By SPEAKIN’ OUT NEWS
Prefiled legislation for the 2026 Alabama Legislative Session could significantly expand the authority of the State Auditor’s Office, shifting it from a largely record-keeping role to one with direct investigative and enforcement power over lost or stolen state property.
House Bill 94, sponsored by Rep. Jamie Kiel, R-Russellville, proposes amendments to long-standing sections of the Code of Alabama that govern how state agencies track, report, and explain missing public assets. Under current law, outlined in Sections 36-16-1 through 36-16-11, the State Auditor’s responsibilities are primarily administrative—focused on inventories, audits, and documentation rather than determining how or why property is lost or damaged.
Existing statute requires agencies to account for missing property in their inventory records, but those explanations remain internal and are not subject to an independent investigation. There is no formal process empowering the auditor to probe losses or challenge agency findings.
HB94 would change that framework. The bill amends Section 36-16-1 to explicitly authorize the State Auditor to investigate loss or damage to state property—authority not clearly granted under current law. It also requires agencies to report losses or thefts directly to the auditor’s office within 30 days of discovery.
The legislation establishes a new Division of Property Investigations within the auditor’s office, mandating that the Property Inventory Control Division forward all loss reports to this unit, even when agencies determine the loss was non-negligent. This marks a shift away from relying solely on agency explanations and toward independent review.
HB94 also introduces enforcement and transparency measures absent from current law. While agency heads can already be held financially liable for losses due to neglect, the bill formalizes the process by allowing the auditor to refer cases to the Attorney General or local district attorneys when criminal activity is reasonably suspected.
Additionally, the bill requires the auditor to publish quarterly and annual public reports detailing property losses, adding a new layer of accountability and public oversight.
The legislation includes limited exceptions, allowing alternative audit methods for property “located behind security bars” at Department of Corrections and Department of Youth Services facilities.
The 2026 Legislative Session begins January 13, when HB94 is expected to be formally considered.