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870000 State of the States

Date: 1987
Length: 77 pages
80420370-80420446
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Type
REPT, OTHER REPORT
Alias
80420370/80420446
Site
G65
Area
SPEARS/OFFICE
Characteristic
OVER, OVER SIZE DOCUMENT
Litigation
Okag/Produced
Date Loaded
28 Apr 1999
Named Organization
Amer Cigar
Asheville City Council
Assn or Industries
Bismarck Chamber of Co
Blue Cross Blue Shiel
Cgi
Cincinnati Health Boa
Citicorp
Citizens Against Tobac
Citizens for Courtesy
Consolidated Cigar
Covington Burling
First Bank
Flue Cured Tobacco Coo
Fraternal Order Police
Friends of Tobacco
Garber Brothers
General Cigar
Howard Rubenstein Ass
Intl Brotherhood Fire
Leaf Tobacco Exporters
Los Alamos County Cou
Middleton Tobacco
NC Citizens for Busine
NC Dept of Agriculture
NC Farm Bureau
NC General Assembly
NC Grange
NC House
NC Senate
NC Tobacco Growers Ass
NC Trial Lawyers Assn
Nd House
Nd Lung Assn
Nd Senate
Nd Wholesale Grocers A
Nj Assembly
Nj Comm on Smoking or
Nj Gasp
Nj Health Dept
Nj Public Affairs Divi
Nm Assn of Tobacco +
Nm Hotel Motel Assn
Nm House
Nm Human Services Dep
Nm Municipal League
Nm Restaurant Assn
Nm Retail Merchants A
Nm Senate
Nonpartisan League
Norwest
Ny Assembly
Ny City Council
Ny Dept of Health
Ny Dept Tax + Finance
Ny Legislature
Ny Public Health Coun
Ny Senate
Oh House
Oh Senate
Ok Assn of Tobacco Di
Ok House
Ok Retail Tobacco Dea
Ok Senate
Ok State Legislature
or Lung Assn
or Restaurants + Beve
Pa Assembly
Pa Consensus Conferenc
Pa Fire Chiefs Assn
Pa House
Pa House Appropriaions
Pa House Health + Welf
Pa Interagecy Council
Pa Restaurant Assn
Pa Senate
Pa Tavern Assn
Pa Volunteer Firefight
Pee Dee Tobacco Wareh
Providence Journal
Rand
Restaurants of or Ass
Ri Assembly
Ri Coalition on Smokin
Ri Dept of Public Heal
Ri Housing Mortgage +
Ri Senate
Sandia Labs
Savarese Associates
SC Agricultural Commod
SC Bankers Assn
SC Budget + Control Bo
SC Chamber of Commerc
SC Commission on Alch
SC Dept Health + Envi
SC Dept of Agricultur
SC Farm Bureau
SC Heart Assn
SC House
SC Lung Assn
SC Restaurant Assn
SC Tobacco Warehouse
Southwest Bell
Teamsters
TI Labor Management Co
Tn House
Tn House Commerce Com
Tn Press Assn
Tn Restaurant Assn
Tn Retail Grocers Assn
Tn Senate
Tn Wholesale Grocers A
Tobacco Associates
Tobacco Associates US
Tobacco Growers Inform
Tx Assn of Business
Tx Assn of Tobacco + C
Tx Bowling Proprietors
Tx Cancer Council
Tx Gas + Pipeline
Tx Hotel Motel Assn
Tx House
Tx Merchandise Vendors
Tx Restaurant Assn
Tx Retail Grocers Assn
Tx Senate
US Tobacco
Ut House
Ut Restaurant Assn
Ut Retailers Assn
Ut Senate
Ut Taxpayers Assn
Wall Street Journal
Women Involved in Far
Wv Lung Assn
Named Person
Cheney, R.
Kruger, T.
Lancaster
Neubauer, J.
Sullivan, M.
Master ID
80420206/0485

