Oklahoma House approves bill to alter administrative rule review, creates economic-analysis unit

The Oklahoma House of Representatives on Thursday passed House Bill 2728, a measure that revises how state administrative rules are reviewed and requires certain rules with substantial fiscal impact to come before the Legislature.

Representative Kendricks, who sponsored the bill, said the measure separates rules into "major" and "minor" categories and defines a major rule as one that imposes costs of $1 million or more over the first five years of implementation. "If it is a major rule, it is required to come to the floor for a vote rather than running through the administrative process," Kendricks said.

The bill also creates an economic-analysis unit housed under LOFT (the legislative fiscal office referenced in the debate) to review agencies' fiscal assessments and advise the Administrative Rules Committee. Kendricks said leadership has authorized the unit to staff up to five positions, with an initial expectation that two positions will be needed. "Loft will assess x y z. They will provide that information to us just like we do on legislation," Kendricks said, adding that the administrative committees retain final decision-making authority.

Members questioned how minor rules that impose limited fiscal cost but could restrict freedoms would be handled. "Often minor rules that don't have a fiscal impact can be just as restrictive to people's freedom as a major rule financially," Representative Gann said. Kendricks responded that minor rules will continue to be reviewed by the Administrative Rules Committee and the senate counterpart and that LOFT will act in an assisting role to check agencies' methodologies.

Representative Crosswhite Hader asked whether members would rely on LOFT staff rather than performing the review themselves; Kendricks emphasized the committee retains ultimate authority. "They are not making decisions. It is the committee that still makes the decision," Kendricks said.

The bill includes language requiring agencies to show outreach and contact with affected individuals, local boards or communities when rules touch those constituencies. Kendricks said the idea has been worked on in an interim study since about May of the previous year and that the concept draws comparisons to the federal REINS proposals.

House members advanced and then voted to pass the bill on final reading. The roll call produced a final tally of 86 yes and 3 no; the clerk and presiding officer then declared the bill passed. The House noted there was no emergency clause in the measure.

Votes at a glance House Bill 2728 — Final passage (motion by Representative Kendricks). Outcome: approved. Vote: 86 yes, 3 no. No emergency clause specified.

The legislation also directs the new LOFT economic-analysis unit to publish its reports publicly and send them to the Administrative Rules Committee for determination. Kendricks said the statutory machinery establishing the legislative unit does not take effect until November, and the bill's sponsors expect LOFT to assist with standing up the unit in the interim.

The House did not record on the floor any additional amendments during the debate. The bill as passed moves next in the legislative process per normal procedures.