Measure Reining in Unaccountable Bureaucracy and Bringing Transparency to Rulemaking Process Passes NC Senate

Raleigh, N.C. — The North Carolina Senate approved a bill that takes critical steps to rein in costly bureaucracy and bring much-needed transparency to our state’s rulemaking process.

House Bill 402, “Limit Rules with Substantial Financial Costs,” received a XX-XX vote on Tuesday.

“This is a straightforward, commonsense bill ensuring that costly rules implemented by unelected bureaucrats get a second look from the General Assembly,” Senate Leader Phil Berger (R-Rockingham) said.

Sen. Steve Jarvis (R-Davidson) said, “We have dozens of boards and commissions that have broad rulemaking authority in our state. Those rules have significant impacts on the daily lives of North Carolinians, and it’s important to have an avenue to hold these boards accountable and bring much-needed transparency to the rulemaking process. That’s why this bill is vital.”

The bill requires the General Assembly to approve any proposed permanent rule that would cost $20 million or more over five years, unless otherwise mandated by federal law. Additionally, if a rule is found to cost more than $1 million over five years, then a 2/3 vote of the relevant board will be required for it to be adopted. For any rule that would cost more than $10 million over five years, a unanimous vote would be needed unless it is a federally mandated rule.

By redefining “substantial economic impact” to include rules with a $1 million impact over five years, instead of just 12 months, House Bill 402 promotes greater transparency through detailed fiscal notes, giving stakeholders a clear picture of long-term costs.

The bill now returns to the House of Representatives for consideration.