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Page 54: vae00e00
C SOUTH CAROLINA c PREFACE South Carolina has a population of 3.1 million. The state relies heavily on the manufacturing industry and, to a lesser degree, agriculture and aquaculture. The state's employment in manufacturing is close to 30 percent, second highest in the United States. For this reason, the General Assembly is business oriented with a conservative bent. South Carolina's market share is 1.5 percent. STATE OVERVIEW Economic Condition and Outlook If the unemployment rate is an indicator of a state's economic health, then South Carolina is in fair shape with a 5.4 percent rate -- a rate lower than 29 of the 50 states. However, unemployment rates do not necessarily indicate fiscal problems. Spending has risen faster than revenue increases causing a$60 million shortfall for fiscal 1986-87. When other economic indicators for South Carolina are taken into " consideration, it appears that the state legislature should not be under pressure to raise taxes in the near future. A new Republican governor has pledged and repledged not to increase taxes. On November 5, the State Budget and Control Board proposed and sent to the General Assembly a $3 billion budget for fiscal year 1986-87. This represents a $181 million increase over the current budget. Part of this increase - $27 million - will go toward pay increases for state employees. In addition, the budget board endorsed an Education Improvement Act Budget of $243 million, up $17 million over 1985. This is to be funded by a one-cent increase in the sales tax passed in 1986. There should be little need to consider raising other taxes during the 1987 legislative session. . Political Situation South Carolina voters elected their second Republican Governor since Reconstruction, meanwhile, changes in top leadership in the state House of Representatives for the next session are expected. The South Carolina legislature is overwhelmingly Democratic with only 22 Republicans out of 124 members in the House and 6 out of 46 members in the Senate.
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South Carolina, page 2 Traditionally, Republicans come from the more populous areas of the state such as Charleston, Columbia┬Ľ, Greenville and Spartanburg. As a whole,.the legislature could be considered conservative to moderate in political philosophy. Significant State Problems A major problem was addressed with the passage of the Education Improvement Act of 1984 as South Carolina took a step forward in improving its low-ranking public education program as well as its future economic growth. A study by the Rand Corporation of the educational plans of all states ranked South Carolina as the most comprehensive. South Carolina is a much poorer state than is commonly recognized.. Residents are taxed at a high level compared to their ability to pay. In terms of per capita personal income, South Carolina is one of the poorest states in the country. Most of the recent economic and industrial growth in the state has been concentrated in 20 counties, leaving the remaining, mostly rural, 26 counties in bad economic health. Other issues to be addressed will be disposal of hazardous waste, more effective law enforcement, the cost of state government, repeal of the so-called "Blue Laws" which prohibit Sunday operation of retail stores, and enabling legislation for the consolidation of political subdivisions. . - RESOURCES: STRENGTHS AND WEAKNESSES Tobacco Segments A major tobacco-producing state, South Carolina has a strong coalition of agriculture-related organizations which have maintained an active role in opposing smoking restriction and tax increase legislation. The South Carolina Agricultural Commodity Commission for Tobacco, headed by State Senator Tom Smith, and the South Carolina Farm Bureau Federation have been our strongest allies in legislative battles at the state, local and federal levels. They are a source for strong grass roots involvement, with members in every county in the state. Another important source of legislative support comes from Commissioner of Agriculture Les Tindal who has opposed cigarette tax increase efforts and public smoking restriction legislation. Other agricultural-related organizations which have played a role in defending the industry are the South Carolina Tobacco Warehouse Association, Pee Dee Tobacco Warehouse Association and Women Involved in Farm Economics, (WIFE). 11 ( e
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South Carolina, page 3 ( C Member company sales representatives have assisted in legislative contacts mainly in the more populous areas such as Columbia, Charleston, Greenville and Spartanburg. There is no wholesale distributor association in the state. While the tobacco-producing area is geographically large, the population, and as a result, the number of legislators representing the area, is small compared to the remainder of the state. In any event, the legislature can be looked upon as a resource for strong tobacco allies. In the House, there are 25 members representing tobacco producing areas and in the Senate, 10 members. Business The South Carolina Restaurant Association has been the most outspoken ally in opposing smoking restriction legislation affecting restaurants. However, as soon as restaurants are dropped from such legislation, the group disappears. Other business-related associations which sometimes can be relied on for assistance are the South Carolina Bankers Association and the Chamber of Commerce. In the past, the business community has taken a-backseat to farm groups in opposing anti-tobacco legislation. Farmers tend to get the "sympathy vote" because of the hard times they have experienced in recent years. Labor Labor has very limited impact in South Carolina. Fire Groups These groups have very limited impact in South Carolina. Institute Resources T: I. economic impact studies on tobacco have been the major issue-related resource requested and used by tobacco area legislators in their efforts to debate anti-tobacco legislation. The Farm Bureau and the Department of;Agriculture rely heavily on T. I. for this type of support material as well. Also playing an important part in our efforts are T. I. campaign _contributions and financial support for agriculture-related functions, such as the annual Salute to Agriculture and Aquaculture attended by most legislators. '
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South Carolina, page 4 ANTI-TOBACCO FORCES Voluntary health groups including the South Carolina Lung Association, South Carolina Heart Association and the American Cancer Society are starting to take a more active role in efforts to restrict smoking in public places. As a result of their combined efforts, legislation was introduced in both the House and Senate to restrict public smoking. In addition, an ordinance patterned after the state bills has been passed by the Richland County Council. Another factor in the upsurge of this activity is the new South Carolina Lung Association executive director, who came from the West Virginia Lung Association and was actively involved there in attempting to pass the West Virginia Clean Indoor Air Act. Also supporting passage of anti-smoking bills: Blue-Cross and Blue Shield, as well as two state agencies, the South Carolina Commission on Alcohol and Drug Abuse and the Department of Health and Environmental Control. The latter agency has- banned smoking in all its offices across the state. Representatives from each of the above-mentioned groups testified in support of public smoking legislation at hearings held by a Senate subcommittee and by the Richland County Council. The danger from these groups is not their legislative influence, which is lacking, but the publicity they have generated on the public smoking issue. TOBACCO INDUSTRY Brief History of Successes and Problems The last successful attempt to raise the cigarette tax was in 1977 when the legislature passed a one-cent increase to seven-cents per pack. The extra penny was to fund agriculture research in the state and was supported by former Commissioner of m Agriculture Bryan Patrick. ~O In recent years there have been several attempts in the House, through amendments to appropriations bills, to raise the tax, but ,~ none has passed. lV 0~ C C A public smoking bill was reported by Senate Committee in 1986, but died on the Senate contested calendar. This was one of several restriction defeats since 1977.
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C South Carolina, page 5 Major Issues - State and Local In 1987, cigarette tax increases will not be a major concern in the legislature, but public smoking restriction bills will be. With the passage of the Richland County public smoking ordinance, we can expect similar activity in Charleston, Greenville, Spartanburg and Columbia. Outlook With respect to state bills to restrict smoking or increase the cigarette tax, the prognosis is excellent for the industry. Local issues, however, could become a growing concern. December 1986 ( C

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