A new South Carolina law lowers the threshold for when salon and personal care regulations need legislative approval—and what that means for your business.
Most salon and personal care owners in South Carolina don't realize that a new state law has fundamentally changed how regulations affecting their industry get approved. It's called H3021, the Small Business Regulatory Freedom Act, and it creates a significant checkpoint for proposed rules that could cost your business money.
Under H3021, any proposed regulation whose economic impact is assessed at $1 million or more over a five-year period cannot take effect without approval from both chambers of the South Carolina General Assembly. This is a major shift. Previously, the threshold for mandatory legislative review was much higher, making it easier for agencies to implement costly rules without a formal vote by elected representatives.
The change is codified in Section 2 of H3021, which amends Section 1-23-115(B)(2) of the South Carolina Code of Laws.
Salon and personal care regulations—whether they involve licensing, sanitation standards, equipment requirements, or staffing—often carry real costs. A new rule affecting how many salons operate statewide could easily reach $1 million in cumulative impact across the industry over five years. Under the old system, such a rule might have been implemented by an agency with minimal legislative oversight. Now, it requires a joint resolution passed by both the House and Senate.
This gives business owners and trade associations a clearer opportunity to weigh in during the legislative process, rather than fighting a regulation after it's already in effect. It also means that if your industry association or peers can demonstrate that a proposed rule will be costly, you have a formal mechanism to request legislative review and debate.
H3021 became effective upon approval by the Governor (Section 11). The provision applies to any proposed regulation going forward that meets the $1 million threshold. Agencies proposing new rules must assess their economic impact; if that assessment reaches or exceeds $1 million over five years, the rule cannot proceed without joint legislative approval.
If you're part of a salon or personal care trade association, stay informed about proposed regulations in your sector. When you hear about a new rule in development, ask whether an economic impact assessment has been completed and what the estimated cost will be. If it's at or above $1 million, you'll know that legislative approval is required—and that there's an opportunity to present your concerns to lawmakers.
Individual salon owners should also stay connected to their industry associations, which typically monitor regulatory developments and coordinate advocacy efforts. This law gives those groups a clearer platform to challenge regulations that would burden small businesses.
For a more detailed, business-specific overview of H3021 and how it affects personal care regulations, contact your state salon or personal care association.