BIPEC LEGISLATIVE YEAR IN REVIEW

2014 LEGISLATIVE SESSION IN REVIEW summer reading camps. Further, the General Assembly allocated $2.5 million for STEM education and workforce development initiatives at all 16 technical colleges in In late May, with just three days remaining in the two-year legislative session, the . Senate calendar was still over 60 pages long with many business priorities bogged down, meaning legislation that did not pass would have to begin the process all over Led by Senator Harvey Peeler (Cherokee), the Read to Succeed Act, a package of again in 2015. Thus was the theme for the 2014 legislative session, as many business initiatives to help children adequately read by the third grade, was signed into law issues passed out of committee but became contested on the floor. 2014 is also an by Governor Haley. It has been proven that before third grade, students “learn to election year for the House of Representatives and Constitutional Officers, so major read.” After the third grade, students “read to learn.” The Read to Succeed Act will reform legislation realistically had little chance of passing. Unfortunately, the General help remediate struggling third grade readers with a year of literacy instruction. It also Assembly spent a good deal of the session debating issues, like nullification of the requires reading instruction training for teachers and offers summer reading camps. The (ACA) and Common Core State Standards, with action taken Act also expands four-year-old kindergarten as state funding is available. on few items. Governor Haley also signed legislation that moves the 12 Regional Education Centers In all, it was a legislative session that saw some forward movement, but many business (RECs) from the South Carolina Department of Education to the South Carolina priorities stalled. Department of Commerce. RECs are located throughout the state to serve students, adult learners, parents, educators, employers and community members, connecting INFRASTRUCTURE DOESN’T CROSS FINISH LINE them with the information, resources and services they need. Governor Haley also approved legislation that eliminates the requirement that high school students pass the high school exit exam. The legislation instead requires students to complete a Work As the state’s infrastructure continues to decline and as a report recently ranked South Keys assessment and ACT testing beginning in 2015. Carolina rural roads the deadliest in the nation, the General Assembly postponed addressing infrastructure funding this year. While there were lengthy discussions, led After months of debate, compromise legislation on Common Core State Standards by Senator Ray Cleary (Georgetown), and a bill set for Special Order in the Senate on passed the General Assembly and was signed by the governor. The legislation keeps the infrastructure funding, ultimately no legislation passed. current Common Core State Standards in place for math and English and language arts for the next school year. During that time, a review of the standards will be However, it looks like there may be a renewed commitment to addressing this No.1 completed. Any new state developed standards must be in place by the 2015-16 school issue in 2015 with a comprehensive plan, similar to the Road Map to the Future that year. Additionally, any new standards or revisions must be approved by the Education the South Carolina Chamber of Commerce, along with 13 other business associations, Oversight Committee as well as the General Assembly. The State Department of released in 2013. This summer, and into the fall, the Chamber will continue to work Education would also be required to notify the governor and General Assembly of any with all interested parties to elevate the dire need for infrastructure funding and begin plans to change the existing standards. discussing a comprehensive infrastructure funding package for the 2015 legislative session. The legislation also removes South Carolina from the Smarter Balance Assessment Consortium and includes a provision to create a review committee under the state EDUCATION AND WORKFORCE DEVELOPMENT Budget and Control Board for the recommendation of an assessment system. The MAKE STRIDES chair of the South Carolina Chamber of Commerce Board of Directors has a seat on the review committee. The review committee must return its recommendations on an assessment system by September 30, 2014. The General Assembly passed several initiatives this year to improve education and workforce development in the Palmetto State. First, Governor included several education and technology priorities in her executive budget, and the final POLITICS OVERTAKE CERTIFICATE OF NEED 2014-15 state budget included funding to expand four-year-old kindergarten for at- risk students and more dollars for higher education. The state budget also included Over the past year, numerous health care related businesses made substantial investments $29 million for reading coaches in elementary schools and $4.5 million to expand in land, buildings and personnel based on the understanding that the Certificate of (continued page 6) 1 2014 Legislative Scorecard & Year In Review 2014 Legislative Scorecard & Year In Review 2 SENATE VOTE KEY: SCORECARD √ Business Positive Vote X Business Negative Vote NV Not Voting A Abstain

SENATOR S.22 H.3410 S.826 (Special Order) S.516 H.3101 H.3592 H.3919 S.1099 H.4604 S.516 H.3412 H.3893 35) (Amendment H.4701 S.1189 S.1306 S.986 H.4701 H.4702 H.3428 Score P Present

 Denotes THOMAS ALEXANDER  √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ NV √ √ √ 100 Recipient KARL ALLEN √ √ √ X √ √ √ √ √ √ √ √ √ √ √ X √ √ √ 89 of Business Advocate SEAN BENNETT √ √ √ √ √ √ √ NV √ √ √ √ X √ √ √ X √ √ 89 Award X √ √ X X √ √ A √ X X √ X √ X √ X X X 44

KEVIN BRYANT X √ √ X X √ √ √ √ NV X √ X √ X √ X X X 50 SC Restructuring Act of 2014 (S.22) – PAUL CAMPBELL  √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 100 By a vote of 39 to 4, the Senate adopted the conference report to create the CHIP CAMPSEN √ √ √ X √ √ √ √ √ X √ √ NV √ X √ √ √ √ 83 Department of Administration, a cabinet- RAY CLEARY √ √ √ √ √ √ √ √ NV NV √ √ X √ √ √ √ √ √ 94 level agency that will report to the CREIGHTON COLEMAN √ √ √ X NV √ √ NV NV √ √ NV NV NV √ X √ √ √ 85 Governor. (Chamber Vote – aye; Vote # 693; 1/21/2014) √ √ √ X X √ √ √ √ X √ √ X √ NV √ X X √ 67 JOHN COURSON  √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 100

Regional Education Centers (H.3410) – √ NV NV NV √ √ √ √ √ √ √ √ NV √ X √ √ √ √ 93 The Senate passed legislation to move TOM DAVIS √ √ √ √ X √ √ √ √ √ √ √ X √ X √ √ √ √ 84 the Regional Education Centers from the Department of Education to the MIKE FAIR √ √ √ √ X √ √ √ √ √ X √ X NV X √ √ √ √ 78 Department of Commerce by a vote of 44 √ √ √ √ √ √ √ √ NV √ √ √ X √ √ √ √ √ √ 94 to 0. (Chamber Vote – aye; Vote # 764; √ √ √ √ X √ √ √ √ X √ √ X √ √ √ √ √ √ 84 3/4/2014) WES HAYES √ √ √ √ √ √ √ √ √ √ √ √ X √ √ √ √ √ √ 95

Splitting of Drug Tests for Workers' √ √ √ √ √ √ √ NV √ √ √ √ X √ X √ X √ √ 83 Compensation Rates (S.826) – The √ √ √ X √ √ √ √ √ √ √ √ √ √ √ X √ X √ 84 Senate unanimously passed legislation  √ √ NV √ √ NV NV NV NV √ √ √ √ √ √ NV √ √ √ by a vote of 41 to 0 to codify the standard DARRELL JACKSON 100 industry practice of splitting a single drug KEVIN JOHNSON √ √ √ √ √ NV √ √ √ √ √ √ √ √ √ X √ √ √ 94

test sample from employees so employers √ √ √ X NV √ √ P √ √ NV √ √ √ √ X √ √ √ 88 may be deemed a “certified drug-free √ √ √ √ √ √ √ √ √ √ √ NV √ √ √ X √ √ √ 94 workplace.” (Chamber Vote – aye; Vote # 768; 3/4/2014) √ √ NV √ √ NV √ √ √ √ √ √ √ √ √ X √ √ √ 94 √ √ √ √ √ √ √ NV √ √ √ √ √ √ √ X NV NV NV 93 Set Read to Succeed Act for Special LARRY MARTIN  √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 100 Order (S.516) – By a vote of 32 to 12, the Senate set the Read to Succeed Act for X √ √ X X √ √ √ √ X X √ X √ X √ X X X 47 Special Order, giving the legislation priority SHANE MASSEY √ √ √ √ √ √ √ √ NV √ √ √ X √ NV √ X X √ 82

status on the Senate calendar. (Chamber JOHN MATTHEWS  √ √ NV √ √ √ √ √ √ √ NV √ √ NV NV NV NV NV NV 100 vote – aye; Vote # 769; 3/4/2014) THOMAS MCELVEEN √ √ √ X √ √ √ √ √ NV √ √ √ √ √ X √ √ √ 89 Defeat of Nullification Bill (H.3101) – *YANCEY MCGILL √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ X √ √ √ 95 By a vote of 9 to 33, the Senate defeated √ √ √ √ √ √ √ √ √ √ NV √ √ √ √ X √ √ √ 94 legislation aimed at stopping the BILLY O'DELL  NV √ √ √ NV √ √ √ √ √ √ NV √ √ √ NV √ NV √ 100 implementation of the Affordable Care Act in South Carolina, but in reality HARVEY PEELER √ √ √ √ √ √ √ √ √ √ √ √ X √ X √ √ √ √ 89 would have put businesses in jeopardy of CLEMENTA PINCKNEY NV √ √ √ NV √ √ √ √ √ √ √ √ √ √ X √ √ √ 94 lawsuits and increased complexity in the LUKE RANKIN √ √ √ √ √ NV √ √ √ √ √ √ √ NV NV X √ √ NV 93 health care arena. (Chamber Vote – nay; Vote # 846; 3/19/2014) GLENN REESE √ NV NV √ √ √ √ NV √ √ √ √ √ √ √ X √ √ √ 94 JOHN SCOTT √ √ √ X √ √ √ √ √ √ NV √ √ √ √ NV √ √ √ 94

