A sweeping legislative proposal designed to liberate South Carolina’s small businesses from a mountain of regulatory constraints has once again found itself in a familiar state of limbo, despite enjoying overwhelming bipartisan consensus. The Small Business Regulatory Freedom Act, a bill aimed at overhauling the state’s rule-making process, has become the focal point of a public call to action from gubernatorial candidate Representative Nancy Mace, who is pressing the state legislature to address the legislation that has languished for the better part of a decade. With small businesses reportedly navigating an estimated 83,000 regulatory restrictions, proponents argue that the bill’s passage is not just a matter of political convenience but an urgent economic necessity. The central question now is why a proposal with such broad support continues to stall, creating a significant roadblock for entrepreneurs and business owners across the state. The debate highlights a critical disconnect between legislative intent and final action, leaving the business community waiting for relief.
A Recurring Legislative Bottleneck
The journey of the Small Business Regulatory Freedom Act (H. 3021/S. 254) through the South Carolina legislature presents a stark contrast in political will between its two chambers. The bill has demonstrated remarkable strength in the House, where it recently passed with a unanimous 111-0 vote, signaling a powerful, unified message from representatives of all political affiliations that regulatory reform is a top priority. This level of support is not a new phenomenon; a similar version of the bill saw comparable success in the House back in 2018. However, this momentum has consistently dissipated upon reaching the Senate. The current bill is now stagnant, parked in the Senate Judiciary Committee with no hearing scheduled and no apparent movement on the horizon. This recurring pattern of inaction has become a source of profound frustration for the bill’s advocates, who point to the Senate as the primary obstacle preventing the implementation of reforms they believe are crucial for fostering a more dynamic and competitive business environment in the state.
The Framework for a Freer Market
At its core, the proposed act introduces five major provisions specifically engineered to reduce bureaucratic overreach and enhance legislative oversight of state agencies. A key component is a “sunset clause,” which would automatically expire all state regulations after seven years unless an agency can provide compelling, real-world data to justify their renewal. This forces a regular review of existing rules. Complementing this is a “two-for-one” rule, requiring agencies to permanently eliminate two old regulations for every new one they introduce. The legislation also mandates a straightforward 25% overall reduction in the state’s total volume of regulatory requirements, aiming for a significant and immediate impact. Furthermore, the act seeks to end the practice of judicial deference, a principle that often leads courts to automatically accept an agency’s interpretation of its own rules. Finally, for any new regulation projected to have an economic impact exceeding one million dollars, the bill would require joint approval from the legislature, ensuring that costly new rules receive thorough scrutiny from elected officials before taking effect.
An Economic Crossroads
The push for this reform is grounded in research suggesting a direct link between excessive regulation and adverse economic outcomes for South Carolinians. Studies on the impact of federal regulations have been used to illustrate the potential harm, pointing to correlations with increased poverty levels, reduced job creation, fewer new businesses, and higher consumer prices. Proponents of the bill position regulatory reform as a foundational issue that a governor should prioritize within the first 100 days in office to unlock the state’s economic potential. The argument is that while the votes for passage are readily available, what has been lacking is the political urgency within the Senate to act on behalf of the state’s small business community. This delay is not just a procedural hiccup; it is seen as a fundamental impediment to economic growth and prosperity for entrepreneurs across South Carolina. The legislative inaction leaves a significant policy proposal, backed by unanimous support in one chamber, in a state of indefinite suspension, underscoring the deep challenges in translating popular ideas into law.
