HB3 Alabama 2021 Session

Existing law relating to the adoption of new rules by agencies grants the Joint Committee on Administrative Regulation Review discretionary authority to approve, disapprove, or recommend changes to an agency's proposed rule, or to render no action and approve an agency's proposed rule by implication

The existing review process for proposed rules also requires that: (1) proposed rules that have an economic impact on businesses must be accompanied by a Business Impact Analysis detailing the proposed rule's estimated impact on businesses; and (2) proposed rules that have any economic impact must be accompanied by a fiscal note detailing the rule's impact on the state, its governmental and non-governmental entities, and its residents, generally. The joint committee, upon receipt of these materials, may exercise its discretionary power to require the agency to consider the feasibility of alternatives with less economic impact

This bill would set a minimum threshold for a proposed rule's economic impact where, if the total costs estimated within the fiscal note detailing the proposed rule's impact exceeds a $1 million threshold, the rule shall not take effect absent a joint resolution of approval by the Legislature, or submission to the joint committee for approval of a germane modification to the rule to reduce costs below the threshold. If that estimate exceeds $750,000, the Legislative Services Agency, Fiscal Division, would perform an analysis of the veracity and accuracy of the fiscal note

This bill would also allow any member of the Legislature or the joint committee to request that the joint committee require an agency to prepare and submit a Business Impact Analysis

Relating to administrative procedure; to amend Sections 41-22-5.1, 41-22-5.2, and 41-22-23 of the Code of Alabama 1975, as last amended by Act 2019-498, 2019 Regular Session; to set a minimum threshold for a proposed rule's economic impact; to set measures to reduce the cost of proposed rules below that threshold; to require approval by the Joint Committee on Administrative Regulation Review for any rule with costs above that threshold to take effect; and to allow a member of the Legislature to petition the joint committee to request a Business Impact Analysis without prompting by a business.