HB357 Alabama 2012 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Paul DeMarco
Republican
Session: Regular Session 2012
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corporations, railroads, canals, constitutional provisions in Article XII, Constitution of Alabama of 1901, amended and repealed, Sections 229, 240 (Recompiled Constitution of Alabama of 1901 as amended), am'd., Sections 230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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: HB357 would rewrite Alabama's private corporate provisions to rely on general laws for business, create a franchise tax with certain exemptions, update telegraph/telephone rules, and repeal old railroad and private corporate provisions, effective January 1, 2014.
What This Bill Does
It replaces the practice of passing special acts for corporate powers with general laws governing organization, operation, and charter changes. It establishes a franchise tax on doing business in Alabama, proportional to capital stock, with exemptions for strictly benevolent, educational, or religious organizations and withdrawable shares of certain building and loan associations. It preserves corporate personhood for suing and being sued, updates telegraph/telephone company regulations under general law, and repeals several older constitutional sections that dealt specifically with private corporations and railroads.

Who It Affects
Private corporations and other entities doing business in Alabama, now regulated by general laws with a new franchise tax (with some exemptions).
Stockholders, who would remain liable only for any unpaid stock (no broader personal liability).
Telegraph and telephone companies, which would operate under general regulations and be restricted from consolidating with or gaining controlling interests in other competing lines.
Building and loan associations, which would be exempt from the franchise tax on withdrawable shares.

Key Provisions
Amends Section 229 to require general laws for corporate organization, charter changes, and to impose a franchise tax on corporate privilege, with exemptions for certain benevolent/educational/religious groups and withdrawable shares of building and loan associations; clarifies that charters may be amended under general laws.
Amends Section 239 to guarantee telegraph/telephone rights to construct and connect lines, with regulations under general law and a prohibition on consolidating with or controlling competing lines.
Amends Section 240 to maintain that all corporations can sue and be sued like natural persons, with stockholder liability limited to unpaid stock.
Repeals multiple old constitutional sections (230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246) related to private corporations, railroads, and canals.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Constitutional Amendments