SB164 • 2026

Class IV municipalities; audits, restrictions on hiring accountant removed

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Jones (A)
Last action: 2026-04-15
Official status: Enacted
Effective date: 2026-10-01

Plain English Breakdown

The official text lists the existing requirements (mayor preparing statements, publishing summaries) within the amended section but does not explicitly state that this bill changes those parts; therefore, they are treated as unchanged background rules rather than actions of this specific law.

SB164: Removing the Three-Year Limit on Accountants for Class IV Municipalities

This law removes a rule that stopped certain small Alabama cities from using the same accountant to check their books for more than three years in a row.

What This Bill Does

Removes the ban on hiring the same certified public accountant for audits of Class IV municipalities for more than three consecutive fiscal years.

Who It Names or Affects

Class IV municipalities
Certified public accountants hired by these cities

Limits and Unknowns

This act becomes effective on October 1, 2026.

Bill History

2026-04-15 Senate
Enacted
2026-04-08 House
Motion to Read a Third Time and Pass - Adopted Roll Call 1287 (Yeas 90, Nays 0)
2026-04-08 House
Third Reading in Second House (Yeas 97, Nays 0)
2026-04-08 Senate
Delivered to Governor
2026-04-08 House
Signature Requested
2026-04-08 Senate
Enrolled
2026-04-08 Senate
Ready to Enroll
2026-03-11 House
Read for the Second Time and placed on the Calendar
2026-03-11 House
Reported Out of Committee Second House
2026-02-25 Senate
Motion to Read a Third Time and Pass - Adopted Roll Call 607 (Yeas 33, Nays 0)
2026-02-25 Senate
Third Reading in House of Origin (Yeas 33, Nays 0)
2026-02-25 House
Pending Committee Action in Second House
2026-02-25 House
Read for the first time and referred to the House Committee on County and Municipal Government
2026-02-05 Senate
Read for the Second Time and placed on the Calendar
2026-02-04 Senate
Reported Out of Committee House of Origin
2026-01-14 Senate
Pending Committee Action in House of Origin
2026-01-14 Senate
Read for the first time and referred to the Senate Committee on County and Municipal Government

Official Summary Text

This act amends Section 11-43B-9, Code of Alabama 1975, to remove the prohibition of certain Class IV municipalities from using the same accountant for more than three consecutive annual audits of the city's books and accounts.

Current Bill Text

Read the full stored bill text

SB164 ENROLLED
Page 0
SB164
SLVB477-2
By Senator Jones
RFD: County and Municipal Government
First Read: 14-Jan-26
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SB164 Enrolled
Page 1
First Read: 14-Jan-26
Enrolled, 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
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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SB164 Enrolled
Page 2
1, 2026.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB164
Senate 25-Feb-26
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Passed: 08-Apr-26
By: Senator Jones
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