Administrative Procedures Act; require agencies to provide notice to Legislature and require Governor's approval if estimated cost of agency rule exceeds a certain amount.

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To: Accountability,
Efficiency, Transparency
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Ford (54th)

HOUSE BILL NO. 16

AN ACT TO AMEND SECTION 25-43-3.103, MISSISSIPPI CODE OF 1
1972, TO REQUIRE THAT THE NOTICE OF A STATE AGENCY'S PROPOSED RULE 2
ADOPTION INCLUDE HOW MUCH THE PROPOSED RULE WILL COST THE STATE; 3
TO REQUIRE THAT A COPY OF THE NOTICE OF PROPOSED RULE ADOPTION BE 4
PROVIDED TO EACH MEMBER OF THE MISSISSIPPI LEGISLATURE IF THE 5
ESTIMATED COST OF THE PROPOSED RULE IS $200,000.00 OR MORE PER 6
YEAR OR $600,000.00 OR MORE OVER THREE YEARS; TO AMEND SECTION 7
25-43-3.105, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT A SUMMARY 8
OF THE ECONOMIC IMPACT STATEMENT AND THE PROPOSED RULE SHALL BE 9
FORWARDED TO EACH MEMBER OF THE LEGISLATURE AT NO COST TO THE 10
MEMBER IF THE ESTIMATED COST OF THE PROPOSED RULE IS $200,000.00 11
OR MORE PER YEAR OR $600,000.00 OR MORE OVER THREE YEARS; TO 12
AUTHORIZE THE LEGISLATURE TO REVIEW, MAKE OBJECTIONS TO, AND MAKE 13
WRITTEN RECOMMENDATIONS FOR CHANGES TO A PROPOSED RULE; TO PROVIDE 14
THAT SUCH A RULE WILL NOT BECOME EFFECTIVE UNLESS APPROVED BY THE 15
GOVERNOR; TO AMEND SECTION 25-43-3.106, MISSISSIPPI CODE OF 1972, 16
TO REQUIRE THE AGENCY TO CONSIDER ANY OBJECTION OR RECOMMENDATION 17
MADE BY THE LEGISLATURE BEFORE A PROPOSED RULE IS ADOPTED; TO 18
AMEND SECTION 25-43-3.110, MISSISSIPPI CODE OF 1972, TO REQUIRE 19
THE AGENCY TO INCLUDE THE GOVERNOR'S APPROVAL OR OBJECTION TO THE 20
RULE IN THE RULE-MAKING RECORD; TO AMEND SECTION 25-43-3.111, 21
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A RULE IS INVALID UNLESS 22
ADOPTED IN SUBSTANTIAL COMPLIANCE WITH THE ADMINISTRATIVE 23
PROCEDURES ACT AS IT EXISTED ON THE DATE THAT THE RULE WAS 24
ADOPTED; TO AMEND SECTIONS 25-43-3.112 AND 25-43-3.113, 25
MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS 26
ACT; AND FOR RELATED PURPOSES. 27
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 28
SECTION 1. Section 25-43-3.103, Mississippi Code of 1972, is 29
amended as follows: 30
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25-43-3.103. (1) At least twenty-five (25) days before the 31
adoption of a rule an agency shall cause notice of its 32
contemplated action to be properly filed with the Secretary of 33
State for publication in the administrative bulletin. The notice 34
of proposed rule adoption must include: 35
(a) A short explanation of the purpose of the proposed 36
rule and the agency's reasons for proposing the rule; 37
(b) The specific legal authority authorizing the 38
promulgation of rules; 39
(c) A reference to all rules repealed, amended or 40
suspended by the proposed rule; 41
(d) Subject to Section 25-43-2.101(5), the text of the 42
proposed rule; 43
(e) Where, when and how persons may present their views 44
on the proposed rule; * * * 45
(f) Where, when and how persons may demand an oral 46
proceeding on the proposed rule if the notice does not already 47
provide for one * * *; 48
(g) How much the proposed rule will cost the state. 49
(2) Within three (3) days after its proper filing with the 50
Secretary of State for publication in the administrative bulletin, 51
the agency shall cause a copy of the notice of proposed rule 52
adoption to be provided to each member of the Mississippi 53
Legislature if the estimated cost of the proposed rule is Two 54
Hundred Thousand Dollars ($200,000.00) or more per year or Six 55
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Hundred Thousand Dollars ($600,000.00) or more over three (3) 56
years, and to each person who has made a timely request to the 57
agency to be placed on the mailing list maintained by the agency 58
of persons who have requested notices of proposed rule adoptions. 59
An agency may mail the copy to the person and may charge the 60
person a reasonable fee for such service, which fee may be in 61
excess of the actual cost of providing the person with a mailed 62
copy; however, no such fee shall be charged to members of the 63
Mississippi Legislature. Alternatively, the agency may provide 64
the copy via the Internet or by transmitting it to the person by 65
electronic means, including, but not limited to, facsimile 66
transfer or e-mail at no charge to the person, if the person 67
