We are cutting red tape to help small businesses thrive

Last month my colleagues in the SC House took decisive action by passing the South Carolina Small Business Regulatory Freedom Act, (H.3201) for which I was the prime sponsor.

I was gratified with such strong support. It was a bold step to reduce unnecessary government interference and unleash the full potential of our state’s entrepreneurs. The bill passed with overwhelming bipartisan support (108-0). It was a clear sign that South Carolina is ready to modernize its regulatory environment and support small business owners, not stifle them.

Our small businesses have long been the backbone of South Carolina’s economy. In fact, there are more than 475,000 small businesses in our state, accounting for 99.4% of the state’s businesses. They power job creation, innovation, and community growth in large municipalities and small towns from our oceanfront to the Appalachian Mountains.
Yet for too long, these same small businesses have been burdened by outdated, excessive, and unaccountable regulations that slow their growth and drive up costs. I have long believed this situation needed to be changed.

In presenting this bill to our House floor I pointed out how heavy our regulatory burden has become. We rank 36th in the nation for the number of regulatory requirements. In 2024 we had 136,000 restrictions on the books amounting to more than 5 million words. It’s been a troubling statistic for a state that prides itself on being business friendly.

There is no doubt that when the government oversteps its role and creates too many rules business will suffer, jobs will disappear and our economy slows. In one study it was shown that by reducing regulations by 36% economic growth statewide would grow 1%. It was a powerful reminder that less red tape should forecast more prosperity.

Our new legislation tackles the problem head-on. For the first time, every business regulation in South Carolina will face a mandatory sunset review every seven years. If a rule is no longer needed, it will be removed. If it still serves a clear and justifiable purpose, it will be reauthorized — but only after a careful review. This simple but powerful concept ensures our laws keep pace with the times and are held accountable to the people they affect.

The legislation also limits state agencies in their ability to enact new regulations without legislative approval. It imposes a “two-out, one-in” rule: for every new regulation proposed, two existing ones must be eliminated. It requires stronger economic analysis and cost transparency, especially for regulations that would cost more than $1 million over five years.

As our House Speaker Murrell Smith said, “this piece of legislation should position South Carolina as a pioneer in regulatory reform, establishing our state as a model for others to follow. By implementing these reforms, we can align our regulatory framework with our state’s demographic and economic momentum, creating an environment where businesses and citizens alike can thrive and innovate today and into the future.”

Jeff Bradley is the representative for District 123 in the State House of Representatives.