Prefiled legislation would expand the authority of the Alabama State Auditor over the reporting and investigation of lost or stolen state property and tighten accountability in how agencies manage public assets.
Under current law, found in Sections 36-16-1 through 36-16-11 of the Code of Alabama, the State Auditor’s duties are largely administrative. The statute outlines responsibilities relating to maintaining records, overseeing inventories and conducting post-audits, but it does not expressly authorize the auditor to investigate how or why state property is lost or damaged.
The law focuses instead on documentation and reporting. Existing statute requires that inventories include “a complete explanation accounting for the property or the disposition thereof” when items are missing. It stops short of creating a formal investigative process.
HB94, introduced by Jamie Kiel, R-Russellville, would alter that by adding investigative authority to the auditor’s statutory duties. The bill amends Section 36-16-1 to authorize the auditor “to investigate loss or damage to state property,” a power not spelled out in law.
Current law governing property inventories, laid out in Section 36-16-8, requires the Property Inventory Control Division to establish controls over “all nonconsumable state personal property” and requires that agencies conduct regular inventories showing details such as serial numbers, purchase dates and locations. When property is missing, agencies must explain what happened, but those explanations remain largely internal.
HB94 would build on those requirements by mandating that losses or thefts are reported directly to the auditor’s office. The bill states that a property manager must report “the loss or theft of any property required to be inventoried… not more than 30 days after the property manager learns of the loss or theft.”
It further requires the Property Inventory Control Division to forward those reports to a newly created Division of Property Investigations within the auditor’s office, even if the agency has already concluded the loss was non-negligent.
Existing law relies on inventories and audits, but does not require escalation to an independent investigative unit. Under the bill, the auditor’s office would no longer be limited to accepting agency explanations at face value.
The legislation would also create new exceptions to existing inventory rules. Current law requires regular inventories of all covered property. HB94 allows an alternative audit process for property “located behind security bars” at Department of Corrections and Department of Youth Services facilities.
Enforcement authority is another area where the bill departs from the current statute. Existing law provides that agency heads may be liable for losses caused by neglect and may face fines equal to the value of the lost property, but it does not clearly outline how those determinations are made or enforced.
HB94 would preserve those liability provisions while adding a path to legal action. The bill authorizes the auditor to refer matters to the Attorney General or a district attorney “where there is a reasonable belief that a criminal violation has occurred,” formalizing a process that is currently implied rather than explicit.
The bill would also impose new public reporting requirements. While current law requires inventories and audit comparisons, it does not mandate regular public disclosure of property losses. HB94 would require the auditor to publish quarterly loss reports within 30 days of the end of each quarter and to publish annual production and losses reports for the prior fiscal year by November 30. Those reports would be made publicly available, adding a transparency component not present in the existing statute.
The 2026 Legislative Session begins January 13.
