AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "SMALL BUSINESS REGULATORY FREEDOM ACT" BY AMENDING SECTION 1-23-115, RELATING TO ASSESSMENT REPORTS FOR REGULATIONS SUBMITTED FOR PROMULGATION, SO AS TO REQUIRE LEGISLATIVE APPROVAL OF REGULATIONS WITH AN ESTIMATED ECONOMIC IMPACT OF ONE MILLION DOLLARS OR MORE OVER A FIVE-YEAR PERIOD, AMONG OTHER THINGS; BY AMENDING SECTION 1-23-120, RELATING TO THE REGULATORY REVIEW AND APPROVAL PROCESS IN THE ADMINISTRATIVE PROCEDURES ACT, SO AS TO REMOVE OBSOLETE PROVISIONS; BY AMENDING SECTION 1-23-270, RELATING TO REGULATORY FLEXIBILITY ANALYSES UNDER THE SOUTH CAROLINA SMALL BUSINESS REGULATORY FLEXIBILITY ACT, SO AS TO REMOVE OBSOLETE PROVISIONS; BY AMENDING SECTION 1-23-380, RELATING TO JUDICIAL REVIEW OF AGENCY DECISIONS, SO AS TO REQUIRE DE NOVO REVIEW OF STATUTES AND REGULATIONS; BY AMENDING SECTION 1-23-610, RELATING TO JUDICIAL REVIEW OF ADMINISTRATIVE LAW COURT FINAL DECISIONS, SO AS TO REQUIRE DE NOVO REVIEW OF STATUTES AND REGULATIONS; BY ADDING ARTICLE 4 TO CHAPTER 23, TITLE 1, SO AS TO PROVIDE FOR PERIODIC LEGISLATIVE AUDIT COUNCIL REVIEW OF AGENCY REGULATIONS AND TO PROVIDE RELATED REQUIREMENTS OF STATE AGENCIES; BY AMENDING SECTION 2-15-60, RELATING TO DUTIES OF THE LEGISLATIVE AUDIT COUNCIL, SO AS TO MAKE CONFORMING AND OTHER RELATED CHANGES; BY AMENDING SECTION 1-23-110, RELATING TO PUBLIC PARTICIPATION IN THE PROMULGATION OF REGULATIONS, SO AS TO PROVIDE THAT RELATED SUBMISSIONS MUST BE PROVIDED TO THE SMALL BUSINESS REGULATORY REVIEW COMMITTEE; AND BY AMENDING SECTION 1-23-280, RELATING TO THE COMPOSITION OF THE SMALL BUSINESS REGULATORY REVIEW COMMITTEE, SO AS TO INCLUDE ADDITIONAL NONVOTING LEGISLATIVE EX OFFICIO MEMBERS.
The proposed changes are intended to significantly affect how state agencies promulgate regulations. Agencies will now be required to demonstrate express statutory authority for any regulation, ensuring that all new regulations align with established laws. Additionally, if regulations are identified with a substantial economic impact—specifically those estimated to exceed one million dollars over five years—joint legislative approval will be necessary. The bill also includes provisions for automatic expiration dates for certain regulations, encouraging periodic review and assessment to adapt to changing economic conditions and business needs.
House Bill 3021, known as the Small Business Regulatory Freedom Act, aims to amend the South Carolina Code of Laws to facilitate a more business-friendly regulatory environment. The bill introduces the Small Business Regulatory Review Committee, which is tasked with reviewing pending regulations for reauthorization and making recommendations to the General Assembly on whether to retain or remove regulations. A key objective of this bill is to reduce the regulatory burden on businesses by a quantified twenty-five percent, which proponents argue will foster a more conducive atmosphere for small businesses in the state.
The overall sentiment around HB 3021 appears to be positive among supporters, especially within the small business community and among legislators who see it as a necessary step toward reducing bureaucratic red tape. However, there are concerns from critics about the effectiveness of such measures in genuinely addressing small business challenges. Some opponents question whether this regulatory roll-back could lead to detrimental consequences on public welfare and safety, emphasizing the need for regulations in protecting consumers and the environment.
Debate surrounding the bill reflects a broader ideological clash between promoting economic growth through deregulation versus maintaining crucial regulatory frameworks that protect the public interest. Notably, the bill mandates each agency to identify two regulations for removal whenever a new regulation is proposed, which some argue could lead to the erosion of necessary regulations that serve important social functions. Furthermore, the effectiveness of the Small Business Regulatory Review Committee and how it will balance the interests of businesses against public welfare remains a key point of contention.