Alabama 2022 Regular Session

Alabama House Bill HB42 Compare Versions

Only one version of the bill is available at this time.
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11 HB421
22 215312-12
33 By Representative Allen 3
44 RFD: State Government 4
55 First Read: 11-JAN-22 5
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77 Page 0 215312-1:n:10/19/2021:LK/tgw LSA2021-21281
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1414 SYNOPSIS: Existing law relating to the adoption of new8
1515 rules by agencies grants the Joint Committee on9
1616 Administrative Regulation Review discretionary10
1717 authority to approve, disapprove, or recommend11
1818 changes to an agency's proposed rule, or to render12
1919 no action and approve an agency's proposed rule by13
2020 implication.14
2121 The existing review process for proposed15
2222 rules also requires that: (1) proposed rules that16
2323 have an economic impact on businesses must be17
2424 accompanied by a Business Impact Analysis detailing18
2525 the proposed rule's estimated impact on businesses;19
2626 and (2) proposed rules that have any economic20
2727 impact must be accompanied by a fiscal note21
2828 detailing the rule's impact on the state, its22
2929 governmental and non-governmental entities, and its23
3030 residents, generally. The joint committee, upon24
3131 receipt of these materials, may exercise its25
3232 discretionary power to require the agency to26
3333 Page 1 consider the feasibility of alternatives with less1
3434 economic impact.2
3535 This bill would set a minimum threshold for3
3636 a proposed rule's economic impact where, if the4
3737 total costs estimated within the fiscal note5
3838 detailing the proposed rule's impact exceeds a $16
3939 million threshold, the rule shall not take effect7
4040 absent a joint resolution of approval by the8
4141 Legislature, or submission to the joint committee9
4242 for approval of a germane modification to the rule10
4343 to reduce costs below the threshold. If that11
4444 estimate exceeds $750,000, the Legislative Services12
4545 Agency, Fiscal Division, would perform an analysis13
4646 of the veracity and accuracy of the fiscal note.14
4747 This bill would also allow any member of the15
4848 Legislature or the joint committee to request that16
4949 the joint committee require an agency to prepare17
5050 and submit a Business Impact Analysis.18
5151 19
5252 A BILL20
5353 TO BE ENTITLED21
5454 AN ACT22
5555 23
5656 Relating to administrative procedure; to amend24
5757 Sections 41-22-5.1, 41-22-5.2, and 41-22-23 of the Code of25
5858 Alabama 1975; to set a minimum threshold for a proposed rule's26
5959 economic impact; to set measures to reduce the cost of27
6060 Page 2 proposed rules below that threshold; to require approval by1
6161 the Joint Committee on Administrative Regulation Review for2
6262 any rule with costs above that threshold to take effect; and3
6363 to allow a member of the Legislature to petition the joint4
6464 committee to request a Business Impact Analysis without5
6565 prompting by a business.6
6666 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:7
6767 Section 1. Sections 41-22-5.1, 41-22-5.2, and8
6868 41-22-23, Code of Alabama 1975, are amended to read as9
6969 follows:10
7070 "§41-22-5.1.11
7171 "(a) This section and Section 41-22-5.2 shall be12
7272 known and may be cited as "The Red Tape Reduction Act."13
7373 "(b) When an agency files a notice of intent to14
7474 adopt, amend, or repeal any rule, the agency shall make its15
7575 best efforts to notify the public of the proposed rule. At a16
7676 minimum, when the agency files the notice of intent, the17
7777 agency shall post the text of the rule the agency proposes to18
7878 adopt, amend, or repeal on its website or, if the agency has19
7979 no website, on a website operated or maintained by the20
8080 executive branch. Additionally, when the agency files a notice21
8181 of intent to adopt, amend, or repeal a rule, the agency shall22
8282 electronically notify any person who has registered with the23
8383 agency his or her desire to receive notification of any24
8484 proposal by the agency to adopt, amend, or repeal a rule.25
8585 "(c) If, prior to the end of the notice period, a26
8686 business notifies an agency that it will be negatively27
8787 Page 3 impacted by an action proposed under subsection (b), the1
8888 agency shall prepare and submit to the committee the2
8989 information provided by the affected business as well as a3
9090 business impact analysis of the proposed action. The analysis4
