Financial Services

SB 15 creates a voluntary state-level process called the Uniform Assignment for Benefit of Creditors Act, allowing distressed businesses (organizations, not individuals) to liquidate assets and pay creditors without filing for federal bankruptcy. The bill establishes a clear procedure where a business (the "assignor") transfers all assets to a third party (the "assignee"), who then distributes proceeds to creditors with valid claims. Key provisions include standardized definitions for assets and claims, requirements for filing assignments, notifying creditors, handling disputed claims, and ensuring fair distribution while avoiding federal bankruptcy court proceedings. This process directly affects struggling businesses seeking a streamlined, state-managed solution for debt resolution.

This bill requires catastrophe savings accounts in Alabama to be held only at state-based banks, credit unions, or veterans financial institutions. It directly affects insurance policyholders who use these accounts to pay for deductibles, mitigation costs, or FORTIFIED endorsements related to windstorm damage on residential property. The legislation defines a catastrophe savings account as a regular savings or money market account labeled specifically for qualified catastrophe expenses and limits policyholders to one such account. The rules apply to tax years starting on or after January 1, 2027, with the bill taking effect on October 1, 2026.

This bill requires money transmission businesses in Alabama to report large or suspicious cash transactions to the state Securities Commission and imposes a 1.5% fee on outgoing international wire transfers. The collected fees would be placed in a state fund and distributed to local sheriffs to help cover immigration law enforcement costs, while taxpayers who pay these fees would receive an income tax credit to offset the charges. The legislation also establishes criminal and civil penalties for businesses that fail to comply with reporting requirements and creates a study commission to monitor how the fee proceeds are used. These provisions would remain in effect until December 31, 2030, when they are scheduled to be repealed.

This bill authorizes Alabama state and local government agencies to pay vendors and contractors using payment stablecoins, a type of cryptocurrency designed to maintain a stable value tied to the U.S. dollar. The Alabama Securities Commission would oversee which stablecoins are approved for government use, requiring that they be issued by U.S.-based companies with U.S. citizen owners and backed one-to-one by U.S. dollars or Treasury securities. Before making such payments, government entities must provide vendors and contractors with clear disclosures about the stablecoin's redemption rights, reserve backing, audit requirements, and associated risks. The legislation also mandates that the commission maintain a public list of approved stablecoins and conduct annual reviews to ensure continued compliance with safety standards.

HB 474 prohibits Alabama's Teachers' and Employees' Retirement Systems from investing in securities tied to Chinese military-linked companies or their affiliates, as defined by federal designations (including Executive Orders 13959 and 14032). The law requires the State Auditor to maintain a list of restricted entities and mandates retirement systems to divest from these holdings by January 2027. It applies to all retirement fund investments, including derivatives and related financial products, aligning with U.S. national security restrictions on such investments. The bill directly affects Alabama's public employee and teacher pension funds.