HB3 Alabama 2021 Session

Summary

Primary Sponsor

Wes AllenSecretary

Republican

Session

Regular Session 2021

Title

Administrative procedures, minimum threshold for a proposed rule's economic impact set, measures to reduce cost of proposed rules, Secs. 41-22-5.1, 41-22-5.2, 41-22-23 am'd.

Summary

HB3 tightens Alabama's rulemaking by setting cost thresholds, expanding business impact analysis requirements, and increasing legislative oversight of economically significant rules.

What This Bill Does

It establishes a $1,000,000 threshold for a proposed rule's costs, meaning rules above that level cannot take effect without legislative approval or a germane modification to lower costs. If a rule's costs are estimated at $750,000 or more, the Legislative Services Agency must analyze the accuracy of the fiscal note. The bill allows legislators or the Joint Committee on Administrative Regulation Review to require a Business Impact Analysis, requires BIAs to be prepared, filed, and posted, and directs agencies to consider cost-reduction options; it also strengthens public notice, hearings, and overall rule-review processes.

Who It Affects

• Businesses and other entities that would be affected by proposed agency rules, who may be subject to new costs and can be affected by BIAs and potential cost-reducing changes.
• State agencies, the Joint Committee on Administrative Regulation Review, and the Legislature, who would create, review, modify, approve, or delay rules and BIAs, with enhanced fiscal analysis and public transparency.

Key Provisions

• Thresholds: If a proposed rule's implementation and compliance costs exceed $1,000,000, the rule cannot take effect without a joint legislative approval or a germane modification to lower costs below the threshold.
• Fiscal note analysis: If the fiscal note estimates $750,000 or more in costs, the Legislative Services Agency will analyze the note's accuracy within 21 days of certification.
• Business Impact Analysis (BIA): Any legislator or the joint committee can require an agency to prepare and submit a BIA; BIAs must detail the number of affected businesses, estimated costs, and potential cost-reduction options, and must be filed with the LSA and posted publicly.
• Cost-reduction options and oversight: Agencies must consider and report feasible ways to reduce economic impact (e.g., less stringent requirements, adjusted schedules, consolidation, or performance standards) and the committee may approve amendments to reduce costs below $1,000,000.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Administrative Procedure