SB 693 — Administrative Procedure Act Amendments.

FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA AprSESSION 6, 2023 S.B.S 1 SENATE BILL 693 Short Title:

693 SESSION 2023 PRINCIPAL CLERK S D SENATE BILL DRS15299-TQ-2 Short Title:

Rules and Operations of the Senate April 10, 2023 A BILL TO BE ENTITLED AN ACT TO AMEND RULEMAKING PROCEDURES IN THE ADMINISTRATIVE PROCEDURE ACT.

(a) An agencyagencyauthorized authorized to implement and enforce State and federal environmental laws may not adopt a rule for the protection of the environment or natural resources that imposes a more restrictive standard, limitation, or requirement than those imposed by federal law or rule, if a federal law or rule pertaining to the same subject matter has been adopted, unless adoption of the rule is required by one of the subdivisions of this subsection.

An agency authorized to implement and enforce State and federal environmental laws may not adopt a rule for the protection of the environment or natural resources if a specific State statute, federal law, or federal regulation does not exist pertaining to and regulating the same subject matter unless adoption of the rule is required bybyState State statute, federal law.

150B-21.9 or Part 1 of this Article, the Commission or its designee must *DRS15299-TQ-2**S693-v-1* General Assembly Of North Carolina Session 2023 immediately notify the head of the agency.

150B-21.9 or Part 1 of this Article, the Commission or its designee must immediatelyimmediatelynotify notify the head of the agency and return the rule to the agency.

(b2) If an agency decides not to provide additional findings or submit a new statement when notified by the Commission or its designee that the agency's findings of need for a rule do not meet the required criteria or that the rule does not meet the required standards, the agency must notifynotifythe the Commission or its designee of its decision.

Page 2 DRS15299-TQ-2Senate Bill 693-First Edition General Assembly Of North Carolina Session 2023 (b3)(b6) Notwithstanding any other provision of this subsection, if the agency has not complied with the provisions of G.S.

(2) Theeffectivedateofthe permanent rule adoptedtoreplacethetemporaryadoptedtoreplacethetemporaryrule, rule, if the Commission approves the permanent rule.

(5) 270 days from thedate thetemporaryrule was publishedpublishedin in theNorth Carolina Register, unless the permanent rule adopted to replace the temporary rule has been submitted to the Commission.

– An agency must hold a public hearing on a rule it proposes to adopt if the agency publishes the text of the proposed rule in the North Carolina Register and the agency receives a written request for a public hearinghearingon on the proposed rule within 15 days after the notice oftext is published.

TheagencyTheagencymust must accept comments at thepublichearingon both theproposed rule and any fiscal note that has been prepared in connection with the proposed rule.

When an agencyagencyis is required to hold a public hearing on a proposed rule or decides to hold a public hearing on a proposed rule when it is not required to do so, the agency must publish in the North Carolina Register a notice of the date, time, and place of the public hearing.

If notice of a public hearing has been published in the North Carolina Register and DRS15299-TQ-2Senate Bill 693-First Edition Page 3 General Assembly Of North Carolina Session 2023 that public hearing has been cancelled, the agency must publish notice in the North Carolina Register at least 15 days prior to the date of any rescheduled hearing.

– An agency must accept comments on the text of a proposed rule that is published in the North Carolina Register and anyanyfiscal fiscal note that has been prepared in connection with the proposed rule for at least 60 days after the text is published or until the date of anyanypublic public hearing held on the proposed rule, whichever is longer.

An agencyagencymust must consider fully all written and oral comments received.

Prior to adoption, an agencyagencymust must review anyanyfiscal fiscal note that has been prepared for the proposed rule and consider any public comments received in connection with the proposed rule or the fiscal note.

– An agency must issue a concise written statement explaining why the agencyagencyadopted adopted a rule if, within 15 days after the agencyagencyadopts adopts the rule, a person asks the agency to do so.

(i) Record.– AnagencyAnagencymust mustkeeparecordofarulemakingproceeding. keeparecordofarulemaking proceeding.

Therecordmust include all written comments received, a transcript or recording of anyanypublic public hearing held on the rule, any fiscal note that has been prepared for the rule, and any written explanation made by the agency for adopting the rule.

… Page 4 DRS15299-TQ-2Senate Bill 693-First Edition General Assembly Of North Carolina Session 2023 (b2) Objection.

The agency must also obtain from the Office a certification thatthatthe the agency adhered to the regulatory principles set forth in G.S.

The Office of State Budget and Management shall DRS15299-TQ-2Senate Bill 693-First Edition Page 5 General Assembly Of North Carolina Session 2023 review the fiscal note within 14 days after it is submitted and either approve the note or inform the agency in writing of the reasons why it does not approve the fiscal note.

This subsection shall applyapplyto to rules and subject matters that an agency currently has general authorityauthorityto to regulate, but where the proposed temporary or permanent rule seeks to establish more specific regulations than those already codified and results in a substantial economic impact." SECTION 7.

Page 6 DRS15299-TQ-2Senate Bill 693-First Edition General Assembly Of North Carolina Session 2023 (b) TemporaryTemporaryand and Permanent Rules.

– When the Commission reviews an amendment to a temporary or permanent rule,itmayreviewtheentirerulethatisbeingamended.TheprocedureinG.S.rule,itmayreviewtheentirerulethatisbeingamended.

TheprocedureinG.S.

DRS15299-TQ-2Senate Bill 693-First Edition Page 7 General Assembly Of North Carolina Session 2023 (a) Action.

… (13) Construe, implement, invalidate, or enforce anyanydecision, decision, or any agreement or settlement agreement, between a person aggrieved and an agency." SECTION 11.

AnyAnypending pending proposed temporarytemporaryrule rule submitted to the Rules Review Commission pursuant to G.S.

150B-21.9 or Page 8 DRS15299-TQ-2Senate Bill 693-First Edition General Assembly Of North Carolina Session 2023 Article 2A of Chapter 150B of the General Statutes, as determined by the Commission;

(2) The agencyagencyhas has not submitted a change to the rule to satisfy the Commission's objection.

DRS15299-TQ-2Senate Bill 693-First Edition Page 9