SB503 By Senators Holley and Waggoner RFD Governmental Affairs Rd 1 21-MAY-15

SYNOPSIS: Under existing law, the board of an agency that regulates a business or profession which is controlled by active market participants in the business or profession, do not have state immunity from federal anti-trust law unless the board is subject to active state supervision.

Also under existing law, administrative rules of agencies that regulate a business or profession are subject to review by the Joint Committee on Administrative Regulation Review prior to becoming effective. The committee may approve, disapprove, disapprove with a suggested amendment, or allow the agency to withdraw the rule for revision. A rule on which the committee takes no action is deemed approved.

This bill would require certified rules of the Board of Medical Examiners and the Medical Licensure Commission to be reviewed by the Legislative Reference Service to determine whether the rule constitutes an anticompetitive and unfair method of competition. If the Legislative Reference Service makes such a determination, the committee would be required to meet to review the rule and determine whether the rule should be approved, disapproved, disapproved with a suggested amendment, or withdrawn. The bill would also authorize the board and commission to submit previously adopted rules for a similar review and require the board or commission to propose an amendment to a rule or the repeal of a rule if the committee determines the rule is an anticompetitive and unfair method of competition.

The bill would allow the Legislative Reference Service to impose a fee for providing the review.

A BILL TO BE ENTITLED AN ACT

To add Section 41-22-22.1 to the Code of Alabama 1975; to provide for further review of rules of the Board of Medical Examiners and the Medical Licensure Commission by Legislative Reference Service and by the Joint Committee on Administrative Regulation Review under certain conditions and to provide for certain fees to cover the costs of the review.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. Section 41-22-22.1 is added to the Code of Alabama 1975 to read as follows:

§41-22-22.1.

(a) The Legislative Reference Service shall review each rule certified by the Board of Medical Examiners and the Medical Licensure Commission to determine whether the rule constitutes an anticompetitive and unfair method of competition.

(b) If the Legislative Reference Service determines there is probable cause to believe a rule subject to subsection (a) constitutes an anticompetitive and unfair method of competition, it shall certify that fact to the committee. Upon receipt of a certification under this subsection, the chair of the committee shall call a meeting of the committee to review the rule and proceed under Section 41-22-23.

(c) The Board of Medical Examiners and the Medical Licensure Commission may submit a previously adopted rule to the Legislative Reference Service for a determination of whether the previously adopted rule constitutes an anticompetitive and unfair method of competition. If the Legislative Reference Service determines there is probable cause to believe the previously adopted rule constitutes an anticompetitive and unfair method of competition, it shall certify that fact to the committee. Upon receipt of a certification under this subsection, the chair of the committee shall call a meeting of the committee to review the rule. If the committee determines the rule constitutes an anticompetitive and unfair method of competition, the board or commission shall propose an amendment to the rule to eliminate the anticompetitive and unfair portions of the rule or, if appropriate, shall propose the repeal of the rule.

(d) In addition to the fee levied under Section 41-22-7(i), the Legislative Reference Service shall charge the board or commission that submits a rule under subsection (a) or (c) a fee in the amount necessary to recover the costs of the Legislative Reference Service in complying with this section.