H 3021

South Carolina General Assembly
126th Session, 2025-2026
Bill 3021
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
Indicates Matter Stricken
Indicates New Matter
Conference Report Adopted - Not Printed
June 25, 2026
H. 3021
Introduced by Reps. Bradley, G. M. Smith,
Herbkersman, Lawson, B. Newton, Wooten, C. Mitchell, Pope, Guffey, Neese,
Martin, Chapman, Pedalino, McCravy, Chumley, W. Newton, Taylor, Hewitt,
Schuessler, Davis, M. M. Smith, Long, Sanders, Teeple, Gagnon, Hixon, Erickson,
Hager, Ballentine, Calhoon, Holman, Moss, Gilreath, Gilliam, Rankin, Vaughan,
Cox, Ligon, Oremus, Hartz, Guest, Crawford, Robbins, Forrest, Magnuson, Willis,
Brewer, Gibson and Hiott
S. Printed 6/25/26--H.
Read the first time January 14, 2025
________
statement of estimated fiscal impact
Explanation of Fiscal Impact
<<section info>>
Frank A. Rainwater, Executive Director
Revenue and Fiscal Affairs Office
_______
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE
"SMALL BUSINESS REGULATORY FREEDOM ACT" BY ADDING SECTION 1-23-285 SO AS TO
PROVIDE THE SMALL BUSINESS REGULATORY REVIEW COMMITTEE SHALL CONDUCT AN INITIAL
REVIEW OF REGULATIONS PENDING REAUTHORIZATION AND MAKE RECOMMENDATIONS TO THE
GENERAL ASSEMBLY FOR RETAINING OR REMOVING REGULATIONS, TO PROVIDE IT IS THE
DUTY OF THE COMMITTEE WHEN REVIEWING REGULATIONS TO REDUCE THE OVERALL
REGULATORY BURDEN ON BUSINESSES BY REDUCING THE NUMBER OF REGULATORY REQUIREMENTS
BY TWENTY-FIVE PERCENT, AND TO PROVIDE THE COMMITTEE MAY REQUEST ANY NECESSARY
INFORMATION FROM STATE AGENCIES AND TO REQUIRE THE COMPLIANCE OF AGENCIES WITH
THESE REQUESTS, AMONG OTHER THINGS; BY AMENDING SECTION 1-23-110, RELATING TO
THE PROCESS FOR PROMULGATING REGULATIONS UNDER THE ADMINISTRATIVE PROCEDURES
ACT SO AS TO PROVIDE AGENCIES MAY NOT PROMULGATE REGULATIONS ABSENT EXPRESS
STATUTORY AUTHORITY AND CITATION TO THE SPECIFIC STATUTORY AUTHORITY, TO
PROVIDE FOR EVERY REGULATION AN AGENCY PROPOSES, IT MUST IDENTIFY AND PROPOSE
TWO OF ITS REGULATIONS TO REMOVE, TO PROVIDE PERSONS AGGRIEVED BY A REGULATION
MAY CHALLENGE THE VALIDITY OF THE REGULATION IN A COURT OF COMPETENT
JURISDICTION, AND TO PROVIDE COURTS MAY DECLARE REGULATIONS INVALID UPON
FINDING AN ABSENCE OF EXPRESS STATUTORY AUTHORITY TO PROMULGATE; BY AMENDING
SECTION 1-23-115, RELATING TO ASSESSMENT REPORTS FOR REGULATIONS SUBMITTED FOR
PROMULGATION, SO AS TO PROVIDE ALL REGULATIONS SUBMITTED FOR PROMULGATION MUST
INCLUDE ASSESSMENT REPORTS, TO ALLOW LONGER REVIEW PERIODS IN CERTAIN
CIRCUMSTANCES, TO PROVIDE DISCOUNT RATES MUST BE JUSTIFIED IF APPLIED IN AN
ANALYSIS REPORT, TO PROVIDE PROMULGATING AGENCIES MUST CONDUCT RETROSPECTIVE
ASSESSMENT REPORTS IN CERTAIN CIRCUMSTANCES, TO PROVIDE ASSESSMENT CONTENTS
MUST BE MADE PUBLICLY AVAILABLE IN A CERTAIN MANNER, TO PROVIDE CERTAIN
STANDARDIZED ANALYTIC METHODS AND METRICS MUST BE APPLIED TO ALL REGULATIONS,
TO REQUIRE RETROSPECTIVE ASSESSMENT REPORTS BE CONDUCTED WHEN REGULATIONS ARE REVIEWED
FOR RENEWAL, AMONG OTHER THINGS; BY AMENDING SECTION 1-23-120, RELATING TO
DOCUMENTS REQUIRED TO BE FILED TO INITIATE THE REVIEW PROCESS FOR A REGULATION,
SO AS TO REQUIRE THE DOCUMENTS INCLUDE AN AUTOMATIC EXPIRATION DATE, AND TO
PROVIDE FOR THE AUTOMATIC EXPIRATION AND PERIODIC REVIEW OF REGULATIONS; AND BY
AMENDING SECTION 1-23-380, RELATING TO JUDICIAL REVIEW UPON EXHAUSTION OF
ADMINISTRATIVE REMEDIES, SO AS TO PROVIDE REQUIREMENTS FOR JUDICIAL REVIEW OF
AGENCY INTERPRETATIONS OF REGULATIONS.
