A new South Carolina law gives the General Assembly final say over regulations that cost small businesses $1 million or more—and most transportation owners don't know it exists.
Most South Carolina trucking and transportation owners assume that once a state agency proposes a regulation, it becomes law if the agency says it's justified. That assumption just changed—and few business owners have noticed.
In 2024, the South Carolina General Assembly passed H3021, the Small Business Regulatory Freedom Act. Buried in that bill is a provision that fundamentally shifts how expensive new regulations reach your business. Here's what you need to understand.
Starting immediately upon the Governor's approval, any proposed regulation whose economic impact is assessed at $1 million or more over a five-year period cannot take effect without explicit approval from both the South Carolina House and Senate, acting together through a joint resolution.
In plain terms: if a state agency wants to impose a rule that will cost the trucking and transportation industry $1 million or more over five years, the legislature must vote to allow it. The agency cannot implement it on its own authority.
Regulations affecting transportation—whether they involve vehicle maintenance standards, driver licensing, fuel tax compliance, or safety protocols—often carry significant compliance costs. Under the old system, once an agency determined a rule was necessary, your company had to comply, even if the cumulative burden across the industry was substantial.
Now, your industry has a second checkpoint. Before a costly regulation binds your business, elected representatives in both chambers must affirmatively vote yes. That creates an opportunity for industry groups, trade associations, and individual businesses to make the case to lawmakers about real-world impacts before a rule takes effect.
This is not a blanket exemption from regulation. It is a requirement that high-cost rules get legislative review and approval—a step that gives small-business voices a formal place in the process.
The provision is codified in Section 2 of H3021, which amends South Carolina Code Section 1-23-115(B)(2). It takes effect upon the Governor's approval of the bill. There is no delayed implementation window; the rule applies to any proposed regulation submitted after the bill's effective date.
If your company or trade association tracks regulatory developments in South Carolina, add this to your monitoring list. When state agencies begin proposing rules that could affect transportation operations, ask whether the economic impact assessment meets or exceeds $1 million over five years. If it does, the rule will require General Assembly approval before it can bind you—which means there will be a legislative window to weigh in.
Keep records of compliance costs for existing regulations. If new rules are proposed that build on those costs, that documentation helps make the case to lawmakers about cumulative burden.
For detailed guidance tailored to your specific operations, contact your state trade association or a regulatory affairs professional familiar with South Carolina small-business law.
Source: H3021, Small Business Regulatory Freedom Act, Section 2, amending S.C. Code § 1-23-115(B)(2).