HB359 Alabama 2012 Session
Summary
- Primary Sponsor
Paul DeMarcoRepublican- Session
- Regular Session 2012
- Title
- Corporations, Foreign, provided with same obligations, rights, and consequences as other foreign entities doing business unregistered, Sec. 10A-1-7.21 am'd; Secs. 10A-2-15.01, 10A-2-15.02 repealed
- Summary
HB359 requires foreign entities doing business in Alabama to register with the Secretary of State and sets consequences for unregistered entities, including restrictions on suing in Alabama courts and new service-of-process rules.
What This Bill DoesIt requires foreign entities (except those formed under federal law) to register before they may file lawsuits in Alabama courts. If a foreign entity operates without registering, its contracts and ability to defend lawsuits remain, but it is deemed to consent to service of process by mail or other allowed methods. It also preserves owners' liability under their home jurisdiction and repeals two existing provisions. The act takes effect upon approval and has an additional effective date of January 1, 2014, contingent on the constitutional amendment process.
Who It Affects- Foreign entities (not federally formed) doing business in Alabama: must register to sue in Alabama courts; otherwise face restrictions on filing suit.
- Owners of foreign entities: liability remains governed by the laws of the entity's home state and is not waived merely by transacting business in Alabama without registration.
Key ProvisionsAI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.- Amends §10A-1-7.21 to require a foreign entity (excluding federally formed entities) to register in Alabama before maintaining any action in Alabama courts.
- Unregistered foreign entities may have contracts and ongoing defenses, but the lack of registration does not invalidate contracts or bar defense.
- Creates a deemed consent to service of process for unregistered foreign entities, using registered mail or other permitted methods.
- Maintains owners' liability rules as defined by their home jurisdiction and repeals §§10A-2-15.01 and 10A-2-15.02; establishes timing for effectiveness (immediate upon approval with a separate 2014 effective date pending constitutional amendment ratification).
- Subjects
- Corporations
Bill Actions
Delivered to Governor at 5:24 p. m. on May 2, 2012.
Assigned Act No. 2012-304 on 05/09/2012.
Enrolled
Signature Requested
Clerk of the House Certification
Concurred in Second House Amendment
DeMarco motion to Concur In and Adopt adopted Roll Call 1164
Concurrence Requested
Motion to Read a Third Time and Pass adopted Roll Call 876
Marsh motion to Adopt adopted Roll Call 875
Constitution, Campaign Finance, Ethics, and Elections Amendment Offered
Third Reading Passed
Read for the second time and placed on the calendar 1 amendment
Re-referred to Committee on Constitution, Campaign Finance, Ethics, and Elections.
Read for the first time and referred to the Senate committee on Business and Labor
Motion to Read a Third Time and Pass adopted Roll Call 364
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the House of Representatives committee on Constitution, Campaigns and Elections
Bill Text
Votes
Marsh motion to Adopt
DeMarco motion to Concur In and Adopt
Motion to Read a Third Time and Pass
Documents
Source: Alabama Legislature