HB434 Summary

• Proposes a constitutional amendment to rewrite Section 229 of the Alabama Constitution to authorize the Legislature to pass general laws (rather than special acts) for organizing, operating, and regulating corporations and other entities, with authority to impose a tax on the privilege of doing business in Alabama.

• Amends Section 240 to add language from Section 236 (which would be repealed) specifying that stockholders in a corporation cannot be individually liable for more than the unpaid stock they own.

• Repeals 11 constitutional sections (230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246) relating to private corporations, railroads, and canals, including provisions on corporate charters, stock issuance, railroad regulation, and free passes to legislators.

• Leaves unchanged Sections 235, 238, 239, 241, and 242 relating to public use takings, charter revocation authority, telephone and telegraph regulation, corporation definitions, and railroad/canal public highway status.

• Requires voter approval through a statewide election conducted according to constitutional procedures and election laws.