(a) This section and Section 41-22-5.2 shall be known and may be cited as "The Red Tape Reduction Act."
(b) When an agency files a notice of intent to adopt, amend, or repeal any rule, the agency shall make its best efforts to notify the public of the proposed rule. At a minimum, when the agency files the notice of intent, the agency shall post the text of the rule the agency proposes to adopt, amend, or repeal on its website or, if the agency has no website, on a website operated or maintained by the executive branch. Additionally, when the agency files a notice of intent to adopt, amend, or repeal a rule, the agency shall electronically notify any person who has registered with the agency his or her desire to receive notification of any proposal by the agency to adopt, amend, or repeal a rule.
(c) If, prior to the end of the notice period, a business notifies an agency that it will be negatively impacted by an action proposed under subsection (b), the agency shall prepare and submit to the committee the information provided by the affected business as well as a business impact analysis of the proposed action. The analysis shall estimate the number of businesses subject to the agency's proposal as well as the projected reporting, recordkeeping, and other administrative costs required for compliance with the proposal. An agency shall prepare the business impact analysis using information available to the agency in the normal course of business and utilizing the expertise and experience of existing agency employees.
(d) After receiving a business impact analysis from an agency, the committee may require the agency to analyze and report to the committee the feasibility of some or all of the following methods of reducing the impact of the rule on businesses:
(1) The establishment of less stringent compliance or reporting requirements for businesses.
(2) The establishment of less stringent schedules or deadlines for compliance or reporting requirements for businesses.
(3) The consolidation or simplification of compliance or reporting requirements for businesses.
(4) The establishment of performance standards for businesses to replace design or operational standards required in the rule.
(e) The agency shall state in the business impact analysis whether the proposed rule is proposed as a result of a requirement issued by a federal agency. If so, the agency shall submit information identifying the specific requirement issued by the federal agency.
(f) A business impact analysis required to be filed pursuant to this section shall be filed with the Legislative Services Agency, Legal Division, at the same time as the certified rule is filed and shall be available for public inspection.
(g) Each agency that files a business impact analysis, at the time it is filed, shall place that statement on its website in a location that is easily accessible by the general public, or, if the agency does not have a website, on a website operated or maintained by the executive branch.
(h) If the committee determines that an agency or a division of an agency exists primarily to perform certification or licensing-related functions, the agency is not required to comply with this section unless the committee determines in writing that an agency's proposal has such a negative impact on businesses that the filing of a business impact analysis is warranted. Notwithstanding subsection (c) of Section 41-22-6, which provides that a rule is effective 45 days after notice that the agency filed the certified rule with the Legislative Services Agency, Legal Division, is published in the Alabama Administrative Monthly, in any case in which the committee determines that the filing of a business impact analysis is warranted as provided in this section, the effective date of the rule shall be 45 additional days after the effective date specified in subsection (c) of Section 41-22-6. In all other respects, the remainder of this chapter shall continue to apply to the proposed rule.
(i) An agency or department shall fulfill any request for license or permit within 28 calendar days after receiving the application or notify the applicant of the reason for failure to issue the license or permit.
(j) An agency is not required to comply with this section if the proposed rule is being adopted in order for the agency to comply with membership requirements in a multi-state or national membership organization.
(k) This section shall not apply to the adoption of an emergency rule adopted pursuant to subsection (b) of Section 41-22-5.
Last modified: May 3, 2021