Section 1. Definitions

As used in this act, the following words shall have the following meanings unless the context clearly requires otherwise:

(a) "Agency" means any department, commission, board, council, authority, or other body of the Commonwealth of Massachusetts, including executive offices, that has the authority to promulgate regulations.

(b) "Rule" means any regulation, standard, statement of policy, or other form of agency action that has the force and effect of law.

(c) "Legislature" means the General Court of the Commonwealth of Massachusetts, consisting of the Senate and the House of Representatives.

(d) "Major Rule" means a rule proposed by an agency which is likely to have an adverse impact on economic growth, private sector job creation or employment, or have a direct and significant adverse impact on businesses, including small businesses. A major rule is one that has an estimated economic impact of more than $1 million over five years, adjusted annually for inflation.

Section 2. Legislative Review of Major Rules

(a) Economic Impact Statement. Before proposing a major rule, an agency shall prepare an economic impact statement (EIS) that includes:

(1) An estimate of the economic impact of the rule on the state economy, job creation, and business costs, including small businesses.

(2) An analysis of alternative regulatory approaches and their associated costs.

(b) Legislative Ratification Required. No major rule shall be effective unless ratified by both branches of the Legislature. The agency shall submit the proposed rule and the EIS to the Clerk of the Senate and the Clerk of the House of Representatives for consideration by the legislature

(c) Legislative Process.

(1) The Legislature shall have the authority to review, approve, or reject the proposed major rule.

(2) Approval shall be by a concurrent resolution of both the Senate and the House, which must be passed within 90 days of the rule's submission or the rule shall be deemed disapproved.

(3) If the Legislature does not act within this period, the rule is considered disapproved.

(d) Emergency Rules. Rules necessary for the immediate preservation of the public peace, health, safety, or welfare may take effect immediately but must be submitted to the Legislature for ratification within 30 days.

Section 3. Public Participation and Transparency

(a) Agencies must provide opportunities for public comment on proposed major rules, including at least one public hearing.

(b) All economic impact statements, proposed rules, and legislative resolutions shall be made available online and in the State House library for public inspection.

Section 4. Judicial Review

(a) Any person adversely affected by a rule implemented under this act may seek judicial review in accordance with Massachusetts law to challenge the rule's validity on the grounds that it was not properly ratified or that its economic impact was miscalculated.

Section 5. Reporting

(a) Each agency shall annually report to the Legislature on the number of rules proposed, the number of major rules, and the outcomes of legislative ratification for those rules.