The South Carolina Legislature's House Regulations, Administrative Procedures, AI and Cybersecurity Committee convened on February 18, 2025, to discuss significant regulatory reforms aimed at reducing the burden of regulations on businesses. The primary goal of the proposed legislation is to decrease the number of regulatory requirements by 25%, which proponents argue could lead to a 1% increase in the state's GDP.

Currently, South Carolina has approximately 81,000 regulatory "do's and don'ts," a figure that places it between states like California, which has over 412,000, and Idaho, with only 15,000. The committee emphasized that the complexity of these regulations often necessitates legal assistance for businesses, which can be a financial strain. The proposed reforms aim to simplify this landscape, making it easier for businesses to operate without extensive legal guidance.

Key provisions of the legislation include a regulatory sunset clause, which would require regulations to be reviewed and potentially repealed every eight years. This process would allow for the elimination of outdated or unnecessary regulations while retaining those deemed beneficial. Additionally, the Small Business Regulatory Review Committee's role will be enhanced to better represent business interests in the regulatory process.

Another significant aspect of the proposal is the introduction of a regulatory budget. This would require any new regulation proposed by an agency to be accompanied by the elimination of two existing regulations, fostering a more disciplined approach to regulatory growth. The committee also plans to implement enhanced economic analysis for regulations, ensuring that the financial impact on businesses is thoroughly assessed before new regulations are enacted.

Furthermore, the legislation seeks to shift the presumption in administrative law courts, placing the burden of proof on agencies rather than citizens when disputes arise over regulations. This change aims to empower citizens and businesses in their interactions with regulatory bodies.

The committee's discussions highlighted the need for a more efficient regulatory process, which currently can take over six months to navigate. The proposed reforms are designed to streamline this process, making it less burdensome for both agencies and the public.

As the committee moves forward, the implications of these reforms could significantly alter the regulatory environment in South Carolina, potentially fostering a more business-friendly atmosphere and encouraging economic growth. The next steps will involve further discussions and refinements to the proposed legislation before it is presented for a vote.