Senate Bill 2301

AN ACT TO AMEND SECTION 25-43-3.105, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY ADMINISTRATIVE RULE OR REGULATION HAVING AN ECONOMIC IMPACT IN EXCESS OF ONE MILLION DOLLARS IS VOID UNTIL RATIFIED BY THE LEGISLATURE; TO PROVIDE THAT THIS PROVISION SHALL BE ENTITLED "MISSISSIPPI REGULATIONS FROM THE EXECUTIVE IN NEED OF SCRUTINY (REINS) ACT"; AND FOR RELATED PURPOSES.

SECTION 1. 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 Million Dollars ($1,000,000.00).

(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;

(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

(8) (a) This subsection (8) may be cited as the "Mississippi Regulations from the Executive in Need of Scrutiny (REINS) Act."

(b) If a proposed rule is estimated to cost in excess of One Million Dollars ($1,000,000.00), as reflected in an economic impact statement required under this chapter, the proposed rule shall not become effective until the Legislature enacts legislation ratifying the proposed rule.

(i) The issuing agency shall submit the proposed rule to the Legislature no later than thirty (30) days prior to the next regular legislative session. Any member of the Legislature may introduce a bill to ratify the proposed rule.

(ii) The Legislature must ratify the proposed rule before the agency may submit the rule to the Office of the Secretary of State as a final rule. The proposed rule shall not become effective before the effective date of the ratifying legislation.

(iii) If the Legislature does not ratify the proposed rule, the agency shall not submit a final rule to the Office of the Secretary of State.

(c) The agency shall withdraw the proposed rule and cause notice of the withdrawal in the next available issue of the administrative bulletin, if:

(i) The Legislature does not ratify the proposed rule before adjournment sine die; or

(ii) The Legislature does not override a veto, in the event that the Governor vetoes the legislation ratifying the proposed rule.

(d) A adopted after July 1, 2024, is invalid unless adopted in compliance with the provisions of this article.

SECTION 2. This act shall take effect and be in force from and after July 1, 2024.