SB 277

This act is the Decentralized Unincorporated Nonprofit Association Law. This act adds Article 2 to Chapter 17, Title 10A, Code of Alabama 1975, to: (1) establish decentralized unincorporated nonprofit associations as a business organization form; (2) provide for the formation and management of associations; (3) authorize associations to engage in certain actions, including profit-making activities if those profits are used in furtherance or set aside for the association's common purpose; (4) establish rights and powers of associations regarding their separate legal status, acquiring and conveying property, entering into contracts, legal proceedings, and service of process; (5) establish rights and duties of associations regarding internal governance, including using distributed ledger technology and algorithmic means to validate records and establishing processes or procedures for making organizational decisions; (6) establish the rights of association members and limitations that may be placed on their liability; and (7) provide for association administrators, indemnification of members, insurance for members and administrators, recordkeeping, and dissolution, winding up, and mergers of associations. This act also designates Sections 10A-17-1.01 through 10-17-1.18, Code of Alabama 1975, as Article 1 of Chapter 17, Title 10A.