HB258 Alabama 2011 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2011

Title

Class action lawsuits filed in Alabama, plan for undistributed funds to be distributed to Child Abuse and Neglect Prevention Department if class members cannot be located, or if distribution to class is not economically feasible, or if class members do not make a claim to the class funds

Summary

HB258 would require leftover funds from Alabama class action settlements to be planned and ultimately given to the Children's Trust Fund (administered by the Department of Child Abuse and Neglect Prevention) if not distributed to class members.

What This Bill Does

It requires that every Alabama class action settlement or judgment creating a common fund include a plan for handling any residual funds. It specifies that unclaimed or undistributable funds should be sent to the Children's Trust Fund, managed by the Department of Child Abuse and Neglect Prevention. It becomes effective immediately after the governor approves it.

Who It Affects

• Class action participants in Alabama, because leftover funds that cannot be distributed to them would be redirected to the Children's Trust Fund.
• The Alabama Department of Child Abuse and Neglect Prevention and the Children's Trust Fund, which would receive and oversee the residual funds.

Key Provisions

• Section 1 requires any class action order or settlement that creates a common fund to establish a plan for determining when residual funds are unclaimed and when they will be distributed to the Children's Trust Fund.
• Section 2 states that at the end of the class action, residual funds—undistributed because class members can't be located, distribution to individuals isn't economically feasible, or after all have had a chance to claim—shall be distributed to the Alabama Department of Child Abuse and Neglect Prevention consistent with the plan in Section 1.
• Section 3 makes the act effective immediately upon governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Civil Procedure