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SB 290

An Act providing for funding for certain State-related universities for the fiscal year beginning July 1, 2025, and ending June 30, 2026, for costs basis, for frequency of payments and for recordkeeping requirements; imposing a duty on the Auditor General; providing for financial statements, for the Agricultural College Land Scrip Fund and for restrictions; and making appropriations.

2025-2026 Regular Session Introduced by Vincent Hughes

SB 290 gives NC lawmakers explicit power to delay, review, and ratify high-impact executive rules, tying rules to fiscal notes and OSBM review to curb costly regulations.

Referred to Appropriations
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Bill Summary · SB 290

SB 290 — "NC REINS Act" (Regulations from the Executive in Need of Scrutiny Act)

Status: Introduced Feb 6, 2025; Passed 1st Reading (Senate).
Subject areas: Administrative rulemaking; regulatory oversight; Office of State Budget and Management (OSBM); General Assembly review; fiscal notes.

Purpose / intent

SB 290 increases legislative oversight of executive-branch rulemaking in North Carolina by (1) expanding circumstances in which rules are delayed or subject to review by the General Assembly, (2) requiring stronger fiscal-note review and certification for rules with substantial economic effects, and (3) clarifying objection and timing procedures that trigger legislative review.

Key provisions

  • Effective-date changes for permanent rules (amends G.S. 150B-21.3):

    • A permanent rule generally becomes effective on the first day of the month following Commission approval unless one of the specified exceptions applies.
    • If the Administrative Procedure Commission receives written objections from 10 or more persons (submitted no later than 5:00 PM the day following Commission approval) requesting legislative review, the rule’s effective date is delayed and the rule becomes effective only on the earlier of the 31st legislative day or the day the next regular session (that begins at least 25 days after Commission approval) adjourns — unless the General Assembly acts otherwise.
    • If a permanent rule would have an aggregate economic impact of at least $1,000,000 on all persons affected in a 12‑month period (calculated under G.S. 150B-21.4(b1)(3a)), the rule may not become effective unless the General Assembly ratifies a bill approving it.
    • Any legislator may introduce a bill to approve such a rule earlier, either (a) the day after the Joint Legislative Administrative Procedure Oversight Committee has reviewed and made a recommendation, or (b) sixty days after that committee receives the rule if it has not made a recommendation.

  • Fiscal notes and OSBM review (amends G.S. 150B-21.4(b1)):

    • Before publishing a proposed permanent rule with a “substantial economic impact,” an agency must prepare a fiscal note and obtain OSBM approval and a certification that the agency followed specified regulatory principles.
    • Agencies may request OSBM to prepare the fiscal note; OSBM must prepare it within 90 days of a written request. If OSBM does not meet that deadline, the agency may prepare the note (without OSBM approval).
    • OSBM must review an agency-prepared fiscal note within 14 days and either approve it or provide written reasons for rejection; agencies may resubmit a revised note.

Who would be affected

  • State administrative agencies (slower/more procedurally burdensome rulemaking for rules with significant economic effects).
  • Businesses, local governments and other entities regulated by agency rules — greater opportunity to prompt legislative review/delay.
  • Office of State Budget and Management (increased responsibilities and timeframes for preparing/reviewing fiscal notes).
  • General Assembly and oversight committees (expanded authority to review/ratify or disapprove high‑impact rules).
  • The public — provides a clearer vehicle for groups to trigger legislative scrutiny (threshold: 10 written objections).

Procedural / timeline impacts

  • Numeric thresholds and deadlines:
    • Legislative ratification required for rules with ≥ $1,000,000 aggregate economic impact (12‑month window).
    • Ten (10) or more written objections filed no later than 5:00 PM the day after Commission approval trigger delayed effective-date procedures.
    • OSBM timelines: 90 days to prepare a requested fiscal note; 14 days to review an agency-submitted note.
    • Legislators may introduce disapproval/approval bills within specified legislative-day windows described in the act.

Potential effects (concise)

  • Increases legislative control over high‑impact rules and creates a formal mechanism for public objections to delay rule effectiveness.
  • Likely to slow the implementation of rules perceived as economically significant and increase administrative workload (fiscal notes, OSBM review).
  • Could shift some rulemaking influence from executive agencies toward the legislature and create additional procedural hurdles for agencies.

Next steps / status

  • Currently at: Passed 1st Reading (Senate). If advanced, the bill would proceed through committee hearings, floor votes, and conferencing before possible enactment.

Compiled from official sources — confirm details with the bill’s official record.

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