South Carolina Legislature


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S 297
Session 109 (1991-1992)

S 0297 Joint Resolution, By Passailaigue
 A Joint Resolution to create a Community Diversification Program to help local
 communities that are reliant on federal defense expenditures cope with the
 anticipated decrease in defense spendingNext, and to create the Advisory Council
 on Economic Diversification to oversee the Program.

   11/05/90  Senate Prefiled
   11/05/90  Senate Referred to Committee on Labor, Commerce and Industry
   01/08/91  Senate Introduced and read first time SJ-103
   01/08/91  Senate Referred to Committee on Labor, Commerce and
                     Industry SJ-104
   02/26/91  Senate Committee report: Favorable Labor, Commerce and
                     Industry SJ-10
   02/26/91  Senate Referred to Committee on Finance SJ-11



Whereas, the General Assembly finds that the industrial and manufacturing base of the South Carolina economy has undergone tremendous change during the past two decades; and

Whereas, the challenge facing South Carolina firms is to become as productive and efficient as possible in order to survive in an increasingly competitive world market; and

Whereas, many of the state's communities are dependent on one or two industries and many firms are heavily reliant on the defense expenditures of the federal government; and

Whereas, it is the intent of the General Assembly to assist communities in planning for economic change, developing a broader economic base, and preparing for any shift in federal priorities that could cause a reduction in federal expenditures, and to assist firms by providing information and technical assistance necessary for them to introduce new products or production processes. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. The community diversification program is created under the State Development Board. The program shall include:

(1) The monitoring and forecasting of shifts in the economic prospects of major defense employers in the State. This shall include, but not be limited to, the monitoring of defense contract expenditures, other federal contracts, defense employment shifts, the aircraft and aerospace industry, computer products, and electronics;

(2) the identification of cities, counties, or regions within the State that are primarily dependent on defense or other federal contracting and the identification of firms dependent on federal defense contracts;

(3) assistance to communities in broadening the local economic base through the provision of management assistance, assistance in financing, entrepreneurial training, and assistance to businesses in using off-the-shelf technology to start new production processes or introduce new products;

(4) formulating a state plan for diversification in defense dependent communities in collaboration with the Employment Security Commission and the Budget and Control Board. The plan shall use the information made available through carrying out subsections (1) and (2) of this section; and

(5) the identification of diversification efforts conducted by other states, the federal government, and other nations, and the provision of information on these efforts, as well as information gained through carrying out subsections (1) and (2), for firms, communities, and workforces that are defense dependent.

The State Development Board shall, beginning January 1, 1992, report annually to the Governor and the General Assembly on the activities of the community diversification program.

SECTION 2. (A) The Advisory Council on Economic Diversification consisting of nine members is created to provide advice to the State Development Board in carrying out its community diversification program. The Governor shall appoint seven members as follows:

(1) one member from a defense dependent firm in a managerial position;

(2) one non-managerial employee representative of a defense dependent firm;

(3) one civilian employee from a South Carolina military installation;

(4) two members from local governments, from communities dependent on defense expenditures;

(5) one member representing the financial institutions of the State; and

(6) one member representing military leadership in the State. Two members of the advisory council shall be from the legislature as follows:

(1) one from the Senate General Committee to be appointed by the president of the Senate, and

(2) one from the Medical, Military, Public and Municipal Affairs Committee of the House of Representatives to be appointed by the Speaker of the House of Representatives. The director of the State Development Board or the director's designee shall serve as the nonvoting chairperson of the advisory council.

Members of the council other than the chair shall serve for two-year terms. Vacancies shall be filled in the same manner as the original appointments. Members of the council shall receive no compensation but shall be reimbursed for travel expenses. The State Development Board shall assign staff to the council as necessary to carry out the purposes of this chapter.

(B) It is the council's duty to do the following:

(1) initiate a continuous and close working relationship with the South Carolina congressional delegation in order that the State keep apprised of changes in the Federal Defense Budget;

(2) act as a liaison to the United States Department of Defense, other federal agencies, and private defense-related industries so that the State has an established and well identified group of offices to refer inquiries regarding the military's presence and potential in South Carolina;

(3) develop a program to forge a stronger working relationship between the legislative and executive branches in order to assist the competitiveness of South Carolina business in the national marketplace;

(4) design state procurement programs for advanced technologies to expose state offices to new technologies and encourage defense contractors to diversify their markets;

(5) develop business management and strategy workshops for small defense-related firms to encourage market diversification and to address special needs;

(6) coordinate special forums for major South Carolina contractors and military base officials to foster discourse in the defense industry;

(7) use existing funding or create new sources of funding to encourage joint ventures for the development of new products and services;

(8) promote South Carolina directories of minority-owned businesses to assist companies and military installations in fulfilling their small business content requirements for federal contracts;

(9) in cooperation with the State Board for Technical and Comprehensive Education develop and implement specialized training programs for defense prime contractors and subcontractors;

(10) promote the State Employment Service Program's recruiting service as a tool for contractors with layoff or hiring needs; and

(11) assist in designing innovative daycare programs in labor critical areas.

SECTION 3. The community diversification program and the Advisory Council on Economic Diversification shall be terminated on June 30, 1996.

SECTION 4. This act shall take effect upon approval by the Governor.


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