For years, Texas has rightfully earned its reputation as one of the premier states for launching and expanding businesses. Yet recent data reveals a persistent challenge in the weight of accumulated regulations. Overly burdensome rules and outdated processes can stifle the very entrepreneurial spirit that makes Texas so dynamic.
That’s why the passage of Senate Bill 14, the Regulatory Reform and Efficiency Act, is such a significant victory. This crucial legislation—now law thanks to the dedication of the Coalition for Regulatory Efficiency and Reform, legislative leadership, Lieutenant Governor Dan Patrick, and Governor Abbott—directly addresses these challenges and reinforces the principles of limited government and economic liberty that are central to Texas. The Goldwater Institute was proud to join the coalition and advocate for this important legislation.
What Does SB 14 Do?
SB 14 tackles regulatory bloat by establishing the Texas Regulatory Efficiency Office to actively work to identify and eliminate unnecessary or ineffective regulations, streamline existing rules, and ensure greater transparency in the regulatory process. It also reforms the Texas Administrative Procedure Act to ensure that regulations are written clearly and that agencies fully consider their impact on local employment and government growth.
Notably, SB 14 also addressed judicial deference to administrative agency interpretations of their own laws and regulations. Drawing on the momentum of the Supreme Court’s recent decision ending automatic judicial deference to government regulators’ interpretation of the law at the federal level, SB 14 states that courts are not required to defer to administrative agencies. This change will protect individual liberty by ensuring that courts are not bound to being overly deferential to agencies seeking to expand their own power via rulemaking. Thanks to reforms pioneered by the Goldwater Institute, Arizona was the first state to abolish its state-level deference rule in 2018 by adopting a statute that entitles people to a fair and unbiased hearing before a judge when challenging a bureaucracy’s decisions. Numerous other states have followed suit.
A Crucial Step
This is a crucial step in safeguarding our freedoms and ensuring a level playing field. Allowing unelected agency bureaucrats to have the final say on legal interpretations can lead to regulatory overreach and an imbalance of power. By empowering our courts to exercise their independent judgment, SB 14 upholds the rule of law while ensuring a stronger check on executive power and greater certainty and predictability for businesses.
The impact of SB 14 will be profound. By actively working to reduce regulatory burdens and ensuring the independent review of agency actions, Texas will further enhance its position as a premier state for business, fuel economic growth and create jobs, and serve as a national model for regulatory reform.
We extend our sincere appreciation to the coalition of businesses, advocacy groups, and individuals who tirelessly championed this vital legislation. We commend legislative leadership and the numerous sponsors for their commitment to fostering a pro-growth environment and for recognizing the importance of sound regulatory policy. Finally, we offer our deepest thanks to Governor Abbott for signing SB 14 into law, solidifying its place as a cornerstone of Texas’ economic success.
Jen Springman is the Coalitions Manager at the Goldwater Institute, where she works to build and strengthen strategic partnerships to assist in advancing Goldwater’s national policy initiatives.
