Senate Governmental Affairs amends, OKs franchisee protection bill; Senate Judy OKs Business Entity & LLC law revisions

Tuesday, the Senate Governmental Affairs Committee amended and approved the Protect Alabama Small Businesses Act, which is intended to protect franchisees from unfair treatment by franchisors.

Sen. Chris Elliott, R-Fairhope, a former franchise owner and the author of SB129, said his bill would protect franchisees from unjust termination, facilitate sales and transfers of franchises and allow any grievances to be aired in Alabama courts.

HB134, the House companion bill, and HB352, a similar but slightly different bill, both await consideration by the House Commerce and Small Business Committee.

BUSINESS CODE AND LLCS
The Senate Judiciary Committee this week approved two other business governance bills written by the Alabama Law Institute. Both the bills have already passed the Alabama House.

HB250 by Rep. Bill Poole, R-Tuscaloosa, is a more than 400-page bill that modernizes the Alabama Business and Nonprofit Entity Code and better aligns state law with current federal law. While Judiciary approved the House bill in other action Wednesday, the Senate Fiscal Responsibility and Economic Development Committee approved the Senate companion, SB174.

Senate Judiciary made extensive changes to HB251, also by Poole, which amends revisions the Legislature made last year to the Alabama LLC law, primarily related to the definition of partnerships. The Senate Fiscal Responsibility and Economic Development Committee approved the companion, SB178, on April 10.

Both the House and Senate bills are ready for consideration by the full Senate.

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