SB23 Alabama 2011 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2011

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corporations, railroads, canals, constitutional provisions in Article XII, Constitution of Alabama of 1901, amended and repealed, Sections 229, 240 (Recompiled Constitution of Alabama of 1901 as amended), am'd., Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

SB23 proposes a constitutional amendment to rewrite Alabama's private corporation and railroads rules by shifting regulation to general laws, imposing a franchise tax, and repealing several existing provisions.

What This Bill Does

It would replace current limits on corporate power with a framework where the Legislature passes general laws for how corporations and other entities are organized, dissolved, and regulated, and it would require a state franchise tax on doing business. It would add a provision that stockholders are not personally liable beyond their unpaid stock. It would repeal several existing sections of Article XII that deal with private corporations and railroads, while leaving some sections unchanged, and it would require an election for approval of the amendment.

Who It Affects

• Corporations and other entities operating under Alabama law (including benevolent, educational, or religious organizations and certain building and loan associations) would be governed by general laws rather than charter-specific provisions and would be subject to a state franchise tax.
• Stockholders in private corporations would no longer face personal liability beyond the unpaid stock they own.

Key Provisions

• Amend Section 229 to require general laws for organizing, operating, and regulating corporations and other entities, authorize a franchise tax based on capital stock, and allow charter changes under general laws; exempts certain benevolent, educational, or religious groups and some building/loan associations from the franchise tax on withdrawable shares.
• Amend Section 240 to affirm corporations' right to sue and be sued, with stockholders not personally liable beyond their unpaid stock.
• Repeal Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, and 246 of Article XII (private corporations and railroads/canals).
• Sections 235, 238, 239, 241, and 242 would remain unchanged by the amendment.
• An election would be held to approve the amendment, with ballot language describing the changes and requiring voter 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

Constitutional Amendments