HB115 Alabama 2010 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2010

Title

Limited partnerships, Uniform Limited Partnership Act, effective date for certain limited partnerships changed from January 1, 2012, to January 1, 2011, to coincide with the effective date of the new business and nonprofit entities code, Act 2009-621, 2009 Reg. Sess. am'd.; Sec. 10-9C-1206 am'd.

Summary

HB115 moves up the start date for applying the Uniform Limited Partnership Act to all Alabama limited partnerships from January 1, 2012 to January 1, 2011, with transitional rules for partnerships formed before 2010.

What This Bill Does

It changes when the Uniform Limited Partnership Act applies to Alabama limited partnerships. It allows partnerships formed before January 1, 2010 to elect to be governed by the act, with that election taking effect January 1, 2010; if they do not elect, these partnerships stay under old law until 2011, when the new act covers all partnerships. It also notes that, after an election, the act's liability rules for general partners toward third parties apply, with phased timing for when those liabilities apply. For partnerships that elect, some pre-existing terms (like certificate changes, duration, and certain partner rights) are not required or remain as under prior law.

Who It Affects

• Limited partnerships in Alabama, especially those formed before January 1, 2010, who will be governed by the act starting January 1, 2011 (with an option to elect earlier).
• General partners and third parties dealing with these partnerships, who will see changes in liability rules once the act applies to them (including phased timing for when liabilities apply).

Key Provisions

• Accelerated effective date: Beginning January 1, 2011, the Uniform Limited Partnership Act governs all limited partnerships in Alabama.
• Election option for pre-2010 partnerships: Partnerships formed before January 1, 2010 may elect to be subject to the act, with the election taking effect January 1, 2010.
• Transitional rules for non-electing pre-2010 partnerships: If a pre-2010 partnership does not elect, it remains under the prior law (Chapter 9B) until January 1, 2011, after which the new act applies to all partnerships.
• Pre-existing terms not required to change for electing partnerships: Electing partnerships are not required to amend their certificate or otherwise change their existing duration, and they retain certain pre-election rights.
• Liability provisions for general partners: After an election, the act’s rules about the liability of general partners to third parties apply, with phased application before a date and to all third parties after that date.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Limited Partnerships