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Bill

HB 402

Limit Rules With Substantial Financial Costs.

2025-2026 Session Introduced by Jay Adams and 59 co-sponsors

North Carolina requires state agencies to analyze financial impacts before implementing costly regulations, with veto override suggesting divided legislative support on regulatory restraint.

Veto Overridden
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Bill Summary · HB 402

Legislative bill overview

HB 402 requires North Carolina state agencies to conduct detailed financial impact analyses before implementing rules that would cost businesses or individuals more than a specified threshold amount. The bill establishes a review process where rules with substantial costs must receive additional scrutiny and approval, potentially limiting regulatory authority.

Why is this important

This legislation directly affects how state government can regulate business practices, environmental standards, labor conditions, and consumer protections. It could slow or prevent rule implementation in areas like workplace safety, pollution control, and licensing requirements if agencies cannot clearly demonstrate cost-effectiveness, while supporters argue it prevents excessive regulatory burden on the private sector.

Potential points of contention

  • Regulatory effectiveness vs. cost analysis: Environmental and public health advocates worry that focusing on financial costs may deprioritize rules protecting safety or environmental quality, even if those protections have immeasurable benefits
  • Threshold definition: The specific dollar threshold determining which rules face review is likely contested—too low and it impedes necessary regulation; too high and it provides minimal accountability
  • Agency discretion: The bill's requirements may create ambiguity about how agencies calculate costs, potentially leading to litigation over whether rules comply with the law's standards

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

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