House Bill 483 Alabama 2026 Session

Summary

Primary Sponsor

Bryan BrinyarkRepresentative

Republican

Session

2026 Regular Session

Title

Unincorporated nonprofit associations; decentralized associations provided for

Summary

HB483 would create a new form of nonprofit in Alabama called a decentralized unincorporated nonprofit association that uses distributed ledger technology and smart contracts to govern itself, own property, and operate under new rules for profits and dissolution.

What This Bill Does

It authorizes the formation and operation of decentralized unincorporated nonprofit associations (DUNAs) as a subtype of existing unincorporated nonprofit associations, with governance carried out through governing principles and digitally enabled tools. It allows DUNAs to acquire and hold property and engage in profit-making activities, but profits must be used toward the nonprofit purpose and distributions to members are generally limited to specific exceptions such as compensation, benefits, or distributions during winding up. It establishes the separate legal status of the DUNA, outlines member and administrator duties and liability protections, provides for indemnification and advancement of expenses, and sets up dissolution and winding-up procedures, including rules for transferring real property and filing with the appropriate authorities.

Who It Affects

• Members and administrators of a decentralized unincorporated nonprofit association, who have voting rights determined by their membership interests, may be suspended or expelled, may receive certain compensation or benefits, and are protected by liability and indemnification provisions while staying aligned with the association's governing principles.
• Creditors, property owners, and others who interact with a DUNA, as the association may own real or personal property in Alabama, require a recorded statement of authority to transfer property, and may be served via an appointed agent for legal processes.

Key Provisions

• Creates a new legal entity type called a decentralized unincorporated nonprofit association (DUNA) governed by its own governing principles and capable of using distributed ledger technology and smart contracts.
• Allows DUNAs to own and transfer real and personal property in Alabama and to engage in profit-making activities, with profits used to advance the nonprofit purpose and limited distributions to members under defined exceptions.
• Defines liability and governance rules: the DUNA is a separate legal entity; members and administrators have limited fiduciary duties and may be indemnified or advanced expenses, with governance decisions requiring member approval where specified by governing principles.
• Requires a statement of authority to transfer real property, recorded with the probate office, and designates an agent for service of process; service can be on the agent, an administrator, or as otherwise provided by law.
• Sets dissolution and winding-up procedures, including orderly discharge of debts, preservation of operations for wind-up, and distribution of remaining assets according to governing principles or by law; automatic transition to a traditional Alabama unincorporated nonprofit association if membership falls below 100 and certain criteria are met.
• Provides for record accessibility and restricted access to information, allowing electronic records and imposing reasonable confidentiality or safeguards as determined by the governing principles.

AI-generated summary using openai/gpt-5-nano on Feb 19, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions