From Veto to Victory: NC General Assembly Restores Oversight on Costly Rules

Four North Carolina lawmakers have been recognized as ALEC Policy Champions for advancing legislation designed to restore accountability in the state’s rule-making process. Rep. Allen Chesser, Sen. Steve Jarvis, Sen. Tim Moffitt, and Sen. Benton Sawrey earned the honor after shepherding House Bill 402 (HB 402) into law, a measure that limits the power of unelected regulators and strengthens legislative oversight.

In July, the General Assembly overrode Gov. Josh Stein’s veto of HB 402, officially making North Carolina the tenth state in the country to adopt REINS-style reform. The bill requires that any agency rule or regulation projected to have an economic impact exceeding $20 million over its first five years must receive approval from the General Assembly before taking effect. Rules that fall under the $20 million threshold will still follow newly established review procedures, ensuring added scrutiny at every level.

Senate Leader Phil Berger praised the legislation, calling it “a straightforward, commonsense bill ensuring that costly rules implemented by unelected bureaucrats get a second look from the General Assembly.” Supporters say the reform strikes a balance between necessary regulation and democratic accountability, preventing agencies from unilaterally imposing sweeping economic mandates.

The measure reflects a broader trend across the country. Similar reforms have already passed in states like Utah and Oklahoma this year, as legislatures seek to reclaim their role in the regulatory process. ALEC (the American Legislative Exchange Council) has promoted these policies as part of its Essential Policy Solutions for 2025, which include the Targeted Legislative Review Act. That model policy would establish a Legislative Economic Analysis Unit (LEAU) to provide independent cost assessments of proposed rules and ensure that so-called “major rules” cannot be implemented without legislative approval.

With HB 402 now law, North Carolina positions itself as a leader in the movement to curb agency overreach. The recognition of Chesser, Jarvis, Moffitt, and Sawrey underscores the growing momentum behind legislative efforts to enhance transparency, restore balance, and protect taxpayers from the economic consequences of unchecked regulation.