Energy Independence & Sustainable NIKKI SETZLER √ √ √ √ √ NV √ √ √ √ √ √ √ √ √ X √ √ √ 94 Construction Act of 2007 (H.3592) – √ √ √ X X NV √ NV NV √ NV √ X √ X √ √ √ √ 73 By a vote of 40 to 0, the Senate passed legislation outlining the process for √ √ √ X √ √ √ √ √ √ NV √ NV √ √ NV √ √ √ 94 adopting standards for LEED Certification PAUL THURMOND X √ √ √ √ √ √ √ √ X √ √ X √ X X X X √ 63 or Green Globes Rating system for √ √ √ √ √ √ √ √ √ √ √ √ X √ X √ X √ √ 84 construction of facilities, thereby ending the current practice of automatic adoption NV √ √ √ X √ √ NV √ NV NV NV X √ X √ √ √ √ 79 of new standards. (Chamber Vote – aye; KENT WILLIAMS √ √ √ √ √ √ √ √ NV √ NV √ √ √ √ X √ √ √ 94 Vote # 858; 3/26/2014) TOM YOUNG √ √ √ √ √ √ √ √ √ √ √ √ X √ X √ X √ √ 84

* Senator Yancey McGill ascended to the office of Lieutenant Governor on June 18, 2014. (continued page 5) 1 2014 Legislative Scorecard & Year In Review 2014 Legislative Scorecard & Year In Review 2 HOUSE SCORECARD

