Agency Rulemaking Petition - North Carolina

PETITION FOR RULEMAKING — NORTH CAROLINA

IMPORTANT NOTICE

This template is designed for use under the North Carolina Administrative Procedure Act (APA), codified at N.C.G.S. Chapter 150B. Under N.C.G.S. § 150B-20, any person may petition an agency to adopt a rule by submitting a written rulemaking petition.

Critical Deadlines:

• Non-board/commission agencies: Must grant or deny the petition within 30 days
• Boards and commissions: Must grant or deny the petition within 120 days
• The agency must send the proposed text and statement of effect to the Office of Administrative Hearings (OAH) within 3 business days of receipt

Denial of a rulemaking petition is a final agency decision subject to judicial review under Article 4 of Chapter 150B.

This document must be reviewed by a licensed North Carolina attorney before filing.

SECTION 1: COVER LETTER

[__/__/____]

[________________________________]
[Chair/Director/Secretary/Agency Head Title]
[________________________________]
[Agency Name]
[________________________________]
[Agency Street Address]
[________________________________]
[City], North Carolina [____]

Via: ☐ Hand Delivery ☐ Certified Mail, Return Receipt Requested ☐ Electronic Submission (if accepted per agency rules)

Re: Rulemaking Petition Under N.C.G.S. § 150B-20

Dear [________________________________]:

On behalf of [________________________________] ("Petitioner(s)"), I respectfully submit the enclosed Rulemaking Petition requesting that [________________________________] ("Agency") initiate rulemaking proceedings to:

☐ Adopt a new rule concerning [________________________________]
☐ Amend existing rule [____] NCAC [________________________________]
☐ Repeal existing rule [____] NCAC [________________________________]

This petition is filed pursuant to N.C.G.S. § 150B-20, which provides that any person may petition an agency to adopt a rule. The petition includes the proposed text of the requested rule change and a statement of its effect, as required by statute.

Pursuant to § 150B-20(a1), the Agency is required to send the proposed text and statement of effect to the Office of Administrative Hearings within 3 business days of receipt. The Agency must grant or deny this petition within:

☐ 30 days (if the Agency is not a board or commission)
☐ 120 days (if the Agency is a board or commission)

Respectfully submitted,

[________________________________]
[Printed Name]
[________________________________]
[NC State Bar No., if applicable]
[________________________________]
[Firm/Organization Name]
[________________________________]
[Street Address]
[________________________________]
[City], North Carolina [____]
[________________________________]
[Telephone]
[________________________________]
[Email Address]

SECTION 2: FORMAL RULEMAKING PETITION

BEFORE THE [________________________________]

STATE OF NORTH CAROLINA

RULEMAKING PETITION
Filed Pursuant to N.C.G.S. § 150B-20

Petition No.: [________________________________] (Agency to assign)
Date Filed: [__/__/____]

2.1 Petitioner Information

2.2 Nature of Petitioner's Interest

☐ Individual directly affected by the existing or proposed rule
☐ Business or entity regulated by the agency
☐ Trade association or professional organization
☐ Public interest organization
☐ Local government entity
☐ Elected official
☐ Other person (describe): [________________________________]

Describe the specific nature of Petitioner's interest:

[________________________________]
[________________________________]
[________________________________]

2.3 Agency Identification

Note: The agency type determines the response deadline (30 days for executive agencies; 120 days for boards and commissions).

2.4 Action Requested

Petitioner requests that the Agency:

☐ Adopt a new rule under [____] NCAC [____]
☐ Amend existing rule [____] NCAC [________________________________]
☐ Repeal existing rule [____] NCAC [________________________________]

Brief description of the requested action:

[________________________________]
[________________________________]
[________________________________]

SECTION 3: STATEMENT OF NEED

3.1 Current Problem or Deficiency

Describe the current regulatory gap, problem, or outdated provision:

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

3.2 Persons or Entities Affected

Identify who is adversely affected:

[________________________________]
[________________________________]
[________________________________]

3.3 Scope and Severity

Provide data, statistics, or specific examples:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

3.4 Inadequacy of Current Rules

Explain why existing rules are insufficient:

[________________________________]
[________________________________]
[________________________________]

3.5 Urgency

Describe any time-sensitive factors:

[________________________________]
[________________________________]

SECTION 4: PROPOSED RULE LANGUAGE

4.1 Proposed Text of Requested Rule Change

(Required by N.C.G.S. § 150B-20(a). If requesting creation or amendment of a rule, the petitioner must submit the proposed text of the requested rule change.)

