Legislative Updates: A Weekly Roundup of Federal, State, and Local Actions – February 26

Your Chamber advocacy team is working to share legislative updates and continue to advocate for your business in Washington, D.C., Harrisburg, and Philadelphia. We’ve created a round-up of recent activity including Key Takeaways for Your Business and a Detailed Legislative Update. This represents our best knowledge of the situation as of 9:00 a.m. on Friday, February 26, 2021.

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

To learn more about how our region is preparing for recovery, visit our Recharge & Recover PHL Information Hub:

• URGENT ACTION NEEDED: Next Tuesday, Councilmember Kendra Brooks will propose a bill to City Council that would dramatically extend and expand the City’s paid sick leave. The bill is unnecessary due to the federal government’s planned nationwide paid sick leave expansion and would harm city businesses already struggling to survive during the pandemic.
• The Chamber strongly urges its members to email City Council and ask that they hold the Brooks bill until the round of Federal relief is finalized. Contact information for City Council members can be found in the full report.
• Among the bills and resolutions introduced this week include an ordinance to transfer $1.3 million into the Office of Arts, Culture and the Creative Economy, the launch of the Philadelphia Anti-Violence Resource Network to guide those directly affected by violence to resources, and a resolution to explore the connection between poverty and gun violence.
• The Committee on Appropriations reported on an ordinance implementing Council’s “New Normal Jobs Initiative.”
• The Committee on Public Health and Human Services and the Committee on Children and Youth will each hold hearings in the coming week. Read the full report for more details.
• Confirmed COVID-19 cases in Philadelphia have exceeded 113,000 with over 3,090 deaths.
• Earlier this week, Mayor Kenney released Philadelphia’s Transit Plan, A Vision for 2045. The plan is the City’s roadmap for improving public transit, which connects residents to opportunity, supports the city’s economy, and is critical to fighting climate change.
• The Chamber will host a virtual event with Managing Director Tumar Alexander (Mar. 1). Read the full weekly update to learn more and register.

• This week, the state House Appropriations Committee heard from PennDOT regarding the agency’s current funding shortfall as well as it’s long-term funding concerns. Members also discussed PennDOT’s proposal to toll up to 9 bridges to provide funding for improvements and maintenance, which would generate an estimated $2.2 billion.
• Governor Wolf announced his “Back to Work PA” plan, which calls for investment in reskilling unemployed Pennsylvanians to new career opportunities, an expansion of apprenticeship programs, and increasing child care subsidies, among other items. The program would be funded by an extraction tax on the natural gas industry, a move opposed by Republican leadership.
• Legislation introduced to the state House this week seeks to modify the Sterling Act, which allows Philadelphia to impose a city wage tax on salaries and other compensation paid to employees commuting to a Philadelphia employer. The proposed amendment would require the City to reimburse surrounding taxing jurisdictions to support suburban police, fire, EMS, and schools.
• The Chamber will host a virtual event with PA Senate Majority Leader Kim Ward (Mar. 11). Read the full weekly update to learn more and register.

• The House Budget Committee shared a $1.9 trillion COVID-19 relief proposal, which is expected to be voted on by the House today, to then be sent to the Senate to review.
• Among many investments, the House relief package lifts the federal minimum wage to $15 per hour, a move at least two Democrats in the Senate have publicly expressed doubt that they could support. The Senate parliamentarian is expected to issue a ruling on the feasibility of a minimum wage increase this week.
• Sensing that the minimum wage may not pass in the Senate, Republicans announced plans to introduce an act that would gradually raise the federal minimum wage to $10 by 2025.
• Last week, Democrats introduced an immigration reform package that creates an 8-year pathway to citizenship, eliminates per-country caps on employment-based immigration, and streamlines process for STEM advanced degree holders from U.S. universities to stay. The measure is unlikely to attract the required Republican votes to proceed since the bill does not include stronger border security and interior enforcement.
• The Chamber and its CEO Council for Growth have called for sensible reforms to our immigration system which play a major role in maintaining the region’s economic competitiveness through a list of reforms. Read the full report for details.

