South Carolina S 254: Small Business Regulatory Freedom Act

Bill Text

2025-2026 Bill 254 Text of Previous Version (Jan. 21, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 254

Indicates Matter Stricken
Indicates New Matter

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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. Article 2, Chapter 23, Title 1 of the S.C. Code is 
amended by adding:

 Section 
1-23-285. (A) The Small Business 
Regulatory Review Committee shall conduct an initial review of regulations 
pending reauthorization and make recommendations to the House and Senate as to 
whether reauthorization is appropriate. In determining the appropriateness of a 
reauthorization, the committee shall thoroughly evaluate and consider the 
impact of the regulation on:

 (1) 
small business;

 (2) 
economic development; and

 (3) 
the agency itself, including the financial impact on the agency.

 (B) It 
is the duty of the committee when reviewing regulations pursuant to subsection 
(A) to reduce the overall regulatory burden on businesses by reducing the 
number of regulatory requirements by twenty-five percent.

 (C) 
The House of Representatives and Senate shall provide staff support to the 
committee as needed to carry out its obligations under this section.

 (D) 
The committee may request additional information from agencies as the committee 
considers necessary to carry out its obligations under this section. An agency 
that receives such a request shall respond with the requested information in a 
timely manner.

SECTION 3. Section 1-23-110 of the S.C. Code is amended by adding:

 (E) An agency may not promulgate any 
regulation unless the agency has been expressly granted the power to do so by a 
statutory delegation. The regulation must be within the scope of authority 
specifically granted by the statute, and the agency must cite the specific statutory 
provision authorizing the regulation. If a statute authorizes promulgation of a 
regulation, that authority expires three years after the regulation is 
promulgated and takes effect. After that time, existing regulations may still 
be updated, in accordance with the Administrative Procedures Act, to conform 
with enacted legislation or federal law