Section 1. Short Title.  

This Act shall be known and may be cited as the “Legislative Approval of Administrative Rules Act.”  

Section 2. Legislative Findings and Purpose.  

• (a) Findings. The Legislature finds that:  
  1. The constitutional power to make law is vested in the Legislature and may not be surrendered;  
  2. Administrative agencies serve an important function in implementing and administering statutes enacted by the Legislature;  
  3. The delegation of limited authority to administrative agencies is necessary for efficient government but must remain subject to legislative accountability and constitutional separation of powers;  
  4. Administrative rules may substantially affect private rights, economic liberty, property interests, professional licensure, employment, commerce, and public obligations;  
  5. The people of [Insert State] are entitled to transparency and democratic accountability when rules carrying the force and effect of law are proposed;  
  6. Agencies often possess expertise in technical and subject-matter items but are not elected lawmaking bodies;  
  7. Legislative oversight of administrative rulemaking promotes fidelity to statutory intent, protects against unauthorized exercises of delegated power, and preserves public confidence in government;  
  8. Informal guidance documents may assist regulated and impacted persons in understanding agency expectations, but shall not supplant duly enacted statutes or properly promulgated administrative rules; and  
  9. Courts retain an independent constitutional duty to interpret statutes and determine questions of law.  
• (b)  Purpose. The purposes of this Act are to:  
  1. Preserve legislative primacy in lawmaking;  
  2. Establish a transparent and accountable framework for administrative rulemaking;  
  3. Distinguish among legislative, interpretive, procedural, and emergency rules; 
  4. Require legislative authorization for rules possessing the force and effect of law;  
  5. Preserve appropriate administrative flexibility;  
  6. Promote public participation in rulemaking;  
  7. Ensure meaningful legislative evaluation of fiscal and economic impacts;  
  8. Maintain consistency between statutes, administrative rules, and agency guidance; and  
  9. Provide for independent judicial review of agency action.  

Section 3. Definitions.  

For purposes of this Act:  

• (a) “Agency” means any department, division, office, board, bureau, commission, authority, institution, or other entity of the executive branch authorized by law to promulgate administrative rules.  
• (b) “Administrative rule” or “rule” means every regulation, standard, statement of policy, interpretation, or requirement of general applicability adopted by an agency to implement, extend, interpret, or prescribe law or policy, or to govern agency procedure or practice, including but not limited to legislative, interpretive, procedural, and emergency rules. The term does not include internal management memoranda without external applicability; agency decisions in contested cases; declaratory rulings issued to specific persons; and forms, instructions, or explanatory materials that do not independently impose obligations.  
• (c) “Legislative rule” means a rule promulgated by an agency pursuant to statutory authority granted by the Legislature pursuant to this Act. A legislative rule shall not become effective except as provided in this Act.  
• (d) “Interpretive rule” means a rule or statement issued by an agency to interpret or explain a statute or an administrative rule. An interpretive rule shall not independently impose legal obligations, shall not amend or supersede statute or duly promulgated rule; and shall not possess the independent force and effect of law.   
• (e) “Procedural rule” means a rule governing only the internal management, operation, organization, or procedure of an agency and that does not directly affect private rights, obligations, or substantive standards applicable outside the agency.  
• (f) “Emergency rule” means a temporary rule, not to exceed 15 months, adopted pursuant to express legislatively granted authority because immediate administrative action is deemed necessary. Emergency rules shall be temporary and subject to the limitations established in this Act.  
• (g) “Guidance document” means any manual, bulletin, advisory opinion, interpretive memorandum, frequently asked questions document, technical assistance document, compliance guide, policy statement, or other informal agency communication intended to assist in understanding agency practices or expectations.  

Section 4. Categories Of Administrative Rules.  

• (a) Administrative rules shall be classified exclusively as:  
  1. legislative rules;  
  2. interpretive rules;  
  3. procedural rules; or  
  4. emergency rules.  
• (b) An agency shall designate the classification of a proposed rule upon filing. The designated classification shall be subject to review by the Joint Legislative Rulemaking Review Committee, which may reclassify a rule where necessary to carry out the purposes of this Act. A rule improperly designated as interpretive or procedural shall not evade the requirements applicable to legislative rules.  

Section 5. Legislative Rules As Applications For Legislative Authority.  

• (a) Application for Permission. A proposed legislative rule shall be deemed an application to the Legislature for authority to exercise delegated rulemaking power. No legislative rule shall possess the force or effect of law unless and until authorized by an act of the Legislature.  
• (b) Limitation on Delegated Authority. The grant of rulemaking authority to an agency shall not constitute authorization for an agency to independently create legally binding obligations except through legislative authorization pursuant to this Act.  
• (c) Scope of Authorization. The Legislature may authorize:  
  1. a legislative rule as proposed;  
  2. a legislative rule with modifications;  
  3. portions of a legislative rule;  
  4. multiple legislative rules within a single act; or  
  5. amended legislative rules.  
• (d) Rules Without Authorization. Any legislative rule not authorized by law shall be void and without force or effect.  
• (e) Presumption. Nothing in this Act shall be construed to diminish the Legislature’s constitutional authority to modify, amend, suspend, repeal, or supersede administrative rules by statute.  

Section 6. Rulemaking Procedures.  

• (a) Applicability. Except as otherwise provided in this Act, the procedures contained in this section shall apply to legislative rules and emergency rules. Interpretive and procedural rules shall be exempt from the requirements of this section except as otherwise required by law.  
• (b) Notice of Proposed Rulemaking. Before promulgating a legislative rule, an agency shall provide public notice of the proposed rulemaking. The notice shall be filed in the official administrative register maintained by the Secretary of State not less than 30 days prior to the final date for public comment unless otherwise provided by law. The notice shall include: 
  1. the text and a summary of the proposed rule;  
  2. a statement of the statutory authority, with specificity, authorizing promulgation of the rule;  
  3. the purpose and intended effect of the proposed rule;  
  4. an explanation of the need for the rule;  
  5. the fiscal and economic impact analysis for the rule;  
  6. the time, manner, and deadline for submission of public comments;  
  7. notice of any scheduled public hearing; and  
  8. information regarding where the full text of the proposed rule may be inspected.  
• (c) Public Comment. An agency shall provide an opportunity for public comment before adoption of a legislative rule. To satisfy this requirement, the agency may hold a public hearing or establish a period for receipt of written comments. Any citizen or interested party may appear and be heard at any public hearing conducted pursuant to this section.   
• (d) Findings and Determinations as Condition Precedent. Where findings or determinations are required by law as a condition precedent to final agency approval of a proposed rule, the agency shall:  
  1. make such findings and determinations prior to final agency approval;  
  2. state fully and succinctly the reasons supporting such findings and determinations; and  
  3. provide an opportunity for public comment upon the findings and determinations and the proposed rule. The findings and determinations shall be filed in the official administrative register as part of the rulemaking record.  
• (e) Agency Response to Public Comments. Prior to submission of an agency-approved proposed rule for legislative review, the agency shall respond to public comments received during the public comment period and explain the reasoning for comments incorporated into or excluded from the proposed rule. Failure to adequately respond to public comments may constitute grounds for rejection, amendment, or return of the proposed rule by the Joint Legislative Rulemaking Review Committee.  
• (f) Agency-Approved Rule. A proposed legislative rule shall not be eligible for legislative submission unless:  
  1. the agency has completed all notice and comment requirements;  
  2. any required findings and determinations have been made;  
  3. the agency has considered public comments and prepared responses thereto; and  
  4. the rule has been formally approved by the agency in accordance with law.  

Section 7. Fiscal And Economic Impact Analysis.  

• (a) Requirement. An agency proposing an administrative rule shall prepare a fiscal and economic impact analysis.   
• (b) Contents. The fiscal and economic impact analysis shall include, to the extent reasonably ascertainable:  
  1. the anticipated fiscal impact upon the agency;  
  2. the anticipated fiscal impact upon state and local government entities;  
  3. the anticipated compliance costs imposed upon regulated persons or entities;  
  4. the anticipated impact on small businesses;  
  5. the anticipated impact on employment, economic activity, competition, market entry, or professional licensure;  
  6. any anticipated increase in fees, penalties, administrative burdens, or reporting obligations;  
  7. the public purpose to be served by the rule;  
  8. an explanation of why the rule is necessary to accomplish statutory objectives;  
  9. a description of alternatives considered, including less restrictive alternatives; and  
  10. a statement explaining why the agency believes the proposed rule is not more restrictive or burdensome than reasonably necessary to accomplish legislative objectives.  
• (c) Availability. The fiscal and economic impact analysis shall be filed with the notice of proposed rulemaking required in Section 6 of this Act.   

