Lawton , OK – Oklahoma, despite its conservative electorate, faces a regulatory environment that stifles economic growth and job creation. The state is among the most regulated in the country, with over 142,000 regulations, a number that surpasses even traditionally liberal states such as Minnesota, Connecticut, Rhode Island, and Vermont. Experts are now urging state lawmakers to take action to address this regulatory burden.
At a recent meeting led by state Rep. Gerrid Kendrix and state Sen. Micheal Bergstrom, who chair their respective chambers’ administrative rules committees, lawmakers explored proposals that have been successful in other states. The goal is to streamline the regulatory process and ease the burden on businesses and citizens.
One of the key recommendations discussed was the creation of an independent entity to evaluate and review agency regulations. Additionally, experts proposed that legislators should proactively approve any new regulations that could impose significant costs on the private sector. This would ensure greater legislative oversight before any costly rules are enacted. Another recommendation calls for the repeal of outdated and unnecessary regulations every time a new rule is introduced.
According to the Mercatus Center’s 2024 “Snapshots of State Regulations,” Oklahoma ranks as the 17th-most regulated state in the nation, with 142,313 regulations. This is a stark contrast to Idaho, the least-regulated state, which has just 31,497 regulations. Oklahoma’s regulatory complexity is seen as an obstacle to fostering a more dynamic economy.
One of the main reasons for this regulatory overload is the current system of legislative review, which fails to give lawmakers the time needed to thoroughly evaluate new regulations. Sen. Bergstrom highlighted the issue, noting that the Legislature receives roughly 400 packets of proposed agency rules each session, with most packets containing dozens to hundreds of pages. As chairman of the administrative rules committee, Bergstrom stated his goal was to read every packet, but the sheer volume and time constraints make this an impossible task.
In response to this issue, officials have suggested creating a new division within Oklahoma’s Legislative Office of Fiscal Transparency (LOFT) to help lawmakers manage the growing volume of regulations. This independent entity could assist in streamlining the review process and ensure that regulations are carefully considered before they are implemented.
Another potential solution discussed during the meeting was the adoption of a “Rules from the Executive in Need of Scrutiny” (REINS) Act. Under such an act, the Legislature would be required to proactively approve any new regulation that imposes costs above a certain threshold on the private sector. States like Florida and Wisconsin have successfully implemented REINS laws, which have led to substantial reductions in the number of new regulations and, in Florida’s case, saved the state billions of dollars in regulatory costs.
Florida, for example, saw a 51% reduction in the number of new regulations proposed annually after adopting its REINS Act. A study also found that the law helped save Florida businesses $2 billion in regulatory costs since 2010.
Legal experts warn that without significant reform, Oklahoma risks allowing unelected bureaucrats to impose regulations that could have far-reaching consequences without legislative oversight. Daniel Dew, legal director for the Pacific Legal Foundation, emphasized that excessive regulation could result in the erosion of personal liberties and property rights, as regulations are often crafted by mid-level government officials with little public input or legislative scrutiny.
Despite the challenges, Oklahoma has experienced strong economic growth and job creation in recent years. However, many believe that reducing regulatory red tape would further bolster the state’s economy, creating an environment where businesses can thrive even more.
As legislative leaders continue to explore solutions, the need for action becomes increasingly urgent. Lawmakers will face tough decisions in the coming months, but if they can successfully address the regulatory burden, Oklahoma could see even stronger growth and a more vibrant business climate in the years to come.