Rule Reference: [____] NCAC [____] [________________________________]

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

4.2 Statement of the Effect of the Requested Rule Change

(Required by N.C.G.S. § 150B-20(a). The petitioner must submit a statement of the effect of the requested rule change.)

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

4.3 Written Comments

(N.C.G.S. § 150B-20(a) provides that a person may submit written comments with a rulemaking petition.)

[________________________________]
[________________________________]
[________________________________]
[________________________________]

4.4 Explanation of Proposed Text

4.5 Alternative Approaches Considered

[________________________________]
[________________________________]
[________________________________]

SECTION 5: LEGAL AUTHORITY ANALYSIS

5.1 Statutory Authority for Agency Rulemaking

Identify the specific statutory provisions authorizing the Agency to adopt the proposed rule:

5.2 North Carolina APA Rulemaking Framework

• N.C.G.S. § 150B-20 — Petitioning an agency to adopt a rule
• N.C.G.S. § 150B-19.1 — Requirements for agencies in the rulemaking process (necessity, cost-benefit, etc.)
• N.C.G.S. § 150B-21.1 — Procedure for adopting a permanent rule (notice and comment)
• N.C.G.S. § 150B-21.2 — Publication and notice requirements
• N.C.G.S. § 150B-21.3 — Rules Review Commission review
• N.C.G.S. § 150B-21.9 — Standards for review by the Rules Review Commission
• N.C.G.S. § 150B-43 et seq. — Judicial review (Article 4)

5.3 Rules Review Commission (RRC)

North Carolina's Rules Review Commission reviews all permanent rules before they become effective. Under N.C.G.S. § 150B-21.9, the RRC reviews rules for:

• Whether the agency has statutory authority to adopt the rule
• Whether the rule is clear and unambiguous
• Whether the rule is reasonably necessary to implement or interpret a statute
• Whether the rule was adopted in accordance with APA procedures

5.4 N.C.G.S. § 150B-19.1 Requirements

When adopting rules, agencies must comply with § 150B-19.1, which requires:

☐ The rule is within the agency's statutory authority
☐ The rule is clear and unambiguous
☐ The rule is reasonably necessary
☐ The rule does not impose costs on the private sector exceeding $500,000 in aggregate unless the agency makes certain findings
☐ The agency considered less restrictive alternatives

5.5 Federal Law Considerations

☐ No federal law considerations apply
☐ The proposed rule is consistent with applicable federal law:

[________________________________]
[________________________________]

5.6 Consistency with Existing NCAC Provisions

[________________________________]
[________________________________]
[________________________________]

SECTION 6: IMPACT ANALYSIS

6.1 Economic Impact

6.2 Fiscal Impact Analysis

Under N.C.G.S. § 150B-21.4, agencies must prepare a fiscal note for proposed rules that affect:

• State funds
• Local government funds
• Substantial economic impact (exceeding $1 million in any 12-month period)

Provide information to assist the agency's fiscal analysis:

Impact on State funds:
[________________________________]
[________________________________]

Impact on local government funds:
[________________________________]
[________________________________]

Substantial economic impact analysis:
[________________________________]
[________________________________]

6.3 Small Business Impact

Describe the impact on North Carolina small businesses:

[________________________________]
[________________________________]
[________________________________]

6.4 Environmental Impact

☐ No environmental impact anticipated
☐ Environmental impact analysis:

[________________________________]
[________________________________]

