(The Center Square) – A House bill to require North Carolina state agencies would have to get legislative approval for any new regulation that would have more than $1 million in economic impact, generated criticism from Democrats Wednesday before a Senate committee.
NC REINS Act, known also as House Bill 402 with Senate companion 290, was before the Senate Regulatory Reform Committee for discussion only Wednesday. Under the legislation, regulations which meet criteria would take a two-thirds vote of the state boards or commission before taking effect.
Rules that cost more than $10 million would have to be unanimous vote, unless federally mandated, Sen. Steve Jarvis, R-Davidson, who presented the bill, told the committee Tuesday.
“This isn’t about blocking regulations, it’s about accountability,” Jarvis said. “Small businesses and families bear the brunt of unchecked costs. This ensures transparency, rigorous cost analysis and a broad consensus for high-stake rules.while preserving flexibility for federal compliance.”
But critics said the bill considers the costs, but not benefits of the rules.
“A lot of rulemaking around things like the environment, public health, have to do with benefits to the public, health benefits,” said Sen. Lisa Grafstein, D-Wake. “It’s hard to imagine a rule that would not have that kind of economic impact if you didn’t take into account the potential benefits from it.”
She cited rules that required health screenings, which could reduce health care costs in the future.
Jarvis replied that the benefits of rules are often subjective and difficult to project.
Grafstein also questioned whether the bill violates the separation of powers in North Carolina government.
“We have an executive branch with executive authority to do this rulemaking,” she said. “One of the things that I think this rule does is to limit the ability of the executives to carry out the rulemaking function.”
Sen. Sophia Chitlik, D-Durham, said the bill will “prevent rules that save lives and also save taxpayers money.”
The intent of the legislation is to delay the rules, Mark Swallow, a member of a group called Democracy Out Loud, told the committee.
“You are going to be inserting politics and corruption and greed into this process,” he said.
The bill will be futher considered at a later date by the committee, Jarvis said.
