Technology (Emerging Technology)

SB 277 creates a new legal framework for "decentralized unincorporated nonprofit associations" in Alabama, allowing groups to form under this structure using blockchain technology and smart contracts for governance. These associations can engage in limited profit-making activities (like selling goods or services), but all profits must serve their nonprofit purpose, and they cannot distribute earnings to members except under specific rules for compensation or dissolution. The bill directly affects nonprofit groups seeking to operate transparently via digital tools, as it defines their governance rules, member rights, and administrative duties. It does not change existing nonprofits but establishes a new category for those adopting decentralized, tech-driven models.

HB 483 creates a new legal structure for "decentralized unincorporated nonprofit associations" in Alabama, allowing nonprofits to operate using blockchain technology and smart contracts for governance. It permits these associations to own property, engage in profit-making activities (with profits directed toward their nonprofit purpose), and pay reasonable compensation to members or administrators. The bill establishes rules for member voting rights, administrative duties, and dissolution procedures, while requiring all activities to align with a nonprofit purpose that doesn’t distribute profits to members. This directly affects nonprofits seeking to use digital tools for governance, such as those managing community networks or digital platforms under a shared nonprofit mission.

HB 303 requires cryptocurrency kiosk operators in Alabama to provide clear, upfront disclosures to consumers before transactions, including costs, fees, and exchange rates, and display warnings about common fraud schemes (like impersonation scams or fake lottery offers). Operators must give consumers a physical or digital receipt for each transaction and send a digital copy to the Alabama Securities Commission. The bill also mandates refunds for fraudulently induced transactions and requires operators to establish a consumer service line and direct communication with law enforcement. Violations could trigger civil or criminal penalties.