Partnership to Build an Inclusive Recovery – Update

URGENT ACTION NEEDED – CONTACT PHILADELPHIA CITY COUNCIL

On Tuesday March 2, City Council’s Public Health is scheduled to hold a hearing on Bill 210122— a proposal by Council Member Kendra Brooks that would dramatically extend and expand the City’s paid sick leave law.  The bill, copied almost word-for-word from a bill introduced in Pittsburgh – a city a third of the size of Philadelphia, and located entirely in Allegheny County – is both unnecessary and would harm city businesses already struggling to survive during the pandemic.

The new Brooks proposal:

• Is unnecessary.  The federal government is currently moving toward approval of a nationwide paid sick leave expansion that includes tax credits to help businesses pay for the expanded benefit.
• Will dramatically increase the amount of paid time off businesses would have to offer.  As written, the Brooks proposal would tack on an additional 10 days of sick time to the number a business already provides, without any cost offset.
• Is simply inconsiderate of the well documented economic conditions affecting all businesses following the pandemic and resulting recession.

This isn’t a question of whether it’s important to protect people’s health – of course it is, which is why Philadelphia businesses have spent tens of millions of dollars to clean and sanitize their workplaces.

The Brooks bill would harm Philadelphia’s already struggling businesses.

Urgent Call to Action for Chamber Members

The Chamber urges its members to email City Council and ask that they hold the Brooks bill until the round of Federal relief is finalized. As the City is looking to recover and re-open businesses safely, now is not the time to advance legislation that makes it harder to bring employees back into the office.

Become a Council Connector

Council Connectors help advance our inclusive growth agenda through informal engagement with members of City Council. Such interaction would include meetings, phone calls or emails to members of Council to discuss our share priorities. These direct relationships with members of Council and other decision makers are critical to making progress on Philadelphia’s biggest challenges. To sign up to become a Council Connector please email Darrell Davis at ddavis@chamberphl.com.

Updates from City Council

Bill Introductions

• Councilmembers Isaiah Thomas introduced an ordinance to transfer $1.3 million from the city’s special New Normal Budget into the Office of Arts, Culture and the Creative Economy to be distributed as grants.
• Councilmember Cherelle Parker introduced a launching of the Philadelphia Anti-Violence Resource Network to provide a one-stop clearinghouse of information and guide Philadelphians directly affected by violence to available resources.
• Councilmember Derek Green introduced a resolution authorizing Council’s committee on Finance and Gun Violence Prevention to hold hearings to explore connection between poverty and gun violence.

Bill Reported from Committee

• Committee on Appropriations
  • Bill 210120– An Ordinance authorizing transfers in appropriations for Fiscal Year 2021 from the General Fund, the Council to the General Fund, certain or all City offices, departments, boards, and commissions, and thereby implementing Council’s “New Normal Jobs Initiative.”

Upcoming City Council Hearings

• Committee on Public Health and Human Services
  Tuesday, March 2, 2021 at 9:30 a.m.
  • Bill 210122 – An Ordinance amending Section 9 4116 of The Philadelphia Code, entitled “Public Health Emergency Leave,” to establish leave time for public health emergencies, and modify existing provisions concerning the paid sick leave.

• Committee on Children and Youth
  Wednesday, March 3, 2021 at 2:30 p.m.

• • Resolution 210034 – Resolution authorizing the Committee on Children and Youth to conduct hearings examining the relationship between the property tax exemption for wealthy nonprofits on the School District’s budget and the resulting environmental hazards in School District facilities on the health and safety of Philadelphia’s most vulnerable children.

View the status of pending bills and resolutions »

View upcoming confirmed City Council meeting dates and agendas »

COVID-19 Case Data

Yesterday, the Philadelphia Department of Public Health reported the total number of confirmed cases of COVID-19 in Philadelphia has reached 113,087. The number of residents who have succumbed to the virus in Philadelphia has reached 3,091. Of the total deaths, 1,144 (37%) were long-term care facility residents.

