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HB94 INTRODUCED
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HB94
5VHYK6M-1
By Representative Kiel
RFD: State Government
First Read: 13-Jan-26
PFD: 17-Dec-25
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5VHYK6M-1 12/10/2025 JWB (L)lg 2025-3575
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PFD: 17-Dec-25
SYNOPSIS:
Under existing law, the State Auditor is an
elected position in the executive branch responsible
for monitoring the accounts and records of the
Department of Finance and the State Treasurer and
maintaining property records of all state-owned,
nonconsumable property.
This bill would require property managers of
state agencies to report loss or theft of certain state
property in certain circumstances.
This bill would provide an exception to the
standard property inventory process conducted by the
State Auditor for all Department of Corrections and
Department of Youth Services secured facility property
that is located behind security bars.
This bill would create a new Division of
Property Investigations within the Office of the State
Auditor to investigate the loss, theft, or damage of
certain state property and to demand repayment for the
value of lost, stolen, or damaged property due to an
act of negligence.
This bill would authorize the Attorney General
to bring civil action for cases of negligent loss or
damage of state property.
This bill would authorize the State Auditor to
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This bill would authorize the State Auditor to
refer to the Attorney General or an applicable district
attorney any matter where there is a reasonable belief
that a criminal violation has occurred.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
Relating to the State Auditor; to amend Sections
36-16-1, 36-16-3, 36-16-6, and Section 36-16-8, as last
amended by Act 2025-70 of the 2025 Regular Session, Section
36-16-10, and Section 36-16-11, as last amended by Act 2025-68
of the 2025 Regular Session, Code of Alabama 1975; to add
Section 36-16-1.1 to the Code of Alabama 1975; to provide
further for the duties and authorities of the State Auditor;
to provide an exception to the standard inventory process for
any Department of Corrections and Department of Youth Services
secured facility property located behind bars; to create a
Division of Property Investigations within the Office of the
State Auditor and authorize the division to carry out certain
investigations of lost property and make referrals to the
Attorney General or district attorneys; to authorize the
Attorney General to bring civil action to recover amounts in
certain circumstances; to update the code to reflect changes
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certain circumstances; to update the code to reflect changes
in practices and powers granted to the State Auditor; and to
make nonsubstantive, technical revisions to update the
existing code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 36-16-1, 36-16-3, 36-16-6, and
Section 36-16-8, as last amended by Act 2025-70 of the 2025
Regular Session, Section 36-16-10, and Section 36-16-11, as
last amended by Act 2025-68 of the 2025 Regular Session, Code
of Alabama 1975, are amended to read as follows:
"§36-16-1
(a) The sole powers, functions and duties of the State
Auditor shall be as follows include all of the following :
(1) Those enumerated in the constitution ;.
(2) The keeping of To keep a seal with the devise, "The
State of Alabama, Auditor's Office ;."
(3) If the Treasurer, in the event of his resignation
or removal, fails to comply with the provisions of this code,
or if he dies or absconds, the stating of his account in the
presence of any person attending on the part of such late
Treasurer and the delivering of the books, papers and moneys
belonging to the Treasury to his successor, taking his receipt
for the same, and recording and filing such receipts and
statement and reporting the same to the next Legislature;
(4) The postauditing of the accounts and records of the
Department of Finance and the Treasurer;
(5)(3) The serving To serve on the boards and
commissions of which he or she is by law an ex officio member ;
and.
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and.
(6) The making of a full and complete report to the
Governor at the close of each fiscal year showing the audited
receipts and disbursements of the government for the last
completed fiscal year, as required by the constitution and as
shown by the records and documents in the office of the
Department of Finance, which records shall be audited by him.
The report shall also include the results of his audit of all
taxes and revenues collected and paid into the Treasury and
shall give the results of all other audits made by him. The
report shall be printed and bound with, and as a part of, the
annual financial report of the state prepared by the
Department of Finance. The Auditor shall make reports oftener
upon, and matters pertaining to, his office if required by the
Governor or the Legislature.
(b) In the event the State Auditor resigns, is removed
from office, dies in office, or fails to comply with this
chapter, the successor to the State Auditor shall submit a
detailed report regarding the transfer of duties to the
successor during the next legislative session following the
transfer.
(c) Notwithstanding any law to the contrary, the Office
of the State Auditor may do any of the following:
(1) Not more frequently than once every four calendar
years, beginning October 1, 2026, adjust the threshold value
of state property that must be inventoried pursuant to this
chapter to reflect the cumulative change in the Consumer Price
Index, as published by the United States Department of Labor,
rounded to the nearest one hundred dollars ($100). The State
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rounded to the nearest one hundred dollars ($100). The State
Auditor shall notify property managers described in Section
36-16-8 of the adjusted threshold value at least 90 days prior
to the effective date of the adjusted threshold value, and the
adjusted threshold values shall apply only to property
acquired after that effective date. Notwithstanding the
foregoing, property managers, upon written request from the
head of the department or agency and approval by the State
Auditor, may make a complete inventory of all used and
acquired property reflecting the adjusted threshold value if
doing so is determined to be in the best interest of the
department or agency.
