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.
Thomas M. Sullivan, Chief Counsel for Advocacy

Texas took a major step in increasing transparency in government and promoting small businesses with the signing of House Bill 3430 by Governor Perry. Under this new law, the unique needs of Texas’ small businesses will be considered when state regulations are drafted.

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 legislation.

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 public.”