City Releases Philadelphia’s Transit Plan

Earlier this week, Mayor Jim Kenney announced Philadelphia’s Transit Plan, A Vision for 2045. The plan is the City’s roadmap for improving public transit, which connects residents to opportunity, supports the city’s economy, and is critical to fighting climate change.

To carry out the plan, the City will leverage on existing strengths, including Philadelphians widespread reliance on public transit, a legacy of investment, and a dense urban fabric that supports high transit usage.

Upcoming Local Advocacy Programs

• March 1 – [Virtual] City Hall Connectors: Managing Director Tumar Alexander » Sponsored by: Citizens

Questions? Contact William Carter (wcarter@chamberphl.com) for more information about local legislative affairs.

House Budget Hearing Addresses Transportation Funding Shortfall

On Tuesday, the state House Appropriations Committee heard from the Pennsylvania Department of Transportation regarding the agency’s current funding shortfall as well as its long-term funding concerns. In addition, members discussed PennDOT’s proposal to toll up to nine bridges throughout the state in order to provide funding for improvements and maintenance of those bridges, and mass transit funding. PennDOT Secretary Yassmin Gramian estimated that the tolling plan would generate as much as $2.2 billion. Many legislators expressed concern that tolling would have an adverse impact on the local economies and residents of the communities in which the bridges are located.

Pennsylvania’s transportation system is facing enormous funding challenges. In 2023, Act 89 funding transfers from the Pennsylvania Turnpike to help pay for mass transit will be reduced by $400 million annually, to $50 million.  The Secretary said the Wolf Administration is working on options to address the budget shortfalls, including additional borrowing and is hopeful that the federal government continues to support mass transit until things return to normal for public transportation.

According to PennDOT’s website, more tolling, increased taxes, and potentially charging Pennsylvania drivers a miles-driven fee are some options, with lawmakers also discussing the need to charge electric and hybrid vehicles an additional driving fee since hybrids use less gas, paying less gas taxes, and electric vehicles use no gas and pay no gas taxes.

Governor Wolf Unveils Workforce and Economic Development Plan

This week, Pennsylvania Governor Tom Wolf announced his “Back to Work PA” plan. The plan calls for investment in reskilling unemployed Pennsylvanians to new career opportunities, an expansion of apprenticeship programs to include non-traditional occupations like health care, child care, information technology, and manufacturing, and increasing child care subsidies, among other items.

The program would be funded by an extraction tax on the natural gas industry. The state’s Republican leadership is opposed to additional taxes on the gas industry on top of the state’s impact fee.

Discussions are underway within the General Assembly about providing additional stimulus dollars from Washington, D.C. for workforce development programs.

State House Introduces Sterling Act Reimbursement Tax Measure

Bucks County state House of Representative Republicans Frank Farry and Wendi Thomas introduced legislation this week to modify the Sterling Act. The Sterling Act, enacted in 1932 to assist Philadelphia following the depression, is Pennsylvania’s first local income tax which allows Philadelphia to impose a city wage tax on salaries, wages, commissions, and other compensation paid to employees commuting to a Philadelphia employer.  All Philadelphia residents owe the city wage tax regardless of where they work.  Non-residents who commute to work in Philadelphia must also pay the tax.  As of July 2020, the city raised this tax on commuters, but did not raise the cost for those who live in the City of Philadelphia. Philadelphia’s wage tax is the highest in the country.

The legislation would amend the Sterling Act to require Philadelphia to reimburse the surrounding taxing jurisdictions that impose an earned income tax at a rate equivalent to that which would have been collected from commuting workers of their respective boroughs and townships.

Reps. Farry and Thomas noted that many surrounding suburban areas are losing significant tax revenue to support their police, fire, EMS, and schools from their residents who work in Philadelphia.

Upcoming State Advocacy Program

• March 11 – [Virtual] State Advocacy Update with Senator Kim Ward »

Questions? Contact Liz Ferry (lferry@chamberphl.com) for more information about state legislative affairs.

Relief and Assistance Package Advances

The House Budget Committee assembled, marked up, and passed out of committee the provisions that were sent to it by nine separate committees. $1.9 trillion COVID-19 relief proposal, the American Rescue Plan, now goes to the House floor for a vote expected on Friday. The Senate would then have two weeks to consider the House-passed relief package before existing relief programs begin to expire in mid-March.

