Ivey issues executive order cutting ‘red tape’ on citizens, businesses

MONTGOMERY, Ala. (WSFA) - In one of her first actions following the 2023 State of the State address, Gov. Kay Ivey signed an executive order aimed at “making state government work with greater efficiency and accountability for the people of Alabama.”

According to the Ivey, Executive Order 735 will reduce “red tape” for citizens and businesses. It placed a moratorium on new rule-making by executive branch agencies establishing goals for the reduction in discretionary regulatory restrictions on citizens and businesses.

The order will be carried out in three phases over the next two years.

Phase one requires each state executive branch agency to prepare a written inventory of its existing administrative rules. Agencies will provide this information to the Office of the Governor. Phase one is anticipated to occur between March and September of 2023.
Phase two directs each state executive branch agency to develop a written plan to reduce regulatory burdens imposed through its administrative rules and otherwise tighten up its administrative code. Phase two is anticipated to occur between September 2023 and March 2024.
Phase three is where the implementation of each agency’s rule reduction plan will begin. Phase three is anticipated to occur between March 2024 and March 2025.

Additionally, each executive branch agency must designate an existing employee to serve as its red tape reduction coordinator.

“Sometimes, the best thing government can do is just get out of the way and allow the people to handle their business,” Ivey said in a news release. “In many cases, government regulations that were necessary a decade ago have outlived their usefulness, and it’s time for that to change. This order directs state executive branch agencies to find where they can better serve our people, and I look forward to seeing its impact result in positive changes soon.”

House Speaker Nathaniel Ledbetter weighed in on the executive order, saying he doesn’t know much about what it entails yet. He said his staff has given him updates and they will go over it later.

Alabama Restaurant and Hospitality Association applauded Ivey’s order will remove unnecessary barriers for businesses across the state.

“Restaurants and hotels are heavily regulated at the local, state and federal levels, especially putting smaller restaurants and hotels at a competitive disadvantage,” said Mindy Hanan, President & CEO of the Alabama Restaurant & Hospitality Association (ARHA). “That’s why Governor Ivey’s initiative is so important. Addressing red tape is an important building block to economic growth and the future reforms will hopefully save our members time, money, and resources.”

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