HB562 Summary

• Creates a Division of Property Investigations within the Office of the State Auditor to investigate loss, theft, or damage of state property valued at $500 or more and demand repayment for losses caused by negligence.

• Requires property managers to report loss or theft of inventoried state property within 30 days to the Office of the State Auditor.

• Authorizes the State Auditor to adjust the $500 property inventory threshold every four years based on the Consumer Price Index, rounded to the nearest $100, with 90 days' notice to property managers.

• Exempts Department of Corrections and Department of Youth Services secured facility property located behind security bars from standard State Auditor inventory procedures, allowing alternative audit methods.

• Authorizes the Attorney General to bring civil actions against employees and requires referral to the Attorney General or district attorneys when there is reasonable belief of criminal violations.

• Effective October 1, 2025.