SB 258 — Relating to water utilities; to amend Act 2022-378 of the 2022 Regular Session, now appearing as Section 41-5A-12.2 of the Code of Alabama 1975, relating to certain nonprofit corporations providing water service and providing a one-time audit by the Department of Examiners of Public Accounts, to specify that the law applies to nonprofit corporations providing water service to its members or the public; and to authorize the department to conduct an additional one-time audit of a nonprofit corporation if the department suspects fraud or mismanagement of funds.

SB258 INTRODUCEDENROLLED S2OH58-1S2OH58-2 By Senator Jones RFD:

27-Apr-23 2023 Regular Session Page 0 S2OH58-1SB258 04/17/2023Enrolled FCEnrolled, (L)An ma/lgAct, 2023-9083 2 4 SYNOPSIS:

UnderA existingBILL law,TO aBE nonprofitENACTED corporationAN thatACT is9 notRelating incorporated pursuant to Title 11, Code of Alabama 1975, that provides water serviceutilities; to the public may be audited one time by the Department of Examiners of Public Accounts.

Thisto billamend wouldAct 2022-378 of the 2022 Regular Session, now appearing as Section 41-5A-12.2 of the Code of Alabama 1975, relating to certain nonprofit corporations providing water service and providing a one-time audit by the Department of Examiners of Public Accounts, to specify that the law applies to a nonprofit corporationcorporations thatproviding provides water service to its members or the public.public;

Thisand billto would also authorize the Departmentdepartment of Examiners of Public Accounts to conduct aan additional one-time audit of a publicnonprofit corporation organized under Article 9 of Chapter 50 of Title 11, Code of Alabama 1975, providing water service if the department suspects fraud or mismanagement of funds.

A BILL TO BE ENACTED AN ACT Relating to water utilities;

to amend Act 2022-378 of the 2022 Regular Session, now appearing as Section 41-5A-12.2 of the Code of Alabama 1975, relating to certain nonprofit corporations providing water service and providing a one-time audit by the Department of Examiners of Public Accounts, to Page 1 SB258 INTRODUCED specify that the law applies to nonprofit corporations providing water service to its members or the public;

and to authorize the department to conduct a one-time audit of a public corporation organized under Article 9 of Chapter 50 of Title 11, Code of Alabama 1975, providing water service if the department suspects fraud or mismanagement of funds.

"§41-5A-12.2 (a) After April 14, 2022, the effective date of the act adding this amendatory language, beginning after the close of the then current fiscal year, any nonprofit corporation organized under the laws of this state as a nonprofit corporation that is not incorporated pursuant to Title 11, Page 1 SB258 Enrolled which 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.

(b) After the effective date of the act adding this amendatory language, beginning after the close of the then current fiscal year, any publicnonprofit corporation organized,that created,is ornot incorporated underpursuant Articleto 9, Chapter 50 of Title 11, which 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 Page 2 SB258 INTRODUCED Chapter 5A of Title 41, if the department suspects fraud or mismanagement of funds by the publicnonprofit corporation.

(b)(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 11,11." except as provided in subsection (b)." Section 2.

Page 32 SB258 Enrolled ________________________________________________ President and Presiding Officer of the Senate ________________________________________________ Speaker of the House of Representatives SB258 Senate 11-May-23 I hereby certify that the within Act originated in and passed the Senate.

Patrick Harris, Secretary.

House of Representatives Amended and passed:

31-May-23 Senate concurred in House amendment 31-May-23 By:

Senator Jones Page 3