N.C. Senate Passes Legislation to Limit Bureaucrats’ Rulemaking Power

Last night, the North Carolina Senate passed House Bill 402 Limit Rules With Substantial Financial Costs in a 26-17 party line vote. The bill requires the General Assembly to approve any proposed permanent rule that would cost over $20 million or more over five years. If a proposed rule would cost more than $1 million over five years, then two-thirds of the relevant board must vote for the rule. Any rule that would cost more than $10 million would require a unanimous vote from the board. This legislation does not deal with rules mandated by federal law.

The Senate’s version clarified the definition of “substantial economic impact” to include rules with a $1 million impact over five years, instead of just 12 months, promoting greater financial transparency. The bill now returns to the House for further consideration.

What they are saying:

 "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.”