HB 17 Alabama House · 2026 Regular Session

Municipal audits, expenditure thresholds for municipal audits revised

HB 17 revises Alabama's requirements for municipal financial audits by raising spending thresholds. It increases the annual audit requirement from $300,000 to $500,000 in annual spending for towns and cities, while adjusting lower-tier thresholds: municipalities spending $300,000-$500,000 now require biennial audits (previously $100,000-$300,000), and those spending under $300,000 must submit annual financial reports instead of biennial audits (previously under $100,000). The bill also specifies that annual reports must include cash reconciliation, bank balances, and tax compliance details. This change takes effect October 1, 2026.

Bill status signed all 5 stages cleared

Introduction

Jun 2025

Committee Review

Mar 2026

House Passage

Jan 2026

Senate Passage

Apr 2026

Signed into Law

Apr 2026

Introduced Jun 25, 2025 Signed Apr 16, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 4 edits · Apr 16, 2026

MODERATE

The bill was finalized and enrolled, changing its status from a draft proposal to an official law. The core policy change involves raising the financial thresholds for mandatory municipal audits in Alabama, requiring annual audits for municipalities with $500,000 or more in expenditures (previously $300,000) and biennial audits for those with $300,000 to $500,000 (previously $100,000 to $300,000). This adjustment reduces the number of smaller municipalities subject to frequent audits while maintaining oversight for larger entities.

Scope change

The scope of mandatory auditing was narrowed for smaller municipalities by raising the expenditure thresholds required to trigger annual or biennial audits.

ELIGIBILITY

The annual expenditure threshold for requiring an annual municipal audit was increased from $300,000 to $500,000.

The expenditure range requiring biennial audits was expanded to include municipalities with annual expenditures between $300,000 and $500,000, whereas previously this range required biennial audits only if expenditures were between $100,000 and $300,000.

The threshold for municipalities eligible to submit an annual report in lieu of an audit was raised from $100,000 to $300,000.

TECHNICAL

The bill text was finalized with official signatures and dates, confirming it has passed both chambers and is ready for the governor's signature.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 7, 2026

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 1206

upper

Mar 3, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Jan 20, 2026

Upper · Passed

Pending Committee Action in Second House (County and Municipal Government)

upper

Jan 20, 2026

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 58

lower

Jan 14, 2026

Lower · Passed

Reported Out of Committee House of Origin

lower

Jan 13, 2026

Lower · Passed

Pending Committee Action in House of Origin (County and Municipal Government)

lower

1 primary · 0 co-sponsors