SB220 Summary

• Requires all Alabama class action settlements or judgments creating a common fund to establish a specific plan for distributing residual (unclaimed) funds to the Department of Child Abuse and Neglect Prevention.

• Defines residual funds as those remaining undistributed because class members cannot be located, direct distribution is not economically feasible, class members fail to claim funds, or funds remain after the court-established time period expires.

• Permits parties to contract for alternative uses of residual funds, including reversion to the paying party or designation of other beneficiaries by the court or class members.

• Allows circuit courts to suspend the residual fund distribution requirement if they determine it substantially impedes settlement negotiations.

• Applies to all class action cases filed on or after January 1, 2013, and became effective immediately upon passage and governor approval.