Provides for the review of certain regulations by the Legislature. (BDR 18-882)
Summary
AB 120 would change Nevada’s administrative rulemaking process by requiring executive-branch agencies to estimate the economic impact of a proposed regulation before holding a workshop. The estimate must be stated as a single dollar figure and include both agency implementation costs and expected costs passed on to businesses, local governments, and other persons, including potential burdens on small businesses.
If an agency determines that a proposed regulation would have an estimated economic impact of $500,000 or more, the agency would be barred from adopting it on its own. Instead, the proposal would have to be submitted as a legislative measure for approval by both the Legislature and the Governor. The bill also makes conforming changes to existing law governing agency rulemaking and legislative measure requests, and it takes effect July 1, 2025.
Impact
The bill would amend NRS 233B.040 and add a new section to chapter 233B of NRS to create a new threshold-based review process for regulations with large estimated economic effects. It would also amend NRS 218D.175 to allow the Director of the Office of Finance to request drafting of a legislative measure to enact a regulation that crosses the $500,000 impact threshold. In practical terms, agencies would lose unilateral authority to adopt certain high-cost regulations and would need legislative and gubernatorial approval before those rules could take effect.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition from hearings or floor action. Based on the bill text alone, the measure appears to reflect a policy preference for increased legislative oversight and cost control in rulemaking, particularly for regulations with significant economic consequences. The absence of recorded debate makes the overall sentiment difficult to gauge beyond the bill’s stated intent.
Contention
The main point of contention is likely to be the $500,000 trigger and whether it is an appropriate cutoff for legislative review. Supporters would likely argue that the bill increases accountability, transparency, and protection for businesses, local governments, and small businesses affected by costly regulations. Opponents may argue that it could slow agency rulemaking, add administrative burden, and politicize technical regulatory decisions by requiring legislative approval for regulations that exceed the threshold.
Providing an exception to the rules and regulations filing act for technical amendments, creating a process for certain rules and regulations to receive priority status in the adoption process, removing references to revival of rules and regulations, clarifying that the department of the budget is not required to approve proposed rules and regulations mandated by the federal government, adding references to department of corrections rules and regulations that are not subject to the act and requiring an agency submit a proposed rule and regulation to the joint committee on administrative rules and regulations prior to presentation of a bill to the legislature for ratification.
Further providing for definitions, for proposed regulations and procedures for review and for final-form regulations and final-omitted regulations and procedures for review; providing for regulations deemed withdrawn; further providing for procedures for subsequent review of disapproved final-form or final-omitted regulations; providing for concurrent resolution required for economically significant regulations; further providing for existing regulations; and providing for State agency regulatory compliance officers and for Office of Government Efficiency.
Further providing for definitions, for proposed regulations and procedures for review and for final-form regulations and final-omitted regulations and procedures for review; providing for regulations deemed withdrawn; further providing for procedures for subsequent review of disapproved final-form or final-omitted regulations; and providing for concurrent resolution required for economically significant regulations.
Further providing for definitions, for proposed regulations and procedures for review and for final-form regulations and final-omitted regulations and procedures for review; providing for regulations deemed withdrawn; further providing for procedures for subsequent review of disapproved final-form or final-omitted regulations; and providing for concurrent resolution required for economically significant regulations.