SB222 Alabama 2012 Session

Summary

Primary Sponsor

Bill Holtzclaw

Republican

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

SB222 creates a Small Business Regulatory Flexibility Act that requires agencies to analyze rules that could affect small businesses and to periodically review rules to minimize economic impact.

What This Bill Does

It defines what counts as a small business and requires agencies proposing rules that may adversely affect small businesses to prepare a small business economic impact statement and a small business regulatory flexibility analysis. These documents must be filed with the Legislative Reference Service and be publicly available, and small businesses can seek judicial review if agencies don’t comply. The act also requires agencies to review all rules every five years for their effect on small businesses and to review existing rules within four years of the act’s effective date, with possible extensions up to five years.

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) who may be subject to new or existing rules and able to seek judicial review if impacted.
• State agencies/regulatory bodies that propose or implement rules affecting small businesses; they must prepare the required analyses, file documents with the Legislative Reference Service, and periodically review rules for their impact on small businesses.

Key Provisions

• Defines 'small business' as independently owned and operated, employing fewer than 250 full-time employees or having less than $25 million in gross annual sales.
• Before adopting a rule that may have an adverse impact on small businesses, agencies must prepare a small business economic impact statement (SBEIS) detailing affected businesses, estimated costs, potential job losses, and less costly alternatives.
• Before adopting a rule affecting small businesses, agencies must prepare a small business regulatory flexibility analysis to identify ways to minimize negative effects (e.g., less stringent requirements, extended deadlines, consolidated requirements, performance standards, or exemptions).
• These analyses and related notices must be filed with the Legislative Reference Service and be available for public inspection; small businesses can seek judicial review of compliance within one year after final agency action.
• Agencies must review all existing rules within four years of the act’s effective date and complete the review; rules issued after the act must be reviewed every five years, with extensions allowed up to five years.
• The act becomes effective on the first day of the third month after passage and governor approval and is known as the Small Business Regulatory Flexibility Act of 2012.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Administrative Law and Procedure