February 2, 2026

Charleston Lawmakers Advance Regulatory Overhaul for Business Growth

Charleston, February 2, 2026

South Carolina legislators are pushing forward the Small Business Regulatory Freedom Act aimed at creating a favorable environment for businesses in Charleston and throughout the state. The legislation seeks to cut down on various bureaucratic regulations, with supporters arguing that it will stimulate economic development and entrepreneurship. However, the bill has faced scrutiny from some groups concerned about potential negative impacts on public protections. This initiative could reshape how businesses operate in Charleston as discussions continue about balancing growth with safety and environmental considerations.

Charleston: SC Regulatory Overhaul Eyes Business Growth, Sparks Debate

South Carolina lawmakers are advancing significant legislation aimed at fostering a more dynamic economic landscape for businesses across the state, including the vibrant Charleston SC business community. Termed the Small Business Regulatory Freedom Act, this initiative seeks to streamline processes and reduce bureaucratic hurdles, drawing both strong support for its economic potential and careful scrutiny over its broader impacts.

The legislative push reflects a broader philosophy that reducing governmental red tape can unleash entrepreneurial innovation and bolster the resilience of Charleston small business owners and South Carolina entrepreneurs. While proponents highlight the direct benefits for job creators, other groups are raising questions about the bill’s comprehensive reach and its potential ramifications beyond the business sector, particularly concerning existing public protections.

Championing Small Business Resilience in the Palmetto State

The Small Business Regulatory Freedom Act (H. 3021 / S. 254) is presented by its supporters as a critical measure to alleviate the burden of extensive state regulations on companies throughout South Carolina. For many Charleston small business owners, navigating the labyrinth of state rules can be a significant challenge. Proponents argue that the current regulatory environment, with over 80,000 to 136,000 restrictions on the books, can stifle innovation and hinder the growth of South Carolina entrepreneurs. The aim is to create an environment where businesses can focus on growth, job creation, and serving their communities with less governmental interference.

The legislation is designed to cultivate a business climate that is not only friendly to startups and existing enterprises but also accountable and responsive to the needs of its job creators. This approach, proponents believe, is essential for continued Lowcountry economic growth and the overall vitality of the Charleston County economy.

Core Tenets of Regulatory Streamlining

At the heart of the Small Business Regulatory Freedom Act are several key provisions intended to fundamentally reform South Carolina’s regulatory framework. A central objective is to reduce the overall number of regulatory requirements by 25 percent. To achieve this, the bill proposes the establishment of a Small Business Regulatory Review Committee, which would consist of 11 South Carolina business owners serving in a volunteer capacity. This committee would be tasked with reviewing existing regulations and making recommendations for their elimination or modification.

Another significant mechanism is the “Two-for-One” Rule, which would mandate state agencies to identify and propose the removal of two existing regulations for every new regulation they wish to implement. Furthermore, the bill includes “sunset provisions,” meaning that regulations would automatically expire every seven years unless explicitly reauthorized after a review process. These measures are intended to ensure ongoing scrutiny of regulations and prevent the accumulation of outdated or unnecessary rules.

Reining in Administrative Authority and Promoting Accountability

Beyond direct regulatory cuts, the Small Business Regulatory Freedom Act introduces reforms designed to enhance legislative oversight and clarify the interpretation of laws. The bill incorporates “REINS-style” provisions, which would require any new regulation projected to have an economic impact of $1 million or more over a five-year period to undergo legislative review and approval. This aims to strengthen the role of elected representatives in the rulemaking process, rather than leaving significant policy decisions solely to unelected administrative bodies.

Moreover, the legislation seeks to reform judicial deference by clarifying that courts should not automatically defer to an agency’s interpretation of a law. This particular change is intended to ensure that judges, rather than regulators, have the ultimate authority in determining what the law means, thereby upholding the separation of powers and promoting fairness and predictability in the application of statutes. The act also empowers citizens and businesses to challenge new regulations in court if they believe a state agency exceeded its statutory authority in issuing the rule.

Broader Implications and Community Concerns

While the intent to support Charleston SC business and economic growth is clear, some groups have expressed significant concerns about the potential consequences of the Small Business Regulatory Freedom Act. Organizations like the Conservation Voters of South Carolina (CVSC) have voiced opposition to the bill, warning that it could lead to a “blunt approach” in removing regulations without sufficient consideration for critical protections. Critics argue that some regulations, while potentially perceived as “red tape” by businesses, are vital for safeguarding public health, safety, and the environment.

