Alan Jernigan Testimony in South Carolina: Small Business Regulatory Freedom Act
ALEC Commerce, Insurance and Economic Development Task Force Director Alan Jernigan submitted written testimony to the South Carolina Senate Judiciary Subcommittee regarding the research and analysis on reforms included in the Small Business Regulatory Freedom Act.
You can read his testimony below.
Chairman Campsen and Members of the Subcommittee:
I am Alan Jernigan, Director of the Commerce, Insurance, and Economic Development Task Force at the American Legislative Exchange Council (ALEC). I appreciate the opportunity to speak with you today and share ALEC’s nonpartisan research and analysis on reforms included in the Small Business Regulatory Freedom Act.
ALEC is a nonprofit; nonpartisan organization headquartered in Virginia made up of state legislators from across the country. Our mission is to promote the principles of limited government, free markets, and federalism – values that strengthen both states and their citizens.
The ALEC Commerce, Insurance and Economic Development (CIED) Task Force is comprised of state legislators and policy experts who recognize that excessive regulation stifles innovation and disproportionately harms small businesses. Members of the task force believe that government should operate with transparency, accountability, and efficiency to ensure taxpayer dollars are used responsibly.
Today, I’ll be highlighting the key reforms within the Small Business Regulatory Freedom Act that increase government efficiency and ultimately enhance economic freedom. These reforms also align with model policies created by members of the ALEC CIED Task Force and are all featured in ALEC’s Essential Policy Solutions for 2026. Together, this reform package would curb agency overreach in South Carolina and return authority to elected lawmakers.
The first reform I would like to highlight is the REINS-style safeguard in the bill. This reform ensures that lawmaking authority remains with legislators, rather than unelected bureaucrats, by requiring legislative approval of rules with significant economic impact. Similarly, the ALEC model Targeted Legislative Review Act aligns with this approach by establishing a Legislative Economic Analysis Unit to evaluate proposed rules and requiring legislative approval for any rule deemed a “major rule.” Last year, North Carolina, Louisiana, Oklahoma, Utah, and Kentucky passed similar REINS-style reforms.
Next, the proposed legislation increases government efficiency by reviewing two regulations for every one added. This approach aligns with ALEC’s model Act to Establish a Cap on Government Red Tape. Too often, new regulations are layered on top of outdated or duplicative rules. This reform reduces regulatory volume and ensures that any new regulatory burden is offset by the elimination of unnecessary or obsolete requirements.
The third reform is the regulatory sunset provision. Similar to the ALEC model Regulatory Sunset Act, this provision creates a process to automatically sunset regulations that are not renewed. This ensures that only necessary and effective rules remain in place, while outdated or burdensome regulations are regularly reviewed and removed.
The final section that I would like to highlight is the prohibition of courts deferring to agency interpretation of statutes or rules. Instead, the bill directs the courts to interpret the language de novo. Like the ALEC model Judicial Deference Reform Act, this reform removes bias in favor of agencies and reinforces the judiciary’s independent role in limiting agency power when statutory language is unclear. Louisiana, Texas, Oklahoma, Missouri, and Kentucky successfully passed this reform in 2025.
Free markets operate best without government interference. To help achieve this goal, South Carolina legislators can ensure that all major agency rules receive legislative approval, systematically review existing rules and regulations to eliminate those that are outdated or overly burdensome, and restore judicial autonomy by prohibiting courts from deferring to an agency’s interpretation of a law.
Thank you for the opportunity to speak this morning.
Respectfully submitted,
Alan Jernigan
Director, Commerce, Insurance and Economic Development Task Force
American Legislative Exchange Council (ALEC)