SB451 Alabama 2010 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Trip Pittman
Republican
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corporations, railroads, canals, constitutional provisions in Article XII, Constitution of Alabama of 1901, amended and repealed, Sections 229, 240 (Recompiled Constitution of Alabama of 1901 as amended), am'd., Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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: SB451 proposes a constitutional amendment to rewrite Alabama's Article XII on private corporations and railroads, shifting regulation to general laws, imposing a franchise tax, and repealing many existing provisions.
What This Bill Does
It would amend Section 229 to require general laws for forming and regulating corporations and to impose a franchise tax on the privilege of doing business in Alabama, with certain exemptions. It would amend Section 240 to allow corporations to sue in courts like natural persons and limit stockholders' liability to unpaid stock. It would repeal multiple sections (230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246) related to private corporations, railroads, and canals, while leaving Sections 235, 238, 239, 241, and 242 unchanged.

Who It Affects
Corporations and other entities formed or doing business in Alabama would be regulated under general laws and taxed via a state franchise tax, with certain exemptions for benevolent, educational, or religious groups and for Home Owners' Loan Act associations.
Stockholders would have liability limited to the unpaid stock they own, and the bill repeals and changes many old rules about private corporations and railroads, affecting governance and oversight of those entities.

Key Provisions
Amends Section 229 to require general laws for organization, regulation, charter changes, and to implement a franchise tax on corporate privilege, with exemptions for certain types of corporations.
Amends Section 240 to guarantee corporate rights to sue and to cap stockholder liability at the amount of unpaid stock; repeals Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, and 246, which covered various rules about private corporations and railroads, while Sections 235, 238, 239, 241, and 242 would not be changed.

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