HB252 • 2026

Campaign finance; campaign contributions required to be held in federally insured institution

Elections

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Shaw
Last action: 2026-01-15
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The official status metadata contains conflicting information: it states 'Passed Legislature' but also lists 'Pending Committee Action in House of Origin'. The final legal effect depends on resolving this conflict.

HB252: Requiring Campaign Funds to Be Held in Federally Insured Banks

This bill requires political action committees and principal campaign committees to keep all donated money in a bank or financial institution that is insured by the federal government.

What This Bill Does

Amends Section 17-5-6 of the Code of Alabama 1975 under the Fair Campaign Practices Act.
Requires political action committees and principal campaign committees to hold all contributions in a federally insured financial institution.
Maintains existing rules that these groups must use checking accounts, money market accounts, or similar banking accounts for deposits and payments.
Keeps current limits on petty cash funds used for small purchases of $100 or less.

Who It Names or Affects

Political action committees in Alabama
Principal campaign committees in Alabama

Limits and Unknowns

The bill does not explain how the state will check if committees are following this new rule.
The text does not say what happens if a committee fails to keep funds in an insured institution.

Bill History

2026-01-15 House
Pending Committee Action in House of Origin
2026-01-15 House
Read for the first time and referred to the House Committee on Ethics and Campaign Finance

Official Summary Text

Campaign finance; campaign contributions required to be held in federally insured institution

Current Bill Text

Read the full stored bill text

HB252 INTRODUCED
Page 0
HB252
W1BRTE9-1
By Representatives Shaw, Hulsey
RFD: Ethics and Campaign Finance
First Read: 15-Jan-26
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W1BRTE9-1 01/14/2026 PMG (L)cr 2025-2298
Page 1
First Read: 15-Jan-26
SYNOPSIS:
The Fair Campaign Practices Act requires
political action committees and principal campaign
committees to deposit and hold campaign contributions
in and make expenditures from a banking account. The
law also states that contributions, along with any
proceeds made from investing the contributions, may be
used to pay expenditures. The law is otherwise silent
with regard to investing campaign contributions.
This bill would require all contributions to a
political action committee or principal campaign
committee to be held in a federally insured financial
institution.
A BILL
TO BE ENTITLED
AN ACT
Relating to the Fair Campaign Practices Act; to amend
Section 17-5-6, Code of Alabama 1975, to specify that campaign
contributions must be held in a federally insured financial
institution.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 17-5-6, Code of Alabama 1975, is
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HB252 INTRODUCED
Page 2
Section 1. Section 17-5-6, Code of Alabama 1975, is
amended to read as follows:
"§17-5-6
(a) A political action committee and a principal
campaign committee shall maintain a checking account, money
market account, or other similar banking account and shall
deposit any all contributions received by such the committee
into such that account. No expenditure of funds may be made by
any such a political action committee or principal campaign
committee except by check drawn on such that account,
electronic transfer from such that account, a credit card the
balance of which is paid from such that account, or out of a
petty cash fund from which it the committee may make
expenditures not in excess of one hundred dollars ($100) to
any person in connection with a single purchase or
transaction.
(b) All contributions must be held in a federally
insured financial institution. "
Section 2. This act shall become effective October 1,
2026.
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