabama's laws.

What This Bill Does

Allows the Department of Examiners of Public Accounts to audit local water boards and authorities organized under Title 11 of the Code of Alabama 1975.
Permits the department to charge a reasonable fee for conducting these audits.

Who It Names or Affects

Local water boards and authorities that provide water services and are organized under Title 11 of Alabama's laws.
The Department of Examiners of Public Accounts.

Terms To Know

Department of Examiners of Public Accounts: A state agency responsible for auditing public financial records.
Title 11: The part of Alabama's laws that covers certain types of organizations, including water boards and authorities.

Limits and Unknowns

Does not apply to public water supply systems owned or operated by municipalities or counties.
Effective date is October 1, 2026.

Bill History

2026-02-26 House
Pending Committee Action in House of Origin
2026-02-26 House
Read for the first time and referred to the House Committee on State Government

Official Summary Text

Water boards; expand types of water boards that Department of Examiners of Public Accounts may audit

Current Bill Text

Read the full stored bill text

HB516 INTRODUCED
Page 0
HB516
QNE9V44-1
By Representative Givan
RFD: State Government
First Read: 26-Feb-26
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QNE9V44-1 02/25/2026 INT (L)INT 2026-1054
Page 1
First Read: 26-Feb-26
SYNOPSIS:
Under existing law, local water boards and
authorities organized under Title 11 of the Code of
Alabama 1975 are not subject to audit by the Department
of Examiners of Public Accounts.
This bill would authorize the department to
audit local water boards and authorities organized
under Title 11 of the Code of Alabama 1975.
A BILL
TO BE ENTITLED
AN ACT
Relating to local water boards and authorities; to
amend Section 41-5A-12.2, Code of Alabama 1975; to revise the
types of water boards that may be audited by the Department of
Examiners of Public Accounts.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 41-5A-12.2 of the Code of Alabama
1975, is amended to read as follows:
"§41-5A-12.2
(a) After June 14, 2023, beginning after the close of
the then current fiscal year, any nonprofit Any corporation
organized under the laws of this state as a nonprofit
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HB516 INTRODUCED
Page 2
organized under the laws of this state as a nonprofit
corporation that is not incorporated pursuant to Title 11,
which that 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 June 14, 2023, beginning after the close of
the then current fiscal year, any nonprofit Any corporation
that is not incorporated pursuant to Title 11, which that
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 this chapter, 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.
(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 on October
1, 2026.
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