REVIEW AND APPROVAL OF RULES

SB 423 requires the Legislative Finance Committee to analyze the costs and impacts of "major rules" (those costing $10 million+ annually or significantly affecting industries/communities) before they take effect. It mandates that all state agency rules must receive the governor’s approval and automatically expire after five years unless renewed by the legislature. The bill also defines "major rules" and requires agencies to provide detailed cost-benefit analyses, including effects on state revenue, compliance costs, and alternatives. This directly affects state agencies creating regulations, the governor, and legislative committees managing rule oversight. The changes aim to increase transparency and accountability in rulemaking.