HB281 Alabama 2012 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2012

Title

Unclaimed Property, disposition by State Treasurer, provide clarification, require electronic reportings, allow surviving parent to claim abandoned property from child who dies intestate, Secs. 35-12-72, 35-12-76, 35-12-79, 35-12-82, 35-12-84, 35-12-86, 35-12-93 am'd

Summary

HB281 updates Alabama's unclaimed property law to standardize abandonment rules, require electronic reporting, clarify interstate handling, and allow certain surviving family members to claim abandoned property from an intestate child.

What This Bill Does

It would let banks treat all deposit products equally for abandonment and allow state-issued payment instruments to be remitted to unclaimed property for the payee at expiration. It would require holders to report electronically (with some exceptions) and would clarify how property from other states is delivered and received. It would also allow a surviving parent to claim abandoned property from a child who died intestate and would clarify property rules around early reporting, plus provide protections for consumers who claim property through third-party sources.

Who It Affects

• Banks and other holders of unclaimed property must report electronically and remit electronically, apply uniform abandonment rules to deposit products, and follow clarified cross-state and reporting procedures.
• Surviving family members such as spouses, children, or surviving parents of an intestate decedent may claim abandoned property under new conditions; consumers claiming property via third-party sources receive additional protections.

Key Provisions

• Amends 35-12-72 to define abandonment timeframes for many property types (e.g., traveler’s checks 15 years; money orders 5 years; deposits 3 years; and other categories).
• Amends 35-12-76 to require holders to file reports electronically and remit electronically, with possible exceptions.
• Amends 35-12-79 to outline good-faith transfer to the Treasurer, holder liability release, and the Treasurer’s reimbursement of certain payments to the holder.
• Amends 35-12-82 to govern how other states may recover abandoned property, including a 120-day decision period and indemnification terms.
• Amends 35-12-84 to allow a surviving spouse, surviving children, or, if intestate, surviving parents to claim abandoned property with defeasible rights and specific documentation; provisions for cases with no survivors are included.
• Amends 35-12-86 to recognize early reporting and allow extensions; includes notice requirements to the apparent owner before reporting.
• Amends 35-12-93 to regulate owner agreements to locate or recover abandoned property, requiring written terms, prohibiting certain arrangements (e.g., concerning mineral proceeds), and enabling court action to limit unconscionable compensation.

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

Subjects

Unclaimed Property