(Amendment 5A) VOTE KEY: √ Business REPRESENTATIVE S.22 H.3925 H.4604 H.4371 H.3919 H.4607 H.3893 S.1189 S.826 S.1099 S.516 H.4701 H.4701 H.4702 H.3428 Score Positive Vote TERRY ALEXANDER √ X NV NV NV NV X √ NV √ NV √ √ √ NV 75 X Business RITA ALLISON  √ √ √ √ √ NV √ √ √ √ √ √ √ √ √ 100 Negative Vote CARL ANDERSON √ X √ √ √ √ X √ √ √ √ √ X √ √ 80 NV Not Voting MIKE ANTHONY  √ √ √ √ √ √ √ √ √ √ √ NV NV NV √ 100  Denotes Recipient TODD ATWATER √ NV √ √ √ NV √ √ √ √ X X √ √ √ 85 of Business JIMMY BALES  √ √ √ √ √ √ √ √ √ √ √ NV NV NV √ 100 Advocate Award  √ √ √ √ √ NV √ √ √ √ √ √ √ √ √ 100 BRUCE BANNISTER √ √ √ √ √ √ √ √ NV NV √ √ X NV √ 92 √ √ √ NV √ NV √ √ √ √ √ √ X √ √ 92 √ √ NV √ √ NV √ √ √ √ NV X √ NV √ 91 SC Restructuring Act of 2014 (S.22) – By a vote of BETH BERNSTEIN √ X √ √ √ √ X √ √ √ √ X X √ NV 71 118 to 0, the House adopted the conference report to KENNY BINGHAM  √ √ NV √ √ √ √ √ √ √ √ √ √ √ √ 100 create the Department of Administration, a cabinet- DON BOWEN √ NV √ NV √ √ √ √ NV NV √ NV X √ NV 89 level agency that will report to the Governor. (Chamber BILL BOWERS √ √ NV √ √ √ NV NV NV NV NV NV X √ √ 88 Vote – aye; Vote # 844; 1/21/2014) LESTER BRANHAM √ X √ √ √ √ NV NV NV √ √ √ X √ NV 82 DOUG BRANNON √ NV NV √ √ NV X √ X √ √ √ √ √ √ 83 Pollution Control Act Fix (H.3925) – By a vote of 80 to √ X NV √ √ √ NV √ √ √ √ √ X √ √ 85 30, the House passed legislation fixing an unintended ROBERT BROWN √ X √ NV √ √ X √ NV √ √ √ X √ NV 75 loophole in the Pollution Control Act, exposing businesses to the threat of frivolous citizen lawsuits. √ √ √ √ √ √ √ √ √ √ X √ √ √ √ 93 BILL CHUMLEY √ √ √ √ √ √ √ √ √ √ X X √ √ √ 87 (Chamber Vote – aye; Vote # 910, 2/26/2014) ALAN CLEMMONS √ √ √ √ √ √ √ √ √ √ X √ X √ √ 87 Manufacturing Engineer Exemption (H.4604) – The √ NV √ √ √ NV X √ NV √ NV √ X √ √ 82 House unanimously approved legislation to exempt GILDA COBB-HUNTER √ X √ NV √ NV √ √ √ √ √ √ X √ √ 85 engineers of manufacturing companies from licensing √ √ √ √ √ √ √ √ √ √ √ X √ √ √ 93 requirements by a vote of 100 to 0. (Chamber Vote – HEATHER CRAWFORD √ √ √ √ √ √ √ √ √ √ NV √ X √ √ 93 aye; Vote # 941; 3/4/2014) KRIS CRAWFORD √ NV √ √ √ NV √ √ NV NV √ √ X √ √ 91 BILL CROSBY √ √ √ √ √ √ √ √ √ √ X √ √ √ √ 93 Patent Trolls (H.4371) – By a vote of 106 to  √ √ NV √ √ √ NV √ √ √ √ NV √ √ √ 100 1, the House passed legislation to help South  √ √ √ √ √ √ √ √ √ √ √ √ √ NV √ 100 Carolina businesses defend frivolous claims of √ X √ √ √ √ X √ √ √ NV NV NV NV √ 82 patent infringement brought by patent trolls in MARYGAIL DOUGLAS √ X √ NV √ √ X √ √ √ √ √ X NV √ 77 South Carolina courtrooms. (Chamber vote – aye; TRACY EDGE √ √ √ √ √ √ NV √ √ √ NV X √ √ NV 92 Vote # 1229; 4/2/2014) SHANNON ERICKSON NV √ √ √ √ √ √ √ √ √ X X X √ √ 79 √ √ √ √ √ NV √ √ √ √ √ X √ √ √ 93 Elimination of High School Exit Exam (H.3919) – The KIRKMAN FINLAY NV √ √ √ √ √ √ √ √ √ √ √ X √ √ 93 House unanimously concurred in Senate amendments MIKE FORRESTER √ √ √ √ √ √ √ √ √ √ √ X √ √ √ 93 to legislation to eliminate the requirement that students LAURIE FUNDERBURK √ √ √ √ √ √ √ √ √ √ √ √ X √ √ 93 take the high school exit exam by a vote of 102 to 0. CRAIG GAGNON √ √ √ √ √ √ √ √ √ NV √ √ X √ √ 93 (Chamber Vote – aye; Vote # 1262; 4/9/2014) MIKE GAMBRELL NV √ √ NV NV NV √ √ √ √ √ √ X √ √ 91 WAYNE GEORGE √ √ √ √ √ √ X √ √ √ √ √ X NV √ 86 Trespasser Responsibility Act (H.4607) – By a √ X NV √ √ √ √ √ X X NV √ X √ √ 69 vote of 95 to 0, the House approved legislation to NV √ √ √ √ √ √ √ √ √ X √ X √ √ 86 codify the common law liability owed to trespassers JERRY GOVAN √ NV √ √ NV √ X √ √ √ NV √ √ √ NV 91 by landowners. (Chamber Vote – aye; Vote # 1350; DAN HAMILTON √ NV √ √ √ √ √ √ NV NV X X √ √ NV 82 5/1/2014)  √ √ NV NV √ √ √ NV NV NV √ √ √ √ NV 100 NELSON HARDWICK √ √ NV √ √ √ √ √ √ √ √ √ X √ √ 93 Common Core Compromise (H.3893) – The House BOBBY HARRELL √ √ √ √ √ √ √ √ √ √ √ √ X √ √ 93 concurred in Senate amendments to compromise CHRIS HART √ X NV NV NV √ √ NV √ NV NV √ √ √ √ 89 legislation on Common Core State Standards by a JACKIE HAYES √ NV NV √ √ √ NV √ √ NV √ √ X √ NV 90 vote of 80 to 26, speeding up the time frame for a √ √ √ √ √ √ √ √ √ √ NV X √ √ √ 93 cyclical review of the standards and instituting a review √ √ √ √ √ NV √ NV NV NV X √ X √ √ 82 committee to make recommendations on a testing DAVID HIOTT √ √ √ √ √ √ √ √ √ √ √ X √ √ √ 93 system for South Carolina. (Chamber Vote – aye; Vote  √ √ √ √ NV √ √ √ √ √ √ √ √ √ √ 100 # 1428; 5/20/2014) √ X √ √ √ √ √ √ √ √ √ √ X √ √ 87 JENNY HORNE √ √ √ √ √ NV √ √ √ √ √ X √ √ √ 93 Distributed Energy Resource Program Act √ √ √ √ √ √ √ √ NV √ √ √ X √ √ 93 (S.1189) – The House unanimously approved LEON HOWARD √ NV √ NV NV NV √ √ √ √ √ √ X √ √ 91 legislation by a vote of 105 to 0 allowing third-party  √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 100 leasing of renewable energy generating facilities, JOSEPH JEFFERSON √ X √ √ √ √ X √ NV √ √ √ √ √ √ 86 updating the net metering requirements and  √ √ √ √ √ √ √ √ √ √ NV NV NV NV NV RALPH KENNEDY 100 implementing renewable energy production JOHN KING √ X NV √ √ NV NV NV NV NV √ √ X √ NV 75 targets for regulated utilities. (Chamber Vote – aye; √ X √ √ √ √ X √ √ √ √ √ X √ √ 80 Vote # 1438; 5/21/2014)

3 2014 Legislative Scorecard & Year In Review 2014 Legislative Scorecard & Year In Review 4 HOUSE SCORECARD

