The Committee on Judiciary proposes the following amendment (SJ-3021.PB0010S):

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

SECTION 1. This act may be cited as the "Small Business Regulatory Freedom Act".

SECTION 2. Section 1-23-115(B) of the S.C. Code is amended to read:

 (B)(1) A state agency must submit to the Office of Research and Statistics of Revenue and Fiscal Affairs Office, a preliminary assessment report on regulations which have a substantial economic impact. Upon receiving this report the office may require additional information from the promulgating agency, other state agencies, or other sources. A state agency shall cooperate and provide information to the office on requests made pursuant to this section. The office shall prepare and publish a final assessment report within sixty days after the public hearing held pursuant to Section 1-23-110. The office shall forward the final assessment report and a summary of the final report to the promulgating agency and the Code Commissioner.
  (2) In addition to the requirements of item (1), if the final assessment report indicates that the regulation's economic impact is estimated to equal or exceed ten million dollars over five years, then the Senate and the House of Representatives are required to approve the regulation by a joint resolution.

SECTION 3. Section 1-23-120(J) of the S.C. Code is amended to read:

 (J) Each state agency, which promulgates regulations or to which the responsibility for administering regulations has been transferred, shall by July 1, 19972027, and every five to eight years thereafter, based on a schedule established by the Legislative Audit Council, conduct a formal review of all regulations which it has promulgated or for which it has been transferred the responsibility of administering, except that those regulations described in subsection (H) are not subject to this review. Upon completion of the review, the agency shall submit to the Code Commissioner and the Director of the Legislative Audit Council a report which identifies those regulations:
  (1) for which the agency intends to begin the process of repeal in accordance with this article;
  (2) for which the agency intends to begin the process of amendment in accordance with this article; and
  (3) which do not require repeal or amendment.
 Nothing in this subsection may be construed to prevent an agency from repealing or amending a regulation in accordance with this article before or after it is identified in the report to the Code Commissioner and the Director of the Legislative Audit Council.

SECTION 4. Section 1-23-270(F) of the S.C. Code is amended to read:

 (F)(1) Each state agency, which promulgates regulations or to which the responsibility for administering regulations has been transferred, shall by July 1, 19972027, and every five to eight years thereafter, based on a schedule established by the Legislative Audit Council, conduct a formal review of all regulations which it has promulgated or for which it has been transferred the responsibility of administering, except that those regulations described in Section 1-23-120(H) are not subject to this review. Upon completion of the review, the agency shall submit to the Code Commissioner and the Director of the Legislative Audit Council a report which identifies those regulations:
   (a) for which the agency intends to begin the process of repeal in accordance with this article;
   (b) for which the agency intends to begin the process of amendment in accordance with this article; and
   (c) which do not require repeal or amendment.
  Nothing in this subsection may be construed to prevent an agency from repealing or amending a regulation in accordance with Article 1 before or after it is identified in the report to the Code Commissioner.
  (2) Regulations that take effect on or after the effective date of this article must be reviewed within five years of the publication of the final regulation in the State Register and every five to eight years after that, based on a schedule established by the Legislative Audit Council, to ensure that they minimize economic impact on small businesses in a manner consistent with the stated objectives of applicable statutes.
  (3) In reviewing regulations to minimize their economic impact on small businesses, the agency shall consider the:
   (a) continued need for the regulation;
   (b) nature of complaints or comments received concerning the regulation from the public;
   (c) complexity of the regulation;
   (d) extent to which the regulation overlaps, duplicates, or conflicts with other federal, state, and local governmental regulations; and
   (e) length of time since the regulation has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the regulation.

SECTION 5. Section 1-23-380(5) of the S.C. Code is amended to read:

 (5)(a) The court may not substitute its judgment for the judgment of the agency as to the weight of the evidence on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:
   (a)(i) in violation of constitutional or statutory provisions;
   (b)(ii) in excess of the statutory authority of the agency;
   (c)(iii) made upon unlawful procedure;
   (d)(iv) affected by other error of law;
   (e)(v) clearly erroneous in view of the reliable, probative, and substantial evidence on the whole record; or
   (f)(vi) arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
  (b) In interpreting a statute or regulation, the court shall not defer to the agency's interpretation of the statute or regulation and instead shall interpret the statute or regulation de novo. After applying all customary tools of interpretation, the court shall resolve any remaining ambiguity against increased agency authority.

SECTION 6. Section 1-23-610 of the S.C. Code is amended to read:

 Section 1-23-610. (A)(1) For judicial review of a final decision of an administrative law judge, a notice of appeal by an aggrieved party must be served and filed with the court of appeals as provided in the South Carolina Appellate Court Rules in civil cases and served on the opposing party and the Administrative Law Court not more than thirty days after the party receives the final decision and order of the administrative law judge. Appeal in these matters is by right.
  (2) Except as otherwise provided in this chapter, the serving and filing of the notice of appeal does not itself stay enforcement of the administrative law judge's decision. The serving and filing of a notice of appeal by a licensee for review of a fine or penalty or of its license stays only those provisions for which review is sought and matters not affected by the notice of appeal are not stayed. The serving or filing of a notice of appeal does not automatically stay the suspension or revocation of a permit or license authorizing the sale of beer, wine, or alcoholic liquor. Upon motion, the administrative law judge may grant, or the court of appeals may order, a stay upon appropriate terms.
 (B) The review of the administrative law judge's order must be confined to the record. The court may not substitute its judgment for the judgment of the administrative law judge as to the weight of the evidence on questions of fact. The court of appeals may affirm the decision or remand the case for further proceedings; or, it may reverse or modify the decision if the substantive rights of the petitioner have been prejudiced because the finding, conclusion, or decision is:
  (a)(1) in violation of constitutional or statutory provisions;
  (b)(2) in excess of the statutory authority of the agency;
  (c)(3) made upon unlawful procedure;
  (d)(4) affected by other error of law;
  (e)(5) clearly erroneous in view of the reliable, probative, and substantial evidence on the whole record; or
  (f)(6) arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
 (C) In interpreting a statute or regulation, the court shall not defer to the agency's interpretation of the statute or regulation and instead shall interpret the statute or regulation de novo. After applying all customary tools of interpretation, the court shall resolve any remaining ambiguity against increased agency authority.

