North Carolina HB 402: Limit Rules With Substantial Financial Costs.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-82
HOUSE BILL 402

*H402-v-6*
AN ACT TO PUT LIMITATIONS ON RULES WITH SUBSTANTIAL FINANCIAL COSTS.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 150B-21.3 reads as rewritten:
"§ 150B-21.3. Effective date of rules.
...
(b) Permanent Rule. – A permanent rule approved by the Commission becomes effective
on the first day of the month following the month the rule is approved by the Commission, unless
(i) the Commission received written objections to the rule in accordance with subsection (b2) of
this section, (ii) the rule would have an aggregate financial cost, as defined in G.S. 150B-19.4(d),
on all persons affected of at least twenty million dollars ($20,000,000) in a five-year period and
requires ratification by the General Assembly pursuant to subsection (b3) of this section, or
unless (iii) the agency that adopted the rule specifies a later effective date.
...
(b2) Objection. – Any person who objects to the adoption of a permanent rule may submit
written comments to the agency. If the objection is not resolved prior to adoption of the rule, a
person may submit written objections to the Commission. If the Commission receives written
objections from 10 or more persons, no later than 5:00 P.M. of the day following the day the
Commission approves the rule, clearly requesting review by the legislature in accordance with
instructions posted on the agency's Web site pursuant to G.S. 150B-19.1(c)(4), and the
Commission approves the rule, the rule will become effective as provided in subsection (b1) of
this section. The Commission shall notify the agency that the rule is subject to legislative
disapproval on the day following the day it receives 10 or more written objections. If the
Commission receives objections from 10 or more persons clearly requesting review by the
legislature, and the rule objected to is one of a group of related rules adopted by the agency at
the same time, the agency that adopted the rule may cause any of the other rules in the group to
become effective as provided in subsection (b1) of this section by submitting a written statement
to that effect to the Codifier of Rules before the other rules become effective. A rule that requires
ratification by the General Assembly pursuant to subsection (b3) of this section shall not be
subject to this subsection.
(b3) A permanent rule that would have an aggregate financial cost, as defined in
G.S. 150B-19.4(d), on all persons affected of at least twenty million dollars ($20,000,000) in a
five-year period shall become effective only if the General Assembly ratifies a bill to approve
the rule. If a bill that specifically approves the rule is ratified by the General Assembly, the rule
shall become effective on the later of (i) the first day of the month following the month that the
bill ratifying the rule becomes effective or (ii) the date specified by the agency adopting the rule.
If the General Assembly does not ratify a bill approving the rule, the Commission shall return
the rule to the agency within 15 days of the General Assembly adjourning for a period of 30 days
or more. This subsection shall not apply to a rule or set of rules that is required by federal law,
including a rule or set of rules necessary to maintain compliance with a program delegated to the
State from a federal agency.

Page 2 Session Law 2025-82 House Bill 402
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SECTION 2. G.S. 150B-21.4(b1) reads as rewritten:
"(b1) Substantial Economic Impact. – Before an agency publishes in the North Carolina
Register the proposed text of a permanent rule change that would have a substantial economic
impact and that is not identical to a federal regulation that the agency is required to adopt, the
agency shall prepare a fiscal note for the proposed rule change and have the note approved by
the Office of State Budget and Management. The agency must also obtain from the Office a
certification that the agency adhered to the regulatory principles set forth in
G.S. 150B-19.1(a)(2), (5), and (6). The agency may request the Office of State Budget and
Management to prepare the fiscal note only after, working with the Office, it has exhausted all
resources, internal and external, to otherwise prepare the required fiscal note. If an agency
requests the Office of State Budget and Management to prepare a fiscal note for a proposed rule
change, that Office must prepare the note within 90 days after receiving a written request for the
note. If the Office of State Budget and Management fails to prepare a fiscal note within this time
period, the agency proposing the rule change shall prepare a fiscal note. A fiscal note prepared
in this circumstance does not require approval of the Office of State Budget and Management.
If an agency prepares the required fiscal note, the agency must submit the note to the Office
of State Budget and Management for review. The Office of State Budget and Management shall
review the fiscal not