9191 shall estimate the number of businesses subject to the5
9292 agency's proposal as well as the projected reporting,6
9393 recordkeeping, and other administrative costs required for7
9494 compliance with the proposal. An agency shall prepare the8
9595 business impact analysis using information available to the9
9696 agency in the normal course of business and utilizing the10
9797 expertise and experience of existing agency employees. 11
9898 "(d) If, prior to the end of the notice period, any12
9999 member of the Legislature or the joint committee notifies the13
100100 committee that he or she wishes the agency to prepare and14
101101 submit to the committee a business impact analysis as15
102102 described in subsection (c), the committee may, upon a16
103103 majority vote of the committee, require the agency to prepare17
104104 and submit the statement.18
105105 "(d) (e) After receiving a business impact analysis19
106106 from an agency, the committee may require the agency to20
107107 analyze and report to the committee the feasibility of some or21
108108 all of the following methods of reducing the impact of the22
109109 rule on businesses:23
110110 "(1) The establishment of less stringent compliance24
111111 or reporting requirements for businesses.25
112112 Page 4 "(2) The establishment of less stringent schedules1
113113 or deadlines for compliance or reporting requirements for2
114114 businesses.3
115115 "(3) The consolidation or simplification of4
116116 compliance or reporting requirements for businesses.5
117117 "(4) The establishment of performance standards for6
118118 businesses to replace design or operational standards required7
119119 in the rule.8
120120 "(e) (f) The agency shall state in the business9
121121 impact analysis whether the proposed rule is proposed as a10
122122 result of a requirement issued by a federal agency or11
123123 self-regulatory organization or an act of the Legislature to12
124124 administer a non-discretionary tax, license, fee, or penalty .13
125125 If so, the agency shall submit information identifying the14
126126 specific requirement issued by the federal agency or15
127127 self-regulatory organization or required by an act of the16
128128 Legislature.17
129129 "(f) (g) A business impact analysis required to be18
130130 filed pursuant to this section shall be filed with the19
131131 Legislative Services Agency, Legal Division, at the same time20
132132 as the certified rule is filed and shall be available for21
133133 public inspection.22
134134 "(g) (h) Each agency that files a business impact23
135135 analysis, at the time it is filed, shall place that statement24
136136 on its website in a location that is easily accessible by the25
137137 general public, or, if the agency does not have a website, on26
138138 a website operated or maintained by the executive branch.27
139139 Page 5 "(h) (i) If the committee determines that an agency1
140140 or a division of an agency exists primarily to perform2
141141 certification or licensing-related functions, the agency is3
142142 not required to comply with this section unless the committee4
143143 determines in writing that an agency's proposal has such a5
144144 negative impact on businesses that the filing of a business6
145145 impact analysis is warranted. Notwithstanding subsection (c)7
146146 of Section 41-22-6, which provides that a rule is effective 458
147147 days after notice that the agency filed the certified rule9
148148 with the Legislative Services Agency, Legal Division, is10
149149 published in the Alabama Administrative Monthly, in any case11
150150 in which the committee determines that the filing of a12
151151 business impact analysis is warranted as provided in this13
152152 section, the effective date of the rule shall be 45 additional14
153153 days after the effective date specified in subsection (c) of15
154154 Section 41-22-6. In all other respects, the remainder of this16
155155 chapter shall continue to apply to the proposed rule.17
156156 "(i) (j) An agency or department shall fulfill any18
157157 request for license or permit within 28 (30) calendar days19
158158 after receiving the application or notify the applicant of the20
159159 reason for failure to issue the license or permit.21
160160 "(j) (k) An agency is not required to comply with22
161161 this section if the proposed rule is being adopted in order23
162162 for the agency to comply with membership requirements in a24
163163 multi-state or national membership organization.25
