North CarolinaHB 4022025-2026 SessionHouse

AN ACT TO ENACT THE REGULATIONS FROM THE EXECUTIVE IN NEED OF SCRUTINY ACT.

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

Signed by Governor

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Bill Overview

Analyzed Economic Effects

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

Tougher approval for costly state rules

The law adds extra approval for costly state rules. Any permanent rule that costs people at least $20,000,000 over five years needs a bill the General Assembly ratifies. Once ratified, it starts on the later of the first day of the month after the bill takes effect or the agency’s set date. If not ratified, the Rules Review Commission returns it to the agency within 15 days after the Assembly adjourns for 30 or more days. Boards must pass rules that cost at least $1,000,000 over five years by a two-thirds vote, and at least $10,000,000 by a unanimous vote. These changes do not cover rules required by federal law. They apply to rules adopted on or after June 18, 2025.

Fiscal notes for high impact rules

Before publishing a permanent rule that costs people at least $1,000,000 over five years, an agency must prepare a fiscal note and get approval from the Office of State Budget and Management (OSBM). The note must use a 7% discount rate to show net present value. The agency may ask OSBM to draft the note; OSBM has 90 days. If OSBM does not finish, the agency may draft it and submit it to OSBM within 14 days. Not having an approved note is a valid reason to object to the rule.

Public objections can delay new rules

If 10 or more people object in writing by 5:00 PM the day after a permanent rule is approved, and they ask for legislative review as instructed on the agency website, the rule does not take effect right away. The Rules Review Commission notifies the agency, and the rule follows the later effective-date steps and is subject to legislative disapproval. If the rule is part of a group, the agency can still move other related, non‑objected rules by filing a statement with the Codifier before they take effect. This option does not apply to rules that must be ratified by the General Assembly.

Sponsors & Cosponsors

Sponsors

  • IV John R. Bell

    Republican • House

  • Allen Chesser

    Republican • House

  • Mike Schietzelt

    Republican • House

  • Jeff Zenger

    Republican • House

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

  • MD Grant L. Campbell

    Republican • House

  • Todd Carver

    Republican • House

  • Tricia Ann Cotham

    Republican • House

  • Jr. Ted Davis

    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

  • Todd Johnson

    Republican • Senate

  • Kyle Hall

    Republican • House

  • Keith Kidwell

    Republican • House

  • Donnie Loftis

    Republican • House

  • John L. Lowery

    Republican • House

  • Jeffrey C. McNeely

    Republican • House

  • Charles W. Miller

    Republican • House

  • Jr. Ben T. Moss

    Republican • House

  • Brent Jackson

    Republican • Senate

  • Erin Paré

    Republican • House

  • Jr. Howard Penny

    Republican • House

  • Ray Pickett

    Republican • House

  • Larry W. Potts

    Republican • House

  • Jr. A. Reece Pyrtle

    Republican • House

  • MD Timothy Reeder

    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

Roll Call Votes

All Roll Calls

Yes: 524 • No: 346

House vote 7/29/2025

HB 402: Limit Rules With Substantial Financial Costs.

Yes: 73 • No: 47

Senate vote 7/29/2025

HB 402: Limit Rules With Substantial Financial Costs.

Yes: 30 • No: 19 • Other: 1

House vote 7/29/2025

HB 402: Limit Rules With Substantial Financial Costs.

Yes: 72 • No: 48

House vote 6/17/2025

HB 402: Limit Rules With Substantial Financial Costs.

Yes: 70 • No: 44 • Other: 6

Senate vote 6/10/2025

HB 402: Limit Rules With Substantial Financial Costs.

Yes: 42 • No: 1 • Other: 7

Senate vote 6/10/2025

HB 402: Limit Rules With Substantial Financial Costs.

Yes: 26 • No: 17 • Other: 7

Senate vote 6/10/2025

HB 402: Limit Rules With Substantial Financial Costs.

Yes: 26 • No: 17 • Other: 7

House vote 4/16/2025

HB 402: NC Regulations from the Executive in Need of Scrutiny (REINS) Act.

Yes: 68 • No: 45 • Other: 7

House vote 4/16/2025

HB 402: NC Regulations from the Executive in Need of Scrutiny (REINS) Act.

Yes: 68 • No: 44 • Other: 7

House vote 4/16/2025

HB 402: NC Regulations from the Executive in Need of Scrutiny (REINS) Act.

Yes: 49 • No: 64 • Other: 7

Actions Timeline

  1. Ch. SL 2025-82

    7/29/2025House
  2. Veto Overridden

    7/29/2025Senate
  3. Placed on Today's Calendar

    7/29/2025Senate
  4. Veto Received From House

    7/29/2025Senate
  5. Veto Overridden

    7/29/2025House
  6. Placed On Cal For 07/29/2025

    7/3/2025House
  7. Withdrawn From Cal

    7/3/2025House
  8. Placed On Cal For 07/14/2025

    6/30/2025House
  9. Received from the Governor

    6/27/2025House
  10. Vetoed 06/27/2025

    6/27/2025House
  11. Pres. To Gov. 6/19/2025

    6/19/2025House
  12. Ratified

    6/18/2025House
  13. Ordered Enrolled

    6/17/2025House
  14. Concurred In S Com Sub

    6/17/2025House
  15. Placed On Cal For 06/17/2025

    6/12/2025House
  16. Cal Pursuant 36(b)

    6/12/2025House
  17. Regular Message Received For Concurrence in S Com Sub

    6/11/2025House
  18. Regular Message Sent To House

    6/11/2025Senate
  19. Engrossed

    6/10/2025Senate
  20. Passed 3rd Reading

    6/10/2025Senate
  21. Passed 2nd Reading

    6/10/2025Senate
  22. Amend Tabled A2

    6/10/2025Senate
  23. Amend Adopted A1

    6/10/2025Senate
  24. Reptd Fav

    6/9/2025Senate
  25. Re-ref Com On Rules and Operations of the Senate

    6/4/2025Senate

Bill Text

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