Administrative Procedures Act; amend to require agency's notice of proposed rule adoption to include cost to the state.

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

By: Representative Boyd (19th)

HOUSE BILL NO. 644

AN ACT TO AMEND SECTION 25-43-3.103, MISSISSIPPI CODE OF 1
1972, TO PROVIDE THAT THE NOTICE OF AN AGENCY'S PROPOSED RULE 2
ADOPTION SHALL INCLUDE HOW MUCH THE PROPOSED RULE WILL COST THE 3
STATE; TO REQUIRE A COPY OF THE NOTICE OF PROPOSED RULE ADOPTION 4
TO BE PROVIDED TO EACH MEMBER OF THE MISSISSIPPI LEGISLATURE; TO 5
AMEND SECTION 25-43-3.105, MISSISSIPPI CODE OF 1972, TO PROVIDE 6
THAT A COPY OF THE ECONOMIC IMPACT STATEMENT SHALL BE FORWARDED TO 7
EACH MEMBER OF THE MISSISSIPPI LEGISLATURE AT NO COST TO THE 8
MEMBER; TO AMEND SECTION 25-43-3.111, MISSISSIPPI CODE OF 1972, TO 9
PROVIDE THAT A RULE IS INVALID UNLESS ADOPTED IN COMPLIANCE WITH 10
THE ADMINISTRATIVE PROCEDURES ACT AS IT EXISTED ON THE DATE THE 11
RULE WAS ADOPTED; TO BRING FORWARD SECTION 25-43-4.104, 12
MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; 13
AND FOR RELATED PURPOSES. 14
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 15
SECTION 1. Section 25-43-3.103, Mississippi Code of 1972, is 16
amended as follows: 17
25-43-3.103. (1) At least twenty-five (25) days before the 18
adoption of a rule an agency shall cause notice of its 19
contemplated action to be properly filed with the Secretary of 20
State for publication in the administrative bulletin. The notice 21
of proposed rule adoption must include: 22
(a) A short explanation of the purpose of the proposed 23
rule and the agency's reasons for proposing the rule; 24
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(b) The specific legal authority authorizing the 25
promulgation of rules; 26
(c) A reference to all rules repealed, amended or 27
suspended by the proposed rule; 28
(d) Subject to Section 25-43-2.101(5), the text of the 29
proposed rule; 30
(e) Where, when and how persons may present their views 31
on the proposed rule; * * * 32
(f) Where, when and how persons may demand an oral 33
proceeding on the proposed rule if the notice does not already 34
provide for one * * *; 35
(g) How much the proposed rule will cost the state. 36
(2) Within three (3) days after its proper filing with the 37
Secretary of State for publication in the administrative bulletin, 38
the agency shall cause a copy of the notice of proposed rule 39
adoption to be provided to each member of the Mississippi 40
Legislature and to each person who has made a timely request to 41
the agency to be placed on the mailing list maintained by the 42
agency of persons who have requested notices of proposed rule 43
adoptions. An agency may mail the copy to the person and may 44
charge the person a reasonable fee for such service, which fee may 45
be in excess of the actual cost of providing the person with a 46
mailed copy; however, no such fee shall be charged to members of 47
the Mississippi Legislature. Alternatively, the agency may 48
provide the copy via the Internet or by transmitting it to the 49
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person by electronic means, including, but not limited to, 50
facsimile transfer or e-mail at no charge to the person, if the 51
person consents to this form of delivery. 52
SECTION 2. Section 25-43-3.105, Mississippi Code of 1972, is 53
amended as follows: 54
25-43-3.105. (1) Prior to giving the notice required in 55
Section 25-43-3.103, each agency proposing the adoption of a rule 56
or significant amendment of an existing rule imposing a duty, 57
responsibility or requirement on any person shall consider the 58
economic impact the rule will have on the citizens of our state 59
and the benefits the rule will cause to accrue to those citizens. 60
For purposes of this section, a "significant amendment" means any 61
amendment to a rule for which the total aggregate cost to all 62
persons required to comply with that rule exceeds One Hundred 63
Thousand Dollars ($100,000.00). 64
(2) Each agency shall prepare a written report providing an 65
economic impact statement for the adoption of a rule or 66
significant amendment to an existing rule imposing a duty, 67
responsibility or requirement on any person, except as provided in 68
subsection (7) of this section. The economic impact statement 69
shall include the following: 70
(a) A description of the need for and the benefits 71
which will likely accrue as the result of the proposed action; 72
(b) An estimate of the cost to the agency, and to any 73
other state or local government entities, of implementing and 74
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enforcing the proposed action, including the estimated amount of 75