6.5 Cost Threshold Consideration

Under § 150B-19.1(f), a rule that imposes costs on the private sector exceeding $500,000 in aggregate requires additional agency findings. Address whether the proposed rule exceeds this threshold:

☐ The proposed rule is not expected to exceed the $500,000 threshold
☐ The proposed rule may exceed the $500,000 threshold; justification:

[________________________________]
[________________________________]

SECTION 7: PUBLIC INTEREST ARGUMENTS

7.1 Public Health and Safety

[________________________________]
[________________________________]
[________________________________]

7.2 Consumer Protection

[________________________________]
[________________________________]

7.3 Environmental Protection

[________________________________]
[________________________________]

7.4 Economic Development

[________________________________]
[________________________________]

7.5 Equity and Fairness

[________________________________]
[________________________________]

7.6 Government Accountability

[________________________________]
[________________________________]

7.7 Summary of Public Interest Factors

[________________________________]
[________________________________]
[________________________________]

SECTION 8: SUPPORTING EVIDENCE

8.1 Exhibit List

8.2 Types of Evidence Submitted

☐ Factual data and statistical analyses
☐ Technical studies or scientific reports
☐ Economic impact analyses
☐ Fiscal impact data
☐ Expert declarations or affidavits
☐ Stakeholder support letters
☐ Comparative analysis of other states' rules
☐ Federal regulatory comparisons
☐ Legislative history
☐ Agency guidance documents
☐ Court decisions
☐ Other: [________________________________]

8.3 Stakeholder Support

SECTION 9: FILING INSTRUCTIONS

9.1 North Carolina-Specific Filing Requirements

Under N.C.G.S. § 150B-20:

☐ Each agency must establish by rule the procedure for submitting a rulemaking petition — check the agency's specific rules for submission requirements
☐ Submit a written rulemaking petition to the agency
☐ Include the proposed text of the requested rule change (required for creation or amendment)
☐ Include a statement of the effect of the requested rule change (required for creation or amendment)
☐ May include written comments supporting the petition
☐ Retain proof of delivery and date of submission (the deadline runs from the date of submission)

9.2 OAH Notification Requirement

Under § 150B-20(a1), the agency must send the proposed text and statement of effect to the Office of Administrative Hearings within 3 business days of receipt. The petitioner does not need to file separately with OAH, but may wish to confirm that the agency has done so.

9.3 Key North Carolina Rulemaking Entities

9.4 Filing Checklist

☐ Petition is complete and signed
☐ Proposed text of rule change included (required for creation/amendment)
☐ Statement of effect included (required for creation/amendment)
☐ Written comments included (optional)
☐ Agency-specific submission procedures followed
☐ Legal authority citations verified
☐ All exhibits properly labeled and attached
☐ Cover letter addressed to correct agency official
☐ Proof of delivery arranged with date documented
☐ Copy retained for Petitioner's records
☐ Calendar reminder set: 30 days (agency) or 120 days (board/commission)

SECTION 10: AGENCY RESPONSE REQUIREMENTS

10.1 Statutory Timelines

Under N.C.G.S. § 150B-20(b):

10.2 OAH Notification (3-Day Requirement)

Under § 150B-20(a1), within 3 business days of receiving a rulemaking petition, the agency must send to the Office of Administrative Hearings:

• The proposed text of the requested rule change
• The statement of the effect of the requested rule change

10.3 If the Agency Grants the Petition

If the agency grants the rulemaking petition:

• The agency must inform the petitioner of its decision
• The agency must initiate rulemaking proceedings under Article 2A of Chapter 150B
• The formal rulemaking process includes:
  1. Publication of proposed text in the NC Register
  2. Public comment period
  3. Public hearing (if requested)
  4. Rules Review Commission review
  5. Final adoption and effective date

10.4 If the Agency Denies the Petition

If the agency denies the rulemaking petition:

• The agency must send the petitioner a written statement of the reasons for denying the petition
• Denial is a final agency decision subject to judicial review under Article 4

10.5 Deemed Denial (Failure to Act)

Under § 150B-20(b), failure of an agency to grant or deny a rulemaking petition within the applicable time limit is a denial of the rulemaking petition. This deemed denial is also subject to judicial review.

