AL HB559

Creates the Market Accountability Compensation Fund in the State Treasury with an initial transfer of $2,500,000 from the Alabama Securities Commission Fund, with a maximum fund balance capped at $2,500,000

Alabama Securities Commission may award restitution assistance to investment fraud victims who cannot recover from perpetrators, with a maximum of $25,000 or 25% of unpaid restitution per claimant (increased to $50,000 or 50% for vulnerable adults age 65+ or those with mental/physical impairments)

Total payments per case are capped at $250,000 aggregate regardless of the number of victims, and claims must be filed within one year of the final restitution order

Commission gains subrogation rights to recover awarded funds from perpetrators, and may suspend or prorate payments if fund balance drops below $250,000

Filing fraudulent claims or providing misleading information constitutes a Class C felony, effective October 1, 2026