Capital fight threatens high-tech jobs here

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The legislation provides financial incentives for drug companies that invest in South Carolina and creates a $50 million venture capital fund for startup companies.

But it has been labeled the "kitchen sink bill" because of tacked-on measures that include making the University of South Carolina's branch campus in Sumter a four-year school, changing criteria for LIFE scholarship recipients, and creating a committee to study a new law school at S.C. State University.

Another amendment gives $7 million to a convention center in Myrtle Beach.

Sanford has threatened for weeks to veto the measure because of the USC-Sumter provision. If the legislation is an appropriations bill, he could use a line-item veto, meaning he could eliminate specific lines he objected to and approve those he liked.

"There are folks who think it is an appropriations bill, and there are folks who are adamant that it is not," said Sanford spokesman Will Folks. "That's the question. And if it is an appropriations bill, do you line-item? And if you line-item, what do you line-item? It's three or four questions deep, and we're just trying to get answers to those questions."

Senators, responsible for the tacked-on measures, included statements in the bill declaring it not to be an appropriations measure, hoping to block line-item vetos. A companion bill authorizes the spending of the money.

"I don't think he can line-item veto the bill," said Sen. John Matthews, an Orangeburg County Democrat who added the S.C. State proposal. "The plain intent was this was not to be an appropriations bill."

But Robert Harrell, chairman of the House budget-writing committee, said he would view it as an appropriations bill because it details how various schools can spend millions of dollars.

"I think it's a close call," he said. "My inclination is to view it as an appropriations bill."

Any veto by Sanford must be made by midnight Tuesday.

The bill passed the House last week by a vote of 96-15 and sailed through the Senate by a vote of 35-5.

An override of the governor's veto would take two-thirds of those present in each body.

"When a governor vetoes a bill, the dynamic changes," Harrell said. "Theoretically, if you had 90-something voting for it, you have enough to override a veto. But I wouldn't want to venture a guess. We would just have to take the vote and see what happens."

Matthews said he believes the Senate would override any vetoes, even line-item vetos.

"I think the Senate would stick together on those issues because we would not view it as an appropriations bill and would view his veto as inappropriate," he said.

The legislation began last year as the Life Sciences Act, designed to bring high-technology companies to the state.

Karl B. Kelly, CEO of S.C. Bio, a public-private partnership created to nurture starting technology companies in the state, said the act would help fill research needs, provide money to invest in new companies and attract out-of-state firms.

"This legislation puts us at the forefront and makes us one of the most competitive locations in the Southeast," he said. "Combining this with the image we think is emerging from university research, we think we are a player. It won't be the answer to all the loss of textile jobs but it clearly is a growing sector that will help replace some of that opportunity that has left South Carolina."

Among the first proposals added to the act last year was $220 million for research "infrastructure" needs at the state's three research universities: Clemson, USC and the Medical University of South Carolina in Charleston. After other schools' officials complained, 12 percent was set aside for colleges other than the research schools.

Then other provisions were added to make USC-Sumter a four year school, to require legislative approval before any USC campus could be closed, and to create a culinary program at Trident Technical College.

Matthews added the law school idea, a proposal that failed on its own the year before. It would require a nine-member study committee report to the General Assembly by the end of the year.

The state currently operates a law school at USC and another is being planned in Charleston.

Matthews said he doesn't know if the state can afford three law schools.

"I hope we'll answer that question when we do that study committee," he said. "There's clearly a need for an additional law school in this state."

The LIFE scholarship provisions would allow those sent to boarding schools to qualify, as well as students who spend at least three years at a high school in state. The legislation would also require a student's cumulative grade average be used in determining eligibility, not just from the current college. LIFE recipients must earn a 3.0 grade point average. And it would add another private school to the list whose students could receive the scholarship.