What happened: Texas is the fifth most regulated state in the nation, according to the most recent State RegData rankings.

Remind me: On Dec. 4, 2024, Gov. Greg Abbott launched the Small Business Freedom Council to identify regulatory barriers for small businesses. While this is a major step toward modernizing the state’s regulatory system, the 89th Texas Legislature has an opportunity to address specific areas where change is most urgently needed.

Tell me more: Excessive regulations, particularly in occupational licensing and permitting, create unnecessary hurdles for entrepreneurs and businesses. Proposed reforms include:

• A user-friendly website consolidating all business regulations in one accessible location.
• A transparent and regular review process to ensure regulations remain effective.
• A new regulatory division to help state agencies review regulations, improve their rules and eliminate inefficiencies.

In his words: “Reforming Texas’s regulatory system is one of the most impactful steps legislators can take to improve state government and ensure Texas continues to lead the nation. By fixing outdated regulations and removing unnecessary barriers, Texas can cement our status as a dominant economic force in the U.S. and around the world.” —Judge Jeff Rose 

TLR Thoughts: Texas’s excessive regulatory framework threatens its economic competitiveness, especially for small businesses and consumers, which is why TLR is part of the Coalition for Regulatory Efficiency and Reform. TLR will support legislation this session aimed at systematically reducing red tape and preventing future accumulation of regulations. By adopting proven strategies, Texas can stimulate substantial economic growth and solidify its reputation as a leader in pro-business governance.

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