consents to this form of delivery. 68
SECTION 2. Section 25-43-3.105, Mississippi Code of 1972, is 69
amended as follows: 70
25-43-3.105. (1) Prior to giving the notice required in 71
Section 25-43-3.103, each agency proposing the adoption of a rule 72
or significant amendment of an existing rule imposing a duty, 73
responsibility or requirement on any person shall consider the 74
economic impact the rule will have on the citizens of our state 75
and the benefits the rule will cause to accrue to those citizens. 76
For purposes of this section, a "significant amendment" means any 77
amendment to a rule for which the total aggregate cost to all 78
persons required to comply with that rule exceeds One Hundred 79
Thousand Dollars ($100,000.00). 80
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(2) Each agency shall prepare a written report providing an 81
economic impact statement for the adoption of a rule or 82
significant amendment to an existing rule imposing a duty, 83
responsibility or requirement on any person, except as provided in 84
subsection (7) of this section. The economic impact statement 85
shall include the following: 86
(a) A description of the need for and the benefits 87
which will likely accrue as the result of the proposed action; 88
(b) An estimate of the cost to the agency, and to any 89
other state or local government entities, of implementing and 90
enforcing the proposed action, including the estimated amount of 91
paperwork, and any anticipated effect on state or local revenues; 92
(c) An estimate of the cost or economic benefit to all 93
persons directly affected by the proposed action; 94
(d) An analysis of the impact of the proposed rule on 95
small business; 96
(e) A comparison of the costs and benefits of the 97
proposed rule to the probable costs and benefits of not adopting 98
the proposed rule or significantly amending an existing rule; 99
(f) A determination of whether less costly methods or 100
less intrusive methods exist for achieving the purpose of the 101
proposed rule where reasonable alternative methods exist which are 102
not precluded by law; 103
(g) A description of reasonable alternative methods, 104
where applicable, for achieving the purpose of the proposed action 105
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which were considered by the agency and a statement of reasons for 106
rejecting those alternatives in favor of the proposed rule; and 107
(h) A detailed statement of the data and methodology 108
used in making estimates required by this subsection. 109
(3) No rule or regulation shall be declared invalid based on 110
a challenge to the economic impact statement for the rule unless 111
the issue is raised in the agency proceeding. No person shall 112
have standing to challenge a rule, based upon the economic impact 113
statement or lack thereof, unless that person provided the agency 114
with information sufficient to make the agency aware of specific 115
concerns regarding the statement in an oral proceeding or in 116
written comments regarding the rule. The grounds for invalidation 117
of an agency action, based upon the economic impact statement, are 118
limited to the agency's failure to adhere to the procedure for 119
preparation of the economic impact statement as provided in this 120
section, or the agency's failure to consider information submitted 121
to the agency regarding specific concerns about the statement, if 122
that failure substantially impairs the fairness of the rule-making 123
proceeding. 124
(4) A concise summary of the economic impact statement must 125
be properly filed with the Secretary of State for publication in 126
the administrative bulletin and the period during which persons 127
may make written submissions on the proposed rule shall not expire 128
until at least twenty (20) days after the date of such proper 129
filing. 130
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(5) The properly filed summary of the economic impact 131
statement must also indicate where persons may obtain copies of 132
the full text of the economic impact statement and where, when and 133
how persons may present their views on the proposed rule and 134
demand an oral proceeding on the proposed rule if one is not 135
already provided. 136
(6) If the agency has made a good-faith effort to comply 137
with the requirements of subsections (1) and (2) of this section, 138
the rule may not be invalidated on the ground that the contents of 139
