State agencies would pause rules costing at least $4 million

State agencies would stop work when a cost study shows a proposed rule meets the $4 million threshold. The threshold covers expected costs businesses, local governments, and individuals would bear to carry out and follow a rule over any two-year period. An agency could proceed if a law authorizes the rule. An agency could revise the rule within its original subject. Its revised cost study and any later independent study would need to show costs below the threshold. The proposal first applies to rules whose scope statements are presented for approval on the provision’s effective date. No calendar date is stated.

Agencies could not split rules to avoid the cost limit. Courts reviewing rules would have to invalidate those issued in violation of that ban. The ban applies to state agencies trying to avoid the cost limit. The ban covers rules with similar requirements or rules on the same subject issued in sequence or depending on one another, when they could be issued as one rule. The proposal first applies to rules whose scope statements are presented for approval on the provision’s effective date. No calendar date is stated.