When the General Assembly returned to Columbia on June 16 to deal with gubernatorial vetoes, a conference committee met to make final considerations to S.12, legislation to reform the state’s tax structure. The conference committee, led by Sen. Nikki Setzler (Lexington) and Rep. Brian White (Anderson), settled their differences and agreed to a conference report on S.12, which was adopted by the General Assembly. In late June, Governor Mark Sanford signed the bill into law. The final legislation will study the entire tax system at one time and make one comprehensive report back to the General Assembly.

The General Assembly overrode Governor Sanford’s veto of S.351, legislation restructuring the South Carolina State Ports Authority (SCSPA), making the bill law. The initiative removes the governor's at-will power, calls for five and 20-year strategic plans, sets qualifications for serving on the port board and lowers the board terms from seven years to five years, giving the governor the opportunity to appoint more members. The bill also calls for the expeditious completion of the Charleston port expansion and the development of the Jasper port. It also allows proceeds of land sales at Daniel Island to revert back to the Ports Authority.

The business community strongly supported overriding the veto to allow the SCSPA to operate more like a business and believes the legislation will allow port board members to make good, long-term business decisions that are in the best interest of the port and economic development in South Carolina.

In related news, the SCSPA Board of Directors has voted unanimously to hire James (Jim) Newsome III. as president and chief executive officer, effective September 1. Newsome, 53, brings more than 30 years of global shipping experience to the ports of Charleston and Georgetown. He is only the fifth leader of the SCSPA in its 67-year history.

"The selection of a strong leader to head one of our state's most powerful economic engines will ensure South Carolina remains globally competitive," said Otis B. Rawl Jr., president and chief executive officer of the South Carolina Chamber of Commerce. “Our state's port system has numerous advantages, which set us apart from other ports in the nation, including some of the deepest water on the East Coast.  Today's announcement is a step forward in creating a world-class port system that is second to none."

Congress is considering numerous pieces of legislation that could negatively impact South Carolina businesses and all South Carolinians as a whole. In fact, recent estimates find that if initiatives like the federal cap and trade, healthcare reform and Employee Free Choice Act pass Congress, South Carolina businesses could see their operating costs increase by as much as 14 percent.

Cap and Trade
Legislation that could increase household power bills in South Carolina by $100-$200 per month has passed the U.S. House of Representatives. Officially known as the American Clean Energy and Security Act, this legislation has some dangerous implications for energy use in South Carolina. A National Association of Manufacturers (NAM) study finds, in a low case projection, cap and trade legislation will reduce household income by almost $800 per year, raise gasoline prices by almost $0.25 per gallon and reduce gross state product considerably. In addition, NAM estimates passage of this legislation could result in more than 18,000 job losses by 2020.

Affordable and reliable energy are key components to the survival of the state’s businesses, the creators of jobs. With 40 percent of South Carolina’s power supplied to business alone, power costs and availability are a critical component to business’ overall success. The key is striking a healthy balance, one that protects our state’s resources without stifling economic development. The current cap and trade legislation does not maintain this balance.

The federal cap and trade legislation is a dangerous bill that will punish businesses, increase costs to homeowners and stifle state growth.

Healthcare Reform
Congress is considering a healthcare reform proposal that includes an employer mandate that would force employers to offer healthcare coverage. In addition, a new government-run health insurance plan would compete with private insurance, basically putting private health insurance out of business. As reported by the United States Chamber of Commerce, one study suggests that 130 million Americans would drop their current health insurance coverage for the government-run plan. The legislation would cover approximately 16 million Americans and cost more than $1.8 trillion.

Union Issues
The dangerous and misnamed Employee Free Choice Act, or “card check,” remains in Congress even though it has been significantly slowed by the vocal opposition of the nation’s business community. If it passes Congress, the legislation would remove an employee’s right to vote by secret ballot in union elections. In addition, “card check” would force businesses across this nation into binding arbitration if they cannot reach an agreement with a union on an initial contract after 120 days.

In South Carolina, a state constitutional amendment to protect the rights of workers to cast a vote by secret ballot is on the Senate floor and will be debated in January.

Every five years, the federal government develops a comprehensive program for offshore oil and natural gas leasing in the United States. This Five-Year Outer Continental Shelf (OCS) Leasing Program helps schedule offshore oil and natural gas lease sales. An area must be included in the Five-Year Program in order to conduct a lease sale in that area.

Over the next 20 years, the nation’s demand for energy is expected to grow at an annual rate of 1.4 percent. Despite continuing emphasis on conservation and expanding renewable sources of energy, oil and natural gas are projected to account for almost 65 percent of domestic energy consumption in 2025.

Take action to help build public support for offshore oil and natural gas development, as well as offshore alternative energy development by clicking here.