the economic impact statement are insufficient or inaccurate. 140
(7) This section does not apply to the adoption of: 141
(a) Any rule which is required by the federal 142
government pursuant to a state/federal program delegation 143
agreement or contract; 144
(b) Any rule which is expressly required by state law; 145
and 146
(c) A temporary rule adopted pursuant to Section 147
25-43-3.108. 148
(8) (a) As used in this subsection (8), the term "proposed 149
rule" means a new rule proposed by the agency or a significant 150
amendment to an existing rule. 151
(b) If the estimated cost of a proposed rule is Two 152
Hundred Thousand Dollars ($200,000.00) or more per year or Six 153
Hundred Thousand Dollars ($600,000.00) or more over three (3) 154
years, a concise summary of the economic impact statement and the 155
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proposed rule shall be forwarded to each member of the Mississippi 156
Legislature at no cost to the member. 157
(c) Upon receipt of the summary, the chairman of a 158
committee in the House of Representatives and/or the Senate that 159
handles legislation relevant to the subject matter of the proposed 160
rule may object to the proposed rule or any part thereof within 161
seven (7) days. If the chairman objects to the proposed rule, he 162
or she shall provide the reasons for the objection in writing to 163
the agency. The chairman may make written recommendations to the 164
agency for changes to be made to a proposed rule. 165
(d) The chairman may hold committee meetings to review 166
a proposed rule. If the chairman decides to hold a meeting, he or 167
she shall notify the agency in writing and shall set the date and 168
time for the meeting in the notice to the agency. After the 169
committee meeting, the committee may object to the proposed rule 170
or any part thereof. If the committee objects to the proposed 171
rule, the committee shall provide the reasons for the objection in 172
writing to the agency. The committee may make written 173
recommendations to the agency for changes to be made to a proposed 174
rule. 175
(e) The period during which the chairmen and their 176
committees may review, object to, and make recommendations for 177
changes to the proposed rule shall expire thirty (30) days after 178
the date the summary of the economic impact statement and the 179
proposed rule is received. 180
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(f) Nothing in this subsection (8) shall be construed 181
as giving the chairmen or the committees any authority to veto, 182
nullify or revise a proposed rule. The authority of the chairmen 183
or the committees under this subsection shall be limited to 184
reviewing, making objections to, and making recommendations for 185
changes to the proposed rule. 186
(9) If a proposed rule or significant amendment to an 187
existing rule is estimated to cost Two Hundred Thousand Dollars 188
($200,000.00) or more per year or Six Hundred Thousand Dollars 189
($600,000.00) or more over three (3) years, the rule shall not 190
become effective unless approved by the Governor or his or her 191
designee, or as otherwise provided in Section 25-43-3.113(3). The 192
Governor or his or her designee shall consider any objection or 193
recommendation made by a legislative chairman or committee after 194
review as provided in subsection (8) of this section before 195
approving or objecting to the rule. 196
SECTION 3. Section 25-43-3.106, Mississippi Code of 1972, is 197
amended as follows: 198
25-43-3.106. (1) An agency may not adopt a rule until the 199
period for making written submissions * * *, oral presentations, 200
and review by the Legislature has expired. 201
(2) Following the proper filing with the Secretary of State 202
of the notice of proposed rule adoption, an agency shall adopt a 203
rule pursuant to the rule-making proceeding or terminate the 204
proceeding by proper filing with the Secretary of State of a 205
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notice to that effect for publication in the administrative 206
bulletin. 207
(3) Before the adoption of a rule, an agency shall consider 208
the written submissions, oral submissions or any memorandum 209
summarizing oral submissions, * * * any economic impact statement, 210
provided for by this Article III, and any objection or 211
recommendation made by a legislative chairman or committee after 212
review as provided in Section 25-43-3.105(8). 213
