The new law requires the Department of Commerce to disclose all incentive package deals offered to companies that consider relocating to the state. The disclosures must be made at the conclusion of each deal. For the past 10 years, the department has been exempt from the state's Freedom of Information Act.

"This bill closes loopholes," said Bill Rogers, executive director of the S.C. Press Association, which lobbied for the change. "It covers all financial impacts, including fees in lieu of taxes, which could have been shielded before. Now, the public will know how their money is being spent. Before, they didn't."

The bill also requires the department to disclose expenditures from its previously secret special events fund.

New governor helped effort

"What a difference a new governor makes," said House Speaker David Wilkins. "We passed commerce reform in 2001 and now again this year, so it took us two attempts, but because we've got a new governor now and a new commerce secretary, those attempts this time were successful."

Sen. Jake Knotts sponsored the bill after a two-year investigation revealed lavish expenditures by Department of Commerce employees. For instance, employees spent $1,600 for a four-person meal with a prospect in a restaurant where the highest-priced entree was $43. Knotts said the department also spent approximately $3 million to renovate a media room in a Columbia highrise and $25,000 on a staff picnic.

"They knew that decision was never going to come to light," Commerce Secretary Bob Faith said.

Knotts' investigation led to a highly critical legislative audit of the department.

Faith said he does not believe the disclosure requirement will damage the state's competitiveness.

Sanford said the new law is part of a trend toward more open, accountable state government. He pointed to passage of the campaign reform bill and to his own once-a-month public open houses as further evidence of the trend.

He also pledged to keep his cabinet meetings open to the press and public, even though a Republican amendment to the new Commerce law exempts the meetings from the state's Free-dom of Information law except under certain narrow situations.

"We've opened them; it works well," Sanford said. "The taxpayers of South Carolina have my commitment that every one of my Cabinet meetings are going to be open forums."

Contact Karen Addy at (803) 256-3800 or mailto:kaddy@heraldonline.com