paperwork, and any anticipated effect on state or local revenues; 76
(c) An estimate of the cost or economic benefit to all 77
persons directly affected by the proposed action; 78
(d) An analysis of the impact of the proposed rule on 79
small business; 80
(e) A comparison of the costs and benefits of the 81
proposed rule to the probable costs and benefits of not adopting 82
the proposed rule or significantly amending an existing rule; 83
(f) A determination of whether less costly methods or 84
less intrusive methods exist for achieving the purpose of the 85
proposed rule where reasonable alternative methods exist which are 86
not precluded by law; 87
(g) A description of reasonable alternative methods, 88
where applicable, for achieving the purpose of the proposed action 89
which were considered by the agency and a statement of reasons for 90
rejecting those alternatives in favor of the proposed rule; and 91
(h) A detailed statement of the data and methodology 92
used in making estimates required by this subsection. 93
(3) No rule or regulation shall be declared invalid based on 94
a challenge to the economic impact statement for the rule unless 95
the issue is raised in the agency proceeding. No person shall 96
have standing to challenge a rule, based upon the economic impact 97
statement or lack thereof, unless that person provided the agency 98
with information sufficient to make the agency aware of specific 99
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concerns regarding the statement in an oral proceeding or in 100
written comments regarding the rule. The grounds for invalidation 101
of an agency action, based upon the economic impact statement, are 102
limited to the agency's failure to adhere to the procedure for 103
preparation of the economic impact statement as provided in this 104
section, or the agency's failure to consider information submitted 105
to the agency regarding specific concerns about the statement, if 106
that failure substantially impairs the fairness of the rule-making 107
proceeding. 108
(4) A concise summary of the economic impact statement must 109
be properly filed with the Secretary of State for publication in 110
the administrative bulletin and the period during which persons 111
may make written submissions on the proposed rule shall not expire 112
until at least twenty (20) days after the date of such proper 113
filing. 114
(5) The properly filed summary of the economic impact 115
statement must also indicate where persons may obtain copies of 116
the full text of the economic impact statement and where, when and 117
how persons may present their views on the proposed rule and 118
demand an oral proceeding on the proposed rule if one is not 119
already provided. 120
(6) If the agency has made a good-faith effort to comply 121
with the requirements of subsections (1) and (2) of this section, 122
the rule may not be invalidated on the ground that the contents of 123
the economic impact statement are insufficient or inaccurate. 124
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(7) This section does not apply to the adoption of: 125
(a) Any rule which is required by the federal 126
government pursuant to a state/federal program delegation 127
agreement or contract; 128
(b) Any rule which is expressly required by state law; 129
and 130
(c) A temporary rule adopted pursuant to Section 131
25-43-3.108. 132
(8) A copy of the economic impact statement shall be 133
forwarded to each member of the Mississippi Legislature at no cost 134
to the member. 135
SECTION 3. Section 25-43-3.111, Mississippi Code of 1972, is 136
amended as follows: 137
25-43-3.111. (1) A rule adopted after July 1, 2005, is 138
invalid unless adopted in substantial compliance with the 139
provisions of Sections 25-43-3.102 through 25-43-3.110 as those 140
sections existed on the date that the rule was adopted. 141
Inadvertent failure to mail a notice of proposed rule adoption to 142
any person as required by Section 25-43-3.103(2) does not 143
invalidate a rule. 144
(2) An action to contest the validity of a rule on the 145
grounds of its noncompliance with any provision of Sections 146
25-43-3.102 through 25-43-3.110 must be commenced within one (1) 147
year after the effective date of the rule. 148
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SECTION 4. Section 25-43-4.104, Mississippi Code of 1972, is 149
brought forward as follows: 150
25-43-4.104. (1) Prior to submitting proposed permanent 151
rules for adoption, amendment, revision or revocation pursuant to 152
the Mississippi Administrative Procedures Law, the agency shall 153
comply with Section 25-43-3.105(2)(d) in order to determine 154
whether the proposed rules affect small business by preparing an 155
economic impact statement that includes the following: 156