Section 8. Submission Of Legislative Rules For Legislative Review.  

• (a) Submission Required. Before any legislative rule may take effect, an agency shall submit the proposed rule to the Joint Legislative Rulemaking Review Committee.  
• (b) Required Materials. The submission shall include:  
  1. the full text of the proposed rule;  
  2. a concise summary of the rule;  
  3. the statutory authority relied upon;  
  4. a summary of public comments received;  
  5. the agency’s response to substantive comments;  
  6. the fiscal and economic impact analysis required by Section 7;  
  7. a statement explaining the necessity of the rule; and  
  8. any additional materials reasonably requested by the committee.  
• (c) Amendments Following Public Comment. An agency may amend a proposed rule following public comment before submission to the committee. An explanation shall be included for any substantive, non-technical amendments.   
• (d) Interpretive Rules. Interpretive rules shall not require legislative authorization or committee review but shall remain subject to the limitations imposed by this Act.  

Section 9. Joint legislative Rulemaking Review Committee.  

• (a) Establishment. There is hereby created a Joint Legislative Rulemaking Review Committee.
• (b)  Composition. The committee shall consist of members of the Legislature appointed pursuant to legislative rules or law. Membership shall, to the extent practicable, reflect bipartisan representation.  
• (c) Authority. The committee may:  
  1. review administrative rules;  
  2. review whether a rule has been properly classified;  
  3. conduct hearings and receive testimony;  
  4. request information, analyses, or justification from agencies;  
  5. recommend authorization of a rule;  
  6. recommend authorization with amendments;  
  7. recommend authorization of portions of a rule;  
  8. return a rule to the agency with recommendations for revision and resubmission; or  
  9. recommend rejection of a rule.  
• (d) Amendment Authority. The committee may recommend technical, conforming, clarifying, or substantive amendments to a proposed legislative rule.  

Section 10. Standards Of Legislative Review.  

• (a) In reviewing legislative rules, the committee may consider whether the rule:  
  1. exceeds the agency’s statutory authority;  
  2. conflicts with legislative intent;  
  3. conflicts with statute or duly promulgated administrative rule;  
  4. is arbitrary, capricious, unreasonable, or unduly burdensome;  
  5. imposes costs disproportionate to the public benefit reasonably expected to result from the rule;  
  6. is more restrictive or burdensome than reasonably necessary to accomplish legislative objectives;  
  7. unnecessarily impedes economic activity, competition, employment, professional licensure, or market participation absent express legislative authorization;  
  8. substantially complies with procedural requirements;  
  9. is written in a clear, understandable, and administrable manner; or  
  10. otherwise advances the purposes of this Act.  

Section 11. Legislative Authorization Of Rules.  

• (a) Authorization Required. A legislative rule shall not become effective unless authorized by an act of the Legislature.  
• (b) Scope of Authorization. The Legislature may:  
  1. authorize a rule as proposed;  
  2. authorize a rule with amendments;  
  3. authorize portions of a rule;  
  4. reject a rule in whole or in part; or  
  5. authorize multiple rules within a single legislative act.  
• (c) Effect of Authorization. Upon legislative authorization, a legislative rule shall possess the force and effect of law to the extent authorized.  
• (d) Rules Not Authorized. Any legislative rule not authorized pursuant to this Act shall be void and without force or effect.  

Section 12. Emergency Rules.  

