Limit Rules With Substantial Financial Costs.

SB 705 requires North Carolina state agencies to assess the financial impact of proposed permanent rules that would cost affected individuals or businesses at least $1 million over five years. For rules costing $1 million or more, agencies must obtain budget office approval for a fiscal note and secure a two-thirds vote for adoption. Rules costing $10 million or more require unanimous agency approval (unless federally mandated), with all cost analyses needing to be monetized and include net present value calculations. This bill applies to all state agencies creating new permanent rules, aiming to ensure significant financial impacts undergo formal review before implementation.