(4) Within the scope of its delegated authority, an agency 214
may use its own experience, technical competence, specialized 215
knowledge and judgment in the adoption of a rule. 216
SECTION 4. Section 25-43-3.110, Mississippi Code of 1972, is 217
amended as follows: 218
25-43-3.110. (1) An agency shall maintain an official 219
rule-making record for each rule it (a) proposes or (b) adopts. 220
The agency has the exclusive authority to prepare and exclusive 221
authority to certify the record or any part thereof, including, 222
but not limited to, any transcript of the proceedings, and the 223
agency's certificate shall be accepted by the court and by any 224
other agency. The record must be available for public inspection. 225
(2) The agency rule-making record must contain: 226
(a) Copies of all notices of proposed rule-making or 227
oral proceedings or other publications in the administrative 228
bulletin with respect to the rule or the proceeding upon which the 229
rule is based; 230
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(b) Copies of any portions of the agency's public 231
rule-making docket containing entries relating to the rule or the 232
proceeding upon which the rule is based; 233
(c) All written requests, submissions and comments 234
received by the agency and all other written materials considered 235
by the agency in connection with the formulation, proposal or 236
adoption of the rule or the proceeding upon which the rule is 237
based; 238
(d) Any official transcript of oral presentations made 239
in the proceeding upon which the rule is based or, if not 240
transcribed, any tape recording or stenographic record of those 241
presentations, and any memorandum prepared by a presiding official 242
summarizing the contents of those presentations. The word 243
"transcript" includes a written transcript, a printed transcript, 244
an audible audiotape or videotape that is indexed and annotated so 245
that it is readily accessible and any other means that the agency 246
may have by rule provided for the reliable and accessible 247
preservation of the proceeding; 248
(e) A copy of any economic impact statement prepared 249
for the proceeding upon which the rule is based; * * * 250
(f) A copy of the rule and related information set out 251
in Section 25-43-3.109 as filed in the Office of the Secretary of 252
State * * *; and 253
(g) If the estimated cost of the rule is Two Hundred 254
Thousand Dollars ($200,000.00) or more per year or Six Hundred 255
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Thousand Dollars ($600,000.00) or more over three (3) years, the 256
approval of the Governor or his or her designee, unless the rule 257
became effective as otherwise provided in Section 25-43-3.113(3), 258
or if the Governor or his or her designee objected to the rule 259
upon first application, the reasons for the objection. 260
(3) The agency shall have authority to engage such persons 261
and acquire such equipment as may be reasonably necessary to 262
record and preserve in any technically and practicably feasible 263
manner all matters and all proceedings had at any rule-making 264
proceeding. 265
(4) Upon judicial review, the record required by this 266
section constitutes the official agency rule-making record with 267
respect to a rule. Except as otherwise required by a provision of 268
law, the agency rule-making record need not constitute the 269
exclusive basis for agency action on that rule or for judicial 270
review thereof. 271
SECTION 5. Section 25-43-3.111, Mississippi Code of 1972, is 272
amended as follows: 273
25-43-3.111. (1) A rule adopted after July 1, 2005, is 274
invalid unless adopted in substantial compliance with the 275
provisions of Sections 25-43-3.102 through 25-43-3.110 as those 276
sections existed on the date that the rule was adopted. 277
Inadvertent failure to mail a notice of proposed rule adoption to 278
any person as required by Section 25-43-3.103(2) does not 279
invalidate a rule. 280
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(2) An action to contest the validity of a rule on the 281
grounds of its noncompliance with any provision of Sections 282
25-43-3.102 through 25-43-3.110 must be commenced within one (1) 283
year after the effective date of the rule. 284
SECTION 6. Section 25-43-3.112, Mississippi Code of 1972, is 285
amended as follows: 286
25-43-3.112. An agency shall file in the Office of the 287
