A regulatory bill cleared another legislative hurdle Wednesday as the North Carolina Senate Committee on Regulatory Reform advanced House Bill 402, which was previously referred to as the Regulations from the Executive in Need of Scrutiny (REINS) Act.
The REINS Act would require legislative approval of executive branch rulemaking when the estimated economic impact exceeds $20 million. Proponents say it’s a matter of democratic accountability, while critics argue it’s a power grab that undermines executive authority.
The measure passed the House in April and now moves to the Senate Rules Committee for further consideration.
Sen. Steve Jarvis, R-Davidson, one of the bill’s lead sponsors, said it would only impact up to five rules per year, giving the General Assembly power to oversee significant regulations proposed.
“In the amendment, going to the $20 million, there’s only thought to be a potential of one to five [rules] at max that even hit that threshold, as in the past history or research we’ve done,” Jarvis said. Previous versions of the bill set the economic impact at $1 million.
Democrats expressed concerns over the separation of powers within the three branches of government.
“We have discussed that at length, and we feel like there is a good possibility that we would be able to withstand constitutional scrutiny,” Jarvis said, in response to concerns from Sen. Natasha Marcus about separation of powers.
Supporters of the bill, including William Allen of the John Locke Foundation and Alyssa Morrissey of the NC Chamber, described the legislation as a long-overdue accountability measure.
“At some point, a regulation becomes so consequential that it functions not as administrative detail, but as law,” said Allen. “And in our constitutional system, only the legislature has the authority to make law. The REINS Act rightly recognizes that threshold. It ensures that when a proposed rule crosses a significant impact line, it must be affirmatively approved by the General Assembly. That’s not obstruction; it’s accountability.”
Dalton Clark of Americans for Prosperity echoed that sentiment, arguing that the current process lacks consideration of whether rules are “worthy laws.”
Opponents, however, saw it differently.
A spokesperson for the Southern Environmental Law Center said the bill would dismantle environmental protections by excluding benefits in cost analyses. Meanwhile, Mary Ross of Democracy Out Loud called the bill “illogical,” accusing lawmakers of undercutting expert agencies in favor of political posturing.
“We have regulatory agencies,” Ross said. “You appoint people to the regulatory agencies. You have some control over major rules that come. You don’t need this law to take over.”
The bill now heads to the Senate Rules Committee, its final hurdle before going to the Senate floor. If it becomes law, North Carolina would join a growing number of states seeking to reassert legislative control over regulatory processes. The Louisiana legislature just passed a similar REINS Act this week in a unanimous vote.
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