HB438 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

HB438 updates Alabama's Unclaimed Property law to standardize abandonment rules, require electronic reporting, clarify cross-state property handling, allow a surviving parent to claim property from an intestate child, and protect claimants using third‑party sources.

What This Bill Does

If passed, the bill would require holders to treat all deposit products the same for abandonment and permit state-issued payment instruments to be remitted to unclaimed property for the payee at expiration. It would mandate electronic reporting (with limited exceptions) and improve reporting requirements. It would clarify how property is delivered to or received from other states, allow a surviving parent to claim abandoned property from a child who died intestate, clarify properties eligible under early reporting, and provide protections for consumers who claim property through third-party sources.

Who It Affects

• Holders of unclaimed property (banks, financial institutions, and other property custodians): must implement electronic reporting, apply uniform abandonment rules to deposit products, and manage cross-state property transfers under the act.
• Potential property claimants (surviving spouses, surviving parents, children or other heirs, and individuals using third-party claim processes): may gain new or clearer rights to abandon property, including the ability for a surviving parent to claim from an intestate decedent, and will receive added protections when using third-party claim routes.

Key Provisions

• Amends 35-12-72 to set abandonment timeframes and allow uniform treatment of deposit products regarding abandonment.
• Amends 35-12-76 to require electronic reporting and electronic remittance of abandoned property, with possible exceptions.
• Amends 35-12-79 to clarify good faith, holder liability release upon payment/delivery to the Treasurer, and reimbursement procedures to claimants.
• Amends 35-12-82 to address cross-state delivery/recapture of property and related indemnity protections between states.
• Amends 35-12-84 to allow surviving spouses or children of an intestate deceased to claim abandoned property (defeasible right) with specified documentation; provides for surviving parents if no spouse or children exist.
• Amends 35-12-86 to govern reporting by holders including early reporting opportunities and Treasurer-approved extensions.
• Amends 35-12-93 to regulate owner-third-party agreements for locating/recovering property and to prevent unconscionable fees, with enforceability conditions.

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