A new South Carolina law gives the General Assembly—and small-business advocates—power to block costly regulations before they take effect.
Most salon and personal care owners in South Carolina don't realize that a new state law has fundamentally shifted how regulations get approved—and handed small businesses a tool they didn't have before.
Here's what happened: South Carolina's H3021, the Small Business Regulatory Freedom Act, inserted a new requirement into state law that affects any regulation whose economic impact is assessed at $1 million or more over a five-year period. Before such a regulation can take effect, both chambers of the General Assembly must affirmatively approve it by joint resolution.
Until now, state agencies could propose and adopt regulations with relatively little legislative oversight. Under the old system, the General Assembly could theoretically block a rule, but the burden was on lawmakers to act. The new provision flips that burden: now, if a regulation's cost reaches the $1 million threshold, the agency cannot move forward without explicit legislative approval.
For salon and personal care businesses, this creates a meaningful checkpoint. If a state agency—say, the Department of Labor, Licensing and Regulation—proposes a new rule affecting licensing, sanitation standards, staffing, or operations, and that rule is projected to cost the industry $1 million or more over five years, it will land on the General Assembly's desk for a vote. That's your window to organize, testify, and lobby lawmakers directly.
The provision applies to any "rule" as defined by South Carolina's Administrative Procedures Act. That includes licensing requirements, operational standards, and compliance rules issued by state agencies. The $1 million threshold is measured across the entire regulated industry in the state, not per business—so even if individual salons bear modest costs, if the statewide impact is significant, the rule triggers the requirement.
Smaller agencies and less-noticed rulemakings may still slip through if their economic impact falls below $1 million. But major regulatory changes—the kind that reshape how you operate—now require legislative sign-off.
The law became effective upon the Governor's approval. The specific amendment is found in Section 2 of H3021, which modified Section 1-23-115(B)(2) of the South Carolina Code of Laws.
Stay informed about proposed regulations in your sector. When a rule is published for public comment, check whether an economic impact statement is included and what it says. If a regulation affecting your business is headed to the General Assembly for a joint resolution vote, that's your cue to contact your representatives and senators. Trade associations and industry groups often coordinate these efforts, so joining or monitoring your local salon association is a practical step.
This law doesn't eliminate regulations—it adds a legislative checkpoint. But for small businesses, checkpoints mean opportunity to be heard.
For a detailed guide to how this law works and how to track proposed regulations, contact your state salon and personal care trade association or the South Carolina Small Business Chamber of Commerce.