SB29 Alabama 2011 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsor

Ben H. Brooks

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railroads, canals, constitutional provisions in Article XII, Constitution of Alabama of 1901, amended and repealed, Sections 229, 240 (Recompiled Constitution of Alabama of 1901 as amended), am'd., Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

Proposes a constitutional amendment to rewrite Alabama's Article XII on private corporations and railroads, shifting toward general laws and adding a franchise tax, while repealing several existing provisions.

What This Bill Does

It would rewrite Section 229 to let the Legislature pass 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 nonprofit and building/loan associations. It would repeal several sections about private corporations and railroads and canals, removing many rules on charters, liability, foreign corporations, and railroad regulation. It would amend Section 240 to limit stockholder liability to unpaid stock. It would exempt strictly benevolent, educational, or religious corporations and certain building and loan associations from the franchise tax on withdrawable shares. Some related provisions would remain unchanged.

Who It Affects

• Corporations and other entities doing business in Alabama would be regulated under general laws and taxed by a state franchise tax.
• Stockholders would be liable only for their unpaid stock, and certain nonprofit or financial entities (benevolent/educational/religious corporations and some building and loan associations) would have exemptions from the franchise tax on withdrawable shares.

Key Provisions

• Amend Section 229 to require general laws governing organization, powers, alteration, and regulation of corporations and to authorize a franchise tax on the privilege of doing business, with exemptions for certain nonprofits and housing associations.
• Add language in Section 240 to state that stockholders are not personally liable beyond their unpaid stock, and all corporations can sue and be sued like natural persons.
• Repeal Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, and 246 of Article XII (private corporations and railroads/canals).
• Keep Sections 235, 238, 239, 241, and 242 unchanged by this amendment.
• Require a statewide election to approve the amendment and provide ballot language describing the measure.

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