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Subcommittee adopts amendment to H3021 to require periodic regulatory reviews and remove agency deference
Summary
A legislative subcommittee unanimously approved a strike-and-insert amendment to Bill H3021 that tasks the Legislative Audit Council with scheduling agency regulatory reviews every 5–8 years beginning July 1, 2027, and directs courts to interpret agency regulations de novo; agencies that miss deadlines would be barred from filing new regs until they comply.
A legislative subcommittee voted unanimously to adopt a strike‑and‑insert amendment to Bill H3021 that would require agencies to conduct formal regulatory reviews on a schedule set by the Legislative Audit Council and would remove judicial deference to agencies' interpretations of statutes and regulations.
The amendment, explained by a committee member identified in the transcript as the Lawmaker, would begin a staged rollout on July 1, 2027, when the Legislative Audit Council is to organize and set review schedules. By January 1, 2028, the council would begin delivering reports of its findings and recommendations to the standing committees of the House and Senate with jurisdiction over each agency's statutory authority.
"This amendment would provide that beginning with 07/01/2027, agencies would conduct a formal review of their regulations every 5 to 8 years based on a schedule established by the Legislative Audit Council," the Lawmaker said, summarizing the core schedule provision and the requirement that agencies submit repeal/amend/no‑change plans to the code commissioner and the director of the Legislative Audit Council.
The amendment also revises the courts' standard of review. "The court shall not defer to the agency's interpretation of the statute of regulation and instead shall interpret the statute of regulation de novo," the Lawmaker said, adding that after applying customary tools of interpretation the court would resolve any remaining ambiguity against increases in agency authority.
Under the amendment, if an agency fails to complete its formal review within 90 days of a missed compliance deadline, it would be prohibited from filing any proposed new regulations except for emergency rules or regulations required to comply with federal law; that prohibition would remain until the Legislative Audit Council completes the required review.
Chair emphasized stakeholder support: "I want to express my appreciation for the manufacturers and commerce organization; they have expressed strong support for this amendment," the Chair said, citing a letter from Sarah Hazard with Manufacturers and Commerce on file with the subcommittee.
Senator from Kershaw, who offered the motion to adopt the amendment, said the 90‑day compliance provision "adds some teeth" to ensure the state's regulations remain pro‑business and aligned with South Carolina priorities.
The subcommittee then moved the amendment, a member seconded, and the panel voted in favor by voice; the Chair announced the ayes had it. Members asked that the amendment be reported to the full committee as amended. The subcommittee adjourned following the vote.
The amendment will now be reported to the full committee; the transcript does not record further actions or a full‑committee schedule.