VOTE KEY: (Amendment 5A) √ Business Positive Vote REPRESENTATIVE S.22 H.3925 H.4604 H.4371 H.3919 H.4607 H.3893 S.1189 S.826 S.1099 S.516 H.4701 H.4701 H.4702 H.3428 Score X Business √ √ √ √ NV √ NV NV NV NV √ X √ √ √ 90 Negative Vote √ √ √ NV √ √ √ √ √ √ X √ X √ √ 86 NV Not Voting DEBORAH LONG √ √ √ √ √ √ √ √ √ √ X X X √ √ 80  √ √ √ NV NV √ √ √ √ √ √ √ √ √ √ 100  Denotes Recipient √ √ √ √ √ √ √ √ √ √ √ √ X √ √ 93 of Business DAVID MACK √ X √ √ √ √ √ √ NV √ √ √ X √ √ 86 Advocate Award PETER MCCOY √ √ √ √ √ √ √ √ √ √ X X √ √ √ 87 JOE MCEACHERN √ X √ √ √ √ X √ √ √ √ √ X √ √ 80 MIA MCLEOD √ √ √ √ √ √ NV √ √ √ NV √ X √ √ 92 Splitting of Drug Tests for Workers' Compensation WALT MCLEOD √ X NV √ NV NV √ √ √ √ √ X X √ √ 75 Rates (S.826) – The House passed legislation by a JAMES MERRILL √ NV √ √ √ √ √ NV √ √ X √ √ √ √ 92 vote of 93 to 2 to codify the standard industry practice HAROLD MITCHELL √ NV √ √ NV NV X NV NV NV NV √ X √ √ 75 of splitting a single drug test sample from employees  √ √ √ √ √ √ √ √ √ √ NV √ √ √ √ 100 so employers may be deemed a “certified drug-free  √ √ √ √ √ √ √ √ √ √ NV NV NV NV √ 100 workplace.” (Chamber Vote – aye; Vote # 1441; ELIZABETH MUNNERLYN √ X NV √ √ √ X √ NV NV √ √ X √ √ 75 5/21/2014) CHRIS MURPHY √ √ NV √ √ √ NV NV NV NV √ X √ √ √ 90 √ √ NV √ √ √ √ √ √ √ X X √ √ √ 86 Exemption of Unemployment Insurance for JOE NEAL NV X √ √ NV NV X NV NV NV NV NV NV NV NV 50 Independent Contractors of Motor Carriers WESTON NEWTON √ √ √ √ √ √ NV √ √ √ √ X X √ √ 86 (S.1099) – By a vote of 96 to 2, legislation passed RALPH NORMAN √ √ NV √ √ √ √ √ √ √ √ X √ √ √ 93 the House to provide an exemption from providing NV X √ X √ √ NV NV NV NV NV NV X √ √ 63 unemployment benefits for an independent contractor √ √ √ NV NV √ X √ √ √ √ √ X √ √ 85 of a motor carrier. (Chamber Vote – aye; Vote # 1445; PHIL OWENS √ √ √ NV √ √ √ NV NV √ NV √ X √ √ 91 5/21/2014) ANNE PARKS √ X √ NV √ √ NV √ √ √ NV √ X √ √ 83  √ √ √ √ √ NV √ √ √ √ √ √ √ √ √ 100 Read to Succeed Act (S.516) – By a vote of 75 to 20, MICHAEL PITTS √ √ √ √ NV √ NV √ √ √ √ √ X √ √ 92 the House passed legislation strengthening reading  √ √ √ √ NV √ √ √ √ √ NV √ √ √ √ 100 programs for children in the third grade and expanding JOSHUA PUTNAM  √ NV √ √ √ √ NV NV NV NV NV NV NV NV NV 100 four-year-old kindergarten statewide as funding RICK QUINN √ √ √ √ √ √ √ √ √ NV √ X √ √ NV 92 is available. (Chamber Vote – aye; Vote # 1535; ROBERT RIDGEWAY √ X √ √ √ √ X √ √ √ √ √ X √ √ 80 6/4/2014) SHANNON RILEY √ √ √ √ √ √ √ √ √ √ X √ X √ √ 87 SAMUEL RIVERS  √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 100 Fiscal Year 2014-15 State Budget (H.4701) – By LEOLA ROBINSON-SIMPSON √ X NV √ √ √ X √ √ √ NV √ X √ √ 77 a vote of 85 to 28, the House approved a $7 billion √ NV √ √ NV NV X √ √ √ NV √ √ √ NV 90 spending plan for the next fiscal year. (Chamber Vote – √ √ √ √ √ √ √ NV NV NV √ X X √ √ 83 aye; Vote # 1541; 6/4/2014) RONNIE SABB √ X √ √ NV √ X √ √ √ √ √ X √ √ 79 BILL SANDIFER √ √ √ √ √ √ √ √ √ √ √ √ X √ √ 93 Table Certificate of Need (CON) Grandfathering BAKARI SELLERS √ X NV NV √ NV NV NV NV NV NV X √ √ NV 67 Proviso (Amendment 5a to H.4701) – By a vote of √ √ √ √ √ NV √ NV NV NV NV √ X √ √ 90 66 to 49, the House tabled a proviso to the state budget B.R. SKELTON √ √ √ √ √ √ X √ √ √ √ √ X √ NV 86 that would have grandfathered healthcare projects MURRELL SMITH √ √ NV √ NV √ √ √ √ √ √ √ X √ √ 92 that went forward during the 2013-14 year while the GARRY SMITH √ √ √ √ √ NV √ √ √ NV X √ √ √ √ 92 CON program was in limbo. (Chamber Vote – nay; ROLAND SMITH √ √ √ √ √ √ √ √ √ X √ √ X √ √ 87 Vote # 1543; 6/4/2014) JAMES SMITH √ X √ √ √ NV X √ √ √ NV √ X √ NV 75 MIKE SOTTILE  √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 100 Capital Reserve Fund (H.4702) – The House approved √ √ √ NV √ √ √ √ NV √ X √ √ √ √ 92 legislation prioritizing spending of the Capital Reserve KIT SPIRES √ √ √ √ √ √ √ √ √ √ NV √ X √ √ 93 Fund by a vote of 111 to 0. (Chamber Vote – aye; √ NV √ √ NV NV NV √ √ √ NV X √ √ √ 90 Vote # 1544; 6/4/2014) √ √ √ √ √ NV √ √ √ NV X X √ √ √ 85 EDDIE TALLON  √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 100 Reauthorization of First Steps (H.3428) – By a BILL TAYLOR  √ √ √ √ NV √ √ √ √ √ √ √ √ √ √ 100 vote of 105 to 0, the House approved legislation √ √ √ √ √ √ √ √ √ √ X √ X √ √ 87 reauthorizing First Steps for another two years while MAC TOOLE √ √ √ √ √ NV √ √ √ √ X X √ √ √ 86 increasing oversight and accountability for the program. TED VICK √ √ √ √ NV √ X √ √ √ √ √ NV NV √ 92 (Chamber Vote – aye; Vote # 1548; 6/5/2014) DAVID WEEKS √ X √ √ NV √ X √ √ √ √ √ X √ √ 79 DON WELLS √ √ √ √ √ √ √ √ √ √ √ √ X √ √ 93 √ X NV √ NV √ X √ NV √ √ √ X √ √ 75 BRIAN WHITE √ √ √ √ √ √ √ NV √ NV √ √ X √ √ 92 √ √ √ √ √ NV √ √ √ √ √ √ X √ √ 93 ROBERT WILLIAMS √ X √ √ √ √ NV NV NV NV √ √ X √ √ 82 MARK WILLIS  √ √ NV √ √ √ √ √ √ √ √ √ NV √ √ 100 DONNA WOOD √ √ NV √ √ √ √ √ √ √ √ X √ √ √ 93

3 2014 Legislative Scorecard & Year In Review 2014 Legislative Scorecard & Year In Review 4 SCORECARD SENATE (Continued from page 2)

Elimination of High School Exit Exam (H.3919) – The Senate 2014-15 state budget that was another attempt to stop the implementation unanimously passed legislation to eliminate the requirement that students of the ACA in South Carolina but would again only increase burdens on take the high school exit exam by a vote of 45 to 0. (Chamber Vote – aye; businesses and individuals as they navigate the federal health care law. Vote # 864; 3/27/2014) (Chamber Vote – aye: Vote # 1001; 5/8/2014)

Exemption of Unemployment Insurance for Independent Contractors Distributed Energy Resource Program Act (S.1189) – The Senate of Motor Carriers (S.1099) – By a vote of 36 to 0, legislation passed the unanimously concurred by a vote of 42 to 0 in legislation allowing third- Senate to provide an exemption from providing unemployment benefits party leasing of renewable energy generating facilities, updating the net for an independent contractor of a motor carrier. (Chamber Vote – aye; metering requirements and implementing renewable energy production Vote # 890; 4/3/2014) targets for regulated utilities in South Carolina. (Chamber Vote – aye; Vote # 1213; 5/28/2014) Manufacturing Engineer Exemption (H.4604) – The Senate unanimously approved legislation to exempt engineers of manufacturing Export-Import Bank Resolution (S.1306) – The Senate adopted a companies from licensing requirements by a vote of 39 to 0. (Chamber resolution by a vote of 28 to 14 to urge members of the South Carolina Vote – aye; Vote # 895; 4/8/2014) delegation in Congress to support the reauthorization of the Export-Import Bank of the United States. (Chamber Vote – aye; Vote # 1240; 6/3/2014) Read to Succeed Act (S.516) – By a vote of 36 to 6, the Senate passed legislation strengthening reading programs for children in the third Carry Over Trespasser Responsibility Act (S.986) – By a vote of 17 grade and expanding four-year-old kindergarten statewide as funding is to 23, the Senate narrowly failed to carry over an amendment to codify available. (Chamber Vote – aye; Vote # 909; 4/9/2014) the common law liability landowners owe to trespassers. (Chamber Vote – nay; Vote # 1242; 6/3/2014) Set Highway Funding Legislation for Special Order (H.3412) – By a vote of 34 to 4, legislation to fund roads and bridges was set for Special Fiscal Year 2014-15 State Budget (H.4701) – By a vote of 34 to 10, the Order by the Senate, giving it priority status for legislation on the Senate Senate concurred in the $7 billion spending plan for the next fiscal year. Calendar. (Chamber Vote – aye; Vote # 974; 4/30/2014) (Chamber Vote – aye; Vote # 1247; 6/4/2014)

Common Core Compromise (H.3893) – The Senate passed compromise Capital Reserve Fund (H.4702) – The Senate concurred in legislation legislation on Common Core State Standards by a vote of 42 to 0, speeding prioritizing spending of the Capital Reserve Fund by a vote of 36 to 7. up the time frame for a cyclical review of the standards and instituting a (Chamber Vote – aye; Vote # 1248; 6/4/2014) review committee to make recommendations on a testing system for South Carolina. (Chamber Vote – aye; Vote # 979; 5/1/2014) Reauthorization of First Steps (H.3428) – By a vote of 40 to 3, the Senate approved legislation reauthorizing First Steps for another two years Table Anti-Commandeering Budget Proviso (Amendment 35 to while increasing oversight and accountability for the program. (Chamber H.4701) – By a vote of 23 to 19, the Senate tabled an amendment to the FY Vote – aye; Vote # 1257; 6/4/2014) 2014 BUSINESS ADVOCATE AWARD RECIPIENTS

Sen. Alexander Sen. Campbell Sen. Courson Sen. Jackson Sen. L. Martin Sen. Matthews Sen. O’Dell Rep. Allison Rep. Anthony Rep. Bales (Oconee) (Berkeley) (Richland) (Richland) (Pickens) (Orangeburg) (Abbeville) (Spartanburg) (Union) (Richland)

Rep. Ballentine Rep. Bingham Rep. Daning Rep. Delleney Rep. Hardee Rep. Hixon Rep. Huggins Rep. Kennedy Rep. Lowe (Richland) (Lexington) (Berkeley) (Chester) (Horry) (Aiken) (Lexington) (Lexington) (Florence)

Rep. D. Moss Rep. S. Moss Rep. Patrick Rep. Pope Rep. Putnam Rep. Rivers Rep. Sottile Rep. Tallon Rep. Taylor Rep. Willis (Cherokee) (Cherokee) (Beaufort) (York) (Anderson) (Berkeley) (Charleston) (Spartanburg) (Aiken) (Greenville)

5 2014 Legislative Scorecard & Year In Review 2014 Legislative Scorecard & Year In Review 6 (Year in Review continued from page 1)

Need permitting program was suspended for the fiscal year because funding was H.3827 would have streamlined the permitting process at the South Carolina vetoed by Governor Nikki Haley and sustained by the House of Representatives in Department of Health and Environmental Control (DHEC) and eliminate the 2013. In her veto message, Governor Haley wrote, “The Certificate of Need program DHEC board review during the permitting process unless the permittee, applicant or is an intensely political one through which bureaucratic policymakers deny new licensee requests final review by the board. Third parties typically use the final review healthcare providers from offering treatment. We should allow the market to work by the DHEC board as a delay tactic. Taking this step out of the permitting process rather than politics.” would eliminate up to 140 days during permitting, thereby increasing certainty for economic development projects. After the South Carolina Supreme Court ruled in April 2014 that the CON program was not suspended by the sustaining of the veto, the General Assembly neglected H.3925 was a technical fix to the 2012-passed Pollution Control Act (PCA) and to address the issue in 2014, which created bad public policy that only increased clarified that there is no private cause of action under the PCA, reiterating the uncertainty for businesses expanding and creating jobs. intent of the General Assembly that was agreed to by the business community and environmental groups. The 2012 legislation instituted an administrative remedy As a result of the House sustaining the veto in 2013, South Carolina Department through DHEC for persons to petition the agency if they believe an individual or of Health and Environmental Control (DHEC) Director told company is operating without a permit. Therefore, no rights are being taken away businesses that the Certificate of Need permitting program was suspended. The from potentially aggrieved parties. The compromise was to change the remedy from removal of funding for the Certificate of Need program in 2013 was a clear indication an action in civil court to an administrative procedure. As the legislation passed in that the governor and General Assembly wanted to do away with the program and let 2012, environmental groups filed one more lawsuit, claiming that a business was free markets dictate growth. operating without a Pollution Control Act permit, going against the compromise agreed to by all parties. H.3925 closes the loophole the court exposed in this 11th In 2014, the South Carolina Chamber of Commerce and other organizations warned hour lawsuit and protects businesses from frivolous lawsuits under the PCA that the legislature that action was needed as businesses continued to expand to meet hinder economic development. capacity and growth needs. This year, the South Carolina Chamber presented two solutions to the General Assembly to fix the uncertainty created after the governor Both H.3827 and H.3925 passed the House with broad support. Representative vetoed funding for the program: include a proviso in the budget to grandfather David Hiott (Pickens) and House Speaker Pro Tempore Jay Lucas (Darlington) led health care facilities that undertook projects or purchased equipment based on the floor debate on these two environmental bills and are commended by the business understanding that the program was suspended, or pass standalone legislation, which community for their leadership. included language reforming the Certificate of Need permitting process and included a grandfathering provision. The Chamber plans to again pre-file these bills ahead of 2015.

