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"Navigating Legal Complexity: How AI Legalese Decoder Can Assist with Alan Jernigan’s Testimony on the South Carolina Small Business Regulatory Freedom Act"

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Testimony Submitted to the South Carolina Senate Judiciary Subcommittee

By Alan Jernigan, Director of the ALEC Commerce, Insurance and Economic Development Task Force

Introduction

I am Alan Jernigan, serving as the Director of the Commerce, Insurance, and Economic Development Task Force at the American Legislative Exchange Council (ALEC). It is an honor to present my written testimony to the South Carolina Senate Judiciary Subcommittee today. My goal is to share ALEC’s nonpartisan research and analysis concerning the vital reforms encompassed within the Small Business Regulatory Freedom Act.

About ALEC

ALEC is a nonprofit and nonpartisan organization, proudly headquartered in Virginia. Our membership comprises state legislators from across the United States, all of whom are committed to promoting the fundamental principles of limited government, free markets, and federalism. These values not only strengthen state governments but also greatly benefit citizens.

The CIED Task Force’s Mission

The ALEC Commerce, Insurance and Economic Development (CIED) Task Force is an assembly of state legislators and policy experts who recognize that excessive regulation can stifle innovation and disproportionately affect small businesses. Our members are united in the belief that government should operate with utmost transparency, accountability, and efficiency, thereby ensuring that taxpayer dollars are spent wisely and responsibly.

Highlights of the Small Business Regulatory Freedom Act

Today, I will elaborate on some key reforms included in the Small Business Regulatory Freedom Act that are designed to enhance government efficiency and, in turn, bolster economic freedom. These reforms are not only aligned with the model policies designed by ALEC’s CIED Task Force members but are also featured prominently in ALEC’s Essential Policy Solutions for 2026. Collectively, this reform package aims to curb agency overreach in South Carolina, restoring legislative authority to elected lawmakers.

REINS-Style Safeguard

The first noteworthy reform I’d like to discuss is the REINS-style safeguard embedded in the legislation. This provision guarantees that legislative authority remains firmly in the hands of elected officials rather than unelected bureaucrats. It mandates legislative approval for any rules that have a significant economic impact. The ALEC model Targeted Legislative Review Act supports this by establishing a Legislative Economic Analysis Unit to evaluate proposed rules and requiring approval for any rule deemed as a "major rule." Last year alone, states such as North Carolina, Louisiana, Oklahoma, Utah, and Kentucky enacted similar REINS-style reforms, enhancing accountability across the board.

Regulatory Review for Efficiency

The proposed legislation also aims to increase government efficiency significantly by instituting a review process where two existing regulations must be eliminated for every new one added. This method aligns seamlessly with ALEC’s model Act to Establish a Cap on Government Red Tape. Commonly, new regulatory measures are layered atop outdated or duplicative ones, which complicates the regulatory landscape. This reform works toward reducing the overall regulatory burden and ensures that any new requirements introduced are balanced by the removal of unnecessary or obsolete regulations.

Regulatory Sunset Provision

The third major reform I want to highlight is the introduction of a regulatory sunset provision. Similar to ALEC’s model Regulatory Sunset Act, this feature establishes a mechanism for automatically phasing out regulations that are not renewed. This ensures that only the necessary and effective regulations remain in place, while outdated, burdensome rules are subject to timely review and removal.

Judicial Deference Reform

Finally, I would like to address the significant section concerning the prohibition of courts deferring to agency interpretations of statutes or rules. Instead, the bill directs the judiciary to interpret the language de novo, thereby removing any bias in favor of agencies. This reform reinforces the independent role of the judiciary in limiting agency power, particularly when statutory language may be ambiguous. This measure has already seen success in states like Louisiana, Texas, Oklahoma, Missouri, and Kentucky, all of which enacted similar reforms in 2025.

The Role of AI legalese decoder

In navigating the complexities of legal texts and proposed regulations, tools like the AI legalese decoder can prove invaluable. By translating legal jargon into plain language, this AI-driven tool enables legislators, stakeholders, and the public to better understand the implications of the Small Business Regulatory Freedom Act and other legislative reforms. This ease of understanding ensures informed public discourse and can aid lawmakers in refining the proposed reforms, ensuring they resonate well with the constituents they serve.

Conclusion

In conclusion, free markets thrive best when government intrusion is minimized. To achieve this essential goal, we urge South Carolina legislators to guarantee that all major agency rules receive necessary legislative approvals, methodically review existing rules to eliminate those that have become redundant or burdensome, and restore judicial independence by prohibiting courts from deferring to agency interpretations of laws.

Thank you for the opportunity to present my testimony this morning.

Respectfully submitted,

Alan Jernigan
Director, Commerce, Insurance and Economic Development Task Force
American Legislative Exchange Council (ALEC)

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