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, April 30, 2021.

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

Visit the Recharge & Recover PHL Information Hub

KEY TAKEAWAYS FOR YOUR BUSINESS

Local

  • Even though there are an estimated 80,000 fewer people working in Philadelphia today than there were at the beginning of 2020, some Councilmembers continue to fight against making investments to jump start job creation.
  • With $1.4 billion due to the City in federal stimulus funds, there is an opportunity to focus on a budget that supports people in need as well as make critical investments in the city’s future.
  • Investments could include reducing the root causes of inequity while promoting inclusive job and business growth at the same time; retraining people for jobs of today, as well as ensuring they have jobs to go to thereafter; or bolstering local, Black, and brown businesses while also ensuring they have a growing base of consumers.
  • The federal stimulus funding runs out in two years. Philadelphia’s tax revenues will be down significantly as people continue to work from home. The time is now to focus on a plan that meets current needs, as well as future job creation that increases equity and opportunity in every community.
  • Among the bills and resolutions introduced in Council include a request for an order from the First Judicial Court of Philadelphia to temporarily stay mortgage and tax foreclosure sales, as well as a bill revising certain licensing requirements for contractors and a bill creating an excavation license for contractors.
  • Among the bills Council voted to pass include a bill providing protections for persons affected by coercive control, including in the context of employment discrimination and more; a bill permitting restaurants to have outdoor entertainment; and an ordinance calling upon the Pennsylvania General Assembly and the Governor to pass legislation that will decriminalize, regulate, and tax the use and sale of cannabis for non-medical purposes.
  • Council amended part of The Philadelphia Code by adding required conditions and information for reporting adjustments to taxable income.
  • The Committee of the Whole will meet multiple times next week for budget hearings. The Committee on Global Opportunities & Creative/Innovative Economy will meet to discuss holding public hearings on plans, procedures, and global best practices for restarting the economy in the wake of COVID-19.
  • Confirmed COVID-19 cases in Philadelphia have exceeded 138,000 with 3,462 deaths.
  • The Health Department announced a series of relaxations to the City’s Safer-at-Home restrictions, beginning May 7. Included in the changes are an increase in indoor dining capacity to 75% if restaurants meet enhanced ventilation standards and allowing indoor catered social events up to 25% of normal capacity, among others.
  • The Chamber will host virtual events with the City’s Director of Finance (May 12) and the Department of Human Services (May 24). Read the full weekly update below to learn more and register.

State

  • This week, the Pennsylvania Senate passed legislation to make changes to the state’s current Public-Private Transportation Partnership (P3) to stop PennDOT’s major bridge P3 initiative to toll as many as nine bridges throughout the state. According to PennDOT, the tolling proposal would generate $1.8 billion. The bill now heads to the state House of Representatives for consideration.
  • The Pennsylvania Senate voted 43-4 in favor of a proposed constitutional amendment to allow gubernatorial candidates to select their own running mate. The same amendment was approved last session by the General Assembly. Approval by both chambers during this two-year legislative session will place the proposed change on the ballot for PA voters.
  • The Pennsylvania State System of Higher Education board of governors voted on Wednesday to merge six of its 14 universities into two entities, saving an estimated $18.4 million after five years. The vote begins a 60-day public comment period.

Federal

  • In his joint address to Congress this week, President Joe Biden unveiled the second half of his economic recovery plan. The American Families Plan is a $1.8 trillion investment in education, child care, and paid family leave. The President’s plan calls for tax reforms focused on the high-income earners to generate revenue amounting to an estimated $1.5 trillion over 10 years.
  • The American Families Plan is the second of two components of the President’s economic recovery plan, with the first being the “American Jobs Plan,” a proposed eight-year, $2.2 trillion investment in transportation, water systems, broadband, supply chain issues, housing, school, and renewable and clean energy infrastructure. The proposed plan calls for an increase in corporate tax rate from 21 percent to 28 percent.
  • Republicans have argued the American Jobs Plan is too broad and too expensive. Instead, they released a proposal last week as a counteroffer to the President’s plan that’s roughly one-quarter of the amount, amounting to a $568 billion investment in a narrower set of infrastructure areas.
  • The deadline for Members of Congress to submit their respective earmark requests to the House Transportation Committee passed this week. Local and State governments and nonprofit project sponsors were eligible to submit earmark requests which are estimated to be capped at approximately $15-$20 million per House office. View the full report for more details on House Members requests.
  • Following the announcement of apportionment figures by the U.S. Census Bureau this week, Pennsylvania will lose a congressional seat and electoral vote due to lagging population growth. This will also reduce Pennsylvania’s share of federal funding.
  • The American Rescue Plan established the Restaurant Revitalization Fund (RRF), providing restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. View the full report for more details.

