House committee substitute to the 1st edition makes the following changes. Makes conforming changes to act’s long title.
Modifies the economic impact rule delaying a new permanent rule’s effective date until ratified by the NCGA under GS 150B-21.3 (effective date of rules under the APA) so that the rule would have to have a substantial economic impact as calculated under GS 150B-21.4 (was, an aggregate economic impact on all persons affected of at least $1 million as calculated under law in a 12-month period). Makes conforming changes. Removes proposed (b3), which concerned rules and substantial economic impact. Provides a calculation in GS 150B-21.4 for how to determine whether a rule has a substantial economic impact by having the agency estimate the combined cost of the baseline conditions and the proposed rule. Specifies that the agency should estimate the cost of the baseline if the proposed rule amends or readopts an existing rule. (Previously, expanded what an agency must consider in determining the substantial economic impact of a rule under GS 150B-21.4 to include an estimate of the combined cost of the baseline conditions and the proposed rule, including direct costs as well as opportunity costs, as described. Removes changes to GS 150B-21.11 (procedure when Commission approves a permanent rule), and GS 120B-70.101 (purpose and powers of Committee)
Authorizes an administrative law judge to exercise independent judgment in making a final decision or order in GS 150B-34, while being informed by the demonstrated knowledge and expertise of the agency, as specified (was, judge had to give due regard to the agency’s demonstrated knowledge and expertise). Makes clarifying changes. Modifies the judge’s deference in GS 150B-51 (scope and standard of review) so that in conducting its review of the final decision, the court must be informed by the demonstrated knowledge and expertise of the agency with respect to facts and inferences within the specialized knowledge of the agency but should exercise independent judgment in making its order. Applies to actions pending or filed on or after the act becomes law.
Bill Summaries: H402 (2025-2026 Session)
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Bill H 402 (2025-2026)Summary date: Apr 15 2025 - View summary
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Bill H 402 (2025-2026)Summary date: Mar 13 2025 - View summary
Amends GS 150B-21.3 (pertaining to effective date of rules under the APA), as follows. Requires that any permanent rule that would have an aggregate economic impact on all persons affected of at least $1 million as calculated under law in a 12-month period (an Economic Rule) can only become effective if the NCGA ratifies a bill approving the rule with the rule becoming effective in accordance with the described timetable. Allows for any member of either chamber to introduce a bill during any regular or special session to approve a rule upon the earlier of either the day following a recommendation on the rule by the Joint Administrative Procedure Oversight Committee (the specified NCGA committee) or sixty days after the specified NCGA committee receives the rule for review but has not made a recommendation on the rule. Exempts an Economic Rule from the objection period. Provides for notice in GS 150B-21.11 (procedure when Rules Review Commission [Commission] approves permanent rule) to the chairs of the specified NCGA committee by the Commission when it approves an Economic Rule.
Expands what an agency must consider in determining the substantial economic impact of a rule under GS 150B-21.4 (fiscal and regulatory impact analysis under rules) to include an estimate of the combined cost of the baseline conditions and the proposed rule, including direct costs as well as opportunity costs, as described.
Makes organizational and conforming changes, including to GS 120-70.101 (purpose and powers of the specified NCGA committee).
Applies to rules adopted on or after the act becomes law.