(2) Investigate loss or damage to state property as
further provided in Section 36-16-1.1. "
"§36-16-3
The State Auditor may employ a chief clerk chief of
staff, whose employment shall be at the pleasure of the State
Auditor. Subject to the provisions of the state Merit System,
he the chief of staff may employ principal accountants,
account clerks , and senior stenographers other clerical staff ."
"§36-16-6
The official acts of the chief clerk chief of staff
shall be presumed to be by the authority of, and shall be
taken as done by, the State Auditor, who shall be responsible
for the same."
"§36-16-8
(a) As used in this section, "threshold value" means a
value of five hundred dollars ($500) or the threshold amount
adjusted by the State Auditor pursuant to Section
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adjusted by the State Auditor pursuant to Section
36-16-1(c)(1).
(b) The Property Inventory Control Division shall
establish a control in the following manner of all
nonconsumable state personal property not exempt under Section
36-16-11 .:
(1) The head of each department or agency of the state
shall designate one of its employees as property manager for
the department or agency. Except for books, the property
manager shall make a full and complete inventory of all
nonconsumable personal property and certain other items of
personal property deemed sufficiently important or sensitive
enough by the Property Inventory Control Division to be
included in the inventory of state property of the value of
five hundred dollars ($500) or more that meets or exceeds the
threshold value owned by the state and used or acquired by the
department or agency. The inventory shall show the complete
description, manufacturer's serial number, cost price, date of
purchase, location, and custodial agency, responsible officer ,
or employee, and the state property control marking. A copy of
the inventory shall be submitted to the Property Inventory
Control Division on October 1 and April 1 of each year for
small agencies with read-only access to the electronic
reporting system used by the Office of the State Auditor . Each
inventory shall show all property acquired since the date of
the last inventory. When any inventory fails to show any
property shown on the previous inventory, then a complete
explanation accounting for the property or the disposition
thereof shall be attached to the inventory and submitted to
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thereof shall be attached to the inventory and submitted to
the Property Inventory Control Division. All property managers
shall keep at all times in their files a copy of all
inventories submitted to the Property Inventory Control
Division, and the copies shall be subject to examination by
any and all state auditors or employees of the Department of
Examiners of Public Accounts.
(2) Each property manager shall be the custodian of,
and responsible for, all property in his or her department or
agency. When any property is entrusted to other employees or
officers of the department or agency, the property manager
shall require a written receipt of the property so entrusted ,
which. The receipt shall be executed signed by the person
individual receiving the property. In that event, the property
manager shall be relieved of responsibility of the property,
and the employee or officer of the department or agency shall
be responsible for the property.
(3) No property, except property being transferred to
the Department of Archives and History under Section 41-6-10,
shall be disposed of, transferred, assigned, or entrusted to
any other department, agency, or employee thereof without the
written permission of the any of the following or his or her
designee:
a. The Director of the Surplus Property Division of the
Alabama Department of Economic and Community Affairs or the .
b. The Governor of the State of Alabama or the designee
of either of them .
c. The Chief of the Property Inventory Control Division
of the Office of the State Auditor.
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of the Office of the State Auditor.
(4)a. Each property manager shall report to the Office
of the State Auditor, on a form and in a manner prescribed by
the State Auditor, the loss or theft of any property required
to be inventoried pursuant to this section not more than 30
days after the property manager learns of the loss or theft.
b. The Property Inventory Control Division shall report
the loss or theft to the Division of Property Investigations,
in a manner prescribed by the State Auditor, and provide a
brief summary detailing the circumstances surrounding the
loss, regardless of whether the loss or theft was marked
"non-negligent."
(4)(5)a. Biannually, Every two years, the Property
Inventory Control Division shall conduct an inventory of all
such state personal property , excluding : (i) historical
materials in the custody of the Department of Archives and
History, holding every officer or employee strictly
accountable for all personal property assigned to his or her
custody ; and (ii) property located behind security bars at any
Department of Corrections and Department of Youth Services
facility subject to paragraph b .
b. The State Auditor shall permit an alternative audit
method in all areas located behind security bars at Department
of Corrections and Department of Youth Services facilities.
All state property located within a Department of Corrections
or Department of Youth Services facility that is not located
behind bars shall be audited according to normal processes.
(5)(6) No later than November 30 of each new fiscal
year, the State Auditor shall report in writing to the
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year, the State Auditor shall report in writing to the
Governor all losses and missing items of state property valued
at more than five hundred dollars ($500) that meet or exceed
the threshold value as revealed by the most recent inventory
of state personal property. No later than November 30 of each
fiscal year, the State Auditor shall publish on the website of
the Office of the State Auditor the Annual Production Report
and Losses Reports for the prior fiscal year. Quarterly Losses
Reports shall be published on the website within 30 days of
the close of each quarter.
