North CarolinaHB 4022025-2026 SessionHouse

Limit Rules With Substantial Financial Costs.

Sponsored By: John R. Bell, IV (Republican), Allen Chesser (Republican), Mike Schietzelt (Republican), Jeff Zenger (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Legislative approval for very costly rules

A permanent rule that costs $20 million or more over five years takes effect only after the General Assembly passes a bill approving it. If approved, it starts on the first day of the next month after the bill takes effect, or on a later date the agency sets. If lawmakers do not approve it, the Rules Review Commission returns the rule to the agency within 15 days after the Assembly adjourns for 30 days or more. These high‑cost rules are not delayed by the “10 or more objections” process. Rules required by federal law or needed to keep federal programs in compliance are exempt.

Stronger cost reviews for new rules

Before publishing a permanent rule with a substantial economic impact, an agency must prepare a fiscal note and get approval and a certification from the Office of State Budget and Management. OSBM has 90 days to write the note if asked; if it misses that, the agency writes it and OSBM has 14 days to review. A “substantial economic impact” now means at least $1 million over five years. These requirements apply to state rulemaking and to periodic reviews, but not to rules required by federal law or needed to keep federal programs in compliance.

Higher votes needed for costly rules

If a board or commission proposes a permanent rule that costs at least $1 million over five years, it must pass by a two‑thirds vote of members present and voting. If the cost is at least $10 million over five years, it must pass unanimously by members present and voting. This raises the bar for adopting expensive rules.

Sponsors & Cosponsors

Cosponsors

Jay Adams
Republican • House
Jonathan L. Almond
Republican • House
Dean Arp
Republican • House
Jennifer Balkcom
Republican • House
Brian Biggs
Republican • House
Hugh Blackwell
Republican • House
John M. Blust
Republican • House
Jerry "Alan" Branson
Republican • House
Mark Brody
Republican • House
Celeste C. Cairns
Republican • House
Grant L. Campbell, MD
Republican • House
Todd Carver
Republican • House
Tricia Ann Cotham
Republican • House
Ted Davis, Jr.
Republican • House
Jimmy Dixon
Republican • House
Brian Echevarria
Republican • House
Blair Eddins
Republican • House
Wyatt Gable
Republican • House
Karl E. Gillespie
Republican • House
Edward C. Goodwin
Republican • House
Dudley Greene
Republican • House
Kelly E. Hastings
Republican • House
Chris Humphrey
Republican • House
Cody Huneycutt
Republican • House
Frank Iler
Republican • House
Jake Johnson
Republican • House
Kyle Hall
Republican • House
Keith Kidwell
Republican • House
Donnie Loftis
Republican • House
Jarrod Lowery
Republican • House
Jeffrey C. McNeely
Republican • House
Charles W. Miller
Republican • House
Ben T. Moss, Jr.
Republican • House
Neal Jackson
Republican • House
Erin Paré
Republican • House
Howard Penny, Jr.
Republican • House
Ray Pickett
Republican • House
Larry W. Potts
Republican • House
A. Reece Pyrtle, Jr.
Republican • House
Timothy Reeder, MD
Republican • House
Heather H. Rhyne
Republican • House
Dennis Riddell
Republican • House
Stephen M. Ross
Republican • House
Paul Scott
Republican • House
Mitchell S. Setzer
Republican • House
Phil Shepard
Republican • House
Sarah Stevens
Republican • House
Larry C. Strickland
Republican • House
John A. Torbett
Republican • House
Steve Tyson
Republican • House
Bill Ward
Republican • House
Harry Warren
Republican • House
Diane Wheatley
Republican • House
Donna McDowell White
Republican • House
David Willis
Republican • House
Matthew Winslow
Republican • House