Be it enacted by the General Assembly of the State of
South Carolina:
SECTION 1.  This act may be cited as the "Small Business Regulatory Freedom Act."
SECTION 2.  Section 1-23-115(B) of the S.C. Code is amended to
read:
    (B)(1) A state agency must submit to the Office of Research
and Statistics of Revenue and Fiscal Affairs Office, a preliminary assessment
report on regulations which have a substantial economic impact.  Upon receiving
this report the office may require additional information from the promulgating
agency, other state agencies, or other sources.  A state agency shall cooperate
and provide information to the office on requests made pursuant to this
section.  The office shall prepare and publish a final assessment report within
sixty days after the public hearing held pursuant to Section 1-23-110.  The
office shall forward the final assessment report and a summary of the final
report to the promulgating agency and the Code
Commissioner.
       (2) In addition to the requirements of
item (1), if the final assessment report indicates that the regulation's
economic impact is estimated to equal or exceed one million dollars over five
years, then the Senate and the House of Representatives are required to approve
the regulation by a joint resolution.
SECTION 3.  Section 1-23-120(J) of the S.C. Code is amended to
read:
    (J) Each state agency, which promulgates regulations or to which
the responsibility for administering regulations has been transferred, shall by
July 1, 1997, and every five years thereafter, conduct a formal review of all
regulations which it has promulgated or for which it has been transferred the
responsibility of administering, except that those regulations described in
subsection (H) are not subject to this review. Upon completion of the review,
the agency shall submit to the Code Commissioner a report which identifies
those regulations:
       (1) for which the agency
intends to begin the process of repeal in accordance with this article;
       (2) for which the agency
intends to begin the process of amendment in accordance with this article;  and
       (3) which do not require
repeal or amendment.
    Nothing
in this subsection may be construed to prevent an agency from repealing or
amending a regulation in accordance with this article before or after it is
identified in the report to the Code Commissioner.
SECTION 4.  Section 1-23-270(F) of the S.C. Code is amended to
read:
    (F)(1) Each state agency, which promulgates regulations or to
which the responsibility for administering regulations has been transferred,
shall by July 1, 1997, and every five years thereafter, conduct a formal review
of all regulations which it has promulgated or for which it has been
transferred the responsibility of administering, except that those regulations
described in Section 1-23-120(H) are not subject to this review.  Upon
completion of the review, the agency shall submit to the Code Commissioner a
report which identifies those regulations:
  (a) for which the
agency intends to begin the process of repeal in accordance with this article;
  (b) for which the
agency intends to begin the process of amendment in accordance with this
article;  and
  (c) which do not
require repeal or amendment.
       Nothing
in this subsection may be construed to prevent an agency from repealing or
amending a regulation in accordance with Article 1 before or after it is
identified in the report to the Code Commissioner.
       (2) Regulations that
take effect on or after the effective date of this article must be reviewed
within five years of the publication of the final regulation in the State
Register and every five years after thatto ensure that they minimize economic
impact on small businesses in a manner consistent with the stated objectives of
applicable statutes.
       (3) In reviewing
regulations to minimize their economic impact on small businesses, the agency
shall consider the:
  (a) continued need
for the regulation;
  (b) nature of
complaints or comments received concerning the regulation from the public;
  (c) complexity of
the regulation;
  (d) extent to which
the regulation overlaps, duplicates, or conflicts with other federal, state,
and local governmental regulations;  and
  (e) length of time
since the regulation has been evaluated or the degree to which technology,
economic conditions, or other factors have changed in the area affected by the
regulation.
