Here’s a note from a friend John Warner of Swamp Fox advocating S. 897

Kevin, I am writing to ask your support for S 0897, the South Carolina Entrepreneurial Success Fund Act, filed by Sen. Jim Ritchie and referred to the Committee on Labor, Commerce and Industry.

An important element of the state’s economic development strategy should be fostering homegrown companies that can grow rapidly, create high wage jobs, and build considerable wealth which can be reinvested back into the state. Examples of these companies include Mt. Pleasant’s Automated Trading Desk, started in the late 1980s and recently sold for $800 million, and Greenville’s ScanSource, founded fifteen years ago and worth $700 million today.

I serve on the SC Venture Capital Authority, which invested $50 million in four venture capital funds to be reinvested in SC companies. We set a specific objective of investing in a seed capital fund, because that is the greatest need of emerging companies in the state. We had a great staff person from SC Commerce, Ian Forbes Jones. He and I looked hard but could not find a seed fund with a profitable track record to invest in. All of the venture funds the Authority invested in are later stage funds which will make investments of $5 million up. That’s an important level of capital that was missing from the state, but it won’t help entrepreneurs start high growth companies to begin with.

I am also knowledgeable of SC Launch!, which is a sponsor of InnoVenture, an annual SC venture capital conference I produce. SC Launch! can invest up to $200,000 in a given company. That’s important too, but usually it’s not sufficient alone to launch a high growth company.

We need a professionally managed seed capital fund in SC, which can invest the initial $1 or $2 million to help start more high growth companies like ATD or ScanSource. Beyond merely investing, this seed fund’s experienced venture professional will also help entrepreneurs develop their strategies, recruit the initial management teams, and pull in other critical relationships. This seed capital fund will often be a partner with SC Launch!, and ultimately with the SC Venture Capital Authority venture funds as companies raise later rounds of capital.

A SC-based seed capital fund will leverage hundreds of millions of dollars the legislature has already invested in programs including the endowed research chairs and the Life Sciences Act. The fund can also leverage the successful industrial recruiting done over decades by the SC Department of Commerce, to grow new companies around facilities of global corporations in the state. Having a SC-based seed capital fund is important to creating companies in cities like Charleston, Columbia, Greenville, and Spartanburg, but it is even more critical to creating high growth companies around anchors like Roche Carolina in Florence, the Savannah River National Lab in Aiken, Robert Bosch in Anderson, or Fuji Photo in Greenwood, where out-of-state venture funds rarely visit.

If a SC-based seed capital fund could have formed without incentives, it already would have. The SC Entrepreneurial Success Fund Act provides a 30% tax credit for investment in a SC-based seed fund that raises a minimum of $10 million, which is a high hurdle. Private investors will be at risk for 70% of the fund’s capital, so they will ensure that a strong fund manager is in place before committing their funds to be at risk.

The SC Entrepreneurial Success Fund Act is included in the legislative agenda of the SC and the Greenville Chambers of Commerce. The Greenville News also recently endorsed the Act.

Thank you for your support. Please let me know if you have other questions, or if there is anything I can do to support the committee’s consideration of this legislation.

Now before you hyperventilate thinking this is a school voucher, it’s not. It’s a tv voucher. That’s right, the Federal Government is providing vouchers for a HDTV receiver, since this new format will be the only format transmitted starting February 2009.  Is it just me or does it seem awfully strange that the Federal Government is offering vouchers for HD receivers?  This may sound Ron Paulish, but does TV really meet the constitutional role of the Federal Government ranking up there with national security and interstate commerce? As a matter of fact, I would argue that the old boob tube has caused more detriment to our society than anyone would admit.  Excessive television could be linked to our nation’s obesity, laziness and demand for instant gratification. Experts agree that excessive television is contributing to ADD and ADHD.  Click here if you want to apply for up to two HDTV reciever vouchers.

The South Carolina Department of Commerce has release an impressive report announcing more than 15,600 new jobs and $4 billion in new capital investment; more than any year in the past.  This is great news for the state and neighboring counties.  Unfortunately, Anderson County is not mentioned in this report.  We’ve got to work together to continue to work those “soil conditions” in Anderson so next year, the report will include us.

COLUMBIA, S.C. – January 14, 2008 – The South Carolina Department of Commerce today announced that 2007 was another record-breaking year for the recruitment of jobs and investment to South Carolina. The numbers point to strong economic activity, large job creation levels in non-urban areas, world-class companies choosing to invest heavily in South Carolina, growth in the state’s manufacturing sector, and a diversity of industry investments. In 2007, the Department of Commerce was involved in recruiting 15,666 jobs and $4.045 billion in capital investment to the state. On average in 2007, the state saw either a new company decide to locate in South Carolina or an existing business commit to expand operations in the state more than three times each week of the year.The Department of Commerce’s recruitment of 15,666 jobs in 2007 shattered the recruitment record set in 2006 – which was also a record-breaking year – by more than 1,300 jobs. In the past two years alone, the Department of Commerce has recruited more than 30,000 new jobs to the state. Additionally, the recruitment of $4.045 billion in capital investment for 2007 surpassed the 2006 records by more than $1 billion.Commerce Secretary Joe Taylor credited Gov. Mark Sanford’s efforts to enhance the state’s business climate for much of the success in 2007. To read the full article, click here

The Reagan 21 caucus is a spin-off of the William Wallace Caucus on the National Level. Conservatives from Congress contacted members of the WWC for advice on how to carry this banner of reform to the Washington level. Rep. John Campbell, California Republican said “…we’d like to commend Sen. Bryant and fellow backbenchers for the tough stands they continue to make on principles not politics…”

Capitol Hill Republicans are invoking former President Ronald Reagan in their latest effort to strengthen their party’s conservative credentials, forming a new caucus whose members must pledge to support limited government and to restore ethics in Washington.

“We don’t want to go back to what Reagan did,” said Sen. Jim DeMint, South Carolina Republican. “We want to take those principles he stood for and go forward, applying them to the challenges of today.”

Unlike most party groups, the Reagan21 caucus was formed by lawmakers themselves during months of private meetings over dinners and breakfasts, and without the assistance of congressional staff.

to read the full article at the Washington Post

editors note: The Reagan 21 did not contact the WWC, but I’d think we have a kindred spirit.

March 28, 2006 was a historic moment in SC history. The SC Senate passed my amendment to allow for capital punishment for child rapists receiving a 2nd conviction.  The bill passed and signed into law by Gov. Sanford. There is a court case involving a similar law in Louisiana being heard by the US Supreme Court. Click here to read the article.
The most popular questions asked during the debate:
1-Why are you asking for punishment this severe? When a child is raped something precious is taken from the child’s soul. The child may never recover, therefore, I believe this invasion of a child warrants capital punishment, especially since the bill calls for a 2nd conviction of child rape. This also sends a message across the world, that SC does not tolerate the molestations of our kids! Will this sentencing keep perverts out of SC? I certainly hope so.
2-Did capital sentancing jeopardize the rest of Jessica’s Law bill or our current capital punishment statutes? A “severability clause” was included in the amendment to prevent this from happening. Also, the language calls for a separate statute that may isolate this sentencing should we get a court challenge.