Concerns also include the implications of an unelected committee having substantial power to recommend reductions in the regulatory code, and the potential for the bill to make the overall rulemaking process more cumbersome and costly in the long run. While the bill mandates an assessment of the economic, environmental, and public health impacts of regulations during review, some fear these safeguards may be insufficient to prevent unintended negative outcomes.

Concurrent Legislative Focus on Youth Protection

In parallel with the discussions surrounding business deregulation, South Carolina GOP lawmakers have also pursued distinct legislative initiatives focused on protecting children. These efforts highlight a multifaceted approach by state Republicans to address a range of societal concerns. One such initiative is the Child Online Safety Act (H. 3424), which mandates age verification systems for websites containing a significant amount of material deemed harmful to minors, to prevent access by individuals under 18. This law became effective on January 1, 2025.

Another prominent piece of legislation is the Help Not Harm Bill (H. 4624), which prohibits healthcare professionals from providing gender transition procedures to minors under 18 years of age. The bill also restricts the use of public funds, including the South Carolina Medicaid Program, for covering such procedures for minors. This bill has advanced through the House and moved to the Senate, generating debate among various groups, including medical professionals and parents, regarding its impact on healthcare access and parental rights. Additionally, the Unborn Child Protection Act (S. 323), introduced in February 2025, aims to amend definitions related to abortions and protect unborn children. These separate legislative actions underscore a broader commitment by some South Carolina lawmakers to enact policies they believe safeguard the state’s youth.

Looking Ahead for Charleston’s Economic Future

The legislative agenda in South Carolina, particularly the Small Business Regulatory Freedom Act, represents a significant effort to influence the state’s economic trajectory. For the Charleston County economy and its many Charleston small business ventures, the outcomes of these policy decisions could shape future opportunities and challenges. While the drive for deregulation aims to spur Lowcountry economic growth and support South Carolina entrepreneurs, the concurrent dialogue about balancing these gains with public and environmental protections remains central to the legislative process. Engaging with these evolving policy discussions is crucial for anyone invested in the sustained prosperity and well-being of Charleston and the wider state.

Frequently Asked Questions about South Carolina Legislation

What is the Small Business Regulatory Freedom Act?

The Small Business Regulatory Freedom Act (H. 3021 / S. 254) is South Carolina legislation aimed at reducing bureaucratic red tape for businesses by streamlining regulations. It seeks to lower the overall regulatory burden by 25 percent and includes mechanisms like a “Two-for-One” rule and automatic expiration dates for regulations.

What are the key provisions of the Small Business Regulatory Freedom Act?

Key provisions include a target to reduce regulatory requirements by 25 percent, the creation of a Small Business Regulatory Review Committee composed of South Carolina business owners, a “Two-for-One” rule requiring agencies to remove two regulations for every new one, automatic expiration (sunset provisions) of regulations every seven years, strengthened legislative oversight for economically impactful rules, and clarification that courts, not agencies, interpret the law.

Why are some groups concerned about the Small Business Regulatory Freedom Act?

Some groups, such as the Conservation Voters of South Carolina, are concerned that the bill’s “blunt approach” to removing regulations could jeopardize critical environmental, public health, and safety protections. They also worry about the power of an unelected committee and the potential for a slower or more expensive rulemaking process.

What other bills are South Carolina Republicans pushing to “protect kids”?

Separately from the business bill, South Carolina GOP lawmakers have advanced other legislation to protect children. These include the Child Online Safety Act (H. 3424), which mandates age verification for websites with harmful content for minors, and the Help Not Harm Bill (H. 4624), which prohibits gender transition procedures for individuals under 18 and restricts public funding for such procedures for minors. The Unborn Child Protection Act (S. 323) also aims to amend definitions related to abortions and protect unborn children.

Key Features of the South Carolina Small Business Regulatory Freedom Act

Feature	Description	Scope
Regulatory Reduction Target	Aims to reduce the overall regulatory burden on businesses by 25 percent.	State-level
Small Business Regulatory Review Committee	An 11-member committee of South Carolina business owners tasked with reviewing and recommending changes to regulations.	State-level
“Two-for-One” Rule	Requires state agencies to identify and remove two existing regulations for every new one proposed.	State-level
Sunset Provisions	Regulations would automatically expire every seven years unless formally reauthorized after review.	State-level
Legislative Oversight (REINS-style)	Requires legislative review and approval for any new regulation with an economic impact of $1 million or more over five years.	State-level
Judicial Deference Reform	Clarifies that courts should not automatically defer to an agency’s interpretation of law, ensuring judicial finality on legal meaning.	State-level
Citizen/Business Challenge Authority	Empowers citizens and businesses to challenge new regulations if an agency is believed to lack statutory authority.	State-level