Secretary of State each rule it adopts and all rules existing on 288
July 1, 2005, that have not previously been filed. The filing 289
must be done as soon after adoption of the rule as is practicable. 290
At the time of filing, each rule adopted after July 1, 2005, must 291
have included in or attached to it the material set out in Section 292
25-43-3.109. The Secretary of State shall affix to each rule and 293
statement a certification of the date of filing and keep a 294
permanent register open to public inspection of all filed rules 295
and attached material. In filing a rule, each agency shall use a 296
standard format prescribed by the Secretary of State. The 297
Secretary of State shall file a copy of each rule filed with him 298
or her, along with his or her statement and certification, with 299
the Office of the Governor if the estimated cost of the rule is 300
Two Hundred Thousand Dollars ($200,000.00) or more per year or Six 301
Hundred Thousand Dollars ($600,000.00) or more over three (3) 302
years. 303
SECTION 7. Section 25-43-3.113, Mississippi Code of 1972, is 304
amended as follows: 305
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25-43-3.113. (1) Except to the extent subsection (2) * * *, 306
(3) or (4) of this section provides otherwise, each rule adopted 307
after July 1, 2005, becomes effective thirty (30) days after its 308
proper filing in the Office of the Secretary of State. 309
(2) (a) A rule becomes effective on a date later than that 310
established by subsection (1) of this section if a later date is 311
required by another statute or specified in the rule. 312
(b) A rule may become effective immediately upon its 313
filing or on any subsequent date earlier than that established by 314
subsection (1) of this section if the agency establishes such an 315
effective date and finds that: 316
(i) It is required by Constitution, statute or 317
court order; 318
(ii) The rule only confers a benefit or removes a 319
restriction on the public or some segment thereof; 320
(iii) The rule only delays the effective date of 321
another rule that is not yet effective; or 322
(iv) The earlier effective date is necessary 323
because of imminent peril to the public health, safety or welfare. 324
(c) The finding and a brief statement of the reasons 325
therefor required by paragraph (b) of this subsection must be made 326
a part of the rule. In any action contesting the effective date 327
of a rule made effective under paragraph (b) of this subsection, 328
the burden is on the agency to justify its finding. 329
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(d) A temporary rule may become effective immediately 330
upon its filing or on any subsequent date earlier than that 331
established by subsection (1) of this section. 332
(e) Each agency shall make a reasonable effort to make 333
known to persons who may be affected by it a rule made effective 334
before any date established by subsection (1) of this section. 335
(3) Except as otherwise provided in subsection (2) of this 336
section, an agency rule or significant amendment to an existing 337
rule that is estimated to cost Two Hundred Thousand Dollars 338
($200,000.00) or more per year or Six Hundred Thousand Dollars 339
($600,000.00) or more over three (3) years shall not become 340
effective unless approved by the Governor or his or her designee; 341
however, if the Governor or his or her designee does not approve 342
or object to the rule within thirty (30) days of receiving a copy 343
of the rule filed with the Secretary of State, the rule shall 344
become effective without the Governor or his or her designee's 345
approval. If the Governor or his or her designee objects to the 346
rule within thirty (30) days of receiving a copy of the rule filed 347
with the Secretary of State, the rule shall not take effect. The 348
Governor or his or her designee shall provide the reasons for the 349
objection in writing to the agency. 350
( * * *4) This section does not relieve an agency from 351
compliance with any provision of law requiring that some or all of 352
its rules be approved by other designated officials or bodies 353
before they become effective. 354
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ST: Administrative Procedures Act; require
agencies to provide notice to Legislature and
require Governor's approval if estimated cost of
agency rule exceeds a certain amount.
SECTION 8. This act shall take effect and be in force from 355
and after July 1, 2026. 356