SB128 Summary

• Proposes a constitutional amendment to rewrite Section 229 of the Alabama Constitution to authorize the Legislature to pass general laws for organizing, operating, and regulating corporations and other entities, and to impose a tax on the privilege of doing business or being organized under Alabama law.

• Amends Section 240 to clarify 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• Repeals 11 constitutional sections (230, 231, 232, 233, 234, 236, 237, 243, 244, 245, 246) that contain outdated provisions relating to private corporations, railroads, and canals, including restrictions on charter amendments, stock issuance, and free passes to legislators.

• Preserves Sections 235, 238, 239, 241, and 242 relating to eminent domain, charter revocation authority, telegraph and telephone regulation, corporation definitions, and railroad status as public highways.

• Amendment requires approval by majority of qualified electors voting thereon and shall be conducted according to Sections 284, 285, and 287 of the Alabama Constitution.