HB21 Summary

• Amends Section 229 of the Alabama Constitution to authorize the Legislature to pass general laws under which corporations and other entities may be organized, dissolved, and regulated, with the Legislature required to provide for a tax on the privilege of doing business or being organized under Alabama law.

• Amends Section 240 to add language 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232, 233, 234, 236, 237, 243, 244, 245, and 246) relating to private corporations, railroads, and canals that contain outdated or specific regulatory provisions.

• Leaves unchanged several sections including those addressing property taking for public use, legislative authority to revoke charters, telephone and telegraph company regulation, and railroad rights.

• Requires the proposed constitutional amendment to be submitted to voters for approval by majority vote in accordance with constitutional procedures and state election laws.