A BILL TO BE ENTITLED
AN ACT to place restrictions on rules with substantial financial costs.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 1 of Article 2A of Chapter 150B of the General Statutes is amended by adding a new section to read:
"§ 150B‑19.4.  Requirements on rules with substantial financial costs.
(a)	Prohibition. – Notwithstanding any authority given to an agency to adopt a rule, an agency may not adopt a permanent rule or set of rules with a projected aggregate financial cost to all persons affected equal to or greater than one hundred million dollars ($100,000,000) during any five‑year period. The agency's determination of the projected aggregate financial cost of a permanent rule or set of rules shall comply with the requirements of G.S. 150B‑21.4(b1). The agency's determination of the projected aggregate financial cost of a permanent rule or set of rules shall not include any financial benefits of the permanent rule or set of rules.
(b)	Limitation. – If an agency determines that a proposed permanent rule or set of rules will have a projected aggregate financial cost to all persons affected equal to or greater than ten million dollars ($10,000,000) during any five‑year period, the adoption of the permanent rule or set of rules must comply with the following:
(1)	If the agency is a board, a commission, a council, or other similar unit of government, a certification that the adoption of the rule or set of rules must be approved by at least sixty percent (60%) of those voting on the rule or set of rules.
(2)	For an agency headed by a member of the Council of State, the adoption of the rule or set of rules must be accompanied by a certification signed by the member of the Council of State indicating the member's review and support of the rule or set or rules.
(3)	For all other agencies, the adoption of the rule or set of rules must be accompanied by a certification signed by the Governor indicating the Governor's review and support of the rule or set of rules.
(c)	Legislative Review. – A permanent rule or set of rules subject to the limitation of subsection (b) of this section shall be subject to the provisions of G.S. 150B‑21.3(b1) as if, pursuant to G.S. 150B‑21.3(b2), the rule or set of rules received written objections from 10 or more persons and a bill specifically disapproving the rule or set of rules was introduced in a house of the General Assembly before the thirty‑first legislative day."
SECTION 2.  G.S. 150B‑21.6 reads as rewritten:
"§ 150B‑21.6.  Incorporating material in a rule by reference.
An agency may incorporate the following material by reference in a rule without repeating the text of the referenced material:
(1)	Another rule or part of a rule adopted by the agency.
(2)	All or part of a code, standard, or regulation adopted by another agency or a generally recognized organization or association.
(3)	Repealed by Session Laws 1997‑34, s. 5.
(4)	All or part of a code, standard, or regulation adopted by the federal government if the agency establishes a procedure by which any change by the federal government is reviewed and approved by the agency within 120 days of the change.
In incorporating material by reference, the agency must designate in the rule whether or not the incorporation includes subsequent amendments and editions of the referenced material. The agency can change this designation only by a subsequent rule‑making proceeding. The agency must have copies of the incorporated material available for inspection and must specify in the rule both where copies of the material can be obtained and the cost on the date the rule is adopted of a copy of the material.
A statement in a rule that a rule incorporates material by reference in accordance with former G.S. 150B‑14(b) is a statement that the rule does not include subsequent amendments and editions of the referenced material. A statement in a rule that a rule incorporates material by reference in accordance with former G.S. 150B‑14(c) is a statement that the rule includes subsequent amendments and editions of the referenced material."
SECTION 3.  G.S. 150B‑19.3(a) reads as rewritten:
"(a)	An agency authorized to implement and enforce State and federal environmental laws may not adopt a permanent rule for the protection of the environment or natural resources that imposes a more restrictive standard, limitation, or requirement than those imposed by federal law or rule, if a federal law or rule pertaining to the same subject matter has been adopted, unless adoption of the rule is required by one of the subdivisions of this subsection. A permanent rule required by a serious and unforeseen threat to public health, safety, or welfare shall be subject to the limitation and legislative review provisions of G.S. 150B‑19.4(b) and (c). A permanent rule required by one of the following subdivisions of this subsection shall be subject to the provisions of G.S. 150B‑21.3(b1) as if the rule received written objections from 10 or more persons under G.S. 150B‑21.3(b2):
	
(2)	An act of the General Assembly or United States Congress that expressly requires the agency to adopt rules.
(3)	A change in federal or State budgetary policy.
(4)	A federal regulation required by an act of the United States Congress to be adopted or administered by the State.
(5)	A court order."
SECTION 4.  This act is effective when it becomes law. Sections 1 and 3 apply to proposed permanent and readopted rules published in the North Carolina Register and proposed permanent rules posted on the Web site of the Office of Administrative Hearings on or after August 1, 2017.