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S. 837
STATUS INFORMATION
General Bill
Sponsors: Senators Ritchie, Richardson, Cromer, Fair, Mescher, Sheheen, Martin, Grooms and Knotts
Document Path: l:\council\bills\gjk\20502sd05.doc
Introduced in the Senate on May 11, 2005
Currently residing in the Senate Committee on Finance
Summary: Research and Development Job Creation Authority established
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 5/11/2005 Senate Introduced and read first time SJ-12 5/11/2005 Senate Referred to Committee on Finance SJ-12
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND TITLE 13, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PLANNING, RESEARCH, AND DEVELOPMENT, BY ADDING CHAPTER 18 SO AS TO ESTABLISH THE SOUTH CAROLINA RESEARCH AND DEVELOPMENT JOB CREATION AUTHORITY WHICH SHALL UTILIZE THE CAPABILITIES OF THIS STATE'S SENIOR RESEARCH UNIVERSITIES TO PROMOTE THE DEVELOPMENT OF TARGETED SECTORS OF THE ECONOMY OF THIS STATE AND THE JOBS THEY CREATE, TO ESTABLISH A RESEARCH AND DEVELOPMENT JOB CREATION FUND TO BE ADMINISTERED BY THE BOARD OF THE AUTHORITY FROM WHICH INDUCEMENTS IN THE FORM OF MONETARY CERTIFICATES REDEEMABLE AT THE THREE SENIOR RESEARCH UNIVERSITIES MAY BE ISSUED TO PROVIDE THE JOB CREATING COMPANY WITH PRODUCT DEVELOPMENT AND OTHER ASSISTANCE FROM THE RESEARCH UNIVERSITY BASED ON THE NUMBER AND COMPENSATION LEVEL OF THE SCIENTIFIC JOBS CREATED, TO PROVIDE FOR THE MANNER OF FUNDING FOR THE RESEARCH AND DEVELOPMENT JOB CREATION FUND, AND TO PROVIDE THAT THE ABOVE PROVISIONS EXPIRE ON JUNE 30, 2010, UNLESS REAUTHORIZED BY THE GENERAL ASSEMBLY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 13 of the 1976 Code is amended by adding:
Section 13-18-10. There is created a body corporate and politic to be known as the South Carolina Research and Development Job Creation Authority.
Section 13-18-20. The authority is organized to utilize the capabilities of the state's senior research institutions and universities to establish a system to recruit businesses with highly skilled employees such as researchers, programmers, engineers, scientists, chemists, and biologists, and to promote the development of products and services in targeted segments of the South Carolina economy and related jobs in South Carolina. The objectives of the authority include, but are not limited to, the following:
( 1) advance the general welfare of the people;
( 2) increase the opportunities for employment of citizens of South Carolina;
( 3) develop the human, economic, and productive resources of South Carolina;
( 4) promote and encourage expansion of the research and development capacity of the state's workforce, with emphasis on job development in highly skilled occupations and investments in research and development within South Carolina;
( 5) create and maintain a dialogue between the public and private research communities;
( 6) allow this state's senior research institutions to serve as an initial linkage between the state's outstanding existing research institutions and the business and scientific sector;
( 7) enhance the potential for private support for South Carolina colleges and universities, to promote cooperative research efforts between the private sector and South Carolina universities and colleges, and to strengthen the partnership among state government, higher education, and business and industry;
( 8) assist South Carolina colleges and universities in attracting nationally prominent academic researchers and professors and to serve as an initial linkage between the state's outstanding existing research and the business and industrial sector;
( 9) utilize the research capabilities of the public and private universities and colleges in South Carolina;
(10) foster the perception of South Carolina as an international leader in idea generation and the development, testing, and implementation of new advances in the life sciences, pharmaceuticals, biotechnology, hydrogen and fuel cells, military and defense technology, chemical products, high tech fibers, advanced materials, automotive, aerospace, and information technology;
(11) enhance the research and technology transition capabilities of the state's three research universities;
(12) establish a continuing forum to foster greater dialogue between the state's three research universities and business and industry; and
(13) promote the development of the life sciences, pharmaceuticals, biotechnology, hydrogen and fuel cells, military and defense technology, chemical products, high tech fibers, advanced materials, automotive, aerospace, and information technology industries and applied research facilities in South Carolina.