In the end, no solution passed. Specifically, the House of Representatives failed to adopt ON THE FEDERAL FRONT the compromise that the Senate offered during budget deliberations. The inaction this year to correct the uncertainty created last year by the House only extends this bad policy. Businesses cannot be punished for following the law. President signed into law legislation vital to allowing the Port Harbor Deepening project to begin as soon as the Army Corps of Engineers gives the After neither option passed the General Assembly, the South Carolina Chamber is now project a green light. The final law includes the contingency authorization provision working with DHEC and affected businesses to find a workable solution to address that gives states the flexibility to advance construction funding for Army Corps of this uncertainty. Engineers projects that fall outside the terms of the authorization bill. Even after securing the majority of the estimated construction funding from the South Carolina General Assembly, lack of a congressional authorization would have indefinitely COMBINED UNITARY REPORTING PRESENTS PROBLEMS stalled dredging at the port, crippling the industry. Allowing the project to begin without delay was a crucial part of the bill, which was approved with unanimous In early 2014, the South Carolina Department of Revenue (DOR) issued a draft support from the South Carolina congressional delegation. guidance document on the use of combined unitary reporting for businesses in South Carolina as an acceptable method of taxing corporations, which strayed from The U.S. Export Import Bank (Ex-Im), a vital tool for small, medium and large the precedence of the agency using separate entity reporting. In response, the South manufacturers across the country, awaits reauthorization by Congress. The Bank’s Carolina Chamber of Commerce highlighted the negative impacts from increases in authorization is set to expire in September and needs congressional approval to corporate income taxes from combined reporting and the uncertainties from the draft continue to cover critical gaps in financing for U.S. exports to developing countries guidance on economic development. where commercial financing is unavailable or insufficient. Since 2007, the Ex-Im Bank has directly supported more than 55 South Carolina exporters, 30 of whom After the outcry from the business community, DOR issued a new document outlining are considered small businesses. The Ex-Im Bank affects 7,878 jobs directly in South that the department will cease work on a proposed ruling that would have mandated Carolina, but this number does not include the jobs associated with suppliers and forced combined unitary reporting. Instead, DOR will work with a committee other businesses that indirectly depend on the Bank’s existence. The Ex-Im Bank is of individuals from the business community, along with tax practitioners, to study essential to enabling American businesses to compete in the global economy. alternative allocation and apportionment methods. DOR has agreed not to assert combined unitary reporting as a result of an audit and will work to resolve ongoing LOOKING AHEAD audits on other bases. The South Carolina Chamber will continue to work with the department to develop solutions to bring South Carolina back in line with the long- With the 2014 legislative session at a close, the South Carolina Chamber will standing policy of being a separate entity reporting state. begin to lay out business priorities for 2015. Two overarching areas will be a comprehensive infrastructure funding package and continued progress on workforce SENATE STALLS ENVIRONMENTAL BILLS development. As economic development continues to take center stage in South Carolina, infrastructure and workforce development will likely be the two areas that will be strained under current scenarios. South Carolina needs to find a Two environmental bills important to the business community remained contested on dedicated, sustainable funding source for roads and bridges. Likewise, as the state the Senate calendar through the end of the legislative session. Minority reports were continues to grow economic development, South Carolinians need to be adequately placed on both bills as they came out of the Senate Medical Affairs Committee. On the prepared for job openings as new companies locate here and existing companies floor, multiple attempts were made to remove the minority report from both pieces of continue to expand. legislation to allow debate on the issues, but the motions did not pass as they require unanimous consent. This rule allows one senator to continue to object to the bills, keeping the legislation contested and not debated on the floor.

5 2014 Legislative Scorecard & Year In Review 2014 Legislative Scorecard & Year In Review 6 2014 ADVOCACY RETURN ON INVESTMENT Through the South Carolina Chamber of Commerce’s direct advocacy efforts at the State House and through strong business alliances with other industry trade associations, South Carolina businesses will benefit from at least $122.4 million in legislative changes designed to make businesses more competitive and profitable.

Defeat of ACA Nullification Act Unlimited

Closing Fund $37 million

Reading Coaches $29 million

4K Expansion $18.6 million

Digital Instruction and Teacher Training $11 million

First Steps $6.5 million

LocateSC $6.5 million

readySC $5.4 million

Georgetown Port Maintenance Dredging $5 million

Tech Colleges STEM Education $2 million

Certificate of Need Program $1.4 million

Total Return on Investment $122.4+ million

1301 Gervais Street, Suite 1100 Columbia, SC 29201 • 803.799.4601 • www.scchamber.net • © 2014 South Carolina Chamber of Commerce