HB 124 ADMIN RULE OVERSIGHT INTERIM COMMITTEE

Rep Randall T Pettigrew

Actions: HPREF [2] HGEIC/HAFC-HGEIC

Scheduled: Not Scheduled

 House Bill 124 (HB 124) creates the Interim Administrative Rule Oversight Committee, requires legislative review of executive agency proposed rules, amends the State Rules Act’s notice of proposed rulemaking to include a fiscal impact statement if the estimated cost of implementing a proposed rule is greater than $1,000,000, and appropriates $2,000,000 to the Legislative Council Service.  

 House Bill 124 (HB 124) makes three major changes regarding proposed executive agency rules and makes one appropriation.
First, the bill creates the interim Administrative Rule Oversight Committee (Committee) consisting of 12 members of the legislature appointed by leaders of the house of representative and the senate. Members serve for two-year terms and the Committee must meet at least once a month during the interim. 

Second, the bill requires that the Committee review proposed rules from an executive agency along with staff analysis of the proposed rules and any fiscal impact statements, two weeks prior to the public rule hearing. Staff from the Legislative Council Service must include in their analysis of the proposed rule certain factors, such as the necessity of the rule, the scope of the authorizing statute, the fiscal impact of the rule, legal implications, and the agency’s compliance with notice requirements. Then, the Committee must make recommendations on the rules to the proposing executive agency.  The Committee’s written recommendations must be submitted to the proposing agency during their public comment period and also must be given to the attorney general and the governor. The Committee may also endorse legislation that amends or repeals a statute that authorizes an agency to create rules.  

Third, the bill requires that the agency proposing a rule must provide a fiscal impact statement of any proposed rule whose implementation has an estimated cost of over $1,000,000.  However, the Committee may also request a fiscal impact statement of a rule whose impact does not exceed $1,000,000. The bill details what must be included in the fiscal impact statement. 

HB 124 appropriates $2,000,000 from the General Fund to the Legislative Council Service for use in Fiscal Year 2025 to staff the Committee. Unspent funds revert to the General Fund.