DETAILED LEGISLATIVE UPDATE

Local: Updates from Philadelphia’s City Hall

Partnership to Build an Inclusive Recovery Update

With $1.4 billion in federal stimulus funds, the choice isn’t “either-or”, but “as well as.”

We all understand politics and the political mindset that the best way to be “for” something is to be “against” another thing. That’s why we were not surprised that some voices on City Council are trying create an “either-or” narrative around the investments in new job growth the Mayor proposed in his budget. The Mayor’s budget includes a resumption of cuts to the city’s BIRT and wage taxes as part of an overall plan to rebuild the local economy following COVID-19.

Even though there are an estimated 80,000 fewer people working in Philadelphia today than there were at the beginning of 2020, some continue to fight against making investments to jump start job creation.

But with $1.4 billion due to the City as part of the American Rescue Plan (ARP), there is an opportunity for Philadelphia to move on from an “either-or” choice to focus on a budget that supports people in need “as well as” make critical investments in the city’s future.

  • Philadelphia can invest in reducing the root causes of inequity, as well as promote inclusive job and business growth going forward.
  • Philadelphia can retrain people for the jobs of today, as well as ensure they have jobs to go to thereafter.
  • Philadelphia can bolster local, Black, and brown businesses, including those on our commercial corridors, as well as ensure they have a growing base of businesses and consumers with whom to do business.

The federal stimulus funding runs out in two years. Philadelphia’s tax revenues will be down significantly as people continue to work from home. The time is now to focus on a plan that meets current needs, as well as future job creation that increases equity and opportunity in every community.

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 shared 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

Bills and resolutions introduced: 

  • Councilmember Cherelle Parker introduced a resolution calling on the Sherriff’s Office to request an order from the First Judicial Court of Philadelphia to temporarily stay mortgage and tax foreclosure sales.
  • Councilmember Bobby Henon introduced a bill revising certain licensing requirements for contractors. Councilmember Henon also introduced a bill to create an excavation license for contractors.

Council voted to pass the following bills:

  • Bill 210159 (Gilmore Richardson) – Amending Title 14 of The Philadelphia Code, entitled “Zoning and Planning,” to revise certain provisions of Chapter 14-600, entitled “Use Regulations,” by amending the Retail Sales Use Category and Use-Specific Standards.
  • Bill 210249 (Brooks) – Amending various chapters of the Philadelphia Code to amend the definitions of certain terms, and provide protections for persons affected by coercive control, including in the context of employment discrimination, employment leave, and housing protections.
  • Bill 210135 – A – Amending Chapter 9-208 of The Philadelphia Code, entitled “Sidewalk Cafes” and Title 4, Subcode “A” of The Philadelphia Code, entitled “Zoning and Use Registration Permits,” by adding new provisions allowing restaurants applying for a sidewalk cafe permit or temporary lot uses permit to allow outdoor entertainment.
  • Bill 210206 (Green) – An Ordinance providing for the submission to the qualified electors of the City of Philadelphia of an amendment to Article VIII, Chapter 5 of The Philadelphia Home Rule Charter, entitled “Referenda Approved by the Voters,” by adding a new section providing that the citizens of Philadelphia call upon the Pennsylvania General Assembly and the Governor to pass legislation that will decriminalize, regulate, and tax the use, and sale to adults aged 21 years or older, of cannabis for non-medical purposes.

Council amended the following bill:

  • Bill 210139 – Amending Chapter 19-500 of The Philadelphia Code, entitled “Taxes and Rents – General,” by adding required conditions and information for reporting adjustments to taxable income.

