Law & Principles
Jonathan Small | May 12, 2025
Oklahoma lawmakers seek to rein in costly state agency overreach
Jonathan Small
A major focus of this year’s legislative session is reducing excessive government regulation.
House Bill 2728, by state Rep. Gerrid Kendrix and state Sen. Micheal Bergstrom, would create the Regulations from the Executive in Need of Scrutiny (REINS) Act of 2025.
Under the bill, any state agency rule with an economic impact of $1 million or more over a five-year period would face extra scrutiny and oversight from the Legislature.
Yet some question why Oklahoma needs this reform. The answer is simple: Because Oklahoma state agencies are as prone to overreach as government agencies in other parts of the country.
Here are just a few examples from recent years.
In 2020, after Oklahoma’s COVID restrictions were quickly lifted, our Health Department nonetheless created a rule designed to prevent thousands of medical patients from receiving treatment, thus impairing patients’ health and the finances of thousands of medical professionals.
Oklahoma lawmakers and voters wisely opted not to create a state exchange for Obamacare policies or any other information-exchange purposes. However, years later, bureaucrats at the Oklahoma Health Care Authority created a rule that was going to cost over $30 million a year to effectively create a health information exchange by rule. Other states that have attempted Obamacare and other systems like this have experienced significant cost overruns. The OHCA rule would have required that data and information about every medical claim in Oklahoma be submitted to the Oklahoma Health Care Authority—for a fee.
Once the Oklahoma Board of Pharmacy advanced a rule to newly regulate hundreds of businesses without properly providing notice, and then errantly triggered those businesses’ investigation by the federal government.
The Oklahoma Tax Commission once sought to pass a rule requiring any school accepting students who use parental choice tax credits to comply with various local and state ordinances, including ordinances in dispute. That was going to impose millions in new costs for private schools and reduce the number of children served.
In each of the above cases, the rule either went into effect or almost went into effect, and it took an intense lobbying effort to defeat or roll back those cases of regulatory overreach.
With a REINS Act, similar problems would occur far less frequently in the future, and agencies would operate knowing they are subject to serious oversight.
Unfortunately, a report by the Mercatus Center at George Mason University found that Oklahoma is already the 17th-most regulated state in the country. We should not wait until regulatory overreach is rampant and hitting crisis levels before imposing credible safeguards.
Jonathan Small
President
Jonathan Small, C.P.A., serves as President and joined the staff in December of 2010. Previously, Jonathan served as a budget analyst for the Oklahoma Office of State Finance, as a fiscal policy analyst and research analyst for the Oklahoma House of Representatives, and as director of government affairs for the Oklahoma Insurance Department. Small’s work includes co-authoring “Economics 101” with Dr. Arthur Laffer and Dr. Wayne Winegarden, and his policy expertise has been referenced by The Oklahoman, the Tulsa World, National Review, the L.A. Times, The Hill, the Wall Street Journal and the Huffington Post. His weekly column “Free Market Friday” is published by the Journal Record and syndicated in 27 markets. A recipient of the American Legislative Exchange Council’s prestigious Private Sector Member of the Year award, Small is nationally recognized for his work to promote free markets, limited government and innovative public policy reforms. Jonathan holds a B.A. in Accounting from the University of Central Oklahoma and is a Certified Public Accountant.