SECTION 7. Chapter 23, Title 1 of the S.C. Code is amended by adding:

Article 4

Regulatory Review by Legislative Audit Council

 Section 1-23-800. (A) Beginning July 1, 2027, the Legislative Audit Council shall schedule state agencies as defined in Section 2-15-50 so that all state agencies' regulations are formally reviewed at least once every five to eight years.
 (B) Based on the schedule it establishes, the Legislative Audit Council shall conduct a formal review of all regulations promulgated by state agencies as defined in Section 2-15-50. The review shall determine:
  (1) if the regulations are within the scope of the statutory authority for their promulgation; and
  (2) if the regulations continue to operate under their statutory authority or are obsolete.
 (C) After receiving the reports required by Sections 1-23-120(J) and 1-23-270(F) and any reports and recommendations from the Small Business Regulatory Review Committee, the Legislative Audit Council may request from the agencies any other information needed to complete its formal reviews.
 (D)(1) By January 1 each year, beginning January 1, 2028, the Legislative Audit Council shall deliver a report of its findings and recommendations from the agencies' formal reviews to the standing committees of the Senate and House of Representatives that have jurisdiction over each agency's statutory authority.
  (2) In determining the order in which agencies' formal reviews are conducted, the Legislative Audit Council may consult with the President of the Senate, the Speaker of the House of Representatives, the Legislative Oversight Committees in the Senate and House of Representatives, and the chairmen of standing committees in the Senate and House of Representatives.
 (E) Included in the Legislative Audit Council's formal review report, each agency shall submit a plan for each regulation it intends to amend or repeal and the timeline for taking action on the regulations.

 Section 1-23-810. (A) If an agency fails to complete the formal review in accordance with the Legislative Audit Council's schedule, within thirty days of the missed deadline, the Legislative Audit Council must notify the agency of noncompliance.
 (B)Within thirty days of receipt, the agency must submit a written certification of noncompliance to the President of the Senate and the Speaker of the House of Representatives. The certification must identify the specific regulations not yet reviewed, the reasons for noncompliance, and a remedial schedule for completing the review.
 (C) Failure to complete the formal review within ninety days of the missed deadline for compliance results in the agency being prohibited to file any proposed new regulations except for emergency regulations or regulations to comply with federal law. The prohibition remains in effect until the formal review is completed.
 (D) Upon a finding of good cause shown by the agency, the General Assembly by concurrent resolution may waive the prohibition in subsection (C). Any waiver granted under this subsection must specify its duration and not exceed one hundred eighty days.

SECTION 8. Section 2-15-40 of the S.C. Code is amended to read:

 Section 2-15-40. The Council shall be in charge of a Directordirector who shall be elected by a majority vote of the Council and he shall hold office for a term of four years and until hisa successor shall have been elected and qualifies. The Directordirector shall be chosen solely on the grounds of fitness to perform the duties assigned to him and shall possess the following minimum qualifications: (a) a Baccalaureate Degree from an accredited college or university; (b) at least five years of experience in public, industrial, or governmental accounting, or auditing with at least three years in a responsible managerial capacity. No member of the General Assembly nor anyone who shall have been a member for two years previously shall be appointed as Directordirector. The Director director shall act as Secretarysecretary for the Council and he shall have authority to employ, with the approval of the Council, such technical, clerical, and stenographic assistanceaudit staff as may be necessary to carry out the duties of the office; provided, however, that at least one staff member shall be qualified to audit or to supervise the audit of State programs and activities in order to determine if funds have been used in a faithful, effective, economical and efficient manner.

SECTION 9. Section 2-15-60 of the S.C. Code is amended to read:

 Section 2-15-60. It is the duty of the council:
 (a) To respond to any request concerning a programmatic or fiscal matter or information related to the purposes set forth in Section 2-15-50 which may be referred to it by the General Assembly or any of its members or committees.
 (b) To conduct audits, if authorized by the council, upon request of the General Assembly or either of its respective bodies, a standing committee, the Speaker of the House, the President of the Senate, or not less than five members of the General Assembly, and to submit a report containing its findings and recommendations to the requesting entity or persons and to any member of the General Assembly who may request a copy.
 (c) To assist the General Assembly in the performance of its official functions by providing its members and committees with impartial and accurate information and reports concerning the efficiency, programmatic, or fiscal problems matters presented to them as members of the General Assembly.
 (d) To establish a system of post audits for all fiscal matters and financial transactions for all state agencies of the state government.
 (e) To establish a regular schedule to formally review all agency regulations every five to eight years as provided in Article 4, of Chapter 23 in Title 1. Nothing in this subsection limits, abridges, or otherwise affects the provisions of this section or this chapter.

SECTION 10. This act takes effect upon approval by the Governor.

Renumber sections to conform.

Amend title to conform.