Bill > S705

This bill modifies the process for creating and approving state agency rules with substantial financial costs by making two key changes. First, it alters the definition of "substantial economic impact" from a 12-month to a five-year period, maintaining the $1 million threshold, and provides detailed guidance on how agencies must analyze and calculate potential economic impacts, including requirements to monetize costs, use a 7% discount factor for future costs, and describe both direct and opportunity costs. Second, the bill introduces new voting requirements for agencies when proposing rules with significant financial implications: rules projected to cost $1 million or more over five years must be adopted by a two-thirds vote of the board or commission, while rules projected to cost $10 million or more require a unanimous vote (with a special provision that rules mandated by federal law can still pass with a two-thirds vote). These provisions aim to increase scrutiny and deliberation for rules that could have substantial economic consequences, ensuring more thorough evaluation and broader consensus before implementation.

https://www.ncleg.gov/BillLookUp/2025/S705