MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Accountability, Efficiency, Transparency

By: Representative Ford (54th)

House Bill 16

AN ACT TO AMEND SECTION 25-43-3.103, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT THE NOTICE OF A STATE AGENCY'S PROPOSED RULE ADOPTION INCLUDE HOW MUCH THE PROPOSED RULE WILL COST THE STATE; TO REQUIRE THAT A COPY OF THE NOTICE OF PROPOSED RULE ADOPTION BE PROVIDED TO EACH MEMBER OF THE MISSISSIPPI LEGISLATURE IF THE ESTIMATED COST OF THE PROPOSED RULE IS $200,000.00 OR MORE PER YEAR OR $600,000.00 OR MORE OVER THREE YEARS; TO AMEND SECTION 25-43-3.105, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT A SUMMARY OF THE ECONOMIC IMPACT STATEMENT AND THE PROPOSED RULE SHALL BE FORWARDED TO EACH MEMBER OF THE LEGISLATURE AT NO COST TO THE MEMBER IF THE ESTIMATED COST OF THE PROPOSED RULE IS $200,000.00 OR MORE PER YEAR OR $600,000.00 OR MORE OVER THREE YEARS; TO AUTHORIZE THE LEGISLATURE TO REVIEW, MAKE OBJECTIONS TO, AND MAKE WRITTEN RECOMMENDATIONS FOR CHANGES TO A PROPOSED RULE; TO PROVIDE THAT SUCH A RULE WILL NOT BECOME EFFECTIVE UNLESS APPROVED BY THE GOVERNOR; TO AMEND SECTION 25-43-3.106, MISSISSIPPI CODE OF 1972, TO REQUIRE THE AGENCY TO CONSIDER ANY OBJECTION OR RECOMMENDATION MADE BY THE LEGISLATURE BEFORE A PROPOSED RULE IS ADOPTED; TO AMEND SECTION 25-43-3.110, MISSISSIPPI CODE OF 1972, TO REQUIRE THE AGENCY TO INCLUDE THE GOVERNOR'S APPROVAL OR OBJECTION TO THE RULE IN THE RULE-MAKING RECORD; TO AMEND SECTION 25-43-3.111, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A RULE IS INVALID UNLESS ADOPTED IN SUBSTANTIAL COMPLIANCE WITH THE ADMINISTRATIVE PROCEDURES ACT AS IT EXISTED ON THE DATE THAT THE RULE WAS ADOPTED; TO AMEND SECTIONS 25-43-3.112 AND 25-43-3.113, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 25-43-3.103, Mississippi Code of 1972, is amended as follows:

     25-43-3.103.  (1)  At least twenty-five (25) days before the adoption of a rule an agency shall cause notice of its contemplated action to be properly filed with the Secretary of State for publication in the administrative bulletin.  The notice of proposed rule adoption must include:

          (a)  A short explanation of the purpose of the proposed rule and the agency's reasons for proposing the rule;

          (b)  The specific legal authority authorizing the promulgation of rules;

          (c)  A reference to all rules repealed, amended or suspended by the proposed rule;

          (d)  Subject to Section 25-43-2.101(5), the text of the proposed rule;

          (e)  Where, when and how persons may present their views on the proposed rule; * * *and

          (f)  Where, when and how persons may demand an oral proceeding on the proposed rule if the notice does not already provide for one * * *.;

          (g)  How much the proposed rule will cost the state.

     (2)  Within three (3) days after its proper filing with the Secretary of State for publication in the administrative bulletin, the agency shall cause a copy of the notice of proposed rule adoption to be provided to each member of the Mississippi Legislature if the estimated cost of the proposed rule is Two Hundred Thousand Dollars ($200,000.00) or more per year or Six Hundred Thousand Dollars ($600,000.00) or more over three (3) years, and to each person who has made a timely request to the agency to be placed on the mailing list maintained by the agency of persons who have requested notices of proposed rule adoptions.  An agency may mail the copy to the person and may charge the person a reasonable fee for such service, which fee may be in excess of the actual cost of providing the person with a mailed copy; however, no such fee shall be charged to members of the Mississippi Legislature.  Alternatively, the agency may provide the copy via the Internet or by transmitting it to the person by electronic means, including, but not limited to, facsimile transfer or e-mail at no charge to the person, if the person consents to this form of delivery.

