Contents
INTRODUCTION
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ROAD FUNDING FINALLY PASSES
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ROADS BILL: WHAT’S IN H.3516
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ADDITIONAL LEGISLATIVE VICTORIES
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UNFINISHED LEGISLATIVE PRIORITIES FOR 2018
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LEGISLATIVE SCORECARD
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CHAMBER ADVOCACY TEAM
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The Charleston Metro Chamber of Commerce is committed to keeping our region competitive and improving the business climate. Through the legislative process, the Chamber works on behalf of its members to advocate for policies that contribute to the economic prosperity of Berkeley, Charleston and Dorchester counties.
This year we worked to advance legislation in the following priority areas: Infrastructure & Transportation - support comprehensive, long-term, recurring funding source to address statewide infrastructure needs Talent - fully fund the Education Finance Act, support bonding for college/ university capital and technology improvements, support targeted funding for Trident Technical College campus in Berkley and Dorchester Counties
Military Base Retention & Expansion - support full exemption of military retirement income from state tax, support funding for statewide military retention plan
Taxes & Regulation - support state incentives to attract high-impact jobs, reauthorize the Angel Investor Tax Credit program, streamline and unify the business license fee system
To view the full Legislative Agenda and Guiding Principles, visit
www.charlestonchamber.net/legislativeagenda 1
ROAD FUNDING FINALLY PASSES 2
For years, business leaders have pointed to crumbling and inadequate infrastructure as a top concern. That’s why the Chamber’s number one priority for three legislative cycles has been sustainable, recurring funding for infrastructure. Finally, after three years of debate, the House and Senate agreed on and passed a funding solution to our crumbling infrastructure. They worked through a contentious conference committee and overcame a gubernatorial veto to pass H.3516 this year. Once fully implemented, the bill will generate an estimated $633 million annually for improvements and expansions to our existing roads and bridges.
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ROADS BILL: WHAT’S IN H.3516 • Motor fuel user fee increases two cents per year for six years
• New one-time $250 out-of-state transfer fee (active duty military exempt)
• Institutes $120 fee on electric vehicles and $60 fee on hybrid vehicles
• New Infrastructure Maintenance Fee upon purchase of a motor vehicle, capped at $500
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• Tax rebate for preventive maintenance, capped at $114 million, sunsets after seven years
• Adds one at-large seat to the SCDOT commission appointed by the Governor
• Commissioners in the congressional districts to be appointed by the Governor and approved by the delegation
• Earned income tax credit, two wage earner credit, increased tuition tax credit • Increases biennial vehicle registration fees by $16 • Decreases manufacturing property tax assessment ratio from 10.5% to 9%
• Makes donor CTC (County Transportation Committee)
counties whole
Lawmakers Showing Leadership Many thanks to the leadership shown by our delegation in both the House and Senate. They had differing ideas or opinions as to how we fix our crumbling roads and bridges but never wavered in their support for increased funding, in many cases putting the state’s interest ahead of their own. No, the legislation isn’t perfect. Rarely is legislation ever perfect and no one got everything they wanted, but they all displayed leadership to help move our region and state forward.
Business at the Forefront The business community has been front and center bringing attention to the dire need of our infrastructure. Relentless pressure from businesses across this state was critical to getting this legislation across the goal line.
Power of Partnership This victory was a team effort. A coalition of business allies from across the state worked tirelessly to advance this bill. • South Carolina Chamber of Commerce • Greenville Chamber of Commerce • South Carolina Trucking Association • Carolina AGC • Alliance to Fix our Roads
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• Myrtle Beach Area Chamber of Commerce
to Overrid
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ADDITIONAL LEGISLATIVE VICTORIES
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H.3358 In 2005, the federal government passed the Real ID Act to increase security measures, updating the authentication and issuance of state driver’s licenses and state identifications. Until this legislative session, South Carolina was one of a handful of states not in compliance with the federal legislation. With the passage of this legislation, S.C. will receive an extension as SCDMV works towards full compliance, allowing you to continue to fly domestically, on military installations and access federal facilities until the program is fully implemented and new licenses are required to board domestic aircraft in October 2020.
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Real ID
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H.3726 South Carolina is currently facing, at the very least, an estimated $24 billion in unfunded liabilities in the state retirement system. This legislation is the first step to solving the problem by increasing the contributions of the employees and employers into the system to begin closing the shortfall. This isn’t a complete solution and more work must be done. Over the summer and fall, the Joint Committee on Pension System Review will continue to meet as they search for a solution that moves the state away from a defined benefit system. Key components of H.3726: • Increases and caps the employee contribution from 8.66% to 9% for state employees and 9.24% to 9.75% for police and fire fighters • Lowers the expected rate of return from 7.5% to 7.25%
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Pension System Reform
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• Increases employer contribution by 8% over the next six years • Alters the governance structure of the Investment Commission and the Public Employee Benefit Authority
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UNFINISHED LEGISLATIVE PRIORITIES FOR 2018 8
S.105 Automatic Stay The legislation removes the indefinite automatic stay making it much more difficult for outside groups to shut down the permitting process for road and development projects in the Administrative Law Court. Currently, one need only pay a $600 fee and postage to file suit and stop a project in its tracks. If enacted, this legislation provides a timeline for cases to be heard by the courts. Plaintiffs will need to show cause that the project is harmful to people or the environment as well as potentially pay a bond to cover legal costs. Despite enormous opposition from environmental groups, the bill passed the Senate this year and is before the House Judiciary Committee when they reconvene in January. The Chamber will continue to push for the passage of this legislation in the House next year.
