HB434 Alabama 2010 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Gregory Canfield
Republican
Co-Sponsors: Paul DeMarco Steve McMillan
Session: Regular Session 2010
Title: Private corporations, railroads, canals, constitutional provisions in Article XII, Constitution of Alabama of 1901, amended and repealed, Sections 229, 240 (Recompiled Constitution of Alabama of 1901 as amended), am'd., Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const. amend.
Summary: HB434 would rewrite Alabama’s Article XII rules on private corporations and railroads by shifting regulation to general laws, creating a franchise tax, and repealing several old provisions.
What This Bill Does
It would amend Section 229 to require general laws for organizing, dissolving, and regulating corporations, and to impose a franchise tax on the privilege of doing business or being organized, with exemptions for certain benevolent, educational, or religious entities and some Home Owners' Loan Act associations. It would amend Section 240 to state that stockholders are not personally liable beyond their unpaid stock. It would repeal Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, and 246, removing various old rules about charters, foreign corporations, stock issuance, and railroad regulation. It would preserve Sections 235, 238, 239, 241, and 242 as not changed and require a voter-approved election to adopt the amendment.

Who It Affects
Private corporations and other entities doing business in Alabama would be governed by general laws rather than charter-specific rules and would face a franchise tax on the privilege of doing business or being organized.
Stockholders and certain organizations (including benevolent, educational, or religious entities and Home Owners' Loan Act associations) would see changes in liability protections and tax treatment, with stockholders limited to unpaid stock liability and some entities exempt from franchise tax.

Key Provisions
Amends Section 229 to require general laws for organizing, regulating, and taxing corporations, with a franchise tax based on capital stock and exemptions for certain nonprofit and Home Owners' Loan Act associations; allows charter changes under general laws.
Amends Section 240 to ensure stockholders are not personally liable beyond unpaid stock.
Repeals Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, and 246, removing numerous provisions related to private corporations, foreign corporations, charters, stock issuance, railroads, and related practices.
Leaves Sections 235, 238, 239, 241, and 242 unchanged from the current Constitution.
Requires a statewide election for voters to approve the amendment and provides the ballot description language.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Constitutional Amendments