North Carolina Lawmakers Debate REINS Act to Regulate Oversight

News Summary

North Carolina legislators are examining the REINS Act, which seeks to enhance legislative control over regulatory rules. The proposal follows Governor Stein’s veto of a similar bill. House Bill 402 requires significant financial implications for regulatory changes to gain legislative approval, aiming for increased transparency and accountability. Critics argue it may delay vital regulations, while supporters believe it could restore balance between legislative and executive powers.

North Carolina lawmakers are considering a significant legislative change with the REINS (Regulations from the Executive in Need of Scrutiny) Act, which aims to enhance legislative control over administrative regulations. This bill is in the spotlight following the veto of North Carolina’s version of the REINS Act by Governor Josh Stein in late June 2025. With the General Assembly poised to discuss House Bill 402, legislators have the opportunity to override the governor’s veto, which requires a three-fifths majority vote in both chambers.

House Bill 402 stipulates that any regulatory rule estimated to impose costs of at least $20,000,000 over a five-year period must gain legislative approval before taking effect. Until such approval is granted from the General Assembly, these rules cannot be implemented. This proposed mechanism aims to bring more transparency and accountability into the regulatory process, allowing for greater input from North Carolinians, including parents and business owners.

Currently, North Carolina holds a notably low rating for its legislative review procedures, according to a recent report by the Pacific Legal Foundation, which awarded the state only two points. North Carolina is among only 12 states with two or fewer points for legislative oversight over regulations, positioning it behind neighboring states like Alabama, Georgia, and Virginia, which generally have three or four oversight provisions.

Adopting the REINS Act would enable North Carolina to establish three oversight provisions, thereby strengthening the lawmaking authority of the General Assembly. Moreover, North Carolina would become the first state in its region to adopt the REINS framework, joining nine other states—Florida, Kansas, Kentucky, Louisiana, Minnesota, Oklahoma, Utah, West Virginia, and Wisconsin—that have already enacted their versions of the Act.

As of 2023, North Carolina is burdened with an extensive array of regulatory restrictions, totaling 109,244, and its administrative code contains over 6 million words. When federal regulations are added, the overall regulatory burden surpasses 1.2 million combined restrictions. The financial implications of this extensive administrative framework are significant; estimates for the cost of the state’s regulatory code alone range from $3.1 billion to $25 billion annually, as of 2015.

Supporters of the REINS Act advocate that it would reduce costs for businesses, potentially leading to broader economic benefits for the state. They argue that by placing more checks on the executive branch, the Act could restore a balance of power that has tilted over the years. Americans for Prosperity, a pro-business group, champions the legislation, asserting that it could enhance democratic accountability in the regulatory process.

However, the bill has attracted criticism, particularly from Governor Stein, who argues that it could complicate and delay vital regulations related to public health and safety, such as those concerning clean water and air. Critics express concern that increased legislative oversight could stifle timely responses to emerging regulatory challenges, leading to necessary bureaucratic delays. This controversy highlights an ongoing debate about the appropriate distribution of power between North Carolina’s legislative and executive branches.

Since the Republican Party gained control of the North Carolina legislature in 2011, there has been a concerted effort to shift authority away from the executive branch. Following Senate approval, House Bill 402 is set for discussion in the House on July 29, 2025. Should the bill pass, it would significantly reshape the landscape of regulatory oversight in North Carolina.

Deeper Dive: News & Info About This Topic

• Carolina Journal: Will NC Join the REINS Crowd?
• The Center Square: North Carolina REINS Act Overview
• WRAL: Stein Vetoes REINS Act
• Wikipedia: REINS Act
• Carolina Journal: NC Senate Passes REINS Act