News & Updates

October 12, 2012

Proposed Amendments to Reform the Constitution

Statewide Amendment 9 (Cleaning up Article 12 on Corporations)  (Act 2012-275)

Statewide Amendment 10 (Cleaning up Article 13 on Banking)  (Act 2012-276)


The Legislature cannot propose a completely new constitution – a convention is required for that (see State v. Manley, 441 So.2d 864 (Ala. 1983)), but the Legislature can propose to overhaul specific articles.

Article 6 (on the Judicial Branch) was overhauled in this manner in the 1970s and Article 8 (on Suffrage) was overhauled in 1996

This effort has been ongoing for many years.  It began with former Representative Jack Venable and others.  A more recent effort began in 2007.
Senate Joint Resolution 82 from the 2011 Session established the Constitutional Revision Commission to work on article-by-article constitutional reform efforts.  The 2012 proposed amendments are the first two that were submitted by that Commission to the Legislature. 


Amendment 9 –Amendment to Article 12 (Corporations)

•The proposed amendment to the private corporation sections of Article 12 (Sections 229-246) does not affect the municipal corporation sections of Article 12 which are found in Sections 220-228.

•Eleven (11) of the current eighteen (18) Sections in Article 12 will be repealed, including antiquated and irrelevant provisions.  Three (3) of the current sections will be amended to update them.

•Currently, Section 229 provides that charitable entities cannot be taxed on their shares.  Because charitable corporations and entities no longer have shares (as they presumably did when the provision was enacted), the proposed amendment removes this antiquated reference to such shares.

•Section 239 would be amended to remove outdated language about the consolidation of telegraph and telephone companies.  To the extent relevant today, these matters are generally regulated under federal laws.

• Section 232 (regarding foreign corporations doing business in Alabama) is repealed.  The necessary provisions of this section are dealt with in Title 10A of the Alabama Code and repealing this section will make the business environment better.

•Section 236 relating to dues from private corporations and corporations’ ability to sue and be sued will be effectively retained by adding it to the end of Section 240.

Amendment 10 –Amendment to Article 13 (Banking)

•The proposed amendment would amend the nine banking sections of Article 13 (Sections 247-255.01).

•Seven (7) of the nine (9) current Sections in Article 13 will be repealed, including antiquated and irrelevant provisions.  Section 255.01 would be repealed only if it is rendered unnecessary under other legal changes.

•Sections 255 is preserved as is.  Sections 249 and 252 are repealed in their entirety.

•The language from some of the repealed sections (Sections 251, 253, and 254) is included at the end of a revised Section 247.

•Nearly all of Section 248 will be repealed with the exception of the requirement that banks may only be established under general banking law.  This retained provision is included in revised Section 247(a).

 


For More Information Visit This Website: You can read the full Act that proposed each of these amendments at this link:


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