10.6 If the Agency Fails to Respond

If the agency does not respond within the applicable deadline:

• The petition is deemed denied by operation of law
• The petitioner may immediately pursue judicial review under Article 4
• Document the failure to respond for purposes of the judicial review petition

SECTION 11: APPEAL OF DENIAL

11.1 Judicial Review — A Statutory Right

North Carolina provides an explicit statutory right to judicial review of rulemaking petition denials:

N.C.G.S. § 150B-20(c): "Denial of a rule-making petition is a final agency decision and is subject to judicial review under Article 4 of this Chapter."

This is one of the strongest petition-for-rulemaking provisions in the country, as it expressly provides judicial review of petition denials.

11.2 Judicial Review Procedures (Article 4)

• Governing Statute: N.C.G.S. § 150B-43 et seq.
• Venue: Wake County Superior Court (for most agencies) or the superior court of the county where the petitioner resides
• Filing Deadline: Within 30 days after the petitioner is served with a written copy of the agency's final decision (or the deemed denial date)
• Standard of Review: The court reviews whether the agency's decision was:
• In violation of constitutional provisions
• In excess of statutory authority
• Made upon unlawful procedure
• Affected by other error of law
• Unsupported by substantial evidence
• Arbitrary, capricious, or an abuse of discretion

11.3 Alternative Remedies After Denial

☐ Resubmit a revised petition addressing the agency's stated reasons for denial
☐ Request a meeting with the agency head, chair, or board members
☐ File for judicial review in Superior Court under Article 4
☐ Contact the relevant legislative committee for oversight
☐ Contact the Rules Review Commission for guidance
☐ Seek legislative action mandating the regulatory change through the NC General Assembly
☐ Contact the Governor's Office for executive intervention

11.4 Timeline Summary

SECTION 12: DOCUMENT CHECKLIST

Pre-Filing Checklist

☐ Researched the agency's specific rulemaking petition procedures (each agency must establish procedures by rule under § 150B-20(a))
☐ Confirmed the agency has statutory authority for the proposed rule
☐ Verified no pending rulemaking addresses the same issue
☐ Checked the NC Register for related rulemaking activity
☐ Reviewed NCAC formatting requirements
☐ Considered § 150B-19.1 requirements (necessity, cost-benefit, least restrictive means)
☐ Considered the $500,000 cost threshold under § 150B-19.1(f)
☐ Determined whether the agency is a board/commission (120-day deadline) or not (30-day deadline)
☐ Consulted with affected stakeholders
☐ Prepared economic and fiscal impact data
☐ Had the petition reviewed by qualified North Carolina counsel

Petition Package Contents

☐ Cover letter
☐ Formal Rulemaking Petition (signed and dated)
☐ Statement of Need
☐ Proposed text of requested rule change
☐ Statement of effect of requested rule change
☐ Written comments (optional)
☐ Legal authority analysis
☐ Impact analysis
☐ Public interest arguments
☐ Supporting exhibits
☐ Stakeholder support letters (if any)

SECTION 13: PRACTICE TIPS FOR NORTH CAROLINA PRACTITIONERS

Strategic Considerations

1. Strongest Petition Statute in the Nation: North Carolina's § 150B-20 is one of the most petitioner-friendly rulemaking petition statutes. It provides: (a) specific deadlines (30 or 120 days), (b) automatic deemed denial upon failure to act, and (c) express judicial review of denials as final agency decisions.

2. 30-Day Deadline for Executive Agencies: Non-board/commission agencies have only 30 days to respond — one of the shortest deadlines nationally. This creates significant pressure on agencies to act promptly.

3. OAH 3-Day Notification: The agency must send the proposed text and statement of effect to OAH within 3 business days. Follow up to confirm the agency has complied, as OAH publication creates a public record of the petition.

