AL HB229

Amends Section 36-16-1 of the Code of Alabama 1975 to add a new duty allowing the State Auditor to make written demands and initiate legal action to recover public funds improperly withheld, misappropriated, or illegally expended by public officers or employees.

Establishes procedures for demand letters requiring competent evidence including sworn statements, written documentation, physical evidence, or law enforcement reports, with a 30-day payment deadline plus 1% monthly interest.

Authorizes the State Auditor to file suit in Montgomery County Circuit Court if demands are not paid within 30 days, with Attorney General assistance available upon request.

Imposes a civil penalty of 12% of the official bond (not to exceed $10,000) on sureties who fail to respond within 120 days to written demands.

Authorizes the State Auditor to recover the value of missing state property identified during inventory examinations by making demands against agency heads, property managers, and responsible officers or employees.