Alabama Law Institute REPORT TO THE ALABAMA LEGISLATURE AND INSTITUTE MEMBERSHIP 2020-2021 HONORABLE CAM WARD, PRESIDENT REPORT TO THE ALABAMA LEGISLATURE AND INSTITUTE MEMBERSHIP 2020-2021 Alabama Law Institute The Law Revision Division of Legislative Services Agency www.lsa.state.al.us Alabama State House Law Center Suite 207 Room 326 11 South Union Street P.O. Box 861425 Montgomery, AL 36130 Tuscaloosa, AL 35486 (334) 261-0680 (205) 348-7411 Alabama Law Institute ROOM 326 LAW CENTER SUITE 207, STATE HOUSE TUSCALOOSA, ALABAMA MONTGOMERY, ALABAMA PHONE (205) 348-7411 PHONE (334) 261-0680 WWW.LSA.STATE.AL.US FAX (334) 242-8411 February 2021 TO: The Alabama Legislature and Alabama Law Institute Membership It is my pleasure to submit the Alabama Law Institute’s Annual Report to the Alabama Legislature and ALI Membership. The Alabama Law Institute is the official law revision and reform agency for the State of Alabama. Its purpose is to aid the Legislature in proposing and drafting clearer, simpler, and more up-to-date laws. This year, the Legislature will be asked to consider a number of ALI bills that were unable to receive consideration last year due to the 2020 session being cut short by COVID-19. The Business Entities Revisions Act was the singular major piece of ALI legislation that had an opportunity to become law. Therefore, ALI bills on subjects such as government procurement, court costs, subdivisions, non-disparagement obligations, trusts, subdivisions, and child custody will once again be presented. Also, the Business Entities and Trust standing committees of the ALI are proposing some non-substantive, technical changes to the Business Entities Act and the Decanting Act. A copy of these drafts and pending bills in the Legislature will be available at the Law Institute office in Suite 207 of the State House. We wish to express our sincere gratitude to the more than 180 lawyers across Alabama who have served on Law Institute committees and have donated more than 3,300 hours of their time to these important projects. It is the hope of the Law Institute staff to always be of assistance to members of the Legislature. If the Institute can help you, please call Deputy Director David Kimberley or Othni Lathram – who serves as Director. The continued cooperation of all members of the Institute and the Legislature will ensure that the Law Institute will continue to provide an important service to the Legislature and the people of the State of Alabama. Finally, with my recent appointment as Director of the Alabama Bureau of Pardons and Paroles, this will be my last annual report to you as President of the Institute. My time in this office has been a distinct honor. Working with the Council and Membership has been a highlight of my professional career. Thank you so much for having allowed me the privilege to serve in this capacity. Carry on – and keep up the good work! Respectfully, Cam Ward President TABLE OF CONTENTS Page OFFICERS AND MEMBERS OF THE INSTITUTE COUNCIL ........................................................................................1 MEMBERS OF THE ALABAMA LAW INSTIUTE .....................4 INSTITUTE STAFF AND ASSISTANTS ......................................9 REPORT OF THE DEPUTY DIRECTOR ...................................11 I. INTRODUCTION ...................................................................15 II. PROCEDURE FOR NEW PROJECTS ...................................19 III. PROJECTS TO BE PRESENTED TO THE LEGISLATURE IN 2021 ........................................................21 1. Alabama Court Cost Commission .....................................21 2. Amendments to the Alabama Business Entities Code .......22 3. Alabama Non-Disparagement Obligations Act .................22 4. Alabama Model Procurement Code ...................................24 5. Alabama Qualified Dispositions in Trust Act ....................25 6. Subdivisions .......................................................................25 7. Small and Disadvantaged Entities Data-Collection Bill......................................................................................26 8. Alabama Business Entities and Non-Profits Entities Code Revisions ..................................................................27 9. Decanting Act Fixes ...........................................................29 10. Elimination of the term “Orphans’ Business” in Probate Court ..................................................................................30 IV. REVISIONS UNDER STUDY................................................31 1. Adoption Committee ..........................................................31 2. Family Law Standing Committee ......................................31 3. Guardianship and Conservatorship Committee .................32 4. Standing Trust Committee .................................................32 5. Real Estate Standing Committee .......................................33 6. Municipal Criminal Records Policy Committee ................33 7. Business Entities Standing Committee ..............................34 i Page V. ENACTED LEGISLATION AND COMPLETED PROJECTS ..............................................................................35 2018 – 2022 Quadrennium 1. Alabama Business and Non-Profit Entities Code (Title 10A) Revisions...................................................................35 2. Judicial Administration and Discipline Constitutional Amendment ........................................................................35 3. Administrative Director of Courts Nomination Commission .......................................................................36 4. Permanent Place Names for Appellate Courts Act ............37 5. Alabama Collateral Consequences Act ..............................37 6. Alabama Business Corporation Revisions .........................38 7. Alabama Limited Liability Company Amendments ..........40 2014– 2018 Quadrennium 8. Alabama General Partnership Act .....................................41 9. Alabama Uniform Voidable Transactions Act ..................42 10. Alabama Uniform Condominium Act ...............................45 11. Alabama Uniform Trust Decanting Act .............................47 12. Alabama Uniform Fiduciary Access to Digital Assets Act ...................................................................................47 13. Alimony .............................................................................48 14. Division of Retirement Benefits Upon Divorce Act ..........49 15. Common Law Marriage Repeal .........................................49 16. Alabama Limited Partnership Law ....................................50 17. Grandparent Visitation Act ................................................52 18. Restrictive Covenants in Contracts ....................................53 19. Right of Publicity Act ........................................................54 20. Uniform Interstate Family Support Act .............................55 21. Deployed Parents Custody and Visitation Act...................56 22. Alabama Limited Liability Company Law of 2014 Amendments (2015)........................................................56 23. Amendments to Probate Code ...........................................57 2010– 2014 Quadrennium 24. Article 9 of the Uniform Commercial Code (2010 Amendments) .....................................................................57 25. Alabama Limited Liability Company Law of 2015 ...........58 26. Alabama Uniform Partition of Heirs Property Act ............60 ii Page 27. Amendments to Title 10A: Merger & Conversion Provisions ...........................................................................61 28. Constitutional Revision Commission ................................61 29. 10A Name Reservation ......................................................62 30. Study Committee of Campaign Finance Reform ...............62 31. Unitrust ..............................................................................63 32. Uniform Commercial Code: Article 4A Amendments ....................................................63 33. Alabama Uniform Collaborative Law ...............................64 34. Uniform Principal and Income Act ....................................66 35. Uniform Foreign-Country Money Judgments Recognition Act .................................................................68 36. Uniform Interstate Depositions and Discovery Act ...........69 37. Share Exchange Act ...........................................................70 38. Uniform Durable Power of Attorney Act ..........................71 39. Alabama Rule Against Perpetuities ...................................72 40. Alabama Unsworn Foreign Declarations Act ....................73 41. Alabama Revised Notary Act ............................................74 2006-2010 Quadrennium 42. Uniform Adult Guardianship Jurisdiction Act ...................75 43. Uniform Child Abduction Prevention Act .........................76 44. Alabama Trademark Act Amendments .............................77 45. Redemption of Ad Valorem Tax Sales ..............................77 46. Revised Uniform Limited Partnership Act ........................78 47. Business and Nonprofit Entities Code ...............................80 48. Electronic Recording of Real Estate Records ....................81 49. Uniform Prudent Management of Institutional Funds Act ...........................................................................82 50. Alabama Uniform Parentage Act .......................................83