Among many investments in relief and assistance, the House relief package lifts the federal minimum wage to $15 per hour.  The Senate parliamentarian ruled Thursday evening that inclusion of the minimum wage hike through budget reconciliation would be out of order.  The budget reconciliation process requires that provisions must be related to the federal budget.  The parliamentarian ruling significantly diminishes the chances that Democrats will be able to lift the minimum wage to $15 per hour. Furthermore, at least two Democrats in the Senate had publicly expressed doubt that they could support the measure as part of the relief package, but the actual number of doubtful Democrats could be as many as ten.  House Democrats will likely keep plans to pass the minimum wage hike in the current version of the relief bill, which means that the Senate will have to strip out the provision in an attempt to send the relief package back to the House for final passage.

Sensing that minimum wage may not pass in the Senate – either through the budget reconciliation process or with a majority support – a pair of Republicans announced plans to introduce the Higher Wages for American Workers Act, legislation that would gradually raise the federal minimum wage to $10 by 2025 and then index the wage to inflation every two years. The proposal would also allow small businesses with fewer than 20 employees two extra years to meet the minimum and would mandate that all employers confirm the legal status of workers through the E-Verify system.

Immigration Reform Proposal Introduced

Last week, Democrats introduced the bicameral U.S. Citizenship Act of 2021, an immigration reform package proposed by the White House that creates an eight-year pathway to citizenship, eliminates per-country caps on employment-based immigration, and streamlines process for STEM advanced degree holders from U.S. universities to stay. There are no changes to caps or quotas to the H-1B visa program.

The immigration reform measure is unlikely to attract the required Republican votes needed to proceed in the Senate since the bill falls short of Republican demands for stronger border security and interior enforcement. Acknowledging these challenges to their comprehensive immigration reform, Democrats left open the possibility of separating immigration reforms and passing them through a piecemeal approach.

High-skilled immigration reform has won broad bipartisan support in the past as a way to address our nation’s ability to attract global talent to fuel our competitive strengths in innovation and technology.  Unfortunately, these important bipartisan reforms have been challenged to pass alongside of more contentious reforms like border security and pathway to citizenship.

For the better part of the last decade, the Chamber and its CEO Council for Growth, have called for sensible reforms to our immigration system which play a major role in maintaining the region’s economic competitiveness.  Attracting and retaining high-skilled immigrants and foreign-workers is vitally important for regional businesses that are heavily invested in knowledge-based professions.

As such, we look forward to working with our regional congressional delegation to advance the following reforms through a comprehensive package or through a piecemeal approach of separate reforms:

• Significantly increase the annual number of H-1B visas available to highly-skilled non-immigrant workers;
• Significantly increase the percentage of immigrant visas available for applicants with advanced degrees and exempt STEM graduates from U.S. universities from the annual visa cap if they have an offer of employment from a U.S. business in a related field;
• Eliminate country-specific caps for employment-based visas, which do not account for variations in population, advanced degree graduates, and other criteria that differs greatly between countries;
• Establish an entrepreneurial visa program which would provide foreign entrepreneurs with a multi-year visa if they can secure financing from a U.S. investor and can be renewed if certain job creation and revenue requirements are met. Forty-five percent of Fortune 500 companies were founded by immigrants or their children; and
• Streamline the immigration system to be more efficient and effective, including recapturing used visas from previous years and requiring interagency coordination to reduce waiting times for application approvals.

Questions? Contact Anselm Sauter (asauter@chamberphl.com) for more information about federal legislative affairs.

The constantly changing nature of this public health crisis requires continued engagement with public policy developments. We invite you to reach out to our advocacy team directly with your questions: 

• Anselm Sauter, Federal Affairs – asauter@chamberphl.com 
• Liz Ferry, State Affairs – lferry@chamberphl.com 
• William Carter, Local Affairs – wcarter@chamberphl.com 

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

To learn more about how our region is preparing for recovery, visit our Recharge & Recover PHL Information Hub: