Administrative rules; creating the Regulations from the Executive in Need of Scrutiny (REINS) Act of 2025; requiring Legislative Office of Fiscal Transparency to conduct certain analyses. Effective date.
The implementation of SB318 will significantly alter existing processes concerning how administrative rules are evaluated and approved. By mandating economic impact analyses for major rules, the bill aims to hold agencies accountable for understanding the financial implications of their regulations on businesses and local governments. As a result, agencies will be required to consult affected stakeholders and justify the financial burdens that may arise from new regulations, fostering a more transparent and data-driven regulatory environment.
Senate Bill 318, known as the Regulations from the Executive in Need of Scrutiny (REINS) Act of 2025, seeks to enhance legislative oversight over agency rules and regulations that significantly impact the economy. Specifically, the bill requires state agencies to conduct rigorous economic impact analyses for any major rules that are expected to impose implementation and compliance costs exceeding $1 million over the initial five-year period. A new legislative body, the Legislative Economic Analysis Unit (LEAU), will be established to provide independent analysis and ensure that proposed regulations meet established criteria before taking effect.
Discussions surrounding SB318 have revealed a bipartite sentiment among lawmakers and stakeholders. Proponents of the bill, primarily from the Republican party, argue that the legislation is essential for promoting economic growth by preventing undue regulatory burdens on businesses. Opponents, often from the Democratic party, express concerns that the bill could delay or hinder necessary regulations, arguing that it could lead to a situation where only rules that are economically beneficial to industries are enacted, potentially undermining public interest policies aimed at health, safety, and welfare.
A central point of contention in the passage of SB318 revolves around the perception of regulatory authority and its impact on state governance. Critics fear that increasing legislative control over administrative rules may lead to a 'politicalization' of regulations, as certain rules may become subject to the whims of political negotiation rather than being based solely on public health or safety concerns. This debate underscores a fundamental tension between efficient bureaucratic governance and rigorous legislative oversight intended to protect economic interests.