Raleigh, NC — On March 13, 2025, North Carolina lawmakers introduced House Bill 402, titled the “Regulations from the Executive in Need of Scrutiny” (REINS) Act, aiming to bolster legislative oversight over executive branch regulations with significant economic implications.
Key Provisions of the NC REINS Act:
• Legislative Approval Requirement: The bill mandates that any permanent rule or regulation projected to have an economic impact of $1 million or more within a 12-month period must receive approval from the General Assembly before implementation.
• Public Challenge Mechanism: The act introduces a process allowing individuals to contest proposed rules. If ten or more objections are filed, the rule must undergo legislative review prior to taking effect.
• Economic Impact Analysis: State agencies are required to provide detailed fiscal notes outlining the economic consequences of proposed rules, ensuring transparency and public awareness.
Intent and Rationale:
Proponents assert that the REINS Act is designed to enhance accountability and transparency in the regulatory process, ensuring that significant economic decisions undergo legislative scrutiny. Representative Allen Chesser, a lead sponsor, emphasized that the legislation is not driven by partisan motives but seeks to involve elected representatives in decisions with substantial economic impact.
Context and Precedents:
The concept of the REINS Act is not unique to North Carolina. Similar legislation has been enacted in states like Wisconsin, Indiana, Florida, and Kansas, aiming to increase legislative oversight of administrative rulemaking. These laws typically require legislative approval for regulations anticipated to have significant economic effects.
Support and Opposition:
• Supporters’ Perspective: Advocates argue that the REINS Act restores the balance of power between the legislative and executive branches, ensuring that elected officials have a say in major regulatory decisions. They believe it enhances accountability and prevents unelected agencies from enacting rules with substantial economic consequences without legislative input.
• Critics’ Concerns: Opponents contend that such measures could hinder the efficiency of regulatory agencies, delay the implementation of necessary regulations, and politicize the rulemaking process. They caution that requiring legislative approval for major rules may lead to gridlock and impede timely responses to emerging issues.
Next Steps:
House Bill 402 has been filed and awaits assignment to a committee for further deliberation. If enacted, the REINS Act would significantly alter North Carolina’s regulatory framework by increasing legislative involvement in the approval of major regulations.
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