This bill mandates that all administrative rules adopted by agencies must be explicitly supported by current statutory authority, as outlined in the Revised Statutes Annotated (RSA). It introduces a new section, 541-A:3-c, which requires the Joint Legislative Committee on Administrative Rules (JLCAR) to ensure that no rule is adopted, readopted, or amended without written demonstration of its statutory authorization. Additionally, the bill establishes a biennial audit process under a new section, 541-A:22-a, where the Office of Legislative Services, supervised by JLCAR, will review all existing administrative rules for compliance with statutory provisions and constitutional requirements. The results of these audits will be publicly reported, and any rules found noncompliant will be flagged for repeal or amendment.

Furthermore, the bill outlines a procedure for agencies to follow if a rule is flagged, requiring them to initiate the repeal or amendment process within 90 days or provide a written justification for the rule's validity within 30 days. If an agency fails to comply, JLCAR has the authority to refer the matter to the attorney general and recommend funding suspensions for the agency. The bill does not provide additional funding or positions but anticipates significant fiscal impacts, estimating costs of approximately $312,000 in FY 2027, with increasing costs in subsequent years, to support the new audit process and necessary staffing.