this bill, Governor Perry has reaffirmed not only the importance
of transparency of regulatory proposals, but also the
significant contributions of small businesses to the state’s
Thomas M. Sullivan, Chief Counsel for Advocacy
The new law requires state agencies to prepare an economic
impact statement about the small businesses affected by a
proposed rule. It also requires a regulatory flexibility
analysis that includes an agency’s consideration of less
burdensome ways of achieving the rule’s purpose.
“By signing this bill, Governor Perry has reaffirmed not only
the importance of transparency of regulatory proposals, but also
the significant contributions of small businesses to the state’s
economy,” said Thomas M. Sullivan, Chief Counsel for Advocacy.
“Texas is fortunate to have an action-oriented legislature with
strong support for small business.” Sullivan praised Senators
Eddie Lucio and Leticia Van de Putte as well as Representatives
Gary Elkins and Mark Strama, the original co-sponsors of the
Small businesses are a key part of Texas’ economy. In 2005,
according to Office of Advocacy research, 98.7 percent of Texas
businesses were small businesses, employing 47.7 percent of the
state’s private workforce.
The Texas small business community strongly supported enactment
of the regulatory flexibility measure. The legislative victory
was achieved through the efforts of the National Federation of
Independent Business (NFIB)/Texas, the Texas Association of
Business, the Texas Manufacturers’ Association, and the Texas
Association of Mexican-American Chambers of Commerce.
“The new law is a win-win for small businesses and good
government,” NFIB/Texas Executive Director Will Newton said.
“Small businesses are important engines in our Texas economy and
they are the first to feel the pinch of one-size-fits all
regulations. This law changes that dynamic by requiring agencies
to do a more thorough analysis of their regulatory impact on
small business and making that information available to the