(a) An identification and estimate of the number of 157
small businesses subject to the proposed regulation; 158
(b) The projected reporting, recordkeeping and other 159
administrative costs required for compliance with the proposed 160
regulation, including the type of professional skills necessary 161
for preparation of the report or record; 162
(c) A statement of the probable effect on impacted 163
small businesses; 164
(d) A description of any less intrusive or less costly 165
alternative methods of achieving the purpose of the proposed 166
regulation, including the following regulatory flexibility 167
analysis: 168
(i) The establishment of less stringent compliance 169
or reporting requirements for small businesses; 170
(ii) The establishment of less stringent schedules 171
or deadlines for compliance or reporting requirements for small 172
businesses; 173
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(iii) The consolidation or simplification of 174
compliance or reporting requirements for small businesses; 175
(iv) The establishment of performance standards 176
for small businesses to replace design or operational standards 177
required in the proposed regulation; and 178
(v) The exemption of some or all small businesses 179
from all or any part of the requirements contained in the proposed 180
regulations. 181
(2) If the economic impact statement reflects that a 182
proposed rule may have an economic effect upon small business, the 183
agency shall submit a copy of the proposed rules and the economic 184
impact statement to the committee for its review and comment 185
pursuant to the review and comment provisions of the Mississippi 186
Administrative Procedures Law. During the committee review 187
process, the director or the director's designee of the 188
promulgating agency shall be available at the request of the 189
committee for comment on the proposed regulation. 190
(3) Within the review and comment period, if the committee 191
determines that the proposed rules may have an economic effect 192
upon small business, the committee may submit to the agency its 193
comments concerning the proposed regulation including its specific 194
recommendations. 195
(4) A small business that is affected or aggrieved by final 196
agency action to enforce a rule or regulation is entitled to 197
review of agency compliance with the requirements of this act. 198
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(5) To ensure that any final rule continues to minimize 199
economic impact on small businesses in a manner consistent with 200
the stated objectives of applicable statutes, each agency shall, 201
during any periodic review required by this chapter, consider the 202
following factors: 203
(a) The continued need for the rule; 204
(b) The nature of complaints or comments received 205
concerning the rule from the public; 206
(c) The complexity of the rule; 207
(d) The extent to which the rule overlaps, duplicates, 208
or conflicts with other federal, state and local governmental law 209
or rules; and 210
(e) The length of time since the rule has been 211
evaluated or the degree to which technology, economic conditions, 212
or other factors have changed in the area affected by the rule. 213
(6) If an agency's economic impact statement reflects that a 214
proposed rule will have no economic impact upon a small business, 215
or if an agency fails to file an economic impact statement and the 216
committee otherwise determines that the agency's proposed rule 217
will have an economic impact, then the committee may file its own 218
economic impact statement for the agency's proposed rule with the 219
Secretary of State and notify the appropriate agency that the 220
economic impact statement was filed. When the committee files its 221
economic impact statement, if an agency has not completed the 222
regulatory process that is required for the applicable proposed 223
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ST: Administrative Procedures Act; amend to
require agency's notice of proposed rule
adoption to include cost to the state.
rule to become final, the committee shall have an additional sixty 224
(60) days from the date of filing its economic impact statement 225
with the Secretary of State to submit its comments concerning the 226
proposed regulation and any specific recommendations to the 227
agency, for its consideration. During the additional sixty (60) 228
days' committee review process, the director of the promulgating 229
agency, or his or her designee, shall be available at the request 230
of the committee to comment on the proposed regulation. 231
SECTION 5. This act shall take effect and be in force from 232
and after July 1, 2026. 233