Section 13-18-30. There is created the South Carolina Research and Development Job Creation Authority Board of Trustees. The board shall consist of nine members. Of the nine members, three must be appointed by the Governor, three must be appointed by the President Pro Tempore of the Senate, and three must be appointed by the Speaker of the House of Representatives. The terms of members are five years and members are eligible to be appointed for no more than two additional terms if the authority is reauthorized by law. The Governor, the President Pro Tempore, and the Speaker of the House shall appoint persons with substantial experience in science, technology, chemistry, venture capital, textiles, engineering, or other professions and experience which provide an understanding of the purposes of this chapter. The Presidents of Clemson University, the Medical University of South Carolina, and the University of South Carolina at Columbia shall serve as ex officio members of the board.
Board members also shall encompass a variety of specialty areas, which may include intellectual property protection, management and business practices, relevant science and technology skills, and other specific skills as required to administer the provisions of this chapter.
Vacancies shall be filled by appointment in the same manner of original appointment for the remainder of the unexpired term. Members of the board shall receive the usual mileage, subsistence, and per diem as is provided by law for members of state boards, commissions, and committees. The board shall elect a chairman, vice chairman, and such other officers as they deem necessary to serve for terms of one year in these capacities.
Section 13-18-40. The board of authority has full power and authority to manage the business and affairs of the authority and to take action as it considers advisable, necessary, or convenient in carrying out its powers granted by this chapter and any other law including the following powers:
(1) to have the existence authorized by law;
(2) to sue and be sued;
(3) to adopt, use, and alter a seal;
(4) to make and amend bylaws for its management consistent with the provisions of this chapter;
(5) to acquire, purchase, hold, use, improve, lease, mortgage, sell, transfer, and dispose of any property, real, personal, or mixed, or any interest therein;
(6) to receive contributions, donations, and payments and invest and disperse the authority's funds;
(7) from time to time to borrow money, make and issue negotiable notes and other evidences of indebtedness not including bonds and to secure the payment of the indebtedness; provided that the authority shall have no authority to pledge the full faith and credit and taxing power of this State;
(8) to make contracts and to execute all instruments necessary or convenient for the carrying out of business;
(9) to delegate authority to any agent or establish any committee in order to accomplish the purposes of the authority;
(10) to maintain an inventory of job creation efforts in South Carolina in the life sciences, pharmaceuticals, biotechnology, hydrogen and fuel cells, military and defense technology, chemical products, high tech fibers, advanced materials, automotive, aerospace, and information technology industries;
(11) to attract investments in research and development and high technology industries by focusing attention on various educational, cultural, scientific, and economic activities in South Carolina and by assisting potential businesses with information requested to determine whether to locate in South Carolina through the use of the inducements authorized by this chapter.
Section 13-18-50. The President of Clemson University, President of the Medical University of South Carolina, President of the University of South Carolina at Columbia, the Governor or his designee, and the chairman of the board of trustees, shall serve as the executive committee of the board of trustees. The executive committee by majority vote shall have the authority to implement recommendations and direct the executive director on policy decisions for the efficient day-to-day operations of the board.
The executive committee shall appoint a business and science advisory board to include representatives from each research university, the venture capital industry, and relevant industry leaders. The purpose of the advisory board is to advise the board of trustees when requested by it. The advisory board shall ensure that the authority has the input of the business community in implementing its programs and services.
The board annually shall submit a report to the General Assembly including information on all acts of the board of trustees together with a financial statement and full information as to the work of the authority.
The board shall hire an executive director who shall have direct administrative responsibility for the board. The executive director shall maintain through a designated agent accurate and complete books and records of account, custody, and responsibility for the property and funds of the authority and control over the authority bank account. The executive director, with the approval of the board, has the power to appoint officers and employees, to prescribe their duties, and to fix their compensation. The board of trustees shall select a reputable certified public accountant to audit the books of account at least once each year.
Regular meetings of the board of trustees must be held at a time and place the chairman may determine. Special meetings of the board of trustees may be called by the chairman when reasonable notice is given.
Section 13-18-60. (A) The board shall establish a Research and Development Jobs Creation Fund which shall be separate and distinct from the state general fund. All earnings of the fund shall remain in the fund and used for its stated purposes.
