# Alabama HB200: Alabama Business and Nonprofit Entity Code revised; makes technical changes and corrects references, and codifies practices relating to electronic filing and name reservations Alabama HB200, Alabama Business and Nonprofit Entity Code revised; makes technical changes and corrects references, and codifies practices relating to electronic filing and name reservations, is a 2025 Regular Session House bill sponsored by Almond; status enacted, last action 2025-05-06 (Enacted) (as of 2026-10-19). - Canonical: https://policyrisk.com/state-bill/AL-HB200-2025rs - As of: 2026-10-19 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Alabama HB200 - State: Alabama - Session: 2025 Regular Session - Title: Alabama Business and Nonprofit Entity Code revised; makes technical changes and corrects references, and codifies practices relating to electronic filing and name reservations - Status: enacted - Chamber: House - Introduced: 2025-02-05 - Last action: 2025-05-06, Enacted - Sponsor: Almond - Cosponsors: 0 - Subjects: Businesses & Financial Institutions - Touches household money: no - Roll calls: 6 (404 yes, 0 no in all) - Economic provisions PRIA read: 14 ## Summary No summary available. ## Bill overview: provisions PRIA read - Business agreements can direct inheritance transfers: benefit, low. LLC, partnership, and limited partnership agreements can direct all or part of a holder’s transferable interest to others at death. Recipients can receive the interest with or without payment, but the agreement must provide for the transfer. Existing charging orders—court orders allowing creditors… - Deferred pay remains available after ownership: benefit, low. LLCs and limited liability partnerships can still pay pensions or other deferred compensation for former members’ or partners’ past services. Other laws continue to apply. These provisions do not create a new right to payment or set an amount. The partnership rule also does not excuse an existing p… - Business and nonprofit boards gain approval flexibility: benefit, low. Beginning August 1, 2025, business and nonprofit boards can approve required documents in final or nearly final form. All important terms must be included or determinable from information presented to or known by the board. Boards can later formally confirm their actions, with legal effect from the… - Businesses need fewer transaction plan attachments: benefit, low. Beginning August 1, 2025, covered merger, stock exchange, and conversion plans need not include certain disclosure letters, schedules, or similar papers when approved. This applies to papers that add to, qualify, or create exceptions to the plan’s promises and conditions. Partnership and limited pa… - Clearer operating rules for Alabama businesses: benefit, low. Since August 1, 2025, general entity rules cover Chapters 2A–11, 17, and 18, including statewide trade associations. The Code’s exceptions and rules for resolving conflicts still apply. Alabama entities can make lawful payments, donations, and other business-related decisions, subject to the Code a… - Valid business and nonprofit actions stay valid: benefit, low. Beginning August 1, 2025, the law protects valid actions by partnerships, limited partnerships, business corporations, and nonprofit corporations. An action properly taken under one rule stays valid even when a similar rule has different requirements. Failing to meet that other rule’s requirements… - Businesses must reserve names before filing: cost, low. Beginning August 1, 2025, filing entities must reserve a name with Alabama’s Secretary of State before filing formation papers. General partnerships must also reserve names when filing partnership, not-for-profit partnership, or limited liability partnership statements. They must attach the reserva… - Court remedies for professional business buyouts: mixed, low. Estate representatives, disqualified owners, and transferees can seek judgments for professional corporation stock’s fair value. In covered professional corporation, LLC, and limited liability partnership valuation cases, the business generally pays court and court-appointed appraiser costs. Courts… - Professional stock rights end after delays: mixed, low. A professional corporation must cancel stock if its purchase, redemption, or transfer remains unfinished 12 months after death, disqualification, or transfer. The estate representative, disqualified person, or transferee loses stockholder rights but keeps the right to payment. The corporation can r… - Business agents face clearer filing rules: mixed, low. Agent-filed name or registered-office address changes must list each business’s state-assigned number and confirm written notice at least 10 days before filing. One statement can cover several businesses if it lists each number. An agent can resign even when a business is not in good standing, afte… - Deadlines for professional business owner buyouts: mixed, low. Covered professional corporations, professional-service LLCs, and professional limited liability partnerships must buy interests that cannot pass to qualified owners. When governing documents or an applicable agreement do not set the price, a written fair-value offer is required. Offers are due wit… - Merger plans can require failure payments: mixed, low. Covered merger plans can set penalties or payments when parties fail to meet pre-merger duties or complete the merger. Payments can cover lost premiums or other economic rights, and an entitled business can enforce and keep them. These consequences must appear in the plan and supplement other legal… - Merger representatives can bind business owners: mixed, low. Merger plans can appoint representatives with sole authority to act for owners, including enforcing or settling their rights. This can include owners whose interests are cancelled, exchanged, or changed in the merger. After the required owner vote, covered appointments bind all owners and can be ir… - Merger representatives can bind business owners: mixed, low. Beginning August 1, 2025, merger plans can appoint representatives to act for an organization’s owners. The plan can give them sole authority to enforce or settle owners’ rights under the plan. Appointments can be made at or after owners approve the plan by the required vote. The plan can make appo… ## Sponsors and cosponsors - Sponsor: Almond ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-24 | House | Almond Concur In and Adopt - Adopted Roll Call 1015 | pass | 102 | 0 | 1 | | 2025-04-08 | Senate | Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 542 | pass | 33 | 0 | | | 2025-04-08 | Senate | Singleton motion to Adopt - Adopted Roll Call 541 | pass | 33 | 0 | | | 2025-04-08 | Senate | Third Reading in Second House | pass | 33 | 0 | | | 2025-02-20 | House | Motion to Read a Third Time and Pass - Adopted Roll Call 183 | pass | 101 | 0 | | | 2025-02-20 | House | Third Reading in House of Origin | pass | 102 | 0 | 1 | ## Actions (21) - 2025-05-06: Enacted (House) - 2025-04-29: Delivered to Governor (House) - 2025-04-29: Signature Requested (Senate) - 2025-04-24: Almond Concur In and Adopt - Adopted Roll Call 1015 (House) - 2025-04-24: Ready to Enroll (House) - 2025-04-24: Enrolled (House) - 2025-04-08: Third Reading in Second House (Senate) - 2025-04-08: Judiciary 1st Amendment Offered (Senate) - 2025-04-08: Singleton motion to Adopt - Adopted Roll Call 541 (Senate) - 2025-04-08: Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 542 (Senate) - 2025-03-05: Judiciary 1st Amendment (Senate) - 2025-03-05: Reported Out of Committee Second House (Senate) - 2025-03-05: Read for the Second Time and placed on the Calendar (Senate) - 2025-02-25: Read for the first time and referred to the Senate Committee on Judiciary (Senate) - 2025-02-25: Pending Committee Action in Second House (Senate) - 2025-02-20: Third Reading in House of Origin (House) - 2025-02-20: Motion to Read a Third Time and Pass - Adopted Roll Call 183 (House) - 2025-02-12: Reported Out of Committee House of Origin (House) - 2025-02-12: Read for the Second Time and placed on the Calendar (House) - 2025-02-05: Read for the first time and referred to the House Committee on Judiciary (House) - 2025-02-05: Pending Committee Action in House of Origin (House) ## Bill text - As Introduced: [PDF](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB200-int.pdf) - Enrolled: [PDF](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB200-enr.pdf) ## Related bills - HB52: Income Taxes; to make technical changes to the funding provisions of the CHOOSE Act credits and increase funding, and to extend the sunset date for deductions… (enacted) - SB331: Barbour County, compensation of the judge of probate further provided for (enacted) - SB102: Medicaid; providing presumptive eligibility to pregnant women (enacted) - HB445: Cannabinoids found in hemp; licensure and regulation of sale of consumable cannabinoid products by Alcoholic Beverage Control Board imposed (enacted) - HB357: Tobacco products, heated tobacco product definition and tax provided for (enacted) - HB349: Russell County; sheriff, salary further provided (enacted) ## Sources - [As Introduced (PDF)](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB200-int.pdf) - [Enrolled (PDF)](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB200-enr.pdf) ## Related - [HB52: Income Taxes; to make technical changes to the funding provisions of the CHOOSE…](https://policyrisk.com/state-bill/AL-HB52-2025rs) - [SB331: Barbour County, compensation of the judge of probate further provided for](https://policyrisk.com/state-bill/AL-SB331-2025rs) - [SB102: Medicaid; providing presumptive eligibility to pregnant women](https://policyrisk.com/state-bill/AL-SB102-2025rs) - [HB445: Cannabinoids found in hemp; licensure and regulation of sale of consumable cann…](https://policyrisk.com/state-bill/AL-HB445-2025rs) - [HB357: Tobacco products, heated tobacco product definition and tax provided for](https://policyrisk.com/state-bill/AL-HB357-2025rs) - [HB349: Russell County; sheriff, salary further provided](https://policyrisk.com/state-bill/AL-HB349-2025rs) - [Alabama bills](https://policyrisk.com/states/alabama/bills) - [Alabama state hub](https://policyrisk.com/states/alabama) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/AL-HB200-2025rs (as of 2026-10-19).