ALEC Policy Champions Rein in Agency Overreach in North Carolina

ALEC is honored to recognize North Carolina Rep. Allen Chesser, Sen. Steve Jarvis, Sen. Tim Moffitt, and Sen. Benton Sawrey as ALEC Policy Champions for bringing REINS-style legislation to the Old North State. The General Assembly overrode a Gov. Josh Stein veto of HB 402 in July, making North Carolina the tenth state to pass this type of reform.

HB 402 requires that any agency rule or regulation with an estimated economic impact of over $20 million over the first five years of implementation receive approval by the General Assembly before going into effect. The bill also creates procedures for regulations that are under the $20 million threshold. Unelected bureaucrats will now be unable to pass rules and regulations with major impacts without approval from the General Assembly.

North Carolina Senate Leader Phil Berger discussed the need for the reform by highlighting, “this is a straightforward, commonsense bill ensuring that costly rules implemented by unelected bureaucrats get a second look from the General Assembly.”

Like HB 402, the Targeted Legislative Review Act, one of the ALEC Essential Policy Solutions for 2025, returns rule-making authority to state legislators rather. This model policy creates a Legislative Economic Analysis Unit (LEAU) to perform independent economic analysis of proposed rules. If the LEAU determines that the proposed rule qualifies as a “major rule”, it cannot be implemented without approval from the legislature.

North Carolina joins states like Utah and Oklahoma that have passed this reform in 2025. Congratulations to Rep. Allen Chesser, Sen. Steve Jarvis, Sen. Tim Moffitt, and Sen. Benton Sawrey for limiting agency overreach and returning accountability in the rule-making process in the Tarheel State.