HB150 Alabama 2012 Session

Summary

Primary Sponsor

Mike Millican

Republican

Co-Sponsors

William RobertsLynn GreerDan WilliamsPaul W. LeeApril WeaverBarry MooreEd HenryWes LongBecky NordgrenMac ButtramDonnie ChesteenJohn MerrillKen JohnsonPaul BeckmanBill PooleMark TuggleTerri CollinsKerry RichMac McCutcheonVictor GastonMike BallJack WilliamsHarry ShiverJoe FaustChad FincherAlan BakerSteve McMillanJim McClendonRandy WoodJim BartonDuwayne BridgesBlaine GalliherAllen TreadawayK.L. BrownAllen Farley

Session

Regular Session 2012

Title

Administrative Procedure Act, rules affecting small business, small business economic impact and regulatory flexibility analysis required under certain conditions, agencies to review rules every five years for effect on small businesses, Secs. 41-22-5.1, 41-22-5.2 added

Summary

HB150 creates the Small Business Regulatory Flexibility Act, requiring agencies to study and disclose how proposed rules affect small businesses and to review rules to minimize their impact.

What This Bill Does

It defines 'small business' and requires agencies to prepare and file a small business economic impact statement for rules that may adversely affect small businesses, and a small business regulatory flexibility analysis for rules that affect them. Compliance with these requirements is subject to judicial review. Agencies must file these documents with the Legislative Reference Service and make them available to the public. Agencies must review all existing rules within four years and then every five years to minimize the economic impact on small businesses.

Who It Affects

• Small businesses: defined as independently owned and operated entities with fewer than 250 full-time employees or less than $25 million in gross annual sales; they may be subject to required statements/analyses and have a path to judicial review if the agency doesn't comply.
• State and local/other agencies proposing rules: must prepare and file required statements and analyses before adopting rules that affect small businesses, file with the Legislative Reference Service, and periodically review rules to minimize impact on small businesses; their actions are subject to public disclosure and potential judicial review for compliance.

Key Provisions

• Defines small business as independently owned and operated, employing fewer than 250 full-time employees or having gross annual sales under $25 million.
• Before adopting a rule that may have an adverse impact on small businesses, agencies must prepare a small business economic impact statement including the number of affected small businesses, estimated costs of compliance, potential job losses, and less intrusive alternatives.
• Before adopting a rule that affects small businesses, agencies must prepare a small business regulatory flexibility analysis to minimize impact, considering options such as less stringent requirements, adjusted schedules, consolidation of requirements, alternative performance standards, or partial exemptions for small businesses.
• Requires these statements to be filed with the Legislative Reference Service at the notice of intent to adopt the rule and to be publicly accessible.
• Small businesses adversely affected may seek judicial review of agency compliance within one year after final agency action.
• Section 41-22-5.2 requires each agency to review all existing rules within four years and then every five years to minimize economic impact on small businesses, with possible extensions up to five years if needed; rules adopted after the act's effective date must also be reviewed every five years.
• Review factors include continued need for the rule, public complaints, rule complexity, overlaps with other rules, and changes in technology or conditions since last evaluation.
• Effective date: the act becomes law on the first day of the third month after its passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Administrative Law and Procedure