     SECTION 2.  Section 25-43-3.105, Mississippi Code of 1972, is amended as follows:

     25-43-3.105.  (1)  Prior to giving the notice required in Section 25-43-3.103, each agency proposing the adoption of a rule or significant amendment of an existing rule imposing a duty, responsibility or requirement on any person shall consider the economic impact the rule will have on the citizens of our state and the benefits the rule will cause to accrue to those citizens.  For purposes of this section, a "significant amendment" means any amendment to a rule for which the total aggregate cost to all persons required to comply with that rule exceeds One Hundred Thousand Dollars ($100,000.00).

     (2)  Each agency shall prepare a written report providing an economic impact statement for the adoption of a rule or significant amendment to an existing rule imposing a duty, responsibility or requirement on any person, except as provided in subsection (7) of this section.  The economic impact statement shall include the following:

          (a)  A description of the need for and the benefits which will likely accrue as the result of the proposed action;

          (b)  An estimate of the cost to the agency, and to any other state or local government entities, of implementing and enforcing the proposed action, including the estimated amount of paperwork, and any anticipated effect on state or local revenues;

          (c)  An estimate of the cost or economic benefit to all persons directly affected by the proposed action;

          (d)  An analysis of the impact of the proposed rule on small business;

          (e)  A comparison of the costs and benefits of the proposed rule to the probable costs and benefits of not adopting the proposed rule or significantly amending an existing rule;

          (f)  A determination of whether less costly methods or less intrusive methods exist for achieving the purpose of the proposed rule where reasonable alternative methods exist which are not precluded by law;

          (g)  A description of reasonable alternative methods, where applicable, for achieving the purpose of the proposed action which were considered by the agency and a statement of reasons for rejecting those alternatives in favor of the proposed rule; and

          (h)  A detailed statement of the data and methodology used in making estimates required by this subsection.

     (3)  No rule or regulation shall be declared invalid based on a challenge to the economic impact statement for the rule unless the issue is raised in the agency proceeding.  No person shall have standing to challenge a rule, based upon the economic impact statement or lack thereof, unless that person provided the agency with information sufficient to make the agency aware of specific concerns regarding the statement in an oral proceeding or in written comments regarding the rule.  The grounds for invalidation of an agency action, based upon the economic impact statement, are limited to the agency's failure to adhere to the procedure for preparation of the economic impact statement as provided in this section, or the agency's failure to consider information submitted to the agency regarding specific concerns about the statement, if that failure substantially impairs the fairness of the rule-making proceeding.

     (4)  A concise summary of the economic impact statement must be properly filed with the Secretary of State for publication in the administrative bulletin and the period during which persons may make written submissions on the proposed rule shall not expire until at least twenty (20) days after the date of such proper filing.

     (5)  The properly filed summary of the economic impact statement must also indicate where persons may obtain copies of the full text of the economic impact statement and where, when and how persons may present their views on the proposed rule and demand an oral proceeding on the proposed rule if one is not already provided.

     (6)  If the agency has made a good-faith effort to comply with the requirements of subsections (1) and (2) of this section, the rule may not be invalidated on the ground that the contents of the economic impact statement are insufficient or inaccurate.

     (7)  This section does not apply to the adoption of:

          (a)  Any rule which is required by the federal government pursuant to a state/federal program delegation agreement or contract;

          (b)  Any rule which is expressly required by state law; and

          (c)  A temporary rule adopted pursuant to Section 25-43-3.108.

     (8)  (a)  As used in this subsection (8), the term "proposed rule" means a new rule proposed by the agency or a significant amendment to an existing rule.

          (b)  If the estimated cost of a proposed rule is Two Hundred Thousand Dollars ($200,000.00) or more per year or Six Hundred Thousand Dollars ($600,000.00) or more over three (3) years, a concise summary of the economic impact statement and the proposed rule shall be forwarded to each member of the Mississippi Legislature at no cost to the member. 

          (c)  Upon receipt of the summary, the chairman of a committee in the House of Representatives and/or the Senate that handles legislation relevant to the subject matter of the proposed rule may object to the proposed rule or any part thereof within seven (7) days.  If the chairman objects to the proposed rule, he or she shall provide the reasons for the objection in writing to the agency.  The chairman may make written recommendations to the agency for changes to be made to a proposed rule.

