SB38 Alabama 2010 Session

Summary

Primary Sponsor

Hinton Mitchem

Democrat

Session

Regular Session 2010

Title

Corporations, Secretary of State, required to administratively dissolve for violations of federal law regarding employment of unauthorized aliens

Summary

The bill lets Alabama dissolve a corporation administratively if it is convicted of employing unauthorized aliens, and it blocks reinstatement for at least a year.

What This Bill Does

It would require the Secretary of State to start administrative dissolution proceedings against a corporation that has been convicted of violating federal laws about employing unauthorized aliens (8 U.S.C. 1324a(f)). Upon dissolution, the corporation's affairs would be handled under Alabama corporate law, and it would not be eligible for reinstatement for at least one year. The corporation must report its conviction to the Secretary and file an authenticated copy of the judgment, and the Secretary must provide notice and an opportunity to be heard before dissolving. The act would take effect on the first day of the third month after passage and approval.

Who It Affects

• Corporations in Alabama that have been convicted of violating federal laws about employing unauthorized aliens (pattern or practice) — they could be dissolved administratively.
• Officers and directors of those corporations — their actions that led to the conviction could trigger dissolution and loss of corporate status for at least one year.

Key Provisions

• Secretary of State must commence administrative dissolution when a corporation is convicted of violating 8 U.S.C. 1324a(f) for pattern or practice of employing unauthorized aliens.
• Upon dissolution, the corporation's properties and affairs proceed under Alabama corporate law.
• A dissolved corporation is not eligible for reinstatement for a period of not less than one year.
• Corporations convicted under 8 U.S.C. 1324a(f) must immediately report the conviction to the Secretary and file an authenticated copy of the judgment.
• Before issuing a dissolution order, the Secretary must provide notice and an opportunity to be heard.
• The act becomes effective on the first day of the third month following its passage and approval.

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

Subjects

Crimes and Offenses