In a major victory for regulatory accountability, Utah has officially enacted HB 474, a transformative piece of legislation designed to curb agency overreach and protect individuals from unnecessary regulatory burdens. Sponsored by Representative Ryan Wilcox and co-sponsored by Senator Dan McCay, this new law ensures that agencies remain within their legislatively authorized scope.
Much like the federal “Regulations from the Executive in Need of Scrutiny (REINS) Act,” HB 474 reins in the unchecked expansion of agency authority and keeps it in check from future expansion. Unlike most states, Utah is one of the few that tend to do the job of regulating through legislation. However, in many instances, Utah businesses have found themselves in the crosshairs of onerous regulations simply due to ambiguity or silence in legislative text, creating confusion, unnecessary compliance costs, and barriers to economic opportunity.
Now, with the passage of HB 474, a new standard has been established for agency rulemaking. Any rule that imposes a fiscal impact to businesses state-wide that exceeds $2 million over a five-year period is now subject to legislative review before it may take effect. This means, instead of putting the burden on businesses to defend themselves from overregulation, agencies must now demonstrate to the legislature that such rules are necessary before they can take effect. This requirement prevents agencies from enacting regulations that impose significant financial burdens without clear statutory authorization.
The passage of HB 474 is a major step toward fostering a more predictable and business-friendly regulatory environment in Utah. By placing meaningful constraints on agency rulemaking, the state has reaffirmed its commitment to economic freedom and limited government.