SECTION 5.  Section 1-23-380(5) of the S.C. Code is amended to
read:
    (5)(a) The court may not substitute its judgment for the
judgment of the agency as to the weight of the evidence on questions of fact.
The court may affirm the decision of the agency or remand the case for further
proceedings. The court may reverse or modify the decision if substantial rights
of the appellant have been prejudiced because the administrative findings,
inferences, conclusions, or decisions are:
  (a)(i) in violation of constitutional or statutory
provisions;
  (b)(ii) in excess of the statutory authority of the agency;
  (c)(iii) made upon unlawful procedure;
  (d)(iv) affected by other error of law;
  (e)(v) clearly erroneous in view of the reliable, probative,
and substantial evidence on the whole record;  or
  (f)(vi) arbitrary or capricious or characterized by abuse of
discretion or clearly unwarranted exercise of discretion.
       (b) In interpreting a statute or
regulation, the court shall not defer to the agency's interpretation of the
statute or regulation and instead shall interpret the statute or regulation de
novo.
SECTION 6.  Section 1-23-610 of the S.C. Code is amended to read:
    Section
1-23-610.  (A)(1) For judicial review of a final
decision of an administrative law judge, a notice of appeal by an aggrieved
party must be served and filed with the court of appeals as provided in the
South Carolina Appellate Court Rules in civil cases and served on the opposing
party and the Administrative Law Court not more than thirty days after the
party receives the final decision and order of the administrative law judge.
Appeal in these matters is by right.
       (2)
Except as otherwise provided in this chapter, the serving and filing of the
notice of appeal does not itself stay enforcement of the administrative law
judge's decision. The serving and filing of a notice of appeal by a licensee
for review of a fine or penalty or of its license stays only those provisions
for which review is sought and matters not affected by the notice of appeal are
not stayed. The serving or filing of a notice of appeal does not automatically
stay the suspension or revocation of a permit or license authorizing the sale
of beer, wine, or alcoholic liquor. Upon motion, the administrative law judge
may grant, or the court of appeals may order, a stay upon appropriate terms.
    (B)
The review of the administrative law judge's order must be confined to the
record. The court may not substitute its judgment for the judgment of the
administrative law judge as to the weight of the evidence on questions of fact.
The court of appeals may affirm the decision or remand the case for further
proceedings;  or, it may reverse or modify the decision if the substantive
rights of the petitioner have been prejudiced because the finding, conclusion,
or decision is:
       (a)(1) in violation of constitutional or statutory
provisions;
       (b)(2) in excess of the statutory authority of the agency;
       (c)(3) made upon unlawful procedure;
       (d)(4) affected by other error of law;
       (e)(5) clearly erroneous in view of the reliable, probative,
and substantial evidence on the whole record;  or
       (f)(6) arbitrary or capricious or characterized by abuse of
discretion or clearly unwarranted exercise of discretion.
    (C) In interpreting a statute or
regulation, the court shall not defer to the agency's interpretation of the
statute or regulation and instead shall interpret the statute or regulation de
novo.
SECTION 7.  Chapter 23, Title 1 of the S.C. Code is amended by
adding:
Article 4
Regulatory Review by Legislative Audit Council
    Section
1-23-800.  (A) Beginning July 1,
2027, the Legislative Audit Council shall schedule state agencies as defined in
Section 2-15-50 so that all state agencies' regulations are formally reviewed
at least once every five to eight years, provided if an agency's regulations
exceed one hundred pages in the Code of State Regulations, then the Legislative
Audit Council may divide the agency's regulations into one or more subject
matters for review every five to eight years. In determining the order in which
agencies' formal reviews are conducted, the Legislative Audit Council may
consult with the President of the Senate, the Speaker of the House of
Representatives, the Legislative Oversight Committees in the Senate and House
of Representatives, and the chairmen of standing committees in the Senate and
House of Representatives.
    (B) Based
on the schedule it establishes, the Legislative Audit Council shall conduct a
formal review of all regulations promulgated by state agencies as defined in
Section 2-15-50. The review shall determine:
       (1)
if the regulations are within the scope of the statutory authority for their
promulgation; and
       (2)
if the regulations continue to operate under their statutory authority or are
obsolete.
    (C) By
January 1 each year, beginning January 1, 2028, the Legislative Audit Council
shall deliver a report to the standing committees of the Senate and House of
Representatives that have jurisdiction over each agency's statutory authority
that must include:
       (1)
the scope of review;
       (2)
the regulations determined by the Legislative Audit Council to be obsolete or
outside the scope of enabling statutory authority; and
       (3)
the regulations that the applicable agency intends to begin the process of
repeal or amendment in accordance with Chapter 23 of Title 1.