4. Agency-Specific Procedures: Each agency must establish its own procedures for receiving rulemaking petitions (§ 150B-20(a)). Contact the agency's rulemaking coordinator to confirm submission requirements before filing.

5. Rules Review Commission: The RRC reviews all permanent rules for authority, necessity, clarity, and procedure. Understanding RRC standards helps draft proposed rule text that will pass review.

6. $500,000 Cost Threshold: Under § 150B-19.1(f), rules imposing costs exceeding $500,000 require additional findings. If your proposed rule could exceed this threshold, provide thorough cost-benefit justification.

7. Fiscal Note Requirement: If the proposed rule affects state or local funds or has a substantial economic impact (over $1 million in 12 months), the agency must prepare a fiscal note. Provide data to assist this analysis.

8. Deemed Denial Leverage: The automatic deemed denial upon expiration of the deadline, combined with judicial review rights, creates strong leverage. If the agency is unresponsive, the petitioner can proceed directly to court.

9. NC Register Monitoring: Monitor the NC Register (published by OAH) for related rulemaking activity at https://www.oah.nc.gov.

10. Legislative Oversight: The NC General Assembly exercises significant oversight over rulemaking and can bar proposed rules. If the agency is unresponsive, legislative engagement may be effective.

Common Grounds for Denial

• Lack of statutory authority for the proposed rule
• The proposed rule is not reasonably necessary
• The proposed rule fails the § 150B-19.1 requirements
• The proposed rule exceeds the $500,000 cost threshold without justification
• The proposed rule conflicts with existing law
• The agency is already addressing the issue
• Insufficient evidence of need
• Less restrictive alternatives exist

Strengthening the Petition

• Provide thorough proposed rule text that meets RRC standards (clear, unambiguous, necessary)
• Include a detailed statement of effect
• Address § 150B-19.1 requirements proactively
• Provide fiscal and economic impact data
• Demonstrate broad stakeholder support
• Show that less restrictive alternatives are inadequate

SECTION 14: VERIFICATION AND SIGNATURE

I, [________________________________], declare under penalty of perjury that the facts stated in this petition are true and correct to the best of my knowledge and belief.

Signature: _______________________________________________

Printed Name: [________________________________]

Title: [________________________________]

Organization: [________________________________]

Date: [__/__/____]

Address: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

SECTION 15: SOURCES AND REFERENCES

North Carolina Statutory Authorities

• N.C.G.S. § 150B-20 — Petitioning an Agency to Adopt a Rule
• N.C.G.S. § 150B-19.1 — Requirements for Agencies in the Rulemaking Process
• N.C.G.S. § 150B-21.1 — Procedure for Adopting a Permanent Rule
• N.C.G.S. § 150B-21.2 — Publication; Notice
• N.C.G.S. § 150B-21.3 — Review by Rules Review Commission
• N.C.G.S. § 150B-21.4 — Fiscal Notes on Rules
• N.C.G.S. § 150B-21.9 — Standards and Timetable for Review by RRC
• N.C.G.S. § 150B-43 — Right to Judicial Review (Article 4)
• N.C.G.S. § 150B-51 — Scope of Judicial Review

North Carolina Administrative Resources

• Office of Administrative Hearings (OAH): https://www.oah.nc.gov
• NC Register: Published by OAH
• North Carolina Administrative Code (NCAC): https://www.oah.nc.gov/rules-division/north-carolina-administrative-code
• Rules Review Commission: https://www.oah.nc.gov/rules-division/rules-review-commission
• NC General Assembly: https://www.ncleg.gov

Additional Resources

• North Carolina Attorney General's Office — Advisory opinions on agency rulemaking authority
• North Carolina Bar Association — Administrative law section
• North Carolina Chapter 150B (full text): https://www.ncleg.gov/Laws/GeneralStatuteSections/Chapter150B

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice and should not be used without review by a qualified North Carolina attorney. Laws and regulations are subject to change; verify all citations before filing.