GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	3 

HOUSE BILL 192*
Committee Substitute Favorable 4/24/95
Senate Judiciary I/Constitution Committee Substitute Adopted 6/20/95

Short Title:  RRC Changes/Leg. Oversight.	(Public)

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Sponsors:

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Referred to:  

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February 15, 1995

A BILL TO BE ENTITLED
AN ACT TO CREATE THE JOINT LEGISLATIVE ADMINISTRATIVE PROCEDURE OVERSIGHT COMMITTEE, TO STRENGTHEN THE AUTHORITY OF THE RULES REVIEW COMMISSION, AND TO MAKE PROPOSED ADMINISTRATIVE RULES EFFECTIVE AFTER THE LEGISLATURE HAS HAD TIME TO ACT TO DISAPPROVE THE RULE BUT NOT LATER THAN THE END OF THE LEGISLATIVE SESSION.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 120 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 12K.
"Joint Legislative Administrative Procedure Oversight Committee.
"§ 120-70.100.  Creation and membership of Joint Legislative Administrative Procedure Oversight Committee.
The Joint Legislative Administrative Procedure Oversight Committee is established. The Committee consists of 16 members as follows:
(1)	Eight members of the Senate appointed by the President Pro Tempore of the Senate, at least three of whom are members of the minority party.
(2)	Eight members of the House of Representatives appointed by the Speaker of the House of Representatives, at least three of whom are members of the minority party.
Terms on the Committee are for two years and begin on January 15 of each odd-numbered year, except the terms of the initial members.  The terms of the initial members begin on appointment. Members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee.
A member continues to serve until the member's successor is appointed. A vacancy shall be filled within 30 days by the officer who made the original appointment.
"§ 120-70.101.  Purpose and powers of Committee.
The Joint Legislative Administrative Procedure Oversight Committee has the following powers and duties:
(1)	To review rules to which the Rules Review Commission has objected to determine if statutory changes are needed to enable the agency to fulfill the intent of the General Assembly.
(2)	To receive reports prepared by the Rules Review Commission containing the text and a summary of each rule approved by the Commission.
(3)	To prepare and make available to members of the General Assembly one or more notebooks that contain the administrative rules that have been approved by the Rules Review Commission and reported to the Committee.
(4)	To review State regulatory programs to determine if the programs overlap, have conflicting goals, or could be simplified and still achieve the purpose of the regulation.
(5)	To review the rule-making process to determine if the procedures for adopting rules give the public adequate notice of and information about proposed rules.
(6)	To review any other concerns about administrative law to determine if statutory changes are needed.
(7)	To report to the General Assembly at the beginning of each regular session concerning the Committee's activities and any recommendations for statutory changes.
"§ 120-70.102.  Organization of Committee.
(a)	The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Joint Legislative Administrative Procedure Oversight Committee.  The Committee shall meet at least once a quarter and may meet at other times upon the joint call of the cochairs.
(b)	A quorum of the Committee is nine members.  No action may be taken except by a majority vote at a meeting at which a quorum is present.  While in the discharge of its official duties, the Committee has the powers of a joint committee under G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4.
(c)	Members of the Committee receive subsistence and travel expenses as provided in G.S. 120-3.1.  The Committee may contract for consultants or hire employees in accordance with G.S. 120-32.02.  The Committee may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission. The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist the Committee in its work.  Upon the direction of the Legislative Services Commission, the Supervisors of Clerks of the Senate and of the House of Representatives shall assign clerical staff to the Committee.  The expenses for clerical employees shall be paid by the Committee.
"§ 120-70.103.  Exercise of duty to maintain a notebook of approved rules.
With the approval of the Legislative Services Commission, the Joint Legislative Administrative Procedure Oversight Committee may delegate to the Legislative Library the duty to maintain a notebook containing rules approved by the Rules Review Commission.   Whether the notebook is maintained by the Committee or by the Legislative Library, rules shall be filed in the notebook in accordance with the numbering system used in the North Carolina Administrative Code."
Sec.  2.  G.S. 150B-21.1(d) reads as rewritten:
"(d)	Effective Date and Expiration. – A temporary rule becomes effective on the date specified in G.S. 150B-21.3. A temporary rule expires on the earliest of the following dates:
(1)	The date specified in the rule.
(2)	The effective date of the permanent rule adopted to replace the temporary rule, if the Commission approves the permanent rule.
(3)	The date the Commission returns to an agency a permanent rule the agency adopted to replace the temporary rule, if the Commission objects to the permanent rule."
Sec. 3.  G.S. 150B-21.3(b) reads as rewritten:
"(b)	Permanent Rule. – A permanent rule approved by the Commission becomes effective on the thirty-first legislative day of both the House of Representatives and Senate after the commencement of the next regular session of the General Assembly that begins at least 25 days after the date the Commission approves the rule, or the effective date specified by the agency, if later, unless a bill to disapprove the rule, which makes specific reference to the rule, is introduced in either house of the General Assembly before the thirty-first legislative day.  If a bill to disapprove a rule is introduced, the rule shall become effective upon the earlier of (i) an unfavorable final action on the bill, or (ii) the day of adjournment of that session of the General Assembly without ratification of the bill disapproving the rule, unless the agency specified the effective date of the rule to be later, in which event the specified date shall apply.  For purposes of this section, the rules of both houses of the General Assembly shall allow a bill to disapprove a rule to be introduced by any member in any regular session.  A permanent rule that is not approved by the Commission does not become effective.
The day of adjournment of a regular session held in an odd-numbered year is the day the General Assembly adjourns by joint resolution for more than 10 days.  The day of adjournment of a regular session held in an even-numbered year is the day the General Assembly adjourns sine die."