    Section
1-23-810.  (A) If an agency fails to
complete the formal review in accordance with the Legislative Audit Council's
schedule, within thirty days of the missed deadline, the Legislative Audit
Council must notify the agency of noncompliance.
    (B)Within
thirty days of receipt, the agency must submit a written certification of
noncompliance to the President of the Senate and the Speaker of the House of
Representatives. The certification must identify the specific regulations not
yet reviewed, the reasons for noncompliance, and a remedial schedule for
completing the review.
    (C) Failure
to complete the formal review within ninety days of the missed deadline for
compliance results in the agency being prohibited to file any proposed new
regulations except for emergency regulations or regulations to comply with
federal law. The prohibition remains in effect until the formal review is
completed.
    (D) Upon
a finding of good cause shown by the agency, the General Assembly by concurrent
resolution may waive the prohibition in subsection (C). Any waiver granted
under this subsection must specify its duration and not exceed one hundred
eighty days.
SECTION 8.  Section 2-15-60 of the S.C. Code is amended to read:
    Section
2-15-60. It is the duty of the council:
    (a) To
respond to any request concerning a programmatic or fiscal
matter or information related to the purposes set forth in Section 2-15-50
which may be referred to it by the General Assembly or any of its members or
committees.
    (b) To
conduct audits, if authorized by the council, upon request of the General
Assembly or either of its respective bodies, a standing committee, the Speaker
of the House, the President of the Senate, or not less than five members of the
General Assembly, and to submit a report containing its findings and
recommendations to the requesting entity or persons and to any member of the
General Assembly who may request a copy.
    (c) To
assist the General Assembly in the performance of its official functions by
providing its members and committees with impartial and accurate information
and reports concerning the efficiency, programmatic, or fiscal
problems matters presented
to them as members of the General Assembly.
    (d) To
establish a system of post audits for all fiscal matters and financial
transactions for all state agencies of the state government.
    (e) To establish a regular schedule to formally
review all agency regulations every five to eight years as provided in Article
4, of Chapter 23 in Title 1. Nothing in this subsection limits, abridges, or
otherwise affects the provisions of this section or this chapter.
SECTION 9.  Section 1-23-110(C) of the S.C. Code is amended to
read:
    (C)(1)
The agency shall consider fully all written and oral submissions respecting the
proposed regulation. All of the written submissions, and
transcripts or recordings or oral submissions, must be provided to the Small
Business Regulatory Review Committee.
       (2)
Following the public hearing and consideration of all submissions, an agency
must not submit a regulation to the General Assembly for review if the
regulation contains a substantive change in the content of regulation as
proposed pursuant to subsection (A)(3) and the substantive change was not
raised, considered, or discussed by public comment received pursuant to this
section. The agency shall refile such a regulation for publication in the State
Register as a proposed regulation pursuant to subsection (A)(3).
SECTION 10. Section 1-23-280 (B), (C), and (D) of the S.C. Code is
amended to read:
    (B) The committee shall consist of
eleven members, appointed as follows:
       (1)
five members to be appointed by the Governor;
       (2)
three members to be appointed by the President of the Senate;  and
       (3)
three members to be appointed by the Speaker of the House of Representatives.
    (C)
In addition, the Chairman of the Senate Labor,
Commerce and Industry Committee of the South Carolina
Senate, the Chairman of Senate Agriculture and
Natural Resources Committee, the Chairman of the House of Representatives
Agriculture, Natural Resources and Environmental Affairs Committee, and
the Chairman of the House of Representatives Labor,
Commerce and Industry Committee of the South Carolina
House of Representatives, or their designees, shall serve as nonvoting,
ex officio members of the committee. During the committee review process, the
director or his designee, of the promulgating agency shall be available at the
request of the committee for comment on the proposed regulation.
    (D)
Appointments to the committee must be representative of a variety of small
businesses in this State, at least one of which must be
engaged in agribusiness. All appointed members shall be either current
or former owners or officers of a small business.
SECTION 11. This act takes effect upon approval
by the Governor.
/s/Sen. Campsen  /s/Rep.
Herbkersman
/s/Sen. Elliott  /s/Rep.
Anderson
/s/Sen. Ott  /s/Rep.
Bradley
    On Part of the Senate  On
Part of the House
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This web page was last updated on June 25, 2026 at 02:49 PM