Austin, TX – The Coalition for Regulatory Efficiency and Reform (CRER) commends Rep. Keith Bell (R-Forney), Sen. Tan Parker (R-Flower Mound), and Sen. Phil King (R-Weatherford) for filing legislation to promote regulatory modernization and efficiency. House Bill 12 (HB 12) and Senate Bill 1943 (SB 1943) would strengthen the state’s Sunset Review process by adding mid-cycle reviews, third-party efficiency audits, and the mandatory solicitation of public input. Senate Bill 14 (SB 14) would amend Texas’ regulatory framework to make all rules more effective, efficient, and transparent. Together, this legislation would dramatically improve the state’s regulatory landscape to ensure Texas remains a global leader in economic growth.
HB 12/SB 1943: Strengthening Texas Sunset Reviews
HB 12 and SB 1943 are designed to make Texas’ Sunset Review process more robust.
“State regulations should provide necessary protections and assurances in the least restrictive and most efficient ways possible—and these regulations should be informed by the perspectives of workers, business operators, and everyday Texans,” said Rep. Keith Bell, Chair of the Texas Sunset Commission. "HB 12 would improve Texas' Sunset review process with mid-cycle assessments to modernize regulations on a more regular basis. This legislation requires agencies to establish performance targets, undergo efficiency audits, and invite members of the public to comment on rules. Stronger Sunset reviews would create a more effective regulatory system, and a better regulatory system would expand opportunities for everyone who lives, works, and seeks to do business in our state."
State regulatory agencies are currently reviewed on a 12-year cycle. In addition to implementing a mid-cycle review to find and address problematic regulations and evaluate agencies’ compliance more often, HB 12 and SB 1943 would incorporate new mechanisms to ensure agencies operate in efficient ways and are accountable for their results.
Sen. Tan Parker is Vice Chair of the Sunset Commission and leads its work in the Senate. He said: "As the Senate Chair of Sunset, I am committed to ensuring that our review process not only identifies outdated regulations but actively drives meaningful reforms. With a mid-term evaluation to catch bad rules earlier, third-party efficiency audits, and broader opportunities for public input, we can strengthen accountability and help agencies remain adaptable to Texans’ evolving needs. SB 1943 will foster greater transparency, bolster government effectiveness, and build lasting confidence in the regulatory systems that serve workers, families, and businesses."
HB 12/SB 1943 would:
Add a limited review for regulatory agencies halfway through each 12-year Sunset review cycle to assess the necessity and effectiveness of rules and agencies' compliance with rulemaking requirements.
Require third-party efficiency audits of all regulatory agencies, directed by the State Auditor’s Office, two years before their Sunset reviews.
Increase transparency in the Sunset review process by requiring more direct notice as well as the solicitation of input from regulated entities and the public on the agency and regulations being reviewed.
Add performance measures to the Sunset review process, prioritizing key agency deliverables.
SB 14: Improving the Regulatory Process
SB 14 is designed to streamline regulations and establish a more effective system. Despite Texas’ business-friendly reputation, it is the fifth-most regulated state in the nation.
The legislation, by Sen. Phil King, Chair of the Senate Economic Development Committee,
would address outdated and unnecessarily burdensome regulations that are creating barriers for workers and businesses across the state. It would provide more and better information about regulations to the public, would ensure those who have to operate under state rules get a say in the process, and would allow rules to be invalidated if agencies don’t perform required cost-benefit and impact analyses.
In addition, the bill would unlock billions of dollars in economic growth. A January study by the Mercatus Center at George Mason University estimates that even a modest 10 percent reduction in state regulations could expand Texas’ economy by $52 billion by 2037. A 40 percent reduction could yield an economy more than half a trillion dollars larger.
SB 14 would:
Create a new Regulatory Efficiency Office within the Governor’s Office to support state agencies in modernizing, improving, and reducing regulations on Texans.
Create a state website to serve as a user-friendly portal for new and existing business owners, where individuals can enter the type of business they own or want to start and see all state regulations affecting that business in a single, accessible place.
Require all rules and regulations be written in plain language that is clear and easy to understand.
Increase transparency in the rule review process by requiring more direct notice as well as mandatory solicitation of input from regulated entities and the public on the regulations being proposed or reviewed and the cost and impact of such rules.
Allow a rule to be invalidated if an agency fails to properly perform the statutorily required cost-benefit and impact analyses.
Codify the standard of judicial review of state agency interpretations by providing that courts are not required to give judicial deference to agency interpretations of law or rules.
The Coalition for Regulatory Efficiency and Reform
CRER is a network of industry, policy, and community organizations working to foster a regulatory environment in Texas that advances job creation and long-term economic growth. The group endorses HB 12, SB 1943, and SB 14 as part of its effort to create a best-in-the-nation regulatory model for Texas. In addition, CRER previously announced its support for HB 10–the companion bill in the House to SB 14 in the Senate—as well as HB 11, which would increase occupational licensing reciprocity agreements with other states. The CRER-endorsed bills include important reforms that are widely supported by Texas voters and would help ensure all rules are reviewed on a regular basis through an objective, transparent, and efficient process.
###
To learn more about CRER and its effort to pass meaningful state regulatory reform in the 2025 legislative session, visit TxRegReform.com.
Comments