Bill Summary for S 705 (2025-2026)

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Summary date: 

Apr 1 2025

Bill Information:

View NCGA Bill Details(link is external)2025-2026 Session
Senate Bill 705 (Public) Filed Tuesday, March 25, 2025
AN ACT TO PUT LIMITATIONS ON RULES WITH SUBSTANTIAL FINANCIAL COSTS.
Intro. by Jarvis, Moffitt.

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Bill summary

Amends the definition of "substantial economic impact" in GS 150B-21.4 (Fiscal and regulatory impact analysis on rules) by extending the period for analyzing the aggregate financial impact of at least $1 million on affected persons to five years from the existing twelve months.

Creates new GS 150B-19.4 (Limitation on rules with substantial financial costs), which requires any board/commission or other similar unit of government that proposes a rule with a financial cost of more than $1,000,000 to all affected persons during a five-year period to adopt the permanent rule by a 2/3rds vote of the board/commission members present and voting. If the proposed rule has a cost of more than $10,000,000 to all affected persons during the five-year period, then the board/commission must adopt the permanent rule by unanimous vote of the members present and voting, unless the rule is required to comply with federal law, in which case the vote must be 2/3rds. Applies to all rules under GS Chapter 150B, Article 2A, including periodic review and readoption. Clarifies that the aggregate financial cost required under the statute is the amount calculated in a substantial economic impact analysis under GS 150B-21.4, not including benefits.