Sec. 4.  G.S. 150B-21.3 is amended by adding a new subsection to read:
"( b1)	Rule Made Effective by Executive Order of the Governor. – Notwithstanding subsection (b) of this section, the Governor may by executive order put into effect until the day of adjournment of the next regular session of the General Assembly that begins at least 25 days after the date the Commission approves the rule, any permanent rule approved by the Commission upon a finding that making the rule effective at that time is necessary to protect public health, safety, or welfare.  The Codifier of Rules shall note that the rule has been adopted pursuant to an executive order.  A rule that becomes effective pursuant to an executive order under this section shall become effective as a permanent rule under subsection (b) of this section on the day of adjournment of the next regular session of the General Assembly that began at least 25 days after the date the Commission approved the rule, unless a bill disapproving the rule is ratified during that session of the General Assembly."
Sec. 5.  G.S. 150B-21.9(a) reads as rewritten:
"§ 150B-21.9.  Standards and timetable for review by Commission.
(a)	Standards. – The Commission must determine whether a rule meets all of the following criteria:
(1)	It is within the authority delegated to the agency by the General Assembly.
(2)	It is clear and unambiguous.
(3)	It is reasonably necessary to fulfill a duty delegated to the agency by the General Assembly, when considered in light of the cumulative effect of all rules adopted by the agency related to the specific purpose for which the rule is proposed and the legislative intent of the General Assembly in delegating the duty.
The Commission may determine if a rule submitted to it was adopted in accordance with Part 2 of this Article.  The Commission must notify the agency that adopted the rule if it determines that a rule was not adopted in accordance with Part 2 of this Article and must return the rule to the agency.  Entry of a rule in the North Carolina Administrative Code after review by the Commission is conclusive evidence that the rule was adopted in accordance with Part 2 of this Article."
Sec. 6.  G.S. 150B-21.11 reads as rewritten:
"§ 150B-21.11.  Procedure when Commission approves permanent rule.
When the Commission approves a permanent rule, it must notify the agency that adopted the rule of the Commission's approval, deliver the approved rule to the Codifier of Rules, and include the text of the approved rule and a summary of the rule in its next report to the Joint Legislative Administrative Procedure Oversight Committee.  "
Sec. 7.  G.S. 150B-21.12 reads as rewritten:
"§ 150B-21.12.  Procedure when Commission objects to a permanent rule.
(a)	Action. – When the Commission objects to a permanent rule, it must send the agency that adopted the rule a written statement of the objection and the reason for the objection.  The agency that adopted the rule must take one of the following actions:
(1)	Change the rule to satisfy the Commission's objection and submit the revised rule to the Commission.
(2)	Submit a written response to the Commission indicating that the agency has decided not to change the rule.
An agency that is not a board or commission must take one of these actions within 30 days after receiving the Commission's statement of objection.  A board or commission must take one of these actions within 30 days after receiving the Commission's statement of objection or within 10 days after the board or commission's next regularly scheduled meeting, whichever comes later.
When an agency changes a rule in response to an objection by the Commission, the Commission must determine whether the change satisfies the Commission's objection.  If it does, the Commission must approve the rule.  If it does not, the Commission must send the agency a written statement of the Commission's continued objection and the reason for the continued objection.
A rule to which the Commission has objected remains under review by the Commission until the agency that adopted the rule decides not to satisfy the Commission's objection and makes a written request to the Commission to return the rule to the agency.  When the Commission returns a rule to which it has objected, it must send a copy of the record of the Commission's review of the rule to the Joint Legislative Administrative Procedure Oversight Committee in its next report to that Committee.  The record of review consists of the rule, the Commission's letter of objection to the rule, the agency's written response to the Commission's letter, and any other relevant documents before the Commission when it decided to object to the rule.
(b)	Changes After Report Made. – After the Commission sends a report of its objection to a rule to the Joint Legislative Administrative Procedure Oversight Committee, the agency that adopted the rule may submit to the Commission changes in the rule to satisfy the Commission's objection.  The agency must submit the changes before the date the rule would have become effective if the Commission had not objected to the rule.  If the Commission determines that the changes submitted to the rule satisfy its objection, the Commission must accept the changes, file the revised rule with the Codifier of Rules, and notify the Joint Legislative Administrative Procedure Oversight Committee of its action."
Sec. 8.  G.S. 150B-21.15 is repealed.
Sec. 9.  Part 3 of Article 2B of Chapter 150B of the General Statutes is amended by adding a new section to read:
"§ 150B-21.16.  Report to Joint Legislative Administrative Procedure Oversight Committee.
The Commission must make monthly reports to the Joint Legislative Administrative Procedure Oversight Committee. The reports are due by the last day of the month.  A report must include the rules approved by the Commission at its meeting held in the month in which the report is due and the rules the Commission returned to agencies during that month after the Commission objected to the rule.  A report must include any other information requested by the Joint Legislative Administrative Procedure Oversight Committee."
Sec. 10.  G.S. 150B-21.19 reads as rewritten:
"§ 150B-21.19.  Requirements for including rule in Code.
To be acceptable for inclusion in the North Carolina Administrative Code, a rule must:
(1)	Cite the law under which the rule is adopted.
(2)	Be signed by the head of the agency or the rule-making coordinator for the agency that adopted the rule.
(3)	Be in the physical form specified by the Codifier of Rules.
(4)	Have been approved by the Commission, if the rule is a permanent rule."
Sec. 11. This act becomes effective October 1, 1995, and applies to all rules for which a notice of rule making is published in the North Carolina Register on or after that date.  Section 8 of this act shall not abate any action or appeal brought under G.S. 150B-21.15 prior to the effective date of this act.