          (d)  The chairman may hold committee meetings to review  a proposed rule.  If the chairman decides to hold a meeting, he or she shall notify the agency in writing and shall set the date and time for the meeting in the notice to the agency.  After the committee meeting, the committee may object to the proposed rule or any part thereof.  If the committee objects to the proposed rule, the committee shall provide the reasons for the objection in writing to the agency.  The committee may make written recommendations to the agency for changes to be made to a proposed rule.

          (e)  The period during which the chairmen and their committees may review, object to, and make recommendations for changes to the proposed rule shall expire thirty (30) days after the date the summary of the economic impact statement and the proposed rule is received.

          (f)  Nothing in this subsection (8) shall be construed as giving the chairmen or the committees any authority to veto, nullify or revise a proposed rule.  The authority of the chairmen or the committees under this subsection shall be limited to reviewing, making objections to, and making recommendations for changes to the proposed rule.

     (9)  If a proposed rule or significant amendment to an existing rule is estimated to cost Two Hundred Thousand Dollars ($200,000.00) or more per year or Six Hundred Thousand Dollars ($600,000.00) or more over three (3) years, the rule shall not become effective unless approved by the Governor or his or her designee, or as otherwise provided in Section 25-43-3.113(3).  The Governor or his or her designee shall consider any objection or recommendation made by a legislative chairman or committee after review as provided in subsection (8) of this section before approving or objecting to the rule.

     SECTION 3.  Section 25-43-3.106, Mississippi Code of 1972, is amended as follows:

     25-43-3.106.  (1)  An agency may not adopt a rule until the period for making written submissions * * * and, oral presentations, and review by the Legislature has expired.

     (2)  Following the proper filing with the Secretary of State of the notice of proposed rule adoption, an agency shall adopt a rule pursuant to the rule-making proceeding or terminate the proceeding by proper filing with the Secretary of State of a notice to that effect for publication in the administrative bulletin.

     (3)  Before the adoption of a rule, an agency shall consider the written submissions, oral submissions or any memorandum summarizing oral submissions, * * *and any economic impact statement, provided for by this Article III, and any objection or recommendation made by a legislative chairman or committee after review as provided in Section 25-43-3.105(8).

     (4)  Within the scope of its delegated authority, an agency may use its own experience, technical competence, specialized knowledge and judgment in the adoption of a rule.

     SECTION 4.  Section 25-43-3.110, Mississippi Code of 1972, is amended as follows:

     25-43-3.110. (1)  An agency shall maintain an official rule-making record for each rule it (a) proposes or (b) adopts.  The agency has the exclusive authority to prepare and exclusive authority to certify the record or any part thereof, including, but not limited to, any transcript of the proceedings, and the agency's certificate shall be accepted by the court and by any other agency.  The record must be available for public inspection.

     (2)  The agency rule-making record must contain:

          (a)  Copies of all notices of proposed rule-making or oral proceedings or other publications in the administrative bulletin with respect to the rule or the proceeding upon which the rule is based;

          (b)  Copies of any portions of the agency's public rule-making docket containing entries relating to the rule or the proceeding upon which the rule is based;

          (c)  All written requests, submissions and comments received by the agency and all other written materials considered by the agency in connection with the formulation, proposal or adoption of the rule or the proceeding upon which the rule is based;

          (d)  Any official transcript of oral presentations made in the proceeding upon which the rule is based or, if not transcribed, any tape recording or stenographic record of those presentations, and any memorandum prepared by a presiding official summarizing the contents of those presentations.  The word "transcript" includes a written transcript, a printed transcript, an audible audiotape or videotape that is indexed and annotated so that it is readily accessible and any other means that the agency may have by rule provided for the reliable and accessible preservation of the proceeding;

          (e)  A copy of any economic impact statement prepared for the proceeding upon which the rule is based; * * * and

          (f)  A copy of the rule and related information set out in Section 25-43-3.109 as filed in the Office of the Secretary of State * * *.; and

          (g)  If the estimated cost of the rule is Two Hundred Thousand Dollars ($200,000.00) or more per year or Six Hundred Thousand Dollars ($600,000.00) or more over three (3) years, the approval of the Governor or his or her designee, unless the rule became effective as otherwise provided in Section 25-43-3.113(3), or if the Governor or his or her designee objected to the rule upon first application, the reasons for the objection.

     (3)  The agency shall have authority to engage such persons and acquire such equipment as may be reasonably necessary to record and preserve in any technically and practicably feasible manner all matters and all proceedings had at any rule-making proceeding.