Upcoming City Council Hearings

  • Committee of the Whole
    Monday, May 3, 2021 at 9:30 a.m.
    Budget Hearing for Five Year Plan, Capital Program, Mayor’s Office, Aviation and Water
  • Committee of the Whole
    Tuesday, May 4, 2021 at 9:30 a.m.
    Budget Hearing for Finance, Commerce and City Commissioners
  • Committee of the Whole
    Wednesday, May 5, 2021 at 9:30 a.m.
    Health & Human Services and Office of Children & Families
  • Committee on Global Opportunities & Creative/Innovative Economy
    Friday, May 7, 2021 at 9:00 a.m.
    Resolution 200339– Resolution authorizing the Committee on Global Opportunities and the Creative/Innovative Economy to hold public hearings on plans, procedures, and global best practices for restarting the economy in the wake of the novel coronavirus pandemic.

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 138,332. The number of residents who have succumbed to the virus in Philadelphia has reached 3,462. Of the total deaths, 1,195 (35%) were long-term care facility residents.

City to Relax Some Safer-at-Home Restrictions Starting May 7

In response to the number of new COVID-19 cases beginning to fall in Philadelphia and the region, the Health Department announced a series of changes to the City’s Safer-at-Home restrictions. Beginning Friday, May 7, 2021, the following changes will go into effect, bringing Philadelphia into closer alignment with Pennsylvania:

  • For indoor dining
    • Capacity will be increased from 25%, or 50% if restaurants meet enhanced ventilation standards, to 50%, or 75% if restaurants meet enhanced ventilation standards.
    • Maximum table size will be increased from four to six, and there is no longer a requirement that everyone at the table be from the same household.
  • For outdoor dining
    • Maximum table size will be increased to 10, which is the state limit.
  • For indoor catered events
    • Important to remember that events like indoor weddings are the highest risk.
    • For the first time in more than a year, the City will allow indoor catered social events up to 25% occupancy of space with a cap of 75 persons total.
    • If case rates continue to fall, the City may increase that cap to 150 beginning May 21.
  • Other gatherings and events
    • Indoor gatherings and events will be able to increase their maximum capacity to 25% of normal capacity and outdoor gatherings and events will be able to increase maximum capacity to 50%.

In all of these situations, the Health Commissioner made a strong recommendation that anyone participating in these higher-risk and higher-density events should be vaccinated first.

Upcoming Local Advocacy Programs

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

State: Updates from Harrisburg

P3 Bridge Tolling Plan Faces Opposition

This week, the Pennsylvania Senate passed legislation (SB 382) to make changes to the state’s current Public-Private Transportation Partnership (P3) statute to stop the state Department of Transportation’s major bridge P3 initiative to possibly toll as many as nine bridges throughout the state.

According to PennDOT, the tolling proposal would generate up to $1.8 billion to be used for fixing or replacing bridges.

SB 382 would also require that an analysis be conducted on any proposed project include, type of service to be improved by the project, the estimated length and cost of the project, the social, economic, and environmental impact of the project, and the amount and type of potential users fees should the project require a P3 agreement.

The bill now heads to the state House of Representatives for consideration.

Selecting Lt. Governors

The Senate voted 43-4 in favor of a proposed constitutional amendment to allow gubernatorial candidates to select their own running mate. The candidates for governor and lieutenant governor would run as a team.

The same constitutional amendment language was approved last session by both chambers of the General Assembly. Approval by both chambers during the current two-year legislative session will place the proposed change on the ballot for the voters of Pennsylvania to decide.

PASSHE Votes to Merge Universities

The Pennsylvania State System of Higher Education board of governors voted on Wednesday to merge six of its 14 universities into two entities. The board estimates the mergers will save $18.4 million after five years. The savings would come through leadership, management, and support staff reductions phased in over time.

The vote begins a 60-day public comment period, with a final vote scheduled for July and implementation in the fall 2022.

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

Federal: Updates from Washington D.C.

