Alabama Constitution Section 93 - State not to engage in internal improvements or lend money or credit for same; state interest in private or corporate enterprises prohibited.
Alabama Constitution – Section 93 deals with restrictions on the state’s financial involvement in private or corporate ventures, particularly internal improvements. Here's a simplified explanation:
Text of Section 93:
“The state shall not engage in works of internal improvement, nor lend money or credit in aid of such; nor shall the state be interested in any private or corporate enterprise, or lend money or credit to any individual, association, or corporation.”
Explanation:
Section 93 prohibits the State of Alabama from:
Engaging in internal improvements – This means the state itself cannot undertake infrastructure projects like building roads, railroads, canals, etc., unless specifically allowed by law.
Lending its money or credit – The state cannot financially support these projects, even if they're done by private parties.
Becoming financially involved in private or corporate enterprises – It cannot invest in or support businesses, individuals, associations, or corporations.
Purpose:
This section was created to:
Prevent misuse of public funds for private gain.
Limit state debt and risk by avoiding entanglement in risky or speculative ventures.
Ensure a clear separation between public responsibilities and private enterprise.
Exceptions (Modern Context):
While this section sets a strict limitation, modern legal interpretations and constitutional amendments have allowed some flexibility, particularly for:
Public-private partnerships (like economic development zones),
Bond issues for infrastructure where permitted by voter approval or specific legislation,
And local governments, which may have different powers than the state under certain circumstances.
RELATED Blog
0 comments