The bill amends the Administrative Procedures Act and the State Rules Act to improve oversight and accountability for major rules issued by state agencies. It mandates that the Legislative Finance Committee conduct rule impact analyses for major rules, defined as those with significant financial or social implications. These analyses must evaluate costs, benefits, and alternatives, and be made publicly accessible. Additionally, the bill stipulates that major rules cannot take effect without legislative authorization and requires all agency rules to receive the governor's approval prior to publication. It also introduces a process for the automatic expiration of rules five years after their adoption unless renewed by the legislature, and establishes judicial review procedures to ensure compliance with necessary requirements for rule implementation.

Moreover, the bill clarifies definitions related to agency actions and rulemaking, particularly defining "major rule" and outlining criteria for its classification based on economic and social impacts. It requires agencies to provide detailed notices of proposed rulemaking, including a classification of the rule and a cost-benefit analysis to be submitted to the legislative finance committee and both chambers of the legislature. The legislation also mandates periodic reviews of rules to assess their economic impact on small businesses, with specific timelines for rules adopted after July 1, 2005. A temporary provision states that all existing rules will be considered adopted on the act's effective date, ultimately aiming to enhance transparency and ensure that rules remain relevant and economically viable.

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