HB617 Alabama 2025 Session

Summary

Primary Sponsor

Susan DuBoseRepresentative

Republican

Session

2025 Regular Session

Title

Abandoned property, management of abandoned digital assets provided for, State Treasurer authorized to select a qualified custodian

Summary

HB617 creates a framework for handling abandoned digital assets in Alabama, including appointing a State Treasurer–selected custodian to manage and sell them.

What This Bill Does

It defines when digital assets are considered abandoned (after 3 years of inactivity or undelivered communications, with the abandonment clock stopping if the owner acts). It requires the State Treasurer to choose a qualified custodian to hold and manage these assets under a formal agreement outlining duties and audit rights. It sets transfer procedures to move assets to the custodian, requires holding assets in native form for at least two years, and allows sale of the assets at or above market price (or by a reasonable method if price can’t be determined).

Who It Affects

• Owners or account holders of digital assets: their assets become presumed abandoned after specified inactivity and communication failures, potentially leading to sale by the state.
• State government and the State Treasurer: gain authority to identify, custody, and sell abandoned digital assets through a qualified custodian.
• Qualified custodians: entities selected to hold and manage abandoned digital assets on behalf of the state, with duties, compensation, reporting, and audit obligations.

Key Provisions

• Abandoned digital assets are defined as those with a three-year abandonment period based on non-delivery of notices or last account activity, with the clock stopping if the owner takes account activity or communicates with the custodian.
• The State Treasurer must select a qualified custodian to hold and manage these assets, using criteria such as secure storage, private-key management, transfer handling, compliance with applicable laws, reporting, return processes, and AML rules, under a formal agreement.
• If an asset is presumed abandoned and transferable, the custodian must transfer it to the qualified custodian and deliver it within 30 days; if not transferable, the custodian must hold the asset and report it until it can be transferred, with proof of delivery provided to the State Treasurer.
• The qualified custodian must retain the asset in its native form for at least two years; after that, the asset is eligible for sale, which must be at least at the prevailing market price; if no market price exists, sale may be conducted by a commercially reasonable method.
• Effective date: the act becomes operative on October 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumer Protection