RALEIGH — A bill requiring General Assembly approval for state agency rules costing more than $20 million in five years and mandating stricter voting thresholds for costly rules adopted by boards was vetoed Gov. Josh Stein on June 27.
“This bill would make it harder for the state to keep people’s drinking water clean from PFAS and other dangerous chemicals, their air free from toxic pollutants, and their health care facilities providing high quality care,” Stein wrote in his veto message. “It would impose red tape, including an unworkable unanimity requirement, that would hamstring the decision-making of agencies, boards, and commissions, making them less effective at protecting people’s health, safety, and welfare.”
Stein has not previously signaled a position on the bill, which was sent to him June 19.
House Bill 402 introduces stricter oversight and accountability for state agency rules that carry significant financial costs.
The bill proposes permanent rules with an aggregate financial impact of at least $20 million over five years that require ratification by the General Assembly to take effect, unless they are mandated by federal law.
Additionally, for rules with substantial economic impacts of at least $1 million over five years, agencies must prepare a detailed fiscal note, approved by the Office of State Budget and Management, that analyzes costs and compliance with regulatory principles.
For boards, commissions or similar bodies, rules costing $1 million or more need a two-thirds vote for adoption, while those costing $10 million or more require a unanimous vote. Only rules after the bill becomes law would be applicable.
After a committee substitute was approved, the Senate passed the measure on June 10 with no Democratic support by a vote of 26-17.
The House concurred with the Senate’s changes, passing the bill by a vote of 70-44 on June 17.
Three House Democrats voted to approve the bill: Reps. Cecil Brockman (Guilford), Carla Cunningham (Mecklenburg) and Shelley Willingham (Edgecombe).
The House lacks a supermajority by one seat. If one of the three Democrats maintains their passage vote, then the override may be successful.
