The bill amends the Administrative Procedures Act and the State Rules Act to enhance oversight and accountability of state agency rules. It mandates that the Legislative Finance Committee conduct rule impact analyses for major rules, which are defined as those likely to have significant financial or social impacts. These analyses must evaluate costs, benefits, and alternatives, and be made publicly available. Major rules cannot take effect without legislative authorization, and all agency rules require the governor's approval before publication. Additionally, the bill introduces a provision for the automatic expiration of rules five years after their adoption unless renewed by the legislature, and establishes procedures for judicial review of rules to ensure compliance with necessary requirements.

The bill also clarifies definitions related to agency actions and rulemaking, particularly defining "major rule" and outlining criteria for its classification based on economic impacts and social effects. Agencies are required to provide detailed notices of proposed rulemaking, including a classification of the rule and a cost-benefit analysis submitted to the Legislative Finance Committee. Furthermore, periodic reviews of rules are mandated to assess their economic impact on small businesses, with findings submitted to the legislature to promote accountability and transparency. Existing rules will be considered adopted under the new provisions upon the bill's effective date, facilitating a smooth transition to the updated regulatory framework.

Statutes affected:
introduced version: 2-5-4, 12-8-2, 12-8-4, 12-8-8, 14-4-2, 14-4-5.2, 14-4A-6