HB42 Alabama 2022 Session

Summary

Primary Sponsor

Wes AllenSecretary

Republican

Session

Regular Session 2022

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

HB42 would raise the bar for how much proposed agency rules cost, require business impact analyses, and let lawmakers modify or pause costly rules to reduce burdens.

What This Bill Does

HB42 creates the Red Tape Reduction Act to add cost controls on new rules. If a proposed rule is estimated to cost more than $1,000,000 to implement and comply, it cannot take effect unless the Legislature approves it or the rule is modified to cut costs below the threshold. If the cost estimate is $750,000 or more, the Legislative Services Agency will analyze the fiscal note for accuracy. The bill also lets legislators or the joint committee request business impact analyses and requires agencies to post proposed rule text, notify interested parties, and consider ways to reduce burdens (e.g., simpler requirements, looser deadlines, consolidation, or performance-based standards).

Who It Affects

• Businesses and the business community in Alabama, who could face new or higher compliance costs and will gain clearer information about the cost impact through required business impact analyses.
• State and local government agencies and the Legislature, who must prepare and review business impact analyses, post rule notices, and may modify or delay rules to keep costs under the specified thresholds.

Key Provisions

• Creates The Red Tape Reduction Act and amends Sections 41-22-5.1, 41-22-5.2, and 41-22-23.
• Sets a $1,000,000 threshold: rules with estimated costs above this amount cannot take effect without legislative approval or a germane modification to reduce costs below the threshold.
• Triggers an analysis by the Legislative Services Agency if the fiscal note estimates $750,000 or more in costs to implement or comply.
• Requires agencies to post proposed rule text online and notify interested parties; requires business impact analyses when negative impact is identified or requested by legislators or the joint committee.
• Allows the joint committee to require a business impact analysis and to study methods to reduce impact (less stringent compliance, flexible deadlines, consolidation, or performance standards).
• Requires detailed fiscal notes with specific cost, benefit, and impact information; allows amendments to reduce the cost below the threshold and outlines the approval/disapproval process and timelines.

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