164164 Page 6 "(k) (l) This section shall not apply to the1
165165 adoption of an emergency rule adopted pursuant to subsection2
166166 (b) of Section 41-22-5.3
167167 "§41-22-5.2.4
168168 "(a) Within five years of July 1, 2013, and every5
169169 five years thereafter, each agency shall review all agency6
170170 rules existing on that date to determine whether the rules7
171171 should be continued without change, or should be amended or8
172172 rescinded , and shall certify that the agency completed the9
173173 review to the Legislative Services Agency, Legal Division . The10
174174 agency may indicate compliance with the requirements of this11
175175 section by filing a notice in the Alabama Administrative12
176176 Monthly certifying its compliance. If the head of the agency13
177177 determines that completion of the review of existing rules is14
178178 not feasible by the established date, the agency shall publish15
179179 a statement certifying that determination.16
180180 "(b) A rule adopted after July 1, 2013, shall be17
181181 reviewed every five years in a manner consistent with18
182182 subsection (a).19
183183 "(b) If an agency does not certify that the agency20
184184 has reviewed its rules within each five-year period pursuant21
185185 to subsection (a), the agency shall not adopt any new rules22
186186 within each five-year period pursuant to subsection (a),23
187187 unless those new rules are required to be adopted,24
188188 implemented, or amended pursuant to a requirement issued by a25
189189 federal agency, federal law, self-regulatory organization, or26
190190 required by an act of the Legislature.27
191191 Page 7 "§41-22-23.1
192192 "(a) The notice required by subdivision (a)(1) of2
193193 Section 41-22-5 shall be given, in addition to the persons3
194194 named in the notice, to each member of the committee and such4
195195 other persons in the legislative department as the committee5
196196 requires. The form of the proposed rule presented to the6
197197 committee shall be as follows: New language shall be7
198198 underlined and language to be deleted shall be typed and lined8
199199 through. The notice may be provided in an electronic format.9
200200 "(b)(1) Within the 45-day period between the date of10
201201 publication in the Alabama Administrative Monthly that a rule11
202202 has been certified and the date it becomes effective, and12
203203 subject to subsection (h) of Section 41-22-5.1, the committee13
204204 shall study all proposed rules and may hold public hearings.14
205205 The committee may adopt a policy providing when a public15
206206 hearing will be held on a rule meeting specified criteria. In16
207207 the event the committee fails to give notice to the agency of17
208208 either its approval or disapproval of the proposed rule within18
209209 45 days after the notice is published in the Alabama19
210210 Administrative Monthly that the rule has been certified and20
211211 filed with the Legislative Services Agency, Legal Division,21
212212 pursuant to Section 41-22-6, the committee shall be deemed to22
213213 have approved the proposed rule for the purposes of this23
214214 section.24
215215 (2) In the event the committee disapproves a25
216216 proposed rule or any part thereof, it shall give notice of the26
217217 disapproval to the agency. The disapproval of any rule may be27
218218 Page 8 appealed to the Lieutenant Governor in writing by the agency1
219219 that submitted the rule within 15 days of disapproval. The2
220220 Office of the Lieutenant Governor shall stamp the written3
221221 appeal to denote the date the appeal was received. If the4
222222 disapproval of a rule is appealed to the Lieutenant Governor,5
223223 the Lieutenant Governor, within the 15 days after the notice6
224224 of appeal of the disapproval of the rule is filed, may review7
225225 the rule and hold public hearings he or she determines8
226226 necessary.9
227227 "(3) If the Lieutenant Governor sustains the10
228228 disapproval of the rule, he or she shall notify the committee11
229229 and return the rule to the agency and the disapproval shall be12
230230 final.13
231231 "(4) If the Lieutenant Governor approves the rule,14
232232 he or she shall notify the chair of the committee. The rule15
233233 shall become effective upon adjournment of the next regular16
234234 session of the Legislature that commences after the approval17
235235 unless, prior to that time, the Legislature adopts a joint18
236236 resolution that overrules the approval by the Lieutenant19
