The Legislative Budget Board (LBB) estimates that SB 14 will have a negative fiscal impact of $15.7 million on General Revenue funds over the 2026-2027 biennium, with ongoing annual costs of approximately $7.79 million through 2030​.

The bill creates the Texas Regulatory Efficiency Office within the Governor’s Office and the Texas Regulatory Efficiency Advisory Panel. To establish and operate these entities, the Office of the Governor (OOG) anticipates hiring 35.5 full-time employees (FTEs), including compliance analysts, program specialists, general counsel staff, and IT personnel. The total cost associated with these positions, including salaries, benefits, travel, and administrative expenses, is estimated at $12.6 million for the 2026-27 biennium.

In addition, the bill requires the development of an interactive website to improve public access to regulatory information. The OOG projects annual costs of $1.55 million for website maintenance. The Department of Information Resources (DIR) estimates a one-time development cost of $1.09 million in 2026, with recurring maintenance costs of $654,000 per year from 2027-2030.

The fiscal note indicates that costs for other state agencies such as the Secretary of State (SOS), DIR, and the Office of Court Administration will be absorbed within existing resources. The bill is not expected to have significant fiscal implications for local governments.

While the bill does not appropriate funds, it could provide the legal basis for future appropriations to cover implementation costs. Over time, potential long-term savings from regulatory efficiency and reduced administrative burdens could offset initial expenditures. However, no specific cost savings have been projected in the fiscal note.

SB 14 presents a strong case for regulatory reform by streamlining the rulemaking process, increasing transparency, and ensuring judicial independence from agency interpretations. The bill proposes the creation of the Texas Regulatory Efficiency Office and Regulatory Efficiency Advisory Panel, both designed to help agencies reduce unnecessary regulations and improve public access to regulatory information. These goals align with free enterprise, limited government, and individual liberty, which are core principles of a well-functioning market and governance system.

However, a legitimate concern arises: Is this bill achieving regulatory reduction by simply creating more bureaucracy? The establishment of a new office within the Governor’s Office, complete with 35.5 new full-time positions and an ongoing fiscal impact of nearly $8 million per year, risks contradicting the bill's stated purpose of reducing government intervention. While oversight is essential, adding a regulatory layer to oversee regulatory reduction could become self-defeating in the long run.

To address these concerns, though Texas Policy Research recommends lawmakers vote YES on SB 14, we also suggest lawmakers adopt an amendment to add a clear sunset provision requiring an earlier review of the office’s necessity and effectiveness, perhaps within five years instead of twelve. Additionally, strict performance metrics should be required to ensure that the new office actively reduces regulations rather than maintaining its own existence as another layer of state oversight.

• HB 10 (Similar To)