NC H587

Requires agencies to prepare cost-benefit analyses for "significant rule changes" (rules with $3 million or more aggregate financial impact in 12 months) and grants the Office of State Budget and Management authority to reject rules where projected costs exceed benefits.

Establishes mandatory periodic review of all existing agency rules within six months of enactment and annual review of newly adopted rules to minimize economic impact, with the Office of State Budget and Management able to direct amendment or rescission of rules.

Requires agencies to prepare small business regulatory flexibility analyses for proposed rules with adverse impact on small businesses and consider five specific methods to reduce regulatory burden on small businesses.

Prohibits agencies from adopting rules that exceed federal standards or requirements unless expressly required by an act of the General Assembly.

Creates a 12-member Legislative Study Commission on Occupational Licensing to identify outdated licensing laws, study regulatory alternatives, and examine barriers to entry in regulated occupations, with final report due to 2012 General Assembly session and $50,000 appropriated for fiscal year 2011-2012.