• (a) Authority to Promulgate Emergency Rules. An agency may promulgate an emergency rule only where the Legislature has granted the agency statutory authority to promulgate rules and emergency action is authorized by law.  
• (b) Filing and Effectiveness. An emergency rule shall become effective upon filing in the official administrative register maintained by the Secretary of State or equivalent officer designated by law, unless otherwise provided by law.  
• (c) Emergency rules shall be temporary and shall not remain in effect for longer than 15 months unless authorized by an act of the Legislature in accordance with this Act.  
• (d) Concurrent Rulemaking Review Required. At the time an emergency rule is filed, the agency shall initiate the rulemaking procedures for legislative rules required by this Act. Failure to initiate rulemaking review shall render the emergency rule subject to expiration without renewal.  
• (e) Legislative Review. Emergency rules shall be submitted to the Joint Legislative Rulemaking Review Committee as soon as practicable following filing. The committee may review any emergency rule to determine:  
  1. whether the emergency rule exceeds statutory authority;  
  2. whether an emergency exists justifying promulgation; and  
  3. whether the emergency rule was promulgated in compliance with this Act.  
• (f) Successive Emergency Rules Prohibited. An agency shall not promulgate successive emergency rules containing substantially similar provisions to evade the requirements of this Act.  
• (g) Construction. Emergency rulemaking authority shall be narrowly construed and shall not be used as a substitute for ordinary rulemaking.  

 Section 13. Guidance Documents.  

• (a) Permitted Guidance. An agency may issue guidance documents to assist regulated persons, agencies, political subdivisions, and the public in understanding statutes, administrative rules, or agency practices. Guidance documents may include, but are not limited to:  
  1. manuals;  
  2. bulletins;  
  3. advisory memoranda;  
  4. interpretive guidance;  
  5. frequently asked questions;  
  6. technical assistance materials;  
  7. compliance guides; and  
  8. policy statements.  
• (b) Limitations. A guidance document:  
  1. shall not possess the force or effect of law;  
  2. shall not independently impose legal obligations, penalties, prohibitions, or requirements;  
  3. shall not amend, supersede, expand, diminish, conflict with, or otherwise undermine a statute or duly promulgated administrative rule; and  
  4. shall not be used as a substitute for legislative rulemaking where legislative rulemaking authority is required.  
• (c) Controlling Authority. In the event of conflict between a guidance document and a statute or duly promulgated administrative rule, the statute or administrative rule shall control.  
• (d) Public Availability. Agencies shall make guidance documents publicly accessible in a manner prescribed by law.  

Section 14. Judicial Review And Standard Of Review.  

• (a) Questions of Law. In any judicial proceeding involving agency action, a reviewing court shall decide all questions of law independently and without deference to an agency interpretation. Questions of law include, but are not limited to:  
  1. interpretation of constitutional provisions;  
  2. interpretation of statutes;  
  3. interpretation of administrative rules; and  
  4. determinations regarding the scope of agency authority.  
• (b) Persuasive Consideration. Nothing in this section shall prohibit a court from considering the specialized experience or expertise of an agency to the extent the court finds such expertise persuasive.  
• (c) Scope of Authority. A court shall invalidate agency action, including administrative rules, exceeding statutory authority or otherwise inconsistent with law.  
• (d) Construction. Nothing in this section shall diminish judicial authority to review agency action pursuant to otherwise applicable law.  

Section 15. Periodic Legislative Review Of Rules.  

• (a) Periodic Review Required. Each legislative rule authorized pursuant to this Act shall be subject to periodic legislative review not less than once every seven years following authorization.  
• (b) Agency Submission. Before expiration of the review period, the agency shall submit to the Joint Legislative Rulemaking Review Committee:  
  1. a statement of continued necessity;  
  2. any recommended amendments; 
  3.  an assessment of effectiveness;  
  4. any material fiscal or economic impacts; and  
  5. whether the rule remains necessary to accomplish legislative purposes.  
• (c) Committee Recommendation. Following review, the committee may recommend:  
  1. continuation;  
  2. amendment;  
  3. consolidation;  
  4. repeal; or  
  5. reauthorization subject to modifications.  
• (d) Legislative Action. The Legislature may continue, amend, repeal, or reauthorize legislative rules through legislative act.  
• (e) Expiration. A legislative rule not reauthorized pursuant to this section shall expire on a date prescribed by law.  

Section 16. Severability.  

If any provision of this Act or its application to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.