S.404 High Impact Incentives This legislation is a jobs tax credit for qualifying legal, accounting, banking, investment services and other operations to help economic developers attract high-impact jobs that do not need or meet current incentive programs which are primarily geared toward manufacturing. S.404 passed the Senate this year and resides in the House Ways and Means Committee. The Chamber is hopeful for passage in the House early next year.
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S.62 / H.3104 Full Exemption of Military Retirement Benefits The companion bills were pre-filed before legislative session began this year and were parked in committees as the pension bill and infrastructure funding took up much of the legislatures work load. You may remember last legislative session the General Assembly increased the tax deductions for military retirement benefits significantly. Next year, the Chamber will work with the South Carolina Military Base Task Force to push for complete exemption of retirement benefits.
H.3209 Workforce Expungement This legislation addresses our state’s workforce shortage by improving pathways to employment for those previously incarcerated for non-violent offences. There are thousands of people who are unable to enter the workforce due to a minor mistake made years earlier. This bill allows for a one-time expungement of minor non-violent drug crimes helping to expand our workforce. The bill was amended to include perfecting language on expungements and to add employer liability protection. The bill passed the House and made its way to the Senate floor. In the waning days of this legislative session, one Senator put his name on the bill thus moving it to the contested calendar. During the offseason, the Chamber, along with the Greenville Chamber and State Chamber, will work with that legislator to find a compromise. If a resolution can’t be reached, we will push for the bill to be marked for special order as workforce continues to be a top priority in the state.
H.3653 Nuisance Lawsuits This legislation protects existing manufacturers and industrial facilities from frivolous litigation and legal expenses as residential growth moves closer to manufacturing facilities. As of the end of session, the bill passed the House and was being debated on the floor of the Senate. It is likely this bill will pass early next year. 10
H.3650 Business License Fee Reform This legislation streamlines and standardizes the license fee process with common payment dates. It is critical for businesses that operate in multiple municipalities to have uniformity in the business license process statewide. The legislation bogged down this year due to infighting between several statewide groups. There will be ongoing discussions between said statewide groups and local chambers over some of the sticking points with the hopes of a compromise in early 2018.
H.3722 Capital Improvement Bond Bill The monies generated by this legislation will be used by the state agencies, colleges, universities and technical schools for capital and technology improvements. Chairman of House Ways and Means, Brian White, wants to keep the bond bill under $500 million (so it won’t increase our payments on current bonds) and will shelve the bill if items are tacked on during debate on the floor. The current version of the bill totals over $498 million statewide. Problems arose on the floor when some House members wanted more money included for a particular school and the legislation stalled in the House. Next year, we will continue to push for the passage of the first bond bill in over 17 years.
H.4035 Angel Investor Tax Credit Reauthorization The Angel Investor Tax Credit provides assistance to investors who put their capital in small growing businesses. South Carolina’s current program has been beneficial in expanding business start ups. The Chamber was integral in the passage of the initial bill which will sunset in 2019. The new legislation will reauthorize the tax credit for six years and increase the cap from $5 million to $10 million. The bill was filed late in the legislative year and will be before House Ways and Means Committee when they return in January - the Chamber will push for the bill’s passage next year. 11
SENATE Sean Bennett Paul Campbell Chip Campsen Stephen Goldfinch Larry Grooms Marlon Kimpson John Matthews Margie Bright Matthews Ronnie Sabb Sandy Senn
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Ro 516 Vet ads B o O ill ver ride
Key: Y – voted with us N – voted against us NV – did not vote NV / A – did not vote excused absence
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Y Y NV / A NV / A Y Y Y Y Y Y
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Y Y NV Y NV Y Y Y Y NV Y Y Y Y Y Y Y Y
HOUSE Katie Arrington Lin Bennett Robert Brown William Cogswell Bill Crosby Joe Daning Sylleste Davis Wendall Gilliard Lee Hewitt Joe Jefferson Patsy Knight David Mack Peter McCoy Chris Murphy Samuel Rivers Mike Sottile Leon Stavrinakis Seth Whipper
CHAMBER ADVOCACY TEAM The Chamber’s business advocacy team is your voice in the halls of government, representing you at the local, state and federal levels. They are working every day to ensure our operating climate is supportive of your business.
Mary Graham
Ian Scott
Chief Advancement Officer mgraham@charlestonchamber.org 843.805.3043
Senior Vice President of Advocacy iscott@charlestonchamber.org 843.805.3089
Our team leader, Mary Graham, directs advancement efforts organization wide and leads military affairs and our federal lobbying agenda.
The newest addition to the Chamber’s advocacy team, Ian is focused on driving our regional policy agenda and building relations with local partners and elected officials.
George Ramsey
Cassie Flanick
Business Lobbyist gramsey@charlestonchamber.org 843.805.3116
Advancement Coordinator cflanick@charlestonchamber.org 843.805.3097
Our advocacy efforts at the State House are led by Chamber Lobbyist George Ramsey. George is in Columbia each day the legislature is in session, advocating on behalf of the region’s business community.
Communications are sent, busy schedules are tamed and meetings are productive thanks to Cassie’s tireless efforts in support of the Chamber’s advancement agenda.
4500 Leeds Avenue, Suite 100 N. Charleston, SC 29405 843.577.2510 mail@charlestonchamber.org
www.charlestonchamber.net