237237 Governor and sustains the action of the committee.20
238238 "(5) If the Lieutenant Governor fails to either21
239239 approve or disapprove the rule within the 15 days after the22
240240 notice of appeal of the disapproval of the committee, the rule23
241241 shall be deemed approved and the rule shall become effective24
242242 upon adjournment of the next regular session of the25
243243 Legislature that commences after the deemed approval unless,26
244244 prior to that time, the Legislature adopts a joint resolution27
245245 Page 9 that overrides the deemed approval of the Lieutenant Governor1
246246 and sustains the action of the committee. In the event the2
247247 Office of the Lieutenant Governor is vacant, a rule3
248248 disapproved by the committee shall be suspended until the4
249249 adjournment of the next regular session of the Legislature5
250250 following the disapproval. The rule shall be reinstated on6
251251 adjournment of that regular session unless the Legislature, by7
252252 joint resolution, sustains the disapproval.8
253253 "(c) The committee may propose an amendment to any9
254254 proposed rule and return it to the agency with the suggested10
255255 amendment. In the event the agency accepts the rule as11
256256 amended, the agency may resubmit the rule as amended to the12
257257 committee and the rule shall become effective on the date13
258258 specified in the rule, or on the date the amended rule is14
259259 submitted, whichever is later. In the event the agency does15
260260 not accept the amendment, the proposed amended rule shall be16
261261 deemed disapproved, as provided in subsection (b).17
262262 "(d) An agency may withdraw a proposed or certified18
263263 rule. An agency may resubmit a rule so withdrawn or returned19
264264 under this section with minor modification. Such a rule is a20
265265 new filing and subject to this section but is not subject to21
266266 further notice as provided in subsection (a) of Section22
267267 41-22-5.23
268268 "(e) The committee is authorized to review and24
269269 approve or disapprove any rule adopted prior to October 1,25
270270 1982.26
271271 Page 10 "(f) A rule submitted to the committee which has an1
272272 economic impact shall be accompanied by a fiscal note prepared2
273273 by the agency and include a specific dollar amount of3
274274 anticipated economic impact in accordance with this4
275275 subsection. The fiscal note shall be resubmitted with any5
276276 changes when filing the certified rule. For any fiscal note6
277277 anticipating seven hundred fifty thousand dollars ($750,000)7
278278 or more of implementation and compliance costs, the8
279279 Legislative Services Agency, Fiscal Division, within 21 days9
280280 of certification of the rule, shall provide to the committee a10
281281 brief analysis of the accuracy and veracity of the agency's11
282282 fiscal note and anticipated economic impact. Upon receiving12
283283 the fiscal note, and analysis, if any, the committee may13
284284 require additional information from the submitting agency,14
285285 other state agencies, or other sources. A state agency shall15
286286 cooperate and provide information to the committee. At a16
287287 minimum, the fiscal note submitted with a proposed rule shall17
288288 include the following:18
289289 "(1) A determination of the need for the rule and19
290290 the expected benefit of the rule.20
291291 "(2) A determination of the costs and benefits21
292292 associated with the rule and an explanation of why the rule is22
293293 considered to be the most cost effective, efficient, and23
294294 feasible means for allocating public and private resources and24
295295 for achieving the stated purpose.25
296296 "(3) The effect of the rule on competition.26
297297 Page 11 "(4) The effect of the rule on the cost of living1
298298 and doing business in the geographical area in which the rule2
299299 would be implemented.3
300300 "(5) The effect of the rule on employment in the4
301301 geographical area in which the rule would be implemented.5
302302 "(6) The source of revenue to be used for6
303303 implementing and enforcing the rule.7
304304 "(7) A conclusion on the short-term and long-term8
305305 economic impact upon all persons substantially affected by the9
306306 rule, including an analysis containing a description of which10
307307 persons will bear the costs of the rule and which persons will11
308308 benefit directly and indirectly from the rule.12
309309 "(8) The uncertainties associated with the13