(B) The monies to be placed in the Research and Development Jobs Creation Fund must be transferred into the fund by a direct payment of funds from and by the South Carolina Research Authority during the first three years of the Research and Development Jobs Creation Fund's existence. The payments must be at least three million dollars for the first year and at least four million dollars for the second year. After the second year, the board of the South Carolina Research Authority shall determine the method and payment of the funds. By the end of the third year, total funding dedicated to the Research and Development Jobs Creation Fund for startup must be twelve million dollars, however, the board of the South Carolina Research Authority may provide a portion of the twelve million dollars with funds generated by other means as determined by the board.
(C) After the initial three-year period, the General Assembly shall explore methods to provide additional funding until the Research and Development Jobs Creation Fund has a reasonable opportunity to become self-sustaining. These methods may include direct appropriation from the general fund, private donations, or other funds as necessary.
Section 13-18-70. (A) The board shall use the monies in the fund to provide inducements to companies to locate or expand in South Carolina which are engaged in scientific or technology endeavors and which require a highly educated technically-skilled workforce. The inducements from the fund shall consist of monetary certificates issued to the company which can be used and redeemed at any of the three senior research universities, individually, collectively, or in cooperation with other institutions of higher learning in this State for use of the facilities or faculty at the institution in connection with research, product development, research training, or related business applications. The inducements must be provided on a two to one basis with two dollars of fund inducements being provided for every one dollar of paid by the company to a senior research university for the purposes set forth in this section with a minimum payment per company of ten thousand dollars. The maximum fund inducement per company shall be five hundred thousand dollars. 'Jobs created by the company' for purposes of this section means a 'new job' created on a 'full-time' basis as these terms are defined in subsections (M)(3) and (M)(4) respectively of Section 12-6-3360 with the jobs created to be in those fields referenced in subsection (B) of this section or in another similar field approved by the board. If the company locates these jobs in a 'least developed', 'under developed', or 'moderately developed' county as these terms are defined in Section 12-6-3360(B)(1), (2), and (3), the match will be provided on a three to one basis with three dollars of fund inducements being provided for every one dollar of the salary or compensation paid by the company to a senior research university for the purposes set forth in this section with a minimum payment per company of ten thousand dollars. The maximum fund inducement per company shall be five hundred thousand dollars.
(B) To qualify for the inducements provided by this chapter, the company must create at least five qualifying jobs with primary responsibility of research and development in those fields referenced in Section 13-18-40(10) or in another similar field approved by the board with a salary or compensation level of at least fifty thousand dollars per year. The creation of the qualifying jobs may occur over different years and is not required to be completed in one particular calendar or fiscal year, and the inducements may be used at any time in the future. The company as a requirement for using the inducement certificate at a senior research university in the manner provided in this chapter must also in the written agreement required by Section 13-18-80 agree to pay one dollar to the university for each two dollars of the amount of the inducement certificate to offset the cost of the services provided by the university as set forth in Section 13-18-70.
(C) The board may also expend monies from the fund for monetary grants for proof-of-concept studies, Small Business Innovation Research program matches, the protection of intellectual property, and other similar uses. Early support programs must support specialized equipment, facilities, staff assistance, and recruitment for consultants for specific projects. These support programs may be modified quarterly based on the progress of the company or new product.
Section 13-18-80. The board and the company before the inducements authorized by this section may be provided must first enter into a written agreement among the authority, the company, and the research university involved stipulating the amount of the inducement to be provided, the number of jobs to be created, the services, location, and assistance to be provided by the research university, the costs of the research institution which may include indirect costs not to exceed fifteen percent of the amount of the inducement to be offset by the certificate issued to the company, the manner in which the board from the fund shall redeem the certificates provided to the research university by the company and presented for payment by the research university, the contribution by the company, and any other pertinent understandings necessary for the agreement.
Section 13-18-90. The authority and its employees are exempt from the application of Title 8 (Public Officers and Employees), except for Chapter 5 (Nepotism) and Chapter 13 (Ethics and Disclosure), and Title 9 (State Retirement Systems). The authority, fund, and board are also exempt from the provisions of the Consolidated Procurement Code as contained in Chapter 35 of Title 11.
Section 13-18-100. Negotiations with a prospective company or business concern or a senior research institution are confidential information and must not be disclosed without the permission of the business concern or institution.
Section 13-18-110. The provisions of this chapter shall expire on June 30, 2010, unless reauthorized by the General Assembly permanently or for additional stipulated periods.
Section 13-18-120. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this chapter, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective."
SECTION 2. This act takes effect July 1, 2005.
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