(6)(7) Whenever any property manager ceases for any
reason to be the property manager of his or her department or
agency, the director of the department or agency , or the
supervisor of the property manager, shall immediately notify
in writing the Property Inventory Control Division. The
division shall immediately check the inventories of all
property assigned to the property manager in the department or
agency, and the successor to the property manager shall
execute a written receipt for all property received by him or
her or coming into his or her custody or control. The last
payment of salary due the property manager shall be withheld
until a complete check of the inventory of the property has
been made and approved. In the event of any shortages, the
property manager shall may be held strictly accountable based
on internal agency written procedures . Notwithstanding the
foregoing, the property manager shall not be held accountable
for property entrusted to any other employee or officer of the
department or agency and for which he or she holds the written
receipt of the employee or officer.
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receipt of the employee or officer.
(c) The State Auditor or, if delegated by the State
Auditor, the Chief of the Property Inventory Control Division,
may review and analyze the internal policies relating to
inventorying the state property of a state department, office,
bureau, board, or agency to ensure that state property is
being properly inventoried. Upon receiving a written request
from the State Auditor, a property manager shall submit the
internal policies to the State Auditor for review. "
"§36-16-10
(a) The Chief of the Property Inventory Control
Division shall have the authority to carry out the provisions
of Sections 36-16-8 through 36-16-11 , and shall require that
each department, office, bureau, board , or agency of the state
carry out fully the provisions of Sections 36-16-8 through
36-16-11 applicable to such the department, office, bureau,
board, or agency.
(b) In the event the Chief of the Property Inventory
Control Division neglects to perform the duties imposed upon
him or her by Sections 36-16-8 through 36-16-11, the State
Auditor shall report such neglect to the personnel board State
Personnel Board , which and the board shall administer such
disciplinary action against the chief of the division,
including the right to discharge him or her , as the board
deems proper under the circumstances.
(c) In the event the head of any department or officer
in charge of any office, bureau, board , or agency of the state
neglects to perform the duties imposed upon him or her by
Sections 36-16-8 through 36-16-11, he or she shall be liable
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Sections 36-16-8 through 36-16-11, he or she shall be liable
for the sum of $5.00 in the amount of five dollars ($5) for
each day suchthe neglect continues and for the value of any
and all personal property losses to the state as a result of
such the neglect."
"§36-16-11
There is hereby expressly All of the following are
exempt from Sections 36-16-8 to 36-16-10 , inclusive, all
livestock, :
(1) Livestock, animals, and farm and agricultural
products .
(2) and property Property owned or used by, or in
connection with , or under the control of, all public schools,
universities, colleges, trade schools, Alabama Institute for
Deaf and Blind, State Library Service, and all any public
preK-12 school, state preK-12 school, two-year or four-year
public institution of higher education.
(3) Property owned or used by, or in connection with or
under the control of, the Alabama Institute for Deaf and Blind
and the State Library Service.
(4) Property owned or used by, or in connection with or
under the control of, any facility owned or operated by the
Department of Mental Health which provides mental health or
psychiatric care services.
(5) Any fire control or fire rescue equipment acquired
by the Alabama Forestry Commission from sources other than
state agencies and subsequently donated to volunteer fire
departments pursuant to Section 9-3-19 ; provided, Sections
36-16-8 to 36-16-10, inclusive, shall not apply to the Alabama
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36-16-8 to 36-16-10, inclusive, shall not apply to the Alabama
hospitals for the insane and the Partlow State School and
Hospital ."
Section 2. Section 36-16-1.1 is added to the Code of
Alabama 1975, to read as follows:
§36-16-1.1
(a) For purposes of this section, the term "state
property" refers to any state property that meets or exceeds
the threshold value, as defined in Section 36-16-8.
(b) There is created within the Office of the State
Auditor the Division of Property Investigations which shall be
responsible for carrying out investigations described in this
section. The division may initiate an investigation upon a
request of the State Auditor, the Property Inventory Control
Division, or, upon receiving notice of acts of negligence in
the loss, theft, or damage of state property, whether through
its website or through another channel of communication .
(c)(1) The Division of Property Investigations may
investigate any instance of lost, stolen, or damaged state
property, including instances where the loss is marked as
"non-negligent" by the custodial agency. If in carrying out a
full investigation, including the procuring of evidence, the
division confirms that the loss, theft, or damage was not
negligent, the division shall issue a finding of
"non-negligence."
(2) If the division finds that the loss, theft, or
damage was caused by negligence or willful neglect, the State
Auditor may compel the offending public official or public
employee to pay the value of the lost, stolen, or damaged
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employee to pay the value of the lost, stolen, or damaged
property, and if such amount is not recovered, the State
Auditor shall certify the facts and amount due to the Attorney
General. The Attorney General may bring civil action in the
name of the state against the employee.
(d) Governmental entities, including any agency or
board of the state or political subdivision thereof that is
audited by the State Auditor, shall cooperate with and provide
assistance to the Division of Property Investigations by
providing necessary information to allow the division to carry
out its investigations in a timely manner.
(e) The Division of Property Investigations shall refer
to the Attorney General or the appropriate district attorney
any matter where there is a reasonable belief that a criminal
violation has occurred.
Section 3. This act shall become effective on October
1, 2026.
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