310310 estimation of particular benefits and burdens and the14
311311 difficulties involved in the comparison of qualitatively and15
312312 quantitatively dissimilar benefits and burdens. A16
313313 determination of the need for the rule shall consider17
314314 qualitative and quantitative benefits and burdens.18
315315 "(9) The effect of the rule on the environment and19
316316 public health.20
317317 "(10) The detrimental effect on the environment and21
318318 public health if the rule is not implemented.22
319319 "(11) Whether the proposed rule is proposed as a23
320320 result of a requirement issued by a federal agency or24
321321 self-regulatory organization or required to be adopted,25
322322 implemented, or amended by an act of the Legislature to26
323323 administer a non-discretionary tax, license, fee, or penalty.27
324324 Page 12 "(g)(1) If the total economic impact estimated1
325325 within the fiscal note submitted with a certified rule exceeds2
326326 one million dollars ($1,000,000) in implementation and3
327327 compliance costs, or if the Legislative Services Agency,4
328328 Fiscal Division determines that the estimated economic impact5
329329 exceeds one million dollars ($1,000,000) in implementation and6
330330 compliance costs, the rule shall not take effect unless a7
331331 joint resolution of approval is passed by the Legislature or a8
332332 modification is approved by the joint committee pursuant9
333333 subdivision (2). This subdivision shall not apply to rules10
334334 required to be adopted, implemented, or amended as a result of11
335335 a change in federal law, a requirement issued by a federal12
336336 agency or self-regulatory organization, or as a result of an13
337337 act of the Legislature to administer a non-discretionary tax,14
338338 license, fee, or penalty.15
339339 "(2) The agency may submit to the committee for16
340340 approval a germane modification to the rule to reduce the17
341341 economic impact below one million dollars ($1,000,000); if the18
342342 committee approves the proposed amendment, the rule shall take19
343343 effect as amended. The agency, in modifying the certified20
344344 rule, shall consider the following criteria: 21
345345 "a. The establishment of less stringent compliance22
346346 or reporting requirements for businesses, governmental23
347347 entities, and individuals.24
348348 "b. The establishment of less stringent schedules or25
349349 deadlines for compliance or reporting requirements for26
350350 businesses, governmental entities, and individuals.27
351351 Page 13 "c. The consolidation or simplification of1
352352 compliance or reporting requirements for businesses,2
353353 governmental entities, and individuals.3
354354 "d. The establishment of performance standards for4
355355 businesses or governmental entities to replace design or5
356356 operational standards required in the bill.6
357357 "(g) (h) In determining whether to approve or7
358358 disapprove proposed rules, the committee shall consider the8
359359 following criteria:9
360360 "(1) Is there a statutory authority for the proposed10
361361 rule?11
362362 "(2) Would the absence of the rule or rules12
363363 significantly harm or endanger the public health, safety, or13
364364 welfare?14
365365 "(3) Is there a reasonable relationship between the15
366366 state's police power and the protection of the public health,16
367367 safety, or welfare?17
368368 "(4) Is there another, less restrictive method of18
369369 regulation available that could adequately protect the public?19
370370 "(5) Does the rule or do the rules have the effect20
371371 of directly or indirectly increasing the costs of any goods or21
372372 services involved and, if so, to what degree?22
373373 "(6) Is the increase in cost, if any, more harmful23
374374 to the public than the harm that might result from the absence24
375375 of the rule or rules?25
376376 Page 14 "(7) Are the qualitative and quantitative benefits1
377377 to businesses, governmental entities, and individuals2
378378 outweighed by the estimated burden?3
379379 "(7) (8) Are all facets of the rulemaking process4
380380 designed solely for the purpose of, and so they have, as their5
381381 primary effect, the protection of the public?6
382382 "(8) (9) Any other criteria the committee may deem7
383383 appropriate."8
384384 Section 2. This act shall become effective on the9
385385 first day of the third month following its passage and10
386386 approval by the Governor, or its otherwise becoming law.11
387387 Page 15