     (4)  Upon judicial review, the record required by this section constitutes the official agency rule-making record with respect to a rule.  Except as otherwise required by a provision of law, the agency rule-making record need not constitute the exclusive basis for agency action on that rule or for judicial review thereof.

     SECTION 5.  Section 25-43-3.111, Mississippi Code of 1972, is amended as follows:

     25-43-3.111.  (1)  A rule adopted after July 1, 2005, is invalid unless adopted in substantial compliance with the provisions of Sections 25-43-3.102 through 25-43-3.110 as those sections existed on the date that the rule was adopted.  Inadvertent failure to mail a notice of proposed rule adoption to any person as required by Section 25-43-3.103(2) does not invalidate a rule.

     (2)  An action to contest the validity of a rule on the grounds of its noncompliance with any provision of Sections 25-43-3.102 through 25-43-3.110 must be commenced within one (1) year after the effective date of the rule.

     SECTION 6.  Section 25-43-3.112, Mississippi Code of 1972, is amended as follows:

     25-43-3.112.  An agency shall file in the Office of the Secretary of State each rule it adopts and all rules existing on July 1, 2005, that have not previously been filed.  The filing must be done as soon after adoption of the rule as is practicable.  At the time of filing, each rule adopted after July 1, 2005, must have included in or attached to it the material set out in Section 25-43-3.109.  The Secretary of State shall affix to each rule and statement a certification of the date of filing and keep a permanent register open to public inspection of all filed rules and attached material.  In filing a rule, each agency shall use a standard format prescribed by the Secretary of State.  The Secretary of State shall file a copy of each rule filed with him or her, along with his or her statement and certification, with the Office of the Governor if the estimated cost of the rule is Two Hundred Thousand Dollars ($200,000.00) or more per year or Six Hundred Thousand Dollars ($600,000.00) or more over three (3) years.

     SECTION 7.  Section 25-43-3.113, Mississippi Code of 1972, is amended as follows:

     25-43-3.113.  (1)  Except to the extent subsection (2) * * * or, (3) or (4) of this section provides otherwise, each rule adopted after July 1, 2005, becomes effective thirty (30) days after its proper filing in the Office of the Secretary of State.

     (2)  (a)  A rule becomes effective on a date later than that established by subsection (1) of this section if a later date is required by another statute or specified in the rule.

          (b)  A rule may become effective immediately upon its filing or on any subsequent date earlier than that established by subsection (1) of this section if the agency establishes such an effective date and finds that:

              (i)  It is required by Constitution, statute or court order;

              (ii)  The rule only confers a benefit or removes a restriction on the public or some segment thereof;

              (iii)  The rule only delays the effective date of another rule that is not yet effective; or

              (iv)  The earlier effective date is necessary because of imminent peril to the public health, safety or welfare.

          (c)  The finding and a brief statement of the reasons therefor required by paragraph (b) of this subsection must be made a part of the rule.  In any action contesting the effective date of a rule made effective under paragraph (b) of this subsection, the burden is on the agency to justify its finding.

          (d)  A temporary rule may become effective immediately upon its filing or on any subsequent date earlier than that established by subsection (1) of this section.

          (e)  Each agency shall make a reasonable effort to make known to persons who may be affected by it a rule made effective before any date established by subsection (1) of this section.

     (3)  Except as otherwise provided in subsection (2) of this section, an agency rule or significant amendment to an existing rule that is estimated to cost Two Hundred Thousand Dollars ($200,000.00) or more per year or Six Hundred Thousand Dollars ($600,000.00) or more over three (3) years shall not become effective unless approved by the Governor or his or her designee; however, if the Governor or his or her designee does not approve or object to the rule within thirty (30) days of receiving a copy of the rule filed with the Secretary of State, the rule shall become effective without the Governor or his or her designee's approval.  If the Governor or his or her designee objects to the rule within thirty (30) days of receiving a copy of the rule filed with the Secretary of State, the rule shall not take effect.  The Governor or his or her designee shall provide the reasons for the objection in writing to the agency.

     ( * * *34)  This section does not relieve an agency from compliance with any provision of law requiring that some or all of its rules be approved by other designated officials or bodies before they become effective.

     SECTION 8.  This act shall take effect and be in force from and after July 1, 2026.