American Families Plan Released

In his joint address to Congress this week, President Joe Biden unveiled the second half of his economic recovery plan. The American Families Plan is a $1.8 trillion investment in education, child care, and paid family leave, including:

  • Two years of free community college to all Americans, including DREAMers;
  • Two years of subsidized tuition and expanded programs in high-demand fields at HBCUs, TCUs, and MSIs;
  • Universal preschool for all 3- and 4-year-olds through a national partnership with states.
  • Increasing the minimum wage to $15 per hour for child care workers and universal pre-K teachers;
  • An additional $1,400 in assistance to low-income students through an expanded Pell Grant award.
  • Creating a national paid family and medical leave program, which provide workers with 12 weeks of paid family and medical leave at least two-thirds pay, capped at $4,000 a month.
  • Requiring employers to allow workers to accrue seven days paid sick leave per year to seek preventative care for them or their family;
  • Creating automatic triggers to adjust the length and amount of unemployment insurance benefits that unemployed workers receive depending on economic conditions;
  • Double scholarships for aspiring teachers earning their degree to $8,000 per year;
  • Extending or make permanent recent relief programs, including:
    • Preserving the enhanced fully refundable child tax credit for another four years.
    • Extending the expanded ACA premiums tax credits; and
    • Making the Earned Income Tax Credit Expansion for childless workers permanent.

The President’s plan calls for tax reforms focused on the high-income earners to generate revenue amounting to an estimated $1.5 trillion over 10 years, including:

  • Increasing the top individual tax rate to 39.6 percent, up from the existing 37 percent;
  • Increasing the capital gains tax to 39.6 percent on households making over $1 million of income, equalizing the rate paid on investment returns and wages.
  • Taxing unrealized capital gains passed on to heirs. The reform will be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business.
  • Ending breaks for hedge fund partners and real estate investors
  • Boost funding and enforcement at the IRS

The American Families Plan is the second of two components of the President’s economic recovery plan. Earlier this year, the President released his “American Jobs Plan,” a proposed eight-year, $2.2 trillion investment in transportation, water systems, broadband, supply chain issues, housing, school, and renewable and clean energy infrastructure. The proposed plan calls for an increase in corporate tax rate from 21 percent to 28 percent.

Republicans have argued the American Jobs Plan is too broad and too expensive. Instead, they released a proposal last week as a counteroffer to the President’s plan. It’s roughly one-quarter of the amount of the President’s plan amounting to a $568 billion investment in a narrower set of infrastructure areas, including:

  • $299 billion for roads and bridges;
  • $61 billion for transit;
  • $20 billion for rail;
  • $44 billion for airports;
  • $7 billion for ports;
  • $13 billion for safety agencies;
  • $65 billion for broadband; and
  • $49 billion for water infrastructure and storage.

Surface Transportation Earmarks

The deadline for Members of Congress to submit their respective earmark requests to the House Transportation Committee passed this week. Local and State governments and nonprofit project sponsors were eligible to submit earmark requests which are estimated to be capped at approximately $15-$20million per House office. House Members are now posting their requests including:

The earmark process is expected to begin soon in the Senate. The surface transportation bill is a policy and spending authorization package that must be reauthorized by September 30. If not passed before October, a continuing resolution or stopgap authorization is likely.

Pennsylvania Loses a Congressional Seat

As required by law, the population of each state is counted every 10 years to ensure that the number of representatives serving is proportional to the state’s population. According to the apportionment figures released by the U.S. Census Bureau this week, Pennsylvania will lose a congressional seat and electoral vote due to lagging population growth relative to other states. This will also mean that Pennsylvania will see its share of federal funding reduced to match. The apportionment figures continue a decades-long shift of political power away from northeast and Midwest states to southern and western states. Texas, Colorado, Florida, Montana, North Carolina and Oregon are all expected to gain at least one House seat.  New Jersey and Delaware’s seats will remain in place.

SBA’s Announces Upcoming Restaurant Revitalization Fund Launch

The American Rescue Plan established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

The program will begin registration on Friday, April 30, 2021 and will open applications on Monday, May 3, 2021.

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

WE’RE HERE FOR YOU, YOUR TEAM, AND YOUR BUSINESS

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: 

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

Visit the Recharge & Recover PHL Information Hub