By Matthew French
Staff Writer

When State Rep. Robert “Bobby” Harrell, R-Charleston, was elected Speaker of the House for the next legislative session, it marked the end of a 90-year stranglehold on the seat which has been traditionally held by attorneys.

Harrell is the first non-attorney to be elected to the House of Representatives’ highest post since 1915, which could translate into a more business-centric agenda in the future.

Harrell, previously chairman of the Ways and Means Committee, owns a State Farm Insurance franchise and the Oak Haven assisted living facility in West Ashley, making him the first businessman to hold the position of Speaker of the House since William Alfred Hoyt.

“If you look back at the history of South Carolina speakers, you have David Wilkins, Bob Shaheen, Raymond Schwartz, Rex Carter and Sol Blatt,” says Rep. Chip Limehouse, R-Charleston, and Harrell’s desk-mate for the past few years. “All of them are attorneys going back at least to the 1930s.”

Harrell also is only the second Republican to serve as speaker in the past 130 years. Wilkins was the first Republican elected as speaker since 1876.

“I am profoundly grateful to the members of the House for this great honor,” Harrell says. “I thank my speaker, David Wilkins, for his steadfast leadership through the years, for being both my mentor and friend.”

Harrell, 49, took over as speaker on June 21 when Wilkins’ resignation went into effect. Wilkins has been tapped by President Bush to be the new U.S. ambassador to Canada. State representatives James Harrison, R-Columbia, and W. Douglas Smith, R-Spartanburg, both attorneys, were also in the running for the speaker’s position but withdrew before a vote was taken. Rep. Harry Cato, R-Travelers Rest, who is a businessman, was also in the running, but he, too, withdrew.

Harrell, elected to the House in 1993, had served as chairman of the House Ways and Means Committee and as majority leader from 1997-99.

Limehouse says he expects the next legislative session will have a slightly different feel to it, given that a lawyer no longer holds the top House position.

“That’s not to say David Wilkins wasn’t pro business, because he was,” says Limehouse. “But at the end of the day, David Wilkins is an attorney, and Bobby Harrell is a businessman. I think because of that we’ll see a slight change in the way things are run.”

“As a small businessman, Bobby understands what it means to have to make payroll every week,” says Limehouse, himself a businessman in real estate. “I think we’re going to see a business-friendly agenda in the House in the new session. His emphasis as speaker will be on driving business in South Carolina and bringing business to South Carolina. He’s been there, and he’s done it, and businesses will find a sympathetic ear from the Speaker.”

Says Harrell: “Legislation passed in 2005 will move South Carolina’s economy forward. Sparking economic development is a major focus of South Carolina lawmakers. With a strong focus on pro-business legislation, we are creating an environment where businesses can grow and create quality jobs in our state.”

Harrell has long portrayed himself as a business-friendly representative who looks out for small businesses. During this past legislative session that ended in early June, Harrell was the primary sponsor of many bills aimed at easing regulations on small businesses. The Jobs Creation Act, which allows a company to receive tax credits for creating new positions, is one of which he says he is particularly proud.

Prior to the passage of the bill, a company with fewer than 100 employees had to create 10 new positions per year to take advantage of the credits, which range from $1,000 to $8,500. The General Assembly lowered that threshold to two positions, allowing thousands of businesses to cash in.

Harrell also sponsored a bill that would establish a capital access program to give flexibility to financial institutions to make loans to small businesses that fail to qualify for conventional or other guaranteed or assisted financing. The bill died in the Senate Judiciary Committee, where it sat when the legislative calendar expired and never received a vote.

“In general, Bobby is the driving force behind myriad bills that are aimed at promoting business in South Carolina,” says Limehouse. “As a small businessman, he understands exactly what small businesses mean to this state. The majority of jobs created in South Carolina are done so by small businesses, and Bobby has not lost sight of that.”

Harrell’s other major focus has been on education. He led the charge for the Educational Accountability Act in 1998, which was an early stab at education reform requiring each school and student in the state to achieve prescribed performance levels.

“He’s a product of the public education system, so he knows how important it is to improve the state’s schools,” Limehouse says.

Representatives from the South Carolina Chamber of Commerce say they don’t expect to see a noticeable change in the way the house is run but are nonetheless gratified to see a businessman at the helm.

“Over the 30 years that I’ve been here, the speakers have been pretty well attuned to what makes the economy of South Carolina go,” says Otis Rawl, vice president of public policy for the chamber. “You can’t really separate the business from the legal because they’re so intertwined. I think that Bobby will be very willing to listen to the business side and continue with the process we’ve had in the past.”

Rawl says that, despite Harrell’s business history, he will have to balance multiple roles as the head of the House of Representatives.

“The House of Representatives is diversified enough that all interests—business, legal and social—will be represented,” Rawl says. “Bobby’s got to be fair and impartial and balance all of those elements out.”

Matthew French covers governmental policy and legislation for the Business Journal. E-mail him at mfrench@crbj.com.

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