When citizens challenge the government in court, they should expect a level playing field. They’ll get it now in South Carolina after Gov. Henry McMaster signed H. 3021, legislation that requires judges to interpret the law independently and not blindly defer to the interpretations of unelected bureaucrats.
Also known as the Small Business Regulatory Freedom Act, H. 3021 eliminates judicial deference to the administrative state, ensuring the legal deck is no longer stacked against everyday citizens. The bill, which includes reforms based on Goldwater Institute polices, was sponsored by state Rep. Jeff Bradley.
For decades, courts have routinely rubber-stamped state agency interpretations of the law. But under the landmark H. 3021 reform, South Carolina judges must now apply a de novo standard—meaning they must interpret the law independently. This levels the playing field, ensuring a more faithful reading of statutory law and giving citizens a fighting chance to receive justice when a government agency violates their rights.
The Framers of the Constitution understood that the authority to make laws belongs to the people and their elected representatives, which is why they established the separation of powers. They understood that bureaucrats, if allowed to operate without meaningful accountability to voters, could effectively legislate through regulation. H. 3021 represents a vital return to these foundational principles, restoring lawmaking authority to its rightful stewards in the legislature.
Beyond ending judicial deference, H. 3021 implements strong fiscal guardrails by requiring regulatory changes costing $1 million or more over five years to be approved by the Senate and the House of Representatives via joint resolution. Additionally, the law subjects all agency regulations to a formal review every five to eight years.
Prior to H. 3021’s reforms, South Carolinians bore the cost of excessive regulation and red tape. Small business owners were forced to either absorb the regulatory costs or pass them on to consumers. Employees also faced the burden of meeting new, often arbitrary regulatory standards that hinder productivity and innovation.
“The Small Business Regulatory Freedom Act represents one of the most meaningful government accountability reforms South Carolina has enacted in years,” said Candace Carroll, the Director of Public Affairs for Americans for Prosperity-South Carolina. “This legislation brings greater transparency and legislative oversight to the rulemaking process, helping ensure government is accountable to the people and creating a stronger environment for entrepreneurs and small businesses to succeed.”
Thanks to reforms pioneered by the Goldwater Institute, Arizona became the first state in the nation to abolish judicial deference in 2018. South Carolina joins a growing multi-state movement of liberty-minded legislatures reclaiming their constitutional authority from unelected regulators.
The Goldwater Institute extends its sincere gratitude to our dedicated partners who helped champion this effort: Americans for Prosperity-SC, Pacific Legal Foundation, the Cicero Institute, Palmetto Promise Institute, the American Legislative Exchange Council (ALEC), Americans for Tax Reform, and the many South Carolinian entrepreneurs who made their voices heard. We also thank Rep. Bradley, his co-authors, and Gov. McMaster for their tireless leadership to cross this historic finish line.
Taylor Walker is the State Affairs Associate at the Goldwater Institute.
